Let's try to understand the difference so that you can make the right decision from the start.
Joint Tenancy
This is the most common arrangement for residential properties, especially HDBs.
There is no distinct shares to the property, so all owners jointly owned the property. Any decisions with regards to the property requires all owners to make decision jointly.
Pros
1. Rights of survivorship - a right granted to joint property owner(s) that in the event of death for one of the owners, it will transfer the stake to the remaining owner(s).
2. Avoidance of Probate - a right to prevent property as part of a Will when one passes on.
Cons
1. Unable to Will the property.
2. Difficult to decouple. For HDB, from 1st April 2016, decoupling will only be allowed under specific situations which include marriage, divorce, death of an owner, financial hardship, loss of citizenship, and medical grounds.
Tenancy-in-Common
Distinct shares owned by owner(s). May be in equal or different percentage of total property.
Pros
1. Easier to decouple - allowing other owner to purchase another property with a lower property count
2. Able to distribute your share of the property according to your Will.
3. Do not need other owner(s) consent when selling your Shares of the property.
Cons
1. Upon death, other owner(s) does not automatically get the deceased's share of property.
2. Unable to control new co-owner coming onboard.
So... Which type should you choose?
If your intend is to stay in this forever house and does not want your spouse to worry about not having a roof over his/her head, a simpler choice would be Joint Tenancy.
For investors, it would be more suitable to choose Tenancy-in-Common, since distinct share of property is determined, protecting your interest from the beginning.
Still unable to make a decision? Feel free to speak to me for a no obligation discussion today.
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