What are downsides of tenants in common in New Zealand includes several disadvantages compared to joint tenancy for co ownership. Tenants in common in New Zealand, which is form of property co ownership where two or more owners own distinct shares of property that can be unequal, for example 60 percent and 40 percent, with each owner able to sell or will their share separately, governed by Property Law Act 2007 and Land Transfer Act 2017, has downsides including no automatic right of survivorship, meaning if one tenant in common dies, their share does not automatically pass to other owners but passes via their will or estate, which can lead to co ownership with deceased's family members who may want to sell, causing forced sale, and potential for disputes between co owners over sale, maintenance, and use, with one co owner able to force sale via court application for partition and sale under Property Law Act, leading to legal costs, and financing difficulties with banks sometimes reluctant to lend to tenants in common with unequal shares, especially for unrelated co owners, and relationship property complications with separation requiring valuation and sale, and tax and legal complexity with each owner responsible for own share of rates and mortgage, and lack of simplicity compared to joint tenancy where equal shares and survivorship provide simplicity for couples. So downsides of tenants in common in NZ include no automatic survivorship leading to inheritance to third parties, potential disputes and forced sale via court, financing difficulties, and complexity with unequal shares and separate wills, making joint tenancy often preferred for couples.
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