When buying a property in Singapore, most buyers focus on loan amounts, interest rates, and repayment plans. However, one key legal and financial decision often receives far less attention than it deserves — the manner of holding the property.

 

Whether you choose Joint Tenancy or Tenancy-in-Common (TIC) has real consequences on inheritance, estate planning, and what happens if one owner passes away. While this might seem like a technical checkbox during conveyancing, it affects your loved ones’ legal and emotional journey later on.

 

Understanding how manner of holding works, and how it interacts with the Intestate Succession Act, can protect your family’s interest and ensure your property passes on according to your wishes.

 

Joint Tenancy: One Property, One Shared Interest

A Joint Tenancy means all co-owners collectively own the entire property. There are no defined percentage shares. Instead, the underlying principle is the Right of Survivorship.

Key Feature: Right of Survivorship

If one owner passes away, the property automatically transfers to the surviving co-owner(s), regardless of any will or family claims.

 

When Joint Tenancy Makes Sense

• Married couples buying a matrimonial home
  
  
• Partners who want automatic transfer without probate
  
  
• Situations where both owners share the home equally and permanently
  
  

Example Scenario

A married couple (no children yet) owns a HDB flat under joint tenancy. If one spouse passes, the surviving spouse becomes sole owner automatically.

No legal dispute, no delay, ownership is immediately transferred.

 

Tenancy-in-Common: Defined Shares and Flexibility

Under Tenancy-in-Common (TIC), each owner holds a specified share of the property — e.g., 50-50, 60-40, or even 99-1.

 

There is no automatic survivorship. Each owner’s share becomes part of their estate when they pass away.

When TIC Makes Sense

• Co-owning with siblings or business partners
  
  
• Couples contributing unequally to the purchase
  
  
• Second marriages / blended family situations
  
  
• Estate planning for children or elderly parents
  
  

Example Scenario

Two siblings own a condominium as 60% (elder brother) and 40% (younger sister). If the sister passes away, her 40% does not automatically go to her brother — instead, it passes to her estate beneficiaries.

 

What Happens If Someone Passes Away Without a Will? 

Intestate Succession Act

If an owner dies without a will, Singapore’s Intestate Succession Act decides how property shares are distributed (for non-Muslims; Muslims are governed by Syariah inheritance law).

Here are simplified scenarios assuming the deceased held a share under Tenancy-in-Common:

 

1) Married, No Children, Parents Alive

Property share goes to:

• 50% to spouse (Spouse will eventually own 75%. 50% of own share + 50% of spouse’s share.
  
  
• 50% to parents (25% share to be split equally with spouse’s parents) – If both parents still alive, each parent will own 12.5% of the property
  
  

2) Married With Children

Spouse Property share goes to:

• 50% to spouse (Spouse will eventually own 75%. 50% of own share + 50% of spouse’s share.
  
  
• 50% to children, divided equally- If there are 2 children, each child will own 12.5% of the property
  
  

3) Single, No Children, Parents Alive

Share goes to:

• Parents equally –  If both parents still alive, each parent will own 50% of the property
  
  
  

4) Single, No Parents, Has Siblings

Share goes to:

• Siblings equally – If there are 2 siblings, each sibling will own 50% of the property
  
  

5) No Immediate Family

Share may flow to more distant relatives (grandparents, uncles/aunts, cousins), eventually to the State if no relatives exist.

 

Why This Matters Financially and Emotionally

Choosing the wrong manner of holding can lead to:

• Unexpected property disputes
  
  
• Compulsory sale if co-owners cannot afford to take over shares
  
  
• Emotional stress during a time of grief
  
  
• Family conflict due to legal entitlements vs intentions
  
  

For many Singaporeans, property is the largest asset, clarity matters.

 

Role of Mortgage Insurance: A Must-Consider

For homeowners, especially those with dependants, mortgage insurance (e.g., MRTA / reducing-term coverage) plays a critical role.

Why It Matters

If one owner passes away, the surviving co-owner must still service the loan. Mortgage insurance ensures:

• Outstanding loan is paid off
  
  
• Spouse or children are not burdened
  
  
• Property does not need to be sold under distress
  
  

For HDB buyers, HPS (Home Protection Scheme) is compulsory unless you have equivalent private coverage. For private property buyers, it’s optional, but financially advisable.

 

Examples Illustrating Real-Life Consequences

Case 1 — Married, Joint Tenancy

Husband passes. Wife automatically becomes sole owner, and mortgage insurance clears the loan. The home is secure.

Case 2 — Married, Tenancy-in-Common 50-50

Husband passes. Wife gets 50%; the other 50% goes to children or parents. If they disagree or cannot afford to buy out the share, the property may need to be sold.

Case 3 — Two Friends Buy Under TIC

One dies suddenly. Surviving friend may be forced into joint ownership with the deceased’s family, uncomfortable and complicated.

 

Should You Switch Manner of Holding?

You can change the manner of holding later, but fees and legal steps apply. Many couples switch to TIC for estate planning purposes once they have children, while others move from TIC to Joint Tenancy for simplicity.

There is no “one size fits all”, it depends on life stage, dependants, and estate goals.

 

Conclusion: It’s Not Just a Legal Term; It’s a Family Decision

“Manner of Holding” may appear administrative, but it is a deeply personal and long-term decision.

 

Joint Tenancy: simplicity, automatic survivorship

Tenancy-in-Common:  flexibility, estate-planning control

Mortgage insurance:  safeguard for your family

Will / nomination: ensures intention, reduces disputes

 

Buying a home isn’t only about the numbers; it’s about protecting those you love. As your financial and property journey evolves, review your structure, coverage, and estate plans.

 

It’s not just a property, it’s your legacy.