Quick answer
It depends on how the property was owned. If you were joint tenants, the deceased's interest passes to you by survivorship, and once the death is recorded on the title you can generally borrow against it on your own. If you were tenants in common, their share forms part of their estate, so the executor is involved and borrowing against the whole property is more complex and slower.
Key points
- Joint tenants: the whole property passes to the surviving owner or owners by survivorship.
- Tenants in common: each owner's share forms part of their own estate and is handled by the executor.
- Recording the death on the title is usually the first practical step before a lender can proceed.
- Titles Queensland says most correctly prepared dealings are registered within 3 to 5 working days.
- If the property is tied up in an estate, another property may be the faster route.
It depends on how you owned the property together. If you were joint tenants, the property passes to you as the survivor, and once the death is recorded on the title you can usually borrow against it on your own. If you were tenants in common, your co-owner’s share belongs to their estate, which brings in the executor and makes borrowing against the whole property slower and more involved.
We’re sorry if you’re reading this because someone close to you has died. Often the person who co-owned the home was also a partner in the business, and the business still has bills, staff and customers. This guide sets out the property side plainly, so you can make decisions without guessing.
Joint tenants or tenants in common: why does it matter so much?
Co-owners in Australia hold property in one of two ways, and the difference only really shows itself when one owner dies.
Joint tenants. The Victorian land registry defines joint tenancy as ownership of land by two or more people with a right of survivorship: when one joint owner dies, the land as a whole passes to the survivor or survivors. It also notes that if a transfer doesn’t state how the owners hold the land, it defaults to joint proprietorship. Many couples own their home this way.
Tenants in common. The same glossary describes tenants in common as two or more people owning shares in a property, equal or unequal. When an owner dies, their share is an asset of their deceased estate, dealt with by their executor or administrator once appointed. Business partners and investors often own this way.
Your title search shows which applies. Don’t rely on memory; check it.
| Joint tenants | Tenants in common | |
|---|---|---|
| What happens on a death | Whole property passes to the survivor(s) | Deceased’s share goes to their estate |
| Does the will decide it? | No, survivorship applies | Yes, the share passes under the will or intestacy rules |
| Who can sign a new mortgage | The survivor, once the death is recorded | The surviving owner and the executor or administrator |
| Typical timing to borrow | Shorter: record the death, then apply | Longer: depends on the estate’s progress |
What’s the first step if you were joint tenants?
Record the death on the title. Until that’s done, the title still shows both names, and a lender’s solicitor will need the property in the survivor’s name before registering a new mortgage.
Titles Queensland’s guide to recording the death of a joint tenant shows what’s typically involved:
- the registry’s request to record a death form, completed, signed and witnessed by a qualified witness
- evidence of death, such as a death certificate or a properly certified copy
- a current title search
- the registry fee
It explains that the deceased’s interest passes immediately to the surviving joint tenant on the basis of survivorship, rather than under the will, and that most correctly prepared dealings are registered within 3 to 5 working days. Other states have equivalent forms and processes through their own land registries. If the property is in a different state from where you live, our guide to interstate property as security explains which registry applies.
Once the title is in your name, the property can generally be used like any other. If there’s a home loan, a second mortgage can sit behind it. If it’s debt-free, a first mortgage is the usual route.
If the business needs funds while you’re sorting this out, a short enquiry lets a real person look at the timing with you. There’s no credit check at that stage.
What if you were tenants in common?
This is the harder path, and it’s worth being realistic about it.
Your own share is yours, but the other share now belongs to the estate. A lender taking security over the whole property would need the estate’s involvement, which means an executor or administrator with authority to act, and that usually takes time. Even then, borrowing against an estate’s interest for a surviving owner’s business is a legal question first and a lending question second, because the executor’s duty runs to the estate’s beneficiaries.
Practical options in this situation:
- Wait for the estate to resolve. If the share is left to you, the title can be updated once the estate is administered, and then you can borrow against the whole property.
- Use a different property. An investment property or other real estate in your own name may be a faster security.
- Use the business’s turnover instead. For smaller amounts, unsecured business loans are assessed on turnover and bank statements rather than property.
- Plan a buy-out. If you’ll be buying the estate’s share, that’s a separate transaction worth planning with the estate’s lawyer and your accountant.
Whichever path you take, keep the estate’s lawyer in the loop about any borrowing that touches the property. It avoids crossed wires, and it means that when the estate is finalised, the title can be updated without anyone discovering a loan they didn’t know about.
What will a lender want to see?
Beyond the usual property and business documents, a lender will typically ask for:
- the death certificate, or evidence the death has been recorded on the title
- the updated title search
- if an estate is involved, details of the executor or administrator and the estate’s lawyer
- an honest picture of how the business is trading since the loss, especially if the person who died was involved in running it
It also helps to separate what’s urgent from what can wait. Payroll, rent and supplier accounts in the next few weeks may need a quick answer, while a larger refit or expansion can be timed for when the title and estate questions are settled. Saying which is which lets a lender suggest a smaller, faster step now and a bigger one later, rather than forcing everything into one application before the paperwork is ready.
That last point matters. A lender is assessing whether the business can carry and repay the loan. If the business has lost a key person, explaining who’s now doing that work, and how, makes the application stronger rather than weaker.
An illustrative example
Illustrative only. A couple ran a hair salon together and owned their home as joint tenants with a modest loan on it. After one partner dies, the surviving partner wants to keep the salon going and needs $90k to refresh the fit-out, which was overdue, and to hire a senior stylist to take on the clients her partner used to see.
Her conveyancer records the death on the title using the registry form and a certified death certificate, and the update is registered within a week. With the home now in her sole name, a $90k second mortgage behind the existing loan is arranged. The home loan is untouched, and the salon refit goes ahead in the quieter months. See salon fit-out finance for how salons typically borrow.
Keeping the business going? We’ll take it one step at a time
When you’re dealing with a loss and a business at the same time, the last thing you need is a lender who doesn’t listen. We arrange loans secured on residential or commercial property from $20k to $5m, as a first mortgage, a second mortgage behind an existing loan, or a caveat loan, for business purposes only, and we’re happy to work around the paperwork a death involves.
The enquiry takes about 60 seconds, and there’s no credit check when you first enquire. Your details aren’t spread around a pile of lenders, so you won’t be fielding calls you didn’t ask for. A real person reads what you’ve shared and calls you, at a time that suits, to talk it through gently and practically. Please fill the form in accurately, including how the property is held, so we can suggest the right path from the start.
Frequently asked questions
How do I know whether we were joint tenants or tenants in common?
Your title search shows how the owners hold the property. In Victoria, the land registry notes that co-owners default to joint proprietorship if the transfer doesn't state otherwise, but always check the title rather than assuming.
Do I need probate to borrow against a property we owned as joint tenants?
Generally no. Titles Queensland explains that a joint tenant's interest passes to the survivor by survivorship rather than under the will. You record the death on the title with the registry's form, evidence of death and a title search, and the property is then in the survivor's name.
Can the executor sign a mortgage over a tenants-in-common share?
An executor or administrator deals with the deceased's share once they've been appointed, and any borrowing would need their involvement and authority. It's a legal question as much as a lending one, so the estate's lawyer should be part of the conversation.
Will a lender rush me while I'm grieving?
A good lender won't. Tell them what's going on. Timing often depends on paperwork such as death certificates and title updates, and a lender who understands that can plan around it.
Is there another way to fund the business while the estate is sorted out?
Sometimes. If you own another property in your own name, it may be quicker to borrow against that. Smaller amounts may suit unsecured funding based on the business's turnover and bank statements.