4 Common ways to Hold Title to Real Property

How many times have you thought about how you hold title to your home? If you currently do not own a home then how will you hold title when that day comes. Previously Brian Qualls wrote an article on California Home Strategies describing how a married couple should hold title in the state of California. However we have not addressed how single persons, business partners or friends buying together would hold title. In the next few paragraphs we are going to take a look at 4 Common Ways to Hold Title to Real Property in 6 different aspects.

Tenancy in Common:

• title – each co-owner has a separate legal title to his or her undivided interest.
• Parties – any number of persons
• Division – Ownership can be divided into any number of interests, equal or unequal.
• Conveyance – Each co-owner’s interest may be conveyed separately
• Death – On co-owner’s death, his or her interest passes by will to that person’s devisees or heirs, No survivorship right.
• Successor’s Status – Devisees or Heirs become tenants in common

Joint Tenancy:

• title – There must be unity of title and time created in one document
• Parties – any number of persons
• Division – Owner interests must be equal
• Conveyance – Conveyance by one co-owner without the others will sever (terminate) that individuals joint tenancy
• Death – On co-owner’s death, his or her interest ends and cannot be disposed of by will. Survivor(s) own(s) the property. An affidavit of death of joint tenant establishes death
• Successor’s Status – Last survivor owns property 100%

Community Property:

• title – is in the community. Each interest is separate but management is unified
• Parties – Only Husband and wife. Registered domestic partners have community property rights
• Division – Ownership and managerial interests are equal
• Conveyance – Real Property requires written consent of other spouse or registered domestic partner, and separate interest cannot be conveyed except upon death
• Death – Upon death of one spouse or registered domestic partner, 50% belongs to the surviving spouse or RDP, 50% goes by will to descendant’s devisees or by succession to surviving spouse or RDP,
• Successor’s Status – If passing by will, tenancy in common between devisee and survivor results

Community Property with Right of Survivorship:

• title – is in the community. Each interest is separate but management is unified. Title must expressly state community property with Right of Survivorship
• Parties – Only Husband and wife. Registered domestic partners have community property rights
• Division – Ownership and managerial interests are equal
• Conveyance – Real Property requires written consent of other spouse or registered domestic partner, and separate interest cannot be conveyed except upon death
• Death – Upon death of one spouse or registered domestic partner, his or her interest ends and cannot by disposed by will. Survivor owns the property 100%. An Affidavit of death establishes death of a spouse or RDP.
• Successor’s Status – Purchaser can only acquire whole title of community, cannot acquire part of it.

As always I suggest that you talk to a Real Estate attorney or do your own research when choosing the most appropriate way for you too hold title.