Home Buyers How Will Title be held on your Property? When purchasing a property buyers have to consider how title will be held. This is a serious consideration. Buyers stipulate thru escrow how they wish to hold title. Most commons are Joint Tenants and Tenancy in Common. When escrow is closed owner’s title is Joint Tenants or Tenancy in Common. Below is a general overview of the difference between Joint Tenants and Tenancy in Common. Consult with an attorney or real estate title expert when deciding on how title will be held on a property.
Joint Tenants vs. Tenancy in Common
Joint tenants at least two people each has undivided interest in property. When title is taken as joint tenants and one spouse dies, the surviving spouse automatically receives the property. This will be the case for any owners of property (siblings, partners, partnerships and etc). This is called a right of survivorship. The property does not go through probate proceedings, the surviving spouse must still file an affidavit of death of joint tenant to remove the deceased’s name from the deed.
Tenancy in Common:
When title is taken as tenancy in common and one spouse dies, there is no right of survivorship.The surviving spouse does not automatically receive title to the property. If the deceased spouse dies with a will, the deceased spouse’s interest would be handled as outlined in the will. In other words, each spouse has ownership of their half of the community property. Can leave it by will to their surviving spouse or any other party(s). Tenancy in common is subject to probate. This will be the case for any owners of property (siblings, partners, partnerships and etc). Additionally, each owner can sell their interest in property without the consent of co-owner(s).
Consult with Attorney with Questions:
- Tax consequences of owning property jointly?
- What is best method of owning property with co-owner?
Information deemed reliable but not guaranteed.