The Most Common Ways to Hold Title
One of the most important aspects of the entire escrow
procedure is how a buyer takes title. That not only determines
how the buyer will be insured; it has significant legal and tax
consequences as well. It can even create some unanticipated
complications in the future, when the buyer decides later as an
owner to transfer the title to someone else. So much depends
upon the precise way title is held, in fact, that a buyer should not
rely on advise from a Real Estate Agent, Escrow Officer or friend
but should consult an attorney or a tax consultant about his or
her particular circumstances.
Tenancy in Common
When two or more persons buy property together, whether their
shares are equal or unequal, they are said to hold the property
as tenants in common. Tenancy in common is so standard as a
form of ownership for unrelated buyers that it is generally
presumed to be equal unless they are listed otherwise on the
deed, and each of the tenants has equal rights of possession.
Each co-tenant owns an undivided interest, but unlike in a joint
tenancy, these interests need not be equal and may arise from
different conveyances and at different times. There is no right of
survivorship as in a joint tenancy, so if one of the tenants in
common should happen to die, his or her interest would not
revert automatically to the remaining tenants. Consequently,each
tenant in common should note in a will the person or persons to
whom the share will pass. Unrelated property buyers usually buy
as tenants in common rather than as joint tenants because they
want their property to go th their heirs and not the surviving joint
tenants. Each individual co-tenant can sell or mortgage an
interest in the land but acts only for his or her own share and
cannot bind anyone else's interest.
Joint Tenancy
The main distinguishing characteristic of joint tenancy is the right
of survivorship. If one of the joint tenants dies, his or her interest
passes automatically to the surviving party or parties instead of
being tied up in lengthy probate proceedings. When two or more
people own a property as joint tenants, they own an undivided
equal interest in the property and have the same rights to the
use of the entire property, that is, neither co-tenant can
distinguish which portion of the land he or she owns. Once a joint
tenancy has been properly created, all joint tenants must join in
any document effecting title to the subject property. Any
documents conveying title to property held in joint tenancy which
is not joined by all joint tenants is questionable and cannot be
insured.
Community Property
Holding title to property as community property is a type of
ownership available to married couples only. At present, eight
states are considered community property states: Arizona,
California, Idaho, Louisiana, Nevada, New Mexico, Texas, and
Washington. These states regard any property purchased during
a marriage as community property. Husband and wife have an
equal right to possess the property during their marriage, and in
some states, upon the death of either spouse, the survivor
automatically receives half of the community property and the
other half passes to the lawful heirs. Neither holder of community
property may sell his or her share without notifying the other. If
either one dies and leaves no will, the surviving holder may
acquire the property, but unlike in joint tenancy,either holder may
will his or her half to others.
Title in Partnership
An association of two or more persons who as co-owners carry
on a business for profit is called a partnership. It is created by an
agreement between two or more persons to take care of
business jointly and share the profits. It may be a general
partnership where each partner is liable for the debts of the
limited partnership, or a limited partnership, where each limited
partner's liability is limited to the amount of his or her investment
and he or she is not otherwise liable for the debts of the
partnership. Tenancy in partnership allows any number of
partners to have equal or unequal interest in the property in
relation to their interest in the partnership. Each partner has
equal rights of possession, but only according to the partnership
agreement.
Thank you Southland Title Corp. 7530 Glenoaks Blvd.
Burbank CA 91504
One of the most important aspects of the entire escrow
procedure is how a buyer takes title. That not only determines
how the buyer will be insured; it has significant legal and tax
consequences as well. It can even create some unanticipated
complications in the future, when the buyer decides later as an
owner to transfer the title to someone else. So much depends
upon the precise way title is held, in fact, that a buyer should not
rely on advise from a Real Estate Agent, Escrow Officer or friend
but should consult an attorney or a tax consultant about his or
her particular circumstances.
Tenancy in Common
When two or more persons buy property together, whether their
shares are equal or unequal, they are said to hold the property
as tenants in common. Tenancy in common is so standard as a
form of ownership for unrelated buyers that it is generally
presumed to be equal unless they are listed otherwise on the
deed, and each of the tenants has equal rights of possession.
Each co-tenant owns an undivided interest, but unlike in a joint
tenancy, these interests need not be equal and may arise from
different conveyances and at different times. There is no right of
survivorship as in a joint tenancy, so if one of the tenants in
common should happen to die, his or her interest would not
revert automatically to the remaining tenants. Consequently,each
tenant in common should note in a will the person or persons to
whom the share will pass. Unrelated property buyers usually buy
as tenants in common rather than as joint tenants because they
want their property to go th their heirs and not the surviving joint
tenants. Each individual co-tenant can sell or mortgage an
interest in the land but acts only for his or her own share and
cannot bind anyone else's interest.
Joint Tenancy
The main distinguishing characteristic of joint tenancy is the right
of survivorship. If one of the joint tenants dies, his or her interest
passes automatically to the surviving party or parties instead of
being tied up in lengthy probate proceedings. When two or more
people own a property as joint tenants, they own an undivided
equal interest in the property and have the same rights to the
use of the entire property, that is, neither co-tenant can
distinguish which portion of the land he or she owns. Once a joint
tenancy has been properly created, all joint tenants must join in
any document effecting title to the subject property. Any
documents conveying title to property held in joint tenancy which
is not joined by all joint tenants is questionable and cannot be
insured.
Community Property
Holding title to property as community property is a type of
ownership available to married couples only. At present, eight
states are considered community property states: Arizona,
California, Idaho, Louisiana, Nevada, New Mexico, Texas, and
Washington. These states regard any property purchased during
a marriage as community property. Husband and wife have an
equal right to possess the property during their marriage, and in
some states, upon the death of either spouse, the survivor
automatically receives half of the community property and the
other half passes to the lawful heirs. Neither holder of community
property may sell his or her share without notifying the other. If
either one dies and leaves no will, the surviving holder may
acquire the property, but unlike in joint tenancy,either holder may
will his or her half to others.
Title in Partnership
An association of two or more persons who as co-owners carry
on a business for profit is called a partnership. It is created by an
agreement between two or more persons to take care of
business jointly and share the profits. It may be a general
partnership where each partner is liable for the debts of the
limited partnership, or a limited partnership, where each limited
partner's liability is limited to the amount of his or her investment
and he or she is not otherwise liable for the debts of the
partnership. Tenancy in partnership allows any number of
partners to have equal or unequal interest in the property in
relation to their interest in the partnership. Each partner has
equal rights of possession, but only according to the partnership
agreement.
Thank you Southland Title Corp. 7530 Glenoaks Blvd.
Burbank CA 91504
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Contact me now;
Scott Robinson
Robinson Realty
818 702-8079 main
818 554-1000 cell
Scott@RobinsonRealty.net
Scott Robinson
Robinson Realty
818 702-8079 main
818 554-1000 cell
Scott@RobinsonRealty.net
