Prior to closing you will
need to decide how to “hold title”
of the new property. How you hold title
will effect how your property is treated
in respect to laws, taxes and estate planning.
Do not confuse this guide with legal advice,
to fully understand the affects of how you
hold title and what way is the best in your
case you should consult an attorney or accountant.
One
buyer/owner
Sole Ownership
An individual who has not been legally married,
a legally divorced individual who was married
and is now single or a person who is married
but wishes to have the title in their name
only. When a married couple is buying the
spouse will have to sign a document saying
they give up any right to the property.
Living Trust
You must create a living trust, while the
person is still alive, giving that person
control of their estate. The individual
must transfer the title into the trust.
Two
or more buyer/owners
Tenancy in Common
This allows each partner to sell, lease
or will to heirs their share of the property.
>Any number of individuals may hold title.
> Any number of equal or unequal interests
are allowed in the division of owner ship.
> A separate legal title is held by each
co-owner to their undivided interest in
the property.
> There is Equal right of possession.
Joint Tenancy
Property which is owned by any number of
people jointly, if one of the owners dies,
title automatically falls to the remaining
living owners.
> Any number of individuals may hold
title.
> Ownership interests cannot be divided.
> The property has only one title.
> There is Equal right of possession.
Community Property
Property owned together equally by a husband
and wife. All documents and agreements of
transfer must be signed by the man and woman.
> Only a husband and wife can take title.
> Interests in owner ship are equal.
> Title is held in a similar way to title
held in a partnership; title is held in
"community."
> There is Equal right of possession.
Additional Ways to Hold Title
Partnership
A partnership is an association of two or
more people who carry on a business for
profit. Partnerships are allowed to hold
title to real property in the name of the
partnership and partners may have equal
or an unequal interest in the property.
Corporation
As a legal entity a corporation consisting
of one or more shareholders is looked at
under law as having basically the same rights
as an individual. The entity exists until
it is legally dissolve. Land owned by a
corporation cannot be sought to repay debts
or judgments against any of its shareholders.
Trust
A trust is a legal arrangement where title
to property is transferred from the grantor
to a person called a trustee. The trustee
holds and manages the property for the benefit
of the people listed in the trust as beneficiaries.
Title
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