What is the best way to keep the title? There are many different angles to buying a property and many decisions to make. One of the main decisions to be made is which method of holding the title is the most applicable and appropriate for a particular parcel. Real estate can be owned by a single owner or by many owners, and understanding the process is very important to making the right decision. Let’s take a look at the process.
Someone who owns a property for himself or herself refers to an owner jointly and severally. When there is more than one owner of a property, the title can be held as joint tenancy, community property (with or without right of survivorship), or common tenure. With so many options available, what is the best way to keep the title? Here’s how each method is defined.
Joint tenure
Joint tenancy is when two or more people own the title along with equal shares of the property. There is an automatic right of survivorship, which means that if one of the co-owners dies, the interest in the property remains in the hands of the other co-owners. This method is common among long-term relationships without marriage. There are some married couples who prefer this method of title possession due to the automatic right of survival.
community property
Community property is a title holding method for managing assets that are acquired during a marriage. This method can only be maintained by married people with assets acquired during the marriage. This would not apply to property acquired before marriage, proceeds from the sale of property before marriage, gifts of inheritance received after marriage, or property that both parties have agreed to separate from community property. All deeds must be signed by both parties to be community property.
Community property with the right to survive would include that option as joint tenure.
Common tenure
Common tenure is when two or more people have the title together but do not have to have equal shares. For example, one tenant might have eighty percent, while the second tenant would have twenty percent. This method of holding title is more common for investment properties with multiple shareholders than for an owner-occupied residence that has a single-family home. This method might also work well for roommates who want to buy property together, but one or two of them have more money to buy in than the other. Parties interested in ways to maintain the title are encouraged to consult with an attorney or CPA to plan the best strategy.
This is the basic understanding of the various ways of owning a degree. For more information on this topic, visit our website or contact Team Enterprise.