What are the ways I can take title to real property?
I am acquiring real estate is various States as an investment and need to know how I should title this real property?11/26/2016 | Category: Real Property » Deeds | State: ALL | #27187
If one or more people the most common forms of ownership are tenants in common and joint tenants. In States that recognize community property, community form of ownership could also be used.
There is also a form of ownership in some States named "tenants by the entirety."
Sole Ownership -
Tenants in Common - When you own real property as tenants in common your ownership is treated as separate and apart from the other owners. This means you can convey your interest, moorage it and Will it at your death. If you die without a Will intestate laws control who gets your interest. When tenants in common is used, you can own any percentage of the property as specified in the deed. For example you could own 40% and your co-tenant could own 60%. Although your interest is considered separate, as a practical matter it would be difficult to get a loan only on your interest or sell your interest because of your co-tenant. Your right to possession and control is equal with your co-tenants.
Joint Tenants - If you own the property as joint tenants then there is a right of survivorship when one or more co-tenants dies. The property does not go through probate but instead transfers immediately to the surviving co-tenant. Unlike tenants in common you cannot own different percentage of a joint tenancy. All co-tenants ownership interest is equal. Each join tenant can transfer his or her interest separately to a third party. If so, it breaks the joint tenancy and creates a tenancy in common with the new owner.
Community Property - This can be used for Husband and Wife or domestic partners in States where this form of ownership is recognized. Ownership is equal. Both owners must agree to a mortgage or conveyance. Upon death the property goes to the survivor unless the Will specifies otherwise.
Community Property with rights of survivorship - This is generally the same as community property but includes rights of survivorship. This means the property goes to the survivor and cannot be left to others by Will or intestate laws. Ownership is equal so you cannot have different percentage ownership.
Tenants by the Entirety - Only married couples may hold property as tenants by the entirety. In some states it is also limited to their homestead. Tenants by the entirety may not dispose of their respective shares of their property without the consent of both. Creditors of only one spouse may obtain judgments, but they generally may not foreclose upon property that the debtor spouse holds in tenancy by the entirety. Some States, like Ohio no longer recognize the creation of a new Tenancy by the entirely and are instead using joint tenants with rights of survivorship.
Trusts - Real Property can also be owned by a Trust in which case the effect of same is controlled by trust laws of each state.