People can either own real estate in which they reside or hold it as their own economic investment. Ownership then gets determined by a title. A person can hold a real estate title through one of a few different ways. Here you’ll learn about a couple of ways that one can hold a real estate title.
Tenancy In Common
With this type of title, at least two people hold a joint title to a property. The owner percentages may be equal or unequal. People who have a Tenancy In Common title hold an individual title to their respective portion of the property. This type of title allows the owner to use their portion of the property as collateral for some financial transactions.
Two people hold the title to a property in joint tenancy. Each party has equal rights to their property. When one holder of this type of title dies, the property automatically goes to the other titleholder in a legal arrangement called a right of survivorship.
In this type of title, a single individual or legal entity holds the title to the property. Much of the time, unmarried people are the sole owners of their real estate. But people who are married can also own real estate separate from their partner. Lastly, businesses can also own property. With sole ownership, the owner does not have to consult any other party when it comes to the legal affairs surrounding the property. But should the sole owner die or become legally incapable of making decisions, deciding who gets the property becomes more of an entangled affair.
Tenants By Entirety
Under this legal distinction, a couple who owns a property is legally considered one person. If one-half of the couple dies, no legal action has to be taken to transfer the property in the name of the surviving partner. However, the property also can’t be legally subdivided. In other words, the conveyance of the property can only be done together as a couple.
A married couple buys some property and intends to legally own it and put it in both of their names. This is known as “community property”. Both parties in the couple own every part of the property equally. In the event that the couple divorces, the property will get equally divided. Should one-half of the couple die, the property will go to the surviving spouse?