Eight Common Ways To Hold Title

 

This information was recently given to me by Mark Simonsen & Greg Granito of Chicago Title. If you are about to purchase a home in California you should be prepared, before closing to state to escrow how you will take title of your new property.

 

Sole Ownership

1)      A single Man/ Woman

            A man or woman who is not legally married.

2) An unmarried man / Woman

            A man or woman, having been married is legally divorced or a man or woman, having been in a registered domestic partnership that has been legally dissolved.

3) A married man, woman or registered domestic partner, as his or her sole and separate property.

                        When a married man, woman or a registered domestic partner wishes to acquire title in his or her name alone, the spouse/partner must consent, by quitclaim deed or otherwise, to the transfer thereby relinquishing all right, title and interest in the property.

           

Co-ownership

            4) Community Property

The California Civil Code defines community property as property acquired by husband and wife, or by either. Real property conveyed to a married man or woman is presumed to be community property, unless otherwise stated. Under community property, both spouses have the right to dispose of one half of the community property. If a spouse does not exercise his/her right to dispose of one-half to someone other than his/her spouse, then the one-half will go to the surviving spouse without administration. If a spouse exercises his/her right to dispose of one-half, that half is subject to administration in the estate.

 

            5) Joint Tenancy

A joint tenancy estate is defined in the Civil Code as follows: A joint interest is owned by two or more persons in equal shares, by title created by a single will or transfer, when expressly declared in the will or transfer to be joint tenancy. A chef characteristic of joint tenancy property is the right of survivorship. When a joint tenant dies, title to the property immediately vests in the surviving joint tenant(s). As a consequence, joint tenancy property is not subject to disposition by will.

 

6) Tenancy in Common

            Under tenancy in common, the co-owners own undivided interests; but unlike joint tenancy, these interests need not be equal in quantity or duration, and may arise at different times. There is no right of survivorship: each tenant owns an interest which, on his or her death, vests in his or her heirs or devisees.

 

7) Trust:

            Title to real property in California may be held in a title holding trust. The trust holds legal and equitable title to the real estate. The trustee holds title for the trustor / beneficiary, who retains all of the management rights and responsibilities.           

 

8) Community Property with Right of Survivorship:

            Community property of a husband and wife when expressly declared in the transfer document to be community property with the right of survivorship, and which may be accepted in writing on the face of the  document by a statement signed or initialed by the grantees, shall    upon    the death of one of the spouses, pass to the survivor, without administration, subject to the same [procedures as property held in joint tenancy. Registered domestic partners shall have the same rights and protections.    

 

Home buyers who have questions should seek the advice of a qualified real estate attorney and or a tax expert.