Five
Methods of Holding Title:
- Tenancy in Common
- Sole Ownership
- Community Property
- Joint Tenancy
- Community Property with Right of Survivorship Tenancy in Common
The following are definitions of common vesting as an informational
overview. Consumers should not rely on these as legal definitions. The
Association urges real property purchasers to carefully consider their
titling decision prior to closing, and to seek counsel should they be
unfamiliar with the most suitable ownership choice for their particular
situation. Real Estate
for sale in Cincinnati.
Sole
Ownership
Sole ownership may be described as ownership by an individual or other
entity capable
of acquiring title. Examples of common vesting in cases of sole ownership
are:
- A single man or woman
- An unmarried man or woman
- A married man or woman as his or her sole and separate property
The title company insuring title will require the spouse of a married man
or woman acquiring title to specifically disclaim or relinquish his or her
right, title and interest in the property.
Co-Ownership
Title to property owned by two or more persons may be vested as follows:
Community Property
A form of vesting title to property owned by husband and wife during their
marriage which they intend to own together. Community property is
distinguished from separate property, which is property acquired before
marriage, by separate gift or bequest, after legal separation, or which is
agreed to be owned only by one spouse.
Real Estate for sale in Cincinnati.
Joint Tenancy
Joint Tenancy is a form of vesting title to property owned by two or more
persons, who may or may not be married, in equal interest, subject to the
right of survivorship in the surviving joint tenant(s). Title must have
been acquired at the same time, by the same conveyance, and the document
must expressly declare the intention to create joint tenancy estate. When
a joint tenant dies, title to the property is automatically conveyed by
operation of the law to the surviving joint tenant(s). Therefore, joint
tenancy property is not subject to disposition by will.
Tenancy in
Common
A form of vesting title to property owned by any two individuals in
undivided fractional interests. These fractional interests may be unequal
in quantity or duration and may arise at different times. Each tenant in
common owns a share of the property, is entitled to a comparable portion
of the income from the property and must bear equivalent share of
expenses. Each co-tenant may sell, lease or will his/her heir that share
of the property belonging to him/her.
Community
Property with Right of Survivorship
A form of vesting title to property owned by husband and wife during their
marriage which they intend to own together. Right of Survivorship avoids
probate. Mutual consent required for transfer. Decendent's interest
automatically passes to surviving spouse due to Right of Survivorship.
Surviving spouse may have tax advantage.
Real Estate for sale in Cincinnati.
Other
Ways of Vesting Title Include:
A
Corporation
A corporation is a legal entity, created under state law, consisting of
one or more shareholders but regarded under law as having existence and
personality separate from such shareholders.
A
Partnership
A partnership is an association of two or more persons who can carry on
business for profit as co-owners, as governed by the Uniform Partnership
Act. A partnership may hold title to real property in the name of the
partnership.
A Trust
A trust is an arrangement whereby legal title to property is transferred
by the grantor to a person called a trustee, to be held and managed by
that person for the benefit of the people specified in the trust
agreement, called beneficiaries.
In cases of corporate, partnership, or trust ownership , the title company
will require that it be furnished legal documents so that it may satisfy
itself as to ownership rights of the parties to the transaction and any
limitations which may exist on the sale, transfer or encumbrance of the
property. Required documents may include corporate articles and bylaws,
certificate of partnership and trust agreements.
Real Estate for sale in Cincinnati.
FAQs
about Holding Title
Who can
Take Title?
Tenancy in
Common
Any number of persons. Can be husband and wife. Must be legal age.
Joint
Tenancy
Any number of persons. Can be husband and wife. Must be legal age.
Community
Property
Only husband and wife
How is
Ownership Divided?
Tenancy in
Common
Ownership can be divided into any number of interests, equal or unequal.
Joint
Tenancy
Ownership interests cannot be divided
Community
Property
Ownership interests are equal
Who
Holds Title?
Tenancy in
Common
Each co-owner has a separate legal title to his undivided interest
Joint
Tenancy
There is only one title to the whole property
Community
Property
Title in the "community" (similar to title being in a partnership)
Who
has Possession?
Tenancy in
Common
Equal right of possession
Joint
Tenancy
Equal right of possession
Community
Property
Equal right of possession
How do
Owners Convey their Interest?
Tenancy in
Common
Each co-owner's interest may be conveyed separately by its owner.
Real Estate for sale in Cincinnati.
Joint
Tenancy
Conveyance by one co-owner without the others breaks the joint tenancy,
and owners then become tenants in common.
Community
Property
Both co-owners must join in conveyance of real property. Separate
interests cannot be conveyed.
What
Will be the Purchaser's Status?
Tenancy in
Common
Purchaser becomes a tenant in common with the other co-owners.
Joint
Tenancy
Purchaser becomes a tenant in common with the other co-owners.
Community
Property
Purchaser can only acquire whole title of community; cannot acquire a part
of it.
What
Happens in Case of Death?
Tenancy in
Common
On co-owner's death, his interest passes by will to his devisees or heirs.
No survivorship right. Real
Estate for sale in Cincinnati.
Joint
Tenancy
On co-owner's death, his interest ends and cannot be willed. Survivor owns
the property by survivorship.
Community
Property
On co-owner's death, it goes to survivor in severalty. It goes by will to
decendent's devisee or by succession to survivor.
Community
Property with Right of Survivorship
Decedent's interest automatically passes to surviving spouse due to Right
of Survivorship.
What
is the Successor's Status?
Tenancy in
Common
Devisees or heirs become tenants in common.
Joint
Tenancy
Last survivor owns property in severalty.
Real Estate for sale in Cincinnati.
Community
Property
If passing by will, tenancy in common between devisee and survivor
results.
What
is a Creditors Interest?
Tenancy in
Common
Co-owner's interest may be sold on execution sale to satisfy his creditor.
Creditor becomes a tenant in common.
Joint
Tenancy
Co-owner's interest may be sold on execution sale to satisfy creditor.
Joint tenancy is broken. Creditor becomes tenant in common.
Community
Property
Co-owner's interest cannot be seized and sold separately. The whole
property may be sold to satisfy debts of either husband or wife.
What
is the Presumption of Law?
Tenancy in
Common
Favored in doubtful cases except husband and wife (see community
property).
Joint
Tenancy
Must be expressly stated and properly formed. Not favored.
Real Estate for sale in Cincinnati.
Community
Property
Strong presumption that property acquired by husband and wife is
community.
