How Do You Hold Ownership Of Your Property?
California real property purchasers and owners often ask their real estate, escrow, and title professionals how they should take possession of their property. Unfortunately, though these professionals may help identify the many methods of owning property, they may not recommend a specific form of ownership, as doing so would constitute practicing law.

The California Land Title Association (CLTA) advises those purchasing real property to give careful consideration to the manner in which title be held. The form of ownership taken, or the vesting of title, will determine who may sign various documents involving the property and future rights of the parties to the transaction. These rights involve such matters as taxes, transferability of title, exposure to creditor’s claims, and probate implications in the event of a death.

The following definitions are some common ways of holding title. They are an informational overview and should not be relied upon as legal definitions. Real property purchasers and owners may wish to consult legal counsel to determine the most advantageous form of ownership for their particular situation.


If you are uncertain of how you currently possess title to your property, give me a call. I can assist you with that information.

COMMON METHODS OF HOLDING TITLE


SOLE OWNERSHIP
Sole ownership may be described as ownership by an individual or other entity capable of acquiring title. Examples of common vesting cases of sole ownership are:
1. A Single Man/Woman:
A man or woman who has not been legally married. For example: Bruce Buyer, a single man.
2. An Unmarried Man/Woman:
A man or woman who was previously married and is now legally divorced. For example:
Sally Sellers, an unmarried woman.
3. A Married Man/Woman as His/ Her Sole and Separate Property:
A married man or woman who wishes to acquire title in his or her name alone. The spouse
of the married man or woman acquiring title will be required to specifically disclaim
or relinquish his or her right, title, and interest to the property. For example: Bruce Buyer,
a married man, as his sole and separate property.

CO-OWNERSHIP
Title to property owned by two or more persons may be vested in the following forms:
1. Community Property:
A form of title to property owned by husband and wife during their marriage which they intend to own together. All property is owned equally, and either spouse has the right to dispose of one half of the community property, including transfers by will. For example: Bruce Buyer and Barbara Buyer, husband and wife as community property.
2. Community Property with Right of Survivorship:
This form of holding title shares many of the characteristics of Community Property but adds the benefit of the right of survivorship similar to title held in joint tenancy. On the death of a spouse, the decedent’s interest ends and the surviving spouse owns the property in severalty. For example: Bruce Buyer and Barbara Buyer, husband and wife as community property with right of survivorship.
3. Joint Tenancy:
A form of vesting title to property owned by two or more persons, who may not be married, in equal interest, subject to the right of survivorship in the surviving joint tenant(s). Title must be acquired at the same time, by the same conveyance, and the document must expressly declare the intention to create a joint tenancy estate. When a joint tenant dies, title to the property is automatically conveyed by operation of law to the surviving tenant(s). Therefore, joint tenancy property is not subject to disposition by will. For example: Bruce Buyer and Barbara Buyer, husband and wife as joint tenants.
4. Tenancy in Common:
A form of vesting title to property owned by any two or more individuals in undivided fractional interests. These fractional interests may be unequal in quantity or duration and may arise at different times. Each co-tenant may sell, lease or will to his/her heir that share of property belonging to him/her. For example: Bruce Buyer, a single man, as to an undivided ¾ interest and Penny Purchaser, a single woman, as to an undivided ¼ interest, as tenants in common.
Other ways of vesting title may include a Corporation, a Partnership, a Trust, or Limited Liability Companies (L.L.C.).

Remember, how title is vested has important legal consequences. You are advised to consult an attorney to establish the most beneficial form of ownership for your individual circumstances.