COMMON WAYS TO HOLD TITLE (VESTING)

Sole Ownership

Single man/woman

• A man or woman who have never been legally married
• Example: John Smith, a Single Man

Unmarried man/woman

• A man or woman who having been married are legally divorced
• Example: Mary Smith, an unmarried woman

A married man/woman, as his/her sole and separate property

• When a married man or woman wishes to acquire title in his or her name alone, the spouse must consent by signing a quitclaim deed. The spouse then has no claim to the property.
• Example: John Smith, a Married Man as His Sole and Separate Property

A Registered Domestic Partner as His or Her Sole and Separate Property

• A registered domestic partner who wishes to acquire title in his or her name alone.
• Example: John Smith, a registered domestic partner, as his sole and separate property.

Co-ownership

Tenancy in Common

• Two or more persons; may be husband and wife, or registered domestic partners
• Ownership can be divided into any number of interests, equal or unequal
• One or more conveyances (Law presumes interests are equal if not otherwise specified)
• Each co-owner may transfer or mortgage their respective interest separately
• Co-owner's interest not subject to liens of other debtor/owner but forced sale can occur
• Decedent's interest passes to his/her heirs by will or intestate
• Co-owner interests are separately transferable
• Example: John Smith, a Single Man, as to an Undivided 3/4 Interest, and Mary Smith, an Unmarried Woman, as to an Undivided 1/4 Interest, as Tenants in Common.

Joint Tenancy

• Two or more persons; may be husband and wife, or registered domestic partners
• Ownership interest must be equal
• Single conveyance (creating identical interests). Vesting must specify joint tenancy or law presumes tenancy in common
• Each co-owner may transfer their interest separately but tenancy in common results
• Co-owner interest not subject to liens of their debtor/owner but forced sales can occur prior to the debtor's death
• Decedent's interest automatically passes to the surviving joint tenant ("Right of Survivorship")
• Right of Survivorship (avoids probate)
• Example: John Smith and Joe Jones, Registered Domestic Partners as Joint Tenants.

Community Property

• Husband and wife or registered domestic partners
• Ownership interest must be equal
• Single conveyance or presumption from marriage
• Both parties must consent to transfer or mortgage
• Entire property subject forced sale to satisfy debt of either party
• Deceased's interest passes to surviving party, except ½ of said interest may pass to devisee by decedent's will
• Qualified survivorship rights. Mutual consent required for transfer. Surviving spouse or domestic partner may have tax advantage
• Example: John Smith and Mary Smith, Husband and Wife as Community Property

Community Property with Right of Survivorship

• Husband and wife or registered domestic partners
• Ownership interest must be equal
• Single conveyance and parties must indicate consent which can be indicated on deed
• Both parties must consent to transfer or mortgage
• Entire property subject forced sale to satisfy debt of either party
• Decedent's interest automatically passes to surviving party due to Right of Survivorship
• Right of Survivorship (avoids probate). Mutual consent required for transfer. Surviving spouse or domestic partner may have tax advantage
• Example: John Smith and Joe Jones, Registered Domestic Partners as Community Property With Right of Survivorship.

Other ways to hold title

• Trustees of a Trust -- A Trust is an arrangement whereby legal title to the 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 the beneficiaries. The trust holds legal and equitable title to the real estate.
• A Corporation -- A corporation is a legal entity, created under state law, consisting of one or more shareholders but regarded under law as having an 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.
• Limited Liability Companies (LLC) -- This form of ownership is a legal entity and is similar to both the corporation and the partnership. The operating agreement will determine how the LLC functions and is taxed. Like the corporation, its existence is separate from its owners.

* For a more comprehensive understanding of the legal and tax consequences, appropriate consultation is recommended. There are significant tax and legal consequences on how you hold title. We strongly suggest contacting an attorney and/or CPA for specific advice on how you should actually vest your title.