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Vesting Title in Real Estate
So you have decided to purchase real estate and the escrow company sends you the escrow instructions for your review and approval. One of the items on the instructions will be about how you intend to take title to the real estate you are purchasing. It may seem as simple as filling in the blank but remember that whatever you put in the blank space may have legal consequences in the future. It is advisable that you consult a real estate attorney and discuss the different ways you can take title to ownership in real estate. If you are investing several hundreds of thousands of dollars in buying a real estate property, it is wise to invest a few hundred dollars in seeking the sound counsel of a real estate attorney.
The following is not legal advice but simply a description of some of the different methods that title can be held in real estate.
Sole ownership - is described as ownership by one individual or person.
Below are examples what you may see on the words in a deed of a sole ownership.
Jane, a single woman or
Mary, an unmarried woman or
James, a married man as his sole and separate property
Ownership by two or more individuals may be held in any of the following manner:
Joint Tenancy - is a manner of vesting title to two or more individuals who own real estate in equal shares or interest and subject to the rights of survivorship. Upon the death of one party, title is automatically vested to the surviving joint tenant or tenants by operation of law. A joint tenant cannot will his ownership to another individual.
Tenancy in Common - is described as a manner of vesting title to two or more individuals who own real estate property at the same time. The proportionate ownership of each tenant does not have to be equal. Each tenant can will his or her interest to his or her heirs. Upon the death of a tenant, interest passes on to the person named on the will of that tenant and the heir becomes the new tenant in common with the surviving tenants in common.
Community Property - is a manner of vesting title to real estate property owned by husband and wife with each owning one half. Either spouse has the right to convey one half of the community property either through a sale or by a will.
Below is an example of the words in a deed when taking title as community property.
James and Mary, husband and wife, as community property
There are also other methods of vesting title to ownership to a partnership, a corporation, or a trust. Please call your real estate attorney for legal advice on how you should take title to your property.
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