Page 19 - Kim Sargent GuideBuyerCustom.pdf

Holding Title To Real Property

Commonly Used Entities

Tenancy in Joint tenancy Community Community
common with right of property property with right
sur vivorship of survivorship
Any number of persons
(Can be husband & wife)
Parties Any number of persons Only husband and wife Only husband and wife
(Can be husband & wife) (2 persons per marital community)
Ownership can be divided into
Division any number of interests, Ownership interests Ownership interests Ownership interests
equal or unequal. must be equal. must be equal. must be equal.

Title is in the “community”.
Title is in the “community”.
Each co-owner has a
Title separate legal title to his There is only one title to the Each interest is separate but Each interest is separate but
undivided interest. whole property. management is unified. management is unified.
Possession Equal right of possession. Equal right of possession. Equal right of possession. Equal right of possession.

Conveyance by one Both co-owners must join Both co-owners must join on
Each co-owner’s interest
Conveyance may be conveyed separately co-owner without the others on conveyance of real property. conveyance of real property.
by its owner. breaks the joint tenancy, provided Separate interests cannot be Separate interests cannot be
it is recorded prior to death. conveyed. conveyed.

Purchaser’s Purchaser will become a tenant Purchaser will become a tenant Purchaser can only acquire Purchaser can only acquire
in common with the other
in common with the other
Status co-owners in the property. co-owners in the property. whole title of community, but whole title of community, but
cannot acquire a part of it.
cannot acquire a part of it.
On co-owner’s death his On co-owner’s death ½ On co-owner’s death, his
On co-owner’s death, his interest ends and cannot be belongs to survivor in severalty, interest ends and cannot be
Death interest passes by will to his disposed of by will. ½ goes by will to descendant’s disposed of by will.
devisees or heirs. No right of
survivorship. Survivor owns the property devisees or by succession Estate passes to survivor
by rights of survivorship. to survivor. outside of probate.

Co-owner’s interest may be
Co-owner’s interest may be
Creditor’s sold at execution sale to satisfy sold at execution sale to satisfy Co-owner’s interest cannot be Co-owner’s interest cannot be
seized and sold separately.
seized and sold separately.
Rights his creditor. Creditor becomes creditor. Joint tenancy is broken, The whole property may be sold The whole property may be sold
a tenant in common. creditor becomes tenant at execution sale to at execution sale to
in common. satisfy creditor. satisfy creditor.
Must be expressly stated in
writing and accepted. Court
Court will presume tenancy in Must be expressly stated in Strong presumption that will not presume joint tenancy.
Presumption common if not expressly stated writing and accepted. Court will property acquired by husband Both halves of community
husband and wife. not presume joint tenancy. and wife is community. property are entitled to
“stepped up” tax basis as of
date of death of either spouse.

This document is intended for information purposes only. You are urged to contact your Attorney and Certified Public
Accountant regarding the best way for you to hold title as your personal circumstances will influence this decision.

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