Page 17 - Santa Clara eGuide
P. 17
erstanding Common Ways of Holding Title
bene ts for holding title in this manner. On the death of an Other ways of vesting title include as:
owner, the decedent’s interest ends and the survivor owns 1. A Corporation*:
the property. For example: Bruce Buyer and Barbara Buyer,
husband and wife, as community property with right of A corporation is a legal entity, created under state law,
survivorship. consisting of one or more shareholders but regarded under
3. Joint Tenancy: law as having an existence and personality separate from
such shareholders.
A form of vesting title to property owned by two or more 2. A Partnership*:
persons, who may or may not be married or registered
domestic partners, in equal interests, subject to the right of A partnership is an association of two or more persons
survivorship in the surviving joint tenant(s). Title must have who can carry on business for pro t as co-owners, as
been acquired at the same time, by the same conveyance, governed by the Uniform Partnership Act. A partnership
and the document must expressly declare the intention to may hold title to real property in the name of the partnership.
create a joint tenancy estate. When a joint tenant dies, title 3. Trustees of a Trust*
to the property is automatically conveyed by operation of
law to the surviving joint tenant(s). Therefore, joint tenancy A Trust is an arrangement whereby legal title to property
property is not subject to disposition by will. For example: is transferred by the grantor to a person called a trustee, to
Bruce Buyer, George Buyer, as joint tenants. be held and managed by that person for the bene t of the
4. Tenancy in Common: people speci ed in the trust agreement, called the
bene ciaries.
A form of vesting title to property owned by any two or 4. Limited Liability Companies (LLC)*:
more individuals in undivided fractional interests. These
fractional interests may be unequal in quantity or duration This form of ownership is a legal entity and is similar to
and may arise at di erent times. Each tenant in common both the corporation and the partnership. The operating
owns a share of the property, is entitled to a comparable agreement will determine how the LLC functions and is
portion of the income from the property and must bear an taxed. Like the corporation its existence is separate from its
equivalent share of expenses. Each cotenant may sell, lease owners.
or will to his/her heir that share of the property belonging to
him/her. For example: Bruce Buyer, a single man, as to an *In cases of corporate, partnership, LLC or trust owner-
undivided 3/4 interest and Penny Purchaser, a single ship - required documents may include corporate articles
woman, as to an undivided 1/4 interest, as tenants in and bylaws, partnership agreements, LLC operating
common. agreements and trust agreements and/or certi cates.
5. Registered Domestic Partners: Remember...
The Domestic Partnership Rights and Responsibilities Act How title is vested has important legal consequences.
You may wish to consult an attorney to determine the
was enacted in California in 2003 however the most signi - most advantageous form of ownership for your particular
cant portions of the act took e ect on January 1, 2005. These situation. The information contained herein is for information
newly enacted sections give registered same-sex partners as overview only and is provided by the California Land Title
well as opposite-sex partners (as long as at least one Association.
member of the couple is 62 years of age or older) many of For more information on Title Vesting, please contact any of
the same rights and responsibilities that were previously your local Chicago Title Branch O ces or visit us online at
granted only to “married” couples. www.CTIC.com
The act provides that domestic partners have the same
rights and responsibilities as married persons holding title as
community property. All possessions and property acquired
while together becomes community property (unless
interests are acquired as Sole and Separate Property) and
subject to all the rights, including survivorship rights, and
imposes all of the obligations of spouses under California
community property law.
CHICAGO LIBRARY
bene ts for holding title in this manner. On the death of an Other ways of vesting title include as:
owner, the decedent’s interest ends and the survivor owns 1. A Corporation*:
the property. For example: Bruce Buyer and Barbara Buyer,
husband and wife, as community property with right of A corporation is a legal entity, created under state law,
survivorship. consisting of one or more shareholders but regarded under
3. Joint Tenancy: law as having an existence and personality separate from
such shareholders.
A form of vesting title to property owned by two or more 2. A Partnership*:
persons, who may or may not be married or registered
domestic partners, in equal interests, subject to the right of A partnership is an association of two or more persons
survivorship in the surviving joint tenant(s). Title must have who can carry on business for pro t as co-owners, as
been acquired at the same time, by the same conveyance, governed by the Uniform Partnership Act. A partnership
and the document must expressly declare the intention to may hold title to real property in the name of the partnership.
create a joint tenancy estate. When a joint tenant dies, title 3. Trustees of a Trust*
to the property is automatically conveyed by operation of
law to the surviving joint tenant(s). Therefore, joint tenancy A Trust is an arrangement whereby legal title to property
property is not subject to disposition by will. For example: is transferred by the grantor to a person called a trustee, to
Bruce Buyer, George Buyer, as joint tenants. be held and managed by that person for the bene t of the
4. Tenancy in Common: people speci ed in the trust agreement, called the
bene ciaries.
A form of vesting title to property owned by any two or 4. Limited Liability Companies (LLC)*:
more individuals in undivided fractional interests. These
fractional interests may be unequal in quantity or duration This form of ownership is a legal entity and is similar to
and may arise at di erent times. Each tenant in common both the corporation and the partnership. The operating
owns a share of the property, is entitled to a comparable agreement will determine how the LLC functions and is
portion of the income from the property and must bear an taxed. Like the corporation its existence is separate from its
equivalent share of expenses. Each cotenant may sell, lease owners.
or will to his/her heir that share of the property belonging to
him/her. For example: Bruce Buyer, a single man, as to an *In cases of corporate, partnership, LLC or trust owner-
undivided 3/4 interest and Penny Purchaser, a single ship - required documents may include corporate articles
woman, as to an undivided 1/4 interest, as tenants in and bylaws, partnership agreements, LLC operating
common. agreements and trust agreements and/or certi cates.
5. Registered Domestic Partners: Remember...
The Domestic Partnership Rights and Responsibilities Act How title is vested has important legal consequences.
You may wish to consult an attorney to determine the
was enacted in California in 2003 however the most signi - most advantageous form of ownership for your particular
cant portions of the act took e ect on January 1, 2005. These situation. The information contained herein is for information
newly enacted sections give registered same-sex partners as overview only and is provided by the California Land Title
well as opposite-sex partners (as long as at least one Association.
member of the couple is 62 years of age or older) many of For more information on Title Vesting, please contact any of
the same rights and responsibilities that were previously your local Chicago Title Branch O ces or visit us online at
granted only to “married” couples. www.CTIC.com
The act provides that domestic partners have the same
rights and responsibilities as married persons holding title as
community property. All possessions and property acquired
while together becomes community property (unless
interests are acquired as Sole and Separate Property) and
subject to all the rights, including survivorship rights, and
imposes all of the obligations of spouses under California
community property law.
CHICAGO LIBRARY
