HOLDING TITLE TO REAL PROPERTY |
"A COMPARISON OF THREE DIFFERENT METHODS" |
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| COMMUNITY PROPERTY | JOINT TENANCY | TENANCY IN COMMON | PARTIES | Only husband and wife | Any number of persons (Can be husband & wife) | Any number of persons (Can be husband & wife) | CONVEYANCE | Both co-owners must join in conveyance of real property. Separate interests cannot be conveyed. | Conveyance by one co-owner without the others breaks the joint tenancy. | Each co-owner's interest may be exchanged or sold separately by each owner. | CREDITOR'S RIGHTS | Co-owner's interest cannot be seized and sold separately. The whole property may be sold to satisfy debts of either husband or wife, depending on the debt. | Co-owner's interest may be sold on execution sale to satisfy creditor. Joint tenancy is broken, creditor becomes tenant in common. | Co-owner's interest may be sold on execution sale to sat-isfy the creditor. Creditor becomes tenant in common. | DEATH | On co-owner's death, 1/2 goes to survivor in severalty. Up to 1/2 goes by will or succession to others. | On co-owner's death, the interest ends and cannot be willed. Survivor(s) own(s) the property by survivorship. | On co-owner's death, the interest passes by will to the devisee or heirs. No survivorship rights. | DIVISION | Ownership interests are equal. | Ownership interests cannot be divided without breaking the joint tenancy. | Ownership can be divided into any number of interests, equal or unequal. | TITLE | Title is in the "community" (Similar to title being in a partnership.) | There is only one title to the whole property. | Each co-owner has a separate legal title to their undivided interest which can be exchanged or sold. |
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This information is provided for educational purposes only. It should not be construed as tax and/or legal advice. Individuals should consult their personal tax and legal advisors regarding the specific circumstances of their individual exchanges.
For more information, please call (877) 646-1031 or email me at LisaL@apiexchange.com or national headquarters (800) 282-1031 or http://www.apiexchange.com/.
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