Good morning friends,
This is the first in a series of posts to help real estate and mortgage professionals better understand the title process and its importance in the completing of a transaction. I want to thank, my friend, Richard Smith ~ see Richard's Real Estate Thoughts for suggesting this series. He is a true professional.
Why is this important? When plunking hundreds upon thousands of dollars for real estate, knowing how to own the property, particularly in the unfortunate event something happens to one of the owners has a tremendous bearing on how the property is passed from one individual (s) to the another. That may seem elementary, but if it is not executed properly, it can be a very complicated mess to try to remedy. So, before closing the purchase transfer of property, make sure to consult with your title agent /attorney so that the vesting is worded properly.
DON'T DO THIS!
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 simply ownership by one individual or person. For example:
Jack, a single man or Jill, an unmarried woman
..........or Mike, 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. For example: the words in a deed of a joint tenancy may read as follows:
Mike and Susan, husband and wife, as joint tenants with rights of survivorship.
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. For example: the words in a deed of a tenancy in common may read as follos:
John and Sally as 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. For example: the words in a deed when taking title as community property may read as follows:
Mike and Susan, husband and wife, as community property
There are other methods of vesting title to ownership to a partnership, a corporation, or a trust. Having a good relationship with your title agent company and /or real estate attorney are critical to a smooth and transparent real esate transaction experience.
Happy Sale and transfer!
To your success
Until next time my friends,
Your Title Source!
LEADING EDGE TITLE SOLUTIONS
Matching experience with technology to give
you the edge to be a mortgage industry leader
Bo Hussung
Vice President of Sales
phone ~ 615-438-7300 fax ~ 678-261-1594
email me ~ bhussung@cogentca.com
web ~ www.cogentca.com
Comments(8)