Ways to hold title on your home

Ways To Hold Title

Title is the evidence that you own your home. How you "hold title" refers to the various forms of ownership, each with different rights and obligations. Here are brief descriptions of the customary ways to hold title.

• Sole Ownership  You alone own all interest in the home. If you're married, the spouse is usually asked to formally give up any ownership claim by signing a "quit claim deed."
• Joint Tenancy  Two or more people hold title to the home together. Each owns the home as a whole and has a right to equal use of it. With rights of survivorship, when one joint tenant dies, that person's interest automatically transfers to the remaining living co-tenants, rather than to heirs named in a will.
• Tenancy by the Entirety  A few states have this special form of joint tenancy for husbands and wives. They hold title together, neither can take independent action to create an ownership claim or lien on the home, and upon the death of either, the other gets full title to the property.
• Tenancy in Common  Each of the owners can have either equal or unequal interests. You may own 40% of your home while 60% is owned by parents or another relative. Each owner can use the entire property. Owners can sell their shares, give them away, or will them to someone. This can cause problems, so people often write agreements limiting how property transfers can be done.
• Community Property  Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin have community property laws for real estate owned by a married couple. Each spouse has a half interest in the property with certain rights. Each state has its own laws, so be sure to check the provisions if you're married and purchasing in one of these nine states.

How you hold title has serious legal implications. So consult with an attorney for all the details on your current and future rights for each way to hold title. Then choose which type of ownership is best for you.

We're happy to help with this or any other home or financing questions. Just call us or reply to this email...and best wishes in this and all your endeavors!