  In community property states, like California, community property titles bestow equal ownership to both parties. An individual may hold title in his or her name alone, whether married or unmarried, e.g., Jane Doe, an individual. Joint Tenancy is known as the poor persons will. The reader should consult with an attorney about any specific legal issues prior to embarking on any course of action or inaction involving legal matters. The author makes no claims, promises or guarantees about the accuracy, completeness, or adequacy of the contents of this blog and expressly disclaims liability for any errors and omissions. One of the most often asked questions in the real estate world is âHow should I take title?â. Some states allow married couples to own a property via this title method, which gives both spouses full ownership of the property. Parents and their adult children also often hold title this way, as do unmarried couples. Why House Title Is Important . There are numerous considerations for how to take title including taxes, estate planning, avoiding probate and creditor protection. What is Title? Those options are as follows: 1. Even though Arizona is a community property state, it is possible for a married couple to acquire title as Joint Tenants. This blog contains content and opinions concerning the law generally, and is not intended to constitute legal advice or to create any attorneyâclient relationship with the reader. So we need another lesson. The same rules will apply for same sex married couples. In California, if a married man or woman wants to acquire a title in their name alone, the spouse or partner must indicate their legal consent. The language in the Deed to create a JTWROS needs to include specific language in the granting portion requiring vesting to be as JTWROS. Married couples might also hold title in Joint Tenancy. Each party has a full ownership interest in the property. Why House Title Is Important . I feel so strongly about married couples holding their jointly owned property as Community Property with Right of Survivorship, I suggest you consider deeding to yourselves now, so on death you receive the tax benefits of holding title as community property and still avoid probate. Your title company or attorney can advise you of the best way to hold title to suit your individual circumstances. Suppose your tenant or his guest slips and falls on the porch of your duplex, and the claim exceeds the amount of liability insurance and any umbrella coverage which you have on the property. Truckee Office Each spouse may provide by will for the disposition of his or her community interest in the community real property. In a joint tenancy the couple will hold title to their real estate jointly with equal undivided interests and withrights of survivorship. you and me, or by legal persons i.e. Two or more people, including spouses, may hold title to their jointly owned real estate as joint tenants. Each tenant in common holds an undivided fractional interest in the estate. Fortunately, the couple discovered this stipulation before closing, and took title instead as “tenants in common.” There are six common ways to hold title, and the first three are reserved exclusively for married couples. This form of a title is highly beneficial to married couples, but to what degree depends on if ⦠There is a tax advantageâa full step-up in basisâwhich is beneficial for the surviving spouse. Community Property– Only married people can hold title as community property. One half of a married couple can also take sole ownership title. If you own a parcel of rental property, you should consider a separate limited liability company (or perhaps an S corporation) to hold title to that parcel. I would add âfor a change,â but that goes without saying.   However, the application depends on the state in which you live. The spouse has a judgment from another party. How you hold title over your real estate can affect the outcome of the sale of the property. Only a married couple may hold title as community property. Each may will their one-half of the community property to another person on their death, but more often than not, married couples do not, so their half of the community property transfers on death to their surviving spouse. 08. Each owner has a distinct and proportionate interest without the right of survivorship. Assuming there is no loan on the car, the title can be transferred through the Motor Vehicle Department for approximately $150. This will be discussed below. While the advantage of joint tenancy is avoidance of probate, the disadvantage is there is only a partial step-up in basis for the surviving spouse, so there is a tax disadvantage for married couples to hold title as joint tenants. The choices were: community property, joint tenants with right of survivorship ("JTWROS") and; tenants in common. Each method of taking title has certain significant legal and tax consequences; therefore, you are encouraged to obtain advice from an attorney or other qualified professional. In Arizona, married couples must reject community property and specifically take title as tenants in common. Buyer beware; they are not similar. Ph: (530) 583-7268 Evidence of the intent of a married couple to hold title to real property as joint tenants with right of survivorship must be in writing so as to avoid the presumption of community property. How You Hold Title to Real Property May Create a Real Life Problem. In Arizona, married couples must reject community property and specifically take title as tenants in common. For married couples the rule of thumb is for each spouse to individually own the car they drive. It was a valuable property and she was positive that she and her late husband had owned it jointly with the right of survivorship. Let�s explore the different ways one can take title in Arizona. Their undivided interest need not be equal but in the aggregate cannot exceed 100% of the ownership ⦠4. Need legal help? The ramifications of that decision might not be apparent for years. Contact Porter Simon for a consultation today. CO-OWNERSHIP. In order to do this, the individuals must accept this vesting as it is, contrary to the presumption that the property is community. Sole ownership is therefore common for those who are unmarried or legally divorced, although a married individual can take title in this way if they wish to have only their name on title. If a married couple acquires title as joint tenants with the right of survivorship, they must specifically accept the joint tenancy to avoid the presumption of community property. If you hold title as community property or joint tenants, ask whether as a married couple it would be prudent to prepare and record a deed to yourselves as Community Property with Right of Survivorship. Only persons married to each other may take title as community property with the right of survivorship. Perhaps the most common way for unmarried couples to take title to real property is as âtenants in common.â Unlike a joint tenancy, a tenant in common has no automatic right to inherit the property when the other partner dies. Hereâs a true horror story. 1. Information about Phoenix Real Estate and Related Topics, Phoenix Real Estate Lawyers Blog site navigation, Big 5 Settlement Provides Relief For Some Arizona Homeowners, Changing Identification Documents After a Gender Reassignment. Whether you’re single, coupled up or married, deciding how to hold title is one of the most important decisions home buyers make. The only unity involve is possession. When taking the title as a joint tenancy, individuals need not be married. This is most often used by persons who are single, but a married person can also choose sole ownership if his or her spouse is willing to sign a document renouncing any rights to the property. Property acquired by a husband and wife is presumed to be community property unless legally specified otherwise. AS AN INDIVIDUAL MAN/WOMAN. Ways for a Person to Hold the Title to Real Property. Parents and their adult children also often hold title this way, as do unmarried couples. To avoid or circumvent this result for a married couple, the deed must say, “as Joint Tenants in Common.”Sometime we add, “and not as joint tenants with rights of survivorship.” So, those are the three options available for two people to hold title, or own, real estate together. For example, the best way to hold title for a married couple is often tenancy by the entireties. Let’s look at some common ways to hold title. Regus Executive Suites Usually, the spouse is asked to sign a quitclaim deed that gives up any ownership claim. Flying Solo. A married couple seeking to hold title to real property located in Arizona in a form other than community property may do so by renouncing the community property form and specifically accepting another form of co-tenancy. 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