Common ways of holding title to real property TENANCY IN COMMON
JOINT TENANCY
Parties
Two or more persons1 (may be spouses or domestic partners2)
Division
Creation
Possession and Control
Transferability
Liens against one owner
Death of co-owner
COMMUNITY PROPERTY WITH
COMMUNITY PROPERTY
RIGHT OF SURVIVORSHIP
Two or more persons1 (may be spouses or domestic partners2)
Spouses or domestic partners
Spouses or domestic partners
Ownership can be divided into any number of interests, equal or unequal
Ownership interests must be equal
Ownership interests must be equal
Ownership interests must be equal
One or more conveyances (law presumes interests are equal if not otherwise specified)
Single conveyances (creating identical interests); vesting must specify joint tenancy
Presumption from marriage or domestic partnership or can be designated in deed
Single conveyance and spouses or domestic partners must indicate consent which can be on deed
Equal
Equal
Equal
Equal
Both spouses or domestic partners mus consent to transfer or mortgage
Both spouses or domestic partners must consent to transfer or mortgage
Each co-owner may Each co-owner may trans- transfer his/her interest fer or mortgage their interseparately but est tenancy in separately3 common results3 & 4
Unless married or domestic Co-owner's interest not partners, co-owner's inter- subject to liens of other Entire property may be est not subject to liens of debtor/owner but subject to forced sale to other debtor/owner but forced sale can occu satisfy debt of either forced sale can occur4 if prior to spouse or domestic partner co-owner's/debtor's death
Entire property subject to forced sale to satisfy debt of either spouse or domestic partner
Decedent's interest Decedent's interest passes Decedent's 1/2 interest Decedent's 1/2 interest automatically to his/her devisees or passes to surviving spouse automatically passes to surheirs by will or intestacy passes to surviving joint or domestic partner unless viving spouse or domestic tentant (“Right of otherwise devised partner due to right of Survivorship”) by will survivorship Right of Survivorship
Qualified surviorship rights; Right of survivorship; mutu-
Co-owners interests may be (avoids probate); may mutual consent required for al consent required for Possible separately transferable3 have tax disadvantages transfer; surviving spouse transfer; surviving spouse advantages/ disfor spouses or domestic partner2 may or domestic partner2 may advantages have tax advantage
have tax advantage
1. “Persons” includes a natural person as well as a validly formed corporation, limited partnership, limited liability company or general partnership. Trust property is vested in the trustee (usually a natural person or corporation. 2. For domestic partners meeting California statutory requirements, benefits are same as community property except certain tax benefits may not be available. Note: Two unrelated persons who are either (a) same sex, or (b) opposite sex if they meet age or disability requirements, may be domestic partners provided that they are not married or in a domestic partnership and comply with other statutory requirements. 3. Transfers by married persons or domestic partners may require a quitclaim deed from spouse/partner for title insurance purposes. 4. If co-owners are married or domestic partners, property may be subject to legal presumption of “community property” requiring consent of both spouses/partners to convey or encumber title notwithstanding vesting as “joint tenacy“. THIS IS PROVIDED FOR GENERAL INFORMATION ONLY. FOR SPECIFIC QUESTIONS OR FINANCIAL, TAX OR ESTATE PLANNING GUIDANCE, WE SUGGEST YOU CONTACT AN ATTORNEY OR CERTIFIED PUBLIC ACCOUNT.
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