Estimated reading time: 2 minutes
Introduction
There are many common ways to hold title. Determining how to take title to your property is a major decision with legal ramifications that may impact you and/or your heirs. State law determines the methods of owning real estate. Consult your attorney or accountant to determine the best for of ownership for your specific situation.
Different Ways to Hold Title
Sole Ownership
- Ownership by an individual or entity legally capable of acquiring title.
Community Property
- A common form of ownership where spouses or domestic partners own equal interest.
Tenancy by the Entirety
- Ownership by married persons where each owns the entire estate, with the survivor taking the whole upon the other’s death.
Tenancy in Common
- An estate or interest in land held by two or more persons, each having equal rights of possession and enjoyment, but without any right of succession by survivorship between the owners.
Corporation
- The legal entity is a company owned by shareholders but regarded under the law as having an existence separate from those shareholders.
Life Estate
- A form of title as a grant or reservation of the right of use, occupancy and ownership for the life of an individual.
Trust
- Legal title to a property is transferred by a grantor to a person called a trustee, to be held and managed by that person for the benefit of the people specified in the trust agreement, called the beneficiaries.
Joint Tenancy with Right of Survivorship
- An undivided interest in a property, taken by two or more joint tenants. The interests must be equal, accruing under the same conveyance, and beginning at the same time. Upon the death of a joint tenant, the interest passes to the surviving joint tenants, rather than to the heirs of the deceased.
Conclusion
As you can see, there many common ways to hold title. Whether you are an individual or corporation, choosing the correct way to hold title is an important decision. As advised before, please consult legal counsel first.
Contact Landmark Abstract for your real estate settlement by calling 717-293-9760 to get the process started!
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