How Should You Take Title?

What does it mean to "take title" and which option is best for me?

When purchasing real estate with another individual, you can choose how you want to “take title” to the property. How you take title to your new property is important because it will determine your legal interest in the property and also will determine what will happen to your interest in the property after you die. There are four main options you should be familiar with:

1. Joint Tenants Without Survivorship

  • Joint Tenants are co-owners where each owner has equal interest in the property, but all owners have a right to possess the whole of the property
  • If there is a judgment against one of the owners, it may be attached to the property
  • Because there is no survivorship, when one owner dies, his/her share of the property passes to his/her heirs or devisees
 

2. Joint Tenants With Survivorship

  • This is the same as Joint Tenancy Without Survivorship, except there is survivorship, which means if one owner dies, his/her share of the property passes to the surviving co-owner(s) of the property instead of to his/her heirs or devisees
 

3. Tenants by the Entirety

  • Tenants by the Entirety are very similar to Joint Tenants With Survivorship, but these co-owners must be married
  • Tenants by the Entirety are spouses who both own 100% of the property
  • If there is a judgment against one of the spouses, it will not attach unless the tenancy is destroyed (by divorce or death) – exception: bankruptcy and federal tax liens may still attach
  • When one spouse dies, his/her share of the property passes to the surviving spouse
 
 

4. Tenants in Common

  • Tenants in Common are co-owners where each owner has a distinct and separate interest in the property, but all owners have a right to possess the whole of the property
  • There will be a presumption that each co-owner has an equal interest in the property unless there is specific language in the deed stating otherwise
  • If there is a judgment against one of the owners, it may be attached to the property
  • When one owner dies, his/her share of the property passes to his/her heirs or devisees
 
If you have any questions or concerns about which option is best for your situation, you and any other co-owner(s) should consult your personal attorney.