11 Common Ways to Hold Title
How To Hold Title
Title to real property may be held by a single individual or
entity, known as Sole and/or Separate Ownership, or by two
or more individuals and/or entities known as Co-Ownership.
Following is a brief list of common ways to hold title
(Ownership and tenure of title varies by state - Remember, it
is important to distinguish the proper way to hold title to your
property. You may want to consult with your Attorney or Tax
Advisor for what form suits your particular circumstance and
needs).
Sole and/or Separate Ownership
Where an individual or entity is the sole and or separate
owner of the realty.
1. A Single Individual
A single individual who has not been legally married or
registered as a Domestic Partner.
2. An Unmarried Man or Unmarried Woman
A man or woman who was previously married and is now
legally divorced.
3. A Married Man or Married Woman, or Registered
Domestic Partner as his/her Sole and Separate Property
A married man or woman who is either married or a Registered
Domestic Partner who will hold title without a spouse
or Registered Domestic Partner (The title company insuring
title may specifically require the excluded spouse or Registered
Domestic Partner to relinquish his or her right, title and
interest to the realty by recorded quitclaim deed or other
recorded instrument).
Co-Ownership
Where two or more individuals or entities are the owners of
the realty.
4. Community Property
A form of Co-Ownership by a legally married husband and
wife.
5. Community Property with Rights of Survivorship
A form of Co-Ownership by a legally married husband and
wife which includes the benefits of community property and
that of joint tenancy.
6. JointTenancy
A form of Co-Ownership by two or more individuals (none of
which can be a Corporation, Partnership, Limited Liability
Company or Trustees of a Trust) held in equal shares, by a title
created by a single transfer, when expressly declared to be a
joint tenancy. On the death of one Co-Tenant the survivor or
survivors take no new title but hold the entire estate under the
original transfer, if the joint tenancy has not been legally broken.
7. Tenancy in Common
A form of Co-Ownership with two or more individuals or entities.
The interest of each individual or entity may or may not be
stated and may not be equal. A Tenant in Common has the
right to deal with its interest as it sees fit - sell, hypothecate,
lease, gift, etc.
Other Forms of Ownership
Entities created under state law, such as:
8. Corporation
An artificial entity created under the authority of the laws of a
state usually regarded separate from its shareholders.
9. Partnership
An artificial entity created under the authority of the laws of a
state as an association of two or more individuals or entities to
carry on, as co-owners, a business for profit.
10. Limited Liability Companies (L.L.C.)
An artificial entity created under the authority of the laws of a
state and can be considered a hybrid of a corporation and
partnership.
11. Trust
A confidence in one person to hold and administer for the
benefit of another. The legal title to realty is held by the Trustee
who manages the realty for the benefit of the Beneficiary
pursuant to the terms and conditions of the Trust Agreement.
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