Common Ways of Taking Title When Buying a Home

Common Ways of Taking Title When Buying a Home*

There are many ways to take title on property in California. While you should consult with an attorney, our helpful chart gives some of the similarities and differences of the various ways of holding title including, tenancy in common, joint tenancy, community property, and communtiy property with right of survivorship. There are other ways of holding title as well, but our chart should help explain the basics. If you are considering buying real estate or a home in Southern California’s South Bay, we can help. Contact us today

Purchaser will become a tenant in common with the other property co-owners.Purchase will become a tenant in common with the other co-owners.Purchaser can acquire title from the community with written consent or joinder of both spouses.Purchaser can acquire title from the community with written consent or joinder of both spouses.

	Tenancy in Common	Joint Tenancy	Community Property	Community Property with Right of Survivorship
WHO?	Any number of persons (can be husband and wife).	Any number of persons (can be husband and wife).	Only husband and wife.	Only husband and wife.
DIVISION	Ownership can be divided into any number of interests, equal or unequal.	Owner interests must be equal.	Ownership and managerial interests are equal.	Ownership and managerial interests are equal.
TITLE	Each co-owner has a separate legal title to his or her undivided interest.	There must be unity of title and time. (created in one document)	Title is in the “community.”  Each interest is separate but management is unified.	Title is in the “community.”  Each interest is separate but management is unified.  Title must expressly state community property with right to survivorship.
POSSESSION	Equal rights of possession.	Equal rights of possession.	Both co-owners have equal management and control.	Both co-owners have equal management and control.
CONVEYANCE	Each co-owner’s interest may be conveyed separately by its individual owner.	Conveyance by one co-owner without the others will terminate that individual’s joint tenancy.	Real property requires written consent of other spouse, and separate interest cannot be conveyed except upon death.	Real property requires written consent of other spouse, and separate interest cannot be conveyed except upon death.
PURCHASER’S STATUS	Purchaser will become a tenant in common with the other property co-owners.	Purchase will become a tenant in common with the other co-owners.	Purchaser can acquire title from the community with written consent or joinder of both spouses.	Purchaser can acquire title from the community with written consent or joinder of both spouses.
DEATH	On co-owner’s death, his or her interest passes by will to that person’s devisees or heirs.  No survivorship right.	On co-owner’s death, his or her interest ends and cannot be disposed of by will.  Survivor(s) own(s) the property.  An affidavit of death of joint tenant establishes death.	Upon death of one spouse, 50% belongs to surviving spouse, 50% goes by will to descendant’s devisees or by succession to surviving spouse.	Upon death of one spouse, his or her interest ends and cannot be disposed by will.   Survivor owns the property 100%.  An affidavit of death (community property with right of survivorship) establishes death of a spouse.
SUCCESSOR’S STATUS	Devisees or heirs become tenants in common.	Last survivor owns property 100%	If passing by will, tenancy in common between devisees and survivor results.	Purchaser can only acquire whole title of community; cannot acquire a part of it.
CREDITOR’S RIGHTS	Co-owner’s interest may be sold on execution sale to satisfy his or her creditor.  The creditor becomes a tenant in common.	Co-owner’s interest may be sold on execution sale to satisfy creditor.  Joint tenancy is broken; creditor becomes tenant in common	Property of community is liable for contracts of either spouse which were made after marriage and prior to or after January 1, 1975.  Co-owner’s interest cannot be sold separately; whole property may be sold on execution to satisfy creditor.	Property of community is liable for contracts of either spouse which were made after marriage and prior to or after January 1, 1975.  Co-owner’s interest cannot be sold separately; whole property may be sold on execution to satisfy creditor.
PRESUMPTION	Favored in doubtful cases except husband and wife case.	Must be expressly stated.  Not favored.	The legal presumption is that property which has been acquired during the course of the marriage is community property.	The code reads that deeds must state “community property with the right of survivorship.”

*We are not attorney’s nor certified public accountants and cannot provide legal or tax advice. The information above is deemed reliable but not guaranteed and has been provided by a title insurance company and is for reference only. Please contact an attorney or CPA for information and advice.