Taking Title- What does it mean and how to decide about title when buying my Palm Springs, CA home.
Every state has differing laws to be sure but know this: How you take title of your home is crucial. “Taking Title” is the term used for home ownership e.g. the names listed on the deed are the legal owners of the property. If you are single, then your choice is easier because in most cases you will take title as the sole owner. However, if you are married or buying the home with a partner or others, your choices multiply. Each option has certain legal, ownership, and tax advantages and disadvantages so be informed.
A sole owner or single person owns 100 per cent of the property and is the only name listed on the title/deed.
Joint tenancy provides two or more people equal undivided interest in the property with rights of survivorship. All joint tenants must agree to a sale and sign the deed to sell the home and is a common choice for married couples because when one joint tenant is deceased, his/her share transfers to the survivor regardless of what is stated in the deceased spouse’s will. Joint tenancy may prevent the home from entering probate proceedings in the event of death and joint tenancy is not limited to married couples. Two or more people must co-own the property.
A few states like California allow you to take title under community property and this form of vesting is available only to married couples. Community property laws generally presume each spouse owns a 50 per cent interest in all property acquired during the marriage. It differs from joint tenancy because the property does not automatically pass to the surviving spouse upon death. Community property can be willed to whomever you wish.
Tenancy in Common
Unrelated partners are able to choose Tenancy in Common. Each partner owns a portion of the property and can be varying degrees of interest. Unless otherwise stated, each partner has the right to sell his or her interests in any way at any time without consent of the other partners. Unlike joint tenancy, when a partner dies, that portion of the ownership becomes part of the deceased partner’s estate and is subject to the provisions of his or her will.
Serious consideration should be given to how you take title of your home. Unexpected situations can arise and you may want to be prepared to handle them beforehand. Consult an expert if you are unsure- your Realtor can not advise you about this.
Your final agreement should stipulate each partners’ rights and obligations such as:
- how to buy-out a co-owner if all parties do not wish to sell
- how to distribute maintenance and repair costs among the parties with an unequal share in the property
- how to resolve disputes regarding the property like painting, landscaping, etc.,
- What actions are to be taken if a co-owner does not contribute his/her share of the mortgage payments, taxes, insurance, and other costs.
As with any agreement about a purchase involving more than one person, it should be drafted or reviewed by a legal professional.
Disclaimer: we are not lawyers and can not advise you what to do. This article is only intended to make you aware that choices may be necessary and if you are unsure of how to proceed, then contact a professional for advice.
Information About Buying or Selling Palm Springs Area Real Estate
Buying or Selling in today’s real estate market is a challenge and a process that is easily accomplished with the help of a Real Estate professional. You will need an expert who has lived in the desert and knows the lifestyle and the unique housing market.
The market in the Greater Palm Springs Area is alive and the values are exceptional for those who are looking for an ideal investment or a vacation/retirement property. We have many choices for every need, budget and amenity list.
Is to be your primary residence? We have what it takes to get you settled into a great family home in the neighborhood of your choice.
Selling your home in the Greater Palm Springs Area? I will make the experience easy, friendly and professional. Our mission is to provide outstanding service while utilizing the best practices and Internet technology available.
If you are plan to rent your new home, we have the staff partners who will assist with any project or property management while you are away from the property.
For more information on how I can best serve your Greater Palm Springs area needs, please fill out the online contact form give us a call at 760-413-2871.
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Ron is a Greater Palm Springs Area Realtor® specializing in Palm Springs vacation homes, investment properties in Palm Springs and primary single-family Palm Springs Homes for Sale. He has the long term knowledge necessary to make the buying and selling of Greater Palm Springs Area real estate a smooth enjoyable process.
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