As California real property becomes increasingly more valuable, the question of how parties take ownership of their property has gained greater importance. The form of ownership taken – the vesting of title – determines who may sign various documents involving the property and future rights of the parties to the transaction.

These rights involve such matters as: real property taxes, income taxes, inheritance and gift taxes, transferability of title and exposure to creditor’s claims. Also, how the title is vested can have significant probate implications in the event of death.

As real estate professionals, we can identify the many ways of taking title but cannot advise a specific form of ownership, as doing so would constitute practicing law. Buyers may wish to consult legal counsel to determine the most advantageous form of ownership for their particular situation, especially with multiple owners.

Sole Ownership by an individual can be vested as A Single Man or Woman, A Married Man or Woman as his Sole or Her Sole and Separate Property, or a Registered Domestic Partner as His or Her Sole and Separate Property. In the last two cases, a title company will require the spouse or domestic partner to specifically disclaim or relinquish his or her right, title and interest in the property by deed.

Title to property owned by two or more persons may be vested in the following forms:

Community Property was a creation of the Civil Law of Rome and came to California via Mexico. In general, community property represents the earnings and accumulations of the marriage, and real property conveyed to a married person or registered domestic partner is presumed to be community property unless otherwise stated. Each owner has the right to dispose of his/her half of the property by will.

Community Property with Right of Survivorship shares many of the characteristics of community property but adds the benefit of the right of survivorship whereby upon the death of an owner, the survivor owns the property. There may also be significant tax benefits for married couples holding title in this manner.

Joint Tenancy is a form of vesting owned by two or more persons who may or may not be married, with equal interests who acquired title at the same time, subject to the right of survivorship. When a joint tenant dies, title to the property is automatically conveyed to the surviving joint tenant. Joint tenancy property is not subject to disposition by will.

Tenancy in Common is a form of ownership shared by two or more individuals with interests that may be unequal in quantity or duration and may arise at different times. Each co-tenant may sell, lease or will to an heir that share of the property they own.

A Trust is an arrangement whereby legal title to property is transferred by the grantor to a trustee, to be held and managed by that person for the benefit of the people specified in the trust agreement as beneficiaries. Trust documents are complex instruments that should always be prepared by a competent real estate attorney.

Adriana Donofrio Podley Properties Glendora 626 914-2904 adrianad@podley.com