Scottsdale Real Estate - Phoenix Real Estate
Common Ways of Holding Title
How should I take ownership of my home purchase?
Real property has become increasingly more valuable and the question of how parties can take ownership of their property has gained greater importance. There are several ways in which persons can take title to their property in Arizona. Arizona is a "Community Property" state,
Those purchasing real property should give careful consideration to the manner in which title will be held. Buyers may wish to consult legal counsel (attorney, accountant or other professional) to determine the most advantageous form of ownership for their particular situation, especially in cases of multiple owners of a single property.
Community Property
- Requires a valid marriage between two persons.
- Each spouse holds an undivided one-half interest in the estate.
- One spouse cannot partition the property by selling his or her interest.
- Requires signatures of both spouses to convey or encumber.
- Each spouse can devise (will) one-half of the community property.
- Upon death the estate of the decedent must be cleared through probate, affidavit or adjudication.
- Both halves of the community property are entitled to a stepped up tax basis as of the date of death.
Community Property with the Right of Survivorship
- Requires a valid marriage between two persons.
- Each spouse holds an undivided one-half interest in the estate.
- One spouse cannot partition the property by selling his or her interest.
- Requires signatures of both spouses to convey or encumber.
- Estate passes to the surviving spouse outside of probate.
- No court action required to clear title upon the first death.
- Both halves of the community property are entitled to a stepped up tax basis as of the date of death.
Joint Tenancy with the Right of Survivorship
- Parties need not be married; may be more than two joint tenants.
- Each joint tenant holds an equal and undivided interest in the estate, unity of interest.
- One joint tenant can partition the property by selling his or her joint interest.
- Requires signatures of all joint tenants to convey or encumber the whole.
- Estate passes to surviving joint tenants outside of probate.
- No court action required to clear title upon the death of joint tenant(s).
- Deceased tenant(s) share is entitled to a stepped up tax basis as of the date of death.
Tenancy in Common
- Parties need not be married; may be more than two tenants in common.
- Each tenant in common holds an undivided fractional interest in the estate. Can be disproportionate, e.g., 20% and 80%; 60% and 40%; 20%, 20%, 20% and 40%; etc.
- Each tenant share can be conveyed, mortgaged or devised to a third party.
- Requires signatures of all tenants to convey or encumber the whole.
- Upon death the tenant's proportionate share passes to his or her heirs by will or intestacy.
- Upon death the estate of the decedent must be cleared through probate, affidavit or adjudication.
- Each share has its own tax basis.
Sole Ownership may be described as ownership by an individual or other entitiy capable of acquiring title.
1. A Single Man/Woman: A man or woman who has not been legally married. For example: Bruce Buyer, a single man.
2. An Unmarried Man/Woman: A man or woman who was previously married and is now legally divorced. For example: Sally Seller, an unmarried woman.
3. A Married Man/Woman as His/Her Sole and Separate Property: A married man or woman who wishes to acquire title in his or her name alone.
The title company insuring title will require the spouse of the married man or woman acquiring title to specifically disclaim or relinquish his or her right, title and interest to the property. This establishes that it is the desire of both spouses that title to the property be granted to one spouse as that spouse's sole and separate property.
For additional information regarding Arizona Relocation,
please send direct e-mail request to GaryandClaudia@cox.net
or call our Toll Free Number
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