5 Common Methods of Holding Real Property Title

People can hold their properties as residential or commercial, depending on the status of the property. It is also called the property title and determines its legal status. The kind of title your property holds will impact your investment in real estate.

5 Common Methods of Holding a Real Estate Property Title

The property title determines several technical aspects, including taxation. There are several titles and methods of keeping these titles for your property. It’s crucial to learn about these methods before contacting a Chicago property management company, and that’s what we’ll discuss in this article.

1. Joint Tenancy

Joint tenancy is when two or more individuals own or hold a real estate property with equal rights. In the joint tenancy, if one of the joint members passes away, their property goes to the tenant who lives.

It falls under the survivorship doctrine and is a staple for real estate dealing in the U.S.A. Applicants that want to sign up for a joint tenancy can do this at the same time by producing a relevant deed for it with the help of a Chicago condo management company.

2. Tenancy in Common

With this property title, two or more people can hold property under their name, equally or unequally. For example, two tenants may have a 60-40 share in the property.

However, only because one tenant holds a smaller percentage doesn’t mean they are less than the other owner. Instead, both have the same occupancy rights on the property. The tenancy in common simply shows the financial ownership of each member.

3. Tenants by Entirety

Tenants by the entirety are another title option available—but only for married couples. By this option, the couple is counted as one for legal purposes. In a property title like this, when one of the spouses passes away, the other receives the property by default.

This method is a popular option for the ones who want more hassle-free property ownership. Moreover, a will or probate is no longer required, making property dealing simple.

4. Sole Ownership

Sole ownership is pretty self-explanatory because it shows in the title that only one entity is the property owner. Unmarried individuals, or those wishing to keep the properties separate from spouses, use this method for property titles.

It’s a smart way to segregate your property you’re your spouse and save on ownership clashes. In some cases, businesses may also use this approach when the business gets too complicated.

5. Community Property

Community property is the final title on this list, allowing spouses to own properties together. Each spouse has an equal property ownership in this property title, regardless of the buying party. States like California and Texas have the highest number of community properties in the U.S.

Any properties purchased while you’re married get distributed among the couple equally. However, a prenuptial agreement explaining a “no split” cause can ensure your property is not distributed against your will.

Bottom Line

Learning the property titles is a must for Condo association management companies to leverage laws in your favor. But if you still need more insight, we recommend contacting Connected Property Management for more assistance.