Holding Title

Before you reach the closing day, you will want to decide how you will "hold the title" to the property. This decision has legal, tax, and estate planning ramifications. Therefore, it may be prudent to consult an attorney or certified public accountant (CPA).

The following information is supplied for informational purposes and should not be relied upon as legal definitions.

Buying Alone

  • Sole Ownership
    • A single individual who has not been legally married.
    • An unmarried individual who was married and is now legally divorced.
    • A married individual who wishes to acquire title in their name alone. At the time of closing, the buyer's spouse will be required to expressly disclaim or relinquish their right, title, and interest to the property.



  • Living Trust
    A living trust is created while an individual is alive and gives the individual control of their estate distribution. The personal transfers ownership of their property and assets into the trust.


Buying with Others


  • Tenancy in Common
    Enables each partner in the property to sell, lease, or will to the heirs that share of the property belonging to them.
    • Who can take the title? Any number of individuals.
    • Ownership Division: Any number of interests, equal or unequal.
    • Who holds the title? Each co-owner has a separate legal title to his undivided interest.
    • Possession: Equal right of possession.



  • Joint Tenancy
    Property owned by multiple individuals where if one of the owners dies, the remaining owners automatically acquire the deceased owner's share.
    • Who can take the title? Any number of individuals.
    • Ownership Division: Interests cannot be divided.
    • Who holds the title? There is only one title to the whole property.
    • Possession: Equal right of possession.



  • Community Property
    Property is owned equally between a husband and wife. Each must sign all agreements and documents of transfer.
    • Who can take the title? Only a husband and wife.
    • Ownership Division: Interests are equal.
    • Who holds the title? Similar to the title being in a partnership, the title is held in "community."
    • Possession: Equal right of possession.


Additional Ways to Hold Title


  • Corporation
    A corporation is a legal entity, created under state law, consisting of one or more shareholders but regarded under law as having essentially the same as those of an individual. The entity has continuous existence until it is dissolved according to legal procedures. Land owned by a corporation cannot be attached for personal debts or judgments rendered against its shareholders.



  • A Partnership
    A partnership is an association of two or more persons who can carry on business for profit. A partnership may hold title to real property in the name of the partnership with partners having an equal or an unequal interest in the property.



  • A Trust
    A trust is an arrangement whereby legal title to property is transferred by the grantor (or trustor) to a person called a trustee, to be held and managed by that person for the benefit of the people specified in the trust agreement called beneficiaries.