Buyers - Taking Title

Taking title can often be a mysterious process for buyers. Often it is something discussed at the beginning of the home buying process and if no issues arise, it is not discussed again until closing. When starting to look at homes an agent will ask how you want to take title when purchasing the home. 

The most common ways to take title are as follows:

1. Sole Ownership: This one is the easiest to understand, it is when there is only one person/business or entity that will be purchasing. useful for: a single person, one business or trust taking ownership.

2. Tenants in Common: two or more people purchasing the home with equal rights. This option has rights of survivorship, meaning if one person were to pass away, the surviving owner would hold full right to title.

3. Tenancy in Common: two or more people have ownership rights. Each owner has undivided share in the property and the shares do not need to be equal but percentage of ownership between owner must equal 100%. This option does not have rights to survivorship. This means if one owner dies they may designate a beneficiary to transfer ownership of their part of the property. An owner may also sell their interest in the property to another owner at any time.

Make sure to have a conversation with your real estate agent about the different types of ways you may take title.