The different ways to hold title to real property

When purchasing real property, there are various way one can obtain title to that property. Probably the most important aspect of each type of tenancy is whether or not the right of survivorship exists. If it does exist, then the title to the property automatically passes to the other party(s) if someone on title passes away. That means that the remaining title holders need not do anything - they will obtain title automatically without going through court or other legal proceedings. 

If you are a married couple, you can take title as Tenants-by-the-entirety which has the right of survivorship. So if one spouse passes, the other will automatically become 100% title owner upon their death. While both live, there is no separation of ownership in terms of percentages. You would both own the land equally, and the property cannot be sold or transferred without the consent of the other spouse. 

If you are unmarried, you can take title as Joint Tenants or as Tenants-in-Common.  Joint tenancy has the right to survivorship and is very much like Tenants-by-the-entirety in that there is no separation of ownership. Every joint tenant owns the property equally and fully, and the property cannot be sold or transferred without the consent of the others. If there is an attempt to transfer ownership without everyone's consent, then the joint tenancy is broken and all title owners then become tenants-in-common. And as is with tenants-by-the-entirety, when one joint tenant passes away, title automatically passes to the remaining joint tenants. The only caveat with Joint Tenancy (as opposed to Tenants-in-Common) is that all the title owners who wish to hold title as joint tenants must obtain title at the very same time (i.e. when it is purchased, for example). Tenants-in-Common do not have the right of survivorship and can be divided up into very specific percentages amongst the title owners. When one of the tenants-in-common passes away, their interest does not pass to the other title owners, but passes to that person's heirs. 

The right of survivorship allows one to avoid probate proceedings (the court proceedings required when one dies without a valid will). So even without a will, title to real property can be passed on to your heirs without putting them through the lengthy and costly aspects of probate legal proceedings. You would just need to add them to the deed of the property, which often can be a very simple process. 

If you have any questions about the different tenancies, or have the need to add or remove someone from title, then please feel free to message me for further information. 

Have a great weekend everyone!