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Variations on How to Take Title - Advantages and
Limitations |
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Title to real property in California may be held
by individuals, either in Sole Ownership or Co-Ownership. Co-Ownership of real
property occurs when title is held by two or more persons. There are several
variations as to how title may be held in each type of ownership. The following
brief summaries reference seven of the more common examples of Sole Ownership
and Co-Ownership. |
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Sole Ownership |
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1. A Single Man/Woman: A man or woman who is not
legally married |
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Example: John Doe, A single man. |
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2. An Unmarried Man/Woman: A
man or woman, who, having been married, is legally divorced.
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Example: John Doe, an
unmarried man |
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3. A Married Man/Woman, as His/Her Sole and Separate Property:
When a married man or woman wishes to acquire title in his/her
name alone, the spouse must consent, by quitclaim deed or otherwise, to the
transfer, thereby relinquishing all right, title and interest in the property. |
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Example: John Doe, a married man, as his sole sole and
separate property. |
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Co-Ownership |
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4. Community Property: The California Civil Code
defines community property as the property acquired by husband and wife, or
either, during marriage, when not acquired as separate property of either. Real
Property conveyed to a married man or woman is presumed to be community
property, unless otherwise stated. Under community property, both spouses have
the right to dispose of one half of the community property by will, but if there
is no will. all of the property will go to the surviving spouse without
administration. If a spouse exercises his/her right to dispose of one-half, that
half is subject to administration in the estate. |
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Example: John Doe and Mary Doe, husband and wife, as
community property. |
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Example: John Doe and Mary Doe, husband and wife |
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Example: John Doe, a married man |
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5. Joint Tenancy: A joint tenancy estate is
defined in the Civil Code as follows: "A joint interest is one owned by two or
more persons in equal shares, by a title created by a single will or transfer,
when expressly declared in the will or transfer to be in a joint tenancy." A
chief characteristic of joint tenancy property is the right of survivorship.
When a joint tenant dies, title to the property immediately vests in the
surviving joint tenant (s). As a consequence, joint tenancy property is not
subject to disposition by will. |
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Example: John Doe and Mary Doe, husband and wife, as joint
tenants. |
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6. Tenancy in Common: Under tenancy in common, the
co-owners own undivided interests, but unlike joint tenancy, these interests
need not be equal in quantity or duration, and may arrive a different times.
There is no right of survivorship; each tenant owns an interest which, on
his/her death, vests in his/her heirs or devisees. |
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Example: John Doe, a single man, as to an undivided 3/4ths
interest, and George Smith, a single man, as to an undivided 1/4th interest, as
tenants in common. |
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7. Trust: Title to real property in California may
be held in a title holding trust. The trust holds legal and equitable title to
the real estate. The trustee holds title for the benefit of the trustor/beneficiary,
who retains all of the management rights and responsibilities. |
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The proceeding summaries are a few of the more common ways to
take title to real property in California and are provided for
informational purposes only. For more comprehensive understanding of the
legal/tax consequences, appropriate consultation is recommended. There may be
significant tax/legal consequences as to the manner in which title is held. We
strongly suggest contacting an attorney and/or CPA for specific advise on how
you should actually vest your title. (There may be charges associated with these
services.) |
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