When purchasing a property, one of the most important decisions you’ll make is how you want the property’s title to be held. This decision is known as deed vesting, and it determines who legally owns the property and how it will be transferred in the future. There are several different types of deed vesting, each with its own advantages and disadvantages. In this article, we’ll explore the most common types of deed vesting.
- Sole Ownership
Sole ownership is the simplest type of deed vesting, where the property is owned by one person. This is a common option for single individuals who are the sole owners of a property. When the owner passes away, the property will be transferred to their heirs through their will or state law.
- Joint Tenancy
Joint tenancy is a type of deed vesting where the property is owned by two or more people. In this type of ownership, each person has an equal share of the property. When one owner passes away, their share of the property is automatically transferred to the surviving owners. This process is known as the right of survivorship. Joint tenancy is a popular choice for married couples or business partners.
- Tenancy in Common
Tenancy in common is another type of deed vesting where the property is owned by two or more people, but each person has a separate and distinct share in the property. Unlike joint tenancy, there is no right of survivorship. When one owner passes away, their share of the property is transferred to their heirs, not the other owners. Tenancy in common is a common choice for friends or family members who want to own a property together.
- Community Property
Community property is a type of deed vesting that is recognized in a few states. In this type of ownership, property acquired during marriage is owned equally by both spouses. When one spouse passes away, their share of the property is transferred to the surviving spouse. Community property is a popular choice for married couples who want equal ownership of property acquired during their marriage.
- Living Trust
A living trust is a legal document that allows you to transfer your property to a trust while you’re still alive. This type of deed vesting can help avoid probate, which is the legal process of distributing a person’s assets after they pass away. When you pass away, the property is transferred to the beneficiaries of the trust without going through probate. A living trust is a common choice for people who want to avoid probate and simplify the process of transferring their assets to their heirs.
In conclusion, choosing the right type of deed vesting is an important decision when purchasing a property. Consider your situation carefully and consult with a real estate attorney or financial advisor to determine which type of vesting is best for you. By selecting the right type of deed vesting, you can ensure that your property is transferred smoothly and according to your wishes. Contact us today to review your deed preparation!
