One of the many decisions you will make when purchasing a home in Northern Utah with another person is how each should hold title with the property. It’s not at all like buying up property in Monopoly.
Is there a difference in HOW you OWN your home?
Of course, if only one person who purchases a home, then it is of course, Sole Ownership. All rights would be with the sole owner and that owner could determine what happens to the property, especially when they die.
However, a married person may still hold title by themselves, without their spouse, like a single person but may have to go through some steps to acquire the property without their spouse. Best to check with a real estate attorney, if you choose to go this route.
Tenants by Entirety
Tenants by Entirety, is “a type of concurrent estate in real property held by a Husband and wife whereby each owns the undivided whole of the property, coupled with the Right of Survivorship, so thatupon the death of one, the survivor is entitled to the decedent’s share.” *Free Dictionary.com
The advantage of is a creditor of one of the married couples may not encumber the home owned by both with that one’s personal debt. Only debt owned by both may encumber or attach itself to the home.
Tenants in Common
Tenants in Common is when two or more people hold equal title in a property. Each ownership can be done with as that holder chooses. It may be sold, used as collateral, encumbered or transferred by how that holder chooses. If the other holders die, their portion of the property is determined by their wills and will not automatically be transferred to the other owners. This will be held in probate of each owner. However, all liens must be removed upon transfer.
Joint Tenancy with Rights of Survivorship
Joint tenancy with rights of survivorship is when two or more people hold title to real estate jointly, with equal rights to enjoy the property while still alive. In the event of death of either party, the ownership rights pass on to the survivors. Joint Tenancy is taken at the time of transfer to both parties.
Any personal debt may be attached to the property, unlike Tenants by Entirety.
It is always best to consult an attorney before taking title to a property. You want to make sure that ownership is best for your situation and many times after the purchase, title may not be changed.
If you have more questions about this or anything else real estate related, be sure to give us a call! We’re here to help you not only find the best home for your needs and wishes, but to make sure your ownership goes without a hitch! Our team of local experts is ready to guide you through the home-buying process. We are committed to fast, professional and courteous service to help you understand and feel at ease throughout the home buying process. Our trained and licensed agents specialize in the Northern Utah area real estate market and are prepared to find the right home and get the best price.