Title Vesting

When purchasing real estate, it is essential to understand the various ways one can hold title to a property, a concept also known as title vesting. Title vesting memorializes the legal rights and obligations concerning one’s property and can significantly impact future decisions, such as selling or transferring ownership of that property. While there are different ways to vest title, here are the four common methods:

1. Sole Ownership: When there is only one owner of a property, that owner holds exclusive rights to said property, and no vesting is necessary.
   Example: A single person purchases a property without sharing interest with any other person.
2. Joint Tenancy (Right of Survivorship): A form of property ownership where two or more individuals share equal ownership and rights to a property. A key component of joint tenancy is “right of survivorship”, which means that if one owner passes away, their share of the property automatically transfers to the surviving owner(s) without going through probate (a legal process of settling a deceased person’s estate.)
   Example: Three friends, Gary, Sandeep, and Kevin buy a vacation home together as joint tenants. If Kevin dies, Gary and Sandeep each get one-half (1/2) of the property. This is because of the right of survivorship.
3. Tenancy by Entirety: This is exclusively available to married couples. Under this type of ownership, when one spouse passes away, their ownership of the property automatically transfers to the surviving spouse. For this transfer of property to occur, there must be proof that the individuals were continuously married from the time they acquired the title until the individual’s death.
   Example: Sandeep and Asmeet purchase a property as a married couple. Both spouses have an equal, undivided interest in the property, meaning neither can claim a separate portion. Upon the death of one spouse, the surviving spouse automatically inherits the deceased spouse's share of the property. Generally, creditors cannot seize the property to satisfy individual debts of one spouse.
4. Tenancy in Common (NO Right of Survivorship): This is a form of property ownership where two or more individuals share ownership, but each person has a separate and distinct interest in the property. Unlike joint tenancy, there is no “right of survivorship”, meaning when an individual passes away, their share of the property does not automatically go to the other owner(s).
   Example: Three friends, Gary, Sandeep, and Kevin buy a vacation home together as joint tenants. Any owner can sell their portion of the property without needing the consent of other co-owners. If one owner dies, their share of the property passes to their heirs according to their will, not to the other co-owners.

How can Pasricha & Patel help?

Pasricha & Patel’s real estate department has extensive experience in handling property transactions, title matters, and ownership structures. It is essential to know how to property vest or transfer title, regardless of whether it is for residential or commercial real estate. Our team is happy to assist you with any questions regarding title vesting and other real estate concerns. Please don’t hesitate to contact us to discuss your specific needs. We are eager to help!