Common Ways to Hold Title
Sole Ownership by Person or Entity
A Single Man/ Woman
An individual who has never been and is not legally married.
Example: Jane Doe, a single woman.
An Unmarried Man/ Woman
An individual, who having been married at one time is now legally divorced, or an individual, having been in a registered domestic partnership that has been legally dissolved.
Example: Jane Doe, an unmarried woman.
A Married Man/ Woman or Registered Domestic Partner as their Sole and Separate Property
When a married person or registered domestic partner wants to hold title in his or her name alone. The spouse or registered domestic partner must generally consent to this by executing and recording a Quit Claim Deed.
Example: Jane Doe, a married woman as her sole and separate property or Jane Doe, a registered domestic partner as her sole and separate property.
A Legal Entity
An entity such as a general partnership, limited partnership, limited liability company, corporation, or other such legal entity.
Example: JD Management Corporation, a California corporation.
Co-Ownership by Person or Entity
Joint Tenancy
Joint Tenancy is defined in the CA. Civil Code as a joint interest owned by two or more persons in equal shares. The primary benefit of joint tenancy is the right of survivorship. Title to the real estate will immediately vest in the surviving joint tenant upon the death of a joint tenant without the need to go through probate.
Example: John Doe and Jane Doe, husband and wife as joint tenants. OR John Doe, a single man and Jane Doesn't’t a single woman, as joint tenants.
Community Property
The CA. Civil Code defines community property as property purchased either by a husband and wife (or registered domestic partners) together or by a husband or wife (or registered domestic partners) individually. Real estate acquired and held by a married person is deemed to be community property of the husband and wife unless otherwise stated.
Example: John Doe and Jane Doe, husband and wife as community property.
Community Property with Rights of Survivorship
Community property of a husband and wife (or registered domestic partners) when expressly declared in the transfer document to be community property with rights of survivorship, shall, upon the death of one of the spouses (or registered domestic partners), pass to the survivor without going through probate.
Example: John Doe and Jane Doe, husband and wife as community property with Rights of Survivorship.
Tenants-In-Common
Individuals or entities can acquire an undivided percentage interest in a specific real property with each tenant-in-common owner holding a different percentage ownership. There is no right of survivorship, and a tenant-in-common interest will not by-pass probate.
Example: Mary Jane Smith, a single woman, as to an undivided 25% interest,
as tenants-in-common.
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.
Example: Mary Jane Smith, Trustee of the Mary Jane Smith Family Trust dtd 2/2/02
Important Please Read:
The above is a summary of some of the more common ways to acquire and hold of real estate in California.
It is provided for informational purposes only and should not be relied upon for legal, financial or tax advice.
How title is vested has important legal consequences. You should consult an attorney to determine the most advantageous form of ownership for your particular situation.