There are many things on your mind when you’re in the process of buying a house. But for most homebuyers, deciding how to take title on their new house is usually not at the top of the list.
However, this is a very important detail when buyers are purchasing. Learn more about the common ways to hold title to your home with these tips from our St. Louis title company.
Why Do I Need to Take Title?
Especially in the case of two non-married people buying the home, the title under which you own your house can impact how ownership is transferred as well as your rights to transfer ownership.
How you hold your title must be indicated on the General Warranty Deed, which is the document that transfers the ownership of the property from the seller to the buyer. If it is not done correctly, there could be legal implications to the homeowner.
How Can I Hold Title?
There are three different categories in which a buyer can take title while purchasing a home:
In joint tenancy, two or more individuals own equal shares in the real estate, with right of survivorship. When one of the joint tenants is deceased, their ownership share in the property transfers to the remaining joint tenant(s).
Tenants by the Entirety
This tenancy is reserved for married couples only and includes right of survivorship. If a spouse wants to modify his or her interest in the property, consent of both spouses is required. In addition, a lien cannot be recorded against the real estate unless the judgment is against both individuals.
Tenants in Common
Tenants in common means that two or more individuals can own a percentage share of the real estate. These tenants hold title individually and can dispose or will their individual ownership as they please. When one of the tenants is deceased, their ownership in the real estate is passed on to their estate.
Your method of holding title can be a very important factor in terms of your property ownership. If you have questions about tenancy or any other title issues, please contact your Investors Title Company Escrow Closer today.