What does it mean to “take title”?
This is a common question we get asked. Essentially, “taking title” to your home means determining how you legally own the property. There are a variety of ways to take title, like Sole Ownership, Joint Tenancy, Tenancy in Common, and more. However, the two most common ways are Joint Tenancy and Tenants in Common. We’ll break it down for you:
Two Common Types
- Joint Tenants: Joint tenancy means that each person owns an equal share of the property and has an equal right to use and enjoy it. When one joint tenant passes away, their share automatically passes to the surviving joint tenants.
- Tenants In Common: Tenancy in common means that each person owns a specific share of the property, which may or may not be equal to the others. Each tenant in common has the right to use and enjoy the entire property, but only to the extent of their ownership interest. When a tenant in common passes away, their share passes to their heirs or beneficiaries according to their will or state law.
However you take title is up to you, but if you have questions on how you should take title or how it could affect you or your heirs, you should contact your legal counsel. Taking title is an important decision that can have significant financial and legal implications. So make sure you choose the right type of title based on your specific situation. Happy Closings!