Vesting TypesJoint Tenants: Joint tenancy is
always equal interest with the RIGHT OF SURVIVORSHIP. Each party has an automatic equal
interest in the property, with the right of survivorship passing to the other(s). In the
event of the death of one party, the survivor(s) sign a Bill of Sale and present a
certified copy of the death certificate.
Husband and Wife as Community
Property: usually used by husband and wife in HIGH INCOME/ASSET OR MULTIPLE
PROPERTY OWNERSHIP RANGE. There may be certain tax advantages with inheritance taxes,
which may be beneficial. Parties taking title this way should have made wills and should
have the advice of their attorney/CPA. As between husband and wife only, percentage of
interest is assumed to be equal.
Tenants in Common: Equal or unequal division of interest
between two or more people. The percentage each person (or each couple) holds MUST BE SET
OUT. Each interest is separate - NO RIGHT OF SURVIVORSHIP. On death of co-owner, interest
passes by will to his devisees or his heirs.
Example: John Buyer, a single man, as to an undivided 2/3 interest, and
Joe and Mary Clark, husband and wife, as joint tenants, as to an undivided 1/3 interest,
as tenants in common.
NOTE: The manner of taking title may have significant legal and tax
consequences. Buyers should consider consulting with a professional regarding such
consequences. If you should have any questions regarding the vesting, you may wish to
contact an attorney.
Questions? Call The Mary Conlin Company, Inc.
(949) 723 5917.
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