Ways to Hold Title - Real Property

In this post, we’ll be discussing the different ways you can hold title to real estate property.

To “hold title” means that you legally own something. When you legally own something, you’ll use a deed to show the conveyance of the property into your name, which is then recorded with the County Clerk. To learn more about the different types of deeds you can use, click HERE. While a deed serves as a record of ownership of property, holding title is the actual ownership of the property. Let’s dive into some of the different ways you can hold title!

Sole Ownership:

This type of ownership is pretty self-explanatory—it’s when the real estate property is owned by one individual or one entity that can legally own title, like a trust or a corporation. Sole ownership of property is most commonly held by single men or women.

Tenants in Common:

With this type of ownership, two or more individuals hold title to the property together. This ownership can be in equal or unequal proportions, but regardless of their portion of ownership, each owner has the right to use and enjoy the entire property.

For example, let’s say that Alice and Bobby own a farm as tenants in common, with Alice owning 30% of the farm and Bobby owning the remaining 70%. While Alice is the only one who lives on the farm, she is not limited to only living on 30% of the physical property and is free to enjoy the entire farm. Eventually, Alice and Bobby decide to sell the farm to Carl. Alice will receive 30% of the proceeds and Bobby will receive 70% of the proceeds from their sale of the farm to Carl, who now has sole ownership of the farm.  

Joint Tenancy:

With this type of ownership, two or more individuals hold title to real property jointly and in equal shares. The joint tenants have “rights of survivorship,” which means that upon the death of one of the tenants, their rights of ownership will automatically pass to the remaining joint tenants. When property is owned in joint tenancy, there are four elements that must be met. If at any point these elements are not met, the joint tenancy is severed, and the owners will then own the property as tenants in common. Click HERE to learn more about joint tenancy and how these elements work.  

Tenancy by the Entirety:

This type of ownership is similar to joint tenancy, but can only be used when both owners are legally married. When property is held in tenancy by the entirety, the married couple is considered one person for legal purposes. The married couple still owns the property in equal shares, and upon the death of one spouse, their rights of ownership will automatically pass to the surviving spouse.