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Common Ways of Ownership of Real Property

  Community Property Community Property W/ Right of Survivorship Joint Tenancy Tenancy in Common Partnerships Trust Arrangements Community Property Trust
Parties Only Husband and Wife Husband and Wife both should sign the acquisition Deed to accept this special form of vesting title Any number of persons (can be Husband and Wife) Any number of persons (can be Husband and Wife) Any number of persons Any individual, group, partnership or corporations. Other special requirements Only Husband and Wife
Division of Interest Ownership interests are equal Ownership and Management of property is equal Joint tenants have one and the same interest Ownership can be divided into any number of interests equal or unequal Each partner's share is personal property in partnership entity Ownership is a personal property interest and can be divided into any number of interests Property retains its character of community property
Title Title is in the "community". Each interest is separate Title is in the community subject to special survivorship right There is only one title to the whole property Each co-owner has a separate legal title to his/her undivided interest Ownership is by partnership entity only Title is held by trustee(s) pursuant to the trust agreement Title is held by trustee(s) pursuant to the trust agreement
Possession Both co-owners have equal possession Both co-workers have equal management and control Equal right of possession Equal right of possession Possession by partnership by managing partner(s) Depends on provisions in trust agreement Depends on provisions in trust agreement
Conveyance Both co-owners must join in conveyance of real property . Separate interests cannot be conveyed Required both spouses to join for valid conveyance except for security for attorneys fees. However the estate may be severed as in joint tenancy by one spouse conveying to themselves Conveyance by the owner without the others breaks his or her joint tenancy Each co-owners interest may be conveyed separately by it's owner Conveyance MUST be by designated general partners. All limited partners need to consent if sale is 100% of assets Designated parties in the trust instrument authorize the trustee to convey property. Also, a beneficiary's interest may be aold separately (as personal property) unless restricted By the trustee pursuant to the powers contained in the trust instrument
Purchaser's Status Purchaser can only acquire whole title of community, cannot acquire a part of it Purchaser can only acquire 100% of the title. Both spouses must convey. Cannot be a co-owner with other's spouse Purchaser becomes a tenant in common with the other co-owners Purchaser becomes a tenant in common with the other co-owners Purchaser acquires interest that partnership owned Purchased acquires interest held by the trustee. Beneficiary's interest may be conveyed separately (as personal property) unless restricted Purchaser acquires the interest held by the trustee
Effect of Death On co-owners death 1/2 belongs to survivor in severalty 1/2 goes by will to decendents devisees subject to administration by the local Superior Court. On death of the first spouse the undivided half interest passes to the surviving spouse, just the same as joint tenancy, no separate interest is devisable by will On co-owners death the entire tenancy remains to survivor. The right of survivorship is the primary incident of joint tenancy On co-owner's death his/her interest passes by will to his/her heirs subject to administration by the local Superior Court. No survivorship right Partner's share in partnership is devisable by will or passes by succession under Probate Statutes. May cause a dissolution of partnership dependent on terms of partnership agreement Depends on terms of trust instrument may terminate or convert trust to other arrangements. Successor beneficiaries may be named in the trust instrument Trust instrument many provide for distribution on death of first spouse. Spouse's half interest may be devisable by will. Surviving spouse may electo have their interest put under testament trust. Seek advice of counsel
Successors Status If passing by will, tenancy in common between devisees and survivor results Due to survivorship right, the surviving spouse owns 100% of the title Last survivor owns property in severalty Devisees or heirs become tenants in common Heirs or devisees have rights in partnership Depends on terms of trust instrument. Trust may terminate or other trust arrangements may be created Distribution depends on the terms of the trust instrument
Creditor's Rights Co-owners interest can't be sold separately, the whole property may be sold on execution to satisfy debts of either husband or wife, depending on debt (consult an attorney with specific questions) Property of the community is liable for debts of either spouse made before or during marriage. Entire property may be sold at execution sale to satisfy debt of either spouse Co-owner's interest may be sold on execution sale to satisfy creditor. Joint tenancy is broken, creditor becomes a tenant in common Co-owner's interest may be sold on execution sale to satisfy his/her creditor. Creditor becomes a tenant in common Partnership of real property only subject to execution sale by partnership creditor. If debt is of individual partner, only that partner's share (personal property) is subject to execution sale Creditor needs to obtain a final court order for any execution sale of the beneficial interest or an order to have specific trust property to be sold to satisfy the debt Creditor needs to obtain final court order for execution sale to satisfy the debts of either or both spouses
Charlie Dunn, CRS
Berkshire Hathaway HomeServices California Properties
11306 183rd Street, Cerritos, CA 90703
Direct Line: 562-430-4007
Make Yours a "DunnDeal" 

BRE# 00952327

The information provided is not intended as legal or tax advice and may not be relied on for purposes of avoiding federal tax penalties. 
All individuals, including those involved in a real estate transaction, are advised to meet with their tax and legal professionals.