Deed Ownerships, Conveyances and What They Mean:
In real estate, several types of ownership or conveyance can be specified in a deed. These types of ownership determine how property is held, its rights and responsibilities, and the transference of title or ownership upon death of one or more of the owners. Here are some common types:
Sole Ownership: Also known as ownership in severalty, a single individual or entity owns a property. In the event of the owner’s death, the property passes through the owner’s Last Will and Testament, or if there is none, by the intestacy laws to determine whom it will pass to by virtue of relationship with the deceased.
Tenancy in Common: This is a form of co-ownership where two or more individuals or entities hold an interest in the property. Each owner has a different percentage of ownership, and their shares can be inherited or transferred independently. In the event of one owner's death, their share passes to their intestate descendant(s) or as directed by their will. The other shares of the property remain with the other co-tenants. The property typically will need to pass through probate and a new deed must be prepared to reflect the change in ownership.
Joint Tenancy: This is a form of co-ownership with the right of survivorship. Joint tenants have equal ownership interests, and if one owner passes away, their interest automatically transfers to the surviving joint tenant(s). The survivor then has sole ownership.
Tenancy by the Entirety: This form of ownership is limited to married couples in some states. It combines the elements of joint tenancy with the right of survivorship and includes the legal presumption that a couple is a single unit. It provides certain asset protection benefits, and upon the death of one spouse, the property passes to the surviving spouse without probate.
Community Property: In states that recognize community property laws, property acquired during a marriage is considered jointly owned by both spouses, with each spouse having an equal interest. Community property is typically divided equally between spouses in the event of a divorce or death.
It's important to note that the specific types of ownership available and the rules governing them vary from state to state. Consult with a probate or real estate attorney in your area to understand the specific implications and requirements associated with each type of ownership.
