How should I take ownership to the property I'm buying?

This important question is one my clients ask frequently. Unfortunately, while I can tell you the many methods of owning property, I cannot recommend a specific form of ownership for you. That would involve practicing law which I am not permitted to do.

Real estate has become increasingly valuable and the question of how you take ownership has gained even greater importance. The form of ownership taken - the vesting of title and exposure to creditors claims along with the implications of probate - now has significant financial implications to the owner.

Buyers should probably consult legal counsel to determine the most advantageous form of ownership for their particular situation, especially in the case of multiple owners.

The California Land Title Association provides the following definitions and explanations. You should talk to your attorney as well as reviewing these:

SOLE OWNERSHIP
Sole ownership is ownership by an individual or other entity capable of acquiring title. Examples include:
A single man/woman - a man or woman who has not been legally married.
An unmarried man/woman - a man or woman who was previously married.
A married man/woman as his/her sole and separate property - a married man or woman who wishes to acquire title in his/her name alone. The spouse will have to specifically disclaim or relinquish his/her right, title and interest to the property. This establishes that it is the desire of both spouses to have title to the property granted to one spouse as his/her sole and separate property.

CO-OWNERSHIP
Title to property owned by two or more people can be vested in one of the following:
Community Property - a form of vesting title to property owned by husband and wife during their marriage which they intend to own together. Community property is distinguished from separate property which is property acquired before marriage, by separate gift or bequest, after legal separation, or which is agreed to by owned by one spouse. In California real property conveyed to a married man or woman is presumed to be community property, unless otherwise stated. Since all such property is owned equally, husband and wife must sign all agreements and documents of transfer. Under community property either spouse has the right to dispose of one half of the property, including transfers by will. (This would be stated on title as "John Jones and Jane Johns, husband and wife, as community property.")
Joint Tenancy - This is a form of vesting of title to property owned by two or more persons who may or may not be married in equal interest subject to the right of survivorship to the surviving person(s) also known as tenants. Title must have been acquired at the same time and conveyed by the same operation of law to the surviving joint tenant(s). Joint tenancy property is not subject to disposition by will. (This would be stated on title as "John Jones and Jane Jones, husband and wife, as joint tenants.")
Tenancy in Common - This is a form of vesting title to property owned by two or more individuals in undivided fractional interests. These fractional interests may be unequal in quantity or duration and may arise at different times. Each tenant  in common owns a share of the property, is entitled to a comparable portion of income from the property and must bear an equal share of the expenses. Each co-tenant may sell, lease or will to his/her heirs their share of the property ownership. (This would be stated on title as "John Jones, a single man, as an undivided 1/4 interest and Judy Johnson, a single woman, as an undivided 1/4 interest, as tenants in common.")
Community Property with Right of Survivorship - This form of vesting of title to property owned by husband and wife during their marriage which they intend to own together. The Right of Survivorship avoids probate. Mutual consent is required for transfer. Descendant's interest automatically passes to surviving spouse due to Right of Survivorship. Surviving spouse may have some tax advantages.

Click here to link to a chart showing the above information and more....