11/08/2023
Common Types of Real Property Ownership, by Teri Victor, Lowcountry Title Services:
Sole ownership is the simplest way to hold title to a property. It occurs when one person alone
holds title, and it is most often used by people who
are single. But in some cases, married people can choose sole ownership if one spouse is willing to
sign a document renouncing any rights to the property.
Tenancy in common occurs when two or more people each get to own a percentage of a property. An
owner can sell his or her percentage share of the property at any time. The property does not
revert to the other owners automatically if one of the owners dies.
Joint tenancy with rights of survivorship occurs when two or more people jointly hold the title.
The deceased’s interest in the property will automatically transfer to the surviving tenants
without the need for probate. If only one joint tenant survives, the title becomes sole ownership.
Tenancy by the entirety occurs when a married couple is treated as a single entity, so each
individual is entitled to 100 percent of the interest in the property. An owner cannot alter
ownership of property without the other’s consent. Each of the married partners has full right to
the property should the other die.
Trusts are arrangements whereby legal title to property is transferred by a grantor to a person
called a trustee, to be held and managed by that person for the benefit of the people specified in
the trust agreement; this arrangement can reduce taxes on the estate in the event of the owner’s
death. However, there is some cost to creating and maintaining the trust. An estate attorney can
assist in establishing a trust.
Corporations, limited liability companies (LLCs), and partnerships can hold title to a property.
Each has different rights and arrangements that affect the title.
*** Seek legal counsel to make an
informed decision. ***
