how to hold title in California

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colten

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My wife and I are buying a house in California. We are presented with choices as to how to hold the title: Community Property, Community Property with Right of Survivorship, Joint Tenancy, and Tenancy in Common. I was given a one-page summary grid by the title company that discusses the differences each method has in different areas such as Parties, Division, Title, Possession, Conveyance, Death, and Successor Status. The problem is, we don't really understand the differences because the terms and explanations are written in legalese. Can somebody explain in simple lay terms what the differences are? And which methods are more applicable and/or more common to husband and wife? We are both "average" in the sense that we work full time, share our incomes equally, our incomes are close to each other, plan to contribute to the house equally, we have no past financial or legal issues or troubles, etc. Thanks in advance for any advice.
 
As this is a significant issue, I'd advise you to speak to an attorney for a full consultation before deciding upon any of the below choices. There are many factors to be considered and you should have full information about what each means and how it could pertain to your situation, of which we have no information.

I'll see if I can provide a decent explanation for you that is tailored to your situation:

Tenancy in Common: Two people own an interest in the property that can be used by either party and their half share can be sold or passed on to each party's heirs. Usage is "undivided" in that both have an equal right to use the "whole" house, although a "partition" may be requested, e.g. a two family house could be divided into two where each of you then obtains a right to use one part of the house.

Joint Tenancy: Two people own the same as the Tenancy in Common but typically this means that the party that outlives the other party obtains title to the whole. You cannot pass on your share to your children. So if you outlive him, when he dies, his one half interest becomes your and you end up owning the whole house. Works vice versa as well. This is called "right of survivorship."

Community Property: This is a concept of family law in that two people living together form a "unit" and that the property they accumulate when they are living together is placed into the community. There could be "equitable distribution" of the property in the event you are separated, etc. so that the court will determine what percentage of ownership each of you has in the property. Might not be as "clean" as the above two methods but also may be more fair in the long run. Right of survivorship is explained above.

This gives you an idea as to how things work. There are a few other issues such as "Tenancy by the Entirety" which I think is what "division" relates to since with a T by E you cannot "subdivide" the property into partitions and each of you owns an undivided percentage of the whole and each of you has a full right to use the entire property.
 
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