Understanding Property Title Options for Buyers and Sellers in California

When it comes to owning property, there's no one "right" way to do it. Getting a basic understanding of the options is the first step, discussing these options with your Real Estate Attorney is the second step!

Here's a quick breakdown of some of the common options:

1. Community property is only between spouses, and they own the property separately 50% each.  A probate is needed if a spouse passes away.

   
   

2. Community property with the right of survivorship is only between spouses. The interest of the spouse who may pass away transfers to the surviving spouse without going through probate.  An affidavit death of community property of a spouse with the original or county certified death certificate is needed for the affidavit to be recorded.

   
   

3. Joint Tenancy is for any number of owners, owning the property together for the entire 100% of the property.  Interest of any owners who may have passed away transfers to the other owners without going through probate.  An affidavit death of joint Tenant with the original or county certified death certificate is needed for the affidavit to be recorded.

   
   

4. Tenancy in Common (also known as a TIC) is for any number of owners each owning their separate percentage of the property.  The owners can own equal or unequal percentage amounts of the property, and the property passes onto the heirs of the person who may have passed away through a probate.

   
   

5. Partnership Holding Title is for any number of partners with the interest of the partners being equal or unequal.  The partnership agreement provides for either termination or continuance of the partnership if a partner passes away.

   
   

6. Trusts Holding Title is when the trust is the owner of the property.  The trust will indicate who would be the successor trustee of the trust if the original trustee/s and/or settlors pass away.  The successor trustee would be able to sign and notarize a grant deed to a new buyer through an open escrow.  Title companies will need a copy of the trust if the original trustee/s and/or settlors pass away to determine who the successor trustee is for the trust prior to closing the escrow.  A probate is not needed if the property is owned by a trust.  An affidavit death of trustee with the original or county certified death certificate is needed for the affidavit to be recorded.

Thank you to Greg Lane of Lawyers Title for providing this information! For further information on how best to set up title for your purchase we recommend speaking with a Real Estate Attorney to decide which option is best suited for your needs.