Title might not be the first thing that comes to mind when you’re considering all the elements of purchasing a home. In fact, many people don’t even realize there are options when it comes to title. The best way to determine the best option is, of course, to consult with a trusted real estate professional—but in the meantime, why not familiarize yourself with your choices?
Here, the basics on the most common ways to hold title to your home.
Sole Ownership
This option is almost as straightforward as it sounds, and it’s not just for single people. (In other words, it’s still an option if you’re married.) There are no special tax advantages for this option.
Tenants in Common
This one is a common choice not only in situations that involve two or more co-owners who are not married, but for those who are married and have children from previous marriages. Each tenant in common can sell or pass his interest by will—which can prove an advantage or a caveat emptor, depending on the situation.
Joint Tenancy with Right of Survivorship
In the case of joint tenancy with right of survivorship, all co-owners take title at the same time, with equal shares. As its name suggests, the surviving co-owner will wind up owning the property. A wise choice in that it eliminates costs and delays associated with probate.
Living Trust
For a number of reasons, the living trust remains one of the more popular title choices. Probate costs and delays are avoided and privacy is ensured. There is a small cost, usually less than $1,000, associated with the establishment of a living trust.
For answers and explanations to all of your home buying questions, just ask an agent! Find a First Team specialist near you or reach out and we’ll match you with an agent in your area.
