Real Estate Contracts
This is the area to post Real Estate Information on Earnest Money Agreements, Addendums, Escrow,Contract Law from those professionals with experience or to ask for suggestions.... NOTE: We are not Attorneys nor do we represent any Legal Advice in this forum, as always consult an Attorney for any legal advice.
Common methods of Holding Title:
SOLE OWNERSHIP
Sole ownership may be described as ownership by an individual or other entity capable of acquiring title.
Examples of common vesting in cases of sole ownership are:
1. A single Man/Woman:
A man or woman who has not been legally married.
For example: Joe Buyer, a single man.
2. An Unmarred Man/Woman:
A man or woman who was previously married and
is now legally divorced. For example: Suzie Seller, an unmarried woman.
3. A Married Man/Woman as his/her Sole and Separate Property:
A married man or woman who wishes to acquire title in his or her name alone.
The title company insuring title will require the spouse of the married man or woman acquiring title to specifically disclaim or relinquish his or her right, title and interest to the property. This establishes that it is the desire of both spouses that title to the property be granted to one spouse as that spouse's sole and separate property. For example:
Joe Buyer, a married man, as his sole and separate property.
CO-OWNERSHIP
Title to property owned by two or more persons may be vested in the following forms:
1. 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 be owned only by one spouse, 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 community property, including transfers by will. For example: Joe Buyer and Jane Buyer, husband and wife as community property.
2. Joint Tenancy:
A form of vesting 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 in the surviving joint tenant(s). Title must have been acquired at the same time, by the same conveyance, and the document must expressly declare the intention to create a joint tenancy estate. When a joint tenant dies, title to the property is automatically conveyed by operation of law to the surviving joint tenant(s). Therefore, joint tenancy property is not subject to disposition by will.
For example:
Joe Buyer and Jane Buyer, husband and wife as joint tenants.
3. Tenancy in Common:
A form of vesting title to property owned by any 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 the income from the property and must bear an equivalent share of expenses.
Reply to this
In cases of corporate, partnership or trust ownership the title company will require that it be furnished legal documents so that it may satisfy itself as to ownership rights of the parties to the transaction and any limitations which may exist on the sale, transfer or encumbrance of the property. Required documents may include corporate articles and bylaws, certificates of partnership and trust agreements.
Reply to this