Most Common Types of Property Ownership In CA

If you are buying or selling property it is important to understand the different types of property ownership so that you know your rights and responsibilities. Here are the main ones when it comes to residential real estate ownership:

1. Joint Tenancy – This form of ownership provides each owner with an equal, undivided interest in the property. Upon the death of one owner his/her interest will be equally distributed to the other owners; it cannot be left to another by the owner’s will.

2. Tenancy in Common – This form of ownership instills a separate, divisible interest in the property to each owner. When an owner dies their shares are distributed to their heirs (either via a will or if no will, via probate proceedings).

3. Community Property – Since California is a community property state, all property acquired during the marriage is co-owned equally by the spouses unless otherwise agreed upon in writing. Under community property laws, upon the death of one spouse in California the surviving spouse gets their 1/2 interest, and the other 1/2 interest belongs to the decedent.

4. Sole Ownership – This is when one person owns a property completely.

5. Trust Ownership – This is when property is transferred to a trust. It is a popular form of ownership for families as it dictates terms as to the future sale or transfer of the property; it can protect the other spouse and any children from probate should one spouse die.

If you are planning to purchase property in the state of California, make sure you understand the different ways to hold title and how your property rights can be effected based on your choice. You can speak with a real estate attorney or talk to your title representative to understand the different ways to hold title.