Homeowner Information

Buying a home comes with a lot of decisions. Some are exciting, like choosing the right home, neighborhood, and layout. Others are more technical, but still very important.

One of those decisions is how you will hold title to the property.

In simple terms, “holding title” means how ownership of the property is legally listed. This can affect who has the right to sign documents, sell or refinance the property, transfer ownership, leave the property to someone else, or handle the property if one owner passes away.

Because this decision can affect legal rights, taxes, inheritance, probate, and creditor issues, it is important to talk with a qualified attorney, tax advisor, or title professional before making a final decision.

King Real Estate Group can help you understand the real estate process and coordinate with your lender, title company, and other professionals, but we do not provide legal or tax advice.

There are several ways a person, couple, family, trust, or business entity may hold title to real estate. The right option depends on your personal situation, your relationship to any co-owner, your estate planning goals, and applicable state law.

Below is a general overview of common ownership structures.

Single Person

A person who has not been legally married may take title individually.

Unmarried Person

A person who was previously married and is now legally divorced may also take title individually.

Married Person as Sole and Separate Property

In some situations, a married person may want to take title in their name alone. When this happens, the title company may require the spouse to sign documents confirming that they are giving up or disclaiming any ownership interest in that property.

This is an important decision and should be reviewed with a title professional or attorney.

Co-ownership means two or more people own the property together. This is common for spouses, partners, family members, investors, or friends purchasing property together.

The way co-owners hold title matters because it can affect what happens if one owner sells, passes away, or wants to transfer their share.

Joint Tenancy

Joint tenancy is a form of ownership where two or more people own property together, usually with equal ownership interests.

One of the most important features of joint tenancy is the right of survivorship. This generally means that if one joint tenant passes away, that person’s ownership interest may automatically pass to the surviving joint tenant or tenants, rather than passing through a will.

Joint tenancy can be useful in some situations, but it may not be right for everyone. It can affect estate planning, inheritance, creditor issues, and family expectations, so it should be reviewed carefully.

Tenancy in Common

Tenancy in common is another way for two or more people to own property together.

Unlike joint tenancy, owners do not necessarily have to own equal shares. One person may own 50%, another may own 25%, and another may own 25%, depending on how title is written.

Each owner’s share may be sold, transferred, or left to heirs, depending on the situation and applicable law. Because this can affect probate and estate planning, buyers should review this option with a professional before closing.

Married or Partnered Owners

Married couples and domestic partners may have additional ownership options depending on state law. Some states recognize ownership structures such as community property or tenancy by the entirety, while others do not.

Because these rules vary by state and can affect taxes, inheritance, creditor rights, divorce, and probate, married or partnered buyers should speak with their title company, attorney, or tax advisor before deciding how to take title.

Corporation

A corporation is a legal entity created under state law. It exists separately from its shareholders and may hold title to real estate.

Partnership

A partnership is an association of two or more people or entities who carry on business together. A partnership may be able to hold title to property in the name of the partnership.

Limited Liability Company, or LLC

An LLC is a legal entity often used for business or investment ownership. The LLC’s operating agreement usually determines how the company is managed and how income, expenses, and decisions are handled.

Trust

A trust is an estate planning tool where a trustee holds and manages property for the benefit of the people named in the trust agreement.

When property is held through a corporation, partnership, LLC, or trust, the title company and lender may require additional documents, such as:

• Articles of incorporation.
• Corporate bylaws.
• Partnership agreements.
• LLC operating agreements.
• Trust agreements.
• Certificates of trust.
• Authority documents showing who can sign.

Living trusts are commonly used in estate planning. For some homeowners, a trust may help simplify the transfer of assets, avoid or reduce probate issues, and provide a clearer plan for managing property if something happens to the owner.

A living trust can be a helpful tool, but it is not right for every person or every property. Decisions about trusts should be made with an attorney, estate planner, or tax advisor.

What Is a Living Trust?

A living trust is a trust created during a person’s lifetime. It is sometimes called an inter vivos trust.

The person who creates the trust is often called the trustor, settlor, or grantor. The person responsible for managing the trust is called the trustee. The people who benefit from the trust are called the beneficiaries.

In many family trusts, the person or couple who creates the trust also serves as the initial trustee during their lifetime. After they pass away or can no longer serve, a successor trustee may step in.

Can a Trust Own Real Estate?

Technically, the trustee holds title to the property on behalf of the trust.

For example, the deed may show that the property is held by a trustee of a specific trust. The trust agreement then explains who has authority to manage, sell, refinance, or transfer the property.

Because title companies and lenders have specific requirements for trust-owned property, it is important to provide trust documents early in the process.

Is a Living Trust the Best Way to Hold Property?

That depends on your situation.

Some people use a trust to help with estate planning, privacy, probate avoidance, or management of assets. Others may not need one.

Only an attorney, estate planner, or tax advisor can tell you whether a trust makes sense for your specific goals.

Can a Trustee Sell or Borrow Against the Property?

Usually, a trustee can only do what the trust agreement allows.

If the trust gives the trustee authority to sell, refinance, or borrow against the property, then the trustee may be able to take those actions. However, lenders and title companies will still need to review the trust documents before approving a transaction.

Not every lender handles trust-owned property the same way, so it is smart to check early.

Can Someone Else Hold Title for Me “In Trust”?

This is something to be very careful about.

Some people consider putting property in another person’s name for privacy or convenience. That can create serious legal and financial risks. The person listed on title may have the legal authority to sell, transfer, or borrow against the property.

Before putting property in another person’s name, always speak with an attorney.

How title is held can have important legal and financial consequences. This page is intended as general information only and should not be relied upon as legal, tax, or estate planning advice.

Before deciding how to take title, speak with a qualified attorney, tax advisor, estate planning professional, or title company representative.

King Real Estate Group is happy to help coordinate the real estate side of the transaction and connect you with the appropriate professionals when needed.