When buying property, a person can gain ownership in many different ways, including the following: as an individual, jointly or through contract rights. These are the most basic and common forms of real estate ownership. The following list is a description to help you understand what each type of ownership means:
• Individual Ownership. Property that is owned by one individual without any other owners or beneficiaries is considered to be individual ownership. Upon death, property owned in an individual name can be probated to be left to a loved one.
• Joint Ownership. When buying property, it doesn’t always have to be done individually. It can involve a co-owner or multiple co-owners. This type of ownership can be achieved many different ways:
- Joint Tenancy with Right of Survivorship. With this form, all owners have an equal stake in the property. In most states, an owner cannot sell or mortgage the property without the consent of every owner. When one owner dies, ownership of the property is automatically absorbed by the surviving owners.
- Tenancy by the Entirety. This type of ownership is only available for married couples in certain states. Similar to joint tenancy with right of survivorship, the property cannot be sold or mortgaged without the consent of both husband and wife. If one spouse were to decease, ownership of the property is automatically absorbed by the surviving spouse.
- Tenancy in Common. Each individual in this type of property ownership owns a specific percentage of the property, which doesn’t necessarily have to be divided equally. Each owner is able to mortgage or sell their percentage of property without permission of the other owners. Upon death, the tenant in common passes their portion of the property onto their own chosen beneficiaries rather than the surviving owners.
• Title by Contract. This type of ownership includes Payable on Death accounts (POD), Transfer on Death accounts (TOD), In Trust For accounts (ITF), Revocable Living Trusts and all other agreements where the owner has full control of a piece of property for the duration of their life. Upon death, ownership of the property passes outside of probate to the beneficiaries designated by the owner.
If you are interested in buying property, consider the pros and cons of the various types of ownership prior to signing any contracts. To locate the property of your dreams, visit AllAcres.com to immediately be put in front of multiple listings quickly and easily. For more information on selling or buying property, call AllAcres at 855-227-3741 or contact us online today.