The 3 Ways You Can Title Your New Home
One of the things you may not have considered when purchasing your home is how it will be titled. There are several different ways that you can title your new home. How you title it will affect ownership, how the property can be sold, and how the property is passed down in case of your death. There are several considerations to make when titling your home.
Sole Ownership
Sole ownership is usually the preferred method of title for someone who is single. You may also be able to title a home as a sole owner if you are married, but your spouse would likely need to file a quit claim deed to declare that they have no interest in the property. Sole ownership properties are the easiest to sell, because you don’t have to worry about another party to the sale. It can be problematic when you pass, however, and the property could wind up in probate.
Joint Ownership
There are several options for joint ownership of a property. Some states have community property laws, which means that spouses are joint owners of any property purchased during the marriage. You can also own property jointly with someone you are not married to, in joint tenancy or tenants in common. Each owner has a share of the property, and they can sell their share to anyone at any time. If one owner dies, the other owner takes possession in most cases.
Living Trust
You can title your home as part of a living trust. When you title your home in this way, the trust owns the property rather than you as an individual. The biggest advantage to a living trust is that if you die, the property still belongs to the trust and the trust can be willed to whomever you choose. This can keep the property out of probate court.
If you are buying a home and you aren’t sure how you should title it, we can help. Contact our offices today for more information and guidance in titling your new home.