What’s the difference between a deed and the title? The deed is the physical document that transfers and proves ownership of the property. The title shows the type of ownership you have. Here are the most common:
Sole Ownership-This is when only 1 person or entity is the only owner. If married, the spouse still has rights and is required to sign documents when the property is sold or refinanced. And, if married when purchasing and obtaining a loan, the lender will require the spouse to sign the deed of trust. There are, of course, exceptions. If you’re single and looking to purchase property, get legal counsel regarding sole ownership especially if you anticipate marriage in the future. Also, get a will so you are directing who inherits your assets instead of the state deciding for you.
Tenants by the Entirety—This type of ownership is reserved for spouses that functions as joint ownership with right of survivorship. Upon the death of a spouse, the surviving spouse takes immediate ownership.
Joint Tenants—This form ownership is for non-spouses with right of survivorship for 2 or more owners. All owners have equal ownership with the right to assume the interest of another owner in the event of death. In effect, the last owner living owns the property.
Tenancy in Common—This is also a form of co-ownership for non-spouses which allows for percentage of ownership with each owner’s percentage of ownership passing to that owners heirs upon death rather than to the other owners.
This is just a thumbnail view of the different types of ownership. If this topic is interesting to you and you would like a deeper dive into this subject matter, leave us a comment or contact us with a private message.