HOW TO HOLD TITLE
A great teacher taught me years ago that many of the nuances of real estate law only matter when it matters. How you hold title is one of those nuances and it really matters when it matters.
Consider the case of one of our distraught readers whose significant other had placed both their names on the title in Joint Tenancy more than three years ago. Just a few months later, the relationship went south, and the significant other wanted to switch everything back the way it was before the Joint Tenancy agreement.
The problem was this reader pointed out that she had "made monetary contributions to ALL the upgrades done within the house, paying for 90 percent of the total renovations done which has increased the value of the property as well. I contributed to the household over the years I was there, but did not specify that these funds went to the mortgage, and these funds went to whatever. I just want to be fairly compensated for my "loss." As a Joint Tenant, technically I am entitled to 50 percent of the equity, right? I am not on the loan. Help and fast. He sent me a letter from a lawyer and I want to make sure I know what I am talking about before I respond."
There are several ways of holding title to property and if what this person wrote is correct, asking for a quit claim deed is not one of the guaranteed 50 ways to leave this lover without an interest in the property, or at least a court appearance.
In a married situation, the joint tenants form of holding title is the most popular, as the property then passes to the surviving party in case of death without being left in a will. The form of title is established to create such a passing on of property. Thus, our spurned owner above, actually has a legal foot to stand on with the financial support provided in the property -- but primarily, because of the form of title -- to be able to receive some sort of remuneration following the impending break up of the relationship. Her best move is to take it to court.
Though joint tenancy is the most popular form of title used among married couples, it doesn't mean that the ownership title is for only two people. If, for instance, you go into a business transaction to invest in property with a couple of investors, this may be a form of ownership you would want to use so that the ownership passes back to the other owners if one of the partners dies.
However, if an investor desires to pass property on to his or her heirs at his or her death, joint tenancy would not be the desirable title. Instead, the investors would want to have title by "tenants in common."
Nevertheless, the reader has a couple of options in the dissolution of this ownership. She could, as her former beau has requested with an attorney's letter, sign a quit-claim deed, signing over all ownership back to the other owner. In a divorce cases, this is the usual method of dividing property, but comes only after a separation agreement and a property settlement has been signed, sealed and delivered, via the court system. Finally, in the dividing of property, someone gets the house -- or the co-owners are forced to sell and divide the proceeds.
Here are a few resources in determining how you may want to hold title for your next purchase:
Consider the case of one of our distraught readers whose significant other had placed both their names on the title in Joint Tenancy more than three years ago. Just a few months later, the relationship went south, and the significant other wanted to switch everything back the way it was before the Joint Tenancy agreement.
The problem was this reader pointed out that she had "made monetary contributions to ALL the upgrades done within the house, paying for 90 percent of the total renovations done which has increased the value of the property as well. I contributed to the household over the years I was there, but did not specify that these funds went to the mortgage, and these funds went to whatever. I just want to be fairly compensated for my "loss." As a Joint Tenant, technically I am entitled to 50 percent of the equity, right? I am not on the loan. Help and fast. He sent me a letter from a lawyer and I want to make sure I know what I am talking about before I respond."
There are several ways of holding title to property and if what this person wrote is correct, asking for a quit claim deed is not one of the guaranteed 50 ways to leave this lover without an interest in the property, or at least a court appearance.
In a married situation, the joint tenants form of holding title is the most popular, as the property then passes to the surviving party in case of death without being left in a will. The form of title is established to create such a passing on of property. Thus, our spurned owner above, actually has a legal foot to stand on with the financial support provided in the property -- but primarily, because of the form of title -- to be able to receive some sort of remuneration following the impending break up of the relationship. Her best move is to take it to court.
Though joint tenancy is the most popular form of title used among married couples, it doesn't mean that the ownership title is for only two people. If, for instance, you go into a business transaction to invest in property with a couple of investors, this may be a form of ownership you would want to use so that the ownership passes back to the other owners if one of the partners dies.
However, if an investor desires to pass property on to his or her heirs at his or her death, joint tenancy would not be the desirable title. Instead, the investors would want to have title by "tenants in common."
Nevertheless, the reader has a couple of options in the dissolution of this ownership. She could, as her former beau has requested with an attorney's letter, sign a quit-claim deed, signing over all ownership back to the other owner. In a divorce cases, this is the usual method of dividing property, but comes only after a separation agreement and a property settlement has been signed, sealed and delivered, via the court system. Finally, in the dividing of property, someone gets the house -- or the co-owners are forced to sell and divide the proceeds.
Here are a few resources in determining how you may want to hold title for your next purchase:
DivorceNet.com
FindLaw.com's Real Estate Center
Relocat.com (online comparison chart on how to title property)
Published: October 27, 2006
By M. Anthony Carr
Realty Times
posted by Allyson Hoffman at 11:06 PM
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