Common Ownership

Buyer's Guide - Common Forms of Real Property Ownership

Common Forms of Real Property Ownership

There are various ways in which a property owner can own real property. This is also known as "how to hold title" to real property. The three most common forms of real property ownership are TENANCY IN COMMON, JOINT TENANCY, and COMMUNITY PROPERTY. There are similarities between the three forms of ownership, but there are some unique differences as well.

As a Home Buyer, you will be asked by the Title Company handling the escrow for your home purchase exactly how you wish to hold title to your new home. A review of this page will give you only an idea of the three forms of ownership.

PLEASE NOTE: This is provided for informational purposes only. Specific questions for actual real property transactions should be directed to your attorney or C.P.A.

	TENANCY IN COMMON	JOINT TENANCY	COMMUNITY PROPERTY
Parties	Any number of persons (can be husband and wife)	Any number of persons (can be husband and wife)	Only husband and wife
Division	Ownership can be divided into any number of interests, equal or unequal	Ownership interests cannot be divided	Ownership interests are equal
Title	Each co-owner has a separate legal title to his undivided interests	There is only one title to the whole property	Title is in the "community" (Similar to title being in a partnership)
Possession	Equal right of possession	Equal right of possession	Equal right of possession
Conveyance	Each co-owner's interests may be conveyed separately by its owner	Conveyance by one co-owner without the others breaks the joint tenancy	Both co-owners must join in conveyance of real property. Separate interests cannot be conveyed
Purchaser's Status	Purchaser becomes a tenant in common with the other co-owners	Purchaser can only acquire whole title of community; cannot acquire a part of it
Death	On co-owner's death, his interest passes by will to his devisees or heirs. No survivorship right	On co-owner's death, his interest ends and cannot be willed. Survivor owns the property by survivorship	On co-owner's death, 1/2 goes to survivor in severalty. Up to 1/2 goes by will or succession to others (consult attorney with specific questions)
Successor's Status	Devisees or heirs become tenants in common	Last survivor owns property in severalty	If passing by will, tenancy in common between devisee and survivor results
Creditors	Co-owner's interest may be sold on execution sale to satisfy his creditor. Creditor becomes a tenant in common	Co-owner's interest may be sold on execution sale to satisfy his creditor. Joint tenancy is broken, creditor becomes a tenant in common	Co-owner's interests cannot be seized and sold separately. The whole property may be sold to satisfy debts of either husband or wife, depending on the debt (consult attorney with specific questions)
Presumption	Favored in doubtful cases except husband and wife (see Community Property)	Must be expressly stated and properly formed. Not favored	Strong presumption that property acquired by husband and wife is community
This is provided for informational purposes only. Specific questions for actual real property transactions should be directed to your attorney or C.P.A.

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