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What are the most common ways to own real estate?

On Behalf of | May 12, 2022 | Real Estate Law |

Florida residents who are looking to own property must hold the title to that property. There are several common methods of holding a real property title.

What is a property title?

A property title is a legal document that states who legally owns a property. Titles can be used for real estate property and personal property such as a vehicle. When property is sold to a new owner, the title must be transferred to that new owner.

What are the methods of holding a real estate property title?

There are several methods for holding a real estate property title. Joint tenancy occurs when two or more people have equal rights to the property. In this situation, if one of them passes away, that person’s share of the property is transferred to the surviving tenants.

Tenancy in common means that two or more people hold a real estate title equally or unequally. This means two people who hold the real estate property title might each have 50% share in the property. However, it might also mean that two people with interest in the property have unequal shares in it like one having 70% while the other only has 30%.

Sole ownership means that one person holds the title to a real estate property. People who own businesses often have this type of real estate title. However, many people who are married also hold sole ownership when they owned the property prior to their marriage or after marriage when they have a prenuptial or postnuptial agreement.

Tenants by entirety is a method of holding a real estate property title by married couples. It legally allows the couple to be considered one person to protect the property in the event that one of them passes away. In that situation, the surviving spouse receives the property title solely.

Owning real estate can be rewarding. It’s important to have the right title holding option.