"When two or more co-owners take title to real estate, especially if they are not married to each other, they often become tenants in common. Each tenant in common owns a specified interest in the property. It need not be equal. For example, one owner might own a 50% interest, another could own a 10% interest and a third tenant in common could own a 40% share."
"A major advantage is that each tenant in common can sell or pass his interest by his will to whomever he or she wishes. For this reason, tenancy in common is especially popular in second marriages, so each spouse can will his or her share to the children from a first marriage."
"When a married person takes title to real property in his or her name alone in sole ownership, the spouse is usually asked to sign a quitclaim deed giving up any ownership interest in the property. This might be done, for example, when a husband invests in properties but his wife is not involved with the realty investments."
Home buyers often overlook how to take title to their property, yet this decision carries significant legal and financial consequences. Sole ownership allows single individuals or married persons to hold property in one name alone, though it offers no special tax advantages and subjects the property to probate upon death. Tenants in common enables multiple co-owners to hold unequal percentage interests and pass their shares through wills, making it popular for second marriages, though it risks co-ownership with strangers and involves probate costs. Each titling method—including joint tenancy, tenancy by the entirety, and community property—presents distinct advantages and disadvantages regarding ownership flexibility, tax treatment, and probate implications. Consulting a real estate attorney before selecting a titling method is strongly recommended.
Read at Los Angeles Times
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