What Are the Different Ways to Hold Title, and Which Is Right for Me?
How you “hold title” means how your name (or names) appear on the deed, and it matters more than many buyers realize. It affects who owns what share of the property, what happens if an owner passes away, and in some cases how the property is protected from creditors. You’ll usually be asked to decide before closing, so it’s worth thinking about ahead of time.
Sole ownership means one person owns the property outright. It’s simple, but when that person passes away, the home generally goes through their estate. Tenants in common allows two or more people to own shares of the property, equal or unequal, and each owner can sell or leave their share to whomever they choose. This is common among friends, relatives, or business partners buying together. Joint tenants with right of survivorship gives co-owners equal shares, and if one owner dies, their share passes automatically to the surviving owner(s) without going through probate.
For married couples, many states, including Maryland, Virginia, and the District of Columbia, recognize tenancy by the entirety. It works like a joint tenancy with survivorship but also offers certain protections against creditors of just one spouse. Some buyers also choose to take title in a living trust for estate planning purposes, or in an LLC, which is more common for investment properties.
There’s no single “right” answer. The best choice depends on your relationship with any co-buyers, your estate plans, and your financial picture. Because this decision has legal and tax consequences, it’s a great question to bring to an attorney or financial advisor before you get to the settlement table.
Cecelia Adams owns and operates RSI Title. She has over 20 years of experience in the title industry and has conducted thousands of real estate closings in Maryland and the District of Columbia.
301-610-7777
cadams@rsititle.com
www.rsititle.com
This article is for general informational purposes only and is not legal or tax advice. Every situation is different, and laws vary by state. Please consult a licensed attorney or qualified tax professional regarding your specific circumstances.
