How you hold title to real estate affects how you can use the property and how you can distribute it upon your death. The differences are subtle but important. Full service title agencies, like Title Junction, can provide valuable insights about these differences as well as provide escrow and Cape Coral and Fort Myers notary services for your real estate transaction.
There are Three Main Options for Holding Real Estate Title in Florida
In Florida, four basic types of property ownership exist. The type of ownership you select is sometimes referred to as “holding title” to a property and has important implications for your use of the property. Here we set out three of them.
Joint Tenancy with Right of Survivorship provides each owner with an equal interest in the property and allows the property to pass to the surviving owner, uncontested, if the other owner dies. The property is not willed away and does not pass to heirs of the deceased.
Tenancy in Common titles are similar to Joint Tenancy but they do not offer the Right of Survivorship. With this type of title, each owner has a stated interest in the property. Property shares, or interest, may be equal parts, or unequal. While both owners survive, they have 100% use of the property no matter what their actual share percentage is. An owner cannot sell his or her portion of the property without the other owners’ permission, but they can transfer their interest in the property at any time. The key element of Tenancy in Common ownership is that owners can will the property away upon their death. It does not automatically pass to the co-owner.
Tenancy in the Entirety is also called Community Property and is only available to married couples. Each couple has a 100% interest in the property and must have the consent of their spouse to transfer ownership. Upon the death of one spouse, the surviving spouse automatically retains the property. Tenancy in the Entirety is not used throughout the United States, but is is a recognized form of title in Florida.
We are not attorneys, the information contained in this blog post is provided for educational purposes only as well as to give you general information and understanding. It should not be considered or construed as legal advice.