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Title Vesting
Title Vesting
How title is vested has important legal consequences. We advise that you seek the advice of legal and/or tax counsel to determine the most advantageous way to hold title for your specific situation.
The most common ways for a married couple to hold title are joint tenancy or community property with right of survivorship. The following chart gives a more detailed explanation of title interests.
Community Property
Joint Tenants
Community Property with right of survivorship
Tenancy in Common
Partnership
Parties
Only married couple or domestic partners.
Two or more persons(may also be spouses or domestic partners)
Husband and wife or domestic partners.
Any number of persons (may also be spouses or domestic partners)
Only partners (any number).
Division
Ownership and managerial interest are equal except control of business is solely spouse/partner.
Ownership interest must be equal.
Ownership interest is equal.
Ownership can be divided into any number of interest equal or unequal.
Ownership interest is in relation to interest in partnership.
Title
Title is in the "community". Each interest is separate but management is unified.
There is only one title to the whole property.
Title is in the "community". Each interest is separate.
Each co-owner has a separate legal title to his undivided interest.
Title is in the "partnership".
Possession
Both co-owners have equal management and control
Equal right of possession.
Both co-owners have equal possession.
Equal right of possession.
Equal right of possession but only for partnership purposes.
Conveyance
Requires written consent of other spouse – or actual conveyance by deed. Separate interest is devisable by will.
Conveyance by one co-owner without the others breaks the joint tenancy.
Real property requires written consent of other spouse/partner, and with separate interest cannot be conveyed upon death.
Each co-owner's interest may be conveyed separately by its owner.
Any authorized partner may convey whole partnership property. No partner may sell his interest in the partnership without consent from his copartners.
Purchaser's status
Purchaser can only acquire whole title of community; cannot acquire a part of it.
Purchaser will become a tenant in common with the other co-owners in the property.
Purchaser can only acquire whole title of community; cannot acquire part of it.
Purchaser will become a tenant in common with the other co-owners in the property.
Purchaser can only acquire the whole title.
Death
On co-owner's death, ½ belongs to survivor in severalty ½ goes by will to decedent's devisees or by successful on to survivor.
On co-owner's death, his interest ends and cannot be deposed of by will. Survivor owns the property by survivorship.
On co-owner's death the entire tenancy remains to the survivor. This right of survivorship is one of the primary incident of community property with right of survivorship.
On co-owner's death his interest passes by will to his devisees or his heir. No survivorship right.
On partner's death, his partnership interest passes to the surviving partner pending liquidation of the partnership. Share of deceased partner then goes to his estate.
Successor's Status
If passing by will, tenancy in common between devisee and survivor results.
Last survivor owns property in severalty.
If passing by will, tenancy in common between devisee and survivor results.
Devisee or heirs become tenants in common.
Heirs or devises have rights in partnership interest but not in the specific property.
Creditor's Rights
Property of community is liable for contracts of either spouse/partner which are made after marriage and prior to or after marriage and prior to or after January 1,1975. Co-owner's interest can't be sold separately; whole property may be sold on execution to satisfy creditor.
Co-owner's interest may be sold on execution sale to satisfy creditor. Joint tenancy is broken, creditor becomes tenant in common.
Property of community is liable for contracts of either spouse/partner which are made after marriage and prior to or after January 1,1975. Co-owner's interest can't be sold separately; whole property may be sold on execution to satisfy creditor.
Co-owner's interest may be sold on execution sale to satisfy his creditor. Creditor becomes tenant in common.
Partner's interest cannot be seized or sold separately by his personal creditor but his share of profits may be obtained by a personal creditor. Whole property may be sold on execution sale to satisfy partnership creditor.
Presumption
Strong presumption that property acquired by “husband and wife” or “domestic partners” is community property.
Must be expressly stated. Not favored.
Strong presumptions that property be taken as "husband and wife” or “domestic partners” is community property
Favored in doubtful cases except husband and wife/domestic partners case.
Arise only be virtue of partnership statue in property placed in partnership.
