At closing day, many important decisions need to be made. First and foremost, the decision that is considered to be the most important one that new homeowners and investors will need to make is how they choose to title their property. This decision will determine how a homebuyer is conveying ownership, as well as how they will be protected in regards to how their property will be insured.
Realtors and real estate attorneys can work together to make this important decision easier for their clients.
Whether you are a realtor with knowledge on how one should title their property or interested in learning more, teaming up with an experienced real estate attorney such as, Kadoch Law Group can help guide you, as you steer your client’s in the right direction, in regards to understanding the options they can choose and the benefits of this protection. This team of Real Estate and Asset Protection Attorney’s in Florida will work efficiently with you, ensuring you know what clients can expect in regards to the legal process of property rights.
There are various title methods for investors to consider. These will depend on each individual situation and how investors would like for their ownership to pass on, if any circumstances change, such as sale, divorce, or death. Some options of holding title are through joint tenancy with rights of survivorship, tenancy in common, tenants by entirety, enhanced life estates, or sole ownership. Other options may include taking title in an LLC, corporation, or Trust.
The two most frequently chosen methods are having a joint tenancy or a tenancy in common. Both options are when at least two people or more hold title to a property jointly. They all will have rights to the property, as each person owns a share.
A joint tenancy is when the two or more tenants must have equal shares. When a tenancy in common is chosen, tenants can own different percentages of the home, for example one tenant might own 40% and the other 60%. The main difference is what will happen when an owner dies.
For example, when a property is owned equally as a joint tenancy with rights of survivorship, the interest of the owner who passes, will automatically be transferred to the other owner or owners. A person who passes who is part of a tenant in common ownership, their percentage will automatically belong to their estate, unless otherwise made clear in a will. Becoming more familiar with these options can help investors make the best-informed decision on how they should title property.
If you are looking to partner with a knowledgeable team of Real Estate and Asset Protection Attorneys, give us a call and we will provide the best possible service to you as we do with all of our partners and clients!