04/15/2024
COMMON WAYS OF HOLDING TITLE
For the state of WA -Curtesy of Chicago Title
There are many ways in which owners can hold title. Here are common ways to hold title to real property:
SOLE OWNERSHIP (Sole Tenancy)
In this form, a single individual holds the title to the property.
Provides full control and decision-making authority.
Upon the owner's passing, the property passes through their estate.
JOINT TENANCY
Involves two or more individuals sharing ownership equally.
Joint tenants offer the right of survivorship, meaning if one owner passes away, their share automatically transfers to the surviving owner(s). Requires unity of time, title, interest, and possession among co-owners.
TENANCY IN COMMON
Allows multiple individuals to hold equal or unequal interest of the property. Each co-owner can sell, transfer, or mortgage their equal or unequal interest without the consent of others.
No right of survivorship – each owner's equal or unequal interest passes to their heirs or as directed in their will.
COMMUNITY PROPERTY
Applicable in certain states, designating property acquired during marriage as jointly owned by both spouses. Each spouse has an equal and undivided interest in the property. In case of divorce or death, the property is typically divided equally between spouses.
PARTNERSHIP/LLC (Limited Liability Company)
Suitable for multiple owners seeking limited liability protection.
Owners are members of the LLC, and their ownership interest is represented by membership units.
Provides flexibility in management structure and distribution of profits.
