Forms of Real Property Ownership in California
Real property ownership in California can take many different forms. Understanding the different types of property ownership can help you make informed decisions when it comes to buying or selling property, creating a trust, or developing an estate plan. Here are the four main types of real property ownership in California.
SOLE OWNERSHIP
This is the simplest and most common form of ownership, in which one person owns the property outright. In California, sole ownership can be held by a single person or a married couple as community property with right of survivorship.
TENANCY IN COMMON
This type of ownership is used when two or more people own a property together, but each has a separate, undivided interest in the property. In other words, each owner has the right to sell, mortgage, or transfer their share of the property without the permission of the other owners.
joint tenancy
This form of ownership is similar to tenancy in common, but with the added feature of the “right of survivorship”. In joint tenancy, each owner has an equal share in the property, and when one owner dies, their share automatically passes to the surviving owner(s).
community property
This form of ownership is only available to married couples in California. Under community property law, all property acquired during the marriage is owned equally by both spouses, regardless of who earned the money or whose name is on the title. Property acquired before the marriage or through inheritance or gift is typically considered separate property.
It’s important to note that the type of ownership you choose can have significant legal and financial consequences. For example, joint tenancy can be an effective way to avoid probate, but it can also result in unintended consequences if one owner wants to sell their share or has significant debts. Before making any decisions about property ownership, it’s important to consult with a qualified attorney or financial advisor who can help you navigate the legal and financial implications of each option.
