Articles

Ways of Holding Title in California

By: Owen Chen

Updated: June 7, 2022

Disclaimer:

I am not a lawyer. This article is general information and not legal advice. Consult a qualified legal professional for your specific situation. No liability is assumed for any consequences resulting from using this information.

What does it mean to hold title?

Holding title means that a person has certain legal rights concerning the ownership of a property depending on the specific type of title. Title is different from a deed, which does not grant any rights over a property but rather shows a change in ownership. 

What are the most common ways of holding title?

• Joint Tenancy: Any number of people equally own a property, regardless of marriage status. On the death of an owner, their rights are given to the survivors according to the right of survivorship. 

• Tenancy in Common: Any number of people can choose to divide ownership unequally. The tenants also need to divide tax benefits and property tax payment, and each tenant has the ability to sell and lease their part of the property. 

• Sole Ownership: A single person has all rights to a property, even if they are married. On the owner's death, the property is transferred according to their will or based on the decision of a probate court if they have no will. 

• Community Property: Spouses or domestic partners own a property equally, which is how the property is divided upon divorce. If one owner dies, their ownership is transferred to the other owner. 

• Living Trust: In California, a settlor may choose to have their property is held by a trustee on the behalf of any number of beneficiaries. 

Additional Resources:

https://www.investopedia.com/articles/mortgages-real-estate/08/title-ownership-property.asp