o2 Mortgage | “How do you want to hold title?”
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“How do you want to hold title?”

Once in contract, this will be a question that you will have to answer. In laymen’s terms, they are asking in who will be the owner(s) and what rights will each have with regard to the property, both during their life and after they die (heavy, right?). There are 3 common ways to hold title and each option comes with its own set of pros and cons. Here is some information that hopefully will make it a little easier to understand each of the most common options:

1. Community Property With Right of Survivorship

This choice would be for spouses or domestic partners and would provide equal division of interest and possession. Additionally, title would be in the name of the individual owners. If either person passes away, the decedent’s interest passes to the survivor.

2. Joint Tenancy
This choice could include any number of persons and would provide equal division of interest and possession. Also, title would be in the name of the individual owners. If any person(s) passes away, the decedent’s interest is passed onto the survivor(s).

3. Joint Tenancy in Common
This choice could include any number of parties and the parties involved could choose any number of interests, equal or unequal. Title would be in the name of the individual owners and each interest would be willable and saleable.

* Trust
This choice could include any number of beneficiaries of the trust and beneficial interests under the trust could be equal or unequal. Possession would be according to the trust agreement and title would be in the name of the trustee, “as trustee”.

Drew Frampton

drew@o2mtg.com

Drew got into mortgages in 2006. Cutting his teeth in the industry as it was going through the housing crash has proven indispensable to Drew's success. He lives in Willow Glen with his wife Brendy and their son Ford. In his free time Drew loves to cook, fish and spend time outdoors.

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