Page 7 - Home Buyers and Sellers Handbook English - California
P. 7

The title company insuring title will require the spouse of the married man or woman acquiring title to
           specifically disclaim or relinquish his or her right, title and interest to the property. This establishes that both
           spouses want title to the property to be granted to one spouse as that spouse’s sole and separate property.
           For example: Bruce Buyer, a married man, as his sole and separate property.

        Co-Ownership – Title to property owned by two or more persons may be vested in the following forms:

        1.  Community Property: A form of vesting title to property owned together by married persons. Community
           property is distinguished from separate property, which is property acquired before marriage, by separate
           gift or bequest, after legal separation, or which is agreed in writing to be owned by one spouse.

           In California, real property conveyed to a married person is presumed to be community property unless
           otherwise stated (i.e. property acquired as separate property by gift, bequest or agreement). Since all such
           property is owned equally, both parties must sign all agreements and documents transferring the property
           or using it as security for a loan. Each owner has the right to dispose of his/her one half of the community
           property, by will. For example: Bruce Buyer and Barbara Buyer, husband and wife, as community property or
           Sally Smith and Jane Smith, spouses, as community property.


        2.  Community Property with Right of Survivorship: A form of vesting title to property owned together by
           spouses. This form of holding title shares many of the characteristics of community property but adds the
           benefit of the right of survivorship, similar to title held in joint tenancy. There may be tax benefits for holding
           title in this manner. On the death of an owner, the decedent’s interest ends and the survivor owns the
           property. For example: Bruce Buyer and Barbara Buyer, husband and wife, as community property with right
           of survivorship, or John Buyer and Bill Buyer, spouses, as community property with right of survivorship.

        3.  Joint Tenancy: A form of vesting title to property owned by two or more persons, who may or may not be
           married, in equal interests, subject to the right of survivorship in the surviving joint tenant(s). Title must
           have been acquired at the same time, by the same conveyance, and the document must expressly declare
           the intention to create a joint tenancy estate. When a joint tenant dies, title to the property is automatically
           conveyed by operation of law to the surviving joint tenant(s). Therefore, joint tenancy property is not subject
           to disposition by a will. For example: Bruce Buyer, a married man, and George Buyer, a single man, as joint
           tenants.

           Note: If a married person enters into a joint tenancy that does not include their spouse, the title company
           insuring title may require the spouse of the married man or woman acquiring title to specifically consent to
           the joint tenancy.

        4.  Tenancy in Common: A form of vesting title to property owned by any two or more individuals in undivided
           fractional interests. These fractional interests may be unequal in quantity or duration and may arise at
           different times. Each tenant in common owns a share of the property, is entitled to a comparable portion of
           the income from the property and must bear an equivalent share of expenses. Each co-tenant may sell, lease
           or will to his/her heir that share of the property belonging to him/her. For example: Bruce Buyer, a single
           man, as to an undivided 3/4 interest and Penny Purchaser, a single woman, as to an undivided 1/4 interest,
           as tenants in common.

















                                                            04
   2   3   4   5   6   7   8   9   10   11   12