Page 28 - Home Buyers and Sellers Guide - Hawaii

COMMON WAYS TO HOLD TITLE IN HAWAII

TENANT IN TENANCY IN JOINT TENANTS BY THE
SEVERALTY COMMON TENANCY ENTIRETY

Property held by 2
Property held by one Property held by 2 or or more individuals Property held by
Definition person, severed from all more persons, with no (not corporations, spouses, with rights
others. right of survivorship. partnerships, etc.) with of survivorship.
right of survivorship.

Express intention plus Express intention,
By express act; also by 4 unities of time, title, only spouses.
Creation Any transfer to one failure to express the interest and possession Divorce automatically
person.
tenancy. (with statutory results in tenants in
exception). common.

Possession Total. Equal right of Equal right of Equal right of
possession. possession. possession.

Each co-owner has a One title to the whole
separate legal title to property since each
Title One title to one entity. his undivided interest, tenant is theoretically One title in the
will be equal interests deemed owner of whole; marital unit.
unless expressly made must be equal undivided
unequal. interests.

Each co-owner’s Conveyance of one co-
interest may be
No restrictions (check owner’s interest breaks Cannot convey
Conveyance for release of marital conveyed separately his tenancy; purchaser without consent of
rights, if any). by its owner; purchaser becomes tenant in spouse.
becomes tenant in common.
common.

No probate and can’t
Decedent’s fractional be disposed of by will; Closing Costs
interest subject to property automatically
probate and included in belongs to surviving
Entire property subject gross estate for federal co-tenants (last one Right of survivorship
to probate and included
Effect of Death in gross estate for and state death taxes. holds in severalty). so no probate. Same
federal and state death The property passes Entire property included death taxes as joint
taxes. by will to devisees in decedent’s gross tenancy.
or heirs, who take as estate for federal estate
tenants in common. No tax purposes minus % USUAL AND CUSTOMARY HOME BUYER’S CLOSING COSTS
survivorship rights. attributable to survivor’s
contribution. IN THE STATE OF HAWAII

Joint tenant’s interest When purchasing a home using a mortgage, you can expect to incur closing costs. A breakdown of the closing
also subject to execution
Co-owner’s fractional sale. Joint tenancy is costs will be provided during the escrow process and the funds will be due at the close of escrow.
interest may be sold to Only a creditor of
Creditor’s Rights Subject to creditor satisfy his creditor who broken and purchaser both spouses can
claims. becomes tenant in The following are some of the closing costs you can expect to pay:
then becomes tenant in execute on property. • Title insurance premium
common. common. Creditor gets
nothing if debtor dies • Escrow fees
before sale. • Notary fees
• Recording fees
Presumed Favored in doubtful Not favored so must be Must be expressly • New loan charges
By Law None. cases; presumed to be expressly stated. stated.
equal interests. • Inspection fee (if applicable)
• Prorated property taxes
• Homeowner’s Association Transfer Fee (when applicable)
• Homeowner’s Insurance Premium (Hazard & Hurricane)

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