Page 17 - Homeowners Manual - San Mateo County

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.

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