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Common Ways To

Hold Title - Arizona

Arizona is a community property state. Property acquired by spouses is presumed to be community property unless legally
specified otherwise. Title may be held as “Sole and Separate.” If a married person acquires title as sole and separate, his or her
spouse must execute a disclaimer deed to avoid the presumption of community property. Parties may choose to hold title in
the name of an entity, e.g., a corporation; a limited company; a partnership (general or limited), or a trust. Taking title may have
significant tax and legal ramifications; please consult your attorney and/or CPA.

COMMUNITY
COMMUNITY JOINT TENANCY TENANCY IN PROPERTY RIGHT
PROPERTY COMMON
OF SURVIVORSHIP

Requires a valid marriage Requires a valid marriage Parties need not be married; Parties need not be married;
PARTIES between two people. between two people. may be more than two joint may be more than two
tenants. tenants in common.

Each spouse holds an Each spouse holds an Each joint tenant holds Each tenant in common
undivided one-half interest undivided one-half interest an equal and undivided holds an undivided fractional
DIVISION in the estate. in the estate. interest in the estate, unity of interest in the estate. Can be
interest. disproportionate, e.g. 60%
and 40%
One spouse cannot partition One spouse cannot partition One joint tenant can Each tenant’s share can be
TITLE the property by selling his or the property by selling his or partition the property by conveyed, mortgaged or
her interest. her interest. selling his or her interest. devised to a third party.

Requires signatures of Requires signatures of Requires signatures of all Requires signatures of all
CONVEYANCE both spouses to convey or both spouses to convey or joint tenants to convey or joint tenants to convey or
encumber. encumber. encumber the whole. encumber the whole.

• Each spouse can devise • Estate passes to the • Estate passes to surviving • Upon death, the tenant’s
(will) one-half of the surviving spouse outside joint tenants outside of proportionate share
community property. of probate. probate. passes to his or her heirs
• Upon death, the estate • No court action required • No court action required by will or intestacy.
of the decedent must be to “clear” title upon the to “clear” title upon the • Upon death the estate
“cleared” through probate, first death. death of joint tenant(s). of the decedent must be
EFFECT OF DEATH
affidavit or adjudication. • Both halves of the • Deceased tenant’s share is “cleared” through probate,
• Both halves of the community property are entitled to a “stepped up” affidavit or adjudication.
community property are entitled to a “stepped up” tax basis as of the date of • Each share has its own tax
entitled to a “stepped up” tax basis as of the date of death. basis.
tax basis as of the date of death.
death.

08/2021 | © 2021 Old Republic Title | OR1688-DI-AZ |
Old Republic Title is providing this information as a free client service
and makes no warranties or representations as to its accuracy.
Old Republic Title strongly recommends consumers confer
with their title insurer as underwriting requirements vary among
companies and further, obtain guidance and advice from qualified
professionals, including attorneys specializing in Real Property, Trusts
and/or Title Insurance to get more detailed, and current, information
as to any particular situation affecting them.