The 4 Most Common Ways Houston First Time Home Buyers Can Hold Real Estate Title in Texas

Good afternoon, the form of ownership created by the purchase of real estate, is determined by the manner in which the property is deeded. In Texas, ownership of real estate can be held in four different ways. Ownership in severalty; tenancy in common; joint tenancy; and community property.

Regarding Co-Ownership, property held by two or more unmarried owners may be held in two different ways. The first and most common type of ownership is called tenancy in common. The second and less popular is joint tenancy. We will begin this reading with ownership in severalty before moving on to the others.

Ownership in severalty - Also known as sole ownership, this option is ownership by an individual or entity. For example, a single men, a single women, or a corporation. While a corporation may be composed of many shareholders, the law view it as a single legal entity. Example: Chase Inc. purchased a home for rental and investment purposes. Chase interest is an estate in severalty. Another example, Nabi, a single person purchased a vacation condo. Nabi's interest is an estate in severalty.

Tenancy in common - Is ownership of real estate by two or more entities in undivided interest. Example, a 300 acres lot willed to 6 brothers. Because the interest is undivided, all co-owners share the right of possession of the property. If a deed does not make the type of joint ownership clear, Texas courts will always assume that the owners are tenant in common. Partition of the property may be done voluntarily or by order of the court.

• Interest may be acquired at the same time or at different times.

• Owner's interest in the property may be in equal or unequal shares.

• Interest may be dispose of without affecting the interest of the other tenants in common.

• Interest may be acquired from different source or same source.

• Parties to the tenancy in common may choose to mortgage or lease their respective interest without affecting the interest of the other tenants in common.

• Tenancy in common is an estate of inheritance, and title passes at probate. Interest will pass to heirs or beneficiaries named in the will upon death.

Joint tenancy - Also referred to as a poor man's will, is a less popular type of joint ownership. Joint tenancy is when two or more people hold title to real estate jointly, with equal rights to enjoy the property during their lives. In the event of the death of one of the partners, their rights of ownership pass to the surviving tenant(s). One of the good things about this option is that, parties does not have to be married or related. However, in order to get out of the title, the court must be petitioned to divide the property or order the sale of the property.

• When a joint tenant dies, his or her share is equally divided among the surviving joint tenants immediately. A will is not required for this to happen.

• Owners must acquire their interest at the same time.

• Owners must acquire their interest from the same source (will, contract, deed, etc.)

• They must hold equal shares.

• Possession of the property must be shared equally.

Community property - Is a concept of Spanish law where marriage is regarded as a partnership, rather than husband and wife becoming one, as in English law. Under community property laws, most property acquired during the marriage is owned equally by both spouses and cannot be conveyed or sold without the signature of both parties. Real estate that is acquired during a common-law marriage may also be considered community property.

Property owned by a married person, that is not community property, is called separate property. Not all states adhere to the same concepts of how real estate ownership is held. For example, only 9 states including Texas adhere to the concept of community property. While another form of real estate ownership known as tenancy by the entirety is not recognized in Texas

Thank you so much for stopping by. Until next time...Diana