There are many types of ownership of real property. Each type has its some merits and demerits. And obviously each type can have its own impact on how the property is to be transferred and how it can be financed. An overview of different types of property ownership titles is given below:
Joint Ownership
It is a form of ownership where two or more partners jointly own the property. They have equal rights and in case of the death of a partner the ownership title goes to the remaining partners. Benefit of this title is that the partners don’t need to be married or relatives. The drawback is that any gain on the sale of property is to be mutually approved by all the partners.
Common Ownership
In common ownership two or more people jointly own the property throughout their lives. It is different from joint ownership as in this type of ownership each owner hold its part of the property individually. In case of the death of the owner, property ownership is transferred to his heirs.
Ownership by Entirety
It is a joint ownership of real property where the owners of the property are husband and wife. They are legally considered one person. In case of death of spouse the title of ownership automatically transferred to the other spouse.
Sole Proprietary
In this type of ownership, the title of the real property is held by one person. Singles, married men or married women can have properties with the title of sole ownership.
Community Ownership
In community ownership wife and husband are the co-owners of a real property. Any of them can sell the one half of the property without consulting the other partner. Moreover if a partner wishes to transfer the property to the other party he can do it.
Community Owner In Case of Survivorship
This form of ownership occurs if one of the spouses of real property under the community ownership passes away. The right of ownership is then transferred to the surviving partner. This type of ownership only takes place in California, Wisconsin, Nevada, Arizona and Texas.
Corporate Ownership
The real property when owned by a corporation or a company is known as the Corporate Property.
Property Hold under Partnership
When two or more persons make a firm for the purpose of doing business this process is known as Partnership. And under partnership the partners can jointly own a real property.
Property Hold By a Trust
A trust can also own a real property. A trustee is appointed by the trust to manage and control the affairs of the property.
Last Words
The methods and procedure of ownership titles always differ from state to state. Whether it is an individual or a corporation they should try to check out the methods and conditions of different types of holding titles before owning the property.
