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How to take title in AZ P.1

There are so many different things to consider when buying a home.  How to take title isn’t the first thing that pops up in most buyers’ heads.  Obviously, what you are looking for and the things that will make you feel comfortable are important.  But, once you decide on a property, what about the process involved to actually get you into that new home?

 

One aspect is how to take title.  There are numerous ways in which a buyer or buyers can take title.  In many states, all of this is handled by attorneys.  In Arizona, it is not necessary to use an attorney, but of course that option is always available to any buyer.  Each method of taking title has specific legal and tax consequences, therefore, it may be in your best interests to seek advice from and attorney, accountant or other qualified professional.

 

The ways in which once can take title in Arizona are: Community Property; Community Property with Right of Survivorship, Joint Tenancy and Tenancy in Common.  In upcoming blogs, I’ll cover each of these.  Please note that I can’t recommend what will be best for you and your particular circumstances, but hopefully this information will help you determine what makes sense for you.

 

Community Property requires a valid marriage between two persons.  Each spouse holds an undivided one-half interest in the estate.  One spouse can not partition the property by selling his or her interest.

 

Signatures of both spouses are required to convey the property or to encumber it.  Each spouse can devise (will) one half of the community property.  Upon death, the estate of the decedent must be “cleared “ through probate, affidavit or adjudication.  Both halves of the community property are entitled to a stepped up tax basis as of the date of the death.  A stepped up basis means that the tax basis of the property left to the heir(s) is  to be determined by the market value at the time of the benefactor’s death rather than at the benefactor’s original cost.

 

It is important to note that Arizona is a community property state.  Property acquired by a husband and wife is presumed to be community property unless legally specified otherwise.  Even if married, 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,

 

The next installment of how to take title will cover the differences between community property and community property with right of survivorship.

 

Adam Tarr PC
Citywide Real Estate
480-236-7374

Phoenix, AZ 85050

www.WeAreAZRealEstate.com

 

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