Ways to take title
Many people don't realize that they have choices regarding how to take title to property in Arizona. Arizona is a community property state, but that doesn't mean that is the way you must take title to a home. We can't really advise you on the best way to take title, for that you should consult an attorney. But the following are general explanations of ways to take title.
Community Property: Only persons married to each other may own real property as community property. Each spouse owns an undivided one-half interest in their community property. Each spouse may provide by will for the disposition of his or her community property interest. However, Arizona community property law requires both spouses to join in a conveyance or encumbrance of community real property. Property acquired by a spouse during a marriage is presumed to be community property except for property acquired by gift, devise, or descent. A married couple seeking to hold title to real property located in Arizona in a form other than community property must do so by specifically accepting another form of co-tenancey.
Community Property with Right of Survivorship (CPROS): Like simple community property, only persons married to eache other may take title as CPROS. One spouse is entitled to the whole of the property upon the death of the other and both halves of the community property receive a new tax basis equal to the fair market value as of the date of the death. Evidence on the intent of a married couple to hold title to real property as CPROS must be in writing in order to avoid the presumption of standard Community Property. When parties holding property as CPROS dissolve or annul thei marriage, the property reverts to tenancy in common.
Joint Tenancy with the Right of Survivorship JTw/ROS): Two or more natural persons may hold title to property as joint tenants with the right of survivorshipm provided that they share the four unities of time, title, interest and possession. That is they acquire their joint ownership at the same time, by the same tiitle, have identical interests in duration, and share equal rights of possession. Evidence of the intent of a married couple to hold title to real property as joint tenants w/ROS must be in writing so as to avoid presumption of community property. If one joint tenant transfers his/her interest, this destroys the joint tenancy estate and the co-tenants bcome tenants in common. Upon the death of a joint tenant, his interest is transferred outside probate to the surviving joint tenants.
Tenancy in Common: Two or more persons may hold title to real property as tenants in common (married couples must community property and specifically take title as tenants in common). Each owner has a distinct and proportionate interest without the right of survivorship. The only unity involved is possession. Their undivided interest need not be equal, but the aggregate can't exceed 100% of the ownership interest. A tenant in comon may transfer his undivided interest without destroying the co-tenancy estate.
We hope that you find this informative. If you are interested in buying or selling property in the Phoenix metropolitan area, please contact us for assistance.
Adam Tarr,ABR, e-Pro
Sharon Kotula, ABR
Your Phoenix Area Real Estate Source
RE/MAX Excalibur
Scottsdale, AZ
480-483-3333
info@WeAreAZRealEstate.com