HOW SHOULD I TAKE OWNERSHIP OF THE PROPERTY I AM BUYING?
This important question is one California real property purchasers ask their real estate, escrow and title professionals every day. Unfortunately, though these
professionals may identify the many methods of owning property, they may not recommend a specific form of ownership, as doing so would constitute practicing law.
Because real property is among the most valuable of assets, the question of how parties take ownership of their property is of great importance. The form
of ownership taken—the vesting of title—will determine who may sign various documents involving the property and future rights of the parties to the
These rights involve such matters as: real property taxes, income taxes, inheritance and gift taxes, transferability of title and exposure to creditor’s
claims. Also, how title is vested can have significant probate implications in the event of death.
The California Land Title Association (CLTA) advises those purchasing real property to give careful consideration to the manner in which title will be held. Buyers
may wish to consult legal counsel to determine the most advantageous form of ownership for their particular situation, especially in cases of multiple owners
of a single property.