Types of Property Ownership
There are five types of property ownership. The use of these types can depend on the state and the law where the property is located. Each type of ownership also dictates the amount of ownership and how ownership is transferred after death. It does not matter where the owner resides.
Other People Are Reading
-
Sole Owner
-
The sole owner type of property ownership is where a single person owns the property. This single person can do whatever they wish with the property without needing permission from another party. If the person dies without a will, the property goes to that person's heir as deemed by the state law where the property is.
Joint Tenancy
-
In joint tenancy property ownership, each person who has a share of ownership in the property owns an equal share of the property regardless of the number of share holders. If one owner dies, the share passes to the remaining owners until there is only one owner remaining. In a marriage situation joint tenancy means that if either spouse dies, even if a will states that the property should pass to a third person, the surviving spouse will get the property first.
-
Common Tenancy
-
The common tenancy type of property ownership means the property is owned by two or more parties simultaneously. In this type of ownership, the shares of each party are not always equal. If one of the parties dies, the interest in the property held by that party passes to the heirs named by that party. Those heirs then become shareholders of the property equal to the original partners of the property.
Tenancy in Entirety
-
The tenancy in entirety is not legal in every state. Some states hold a special form of this ownership where the tenants are husband and wife, where each owns an equal half of the property. Neither the husband nor wife can dispose of their portion of the property without the consent from the other spouse. If one spouse dies, the remaining portion becomes the property of the surviving spouse regardless of any wills.
Community Property
-
The type of property ownership called community property is only used in nine states: Arizona, California, Indiana, Louisiana, Nebraska, New Mexico, Texas, Washington and Wisconsin. In these states, if you have the property before you are married, the property is yours alone; any property you acquire while married is considered community property equally owned between you and your spouse. Personal gifts and inheritances received after marriage are still owned by you alone.
-
