Different Ways To Hold Title

There are many ways to “hold title” to a home – and your decision on how to own your home has ramifications for items such as property taxes, income taxes, how property can be transferred and how title passes in the event of the death of one or more of the owners. Holding title varies from state to state.
Escrow and Title Insurance
The manner in which you acquire title has a bearing on legal ownership and on transfer in the event of death. Some types of title carry tax consequences. If the home is in the name of one party and the other is not on title, the unnamed party may lose a voice in the say and control of the property, and possess no right to share future profits.
 
Arizona is a community property state. Property acquired by a husband and wife is presumed to be community property unless legally specified otherwise. 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.
 
Parties may choose to hold title in the name of an entity, e.g., a corporation; a limited liability company; a partnership (general or limited), or a trust. Each method of taking title has certain significant legal and tax consequences; therefore, you are encouraged to obtain advice from an attorney or other qualified professional.
 
Most common ways to hold title in Arizona:
 
  • Community Property
  • Joint Tenancy With Right of Survivorship
  • Community Property with Right of Survivorship
  • Tenancy In Common

View Chart on Different Ways to Take Title

HOW TO TAKE TITLE FOR PROPERTIES IN ARIZONA

You should inform your escrow officer and lender as soon as possible of how you wish to hold title to your home and exactly how your name(s) will appear on all documents. This allows your lender and title company to prepare all documents correctly. (Changes later, such as adding or deleting an initial in your name, can delay your closing.) You may wish to consult an attorney, accountant or other professional before deciding how to hold title.

Sometimes only one party of the two or more purchasers can qualify for the mortgage. In that event, it is common to add the omitted individual(s) by recording a quit claim deed after closing. However, always seek legal advice because the loan may contain an alienation clause.