How to hold title

Depending on what your long term goals are for the home, how to hold title on the property can be crucial.

If you hold title as joint tenants, your share of the property will automatically belong to the other person on title in the event of your death. You cannot will it to someone else.

How home buyers hold title to a property is decided by the buyers at settlement.

You have several options as to how to hold title, especially where co-ownership interests are involved; in which case you should research and make sure you understand the different ways you can hold title, especially when it comes to the rights to the property- particularly in respect to the inheritance of the property should any original title holders pass away.

That being said, it is generally possible to change the manner of title held at a later time by recording the appropriate deed with your local county records office.

It is often easier for investors to close loans in their name and then transfer them to their LLC or S Corp after closing.

If you are or will be the sole owner there are basically two ways to hold title: sole ownership or in a living trust. If you buy property with others, you have more options and it can become complicated. Consulting with a knowledgeable attorney, who can help you determine the best way for you to hold title, is advisable because the manner in which you hold title can have legal and tax ramifications.

» DISCLAIMER: The information contained in this article on 'How to hold title' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.