For new homeowners, buying your first home together can be an exciting process to navigate, though it may seem daunting. With piles of paperwork that have to get filled out and numerous options in which you can legally hold title with one another, you may find yourself wondering which option will best suit your lifestyle. Our company can help you explore the three different ways couples can jointly hold title prior to your title insurance purchase.
Tenancy in Common
Tenancy in Common is one kind of joint ownership that two individuals can hold, each of whom owns a percentage of the real estate property with one another. This percentage can be equally or unequally divided depending on how much of the property each individual purchases. Since each tenant has an interest in the real estate, they can use and enjoy the property in its whole. On the downside, there is no right to survivorship with titles held through tenancy in common. This means if an owner dies, that owner’s owned percentage passes on to their heirs rather than the surviving tenant. This can potentially spark legal woes between the surviving tenant and the deceased tenant’s heirs.
Joint tenancy is much like tenancy in common, except joint tenants have an undivided interest in the property WITH the right to survivorship. The right to survivorship can be a more appealing option for couples who are purchasing a home with one another. If an owner were to potentially die, the deceased owner’s share of the property automatically passes to the surviving tenant.
Tenants by the Entireties
While joint tenancy and tenancy in common are suitable options for unmarried couples, tenants by the entireties is an option for holding titles that’s solely available for married couples in Maryland. As a married couple, by holding your home title as tenants by the entireties, you own an undivided interest in the property with the right to survivorship. In the instance of divorces, titles become a tenancy in common with one another.
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, and LinkedIn.