Whenever you are purchasing property, selling property, or creating an estate plan, it is imperative that you take into account how the property is being held. In fact, in Maryland, when more than one person is going to have an interest in the property, there are a few things to know. Title can be held by the parties in one of the following three ways.
Tenants In Common
When it comes to this type of co-tenancy, each party owns their own share of the property as an individual. This is very important if and when a divorce occurs. This is also imperative when there is a death among co-owners. If one co-tenant dies, her interest passes onto the heirs. In this type of tenancy, co-tenants can hold title in unequal shares. In Maryland, title is presumed to be held as tenants in common unless of course the owners are married, or it is otherwise specified in the deed.
Tenants By Entirety
This is another form of concurrent ownership that can only be held by a married couple. In fact, a tenancy by the entirety is usually the presumption made in Maryland for married persons. Even if it is not specified, Maryland will tend to assume that a husband and wife who own property own it via a tenancy by the entirety. With a tenancy by the entirety, property is immune from creditors of one spouse (except for a federal tax lien). However, a tenancy by the entirety can be destroyed forever and swiftly converted to tenants in common with a divorce decree between the two parties.
Joint tenancy is basically co-tenancy that includes rights of survivorship for non-married individuals. However, in Maryland, there is a presumption against joint tenancy. As a result, the intention to create a joint tenancy must be explicit. The deed must state that the property in question is owned in joint tenancy otherwise, a tenancy in common will likely be presumed for an unmarried couple.
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 and sell 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, LinkedIn, and Google+.