Before you reach the closing day, you will want to make a decision as to how you will "hold title" to the Pennsylvania property. This decision has legal, tax and estate planning ramifications. Therefore, it may be prudent to consult an attorney or certified public accountant.
The following information is supplied for informational purposes and should not be relied upon as legal definitions.
Buying Alone
Sole Ownership
A single individual who has not been legally married.
An unmarried individual who was married and is now legally divorced.
A married individual who wishes to acquire title in his or her name alone. At the time of closing, the spouse of the buyer will be required to specifically disclaim or relinquish his or her right, title and interest to the property.
Living Trust A living trust is created while an individual is alive and gives the individual control of the distribution of his or her estate. The individual transfers ownership of his or her property and assets into the trust.
Buying with Others
Tenancy in Common Enables each partner in the property to sell, lease or will to his/her heirs that share of the property belonging to him/her.
Who can take title? Any number of individuals.
Ownership Division: Any number of interests, equal or unequal.
Who holds title? A separate legal title to his undivided interest is held by each co-owner.
Possession: Equal right of possession.
Joint Tenancy Property owned by multiple individuals where if one of the owners dies, the remaining owners acquire the share of the deceased owner automatically.
Who can take title? Any number of individuals.
Ownership Division: Interests cannot be divided.
Who holds title? There is only one title to the whole property.
Possession: Equal right of possession.
Community Property Property owned equally between a husband and wife. Each must sign all agreements and documents of transfer.
Who can take title? Only a husband and wife.
Ownership Division: Interests are equal.
Who holds title? Similar to title being in a partnership, title is held in "community."
