Common Ways of Holding Title to Real Property in Arizona

Many people ask me what is the best way to take title to the property they are about to purchase. I don’t have the answer as the answer truly varies from case to case. The best person to ask about how you should take title to a property is your attorney, your estate planner and your accountant. Below I have listed the common ways that title is held in the state of Arizona. This information has been provided by Great American Title Agency. My thanks go out to Great American title for their assistance in providing this information.

Common Ways of Holding Title to Real Property in Arizona

COMMUNITY PROPERTY:

Arizona is a community property state. This is statutory presumption that all property acquired by husband and wife is community property. Community property is a method of co-ownership for married persons only. Upon death of either spouse, the interest of the deceased spouse will pass by either a will or in testate succession.

COMMUNITY PROPERTY WITH RIGHT OF SURVIVORSHIP:

A version of holding title between married persons that vest title to real property in the surviving spouse when it is expressly declared in the Deed. This vesting has the tax benefits of holding title as “community property” and the probate avoidance features of “survivorship rights”.

JOINT TENANTS WITH RIGHT OF SURVIVORHIP:

Joint Tenancy with Right of Survivorship is a method of co-ownership that gives title to the real property to the last survivor. Title to real property can be acquired by two or more individuals either married or unmarried. If a married couple acquires title as joint tenants with right of survivorship, they must specifically accept the joint tenancy to avoid the presumption of community property.

TENANTS IN COMMON:

A method of co-ownership where parties do not have “survivorship rights” and each owns a specific interest in the entire title.

SOLE AND SEPARATE:

Real property owned by a spouse before marriage or any acquired after marriage by gift, descent or specific intent. If a married person acquires title as sole and separate property, his/her spouse must execute a disclaimer deed.

CORPORATION:

Title may be taken in the name of a corporation provided that the corporation is duly formed and in good standing in the state of its incorporation.

GENERAL PARTNERSHIP:

Title may be taken in the name of a general partnership duly formed under the laws of the state of the formation of the partnership. A partnership is defined as a voluntary association of two or more persons as co-owners in a profit business for profit.

LIMITED PARTNERSHIP:

A partnership formed by two or more persons under the laws of Arizona or another state having one or more general partners and one or more limited partners. A certificate of limited partnership must be filed in the office of the Secretary of State, a certified copy of which must be recorded.

For additional information on homes available in the Phoenix and Scottsdale Metro area please call:

Tim Broderick @ 602-741-0862 or toll free @ 888-481-4447 ext. 126.

You can also reach me by email: tim@phoenixpowersearch.com.