If you’re looking to purchase Santa Cruz real estate, you’ll probably come across many terms you don’t know — including concurrent ownership. This essentially means that more than just one individual can own property. You might be extremely interested in the details of concurrent ownership if you’re purchasing a property with another person, are married or have children.
It’s always good to educate yourself so you can assess all your options (and maybe show off to your Santa Cruz real estate agent and loved ones if you happen to come across this term during your house hunt). Below is the basic breakdown of the four main types of concurrent ownership.
1. Joint Tenancy with the Right of Survivorship – This means that all owners retain equal share of the property. In the event that one of the owners dies, their share of the property is distributed equally among the remaining owners. Be sure to use specific language in your deed or will, otherwise the property might be considered tenancy in common.
2. Tenancy in Common – One or more people own the property, but the shares might not be equal. Also, if one owner dies, the property is passed by will or inheritance, not necessarily to the other owners.
3. Tenancy by Entirety – This type of concurrent ownership is usually between a husband and wife. It states that the entirety of the property passes to the spouse upon one of their deaths. A divorce in most cases will change the tenancy of entirety to tenancy in common.
4. Community Property – Not all states recognize this type of joint ownership. However, if your state does, then all property acquired during a marriage is communal, while anything owned before the union or anything inherited or gifted would remain separate property in the case of divorce.
By knowing the various definitions of concurrent ownership, you’ll be able to ensure that any commonly owned property will be distributed the way you see fit in case of death.
Whether you’re thinking about purchasing Santa Cruz real estate by yourself or with multiple people, I’d love to help. Please call me today at 831.662.6522 or email me at Lauren@LaurenSpencer.com for more information.
For additional information please visit my website at www.MySantaCruzRealEstate.com.