In connection with your real estate purchase, it is very important that you decide exactly how you will acquire title. Listed below are brief explanations of different ways to take title in Arizona. The manner in which you take title may have significant legal and tax planning consequences. You should therefore contact your attorney and/or tax consultant on which manner best suits your needs. The material provided below is for your information only. It is not the intention of Nextage Realty Professionals and its agents to provide legal or tax advice to you on the manner in which to take title.
Community Property (married couples only):
Arizona is a community property state. This means that, by statute, all property acquired during marriage is presumed to be community property, except that acquired by gift, descent or devise, or unless another form of ownership is expressly stated. The interest of a deceased spouse passes by will or intestate succession, generally through probate proceedings.
Community Property with Right of Survivorship (married couples only):
Co-ownership by husband and wife when expressly stated in the vesting document. Upon death of one spouse, title vests immediately in the surviving spouse.
Joint Tenants with Right of Survivorship:
Co-ownership between individuals in which title to a decedent’s interest passes to the surviving joint tenants without the need for probate proceedings. The last surviving joint tenant acquires full title to the property.
Tenants in Common:
Co-ownership between individuals and/or entities who do not have survivorship rights. Each party owns a specific, undivided interest in the property. If fractional interests are stated, they must total 100%. If interests are not stated, equal shares are presumed.
Sole and Separate (married individual only):
Refers to real property acquired by a spouse prior to marriage or acquired after marriage by gift, descent or devise, or by expressly stated intent. When a married person acquires title as sole and separate property, his/her spouse must execute a disclaimer deed.
Refers to an individual who has never been married.
Refers to an individual who has been, but is not currently, married.
Title can be vested in individuals or entities acting as trustees pursuant to a written trust agreement.
Corporations/Partnerships/Limited Liability Companies:
Title to real property can also be vested in entities that are duly formed and in good standing. Such entities include corporations, general partnerships, limited partnerships and limited liability companies.