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When you purchase or refinance a home, one important decision is how ownership (title) is held. This affects your legal rights, inheritance, taxes, and even liability.
While your attorney or financial advisor should guide your final decision, this overview will help you understand your options and what to expect.
Common Ways to Hold Title
There are several common ways to hold title, each designed for different ownership situations.
1. Sole ownership
Sole ownership is the simplest structure and is used when one individual owns the property. It offers full control, but there is no automatic transfer upon death, which means the property may need to go through probate.
2. Joint tenancy with right of survivorship
Joint tenancy with right of survivorship is commonly used by spouses or partners. In this structure, ownership automatically transfers to the surviving owner, avoiding probate. However, it requires equal ownership and offers limited flexibility for estate planning.
3. Tenants in common
Tenants in common allows multiple owners—including non-spouses—to hold different ownership percentages. This structure is more flexible and allows ownership to be passed to heirs, but it does not include automatic survivorship and may still require probate.
4. Tenancy by the entirety
Tenancy by the entirety, which is only available in certain states, is designed for married couples. It includes survivorship rights and may offer protection from individual creditors. However, it is limited to legally married couples and is not available everywhere.
5. Trust ownership
Trust ownership is often used for estate planning purposes. Holding property in a trust can help avoid probate and provides greater control over how assets are distributed, but it requires legal setup and ongoing administration.
State-Specific Considerations
How title is held—and who is involved in the process—can vary depending on the state where the property is located.
1. Attorney States
In attorney states (Connecticut, Delaware, Georgia, Massachusetts, New York, North Carolina, South Carolina, and West Virginia), a real estate attorney is typically involved in reviewing documents and advising on title. You can expect legal review to be part of the closing process, and your attorney will often guide how title is held. UnrealFi will coordinate with your attorney to confirm the ownership structure.
2. Non-Attorney (Title Company) States
In non-attorney (title company) states (Colorado, Florida, Texas, Arizona, Illinois, Pennsylvania, and Michigan), title companies and escrow officers manage the closing process. In these states, legal guidance is optional unless you choose to hire an attorney. The title company handles the documentation, and UnrealFi coordinates directly with them.
3. Community Property States
In community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), ownership rules for married couples differ. Property acquired during marriage is generally considered jointly owned, and a spouse may have ownership rights even if they are not on the loan. Additional vesting options may also be available.
4. States That Allow Tenancy by the Entirety
Some states, including Florida, Illinois, Pennsylvania, Colorado, Maryland, and Virginia, allow tenancy by the entirety. This option is limited to legally married couples, includes survivorship rights, and may provide protection from individual creditors depending on the state.
Important Reminders
Not all ownership options are available in every state, and state laws can affect taxes, inheritance, and liability. If you are unsure, you should consult a real estate attorney or your title company.
Best Practice
It is strongly recommended that you confirm how you want to hold title early in the process.
If you plan to include another person on title, they typically need to be included in the purchase contract upfront. Waiting too long can lead to delays, require contract changes, or impact your closing timeline.
For refinances, ownership is usually kept the same unless changes are discussed early.
How UnrealFi Helps
UnrealFi simplifies this process by confirming your title preferences early, coordinating with your attorney or title company, and ensuring alignment across your contract, loan, and closing documents.
This approach helps avoid delays, last-minute changes, and closing issues while delivering a smoother experience.
