Page 18 - CTT buyer Seller 2021_English_Flipbook_1

VESTING: COMMON WAYS OF HOLDING TITLE
CHICAGO TITLE CALIFORNIA BUYER & SELLER GUIDE ®
For use in CALIFORNIA
Community Property
Joint Tenancy
Tenancy in Common
Partnership Holding Title
Title Holding Trust
Community Property Right of Survivorship
Registered Domestic Partners
PARTIES
Married spouses or domestic partners
Any number of persons (can be married spouses or registered domestic partners)
Any number of persons (can be married spouses or registered domestic partners)
Only partners (any number)
Any natural person who has capacity to take and hold property may be a trustee. A domestic corporation may act
in any trust capacity if properly authorized
Married spouses or domestic partners
Only partners that are registered with the California Secretary of State’s domestic Partners Registry.
DIVISION
Ownership and managerial interests are equal (except control of business is solely with managing spouse)
Ownership interest must be equal
Ownership can be divided into any number of interests equal or unequal
Ownership interest is in relation to interest in partnership
Ownership is a personal property interest and can be divided into any number of interests
Ownership and managerial interests are equal
Ownership and managerial interests are equal (except control of business is solely with managing domestic partner)
TITLE
Title is in the “community.” Each interest is separate but
Sale or encumbrance by joint tenant severs joint tenancy
Each co-owner has a separate legal title to his/her undivided interest
Title is in the “partnership”
Legal title is held by the equitable title
Title is in the “community,”
Title is in the “community.” Each interest in separate but
POSSESSION
Both co-owners have equal management and control
Equal right of possession
Equal right of possession
Equal right of possession but only for partnership purposes
Right of possession as provisions
Both co-owners have equal management and control
Both co-owners have equal management and control
CONVEYANCE
Personal property (except “necessaries”) may be conveyed for valuable consideration without consent of other spouse; real property requires written consent of other spouse, and separate interest cannot be conveyed except upon death
Conveyance by one co-owner without the others breaks the joint tenancy
Each co-owner’s interest may be conveyed separately by its owner
Any authorized partner may convey part or entire interest
in partnership property for partnership purposes. Purchaser acquires interest that partnership owned
Designated parties within the trust agreement authorize the trustee to convey property. Also, a
in the trust may be transferred
Right of survivorship may be terminated pursuant to the same procedures by which a joint tenancy may be severed
Personal property (except “necessaries”) may be conveyed for valuable consideration without consent of other partner; real property requires written consent of other partner, and separate interest cannot be conveyed except upon death
PURCHASER’S STATUS
Purchaser can only acquire whole title of community; cannot acquire a part of it
Purchaser will become a
tenant in common with the other co-owners in the property as to the purchaser’s interest. Other owners may remain joint tenants
Purchaser will become a tenant in common with the other co-owners in the property
Purchaser can aquire part of entire interest
in partnership property. If in part, the purchaser will become a tenant in common with the partnership
A purchaser may obtain
by assignment or may obtain legal and equitable title from the trust
Purchaser can only acquire whole title of community; cannot acquire a part of it
Purchaser can only acquire whole title of community; cannot acquire a part of it
DEATH
On co-owner’s death, 1/2 belongs to survivor in severalty. 1/2 goes by will to descendant’s devisee or by succession to survivor
On co-owner’s death,
his/her interest ends and cannot be disposed of by will. Survivor owns the property by survivorship
On co-owner’s death, his/her interest passes by will to devisee or heirs. No survivorship rights
On partner’s death, his/ her partnership interest passes to the surviving partner pending liquidation of the partnership. Share of deceased partner then goes to his/her estate
may be named in the trust agreement, eliminating the need for probate
Upon the death of a spouse, his/her interest passes to the surviving spouse, without administration, subject to the same procedures as property held in joint tenancy
On co-owner’s death 1/2 belongs to survivor in severalty. 1/2 goes by will to descendant’s devisee or by succession to survivor
SUCCESSOR’S STATUS
If passing by will, tenancy in common between devisee and survivor results
Last survivor owns property
Devisee or heirs become tenants in common
Heirs or devisee have rights in partnership
property
agreement but generally the successor trustee continues to administer the trust or will distribute the trust assets to the
Surviving spouse owns property
If passing by will, tenancy in common between devisee and survivor results
CREDITOR’S RIGHTS
Property of community is liable for debts of either spouse, which are made before or after marriage. Whole property may be sold on execution sale to satisfy creditor
Co-owner’s interest may be sold on execution sale to satisfy his/her creditor. Joint tenancy is broken, creditor becomes a tenant in common
Co-owner’s interest may be sold on execution sale to satisfy his/ her creditor. Creditor becomes a tenant in common
Partner’s interest may be be sold separately
by “Charging Order” by his/her personal creditor, or his/her share
by a personal creditor. Whole property may be sold on execution sale to satisfy partnership creditor
Creditor may seek an order for execution sale
Property of community is liable for debts of either which are made before or after marriage; whole property may be sold on execution sale to satisfy creditor
Property of community is liable for debts of either partner, which are made before or after registration as domestic partners. Whole property may be sold on execution sale to satisfy creditor
or may seek an order that the trust estate be liquidated and the proceeds distributed
PRESUMPTION
Strong presumption that property acquired by married spouses is community
Must be expressly stated
Favored in doubtful cases except married spouses
Arise only by virtue or partnership status in property placed in partnership
A trust is expressly created by an executed trust agreement
Must be expressly stated
Must be expressly stated
The comparison above is provided for informational purposes only, and does not constitute legal advice or create an attorney-client relationship. Please consult your attor Revised 06/2021
18