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REAL ESTATE TITLE IN CALIFORNIA
A People’s Choice can save you hundreds of dollars by preparing your real
estate documents instead of an expensive real estate attorney!
To learn about the different types of transfer deeds available in California, click here.
How to take title to California real estate:
In California, there are several ways to hold title to real property. Property
can be owned by individuals as sole others or as co-owners. Legal entities can also hold title to real property. If you have
any questions as to which method is best, you should consult an attorney.
Sole Ownership: Sole ownership means that the property is owned by one person or entity. There are four
different types of sole ownership. Ownership can be held by:
- A Single Person: An individual who is not and has never been legally married. Example: Jane Doe, a single woman.
- An Unmarried Person: An individual who was previously married but not legally divorced, or who has
been in a registered domestic partnership that has been legally dissolved. Example: Jane Doe, an unmarried woman.
- A Married Person (or Registered Domestic Partner) as their Sole and Separate Property: When
a person is married or has a registered domestic partner and desires to purchase, they can hold title to
California real estate in his or her name alone. Usually the spouse or registered domestic partner provides
consents to this by executing and recording a Quit Claim Deed. Example: Jane Doe, a married woman, as
her sole and separate property or Jane Doe, a registered domestic partner, as her sole and separate property.
- A Legal Entity: An entity such as a corporation, LLC, partnership or other such legal entity. Example:
Dawson Engineering, Inc., a California corporation.
- Revocable Living Trust: Real estate in California can be held by a revocable living trust. Title to the
California real estate is held by the Trustee or Trustees of the trust who retains complete control over the
trust and has complete power of direction over the real property. Holding title to real property held by a
trust will allow the transfer to the beneficiaries of the trust after the death of the trustee without the need
to go through probate. Example: Jane Doe, Trustee of the Jane Doe Revocable Trust under Declaration of Trust dated March 1, 2009.
Co-Ownership by Person or Entity: Co-ownership means that the property is owned by more than one person
or entity. There are several different types of co-ownership. Ownership can be held as:
- Community Property: In California, community property is defined in California Civil Code as property
purchased either by a husband and wife (or registered domestic partners) together or by a husband or
wife (or registered domestic partners) individually. In California, real estate acquired and held by a married
person is deemed to be community property of the husband and wife unless otherwise stated. The
husband and wife (or registered domestic partners) both have the right to dispose of one-half of the
community property under community property law. The one-half of the community property will
automatically go to the surviving spouse if the deceased spouse did not otherwise dispose of the
community property to someone besides his or her spouse. Example: John Smith and Mary Jane Smith, as husband and wife as community property.
- Community Property with Rights of Survivorship: When property is expressly declared in the
transfer document to be community property with rights of survivorship, the property will, upon the death
of one of the spouses (or registered domestic partners), pass to the survivor without going through
probate. Example: James Friedman and Sally Friedman, as husband and wife as community property with Rights of Survivorship.
- Joint Tenancy: California Civil Code defines joint tenancy as a joint interest owned by two or more
persons in equal shares. The joint tenancy can be created by a transfer that expressly declares the
interest to be joint tenancy. The primary benefit of joint tenancy is the right of survivorship. Title to the real
estate will transfer to the surviving joint tenant upon the death of a joint tenant without the need to go
through probate. Example: James Friedman and Sally Friedman, husband and wife as joint tenants.
- Tenants-In-Common: Individuals or entities can acquire an identified and specific percentage interest in
a certain real property. Each tenant-in-common owner can hold a different percentage ownership in the
real property. With tenants-in-common, there is no right of survivorship, and a tenant-in-common interest
will not bypass probate. Example: Jane Doe, a single woman, as to an undivided 50% interest, and Mark Doe, a single man as to an undivided 50% interest, as tenants-in-common.
- Registered Domestic Partners: Registered domestic partners are those individuals that have
registered with the California Secretary of State's Domestic Partners Registry. Title is vested in the
"community" with each interest being separate but the registered domestic partners each have equal
management and control. Transfer of the real estate requires written consent of both partners.
These are just some of the more common ways to acquire, hold and dispose of real estate in California. It is provided for
informational purposes only and should not be relied upon for legal, financial or tax advice. Since there are significant legal
and tax implications depending on how you choose to hold title to your real property, you should consult with an attorney
before making a decision on how you will hold title to California real estate.
To learn about the different types of transfer deeds available in California, click here.
A People’s Choice can save you hundreds of dollars by preparing your real
estate documents instead of an expensive real estate attorney!
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