Ways to Take Title when Buying a Home in Arizona
When buying a home in Phoenix AZ, home buyer must determine how they wish to hold title before they can close the escrow. Arizona is a Community Property State. There is a statutory presumption that all property acquired by husband and wife is community property.
Per Section 3b of Arizona’s Residential Resale Real Estate Purchase Contract, “Taking title may have significant legal, estate planning and tax consequences”. Therefore, as Realtor in Phoenix AZ, we recommend you seek legal and tax advice from qualified professionals in order to determine how you should take title in a real estate transaction.
Here are common ways to take Title when buying a home in Arizona.
Community Property
Community property is a method of co-ownership for married persons only. Upon the death of one of the spouses, the deceased spouse’s interest will pass by either a will or intestate succession.
Community Property with Right of Survivorship
A community property with right of survivorship estate can be held by a husband and wife when created by express language in the vesting document. Upon the death of a spouse, the estate is vested in the surviving spouse and an Affidavit Terminating Right of Survivorship, together with a certified copy of the death certificate is recorded.
Sold And Separate
Real property owned by a spouse before marriage or any acquired after marriage by gift, devise, descent, or specific intent. If a married person acquires title as sole and separate property, his or her spouse must execute a disclaimer deed.
Tenancy in Common
A method or co-ownership when parties do not have survivorship rights and each owns a specific undivided interest in the entire
title. Each co-owner has a separate title to his/her interest, and can transfer his/her interest without the other co-owners.
Joint Tenancy with Right of Survivorship
Joint tenancy is a method of co-ownership that gives title to the real property to the last survivor. Title to real property can be acquired by two or more individuals. If a married couple acquires title as joint tenants with right of survivorship, they must specifically accept the joint tenancy to avoid the presumption of community property.
Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients’ best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Phoenix AZ and surrounding area, we hope you will consider us. Contact us today for complimentary consultation.
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