Gregg and Lisa Whitney are pleased to provide their esteemed international clientele this helpful information about purchasing a home in La Jolla, California. We know that purchasing a property in another country can be confusing and that’s why we provide to all interested Buyers clear, concise, helpful and accurate information about the buying of property in La Jolla, California. Please contact us directly with any questions or to receive more information.

Legal Ownership – How to Take Title

When buying a home you need to make a decision about how you want to take title. Your decision should be based on what your relationship status is and what your personal preferences are.

SINGLE BUYER
If you are a single person purchasing a property by yourself the process is simple, you will take the title in your own name. In some cases a title company will add the phrase “an unmarried woman” or and “unmarried man” after your name on the title to clarify that there is no spouse with a legal claim to the property.

If you have changed your name at any time, you will want the name that appears on your checking account and the majority of your legal documents to match the name you place on the deed. If you have additional names you go by, you will want to first list the name on your checking account, then put A.K.A., “also known as”, and list any additional names you may be known as.

2 OR MORE MARRIED PEOPLE
If you are two or more unmarried people buying a house together there are four separate ways you can take title, each with its own advantages.

1. Joint Tenancy – Joint tenancy legally gives all parties on the deed equal ownership and rights. Additionally, joint tenancy provides “the right of survivorship.” Right of survivorship means that if one of the owners dies the other surviving owners on the deed automatically assume ownership of the deceased’s share of the property. This is true regardless of whether the deceased had a will or trust which left the property to someone else. Because survivorship allows survivors to immediately take ownership it prevents having to go through probate, which can be time consuming and expensive.
   While the owners on the deed are alive any party can sell or deed their interest in the property, thus ending the joint tenancy. When joint tenancy is ended right of survivorship automatically ends as well.
   It is important to note that joint tenancy does not protect a survivor from having the home reassessed for taxes after the death of a joint tenant.
2. Tenancy in Common – Another choice for taking title is Tenancy in Common. In the state of California this is the default designation for unmarried co owners. If you don’t make a make a decision to take title in another way your title will be Tenancy in Common. If you do take title with Tenancy in Common you have the option to designate unequal ownership. If you chose not to designate unequal ownership all parties on the deed will automatically have equal ownership. Tenancy in Common does not have “Right of Survivorship.” If a part owner dies their share of the property will pass to the person they have designated in their will or trust. If there is a will there will likely be a lengthy probate. Owners who choose Tenancy in Common and want to ensure that their share of the property reverts to a surviving partner should make sure to designate as such in their will or trust. If they wish to avoid probate they should consider creating a revocable living trust.
3. Partnership – Business associates, family members or sometimes even friends will have reason to invest in a property together. There is an option for a partnership to hold title. In that case the partnership agreement defines what can be done with the property. If there is no partnership agreement the partnership is bound by the Uniform Partnership Act.
4. Community Property – this option is open to an unmarried couple only if they have registered as domestic partners. Community Property also offers the advantage of “Right of Survivorship”. For heterosexual married couples it also qualifies a surviving spouse for a tax break. Currently that advantage does not appear legally to benefit Domestic Partners.

COUPLES OWNING TOGETHER
Married couples and Domestic Partners in California have the option to take title in all of the same ways as unmarried couples but because of the inherent benefits they frequently choose to take title as Community Property. As stated above, Community Property protects a surviving spouse through “Right of Survivorship.” Under this title a surviving spouse or partner automatically inherits the deceased’s half of the property upon death, regardless of any will and without formal probate. For a married, heterosexual couple there is also a sizable tax break for the surviving spouse.

A MARRIED PERSON OWNING ALONE
For many reasons, it may be necessary or desirable to designate a property as being separate, not community property within a marriage. It is possible for a person in a marriage to own a property separately. The first step is to take title as a married person owning alone. However, just buying the property with separate funds and taking title as married person owning alone will not keep the property from being deemed community property.
In order to keep a property separate in a marriage it is advisable to seek out the assistance of a lawyer to draft an agreement between spouses about the property’s ownership.

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LIVING TRUST
Creating a living trust is something you can do even after you have taken title. Placing the property in a Living Trust has a great mix of the benefits of the other title options. Like the Joint Tenancy and Community Property titles a Living Trust avoids probate upon death. Probate can be long and expensive, not a preferable legacy. A much better gift to your loved ones is to spare them the probate experience by setting up a revocable living trust.
With a revocable living trust you can name yourself as trustee and thus retain control of the property. As the trustee you can name a beneficiary. The beneficiary is the person who will receive title of the property after your death. A beneficiary can be a spouse, child, parent, partner, charity, etc. Upon your death the beneficiary takes title of the property without probate. While you are alive you, as the trustee, have the ability to change the beneficiary, sell the home or even change the title.
It is imperative that you check with your lender before creating a living trust and placing your property in it. In some mortgages there is a due-on-sale provision which requires you to pay your mortgage in full should ownership change. In rare cases placing a property in a living trust has inadvertently triggered this mortgage clause. Take the time to check with your lender to make ensure this is not an issue with your mortgage. If your mortgage does not have this provision creating a living trust can be extremely beneficial.

We at Whitney and Associates hope that you found this information helpful and enlightening. As you embark on your journey, to own property in La Jolla, California, we hope you will experience the exceptional service provided by Greg and Lisa Whitney. Their experience, knowledge and success are unparalleled.
The lifestyle of the rich, famous and utterly fabulous awaits you. For immediate answers to your questions and to begin your exciting home search in La Jolla, California, contact Gregg and Lisa directly at 848-456-3282.

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