When you live in Utah, buying property for the first time is an exciting process. You finally have something to your name, which goes a long way in the future. However, the excitement tends to die down once you find out that you need to take ownership of the property.
There are different types of ownership and you may not know which one to choose. They are affected by who signs the documents, gift taxes, exposure to creditor’s claims, income taxes, and real property taxes. At the same time, it determines the transfer of ownership in the case of a divorce, sale, or death.
Due to these reasons, it is essential you know the type of title you want to claim for your property. Given below are some of the best ways according to Utah’s leading title insurance company to take ownership of the real estate you purchase:
In this type of title ownership, an individual will be the one who holds the title to the property. Single (not married legally), unmarried (legally divorced), and married women and men are common examples.
For married men and women who wish to obtain sole ownership as Utah title, the spouse should do the following things. The partner must provide consent while relinquishing interest, rights, and the title for the property in written agreement, such as a deed.
As per Utah’s leading title insurance company, a huge advantage of this type of ownership is that it allows the owner to complete transactions at a faster rate. In this variant of property ownership, the individual doesn’t need to seek permission from other parties.
Owned by the husband and wife during the tenure of their marriage, a community property is a type of title. It is different separate from the property gained before marriage due to legal separation and a differing bequest or gift.
Unlike other states, Utah’s laws are different when it comes to real estate ownership. When the husband and wife purchase property during their marriage, it doesn’t mean there will be equal division among both parties.
Utah practices equitable distribution, under which the division of property is fair. If both husband and wife declare it as community property in the deed, they will have to sign all documents and agreements when it comes to a transfer.
As per the agreement, each individual will have the right to dispose their share of the property to a third party according to Utah’s leading title insurance company.
It is a type of title where two or more persons are the owners of the property and share the rights to the real estate. If the event of a death of one of the members, the surviving tenants get the property.
The major advantage of this type of title is that it isn’t necessary for the people in the joint tenancy to fall under the married category. Utah’s leading title insurance company states that each individual will need permission from the remaining members to use the property for financial gain. Also, the individuals in the joint tenancy won’t be able to pass the ownership rights via a will.
Tenancy in common
As per interpretation of laws by Utah’s leading title insurance company on tenancy in common, two or more individuals own equal rights or undivided interest to the property. The rights on this type of title differentiate it from joint tenancy. As per the law, each individual has the right to do as he/she pleases with their share.
At the same time, these members will be the ones receiving income for their stake and will have to share expenses in a similar manner. As a result, each individual can use their share of the property as collateral for different types of financial transactions.
However, if the party wishes to transfer the real estate to others, they must clear all its liens to change ownership legally. Also, another characteristic which differentiates it from joint tenancy is that the individuals can pass it on to their heirs in the event of a death.
A trust can also own the title for real estate as per the rules of the state. In this situation, the legal entities will be the owners of the property. At the same time, a trustee will be the one managing the trust on behalf of the beneficiaries. People who benefit from the trust agreement are known as beneficiaries.
As Utah’s leading title insurance company Utah Title, we believe it is essential you think carefully, before making a decision. Also, we urge you to take coverage when it comes to the ownership of the property you are buying, as it will help you in the long run. For example, when you purchase the premium from Utah’s leading title insurance company, it will protect you against legal troubles faced by previous owners!