One of the interesting things about practicing real estate law is how concepts you once thought of as “basic” in law school suddenly show up in real-world deals — often in unexpected ways.
Property ownership structures are a good example.
How title is vested impacts control, transfer, inheritance, and creditor rights. A quick refresher:
Sole Ownership – One person (or a single entity, like an LLC or corporation) owns the property outright.
Tenants in Common – Two or more people, or even separate entities, own distinct shares. Shares can be equal or unequal, and each can be sold or passed on individually.
Joint Tenants – Two or more individuals (or sometimes entities) own equal shares with the right of survivorship — if one passes, their interest automatically transfers to the others.
Tenants by the Entirety – Reserved for married couples in certain states. Includes survivorship rights and additional protections from creditors of just one spouse.
Recently, I came across a deed that showed property owned by a husband and wife as tenants by the entirety and their daughter as a tenant in common.
In practice, this meant:
- The husband and wife together owned 50%.
- The daughter owned the other 50%.
When the husband passed away, his interest automatically went to his wife. Ownership then became:
- Wife – 50% as the surviving spouse.
- Daughter – 50% as tenant in common.
The contract of sale listed only the wife and daughter as sellers, which was accurate. But it still needed to be explained to the client how and why the ownership shifted — and that the sale documents matched the law.
It’s a reminder that even the “basics” of property law matter. Whether it’s an individual, a family, or an entity holding title, the form of ownership has very real consequences — and making sure it’s understood can prevent major issues at closing.
If you have questions about property ownership, vesting, or any other real estate legal matter, our team at Andelsman Law is here to help. We guide borrowers, lenders, and investors through the complexities of real estate transactions to ensure every transaction is handled smoothly and securely.
