Couples at Closing: The Decision About Tenancy

The decision to buy a home is often one of the most significant milestones for couples. In fact, statistics indicate that a substantial 71% of all homebuyers consist of couples. Whether married or unmarried, these couples embark on the journey of homeownership, a decision that not only impacts their present but also their future. But what many might not consider in this process is the method of ownership or "taking title," a decision that can have legal implications for both the couple and their heirs.


According to a report by Jessica Lautz published in a July 21st, 2023 RISMEDIA article titled "Married vs. Unmarried Couples in the Housing Market," married couples constitute the largest share of homebuyers at 61%, while unmarried couples make up 10% of this demographic. As these couples prepare to close on their new home, they must make a crucial decision regarding the method of ownership they will adopt.

The most common options for joint ownership are Joint Tenants with Rights of Survivorship or Tenants in Common, and each has its own set of legal implications that can significantly impact the parties involved.

Joint Tenants with Rights of Survivorship:

Choosing this method of ownership means that both individuals have an undivided interest in the property, with each party holding an equal share. In the event of the death of one joint tenant, their share automatically passes to the surviving joint tenant rather than being inherited by the deceased's heirs. This method ensures that the surviving partner retains complete ownership of the property.

Tenants in Common:

Conversely, when a couple chooses to take title as Tenants in Common, each party maintains an equal right to the property's possession and enjoyment. However, unlike Joint Tenants with Rights of Survivorship, there is no automatic right of succession by survivorship between the owners. In case of the death of one tenant in common, their share is passed on to their heirs rather than the surviving owner.

It's important to note that the method of owning real estate is typically determined by state law, and the implications might vary depending on the state. As such, seeking advice from a legal professional or an accountant is highly recommended to understand the state-specific guidelines and implications before making this crucial decision.

In the complex world of homeownership, the choice of taking title is a pivotal decision. It’s more than a legal technicality; it’s a step toward securing the future and ensuring a smooth transition of property rights. Couples should consider their circumstances, consult professionals, and make an informed decision that best suits their needs and safeguards their interests and their heirs.

Article links: https://www.rismedia.com/2023/07/21/love-home-buying-bring-us-together-married-versus-unmarried-couples/


info@brokerstitlenh.com | www.brokerstitlenh.com| 603-434-1414


Comments

Post a Comment

Popular posts from this blog

A Guide to Closing on Real Estate in New Hampshire

Image
  "Welcome to the Home Stretch: Your Closing Journey Begins" Are you planning to buy or sell a home in the picturesque state of New Hampshire? Congratulations on taking this exciting step in your real estate journey! Whether you're a first-time homebuyer or a seasoned seller, navigating the closing process can seem daunting. However, with the right guidance, you can handle it with ease. This comprehensive guide will provide you with all the essential information you need to close on real estate in the Granite State successfully. Selecting a Settlement Agent Once you have your signed contract in hand, it's time to choose a settlement agent. In New Hampshire, this can be either a Title Company or an Attorney. Typically, the buyer is responsible for hiring the settlement agent. Choosing the Right Title Company or Attorney Selecting a reputable title company or attorney is crucial for a smooth closing. Here are some factors to consider: Reputation: Choos...
Read more

Navigating New Hampshire's Unique Tax Landscape: A Guide to Tax Bills and Prorations

Image
  Introduction: As we embrace the arrival of December, not only does the holiday season beckon, but so do New Hampshire's tax bills. It's that time of the year again, and in the Granite State, we like to infuse a touch of excitement into our tax season, making it a tad confusing for sellers and buyers alike. In this blog post, we aim to demystify the intricacies of New Hampshire's tax periods and prorations, shedding light on a subject that often causes confusion at the closing table. Understanding Tax Periods in the Granite State: In New Hampshire, property taxes follow a semi-annual schedule in most areas, with a few exceptions like Concord, New London, and Claremont, where they are billed quarterly. For the majority, the semi-annual tax bills are issued in July and December. Let's break down how these bills work: Six-Month Coverage: Each bill covers a six-month period, encompassing three months in arrears and three months in advance. With the December tax bill (and ...
Read more

Understanding New Hampshire's Transfer on Death Deeds (TODD): What You Need to Know

Image
  Effective July 1, New Hampshire has adopted the Uniform Real Property Transfer on Death Act  (RSA 563-D).   RSA 563-D authorizes the use of Transfer of Death Deeds (TODD) in New Hampshire , bringing significant changes to property inheritance procedures. Here’s what you need to know about TODDs: What is a TODD? A Transfer on Death Deed (TODD) is a legal instrument that allows real property to transfer to designated beneficiaries upon the death of the property owner (grantor). Key Features of TODDs: Non-Testamentary: TODD assets bypass probate proceedings, streamlining the transfer process. Exempt from Transfer Taxes: There are no transfer taxes applied to TODD transfers. Key Requirements: Recording: The TODD must be recorded with the county registry of deeds before the grantor’s death. Timing: It must be recorded at least 60 days after signing to ensure validity. Property Description: A complete and accurate property description is required. No Notice Required: U...
Read more