Understanding Property Titles in California

In legal contexts, names and titles are crucial, especially in property ownership. Here's a detailed breakdown of the key ways to hold title in California:

1. Sole Ownership
   Sole ownership means that an individual or entity has complete control and responsibility for the property. The title is held in their name alone, allowing them to sell, lease, or transfer the property at will. Even married individuals can hold property as sole owners if specified as “separate property.” This form of title would subject the property to probate proceedings.

2. Tenants in Common
   This is the default method of co-ownership in California when multiple people or entities own a property. Each owner has an undivided interest in the property, meaning there is no physical division of the property itself. Ownership shares can vary (e.g., 50-50 or 25-75, or 33-33-67, etc.) and can be sold or transferred independently. When an owner dies, their share passes to their heirs, not the other co-owners. This form of title would subject the property to probate proceedings

3. Joint Tenants
   Joint tenancy involves equal ownership shares with the right of survivorship. This means that when one owner dies, the surviving owners automatically inherits the deceased's share equally. Joint tenants must have equal ownership percentages (e.g., two owners each own 1/2, three owners each own 1/3, four owners each own 1/4, etc.). This form of title would not subject the property to probate proceedings. However, it also could supersede a signed will or other estate planning document. This form of title is not exclusive to married couples, and joint tenancy is NOT synonymous with community property.

4. Community Property
   In California, which is a community property state, property acquired during marriage is typically considered community property. Both spouses on title held as community property equally own the property, and upon the death of one spouse, their share typically passes to the surviving spouse. This ownership method is limited to married couples or registered domestic partners, and it can be further specified as “community property with right of survivorship” to automatically transfer ownership to the surviving spouse. This form of title would not subject the property to probate proceedings.

5. Trustees of a Trust
   When property is held in a trust, the title is in the name of the trustee(s) who manage the property according to the trust’s terms. This allows for more flexible and controlled management of the property, often used in estate planning to avoid probate (in both instances of death or incapacity) and manage the distribution of assets.

Each form of title has both legal and practical implications. Be sure you hold title consistent with your estate planning goals. When circumstances change (i.e., when a co-owner dies), title must be revised to stay current. If you have any questions about how your property is titled and how it fits into your estate plan, feel free to reach out to us for personalized advice.