COMMON WAYS OF HOLDING TITLE

Title to real property in Nevada may be held by individuals, either in Sole Ownership or in Co-Ownership. There are several variations as to how title may be held in each type of ownership and the following summaries reference the more common examples. The way property is held can affect your taxes, inheritance and your financial future. Be sure to consult your attorney and accountant to advise you.

SOLE OWNERSHIP

1. A man or woman who is not married:

Example: Jane Doe, a single woman

2. An unmarried man/woman. A man or woman, who having been married are legally divorced:

Example: Jane Doe, an unmarried woman

3. A married man/woman, as his/her Sole and separate property: when a married man or a woman wishes to acquire title as their soul and separate property, the spouse must consent and relinquish right title and interest in the property by deed or other written agreement.

Example: Jane Doe, a married woman, has her sole and separate property.

CO-OWNERSHIP

1. Community Property: any property acquired during a valid marriage. Excluded as any property acquired by gift, bequest, devise, descent or as the separate property of either is presumed community property. Example: Jane and John Doe, wife and husband, as community property

Example: Jane Doe and John Doe, wife and husband,

Example: Jane Doe, married woman

2. Community Property with Rights of Survivorship: A form of Co-Ownership by a legally married husband and wife which includes the benefits of community property and that of joint tenancy.

3. Joint Tenancy: Joint and equal interests in land owned by two or more individuals created under a single instrument with right of survivorship

Example: Jane Doe and John Doe, wife and husband, as joint tenants

4. Tenancy in Common: Under tenancy in common, the co-owners own undivided interests; but unlike joint tenancy, these interests need not be equal in quantity and may arise at different times. There is no right of survivorship; each tenant owns an interest, which on his or her death vests in his or her heirs or devisee

Example: Jane Doe , a single woman, as to an undivided 3/4ths interest, and Sally Smith, a single woman, as to an undivided 1/4th interest, as tenants in common.

Other Forms of Ownership

ENTITIES CREATED UNDER STATE LAW, SUCH AS:

1. Corporation:

An artificial entity created under the authority of the laws of a state usually regarded separate from its shareholders.

2. Partnership:

An artificial entity created under the authority of the laws of a state as an association of two or more individuals or entities to carry on, as coowners, a business for profit.

3. Limited Liability Companies (L.L.C.s):

An artificial entity created under the authority of the laws of a state and can be considered a hybrid of a corporation and partnership.

4. Trust:

A confidence in one person to hold and administer for the benefit of another. The legal title to the real estate is held by the Trustee who manages the real estate for the benefit of the Beneficiary pursuant to the terms and conditions of the Trust Agreement.

Common ways to hold title to real property

JOINT TENANCY TENANCY IN COMMON COMMUNITY PROPERTY PARTNERSHIP
PARTIES Any number of persons Any number of persons Married persons and domestic partners Related or unrelated parties
DIVISION Ownership interests must be equal Ownership can be divided into any number of interests, equal or unequal Husband and wife's or domestic partner's interest must be equal Ownership interest is in relation to interest in the partnership
TITLE There is only one title to the whole property Each co-owner has a separate title to his or her undivided interest There is only one title to the whole property Each co-owner's interest is owned in partnership for partnership purposes
PURCHASER Purchaser will become a tenant in common with the other owners Purchaser will become a tenant in common with the other owners Purchaser cannot acquire one owner's interest and hold as community property with other co-owners Purchaser can only acquire the whole title unless he or she becomes a partner
CONVEYANCE All owners must agree on use and disposition of property Individual co-owners do not need the constent of the other to use or dispose individual interests Husband and wife or domestic partners much agree to use and disposition of property Partnership sets parameters for use and disposition of the property
DEATH Property passes to survivors without going through probate Individual's interest passes to designated heirs through probate On Spouse's/domestic partner's death, interest passes to surviving spouse/domestic partner Partnership interest passes to designated heirs who would become partners
SUCCESSOR'S STATUS Last survivor owns property individually Devisees or heirs become tenants in common Surviving spouse or domestic partner owns property Devisees or heirs have no rights in specific partnership property