How to Hold Title: Sole, Joint Tenancy, TIC, Trust, and LLC
The short answer
- Joint tenancy provides automatic transfer to the surviving owner and avoids probate
- California couples can also choose community property with right of survivorship — ask a tax advisor how it compares
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Why this matters
Before closing, you will be asked how you want to hold title to your new property. This is not a formality — it determines who owns what share, what happens if one owner dies, how the property is taxed, and how it can be sold or transferred. Take this decision seriously.
Sole Ownership
If you are buying alone and unmarried, sole ownership is straightforward — you own 100% of the property and can sell, refinance, or transfer it without anyone else's permission. If you are married, sole ownership may still require your spouse's consent depending on state law; in California, the title company will usually ask your spouse to sign a deed giving up any interest. Upon death, sole-owned property generally goes through probate unless it is in a trust.
Joint Tenancy with Right of Survivorship
Joint tenancy means all owners hold equal shares and if one owner dies, their share automatically transfers to the surviving owner without going through probate. Joint tenants hold equal shares, and the deed must say joint tenancy. If one owner sells or transfers their share, it breaks the joint tenancy for that share and converts it to tenants in common.
Community Property in California
California married couples and registered domestic partners have two more choices. With community property, each spouse owns half, and a deceased spouse's half passes by their will or trust. Community property with right of survivorship adds joint tenancy's automatic transfer to the surviving spouse without probate. Many couples weigh it against joint tenancy because community property can be taxed differently when a spouse dies — ask a tax advisor or estate planning attorney before you choose.
Tenants in Common (TIC)
Tenants in common allows unequal ownership — one person can own 70% while another owns 30%. Each owner can sell, transfer, or leave their share to someone independently. There is no right of survivorship, so a deceased owner's share goes to their heirs or beneficiaries, often through probate, not automatically to the other owner. This is common when unmarried people buy together or when investment partners purchase property.
Buying with Someone Who Is Not Your Spouse
Whether you buy with a friend, a partner, or family, how you hold title is only half the plan. Before you close, put a written co-ownership agreement in place and have an attorney draft or review it. It should cover who pays what share of the mortgage, property taxes, insurance, and maintenance; how you will decide on major repairs; what happens if one person cannot make their share of the payment; what happens if one person wants to sell and the other does not, including a buyout; how you will split the proceeds or loss when you sell; and what happens if an owner dies. Family purchases need this just as much — clear terms now prevent painful disputes later.
What Sharing a Loan Means
If you both sign the mortgage, the lender looks at both of your credit histories, incomes, and debts. Both of you are also responsible for the full payment — not your ownership percentage. If your co-buyer stops paying, the lender can look to you for the entire amount, and late payments land on both credit reports. Your title can say 70/30, but the loan is 100 percent each. Decide up front whether every contributing adult should be on the loan, since being on it counts the new payment against each person's debts.
Trusts and LLCs
Placing your home in a revocable living trust can avoid probate, and you remain in control during your lifetime. Federal law generally keeps a lender from calling the loan due when you move your home into a revocable trust you live in and benefit from; ask your lender and title company how to set it up. An LLC is more common for investment properties — it can separate the property from your personal assets. Most residential lenders will not make a home loan to an LLC, and moving your home into one after closing lacks the trust protection: it can trigger the loan's due-on-sale clause and affect your title insurance and property taxes. Do not plan it without your lender, an attorney, and a tax advisor.
Everything to remember
- Joint tenancy provides automatic transfer to the surviving owner and avoids probate
- California couples can also choose community property with right of survivorship — ask a tax advisor how it compares
- Tenants in common allows unequal ownership and independent control of each share
- A revocable trust can avoid probate while keeping you in control
- Everyone who signs the mortgage owes the full payment, whatever the ownership split
- Co-buyers need a written agreement covering payments, buyouts, sale, and death before closing
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