How to Hold Title: Sole, Joint Tenancy, TIC, Trust, and LLC
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 percentage, 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. Upon death, sole-owned property 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. This is common for married couples. All joint tenants must take title at the same time and have equal ownership percentages. If one owner wants to sell their share, it breaks the joint tenancy and converts to tenants in common.
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 bequeath their share independently. There is no right of survivorship, so a deceased owner's share goes to their heirs through probate, not automatically to the other owner. This is common when non-married people buy together or when investment partners purchase property.
Trusts and LLCs
Placing property in a revocable living trust avoids probate and allows seamless transfer to beneficiaries after death. You remain in control during your lifetime. An LLC is more common for investment properties — it provides liability protection by separating the property from your personal assets. However, most residential lenders will not lend to an LLC for a primary residence. If you want LLC protection for your home, you typically buy in your name and transfer to an LLC after closing — but check with your lender first, as some loan agreements have due-on-sale clauses that could be triggered.
Key Takeaways
- ✓Joint tenancy provides automatic transfer to the surviving owner and avoids probate
- ✓Tenants in common allows unequal ownership and independent control of each share
- ✓A revocable trust avoids probate while keeping you in control
- ✓Consult an attorney before choosing — the right option depends on your specific situation
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