Going into your home closing, you’ll need to know how you plan to hold your Florida title. Whether you’re a first-time homebuyer or you’ve closed on several Miami homes in the past, this question is often overlooked until closing day. In Florida, there are several ways to hold your real estate property title. Since your closing agent won’t be able to offer advice or suggestions, you’ll want to be able to make an informed decision going into your closing day. We’ll discuss the common ways to hold a Florida title:
First, What is a Title?
A title is an official legal document that lists the legal owner or owners of a property. A real property title depicts ownership for anything substantial or tangible, such as real estate. Real estate titles can be held in several different forms, each with advantages and disadvantages, depending on your circumstances. There are four common types of title ownership in Florida.
Joint Tenancy With a Right of Survivorship
This real property title option can list two or more people on the deed and as co-owners they will have an equal ownership interest. Joint Tenancy With a Right of Survivorship is frequently chosen for family members who want to keep the property in the family when they pass away.
If a co-owner passes away, their share of the property transfers to the remaining survivors on the title, despite the existence of a will.
Tenancy in Common
Tenancy in Common allows for two or more individuals to co-own a property. Owners do not have to have equal shares to the property, and the percentage of the ownership will reflect on the deed.
With this option, co-owners are welcome to sell, lease, or will their share of the property. In the event of death, there is no survivorship clause, and their portion of the property would go to whoever is named in the will, or into probate. In situations such as this, the surviving co-owner may find themselves owning property with a stranger.
Tenants by Entirety
This option is for married couples. Tenants by Entirety is a method of title ownership that allows a married couple to each own an equal and identical interest in the property. The title cannot be severed so long as both spouses are alive and married, meaning one spouse cannot sell or transfer the property without the consent of the other.
In Tenants by Entirety, since both spouses each own the property in its Entirety, when one spouse passes away, the surviving spouse owns the property without going through probate. This option also protects spouses from creditors. Should one spouse find themselves in financial trouble, the property is protected and cannot be claimed by creditors to satisfy a judgment.
Sole Ownership
Sole ownership of a real estate property is typically done by an unmarried individual or by an investor who wants to own a property without the involvement of a spouse. If a married individual takes title as sole owner and the property is their homestead, their spouse will have to relinquish ownership interest in the property when the property is sold including property acquired prior to marriage.
While this option is the most straightforward option and easiest for one-person ownership, it doesn’t have any of the tax or estate planning benefits that the others offer. If a sole owner passes away, any property transfer is delayed by going through probate, which may increase costs.
Ask A Miami Title Company
The home closing experience is filled with a variety of emotions, from excitement and joy to overwhelm and stress. As a Florida title company, we’re here to answer your questions along the way to ensure that you have a seamless real estate closing transaction.
At Flamingo Title Services, we understand that real estate transactions include jargon and terminology that is not easily understood. We’re here to help you along the way. Although we cannot provide you with legal advice or suggestions on the best option for you, we can help you learn more about your options so you can make an informed decision going into your closing. If you have any questions or concerns, call us at 305-722-0533. We can’t wait to see you at the closing table.