property ownership can be a great solution for people who want to own a home,
especially for first-time buyers. But joint ownership can limit your rights and
options -- not only while you own the property, but also when you want to
transfer ownership to an heir or another buyer. There are three major forms of
joint property ownership (or "concurrent ownership") -- tenancy in
common, joint tenancy, and tenancy by the entirety.
Tenancy in Common (TIC)
in common (sometimes called a "TIC") is the most popular form of
concurrent property ownership.
There are many reasons you may want to add someone to the title of your
home. Maybe you just got married and would like your new spouse listed as part
owner of your home. Or you may want to add an adult child to your title
for estate planning purposes.
Whatever the reason, you will need to retain an attorney, experienced in
real estate, to draft a new deed conveying your home to yourself
and the person you wish to add to your title. In addition to the deed,
your attorney will also need to prepare transfer tax returns.
I am often asked by clients looking to transfer property whether I will be using a quitclaim deed to complete the transfer. I tell my clients that in the New York Metropolitan area, the type of
deed customarily used to convey real property, whether to a third party
in an arm’s length transaction or to a family member, is a “Bargain and
Sale Deed with Covenants Against Grantor’s Acts.”
A quitclaim deed must to used with caution and can be dangerous or beneficial depending upon whether you are the grantor or grantee.