Ways to Take Title in Arizona
You are buying a new home - hooray! While there are many details when buying a home, one important one to deciding is how you will hold the title to the property.
In Arizona there are four different ways to record the title and you should know the difference. Every state will offer different options but you'll likely see some similarities.
Community Property
It requires a valid marriage between two people.
Each spouse holds an undivided one-half interest in the estate
One spouse cannot partition the property by selling their half
Both parties (spouses) must sign to convey or encumber
Each spouse can devise (will) one-half of the community property
Upon death the estate of the decedent must be "cleared" through probate, affidavit, or adjudication.
Joint Tenancy with Right of Survivorship
Parties need not be married, there may be more than two joint tenants
Each joint tenant holds an equal and undivided interest in the estate, unity of interest
One joint tenant can partition the property by selling his or her joint interest
Requires signatures of all joint tenants to convey or encumber the whole
No court action required to "clear" title upon the death of joint tenant(s)
Community Property with Right of Survivorship
Requires a valid marriage between two persons
Each spouse holds an undivided one-half interest in the estate
One spouse cannot partition the property by selling his or her interest
Requires signatures of both spouses to convey or encumber
Estate passes to surviving spouse outside of probate
No court action required to "clear" title upon the first death
Tenancy in Common
Parties need not be married; there may be more than two tenants in common
Each tenant in common holds an undivided fractional interest in the estate. The interest held by each can be disproportionate.
Each tenant's share can be conveyed, mortgaged, or devised to a third party.
Requires signatures of all tenants to convey or encumber the whole.
Upon death the estate of the decedent must be "cleared" through probate, affidavit or adjudication.
Your lender and the escrow officer will need to know how you want to take title early in the process, to make sure that all documents are named properly. Try to notify your lender (if applicable) and escrow officer as early as possible.
If you have questions on the best way to take the title, depending on your personal circumstance, I recommend you discuss it with your escrow officer. They will review the pros and cons for your personal situation.
Information provided by First American Title