Property Ownership in California

There are different ways for people in California to own real property, such as land or a house. California real property can be held by a sole owner or by co-owners. Co-ownership involves two or more persons acquiring and holding title together.

Sole Ownership

Property can be held by an individual who is not legally married. Example: “Jane Doe, a single woman”. Or property can be held by an individual who is married, but as their sole and separate property.

Example: “Jane Doe, a married woman, as her sole and separate property”.

Joint Tenancy

Joint tenancy is ownership by two or more persons in equal shares. Title is usually taken in joint tenancy when the property is acquired. However, joint tenancy can also be created by one owner when she or he transfers an ownership interest to another person in joint tenancy.

The most important benefit of joint tenancy is the right of survivorship. Title to real property will immediately pass to the surviving joint tenant upon the death of a joint tenant without the need for probate. Two or more people may hold title as joint tenants; they do not need to be married to hold title this way.

Example: “John Doe and Jane Roe, as joint tenants with the right of survivorship”.

Tenants in Common (TIC)

Individuals may own a percentage in a piece of property with each tenant-in-common holding a different percentage ownership in the property. There is no right of survivorship with tenants-in-common ownership. A tenant-in-common’s interest does not automatically avoid probate by right of survivorship (like with Joint Tenancy) unless the property is held in a Living Trust or some other method that avoids probate.

Example: “Jane Roe, a single woman, and John Doe, a single man, as tenants-in-common”.

This blog provides a short summary of some of the most common ways to acquire and hold real property in California. There are significant legal and tax implications depending on how you choose to hold title to real property. You should consult with a Certified Public Accountant (CPA) regarding any tax issues related to how you take and hold title to property. And you should consult with an attorney before making any decisions on how you or you and your spouse/partner will take title to property in California.