How to Take Title On Your Deed
If you are buying real estate property you will be given a deed to your property. If you are buying with another person you may be wondering how you should take title. An attorney can help you decipher how the deed should be written so you are able to own the property with the other person in a manner which is best for your situation. There are a few common ways for people to take title in Illinois. The three ways are, Tenants in Commons, Joint Tenants with the right of Survivorship, and Tenants by the Entirety.
Tenants in Common.
In Illinois if the deed does not state how the property is held between people, it is defaulted to tenants in common. With tenants in common, each of the owners on the property has an undivided interest in the property. Undivided means you are able to use the entire property. However, you are only entitled to your percentage as ownership. As an owner you are able to sell your interest to the property to anyone at any time. You can take a percentage of the property however, you’d like. For example, you could hold a 50/50 interest in the property. Or you can hold a 20/80 or another other combination. Upon your death, the property goes to each individual owner’s heirs. It does not automatically become the ownership of the other owner. If you are unsure of how your property is divided, or are thinking of changing the deed, it is best to speak to an attorney who is well versed in both real estate and estate planning to better help your needs.
Joint Tenants with the Right of Survivorship.
Joint Tenants with the right of survivorship is similar to tenants in common. Each owner has the right to use the entire property to be considered a joint tenant. A joint tenant will be able to sell their share of the property without the other owner’s permission. The big difference between a tenant’s in common and a joint tenant’s is the right of survivorship. Unlike with tenants in common, the right of survivorship means that if one owner passes, the other can take the property as a whole. The deceased owner’s share does not pass down to the deceased owner’s next of kin.
Tenants by the Entirety
Tenants by the Entirety in Illinois is one of the best ways for a married couple to take title. It is only available to married couples and you can only have one property as tenants by the entirety. This means, if a couple owns a residential home and a lake house at the same time, only one of the properties can be deeded as tenants by the entirety. This is similar to joint tenants with the right of survivorship. If one spouse dies, the property automatically transfers to the other spouse. If the couple divorces, the house will then be considered tenants in common. One spouse cannot sell their interest in the property, without the consent of the other. The biggest benefit to Tenants by the Entirety is that a creditor cannot place a lien on the property unless that lien is in both of the spouses’ names.
If you are buying or selling property it is important to speak with an attorney who can help you make the best decision about your deed. It is best to find an attorney who knows both real estate and estate planning law in order to help you make the best decision.
Are planning on buying or selling property?
Local attorney Andrew Szocka, Esq. provides thorough and speedy real estate and estate planning help in the Chicagoland area. To schedule a free initial consultation, visit the Law Office of Andrew Szocka, P.C. online or call the office at (815) 455-8430.