Oversimplified, there are four ways that title can be held for your own home:
- Sole owner: As the name implies, you -- and you alone -- own the property in your own name.
- Tenants in common: Here, two or more persons own the property. Each owner (called "tenant" for this purpose) owns his or her own share. It can be 50-50, but that's not mandatory. For example, if you and a partner buy property and you put up more of the down payment (or pay more of the monthly expenses) you can own if in a different percentage -- say 60-40, or even 95-5). You can do with your share as you want; if you can find someone to buy your partial interest, you have that right.
- What is most important is that should you die, your interest will be distributed under the terms of your will (and everyone should have a will). If you do not have a will, your state law (called the law of intestacy) will dictate to whom your share will go. In most states, your estate will have to be probated.
- Joint tenants with right of survivorship: Here, you and a partner own the property equally. On your death, your interest will automatically pass to your partner, without the necessity of probate. It is my understanding that while most states require equal ownership, a couple of states allow uneven percentage ownership.
- Tenants by the entirety: This arrangement (called "T/E") is reserved for husbands and wives. Basically, it is treated the same as joint tenants. The main difference is that if you own property as a joint tenant and there is a court judgment against only you, the property can be sold to satisfy that judgment. The other joint owner will receive half of the sales proceeds, but the judgment creditor will be entitled to collect from your share of the proceeds. Furthermore, a joint tenancy can be broken unilaterally; either owner can convert that into a tenant-in-common arrangement. With T/E, however, only divorce (or written agreement between husband and wife) can sever that legal title.
