Hold On to Your Florida Real Estate Property

Are you buying a real estate property in Florida? The excitement of buying a new home can be immense, but rushing through the process in your excitement can lead to problems. Many of the problems surrounding Florida real estate are centered around the property’s title. The real estate attorneys at Legal Counsel, P.A. can help you avoid these issues and maintain ownership of your property.

What is a Real Estate Title?

A real estate title is an official document that clearly shows who legally owns a property. Like most homeowners, you look forward to the day you officially get the title to your home, or are relieved to finally be able to sell it.

However, there are many ways that a title can be held during, before, and after a sale. The options include:

• Sole Ownership
• Tenants in common
• Joint tenancy with right of survivorship
• Joint tenancy by the entirety.

Each of these options comes with its benefits and drawbacks. The type of title you hold or will hold will depend on your needs and goals. Before selecting the type of title, you may want to consider speaking to a real estate attorney in Orlando, Florida, who can review your situation and help you select the best option for you.

Types of Real Estate Property Ownership in Florida

Sole Ownership

With sole ownership, only one person holds title to the property. Sole ownership doesn’t grant special tax benefits to the owner, but if the owner passes away, the property would need to go through the probate process. After the completion of the probate process, it would pass to the surviving heir.

Sole ownership is an option that may be chosen by those who are single, or by those who are married who want to make a clear distinction between community property and separate property in their marriage.

Sole ownership might be the best choice for you; however, you may want to speak to a real estate lawyer at Legal Counsel, P.A. to understand if this is the best option for you.

Tenancy in Common

Are you buying real estate as an investment? Do you want to make sure your property passes to your surviving children? Tenancy in common is an option. Tenancy in common is an option where two or more people buy the property and own it together with divisible equal or unequal shares. This works for residential and commercial real estate, but it does work differently between the two types of real estate. The attorneys at Legal Counsel, P.A. have experience with both.

If any one of the tenants in common dies, his or her interest passes to their surviving heirs (not to the remaining joint tenants). This is distinguished from Joint Tenancy, which provides for an indivisible share with the right of survivorship. In that situation, when one joint tenant dies, the title passes to the other joint tenant by operation of law.

However, when selecting this option, it is important to understand that a tenant in common can pass their interest via a Last Will and Testament to whomever they wish. This means that you could end up co-owning property with someone you don’t know.

Furthermore, owners of a property could also petition to force a sale. Before choosing this option, Legal Counsel, P.A. can help you evaluate the risks and benefits of owning a property in Florida.

Joint Tenancy with Right of Survivorship

Joint tenancy with right of survivorship is similar to tenancy in common. However, with joint tenancy, each owner’s share in the property is equal, and if one person passes away, the ownership stake in the property passes on to the other tenant. This is the main distinction between Tenants in Common and Joint Tenants With Rights of Survivorship.

Joint tenancy can help families avoid probate if one owner of the property passes away. Legal Counsel, P.A.’s real estate lawyer can review your situation and help you understand whether this is the best choice given your needs.

Tenants by the Entirety

If you are married and want to share ownership with your spouse, tenancy by the entirety may be another option you have. With this option, you and your spouse co-own the property, and if one of you passes away, the property passes to the surviving spouse.

However, this option only applies if both parties remain married and must be changed after divorce. Are you married and have questions about the best way you and your partner can hold title? Legal Counsel, P.A. is a real estate law firm in Florida that can help you.

Buying Real Estate? Have Questions About Deed Vesting?

How you hold a title can have a major impact on your tax obligations and your estate planning. It can also impact whether your real estate is considered community property or separate property in your marriage, an important consideration when it comes to prenuptial agreements and family law matters.

Have questions about your title options? We have answers. Contact the Florida real estate attorneys at Legal Counsel, P.A. in today at (407) 982-4321  to learn more.