5 Ways to Hold Title to a Property in Arizona


Arizona cactus hillside

Since Phoenix area home buyers must determine how they wish to hold title before they can close escrow on a home purchase, here below is a list of the five ways to do so, and a brief description of each.

Per Section 3b of Arizona’s Residential Resale Real Estate Purchase Contract, “Taking title may have significant legal, estate planning and tax consequences.” Therefore, The Hill Group recommends you seek legal and tax advice from qualified professionals in order to determine how you should take title in a real estate transaction.

* Community Property – Requires two married people; each spouse holds an undivided one-half interest in the estate; one spouse cannot partition the property by selling his or her interest; upon death, the estate of the decedent must be “cleared” through probate, affidavit, or adjudication.

* Joint Tenancy with Rights of Survivorship – The parties involved do not need to be married; there can even be more than two joint tenants; each joint tenant holds an equal and undivided interest in the estate; one joint tenant can partition the property by selling his or her joint interest; no court action is needed to “clear” title upon the death of joint tenant(s).

* Community Property with the Right of Survivorship – Requires two married people; each spouse holds an undivided one-half interest in the estate; one joint tenant can partition the property by selling his or her joint interest; no court action is needed to “clear” title upon the first death.

* Tenancy in Common – The parties involved do not need to be married; there can even be more than two tenants in common; each tenant in common holds an undivided fractional interest in the estate, which can be disproportionate; each tenant’s share can be conveyed, mortgaged, devised to a third party; upon death, the estate of the decedent must be “cleared through probate, affidavit, or adjudication.

* Sole and Separate – A married person may take title as “sole and separate,” however, because Arizona is a community property state, his or her spouse must execute a disclaimer deed to avoid the presumption of community property.

No representation is made as to the legal validity or adequacy of any of the information contained herein. The Hill Group does not give legal or tax advice.

Image Credit: deege@fermentarium.com on Flickr. CC Licensed.
Source: “Home Sellers Guide” on AZGAT.com.

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About Doug Hill

Doug Hill is an Associate Broker with Coldwell Banker Residential Brokerage, and founded The Hill Group with his wife, Kirsten in 2003. Combined, they have helped over 1,000+ clients buy and sell homes in the Phoenix Metropolitan Area. Doug holds a Bachelor's Degree in Business Management & Economics, and is a Navy veteran. He is an active member of the Southeast Valley Regional Association of Realtors on their Professional Standards Board, and he and his wife have had the #1 team for Coldwell Banker in Arizona for multiple years in a row. He loves to read, travel, and spend time with his family and friends.
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