Taking Title

You have decided you are going to buy that waterfront cabin, hunting land or a another property. Now the question will be asked of you, “How are you going to take title?” 

Good question.  Here is a real simple explanation of the options. In Michigan, there are four forms of fee simple ownership.

Estate in Severalty: This is ownership by one person only. Upon the death of this person, the property descends to his or her heirs.

Tenants in Common: This is ownership by two or more people. The interest owned by the tenants in common can be the same per cent or different. Upon the death of one of the tenants of common, their interest in the property would pass to their heirs.

Joint Tenancy: This is ownership by two or more people. Each of the owners must own the exact same percentage of ownership (if there are four joint tenants, each own 25%) and must acquire the ownership at the same time as the other joint tenants. Upon the death of one of the joint tenants, there is an automatic right of survivorship. That means the share of the deceased is divided equally among the surviving owners.

Tenants in Entirety: This is ownership by husband and wife only. Upon the death of either spouse, the ownership of the will belong to the surviving spouse. Each person is said to own 100%

Before making a decision, understand the options clearly and ask questions if you do not.