Taking Title of Your New House


Visitors: 505

How you take title in your new home is key decision. Unfortunately, in the euphoria of the moment, many new homeowners don’t put much thought into it.


When purchasing a new home, you become the title owner of record. Essentially, this means you are listed in public records as the legal owner. This may sound like a simple concept, but how you’re classified as an owner can impact legal and tax issues. Here are some issues to consider when taking title.

Single Owner

If you are purchasing the property on your own, there is really only one title choice. Yep, you are going to be listed as the sole owner, to wit, in your own name. If you are investing in rental or commercial properties, you should speak with a lawyer about purchasing the properties through a limited liability company to limit potential liabilities.

Two or More Owners

If you’re married, many states require you to take title in a property as community property. In such states, you and a spouse are automatically considered to be joint owners regardless of any other factors. Community property title can have tremendous but macabre tax benefits. If one spouse dies, the living spouse gets a “step up” basis for tax consequence and huge capital gains taxes. For instance, if you purchased a home for $200,000 and it is worth $400,000 when a spouse dies, the remaining spouse gets to figure any capital gains using $400,000 as the cost of the house instead of $200,000.

Joint Tenancy

In some states, spouses are not required to take community property title. Instead, they and any collection of two or more owners may take title in joint tenancy. The advantages of joint tenancy are twofold. First, you get the step up basis mentioned above. Second, title in the property automatically transfers to surviving owners upon the death of one owner. This means you get to avoid probate, an expensive and lengthy court process.

Taking Title

When buying a home, don’t just pick title willy- nilly. Take the time to explore the options in your state and pick the best one for you.

Raynor James is with http://www.fsboamerica.org - providing FSBO homes for sale by owner. Visit our “sell my home" page at http://www.fsboamerica.org/seller.cfm to list and sell your home for free for one month. Visit http://www.fsboamerica.org/buyer.cfm to see homes for sale by owner.


Article Source:

Rate this Article: 
Build Confidence By Taking A Step Back And Taking A Look At The Real Picture
Rated 4 / 5
based on 5 votes

Related Articles:

What Do You Mean It's Not My House? - Why Title Insurance Is More Than Just ..

by: Calum MacKenzie (June 30, 2007) 
(Real Estate)

Facts About Taking Out Mortgage Insurance When You're Buying a House

by: Lorne Marr (August 01, 2010) 

Taking on Six Sigma Programs - Guidelines for In-House and Outsourcing Decisions

by: Joong Hyun (July 08, 2005) 

Taking Advantage Of Painters Perth Advice On Avoiding House Painting Pitfalls

by: Charlot Fernandez (January 12, 2012) 
(Home Improvement/Painting)

Title Loans - Get More of the Title to Your Vehicle

by: James Taylor (July 28, 2005) 

Online Car Title Loans and Car Title Pawns: How They Work and What to Look for

by: D. Eel (August 19, 2010) 
(Finance/Debt Relief)

A Green House is a Clean House - Make Your House Eco Friendly

by: Wendy Pan (October 09, 2008) 
(Home Improvement)

Auto Title Loans - Can an Auto Title Loan Help You?

by: Benjamin Robert Ehinger (June 16, 2008) 
(Finance/Auto Loans)

Is Auto Title Loan Worth It? - The Pros and Cons of Auto Title Loan

by: Yvonne Suzannah (July 09, 2008) 
(Finance/Auto Loans)

Build Confidence By Taking A Step Back And Taking A Look At The Real Picture

by: Rohan Cox (September 01, 2005) 
(Self Improvement)