How to Hold Title: The Smart Homebuyer’s Guide to Property Ownership

When you buy a home, one of the most important decisions you make at closing isn’t just about the mortgage or the interest rate — it’s how you choose to hold title. The way your name (or names) are placed on the deed determines who legally owns the property, what happens if someone passes away, how taxes apply, and how easily the home can be sold or inherited. Yet most buyers are asked, “How do you want to take title?” without ever being told what that really means.

This guide explains the most common ways to hold title, who each option is best for, and how choosing the right one can protect your family, your investment, and your peace of mind.

What Does “Holding Title” Mean?

Holding title refers to the legal method of owning real estate. Your choice affects:

• Who legally owns the property
• What happens to the property if an owner dies
• Whether the home goes through probate court
• What creditors can and cannot claim
• How it can be sold, refinanced, or transferred
• Taxes and estate planning

It’s not just a formality it’s a legal decision with long-term consequences.

Ways Individuals and Couples Can Hold Title

1. Sole Ownership

What it is: One person holds 100% ownership of the property.

Best for:

• Single buyers
• Married couples who want only one spouse on title
• Investors buying alone

Pros:

• Simple ownership structure
• Full control over decisions

Cons:

• Property must go through probate if owner dies
• No shared rights for partners or spouses

2. Joint Tenancy with Right of Survivorship (JTWROS)

What it is: Two or more people own equal shares. If one dies, their share automatically transfers to the surviving owner(s).

Best for:

• Married couples
• Unmarried partners who want survivorship rights
• Parents and children who want to avoid probate

Pros:

• Avoids probate court
• Automatic transfer to surviving owner(s)

Cons:

• Shares must be equal
• Property can’t be willed to someone else
• Creditors of one owner can still make claims

3. Tenants in Common (TIC)

What it is: Two or more people own property together, but shares do not have to be equal. Each person can sell or leave their share to anyone they choose.

Best for:

• Friends buying a home together
• Siblings or relatives jointly inheriting property
• Investors purchasing a property together

Pros:

• Flexible ownership percentages
• Each owner can sell or transfer their share
• Property can be willed to heirs

Cons:

• No automatic survivorship rights
• More complex when selling or refinancing

4. Tenancy by the Entirety (Married Couples Only)

What it is: A form of joint ownership only available to married couples in certain states. Both spouses are considered one legal unit.

Best for:

• Married buyers in states where it’s allowed

Pros:

• Automatic right of survivorship
• Strong protection against one spouse’s individual debt or lawsuits

Cons:

• Only available to legally married couples
• Both parties must agree to sell or refinance

5. Community Property / Community Property with Right of Survivorship

(Applies in states like Texas, California, Arizona, Nevada, Washington, and others)

Standard Community Property:

• Each spouse owns 50%
• No automatic survivorship — property goes to heirs unless otherwise planned

Community Property with Right of Survivorship:

• Same 50/50 structure, but property automatically transfers to surviving spouse

Pros:

• Tax benefits at death (step-up in basis)
• Easy survivorship option if selected

Cons:

• Only available in community property states
• Liability is shared 50/50 even if only one spouse created debt

Advanced Ownership Options

6. Holding Title in a Trust

What it is: A property is owned by a living trust rather than an individual.

Best for:

• Estate planning
• Avoiding probate
• Protecting heirs and minors

Pros:

• Avoids probate court
• Keeps ownership private
• Continues after death without court involvement

Cons:

• Requires trust creation paperwork
• Must be prepared correctly with legal guidance

7. Holding Title in an LLC (Limited Liability Company)

Best for:

• Real estate investors
• Rental or commercial properties
• Homeowners who want liability protection

Pros:

• Limits personal liability
• Allows ownership by multiple members
• May offer tax benefits

Cons:

• Not ideal for primary residences requiring traditional mortgages
• Requires annual filings and legal compliance

Comparison — Which Title Method Is Right for You?

How to Decide the Right Way to Hold Title

Ask yourself:

• Are you buying alone or with others?
• Do you want your share to automatically pass to someone else when you die?
• Are you trying to avoid probate court?
• Do you need protection from liability or lawsuits?
• Are you investing or buying a primary residence?
• Do state laws affect what’s available to you?

Your title company and attorney can help you make the best decision at closing.

Why This Decision Matters

Choosing the wrong way to hold title can lead to:

• Ownership disputes
• Family conflict after death
• Unnecessary probate delays
• Loss of survivorship rights
• Tax consequences for heirs
• Difficulty selling or refinancing later

Close With Confidence The Title Guy Helps You Get It Right

At The Title Guy, we make sure your title is not only clear—but correctly held. We guide buyers through every ownership option, answer legal questions in coordination with your attorney, and ensure your title reflects your goals, family needs, and financial protection.

Ready to secure your home and your future? Contact The Title Guy today.