Different Ways to Hold Title to Real Estate in New York.

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One aspect often overlooked when purchasing real estate in New York is how the property title is held. How you hold title to a property has significant implications for issues such as inheritance, liability, and tax consequences. Each option comes with its own set of advantages and limitations, so it's essential to carefully consider your specific circumstances and objectives before choosing a title-holding method.

Sole ownership refers to a single individual holding the entire interest in a property. This option is common among single homebuyers or those who wish to keep the property separate from their spouse or partner. Highlights: 
  • Full control over the property;
  • Ease of transfer upon sale; and
  • Upon the owner's death, the property passes through probate to heirs or beneficiaries according to the owner's will or, if there's no will, according to New York's intestacy laws.
Tenancy in Common is a form of co-ownership where two or more parties hold an undivided interest in a property. Each owner has a separate and distinct share, which can be of equal or unequal proportions.  Think: "business partners." Highlights:
  • Each owner can sell, mortgage, or transfer their interest without the consent of other owners;
  • No right of survivorship; upon the death of an owner, that owner's share passes to their heirs or beneficiaries according to their will or New York's intestacy laws; and
  • Potential for disputes among co-owners regarding management and use of the property.
Joint Tenancy with Right of Survivorship is another form of co-ownership in which two or more parties hold equal shares in a property. Unlike Tenancy in Common, Joint Tenancy includes the right of survivorship.  Highlights: 
  • Right of survivorship means that upon the death of an owner, their share automatically passes to the surviving joint tenants, by operation of law, with no probate or administration;
  • Requires the "four unities" of time, title, interest, and possession to be present at the creation of the joint tenancy; and 
  • Each owner can sever the joint tenancy unilaterally by transferring their interest, which converts the joint tenancy into a tenancy in common.
Tenancy by the Entirety is a form of co-ownership reserved exclusively for married couples. Highlights:
  • Right of survivorship: upon the death of a spouse, the property automatically transfers to the surviving spouse by operation of law; 
  • Offers protection from creditors: a creditor of only one spouse cannot force the sale of the property to satisfy the debt; and 
  • Requires both spouses' consent for the sale, transfer, or mortgage of the property.  
To ensure you make the best decision, consult a knowledgeable real estate attorney like Pete Weinman, who can guide you based on your unique situation. 
Location: Staten Island, NY 10314, USA

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