When you finally reach the closing table for that new home in New City or investment property in Monsey, you’ll be asked a critical question: “How do you want to take title?”
It sounds like a minor detail, but this decision dictates who owns the property if a co-owner passes away, how much protection you have from creditors, and how much your heirs might pay in taxes.
At Balisok & Kaufman, PLLC, we see many property owners realize after closing that their deed doesn’t align with their long-term goals. Here is what you need to know about the three most common ways to hold title in New York.
1. Tenants by the Entirety (Married Couples)
In New York, this is the “default” for married couples. It treats the couple as a single legal entity.
- The Benefit: If one spouse passes away, the property automatically transfers to the survivor without going through probate.
- The Protection: It offers strong protection against creditors who are only seeking a judgment against one spouse. They typically cannot force a sale of the home to satisfy an individual debt.
2. Joint Tenants with Rights of Survivorship (JTWROS)
This is common for family members (like a parent and child) or unmarried partners buying together in areas like Spring Valley or Nanuet.
- The Benefit: Like marriage-based vesting, if one owner dies, their share automatically goes to the other owners.
- The Risk: Any owner can technically “sever” the joint tenancy without the other’s consent, turning it into a Tenancy in Common.
3. Tenants in Common (TIC)
This is often the preferred choice for business partners or those purchasing Commercial Real Estate.
- The Difference: There is no right of survivorship. If you own 50% of a building in Haverstraw as a Tenant in Common and you pass away, your 50% goes to your heirs (via your Will), not to your business partner.
- The Flexibility: You can own unequal shares (e.g., one person owns 70%, the other 30%).
Why You Should Consult an Attorney Before Signing
Choosing the wrong vesting can lead to messy probate court battles or unexpected tax consequences. During a Real Estate Closing, we don’t just file paperwork; we ensure your deed works in harmony with your Estate Planning.
If you are buying property in Rockland County, or if you already own a home and want to ensure your deed is set up correctly to protect your family, let’s talk.
Balisok & Kaufman, PLLC Monsey
- Call us: (845) 322-8969
- Visit us: 1609 U.S. 202, Suite 6a, Pomona, NY 10970
- Learn more: balisokkaufmanmonsey.com