There are many factors to consider when deciding how to take title when purchasing a property in Florida. Consulting an Estate Planner or real estate attorney can help you to decide which type is best for you. The type of ownership you decide on affects what happens to your property in the event of a death or incapacitation.
Title to real property can be taken in a person’s own name, which is generally referred to as sole ownership. Unmarried
persons, legally divorced persons, and married persons who wish to hold the property in their own names may use this
form of ownership. However, due to Florida’s homestead laws, when a married person takes title in their own name and the property is then
resold, the spouse will have to relinquish their rights to the property. A person can also take title to the property in the
name of a living trust, which is commonly known as a revocable inter vivos trust. Consult an attorney for information on
the different types of trusts and how it could affect your property.
Tenants in Common: If a person is purchasing a Florida property with other persons, they can take title to the property
as Tenants in Common. As Tenants in Common each joint owner of the property has the right to sell, lease or bequeath
their interest in the property to his or her legal heirs. In Tenancy in Common, any number of individuals can hold title to
their respective share of the property, depending on their contributions.
Joint Tenants with Rights of Survivorship: A person purchasing the Florida property with other persons can also take
title to the property as Joint Tenants with the right of survivorship. Under Joint Tenancy all joint tenants have equal
possession rights to their respective share in the property. In addition, due to the right of survivorship, which is not
present in Tenancies in Common, when a joint tenant dies, by operation of law his or her share is automatically
distributed among the remaining joint tenants. There are no restrictions on the number of persons that can be joint
tenants under a Joint Tenancy.
Tenants by the Entirety: Tenancy by the Entirety which is for married couples who wish to hold a joint title in the
name of both spouses. Under a Tenancy by the Entirety the property is equally held in the name of both the husband and wife. This title is applicable and available for married couples only. Both the husband and wife have equal possession rights to the property and similar to a Joint Tenancy, when one spouse dies, his or her share is automatically distributed to the surviving spouse.
Other Forms of Ownership:
LLC/Corp/Inc: Title to Florida property may also be held in the name of a separate legal entity organized under Florida
state law such as a corporation or a limited liability company. Corporations and limited liability companies can have any
number of shareholders or members, respectively, but the rights to the property of individual shareholders or members
will be limited to the face value of shares or membership interests held by them.
Partnership: Additionally, title to the Florida property may be held in the name of a partnership of two or more persons.
If the title is taken in the name of a partnership, it will be held in the name of the partnership, with the partners having
equal right to possession of their respective share in the property.
Trust: Finally, the title may also be held in the name of a Florida Land Trust, in which the legal title of the property is
transferred to a trustee for the benefit of the named beneficiaries. Some people prefer to take title in the name of a
Florida Land Trust because it offers privacy with no one knowing the beneficial owner of the property or the amount of
the purchase price paid for the property.
Now that you’ve read the article and have some ideas about how to take title in Florida, if you’re looking to purchase a home in SWFL contact us at KTMDH.COM. We specialize in all aspects of the home buying process and we are available to assist with any question or need you may have.