Property titling is one of the most overlooked parts of buying a home.

People focus on:
• The interest rate
• The down payment
• The monthly payment

Very few focus on how the property is legally owned.

Until something changes. Let’s walk through the major ownership types and what they actually mean in real life.

1️⃣ Joint Tenancy (With Right of Survivorship)

What It Means

• Equal ownership (typically 50/50 if two owners)
• If one owner dies, their share automatically transfers to the surviving owner
• Contributions do not automatically change ownership percentages

Scenario

Two partners buy a home.

One puts down $100,000.
The other puts down $20,000.

They title it as joint tenancy.

Five years later, they separate and sell.

Even though one person contributed significantly more, ownership is presumed equal.

Equity is split 50/50 unless there is a separate written agreement stating otherwise.

Joint tenancy prioritizes equal legal ownership, not proportional contribution.

2️⃣ Tenants in Common

What It Means

• Ownership percentages can be unequal (ex: 60/40, 70/30)
• No automatic survivorship
• Each owner can leave their share to someone else in a will

Scenario

Two friends purchase an investment property.

One contributes 70% of the down payment and expenses.
They record title as 70/30 tenants in common.

If they later sell, proceeds are divided based on those percentages.

If one passes away, their share goes to their heirs, not automatically to the co-owner.

This structure allows customization but requires clarity upfront.

3️⃣ Community Property (Where Applicable)

In some states, married couples fall under community property laws.

Generally:
• Assets acquired during marriage are presumed jointly owned
• Often treated as 50/50 in divorce

But this only applies if:
• You are legally married
• You live in a community property state

Unmarried couples do not automatically receive these protections.

Always check your state’s specific laws.

The nine community property states in the U.S. are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin, with Alaska allowing married couples to opt in to a community property system through a specific agreement.

Mortgage vs Title (Critical Distinction)

These are not the same.

• The mortgage determines who owes the lender.
• The title determines who legally owns the property.

You can be:
• On the mortgage but not on title
• On title but not on the mortgage
• On both

Ownership disputes are determined by the deed not who made more payments or who feels more invested.

What Happens If One Owner Wants Out?

If co-owners disagree about selling:

The legal remedy in most states is a partition action, where a court can force a sale.

It is:
• Costly
• Slow
• Emotionally draining

Which is why exit planning should happen before purchase.

Questions Every Co-Buyer Should Ask Before Closing

• How exactly will we title this property?
• Are ownership percentages aligned with financial contribution?
• What happens if one of us wants to sell?
• What happens if one of us dies?
• Do we need a written co-ownership agreement?

If you’re buying with:
• A romantic partner
• A friend
• A sibling
• A parent

These questions are not pessimistic.

They’re protective.

The Bigger Truth

Property ownership is a legal structure.

Relationships evolve.
Finances shift.
Life changes.

The deed does not adjust itself based on emotion.

Clear structure at purchase protects everyone later.