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Vesting types for married couples

There are different forms of real estate ownership that married couples can use to own real estate. The most recognized form for a married couple is to own their home as Tenants by the Entirety. A tenancy by the entirety is ownership in real estate under the fictional assumption that a husband and wife are considered one person for legal purposes. This method of ownership conveys the property to them as one person. An estate by the entirety can only be created between two persons who must be husband and wife. They must be married and their ownership interests cannot be conveyed without the consent and signature of both spouses. In theory the individuality of each spouse is lost because the husband and wife take as one person.

Under this form of ownership, when one spouse dies title to the property passes to the surviving spouse entirely without the need for probate. An advantage of this form of ownership is that no legal proceeding needs to take place at the death of one’s spouse. There is no need for a will or probate because title automatically passes to the surviving spouse. In many states, if a married couple owns property and the title deed does not stipulate the form of ownership, then a tenancy by the entirety is presumed under state law. In other states, the tenancy must be explicitly stated in the deed to create the tenancy and right of survivorship. Not all states recognize this form of ownership.

Married couples might also hold title in Joint Tenancy. In a joint tenancy the couple will hold title to their real estate jointly with equal undivided interests and withrights of survivorship. An undivided interest is an ownership right to use and possess the entire property. However, no single co-owner can mortgage, sell or otherwise convey the real estate without the consent of the other joint tenant. When a joint tenant dies the right of survivorship entitles the surviving co-owner to an equal share of the deceased share of ownership without the need for probateor legal action. An advantage of this type of ownership is that the parties on title need not be married or related and that title automatically passes at the death of the joint tenant to the surviving joint tenant. In some states the title deed must explicitly confer the right of survivorship.

A couple might also hold title to their home as Tenants in Common. In a tenancy in common the couple will hold title to their real estate jointly with equal rights toenjoy the property during their lives. However, unlike a tenancy by the entirety or joint tenancy, tenants in common hold title individually for their respective part of the property and can convey or mortgage their portion of the property without the consent or joinder of the other tenant in common. Unlike a joint tenancy ortenancy by the entirety, there is no right of survivorship in a tenancy in common. When a tenant in common dies, their property interests will pass to their heirs or their devisees specified in their Last Will and Testament. The death of a tenant in common, therefore, will likely require a legal proceeding to determine the rightful owner(s) of the deceased tenant’s interests.

Another form of vesting title to property owned together by married persons or by domestic partners is as Community Property. Community property is distinguished from separate property, which is property obtained prior to marriage or prior to a domestic partnership by separate gift or bequest, after legal separation, or which is agreed in writing to be owned by one spouse or domestic partner. Since all such property is owned equally, both parties must sign all documents and agreements transferring the property or using it as security for a loan. Each spouse has a right to pass on their share to whomever they wish in a last will and testament. This differs from property owned in joint tenancy in that neither spouse can pass their share to anyone but the other spouse.

Community Property with Right of Survivorship is a form of vesting title to property owned together by spouses or by domestic partners. This form of holding title shares many of the characteristics of community property but adds the benefit of the right of survivorship similar to title held in joint tenancy. On the death of an owner, the decedent’s interest ends and the survivor owns all the interest in the property.

Because married couples may hold title to their homes in different forms, extreme care and caution must be exercised when changing a couple’s tenancy. Doing so without careful planning can have profound unforeseen effects on the couples’ property rights and estate plans. It’s important to seek the advice of a legal professional to make sure that when title is taken to real property, it meets the married couples needs.

Disclaimer: The above is for informational purposes only. The Company assumes no legal liability or responsibility for the accuracy.

Ohio Good Funds Law

For Ohio real estate transactions, effective April 6, 2017, the following are the only form of funds a settlement agent may collect and disburse on in connection with a residential real estate transaction:

1. Wire Transfers
2. Checks: Personal, Business, Certified, Cashier’s, Official Check or Money Order. The combined dollar amount of these items cannot exceed $1,000.00
3. Automated Clearing House (ACH) Transfers and checks from the United States, the State of Ohio, or Ohio municipalities
4. Checks from a real estate broker’s escrow/trust account

The practical effect of this new requirement means that if any Ohio borrower is required to bring more than $1,000.00 to the closing table then those funds must be a wire transfer.

Certified or cashier’s checks for more than $1,000.00 will not be accepted.

Please refer to the OhioGoodFundsLawFAQ about this new requirement.

Western Regional NRMLA Meeting & Expo

Allegiant Reverse Services Sales, Management, and Operations staff will be attending the upcoming industry meeting and expo in Huntington Beach.  Click below for more information and to register for the event. See you there!

New Flyer Available – Power Of Attorney

We are pleased to inform you that a new educational flyer has been added to our list of available documents. Our library currently includes:

-Rate Calculator Guide
-Spotting Elder Abuse and Fraud
-Signing by Mark
-Power of Attorney Fraud
-Trusts
-Checklist for a Smooth Closing
-New!Power of Attorney

To request a copy of any of the available documents please click here

ARS is Approved with Secure Insight

The security of you and your borrowers is our top priority.   Allegiant Reverse Services, a division of FNC Title Services, LLC  has been Trusted and Verified by Secure Insight. We are also ALTA Best Practices certified. These approvals are proof of our commitment to protect the privacy and security of our lenders and borrowers. Secure Insight is the first company to offer a standardized risk management process.  This process delivers the most advanced closing fraud analysis in the industry, meeting all federal risk management  requirements for third-party vetting of vendor relationships as outlined by CFPB, OCC, HUD, FDIC, Fannie Mae, Freddie Mac and the National Credit Union Administration.

Secure Insight’s Mission is to be the leading provider of vetting, monitoring and nationwide reporting of closing professional identity, background and credentials to the mortgage banking industry.

All closing agents completing the Secure Insight vetting process, including ARS, agree to adopt the Best Practices outlined on our website. Click HERE to read about the Secure Insight and ALTA Best Practices process and requirements. 

You will find our Secure Insight approval under FNC Title Services, LLC. Please don’t hesitate to reach out if you have any questions or concerns regarding this or anything else.

 

 FNC Certificate

  Standards and Best Practices for Closing Agents v6

Eastern Regional NRMLA Meeting & Expo

Allegiant Reverse Services Sales, Management, and Operations staff will be attending the upcoming industry meeting and expo in New York City.  Swing by our booth for a refreshing approach to the conference. Click below for more information and to register for the event.