Anybody know if it's possible (or what the law states)... about 2 people purchasing a house... Is it possible for 2 people to be on the title,?

Asked by Leslie Damaso, San Francisco, CA Tue Sep 29, 2009

even if there is only 1 person on the loan?

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Deborah Brem…, Agent, Los Angeles, CA
Wed Sep 30, 2009
You're very welcome! As Realtors, we're here to serve!

Debbie Bremner
The Bremner Group at Coldwell Banker
310-571-1364
Facebook: http://facebook.com/DebbieBremner
Twitter: http://twitter.com/DebbieBremner
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Leslie Damaso, , San Francisco, CA
Tue Sep 29, 2009
Hello everyone! Thank you so much for your answers - I truly appreciate your input! =) I will look into all the resources and info you have given.
0 votes
Deborah Brem…, Agent, Los Angeles, CA
Tue Sep 29, 2009
Joint Tenancy
Joint tenancy occurs when two or more people hold title to real estate jointly, with equal rights to enjoy the property during their lives; in the event of the death of one of the partners, their rights of ownership pass to the surviving tenant(s).

Advantage
The advantage of this method is that the parties in the ownership need not be married or related.

Disadvantages
The downside is that any financing or use of the property for financial gain must be approved by all parties and cannot be transferred by will after one passes. If the parties are not married, in order to get out of the title, they must petition the court to divide the property or order its sale.

Another large disadvantage is that a creditor that has a legal judgment to collect a debt from one of the owners can also petition the court to divide the property and force a sale in order to collect on its judgment. In this method, each of the owners takes a risk in the other's financial choices.

Tenancy In Common
With tenancy in common, two or more persons hold title to real estate jointly, with equal rights to enjoy the property during their lives. Unlike joint tenancy, tenants in common hold title individually for their respective part of the property and can dispose of or encumber it at will. Ownership can be willed to other parties, and in the event of death, ownership will transfer to that owner's heirs undivided.

Advantage
Tenancy in common allows for one owner to use the wealth created by their portion of the property as collateral for financial transactions, and creditors can place liens only against one owner's particular portion of the property.

Disadvantage
Any liens on the property must be cleared in order for a total transfer of ownership to take place.

Your lender must advise you what steps are necessary to hold title jointly while obtaining your loan severally. In addition, all of these issues need to be reviewed by your accountant or tax attorney. Bear in mind that once you share title, in California, there may be additional implications if the one who is unencumbered decides to sell, and the other does not.
Debbie Bremner
The Bremner Group at Coldwell Banker
310-571-1364
Facebook: http://facebook.com/DebbieBremner
Twitter: http://twitter.com/DebbieBremner
Web Reference:  http://TheBremnerGroup.com
0 votes
Dorene Slavi…, Agent, Torrance, CA
Tue Sep 29, 2009
Dear Leslie,
Yes there is more then one way to "take title" of a property. Take a look at this title company website, it will explain the different ways you can own property. Its called http://www.octitle.com. Click on consumer information, then on education materials, and finally on how to take title. It's best if you read this information so that you completely understand what is involved.
Best of Luck to you!
Web Reference:  http://www.doreneslavitz.com
0 votes
Kathleen Bar…, Agent, Santa Barbara, CA
Tue Sep 29, 2009
Two people, or more, can go on title, and there are choices to be made on how you will "hold title": community property, joint tenancy, tenants in common. It's a good idea to consult with an attorney and/or accountant on the best way for your situation to hold title. It's also a good idea to have a written agreement on what your plans are - how long you will hold the property, if there will be a first right of refusal if one of you decides to sell his/her interest and the other wishes to buy it, how you will pick your listing agent, etc. Even the best of friends are encouraged to ask the tough questions ahead of time and get the details nailed down.
For more information, contact me, Kathleen Barnato, 805-570-3366. k@kathleenbarnato.com
0 votes
Kathryn Vats…, Mortgage Broker Or Lender, Stockton, CA
Tue Sep 29, 2009
Yes, two people can purchase a home together even if only one person wants to be on the loan, FHA will allow for a co-signer who will be on title only. Both buyers have to go through the full qualificaiton process.
0 votes
The Hagley G…, Agent, Pleasanton, CA
Tue Sep 29, 2009
Two people can be on title....and you don't necessarily need both to be on the loan. There are several different ways to hold title....which you should explore to see which one is right ffor you.
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