"community property with right of survivorship" what does that mean?

Asked by Yesenia, California Tue Oct 9, 2012

my husband and i are wanting to buy a home in a few months. what are the benefits and risks, if any, of him being the only one on the home loan? i was told by a friend that many do this (only have one spouse on loan) ...but why? what if somethign happens to the spouse? what happens after?

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Julie Rodrig…, , Modesto, CA
Tue Oct 9, 2012
Hi Yesenia. I agree, you would want to discuss the right of survivorship/community property with an attorney.

In my experience, when only one spouse is put on the loan it is due to credit purposes. For example: if your husband is the only one on the loan and something were to happen and you stopped making payments, your credit would not be affected since you are not on the loan, and they would be reporting the negative credit on his name.

I would definetely go over both options (both on loan or only one) with your loan officer. They can give you a better idea on qualifying and whether or not you need to have both of you on the loan. Now if only your husband is on the loan documents, you wouldn't be able to go on title at close. After it closes, then he could add you on. The escrow company you use can go over the different ways you can take title. I hope this helps. Good luck you to and if you need a few recommendations to great Loan Officers, please call me. I have a few I work with. :0)

Julie Rodriguez
(209) 324-3506
1 vote
Cindy Davis, Agent, San Diego, CA
Tue Oct 9, 2012
I think Chuck did a great job of offering a definition. Right of ownership is intended to protect the surviving spouse.
1 vote
Ron Thomas, Agent, Fresno, CA
Tue Oct 9, 2012
Other than the fact that California is a "community property" State;
if you are concerned about this, you should contact an Attorney:
We cannot know all the details of your financial situation; eg. Pre-Nupt, Trusts, Wills, etc.

Realtors do not give TAX or LEGAL advice; we are not qualified.

Good luck and may God bless
1 vote
thanks ron =) .
Flag Tue Oct 9, 2012
Marivel Rome…, Agent, Riverbank, CA
Tue Oct 9, 2012
Hi Yesenia,

I have heard from clients that the reason why they choose to purchase property under one name is for buying power. One person is on the loan so that the other party can purchase another property (ies) and rent them out..if one loan is under both SS numbers then both are hit with the debt...

Check with your financial planner to determine the benefits/risks of purchasing property under one name vs both

Marivel Romero
REALTOR (R) Hablo Espanol

ZipRealty, Inc.
Licensed in CA, #01871830
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My Profile: http://www.ziprealty.com/agent/maromero
0 votes
Chuck Bukhari, Agent, Modesto, CA
Tue Oct 9, 2012
Your best answer should come from an attorney or CPA or your legal representative.

Butr if you do the research online you will find the following as general discription.

Community property with the right of survivorship means that you and your spouse own exactly one half of an undivided interest in the property, but upon death of one of the spouses the surviving spouse is conveyed the entire property.

Again check your legal council for correct info that matches your own situation.
0 votes
thank you chuck, i'm gonna contact an attorney to see what the pros and cons are for one spouse being on the loan vs. both. probably not any, but CA is filled with loops and it would be nice to know why others are doing it =D
Flag Tue Oct 9, 2012
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