The Land Survey and Utah Real Estate

Do I Need A Land Survey?

A Land Survey is not required on every real estate transaction, but is sometimes necessary and invaluable. A survey marks the lands outer boundaries and a plat map is prepared showing the land boundaries along with a legal description.

When Do I Need One

A survey should be performed anytime the boundaries of the land are not properly marked. This may not be necessary in the city, where each lot is marked by fences but in the rural areas the property lines are often unmarked. The surveyor will mark the property lines with stakes and flags to show these boundaries.

What Does The Survey Do For Me

Marking the property lines can protect you. Many land owners build cabins on their properties. At times they think they know their property lines. Maybe they reviewed a topographical map or were shown the supposed property lines by a neighboring property owner.

If you rely on this information you may build a cabin on the neighbors property. A building of any kind is owned by the individual whose property it is built on. Don’t build your neighbor a free cabin. You would be shocked how often this happens.

Surprisingly this is also common in cities. Garages and sheds are often built on the property line with parts of the structure being on the adjoining property.

Why Not Use My GPS

I am regularly asked by land owners: why can’t I use my GPS to find my property corners? There are many reasons why this is unwise. Below are a few:

1. Your GPS Is Not Accurate

While surveyors do use a GPS system to complete their survey it is much more accurate than your hand held GPS.

2. A Survey Is Based On Section Corners

Surveyors first find a section corner to start the survey. This is necessary as surveys are based on established section corners.

3. All Sections Are Irregular

West of the Mississippi river land is divided into sections which, in theory, are 1 square mile. These sections were established by government surveyors when the land was opened for settlement. At the time, surveyors tools were not as accurate as today. Because of this none of the sections are exactly 1 square mile.
To compensate the surveyor must prorate the measurements of each parcel in the section. The amount its over sized or under sized is pro-rated across all parcels based on established surveying principals.

4. Priority Affects Land Parcels

Because of the above difficulties it is common for property descriptions to overlap or leave gaps between them. These are resolved by the priority of the recorded deeds (the order they were recorded). Without a knowledge of how to search deeds at the county recorders office you will not be able to determine priority.

5. Difficult To Find GPS Coordinates

It is difficult to find the GPS coordinates for your lands corners. These coordinates are not used by title companies and are difficult to find. In fact the coordinates cannot be determined without a professional survey.

These and many other issues are taken into account by professional surveyors as they prepare the survey.

Summary

Although not necessary with every land transaction a land survey is very helpful. The surveyor will create survey plat which is a map of the property showing the measurements and property lines, and containing the legal description. They will also mark the property corners by placing wooden stakes in the ground.

A personal GPS is not adequate to find your property boundaries and corners.

February 25, 2016

Mineral Rights and Utah Real Estate

Understanding Mineral Rights

Mineral rights are a cause of controversy among property owners. This is especially true in areas with oil and gas exploration. Owners of these rights have certain rights which are difficult for land owner’s to accept. These rights are often called oil rights or sub-surface rights.

How They Are Separated

Originally all property rights are owned by the same owner, and this is still the case in many places. If separate, it is because a previous owner separated them, selling one and keeping the other. When separated certain rights go with the minerals. The owner who separates them understands this but future owners may not.

The owners of each have certain rights to their property. This is where the issue comes up with surface owners. When they buy land they may not understand that others own an interest underneath their property and also have rights.

Surface Owners

The owner of sub-surface rights has the right to use the surface of the land to access and mine their minerals. This includes the right to open a mine, drill a oil or natural gas well, and build roads and other infrastructure to support this activity.

The last thing a land owner wants is a drilling rig right out the front window. The company handling the drilling or mining is required to restore the property after they are finished, but they may drill and extract minerals for many years.

Researching Ownership

If you don’t live in an area with mining or oil and gas exploration you may not have a problem and in fact may own both rights together. If you live in an area of exploration it is unlikely you own the oil rights. If you don’t own them you should remember the rights the owner of them has.

It is an expensive process to research mineral owners. Mineral researchers do this work and you can get contact information for them from the local county recorder.

Keep in mind that the lack of mineral rights and the possible access by mineral owners has already been factored into the price of the property.

Buying and Selling

Sub surface rights can be purchased and sold similar to surface rights. If not previously separated they will usually be transferred with the property. If you worried about the possible problems with mineral exploration and drilling you can offer to buy them.

Oil Lease

Before mineral exploration begins a lease is signed with the mineral owner. Exploration is expensive and the owner of the rights rarely does this themselves. A oil or mining company will lease the rights over a large area and do the exploration. Oil royalties will be paid to the owners if minerals are found.

Although buying property without the mineral rights is a concern, the odds of an oil rig on your property are low. It happens but this should not stop you from buying property if you find the property you want.

Summary

The owner of mineral rights has the right to enter property to access their minerals. This right was created when these rights were separated. When you buy land it is already subject to this right.

February 25, 2016

Reading a Real Estate Contract

Reading A Real Estate Contract

A Real Estate Contract, Real Estate Purchase Contract or REPC is the contract to buy land or other types of real estate. These contracts are created by the state real estate department and used by real estate agents. Individuals use the same or similar contracts.

The contracts vary from state to state but are similar. The main sections are listed and explained below. The first section lists the names of the buyers, sellers and realtors. The Real Estate Contract is about as boring as it gets, but necessary to understand when buying land.

Property

The property section describes the property included in the sale. This includes the real estate, any appliances included with a house and any water rights, mineral rights etc. Any items not included in the sale are also listed.

Purchase Price

The price section includes the purchase price and any financing. The financing might include bank loans, private loans or owner financing.

This section may also state the contract is subject to loan approval. The buyer will not be required to complete the purchase if their loan is denied. There also may be a appraisal condition which allows the buyer to cancel the contract if the property appraisal is lower than the purchase price.

Settlement and Closing

The settlement section covers items that must be completed before the closing. This includes documents to be signed, money to be paid, and required disclosures.

Possession

This section gives the date when the buyer can take possession of the property. This is usually a certain period of time after the closing occurs.

Agency Disclosure

Its very important to review this section. The realtor(s) disclose who they represent which is either the buyer or the seller. Keep this in mind when dealing with a realtor.

Title Insurance

Every buyer should demand title insurance when they purchase real estate. This section details the title insurance policy requirements and who pays for it.

Seller Disclosures

Seller disclosures often include the following:

Property condition disclosure
Commitment for Title Insurance
Any leases not expiring before closing
Any environmental liens or issues
Any building or zoning code violations
Other issues seller is aware of that affect the property

Buyer’s Right To Cancel

Conditions allowing the buyer can cancel the contract may include:

Buyers approval of seller disclosures
Buyers inspection of the property
Buyers approval of a land survey
Buyers ability to get home owners insurance
Other test and evaluations as listed

Seller Warranties

The Seller guarantees the property will be in good condition with a clear title and be broom clean. This includes all appliances work, there are no roof leaks, foundation cracks, or other problems not disclosed to the buyer.

It also discloses if the seller will provide a home warranty and what coverage will be included in the warranty.

Walk-Through Inspection

The Buyer is entitled to inspect the property before the closing. The Seller agrees to correct any problems found during that inspection within the limits described in this section, and to allow buyer to enter the property for the inspection.

Changes During Transaction

Seller agrees none of the following will occur without buyers consent:

No changes to existing leases
No new leases shall be entered into
No substantial improvements or alterations made to property
No loans or other encumbrances placed on property

Complete Contract

Buyers and Sellers agree that this contract and the attachments and addendum’s is the complete contract. This precludes any claims of verbal agreements or other buyer said/seller said issues.

Dispute Resolution

This details how any disputes will be resolved. Often the parties agree to a mediation instead of court.

Default

Both buyer and seller may default (not complete) this contract. This explains the remedies in a default, which may include retaining the earnest money or filing a lawsuit to force contract completion.

Contract Deadlines

There may be separate completion deadlines for parts of the transaction or contract. These could include:

Buyer Loan Application deadline
Seller Disclosure deadline
Property Inspection deadline
Loan Denial deadline
Appraisal deadline
Settlement deadline

Not meeting any of these deadlines by the responsible party (buyer or seller) allows the other to cancel the contract.

Offer And Time For Acceptance

Either the buyer or seller could make the original offer to the other, although the buyer more commonly makes the offer. This states how long the other has to accept, reject, or make a counter offer.

Nothing is more boring than a Real Estate Contract. I know because I read them all the time. However, if you are buying or selling real estate you better read it and understand it. There is too much money at stake to sign this contract without fully understanding it. You may also want to have your attorney review the real estate contract before you sign.

February 25, 2016

6 Questions to help you Find a Realtor

How To Find A Realtor

How to find a realtor. When you choose a realtor they are working for you. You are hiring them. Below are 6 questions to ask when interviewing your prospective realtor.

1. How Experienced Are You?

Many have asked how to find a realtor. This is the most important criteria. Don’t be the guinea pig for a new realtor. Keep looking until you find one with at least a year of experience, and multiple sales. Ask how many sales they have closed.

2. Do You Know This Type of Land?

Realtors tend to specialize in a specific type of property. Most realtors specialize in houses, and have a limited knowledge of land.

Ask if they are familiar with the type of property you are buying or selling. Ask to see their previous sales of similar property.

3. Do You Have Complaints?

When asked how to find a realtor I always emphasis asking a realtor this question. This is a tough question to ask but you have a right to know. If you don’t get a straight answer, or question the answers given, check with the State Real Estate Department, they keep a record of all complaints.

Complaints can be frivolous, so ask for details of any complaints. You should avoid a realtor with multiple “legitimate” complaints.

4. Does your Company Have Complaints?

The same goes for complaints against the real estate company. Most realtors are honest, as are most companies, but bad realtors tend to congregate. If the company has a history of complaints look for a different realtor, preferably at a different company.

5. Do You Represent Buyer Or Seller?

It is vital to know who the realtor is representing. If they listed the property, they are working for the seller, and have a legal obligation to get the highest price possible for the seller.

If they did not list the property, they are most likely working for the buyer, and have a legal obligation to get the lowest price possible. If you are a buyer they will probably show you multiple properties, starting with their own listings, meaning they are working for the seller. There is nothing wrong with this, just make sure you know and have an idea of property values.

6. Any Exclusive Agency Agreement?

Realtors love Exclusive Agency Agreements but be wary of signing them. You have no obligation to sign such an agreement. If you do sign an Exclusive Agency Agreement you are agreeing that this specific realtor will be the only one you work with in a given area.

The area could be a town, county or an entire state. Don’t sign one that covers more than the realtors area. Never sign one that covers an entire state. If you do and then want to look at property in another area with a different realtor, they will be unlikely to help you as the commission would be paid to the first realtor.

How to find a Realtor is not always easy but most realtors are honest and willing to work hard to help you find the right property. Since you are hiring them, you have a right to interview them.

February 24, 2016

Owner Financing: the best real estate loan

Owner Financing: The Best Real Estate Loan

Owner Financing, also known as seller financing, is a real estate transaction where the seller is also the lender. Owner financed land can be any real property, although it is more common with land than houses or commercial property.

How To Setup Owner Financing

Seller financing is set up when the offer to buy land is negotiated. This is negotiated between buyer and seller with the help of any realtors. All terms are negotiable, including interest rate, payment amount, length of loan, and amount financed.

The interest rate is usually higher than the current bank interest rate. This is appropriate as there are no loan fees, which can be over 2% of the loan amount. Also, it is more difficult for the seller to sell the loan than it is for a bank to sell a loan.

Payments can be made directly to the seller or a payment collection company can be used. If the payments are made directly, the buyer and seller will calculate interest paid, current balance, and payoff themselves. The interest paid will need to be calculated annually for tax purposes.

If you don’t want to do this a payment or escrow collection company can be used. They will make these calculations and send an annual interest statement for tax purposes. They charge a setup and monthly fee for this service.

Documents Used

A transaction on owner financed land is similar to a bank loan without the fees. The same documents are used to transfer the property and secure the loan. The Lender is just the seller instead of a bank. A warranty deed is used to transfer the property to the buyer. The warranty deeds has warranties that the buyer owns the property free and clear.

A Trust Deed and Trust Deed Note is used to secure the loan to the seller. The Trust Deed is recorded with the Warranty Deed and includes the loan amount. The Trust Deed Note is not recorded but includes the loan terms such as interest rate, payment date and amount.

The Trust Deed can be foreclosed in the event of default. This is often a 3-4 month process and does not require a court hearing. The process varies from state to state.

Advantages To Buyer

The advantages to the buyer in this type of transaction include lower or no loan fees and financing without credit checks, appraisals or debt ratio requirements. The transaction is usually closed much quicker because of no approvals.

Advantages To Seller

The main advantage to the seller is the opportunity to earn interest which can be large depending on the amount, interest rate and length of the loan. It is also easier to sell your land, as it is difficult to get bank loans on land and few buyers have cash to buy real estate without financing.

The seller is also protected in the event of default as they can foreclose the property similar to a bank foreclosure. It is important to get a down payment that is large enough to cover foreclosure costs, any damage to the property and serve as incentive for the buyer to keep making the payments.

In the event of foreclosure the seller keeps all payments received from buyer.

Summary

Owner financing can be an excellent option for both buyer and seller. It offers the buyer an opportunity to buy land they otherwise couldn’t afford, and allows sellers to sell land in a market where cash sales are rare. And to earn interest in addition to the money earned from the sale of the real estate.

The seller is also protected as they can foreclose in the event of default, while the buyer becomes the owner at time of sale.

February 23, 2016

Property Rights in Real Estate

Real Estate Property Rights

When we own real estate or land we like to think we have all property rights to our land. That we can do anything we want. Build what we want, where we want, when we want. Keep everyone off. Unfortunately that is not the case.

Three Types Of Real Estate Ownership

Real Estate in the United States is divided into three separate property rights. Each can be owned together, or separately. Each can be owned by one or more people, companies or other legal entities.

Air Rights
Air Rights include from the surface of the land into space. It is possible to buy land that has limited air rights. An example would be not owning the rights above 50 feet. This would stop you from building anything higher than 50 feet. A previous owner may have retained the air rights higher than 50 feet to keep the view from being blocked.
Surface Rights
Surface rights are what we typically think of as land ownership. The surface rights owner has the right to use the surface, build on it, farm it, or use the land for any legal purpose.
Mineral or Sub-Surface Rights
Mineral rights is the ownership of anything below the surface. Mineral rights includes gravel, oil, gas, gold, etc,. Mineral rights include the right to use the surface as necessary to get access to the minerals.

I have heard many complain about the oil company stealing their property rights to drill an oil well. The oil company is acting for the owner of the mineral rights who has a legal right to access his minerals. To avoid this situation the surface owner must own the mineral rights.

In addition to the three basic ownership rights there are other situations where others can use or control your real estate.

Government Rights

Unfortunately the government has rights to your land which could be considered ownership rights. They have the right to tax, and to seize and sell land for delinquent taxes.

The government also has the right to regulate land use. Regulation comes in many ways from building permits to zoning. Unfortunately government regulation of real estate becomes more intrusive every year.

Lien Holders

Lenders and lien holders also have property rights. Lenders have the right to foreclose property if the loan is not paid. Other lien holders may not have that right, but can place a lien on your property.

Rights of Way and Easements

The owner of a Right of Way Easement has the right to cross your property as prescribed in the right of way documents themselves. The purpose of the easement and the width are usually described in the Right of Way document.

Eminent Domain

The most unpopular right is that of eminent domain. Originally this right was necessary so roads and public utilities could be built. The legal theory was, the needs of the many outweigh the needs of the few.
In recent years cities and counties have abused and expanded the right of eminent domain for questionable purposes.

When you buy land your property rights are limited. They are subject to all the above and to a continuous expansion of government regulation.

Understanding Mineral Rights. Mineral rights are a cause of controversy among property owners. This is especially true in areas with oil and gas exploration. Owners of these rights have certain rights which are difficult for land owner’s to accept. These rights are often called oil rights or sub-surface rights.

Lis Pendens. Lis Pendens is latin for “suit pending”. If a Notice Of Lis Pendens is recorded at the local county recorder on property it means there is a law suit pending on that property.

February 23, 2016

How to Calculate Real Estate Values

How To Calculate Real Estate Values

The most important step when buying or selling property is to decide the real estate values. I recently observed two land purchases. The two parcels of land were almost identical. Both were 10 acres of vacant land next to one another. The first parcel sold for $5,000.00; the second for $47,000.00. Almost 10 times more!

What was the difference? The first buyer paid a fair price after calculating the real estate values, the second buyer paid ten times what the property was actually worth because he didn’t.

Every piece of real estate is different and prices vary in different areas. It is impossible to say exactly what a piece of land is worth at any given moment. The best definition is “real estate worth whatever someone is willing to pay”.

However, the following tips will give you an idea of what specific types of land in a specific area are worth.

These 5 tips explain methods to discover approximate value of a parcel of land. Following these methods you won’t pay 10 times what it’s worth. When you buy you can know you paid a fair price.

Look at Recorded Deed to calculate Land Value

In most states the seller is required to include the real estate prices on the deed. The deed transfers the property to the buyer when recorded at the local recorder of deeds. This is usually a County Recorder.

When recorded these deeds are public record. You can visit the county and see what the property values were at the time of sale. Remember values vary depending on the economy and other factors. If the property sold some time ago the value could have changed.

Look at County Assessed Value

Counties assess properties (determine property value) for taxation purposes. Property taxes are based on the property’s market value. This is also public information and can give you an estimate of the property value.

Keep in mind that county assessed values often lag real market value by several years so assessed values won’t be exactly the same as market value.

Ask a Realtor for Property Values

An experienced realtor knows the property values in his area better than anyone. If you are working with a realtor make sure you are shown multiple properties.

Remember the realtor may be working for the seller and has an obligation to get the highest price possible. You can also ask a real estate broker to give you an estimate of real estate values for a fee. This is often called a BPO (Broker’s Price Opinion).

Realtor.com, Zillow.com and Trulia.com

Realtor.com, Zillow.com, and Trulia.com are three of the most popular websites listing property for sale. Asking prices are listed so you can research properties in your chosen area.

Remember this is the price the seller is asking for the property, not necessarily the real estate values. Most sellers assume they will lower the sales price in negotiating the sale.

Realtor Company Websites

Similar to the tip above, is the real estate company’s website. The real estate company’s website may list the properties they have for sale and usually have more details and pictures than the sites above.

Property appraisal or determining real estate values is not an exact science. Even two appraisers will not calculate the exact market value of land or real estate. The above tips will give you an idea of its value, and help you avoid paying many times what it’s worth.

4 Biggest Mistakes when You Buy Property. Paying too much for the real estate is the biggest of land buying mistakes. Every parcel of land is unique. You can’t “look up” the value, making it difficult to know the right price. This especially applies in Utah Real Estate as the previous sales price is not disclosed in public records.

9 Questions to ask Before Buying Land. When Buying Land your are making a big decision and a big investment. Go slow, ask questions, and learn everything you can about the property before you buy. Below are some of the important questions to ask.

Using a Real Estate Agent. Buyers and Sellers should find an experienced, trustworthy Real Estate Agent and let them guide you through the land closing process in Utah. A Realtor is your best friend during this process and will walk you through it from beginning to end. They will help you avoid many of the pitfalls and problems that arise when buying land.

February 22, 2016

The Family Trust and Real Estate

The Family Trust And Real Estate

A Family Trust, also known as a Family Living Trust or a Revocable Family Trust, is a legal entity created by a Trust Agreement to hold ownership to your personal and real property. Your attorney will create the necessary documents to establish the trust. A Trust is created for estate planning purposes.

Purpose Of A Family Living Trust

The purpose of a family trust is to hold your assets, including land, making it easier to pass those assets to your heirs upon your death. Using a Trust allows you to do this without a probate or other court involvement. You establish the successor trustees and beneficiaries of your trust and they automatically control and own the trust and its assets upon your death.

Any terms can be entered in the trust agreement. Provisions that decide how assets are divided and how heirs are taken care of are common.

Trustees and Successor Trustees

When you create a trust you decide on trustees and successor trustees. The trustees control the trust and have full power to make any decisions for the trust. For this reason the Trust creators usually designate themselves as the trustees.

Successor trustees are also designated and become the trustees upon the death or resignation of the original trustees. When they become the trustees they have the same power as the original trustees.

Trusts are normally revocable (can be canceled) while the original trustees are living, after their death the trust becomes irrevocable. The successor trustees control the trust but are required to act in accordance with the trust agreement, which controls how the assets are divided and disbursed.

Beneficiaries

The beneficiaries of a family trust do not control a trust but the trust is set up for their benefit. This could be the minor children of the original trustees. The Trust creators can also set up others or charities as the beneficiary of their trust.

Trustees, successor trustees, other people, charities, or your pet cat, can be beneficiaries of the Trust. You have the option to setup and control how and when your assets are disbursed and to who with a trust.

Family Trust Becomes The Land Owner

When you create a Family Trust you must transfer your real estate into the Trust. At that point the family trust becomes the owner of the property. As you control the trust you still control the property. The transfer is usually done with a quit claim deed from you and any other owners to the trust.

Transferring Land In And Out

As long as you control the trust you can transfer your land out of the trust at any time. Lenders often require property be removed from a trust before they will make a loan.

Summary

You create a Family Living Trust by a Trust Agreement prepared by your attorney. The Trust allows you to transfer your assets including land into the trust and decide who controls those assets and who receives them after your death.

February 22, 2016

Tenancy in Common in Real Estate

Tenancy In Common And Its Use

Tenancy in Common is the standard form of vesting, allowing real estate to pass to the owner’s heirs. When a owners dies their part of the land passes to their heirs instead of the remaining owners. In contrast, Joint Tenancy passes the property to the surviving owners.

There are many other ways to own land: Joint Tenants, Family Trusts, Partnerships, LLC’s, Corporations. Individuals usually hold real estate as joint tenants or tenants in common.

What Does Tenancy In Common Do

Tenants In Common is the default form of vesting in most states. When used, a deceased land owner’s property is transferred to their estate and heirs upon their death. It does not go to the surviving land owners unless they are also the heirs.

How To Use Tenants in Common

You can add “Tenants In Common” or “Tenants-In-Common” after the buyers names on the purchase deed to assure this vesting is used. If nothing is entered after the names it usually defaults to this form of vesting. This vesting can be used with two or more land owners.

When To Use Tenants in Common

This form of land vesting is used when the owners want their interest in the real estate to pass to their heirs instead of the surviving owners. Unrelated land owners usually use this form of land vesting.

Spouses usually use Joint Tenancy instead, so the surviving spouse receives the property. However, if the spouses have separate children, tenants in common is used to transfer their interest to their separate children instead of their surviving spouse.

Cautions

Always use the correct vesting. If spouses mistakenly use tenants in common the surviving spouse is forced to hire an attorney and probate the deceased spouses estate to get the property transferred to them. This is not something they want to worry about after the loss of a spouse.

If Joint Tenancy is used, the transfer to the surviving spouse happens without probate, attorneys, courts or major expense. An affidavit of survivorship is recorded and is a simple one page document, easily prepared.

Again there are times when spouses would use Tenants In Common. Consider your situation and use the correct vesting for that situation.

Summary

Tenants-In-Common is the default form of vesting. It allows real property to pass to the heirs of the deceased. Owners who are not related usually use this form of vesting. Spouses also use it when they don’t want their interest in land to pass to the surviving spouse, passing it to their heirs instead.

If spouses intend for property to pass to the surviving spouse they use Joint Tenancy.

February 20, 2016

Joint Tenancy in Real Estate

Joint Tenancy allows the real estate to transfer to the surviving owner(s) on the death of one owner. It is most commonly used between spouses but is used in other situations and between more than two people.
There are many other ways to own land: Tenants in Common, Family Trusts, Partnerships, LLC’s, Corporations. Individuals usually hold real estate as joint tenants or tenants in common.

What It Does

This type of joint ownership allows for the surviving owners to receive the real estate upon the death of the other owner(s). It is most commonly used between spouses.

Upon the death of one, the surviving spouse records an affidavit of survivorship and a death certificate in the county recorder’s office. The ownership of the property is then transferred to that person.

The great advantage is the transfer happens without probate, attorneys, courts or major cost. The affidavit of survivorship is a simple one page document, easily prepared.

How To Use It

Using this type of vesting is simple. The following words “as Joint Tenants” is added after the buyer’s name on the purchase deed. If it isn’t added, the buyers can record a new deed at anytime to add it.

The following phrases are sometimes used instead of Joint Tenants; “husband and wife, as joint tenants”, or “as joint tenants with full rights of survivorship”. There are many combinations but the main part is “as Joint Tenants”.

In some states simply adding “husband and wife” after the buyers names is enough. To be safe always use “as joint tenants”. You can add the extra wording if you prefer.

Any owner can cancel this vesting between themselves and the other owner or owners. They record a deed transferring their interest to themselves or someone else without using the joint tenants wording. When they do, the remaining owners (if more that one) are still joint tenants.

When To Use It

The most common use of this joint ownership is between husband and wife but can be used in other situations and between more than two people. No matter how many people are joint tenants upon the death of one, ownership reverts to the survivors. Joint tenants is used anytime you want the surviving owners to own the property instead of the estate of the deceased owner.

Cautions

Several cautions are in order. First, make sure you want the property to go to the surviving owner(s). A common vesting error is when a couple with separate children buy real property as joint tenants when they intended their own children to receive their share of the land.

Summary

Joint Tenancy allows ownership of real estate to pass to surviving owner(s) upon the death of one of the owners. It is simple to use by adding the correct wording to a deed when purchasing land. It can be added or removed at anytime by recording a new deed at the county recorder’s office.

It is not the correct vesting for every situation. Decide what you are trying to accomplish and then choose the correct vesting.