I WAS ON THE DEED WITH SOMEONE WHO PASSED AWAY. DO I OWN THE PROPERTY OUTRIGHT NOW?
Specific Considerations for Individuals Jointly Owning Property
When property is inherited, gifted, or purchased by two or more individuals, the deed will specifically name any and all individuals receiving the property. These individuals are known typically as “Parties of the Second Part,” and/or “Grantees.” How these people own the property is based upon the language following the specific naming of the Grantees and language throughout the deed itself.
The two main ways that multiple Grantees will receive property are as “tenants in common” or “joint tenants with rights of survivorship.” The default is often tenants in common, unless the deed specifically delineates ownership of the property by the Grantees is to be held as “joint tenants with rights of survivorship,” or “JTROS.” A JTROS deed has very specific language that must be contained throughout the deed, so it is very important that if this is how you and your fellow Grantees wish to own property, that you let the drafting attorney know before your deed is signed by the Grantor (the person granting the property to you). If you are unsure, ask for questions and guidance from your drafting attorney.
TENANTS IN COMMON
Tenants in Common means that you share equally in the property, but only a portion belongs specifically to you. When your co-tenant passes away, their share does not automatically pass to you (or the remaining Grantees) upon their death. Rather, their interest passes to their estate. Yes, this is even the case for spouses who do not hold property as joint tenants with rights of survivorship, although this was not always the case. Their interest would then be subject to the opening of probate (whether through probating a will or estate administration) to pass their interest to their beneficiaries (under a will) or their heirs at law (if there is no valid will). In addition to this being a lengthy process, you could end up owning the property with one (or more) individuals. Each of these considerations can hold up offering the property as collateral for loans, bonds, and even selling the property.
JOINT TENANTS WITH RIGHTS OF SURVIVORSHIP
In opposition, however, a JTROS deed allows the interest held by the deceased party to pass to the remaining co-tenants immediately upon death. However, to make sure title is clear for future mortgages or sales, there are steps that should be taken by the surviving co-tenants to make sure there are no hold-ups in any future processes involving the real property. Former practice would have been to file a certified copy of the death certificate. However, with the concerns of private information becoming public record, as is the case whenever anything is recorded in the Superior Court Clerk’s Office, this practice is being heavily dissuaded. Even redacted copies of the death certificates are being dissuaded as more and more information contained on death certificates is being considered “private information.”
If you currently own property with your spouse, siblings, or friends and are not currently listed as joint tenants with rights of survivorship, you can contact our office to discuss the benefits and consequences of holding title this way and determine which is a better option for you.
If you own property as a Joint Tenant with Rights of Survivorship, our office can help you make it clear on the record that you (and any other surviving co-tenants) own the property due to the passing of one or more of your co-tenants.
We’re here to help you understand how you own your property, the benefits and consequences of that ownership, other options you may have in sharing ownership in property, as well as transferring or clearing title to your property following the death of a co-tenant. Call Your Hometown Attorney today at 706-359-3332 and let us educate and assist you with your real property!