In California, real property can be owned by multiple individuals or entities. Ownership is reflected by "holding" title to the property. The way in which title to a property is held by two or more people can have a significant impact on ownership interests and rights. When property is owned by two or more people, it is common for the property be held either as Joint Tenants or Tenants in Common. There are several differences between these two forms of holding title that are important to understand, because they affect survivorship, division of assets, and reimbursements. On Tuesday, August 13th 2019, real estate attorney Lorena Roel presented a webinar about holding title to property in California, specifically focused on Joint Tenants and Tenants in Common. Whether you a real estate professional, homeowner, investor, escrow officer, or potential buyer, this webinar highlights key elements of holding title and dissects important considerations when selecting how to hold title. In the first part of an anticipated series of webinars related to title, this presentation focuses only on Joint Tenants and Tenants in Common, including: • General mechanics for holding title to property • General estate planning considerations that affect an owner's rights • Differences between joint tenancy and tenants in common • Process for creating a joint tenancy through the four unities • Default elements for joint tenants vs. tenants in common • Changing how title is held from one form to another • Title disputes and potential consequences under each form, and more!

2. DISCLAIMER
You agree, by participating in this webinar, that
the information presented does not constitute
legal advice and is being presented for
informational purposes only. You agree that no
attorney-client relationship is established or
assumed by participating in this webinar and that
the information or suggestions presented in this
broad overview may not apply to your specific
circumstances.

4. BASICS OF
HOLDING TITLE TO
REAL PROPERTY

5. HOLDING TITLE
FOUR RECOGNIZED METHODS IN CALIFORNIA
• Joint Tenancy
• Tenancy in Common
• Tenancy in Partnership
• Community Property
METHOD IS REFLECTED ON RECORDED DEED

6. METHODS FOR OBTAINING TITLE
TRANSFER FROM PREVIOUS OWNER TO NEW OWNER
• Grant Deed
• Quitclaim Deed
• Warranty Deed
• Deeds at Judicial Sales A Deed is a Written Instrument That
Conveys or Transfers Title to Real
Property

7. REQUIREMENTS FOR A DEED
BASIC REQUIREMENTS
1. Name of Grantor
• Living and Have the Capacity to Contract
2. Name of the Grantee
• Living and Capable of Taking and Holding Title to Real Property
3. Description of the Property
4. Language Indicating Intent to Convey Property

8. REQUIREMENTS FOR A DEED
RECORDING A DEED
• Recorded at County Recorder’s Office
• Race-Notice System in California
• Required to Be Notarized for Recording

9. TITLE INSURANCE & LOANS
TITLE INSURANCE
• Available Throughout the State
• Not Legally Required to Obtain
• Lenders May Require Title Insurance Before Funding
LOANS
• Person on Title to the Property Can Be Different Than Who is
on the Loan

10. NOTE:
This Presentation — Part 1 — Only
Covers Joint Tenants and Tenants in
Common.
Other Methods of Holding Title,
Including as Spouses, Will Be Covered in
Part 2 at a Later Date

11. TENANTS IN
COMMON

12. TENANTS IN COMMON
BASIC ELEMENTS
• When Title is Held By Two or More People
• Created By Deed
• Express Terms; or
• Implied Terms
• Percentage of Ownership
• Express; or
• Implied
All Tenancies Owned By Several
Persons That is Not In Joint Ownership,
Partnership, or CP is Considered
Tenants in Common

13. JOINT TENANTS

14. JOINT TENANTS
BASIC ELEMENTS
• When Title is Held Equitable By Two or More People
• Percentage of Ownership
• Equal
• Identical
• Coextensive One Joint Tenant Cannot Have a ¼
Interest in the Property and the Other
Joint Tenant Have ¾ — Must Be Equal

15. JOINT TENANTS
BASIC ELEMENTS
• Joint Tenancy Created By Deed
• Express Declaration
• Explicit Language
• All Four Unities Must Be Present for Joint Tenancy
• Interest
• Title
• Time
• Possession

16. RIGHTS &
DIFFERENCES

17. RIGHT OF SURVIVORSHIP
JOINT TENANCY
If One Owner Dies, The Other Owner(s)
Now Own 100%
TENANTS IN COMMON
If One Owner Dies, Their Interest Can
Be Disposed of Through Their
Will/Trust/Intestate

18. RIGHTS OF TENANTS
FOR BOTH JOINT TENANTS & TENANTS IN COMMON
• Co-Tenants Have a Right, Without Consent or Approval
Of Other Co-Tenant(s), To:
• Sale
• Encumbered
• Take Possession

19. RESTRICTIONS ON TENANTS
FOR BOTH JOINT TENANTS & TENANTS IN COMMON
• Regarding the Community Property, Co-Tenants Cannot
Enter Into Certain Contracts:
• Easement
• Servitude
• Removal of Timber or Materials

20. INCOME FROM PROPERTY
FOR BOTH JOINT TENANTS & TENANTS IN COMMON
• When Occupied By Co-Tenant
• Contract Concerning Division of Income
• No Entitlement If One Tenant Does the Labor and Management to Produce
Revenue
• When Occupied By Third Party

21. INCOME FROM PROPERTY
FOR BOTH JOINT TENANTS & TENANTS IN COMMON
• When Occupied By Co-Tenant
• Contract Concerning Division of Income
• No Entitlement If One Tenant Does the Labor and Management to Produce
Revenue
• When Occupied By Third Party
Absent an Agreement, There is No
Entitlement for Compensation for
Managing or Caring for the Property

22. REIMBURSEMENTS
JOINT TENANCY
No Entitlement to Reimbursement,
Absent an Express Agreement
*Possible Recourse: Rebut Joint
Tenancy Presumption
TENANTS IN COMMON
(Based Upon Ownership Interest)
Entitled to Credit from Other Co-Tenants
for Expenditures Necessarily Made for
the Protection of the Common Property
• Taxes
• Mortgages
• Necessary Repairs

23. CHANGING BETWEEN
JOINT TENANCY &
TENANTS IN
COMMON

24. CHANGING BETWEEN FORMS
FOR CHANGES TO OR FROM TENANTS IN COMMON
• Back and Forth is Permitted
• Required Clear & Distinct Action
Absent an Agreement, There is No
Entitlement for Compensation for
Managing or Caring for the Property

25. CHANGING HOW TITLE IS HELD
CHANGING OUT OF
JOINT TENANCY
Co-Tenant Can Change to Tenants in
Common Without Other Owners’
Consent
Only Applies to Co-Tenants Interest
If More Than Two Tenants, Other
Owners Stay Joint Tenants to
Remaining Percentage Interest
CHANGING OUT OF
TENANTS IN COMMON
Cannot Change to Joint Tenancy
Without Consent
Can Subdivide, but Not As Joint Tenants

26. DISPUTES OVER
TITLE

27. DISPUTES OVER TITLE
DISPUTES OVER OWNERSHIP PERCENTAGE
• Courts Will Evaluate
• Money Contributed at Purchase
• Money Contributed During Tenancy
PARTITION ACTIONS