Merry Silbaugh, ABR
Associate Broker   Cell 602-617-3245
Ways To Take Title in Arizona
Outlined below is a general description of the ways to take title to real estate in Arizona. Arizona is a community property state, therefore property acquired by a husband and wife is presumed to be community property unless specified otherwise.

Each method of taking title has certain significant legal and tax consequences. therefore, you are encouraged to obtain advice from an attorney, accountant or other qualified professional. A brief description of the ways to take title follows: 1. SOLE AND SEPARATE - This method is for a single or a married person dealing with his or her sole and separate property. (Note: If a married person acquires title as sole and separate, his or her spouse must execute a disclaimer deed to avoid the presumption of community property.)

2. COMMUNITY PROPERTY - Requires a valid marriage between two persons. - Each spouse holds an undivided one-half interest in the estate. - One spouse cannot partition the proper- ty by selling his and her interest. - Requires signatures of both spouses to convey or encumber. - Each spouse can devise (will) one-half of the community property. - Upon death the estate of the decedent must be "cleared" through probate, affidavit or adjudication. - Both halves of the community proper- ty are entitled to a "stepped-up" tax basis as of the date of death.

3. JOINT TENANCY WITH THE RIGHT OF SURVIVORSHIP

- Parties need not be married; may be more than two joint tenants.

- Each joint tenant holds an equal and undivided interest in th estate, unity of interest.

- One joint tenant can partition the property by selling his or her joint interest. - Requires signatures of all joint tenants to convey or encumber the whole.

- Estate passes to surviving joint tenants outside of probate.

- No court action required to "clear" title upon death of joint tenant(s).

- Deceased tenant's share is entitled to a "stepped-up" tax basis as of the date of death.

4. COMMUNITY PROPERTY WITH THE RIGHT OF SURVIVORSHIP

- Requires a valid marriage between two persons.

- Each spouse holds an undivided one- half interest in the estate.

- One spouse cannot partition the property by selling his or her interest.

- Requires signatures of both spouses to convey or encumber.

- Estate passes to the surviving spouse outside of probate.

- No court action required to "clear" title upon the first death.

- Both halves of the community property are entitled to a "stepped-up" tax basis as of the date of death.

5. TENANCY IN COMMON

- Parties need not be married; may be more than two tenants in common.

- Each tenant in common holds an undi- vided fractional interest in the estate. Can be diproportionate, e.g., 20% and 80%; 60% and 40%; 20%, 20%, 20% and 40%; etc.

- Each tenant's share can be conveyed, mortgaged or devised to a third party.

- Requires signatures of all tenants to convey or encumber the whole.

- Upon death the tenant's propor- tionate share passes to his or her heirs by will or intestacy.

- Upon death the estate of the de- cedent must be "cleared" through probate, affidavit or adjudication.

- Each share has its own tax basis.

6. CORPORATION

- The corporation must be duly formed and in good standing in the state of incorporation.

7. GENERAL PARTNERSHIP

- The general partnership, defined as a voluntary association of two or more persons as co-owners in a business for profit, must be duly formed under the laws of the state of the formation of the partnership.

8. LIMITED PARTNERSHIP

- Defined as two or more persons under the laws of Arizona, or another state, and having one or more general partners and one or more limited partners.

- A certificate of limited partner- ship must be filed in the Office of the Secretary of State.

Be sure to ask the advice of your attorney and/or accountant in determining which method is best for you.


ScottsdaleFountain Hills Arizona


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RE/MAX Sun Properties
16704 Ave. of the Fountains 101 • Fountain Hills, AZ 85268
Associate Broker • Cell 602-617-3245