First my little disclaimer 
The following is not legal advice but simply a description of the various ways a deed can be vested. Many land owners are surprised when they try to sell their land only to find that the deed was not recorded correctly or the type of vesting does not allowing them to sell unless they go through probate. What do I mean? Let’s talk about types of vesting in this post. Not to be confused with Types of Deeds (which can be General Warranty Deed, Special Warranty Deed, Warranty Deed, Bargain and Sale Deed, Quit Claim Deed, etc), vesting is the manner in which the owner(s) hold title to the property. Following are some of the most common ways an owner can hold title.
Types of Deed Vesting
Tenants in common
Tenants in common also known as joint tenants, is where two or more owners own shares of the property and can convey their respective interests separately. The ownership may or may not be equal i.e. one owner may own 30% while another owner may own 70% of the property. The death of one owner does NOT transfer his/her ownership rights to the other owners. This type is common among business partners and not among spouses though many are recorded as such since in many states the default vesting is Tenants in Common.
Joint Tenants with right of Survivorship
The owners all own non-divided equal shares in the property. When one owner dies, his/her interest is automatically transferred to the other remaining owners and their respective ownership interest increase as per the deceased owner’s interest. No probate is necessary in this case as the transfer is automatic.
Tenants by Entirety
Some states allow married couples to vest title using Tenants by Entirety. In this case, in order for one spouse to modify his/her ownership interest in the property in anyway, the consent of both spouses is needed. It also provides that when one spouse passes away, the surviving spouse gains full ownership of the property.
Transfer on Death Tenancy
This is less common and as can be inferred from the name, a Transfer On Death Tenancy, or Beneficiary Deed, allows an owner of real property to execute a deed that names a beneficiary who will obtain title to the property at the owner’s death without going through probate. Many owners who do no realize that their deed is actually vested as Tenants in Common may have to go through probate when they ultimately want to sell their land. Depending on if the deceased spouse has other beneficiaries or not, the situation will have to be handles accordingly. With the deceased having no beneficiaries, it may be a simple probate case (which usually takes time). If you own property, and whether you are thinking of selling or not, it would be worth your while to verify how your deed is vested.
Are you thinking about selling? Contact us today at 1-800-665-0670.