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(This information is not legal advice and is not intended to be taken as legal advice. This article is intended to provide only general, non-specific information. This article is not intended to cover all the issues related to the topic discussed. If you have any legal questions, you should consult with a real estate attorney licensed in the state where the real estate is located.)
During a timeshare closing, your escrow or closing agent should send you a closing packet with escrow instructions for your review and approval. Included should be a document asking you to choose a vesting option for how you would like to hold title to the timeshare you are purchasing.
Every state has its own regulations, so not all vesting options will be available in each state. Follows are examples of some of the vesting choices that may be available to you.
SOLE OWNERSHIP is ownership by one individual or legal entity.
Ownership by two or more parties can be vested in the forms below.
JOINT TENANCY (also called JOINT TENANTS WITH FULL RIGHTS OF SURVIVORSHIP) is ownership by two or more parties. The primary characteristic of joint tenancy is that in the event one of the co-owners dies, the surviving owner(s) would automatically take title when a certified copy of a death certificate is recorded into public records and a probate process would not be required. An individual joint tenant may sell or divest their interest in the property. If a joint tenant sells their individual interest, the new deed will be vested as tenancy in common, and no tenant would then have a right of survivorship. A joint tenant cannot will his interest to another party.
TENANTS IN COMMON is ownership by two or more parties where each individual has an undivided interest. The ownership is often divided equally, but unequal division is possible. owner can sell, convey, or mortgage their individual portion of the interest without the consent of the others.
TENANTS BY THE ENTIRETY is ownership for husband and wife. It is similar to a joint tenancy in that is also characterized by survivorship. With this vesting option the married couple is legally considered to be one entity. Ownership can be sold or divested only by joint action of the husband and wife during their lives. Creditors of an individual spouse may not attach and sell the interest of a debtor spouse. Therefore, only creditors of the couple may attach and sell the interest in the property. Generally, a tenancy by the entirety cannot be reduced to a joint tenancy or tenancy in common by simply recording another conveyance of property- but must be accompanied by a divorce or annulment. Not all states recognize this type of vesting. In some states, tenants by the entirety is assumed for a husband and wife if the deed does not properly state vesting.
COMMUNITY PROPERTY is ownership by a married couple where each spouse owns one-half of the property bought during their marriage. Currently there are nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. Real property in these states that is acquired by a husband and wife, or by either one of them alone, is presumed to be community property unless otherwise stated. Each spouse has equal rights of management and control of the property and each spouse has the right and the convey one-half of the interest in their will. For one spouse to convey their interest while they are alive, the other spouse must agree.
During a timeshare closing, your escrow or closing agent should send you a closing packet with escrow instructions for your review and approval. Included should be a document asking you to choose a vesting option for how you would like to hold title to the timeshare you are purchasing.
Every state has its own regulations, so not all vesting options will be available in each state. Follows are examples of some of the vesting choices that may be available to you.
SOLE OWNERSHIP is ownership by one individual or legal entity.
Ownership by two or more parties can be vested in the forms below.
JOINT TENANCY (also called JOINT TENANTS WITH FULL RIGHTS OF SURVIVORSHIP) is ownership by two or more parties. The primary characteristic of joint tenancy is that in the event one of the co-owners dies, the surviving owner(s) would automatically take title when a certified copy of a death certificate is recorded into public records and a probate process would not be required. An individual joint tenant may sell or divest their interest in the property. If a joint tenant sells their individual interest, the new deed will be vested as tenancy in common, and no tenant would then have a right of survivorship. A joint tenant cannot will his interest to another party.
TENANTS IN COMMON is ownership by two or more parties where each individual has an undivided interest. The ownership is often divided equally, but unequal division is possible. owner can sell, convey, or mortgage their individual portion of the interest without the consent of the others.
TENANTS BY THE ENTIRETY is ownership for husband and wife. It is similar to a joint tenancy in that is also characterized by survivorship. With this vesting option the married couple is legally considered to be one entity. Ownership can be sold or divested only by joint action of the husband and wife during their lives. Creditors of an individual spouse may not attach and sell the interest of a debtor spouse. Therefore, only creditors of the couple may attach and sell the interest in the property. Generally, a tenancy by the entirety cannot be reduced to a joint tenancy or tenancy in common by simply recording another conveyance of property- but must be accompanied by a divorce or annulment. Not all states recognize this type of vesting. In some states, tenants by the entirety is assumed for a husband and wife if the deed does not properly state vesting.
COMMUNITY PROPERTY is ownership by a married couple where each spouse owns one-half of the property bought during their marriage. Currently there are nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. Real property in these states that is acquired by a husband and wife, or by either one of them alone, is presumed to be community property unless otherwise stated. Each spouse has equal rights of management and control of the property and each spouse has the right and the convey one-half of the interest in their will. For one spouse to convey their interest while they are alive, the other spouse must agree.