Methods of Real Estate Ownership in Virginia

This a an outline of the basic characteristics of the various methods of real estate ownership in Virginia. There are many considerations involving taxes and estate planning which may affect your decision as to the manner in which title is taken. If you have any questions about the differing forms of ownership, please discuss these issues with your attorney or tax advisor.

Sole Ownership
The property is conveyed to one person, married or unmarried. Although the sole owner has the right to dispose of the property through gift, sale, or Will, this type of ownership is subject to certain statutory rights of the owner's surviving spouse, whether the owner was married at the time of acquiring the property or whether the owner becomes married after acquiring the property. Because of this spousal interest, a married sole owner generally cannot dispose of the property without the consent of his or her spouse.

Tenants in Common
The property is conveyed to two or more persons, married or unmarried, each of whom will own an undivided percentage interest in the property. The percentage interest of each owner does not have to be equal, and may be disposed of by that owner at any time. As with sole ownership, this form of ownership is subject to certain statutory rights of any owner's surviving spouse, whether that owner was married at the time of acquiring the property or whether the owner becomes married after acquiring the property. Because of this spousal interest, a married tenant in common generally cannot dispose of the property without the consent of his or her spouse. If disagreement arises between or among the owners, any owner mayforce a partition or judicial sale of the property. Each owner's percentage interest may be subject to claims of creditors.

Joint Tenents with Right of Surivorship
The property is conveyed to two or more persons, married or unmarried, each of whom will own an equal undivided percentage interest in the property. So long as more than one owner remains alive, all joint owners must consent to any disposition of the property. Right of Survivorship means that the interest of an owner who dies automatically vests in the surviving owner or owners, and the last survivor automatically becomes the sole owner. As with tenants in common, if disagreement arises between or among joint owners, any owner may force a partition or judicial sale of the property. Likewise, each owner's percentage interest may be subject to claims of creditors.

Tenants by the Entirety with Right of Survivorship
This is a special type of joint tenancy which can exist only between husband and wife, and is the form of ownership most commonly used by married couples in Virginia. The same survivorship principles apply as in the joint tenancy with the right of survivorship, and both spouses must of course concur in any disposition of the property so long as both spouses remain alive. The important difference between this and all other forms of ownership is that the property will not be subject to creditors' claims unless both husband and wife are jointly responsible for the debt. If you are obtaining a commercial loan, your lender will usually require this type of ownership.

This Web site provides general information only. Laws develop over time and differ from state to state. This Web site does not provide legal advice about specific legal problems. Let The Law Firm of Evan H. Farr, P.C. advise you about your particular situation.