When purchasing Florida real estate, understanding how you hold title is crucial for determining your rights, ownership division, and how your property can be transferred or inherited. The way title is held can have important legal, financial, and tax consequences. Below are three common ways to hold title to real estate in Florida .
Joint Tenancy
In Florida, joint tenancy allows two or more individuals to hold title together with equal rights to the property. The defining feature of joint tenancy is the right of survivorship, meaning that upon the death of one owner, the property interest automatically passes to the surviving joint tenant(s).
Eligibility: Two or more individuals can hold title.
Division of Ownership: Equal ownership for all parties involved.
Right of Survivorship: Yes, interest automatically passes to surviving tenants.
Right to Convey: Owners may sell or mortgage their interest with the consent of all joint tenants.
Tenancy in Common
Unlike joint tenancy, tenancy in common allows two or more individuals to hold property without the right of survivorship. When one tenant in common dies, their interest passes to their heirs or as defined in their will.
Eligibility: Two or more individuals can hold title, and they need not be married.
Division of Ownership: Ownership can be divided into equal or unequal shares.
Right of Survivorship: No, interest can pass to heirs or beneficiaries.
Right to Convey: Each owner may sell or mortgage their share without consent from the other co-owners.
Tenancy by the Entirety (For Married Couples)
This form of ownership is exclusively available to married couples. It offers strong protections, especially in Florida, as it protects against creditors and guarantees that the surviving spouse automatically becomes the sole owner upon the death of the other spouse.
Eligibility: Available only to married couples.
Division of Ownership: Equal ownership for both spouses.
Right of Survivorship: Yes, the survivor automatically becomes the sole owner.
Right to Convey: Both spouses must consent to sell or mortgage the property.
The way you hold title to a property in Florida can have significant legal, tax, and inheritance implications. Whether you choose joint tenancy, tenancy in common, or tenancy by the entirety, it’s important to understand the benefits and risks associated with each. At Title Security Group, we’re committed to guiding you through the title process to ensure that your property is held in the most effective way to meet your needs.
