Many factors come into the picture when you’re looking for a home to purchase with your significant other. While you may be focused on things like finding the perfect home and securing financing, there’s something else for you to consider—how the home is titled.
How the property is titled can determine what happens to it if one of the owners dies. If the property is set with the right of survivorship, each owner has an equal and undivided interest in the property. This means that ownership is shared as a whole, which is ideal if the property should go to the surviving owner if one owner dies.
How does ownership transfer after one owner dies?
The most important aspect of a title with a right of survivorship is that the surviving owner automatically gets full ownership once the death certificate is recorded. The property doesn’t have to go through the probate process, so this is often beneficial simply because of the ease of the transfer and the speed.
One limitation to this type of title is that neither owner can stipulate that their share be given to someone other than the other owner. This means that even if they put the property in a will, the right of survivorship would be what is followed.
Every aspect of buying a home, including contract review, due diligence and titling, should be handled carefully. It may be beneficial to work with someone familiar with residential closings so they can provide you with an overview of your options and guidance on how to proceed.