Title is the legal documentation that bestows ownership of Las Vegas real estate or anywhere else in the country. This is to be indicated in Part II of the 1003 Uniform Residential Loan Application as “manner in which title will be held.”
The decision of how the title will be held should be considered first since it has a great impact on future tax planning, the financial future of the borrower(s) and their respective heirs, and the choice of the Las Vegas real estate lender.
It is most important for the Las Vegas mortgage consultant to work hand-in-hand with the Las Vegas home borrower’s financial planner or tax consultant to assist their mutual client in order to make decisions that work best for their financial situation.
For example, most married couples would consider holding title with Joint Tenancy. But if one spouse has a good credit history while the other has damaged credit that may prevent funding of the Las Vegas real estate loan, it would be advantageous to make a real estate home title transfer in the name of the spouse with the good credit rating. When a married person takes title to real property in his or her name alone in sole ownership, the spouse is usually asked to sign a quitclaim deed giving up any ownership interest in the Las Vegas property.
Probably the best way to hold title to homes and other real property is in a revocable living trust. There are many advantages including avoidance of probate costs and delays.
Most living trusts cost less than $1,000 and deeding real property into the living trust, there are no disadvantages.
Until the death or disability of the trust creator, the Las Vegas home and other real estate in the living trust are treated normally.
Since the living trust is revocable, these assets can be sold, bought and financed.
When the trustor dies, the assets are distributed according to the trust’s terms.
Privacy is a major advantage. Unlike a will, which becomes part of the public probate file, the living trust terms remain private.
Tenants in Common
When two or more co-owners take title to Las Vegas real estate, especially if they are not married to each other, they often become tenants in common.
Each tenant in common owns a specified interest in the Las Vegas property. It doesn’t need to be equal. For example, one owner might own a 60% interest, another could own a 10% interest and a third tenant in common could own a 30% share. The percentage ownership is specified on the deed.
Common ways to hold title are broken down into options that fall under the categories of sole ownership or co-ownership. Many states permit the holding of title in a living trust, but some lenders do not accept those terms. There are ways around this, but this is where the Las Vegas financial planner and the mortgage planner can make a tremendous difference by working together for the good of the Las Vegas real estate owner.
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Las Vegas real estate ways to hold title including joint tenancy, living trust and tenants in common.