The following information may be useful to you before or during the process of puchasing your new home. Included here are:
Buying Your New Home | Taking Title | Prescott Area Domestic Water Supply
The manner of taking title may have significant legal and tax planning consequences. You should therefore consult your attorney or tax consultant on the manner of taking title which is most appropriate for you. The material provided below is informational only. It is not intended to advise you on the manner in which to take title.
By statute, all property acquired during a marriage is presumed to be community property, except that acquired by gift, devise or descent. Probate is required when either spouse dies. Example: A and B, husband and wife.
The manner of holding title can only be created by express language stating the intent to acquire as joint tenants with right of survivorship. Death certificate and estate tax waiver required on the first to decease. Probate on the second. Example: A and B, husband and wife, not as tenants in common and not as a community property estate, but as joint tenants with right of survivorship.
Property conveyed to persons not married to each other, or other legal entities (or a mix of the two) hold title as tenants in common. Each one an undivided interest for its fractional interest, or in equal parts if no fractional interest is stated. If only one spouse of a married could is involved, a disclaimer is required. See #5 following. Examples: A, a single man, and undivided 2/5 interest, B, husband of C, as his sole and separate property, and undivided 3/10 interest and ABC Corp., an Arizona corporation, an undivided 3/10 interest. (Interests are not equal but in the amount specified. Interest must total 1 (one or 100%).
The manner of holding title can only be created by express language negating the presumption of community property holding. This can be accomplished by exchanging disclaimer deeds for an undivided 1/2 interest each, or by a signed acceptance of tenancy in common on the deed. Example: A and B, husband and wife, not as joint tenants with right of survivorship and not as community property estate, but as tenants in common.
In order for a married person to hold title as his/her sole and separate property, a disclaimer deed from the spouse must be recorded after the acquisition deed. (Except for property acquired by gift, devise or descent) Example: A, husband of B, as his sole and separate property.
This manner of holding title was referenced in the 1995 revision of the Arizona Probate Code. There is, however, no Arizona law establishing the manner of creating this interest or the legal effect (i.e. need for probate, tax consequences, etc.) of holding title in this manner. Consequently, while we will vest title in buyers as community property with right of survivorship upon request, we make no representations or assurances regarding the validity or legal effect of taking title in this manner. Until statutory guidance is provided, we will require (1) express language stating the intent to acquire as community property with right of survivorship and (2) probate when either spouse dies. Example: A and B, husband and wife, not as tenants in common nor as a community property estate nor as Joint Tenants with right of survivorship, but as community property with right of survivorship.
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