Ownership in Property
When it comes to holding title in real estate with another person or entity, there are two highly common ways to be vested on a deed: Tenants in Common and Joint Tenants with the Rights of Survivorship.
Tenants in Common is ownership of the real estate between two individuals and entities or more. The ownership is undivided, meaning that your ownership is of the whole tract or real estate and not a particular portion. Additionally, the ownership can be held in equal shares or unequal shares. If owned by individuals and one of those tenants dies, their interest would then pass to their heirs. Also, as a tenant in common, you may typically freely transfer your percentage of ownership in the real estate.
The second main way of holding title to real estate with another is Joint Tenancy with Rights of Survivorship (JTWRS). JTWRS is mostly seen between married couples or various family members. Like tenants in common, each party shares an undivided interest in the real estate. However, that interest share is equal and upon the death of one party their share transfers automatically to the surviving owner. You can see why this is most typical between married couples.
Interest in Property
Marital interest also comes in to play when owning real estate in Kansas. The State of Kansas is what is known as a “One to Buy, Two to Sell” state. Even if a spouse is not named on a deed or other document transferring ownership, they still have what is called a marital interest. This comes in to play when selling or mortgaging a piece of property. Even if John is the only one in title, John and his wife, Jill, must both sign any deed transferring or mortgaging the property (with one small exception that is specific and too lengthy for this discussion. However, feel free to give me a ring and I will explain).
Another way to possess interest in a property is by way of an equitable interest. This is commonly seen in installment contracts. Typically, the buyer of the real estate under contract will not receive a deed until all of the payments are made. Therefore, an Affidavit of Equitable Interest is filed. When an Affidavit of Equitable Interest is filed with the Register of Deeds it is a declaration that another party has interest in the property creating a cloud on the title. Party A still retains ownership of the property, but Party B has declared that they have equity in the real estate.
Finally, a Transfer on Death Deed is a statement of future ownership in property. This is often used in estate planning and can simplify things for loved ones after an owner has passed away. This type of ownership does not pass an interest in the real estate until the grantor on the deed has passed. Additionally, this deed is fully revocable until the death of the grantor.
These are just a few of the different types of joint ownership of real estate and common ownership interest scenarios that you might encounter when buying or selling property. At Tallgrass Title, it’s our job to walk through these situations with you and ensure that our clients are transferring and receiving real estate with clean title. We’re happy to answer any question you may come across about the many kinds of ownership!