Important News and Techniques for Today's Real Estate Market

I wanted to share this important reminder on taking title as "Joint Tenants" from Jim Donaghue of Donaghue and Chandler Attorneys.  Pay attention:  Jim is offering a unique opportunity for Georgia property owners at the end of the article. 

I have recently been reminded how important it is for couples to hold title as joint tenants: a young couple with a small child bought a house, and the Warranty Deed did not vest title as joint tenants. The husband had an accident, leaving the wife with a small child. Because the Warranty Deed did not vest title in the couple as Joint Tenants, the wife found herself in a bind. She had to spend over $1000.00 plus costs to administer the husband's estate, and found herself owning the house jointly with her 3 year old child. She continues to find herself in a bind, since she had to get a court order to allow herself to either refinance or sell the property (since the child isn't legally competent to execute any title documents) at an additional legal expense, and additional time requirement. This situation will not be resolved until the child turns 18 (at which time the child could legally claim half the house!)

Another recent closing involved an older couple who bought a few years ago, and again title was held as tenants in common... In this case, the survivor paid over $2600 to probate the will to allow him to sell the property.

Please don't let this happen to any of your clients... this is too easy to remedy, and too expensive to leave to chance!

UNLESS one of the following statements is true, a married couple should hold title as joint tenants without exception:

A) A prenuptual agreement specifies property ownership rights
B) An in-depth, highly organized, estate plan calls for a different form of ownership (PLEASE NOTE: a Will, by itself, does NOT satisfy this requirement)
C) Both members of the couple have additional heirs that they want to share in the ownership of the property, and therefore decide (after due consideration) to take title as Tenants in Common... If this is the case, the couple should have wills drafted that reflect their intent.

If you are unsure how you hold title, take a look at the Warranty Deed you should have received in the mail following your purchase closing. If the vesting language (the Grantor language) does not specifically mention taking title as Joint Tenants, I highly recommend you take immediate action to protect your spouse from additional, unnecessary problems.

Additionally, if you have refinanced since you bought the house, and the loan was only in one spouse's name, title may be only in that spouses name. If you are unsure, please give us a call and we'll be happy to assist.

For properties located in Georgia, Donaghue & Chandler, LLC, will prepare and record a quit-claim deed vesting title in you as Joint Tenants, should you not be currently, for $50.00. Taking this step will save your surviving spouse a great deal of additional heartache in the event of an accident or illness.

CONTACT DONAGHUE AND CHANDLER at 678-902-4000 or visit them online at www.dandc-law.com