Navigating property ownership titles in Florida can get complicated with all the legal jargon. So, to make it easier to understand, I've included some simple examples to break it down. While some of us may be familiar with the terminology and what each option offers, it's important to consider those who might and appreciate a simpler explanation.
W
hile I specialize in neighborhoods such as Coral Gables, Dadeland, Kendall, Palmetto Bay, Pinecrest, South Miami, and Kings Creek, it's important to note that the choice of ownership title isn't influenced by specific neighborhoods. Instead, it's determined by Florida laws governing residence and property ownership.
Here's an overview of the common types of property ownership titles allowed in Florida, accompanied by straightforward examples.
Property Ownership Titles
1.
Sole Ownership: Ever wanted to call all the shots? Well, with sole ownership, you are your own boss of your property. You can sell it, mortgage it, or pass it on without needing anyone else's say-so.
Example: Imagine Emily buying this cute condo in Downtown Dadeland. It's all hers to do whatever she wants with the property.
2.
Joint Tenancy with Right of Survivorship (JTWROS): This one's for sharing.This form of ownership can be established between any two or more individuals, regardless of their relationship. It's commonly used by friends, business partners, or family members.
Example: Good friends John and Sarah buy a vacation Coral Gables home. If John passes away, Sarah gets John's share and entire property becomes hers.
3.
Tenancy in Common: Here, you and maybe a couple of pals own a place together, but each of you has your own share of the property. If someone dies, their piece goes to their family or whoever they said should get it.
Example: Imagine Michael and Beverly grabbing hold of a duplex rental property in Kendall. Beverly secures 60% ownership, while Michael claims the remaining 40%. If Beverly decides to sell her share or in the event of her passing, Michael has the option to buy Beverly's portion and own the entire property. Alternatively, in the case of Beverly's demise, her surviving family members may opt to retain the property or offer it for sale to Michael.
4.
Tenancy by Entirety: This one's is reserved for married folks. If you and your spouse own a place together and one of you passes away, the other automatically gets the entire property.
Example: Say married couple, Peter and Rita, buy a house in South Miami. If Peter dies, Laura's got the whole property to herself.
5.
Community Property (not recognized in Florida): I often work with buyers relocating to Florida from community property states such as California or Texas. In community property states, real estate acquired during marriage is considered equally owned by both spouses.Florida doesn't operate under community property laws.
In Florida, ownership titles follow a different set of rules, so it's essential for newcomers to understand the distinction.
*Note:* No need for an example here, as Florida doesn't play by these rules.
In summary these are the ways you can own property in Florida, broken down into easy-to-understand examples. If you're still scratching your head, it might be a good idea to chat with a professioal before making any big decisions about how to own your slice of Miami.
About the Author: Liz Kenneally is a seasoned real estate agent in Miami with extensive experience in the city's dynamic market. Specializing in coveted neighborhoods such as Coral Gables, Dadeland, Continental Park, East Kendall, Pinecrest, South Miami, and The Falls, Liz ensures smooth transactions for her diverse clientele. Fluent in both English and Spanish, she can be contacted at 786-423-3348 or through the EMAIL AGENT form provided alongside this blog.