VESTING OPTIONS

Vesting Options

Who's name(s) should be on the deed? What happens if someone passes?

Vesting Options
If purchasing land from us, you will need to decide how you would like the Title to be vested on the deed. Please review the below vesting options.
 
Definition: Vest (Verb): to give an absolute right to title or ownership, including real property and pension rights.

THE STATEMENTS/DEFINITIONS ARE FOR INFORMATION ONLY AND ARE NOT INTENDED AS LEGAL ADVICE. The decision on how to take Title is yours and is not LandBrand’s decision or responsibility. We cannot provide you any advice or recommendation to aid in your decision. An attorney within the state you are purchasing property can advise you of the effects of property law in that state, as well as the law governing various kinds of tenancy.

That being said, below are common ways to hold Title and if understood, would not be necessary to pay an attorney for advice.

Vesting Options:
 
SINGLE AND UNMARRIED PERSONS: Single and unmarried persons may take Title individually or as joint tenant or as tenant in common with one or more other persons.

MARRIED PERSONS: Married persons may hold properties as joint tenants, tenants in common or as community property.   

 A married person may hold Title to their separate property individually as their “sole and separate property” or as joint tenant or tenant in common with others.
 
COMMUNITY PROPERTY: Community property means property acquired by either or both spouses during marriage which is not separate property. Property acquired by a married person by an instrument in writing whether as tenants in common or as joint tenants or otherwise shall be presumed to be held as community property, unless such property is separate property.

Each spouse owns an undivided one-half interest, and each is entitled to dispose of his or her interest. The basic concept of community property is that “whatever may be acquired during marriage by the efforts of either spouse belongs, on acquisition, in equal halves to both”.

JOINT TENANCY: The right of survivorship is one of the primary characteristics of joint tenancy. It means upon the death of one of the co-owners, his or her joint interest in the real property will pass automatically, by operation of law, to the surviving co-owner. Property acquired by married persons as joint tenants by an instrument in writing will be presumed to be community property.

TENANCY IN COMMON: A tenancy in common arises where two or more owners hold title to property, each having a right of possession and each owning an undivided interest in the property. Each tenant may receive his or her interest in the property by different deeds or instruments. There is no right of survivorship. Each tenant may sell or will or dispose of his or her interest in the property without the other tenant(s) selling its interest. Property acquired by husband and wife as joint tenants by an instrument in writing will be presumed to be community property.

SEPARATE PROPERTY:

Separate property means:

(1) Property acquired by either spouse before marriage or after entry of a decree of dissolution of marriage;

(2) Property acquired after entry of a decree entered pursuant to Sec. 40-4-3 NMSA 1978, unless the decree provides otherwise; (Legal Separation)

(3) Property designated as separate property by a judgment or decree of any court having jurisdiction;

(4) Property acquired by either spouse by gift, bequest, devise, or descent; and

(5) Property designated as separate property by a written agreement between the spouses, including a deed or other written agreement concerning property held by spouses as joint tenants or tenants in common in which the property is designated as separate property.
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