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Understanding the Different Ways to Own Real Property in New York State

 

When purchasing real estate in New York State, one of the most important decisions you’ll make is how to hold title. The way you take ownership affects your rights, responsibilities, taxes, and how the property is transferred upon your death. Whether you’re buying property alone or with others, it’s crucial to understand the different forms of ownership available in New York.

 

1. Sole Ownership

If you purchase property in your name alone, you have sole ownership. This means you have complete control over the property and can sell, lease, or mortgage it without needing anyone else’s consent. However, when you pass away, the property must go through probate unless it’s held in a trust or has a designated beneficiary.

Who might choose sole ownership?

• Single individuals purchasing property
• Married individuals who want to keep property separate
• Business owners who own investment properties in their personal name

 

2. Tenancy in Common

When two or more people own property as tenants in common, each person owns a specific share of the property. These shares don’t have to be equal—one person could own 60% while the other owns 40%.

Key Features of Tenancy in Common:

    ✅ Each owner can sell or transfer their share independently.
    ✅ No right of survivorship—if one owner dies, their share passes to their heirs (not the other owners).
    ✅ Ideal for business partners, friends, or relatives who want to own property together but leave their share to their own heirs.

Example:  Siblings inherit a house from their parents and decide to hold it as tenants in common. If one sibling passes away, their share goes to their heirs, not the surviving siblings.

 

3. Joint Tenancy with Right of Survivorship

Joint tenancy is a popular option for co-owners who want equal ownership and automatic transfer of ownership upon death.

Key Features of Joint Tenancy:

    ✅ Each owner has equal ownership interest.
    ✅ Includes right of survivorship—when one owner dies, their share automatically transfers to the surviving owners.
    ✅ Avoids probate, making it a useful estate-planning tool.
    ✅ Owners must take title at the same time and through the same deed.

Who might choose joint tenancy?

• Married couples
• Family members who want to avoid probate
• Business partners who want survivorship rights

⚠️ Important Note: If one owner sells their share, the joint tenancy is broken, and the new owner becomes a tenant in common instead.

 

4. Tenancy by the Entirety (For Married Couples Only)

New York offers a special type of ownership called tenancy by the entirety, which is exclusive to married couples. It’s similar to joint tenancy but offers added protection.

Key Features of Tenancy by the Entirety:

    ✅ Only available to legally married couples.
    ✅ Includes right of survivorship—if one spouse dies, the surviving spouse automatically owns 100% of the property.
    ✅ Creditors cannot force the sale of the property to satisfy debts of just one spouse.
    ✅ Divorce automatically converts ownership into tenancy in common.

Who might choose tenancy by the entirety?

• Married couples looking for maximum protection from individual creditors.
• Spouses who want to ensure the property passes automatically without probate.

 

5. Holding Property in a Trust

Instead of owning property in your personal name, you can transfer it into a living trust for estate planning purposes.

Key Features of Trust Ownership:

    ✅ Helps avoid probate, ensuring a smooth transfer of assets upon death.
    ✅ Can provide asset protection and tax benefits.
    ✅ A revocable trust allows you to change or cancel it during your lifetime.
    ✅ An irrevocable trust provides stronger legal protection but limits your control.

Example: A homeowner places their house into a revocable trust, naming their children as beneficiaries. When they pass away, the property transfers automatically without probate.

 

Choosing the Right Ownership Type

The best way to own property depends on your unique situation. Here’s a quick comparison:

Ownership Type	Right of Survivorship?	Probate Required?	Best For
Sole Ownership	❌ No	✅ Yes	Single buyers, investors.
Tenancy in Common	❌ No	✅ Yes	Business partners, friends, co-owners who want separate interests.
Joint Tenancy	✅ Yes	❌ No	Couples, co-owners who want equal shares with survivorship.
Tenancy by Entirety	✅ Yes	❌ No	Married couples seeking asset protection.
Trust Ownership	✅ Yes (if structured correctly)	❌ No (avoids probate)	Estate planning, avoiding probate.

 

Final Thoughts

How you hold title in New York affects your property rights, estate planning, and liability. Whether you're a first-time homebuyer, an investor, or planning for the future, understanding your options can help protect your interests.

 

📌 Before making a decision, consult a real estate attorney or estate planning professional to ensure the best ownership structure for your situation.

Have questions about real estate ownership in New York? Drop them in the comments below! 🏡💬