The deed is important
When filling out your buyer information sheet, there are a couple of questions about the deed that you will be receiving at closing. Here we will provide you with some basic info that we would be happy to discuss with you further should you have any questions. The deed is the single most powerful document that the seller signs at closing, and will be recorded at the registry of deeds to formally establish your claim of ownership to your new property.
Holding Title
In New Hampshire there are three basic ways for individuals to hold title:
1. Individually - as one person on title alone.
2. As Joint Tenants with Rights of Survivorship -Multiple owners jointly own 100% of the property, this is not severable, therefore one person cannot compel the other to sell without their permission. In exchange for this; there is no probate upon the passing of an owner, it moves directly to the other owners instantly. Though this manner of holding title is commonly used for married couples, you can be a joint tenant with anyone and with different parties on multiple properties.
3. As Tenants in Common - Multiple owners own pre-prescribed interests in the property (eg. 50/50 or 25/25/25/25). Here an owner has control over their portion and can sell that portion independent of the other owner(s). If an owner passes, their portion must be probated in order for it to pass through to the rightful heirs. This manner of holding title is most common for investors who are holding title together in a property.
You may also be purchasing property as an entity, such as a Trust or an LLC. We encourage you to seek independent tax or legal advice as these tools can be used to an array of customizable circumstances. We will be happy to review any entity to see that is meets the financing needs of your lender as part of the process.
