Taking Title
TENANCY IN COMMON
A tenancy in common is a form of ownership of property for two or more persons. Each co-tenant is entitled to possession of the whole property, not any particular part. All co-tenants must join in any transfer of the title of the whole property. A co-tenant's interest may be transferred without the consent of the other co-tenants, but that tenancy interest may be subdivided freely. Upon death of a co-tenant, the deceased co-tenant's share of the property will pass through a will or through intestate succession (if no will exists) to the co-tenant's heirs. Creditors of individual co-tenants may attach a lien to that co-tenant's interest.
JOINT TENANCY
Two or more persons may own property as joint tenants with right of survivorship. All joint tenants share equal ownership rights. Upon death of a joint tenant, the other joint tenant(s) will acquire the interest of the deceased joint tenant immediately and automatically. The surviving tenant becomes the full owner of the property. The creditor may attach a lien to an individual joint tenant's interest, but this does not automatically sever the joint tenancy.
TENANCY BY THE ENTIRETY
Husband and wife may choose to hold the primary marital residence as tenants by the entirety. As in joint tenancy, the surviving spouse will take the property in its entirety, upon death of the other spouse. An advantage of this form of ownership is that creditors of an individual spouse cannot seize the property to satisfy the debt. Upon divorce, the husband and wife become tenants in common. If one spouse vacates their marital residence, they may terminate a tenancy by the entirety, creating tenancy in common.
ILLINOIS LAND TRUST OR TRUST
Illinois law permits creation of a land trust to hold title, a device normally used to avoid disclosure of the identity of the actual owner. Or, for estate purposes, parties may create a trust agreement, specifies what happens to the property after the death of one or more parties.
As with most aspects of a real estate transaction, choosing a form of ownership may have serious legal ramifications. This document only contains a simplistic overview of the main forms of ownership. An attorney should be consulted before making any decisions regarding ownership of real estate.