Determining how to take title is a legal decision that may impact you and/or your heirs. It is recommended that you consult with an attorney to determine which option is best for your circumstances. Select Title Company, its affiliates, agents and employees will make no representations or provide direction as to how you should hold title. This information is provided as a courtesy. Buyer(s) agree to release Select Title Company and its affiliates, agents and employees from and against any liability relative thereto.
Your Options
The Ways You Can Hold Title
These are the standard ways two or more people hold title to Michigan real estate. Each carries different consequences for what happens when an owner passes away or wants to sell.
Tenants in Common
No rights of survivorship
When two or more people have equal rights of possession, they take title as “Tenants in Common”. There are no rights of survivorship. The interest of a deceased owner passes to that owner’s heirs and NOT to any remaining co-owners. Probate proceedings would be required for the deceased owner’s interest to be transferred.
If a deed recites two or more grantees without reference to how title is vested, the law presumes that the grantees are vested as tenants in common. (MCLA 554.44)
Note: Probate required to transfer a deceased owner’s interest
Joint Tenants with Full Rights of Survivorship
Full rights of survivorship
When two or more people, who are not married to each other, take title equally as “Joint Tenants with Full Rights of Survivorship”, this creates a joint life estate between all owners. No one joint tenant can divest their interest without the signature of the other joint tenant(s).
Upon the death of a joint tenant, their interest passes to the surviving joint tenant(s) rather than to the heirs of the deceased. A certified copy of the decedent’s death certificate would need to be recorded at the Register of Deeds.
Note: Cannot convey without all joint tenants signing
Joint Tenants
Rights of survivorship
The two main characteristics of joint tenancy are the right of survivorship and the right of partition. Upon the death of a joint tenant, the interest passes to the surviving joint tenant(s) and not the decedent’s heirs.
However, a joint tenant may convey their interest without the consent of the other joint tenants, thus severing joint tenancy between the new owner and the remaining joint tenants. Joint tenancy is not preferred in Michigan.
Note: Survivorship can be severed by one tenant conveying alone
Other
Varies by arrangement
If an alternate form of tenancy is preferred, please contact an attorney to determine how you would like to hold title. We can prepare the deed to reflect whichever form your attorney recommends.
Note: Contact an attorney to determine the form of tenancy
Not Sure Which Form Fits Your Situation?
How title is held is a legal decision — talk it through with your attorney, then tell us the form you choose. We’ll make sure the deed is prepared correctly and the transfer closes cleanly. Call one of our Michigan offices or open title online.
