Straighten Out Title Problem Before Somebody Dies

By Bob Bruss

October 10, 2007

DEAR BOB: Some years ago, before our marriage, my wife entered into a verbal agreement with her stepfather. He purchased her home for about 60 percent of market value and agreed to pay the mortgage. He rents the house and keeps the rental income. My wife pays the property taxes and insurance. He tells her the house will become hers after the death of her parents, but he doesn't have a will. The house is titled in his name, his wife's name and my wife's name. If something happens to him, would his wife become a two-thirds owner of the house? We don't know exactly how the house is titled, but we are apprehensive. --Mark G.

DEAR MARK: If title to a property is held by the three co-owners as joint tenants with right of survivorship, then the last surviving joint tenant will eventually own the entire property.

However, if title is held by the three owners as tenants in common, then each co-owner owns a share of the property, which can be passed on by his or her will. If a co-owner dies without a will, then the local probate court will distribute the deceased co-owner's share according to the state law of intestate succession.

You should get a copy of the recorded deed to the house so your wife can be certain how the title is held. This would be a good time for the three co-owners to get together to discuss the consequences of the way title is held. For full details, please consult a local real estate attorney.

The new Robert Bruss special report, "17 No-Down-Payment Formulas for a Buyer's Market," is now available for $5 from Robert Bruss, 251 Park Road, Burlingame, Calif., 94010, or by credit card at 1-800-736-1736 or instant Internet delivery at www.BobBruss.com. Questions for this column are welcome at either address.

(For more information on Bob Bruss publications, visit his Real Estate Center).

Editor's note: Robert Bruss passed away on Sept. 26, 2007. This was one of the last real estate columns he wrote. Inman News is publishing Bob's last work as a final salute to the nation's most well-known real estate writer

STRAIGHTEN OUT TITLE PROBLEM BEFORE SOMEBODY DIES