How should I take title to the property?
If you are purchasing the property alone, title is typically taken in the name of only one individual grantee (you), and is freely transferable. If more than one individual is purchasing the property, there are several ways title can be held.
Tenants in Common. Ownerships held as tenants in common are freely transferable by each owner (“tenant”). There is no right of survivorship in the surviving tenants upon one tenant’s death. Equal percentage ownership is presumed unless the deed specifically states otherwise (for example, unless the deed states otherwise, if there are three grantees, each grantee will own a one-third interest).
Joint Tenancy. Title can be taken in multiple names under this approach. A joint tenant owns an undivided equal share of the property, with right of survivorship. Upon the death of a joint tenant, that person’s interest passes equally to the survivors. Unlike tenancy in common, a joint tenant cannot will his interest to another party. If a joint tenant sells his interest, the joint tenancy is broken and the property is automatically owned as tenants in common.
Tenancy by the Entireties. Title can be taken as tenants by the entireties only by a validly married husband and wife in a property used as their primary residence. Like joint tenancy, there is a right of survivorship with a tenancy by the entireties: upon death of one spouse, the property automatically becomes the sole property of the survivor. Unlike joint tenancy, however, under Illinois law a judgment creditor cannot force the sale of the home to satisfy a judgment against only one spouse. For a married couple considering taking title in joint tenancy, tenancy by the entireties is typically the way to go.
Title can also be taken In Trust. Under this approach, legal title is transferred to a trustee who holds it under the direction and for the benefit of the purchaser. An attorney should be consulted to see whether this form of ownership is appropriate for your circumstances.
