Ask Sacramento Real Estate Gal Answers!

Happy Friday! Today we have a very interesting question by a potential homeowner - let's get right to it!

Question:
Dear Sacramento Real Estate Gal,
I will be buying a home soon with my wife and was wondering how we should hold title. I have no idea - I'm assuming everything is held jointly since we're a community property state here in California, right? - A.F.

Answer:
Dear A.F.,
Right. Since California is a community property state, everything is held jointly between husband and wife.
However, there are a few different options for you two to hold title to your home. You can hold it as "tenancy in common," "joint tenancy," or "community property."
In my opinion, the best way for a husband and wife to hold property is "community property with right of survivorship." This allows equal ownership to both, allows you to avoid probate and gives you a "stepped-up" tax basis when you sell the home.
You should ask your escrow officer to explain the differences to you before you sign.
For more details on community property with right of survivorship, go here.