Best Divorce Lawyers in Longmont, CO

Do you know the difference between owning property as “joint tenants” or “tenants in common”? nnDo you know the legal effect of having more than one person named on the deed to property, when neither “joint tenants” nor “tenants in common” follows the names? nnDo you know how to properly describe real estate using the true “legal description”? nn“Do It Yourself” deed forms are widely available online, and unfortunately, they are often a trap for the DIYer who does not understand the legal implications of how the form is filled out. Banks, mortgage companies, and even some real estate brokers and title companies do not understand these issues, and they end up causing their customers legal headaches, nightmares, and unnecessary expense in a misguided attempt to help their customers by practicing law without a license. nnSome things to know: nn1. If owners are joint tenants, when one dies, the other automatically owns the entire property, regardless of what any other estate document (like a will) might say. One exception to this rule is when the joint tenants are spouses and they later divorce – the divorce automatically changes their ownership to tenants in common. n2. If the owners are listed as tenants in common, each owns an undivided half interest unless another percentage is indicated. When one owner dies, transfer of the property must go through the probate process including about a $2,000 expense to get it into the name of the other owner (or in some cases, to another heir). n3. If there is no language indicating whether two or more people own property as joint tenants or tenants in common, Colorado law says the people own it as tenants in common, and transfer of a deceased owner’s interest will require going through the probate process ($2,000 expense). n4. The “legal description” found on a county assessor’s website is an abbreviation in many instances, not the full legal description necessary to convey the property. Some assessor’s websites now include a disclaimer noting that the listed “legal description” should not be used on deeds. n5. A quitclaim deed should describe the transferor exactly as his or her name appears on the deed whereby they acquired the property. When you leave out middle names or initials, it causes confusion that a title company may require you to correct in the future. n6. Using a quitclaim deed to add children’s names to a property title is often a bad idea! It should only be done after consultation with an experienced attorney who can address all of the issues involved, including loss of property tax benefits, loss of capital gain tax benefits, Medicaid planning issues, inheritance issues, and gift tax return requirements. nnDrafting your own deed, or letting a bank, lender, or title company do the same without having it reviewed by an attorney, is like trying to fix your car when you are not a mechanic. You may get it right, or you may create more problems down the road.