Ownership Options: Choosing the Right Title Structure

There are three basic ways to hold title:

1. Sole ownership – one person or entity owns the property and has sole rights to access,

use and enjoyment of the property. That person or entity will be able to make all

decisions as to any future dispositions.

2. Co-Ownership – when one or more persons or entities hold title to the property. This

can be held in one of two ways:

 Tenancy in Common, or Co-tenancy is where the property is held by each

person or entity in a set division or if no specific division, then assumed division

would be 50/50. If one of the owners passes away then their ownership would

be held by their estate and dispersed according to their wishes or as determined

by their estate’s representative.

 Joint Tenancy or Joint Tenancy with rights of survivorship (JTWROS) is where all

owners hold title together and would all have to be in agreement as to the

disposition of the property. In Joint Tenancy with Right of Survivorship, if one

owner passes away, their share automatically transfers to the remaining co-

owners — bypassing probate.

Community Property – since NM is a community property state, by law through

marriage, both spouses hold title equally, no matter who did the work or purchased the

property. However, there are exceptions, such as if the property was a gift, or

inheritance. Or if spouses agree that the property belongs to one or the other through a

Sole and Separate Property Agreement. In that case, if one spouse holds property as

‘Sole and Separate’ under an agreement, then upon their passing, that property typically

becomes part of their estate and is distributed through probate.

Family members, friends, business partners, or investors can jointly own property in

either way. However, careful consideration should be taken to decide how owners wish to use

the property and of any future plans for the property when deciding on how to hold ownership

of title. Of course, we always recommend consulting with an Attorney to make sure they are

getting the best guidance.

Not sure which option is right for you? Call us at 505-225-2077 — we’ll guide you

through it or help connect you to the right legal professional.