Arizona Real Estate Title Information

Arizona is a community property state. Property acquired by a husband and wife is presumed to be community property unless legally specified otherwise. Title may be held as `Sole and Separate'. If a married person acquires title as sole and separate, his or her spouse must execute a disclaimer deed to avoid the presumption of community property. Parties may choose to hold title in the name of an entity, e.g., a corporation; a limited liability company; a partnership (general or limited), or a trust.

For a more comprehensive understanding of the legal and tax consequences, appropriate consultation is recommended.

Community Property with the Right of Survivorship

• Requires a valid marriage between two people.
• Each spouse holds an undivided one-half interest in the estate.
• One spouse cannot partition the property by selling his or her interest.
• Requires signatures of both spouses to convey or encumber.
• Estate passes to the surviving spouse outside of probate.
• No court action required to `clear' title upon the first death.

Community Property

• Requires a valid marriage between two people.
• Each spouse holds an undivided one-half interest in the estate.
• One spouse cannot partition the property by selling his or her interest.
• Requires signatures of both spouses to convey or encumber.
• Each spouse can devise (will) one-half of the community property.
• Upon death, the estate of the decedent must be `cleared' through probate, affidavit or adjudication.
• Parties need not be married; may be more than two joint tenants.

Joint Tenancy with the Right of Survivorship

• Each joint tenant holds an equal and undivided interest in the estate, unity of interest.
• One joint tenant can partition the property by selling his or her interest.
• Requires signatures of all joint tenants to convey or encumber the whole.
• Estate passes to surviving joint tenant outside of probate.
• No court action required to `clear' title upon death of joint tenant(s).

Tenancy in Common

• Parties need not be married; may be more than two tenants in common.
• Each tenant in common holds an undivided fractional interest in the estate. Can be disproportionate, e.g., 60% and 40%.
• Each tenant's share can be conveyed, mortgaged or devised to a third party.
• Requires signatures of all tenants to convey or encumber the whole.
• Upon death, the tenant's proportionate share passes to his or her heirs by will or intestacy.
• Upon death the estate of the decedent must be `cleared' through probate, affidavit or adjudication.