It Pays to Review Your Property Deed

If you own real estate, you should take a good look at your deed.  The form of ownership stated in the deed has a direct impact on what you own, and how it will pass to your heirs.  You may be surprised at what you find. 

These are the typical forms of real estate ownership for individuals in Michigan, and what they mean to the owner:

1. Sole ownership by a single man or woman:  Simplest form of ownership; the owner may freely transfer the property to another person; upon death, probate administration is required to transfer the property to another owner.
2. Sole ownership by a married woman:  A married woman may freely own and transfer property to another person without her husband's consent; upon death, probate administration is required to convey the property another owner, including her husband.
3. Sole ownership by a married man:  A married man may also own property in his own name; however, his wife possesses a "dower" interest by law; dower grants an automatic partial life estate to a widow in all of the real estate owned by her husband during their marriage; therefore, a husband cannot transfer the property during his lifetime unless his wife waives her dower interest; if the property is owned solely by the husband upon his death, probate is required to convey property to another owner, including his wife.
4. Ownership by a married couple as "joint tenants":  Creates a tenancy by the entireties (see #6).
5. Ownership by a married couple as "joint tenants with rights of survivorship":  Creates a tenancy by the entireties (see #6). 
6. Ownership by a married couple as "tenants by the entireties":  Form of ownership exclusive to married couples; one spouse cannot transfer the property without the consent of the other spouse; includes strong statutory protection from the creditors of only one spouse (i.e. a non-debtor spouse is protected from the creditors of a debtor spouse); upon death of one spouse, the surviving spouse assumes sole ownership, and may transfer the property without probate administration.
7. Ownership by a married couple with no stated form of tenancy: Married couples are presumed to own property as tenants by the entireties if no other form of ownership is stated (see #6). 
8. Ownership by 2 or more persons as "tenants in common":  Each owner possesses a divisible interest in the property so each one can transfer his or her respective share without consent of the other owners; one owner cannot force the others to sell or transfer the whole property without a court order; upon death, probate is required to transfer each owner's share; the property is subject to the claims of each owner's creditors.
9. Ownership by 2 or more persons as "joint tenants":  Referred to as a "standard" joint tenancy; joint owners have all of the same rights as tenants in common, but they also possess a right of survivorship among them; therefore, the last surviving joint owner will acquire sole ownership of the property without probate; a joint owner may sell or transfer his or ownership to another person; in that event, the remaining joint owners become tenants in common with the new owner, with no survivorship right with respect to the new owner. 
10. Ownership by 2 or more persons as "joint tenants with rights of survivorship":  Referred to as an "indestructible" joint tenancy because the "right of survivorship" among the owners cannot be destroyed; owners possess the same rights as standard joint owners; however, each owner may only convey a life estate interest, and a transfer by one owner has no effect on the survivorship interest of the other owners; joint owners cannot force each other to sell or transfer the property, even by court order; probate is not required to transfer the interest of a deceased owner to the surviving owners.
11. Ownership by 2 or more persons with no stated form of tenancy:  Creates a tenancy in common among the owners (see #8). 

If your deed does not contain the form of ownership that you expect, then it can always be changed.  However, you must be cautious when changing ownership because it may cause negative consequences to your property insurance, taxes, mortgage, and estate plan.  When it comes to real estate ownership, it pays to be informed - and careful.