Title companies, Real Estate Agents and Brokers do not advise on tenancies available because it is considered to be providing a legal interpretation which we are not licensed to do.
Who Can Advise You on Title & Tenancy?
While your real estate agent plays a crucial role in helping you find and secure your home, they are not qualified to provide legal or financial advice on how you should hold title. The decision on ownership structure should be made in consultation with professionals such as:
- An Attorney – for legal implications, estate planning, and probate concerns.
- A Tax Professional – for understanding any potential tax consequences.
Common Ways to Hold Title in Hawaii
Here are some of the common methods of holding title:
- Sole Ownership – If you are the only person purchasing the property, you can hold title in your name as an individual.
- Tenants in Common – Two or more individuals hold undivided interests in the property. Each owner can sell, mortgage, or will their share separately.
- Joint Tenancy with Right of Survivorship – Two or more owners hold equal shares, and upon the death of one owner, their share automatically passes to the surviving owners.
- Tenancy by the Entirety – A special type of joint tenancy available only to married couples, providing survivorship rights and some protection from creditors.
- Holding Title in a Trust – Some buyers choose to take title in the name of a revocable living trust or other estate-planning structures for probate avoidance and estate planning purposes.
Why Your Choice of Tenancy Matters
The way you hold title affects what happens in the event of death, incapacity, or the sale of the property. It can impact:
✅ Who inherits the property without probate
✅ Legal exposure to creditors
✅ Taxation and capital gains implications
Final Steps
Before closing, take the time to consult with the appropriate professionals. Your escrow officer can provide general information about the different tenancy options but cannot give legal or tax advice. If you have any questions about your situation, we strongly recommend speaking with an attorney or financial advisor to determine the best way for you to hold title.
We’re here to facilitate a smooth closing process and ensure your transaction is handled with care. If you need assistance finding a professional for further guidance, we are happy to provide referrals to trusted experts.
Let us know how you’d like to proceed once you’ve made an informed decision!