Arizona is a community property state. There is statutory presumption that all property acquired by husband and wife is
community property.

 

COMMUNITY PROPERTY: Community property is a method of co-ownership for married persons only. Upon death of one of
the spouses, the deceased spouse’s interest will pass by either a will or interstate succession.
COMMUNITY PROPERTY WITH RIGHT OF SURVIVORSHIP: A community property with right of survivorship estate can be held
by a husband and wife when created by express language in the vesting document. Upon death of a spouse, the estate is vested
in the surviving spouse and an Affidavit Terminating Right of Survivorship, together with a certified copy of the death certificate
is recorded.
JOINT TENANCY WITH RIGHT OF SURVIVORSHIP: Joint tenancy is a method of co-ownership that gives title to the real
property to the last survivor. Title to real property can be acquired by two or more individuals. If a married couple acquires
title as joint tenants with right of survivorship, they must specifically accept the joint tenancy to avoid the presumption of
community property.
TENANCY IN COMMON: A method of co-ownership when parties do not have survivorship rights and each owns a specific
undivided interest in the entire title. Each co-owner has a separate title to his/her interest, and can transfer his/her interest
without the other co-owners.
SOLE AND SEPARATE: Real Property owned by a spouse before marriage or any acquired after marriage by gift, devise,
descent, or specific intent. If a married person acquires title as sole and separate property, his or her spouse must execute a
disclaimer deed.
TRUST: There are many different types of trusts that can be created through which one or more Individuals or investors may take
title, provided that the trust is validly formed under a trust agreement as provided under law in the state in which the trust was
formed. A trust in itself, however, cannot hold title. A trustee must be named, who would hold title and authority for the trust, as
set forth in a trust agreement.
CORPORATION: Title may be taken in the name of a corporation provided that the corporation is duly formed and in good
standing in the state of its incorporation.
GENERAL PARTNERSHIP: Title may be taken in the name of a general partnership duly formed under the laws of the state of
the formation of the partnership. A partnership is defined as a voluntary association of two or more persons as co-owners in a
business for profit..
LIMITED PARTNERSHIP: A partnership formed by two or more persons under laws of Arizona or another state and having one
or more limited partners. A certificate of limited partnership must be filed in the office of the Secretary of State.
LIMITED LIABILITY COMPANY: A limited liability company formed by two or more persons under
the law of Arizona or another state. A limited liability company operates similar to a partnership with protection which is
similar to a corporation. An Arizona limited liability company must be filed with the State of Arizona.
EVIDENCE OF FORMATION & AUTHORITY: When title is taken in the name of a legally formed entity, there will be additional
title requirements for the appropriate organizational documents for the entity, as well as evidence that the entity has been
properly formed and filed in its state of origin. Those documents must also indicate who has been granted authority to sign on
behalf of and bind the entity.
Taking title to real property can have legal and tax obligations and consequences, especially in the event of the death of
an individual owner. If you are unsure as to the best way for you to take title to real property, you should consult with a
qualified attorney or Certified Public Accountant prior to taking title.