ARIZONA IS A COMMUNITY PROPERTY STATE. THERE IS A STATUTORY PRESUMPTION THAT ALL PROPERTY ACQUIRED BY HUSBAND AND WIFE IS COMMUNITY PROPERTY.

There are several ways in which persons can take title to their property in Arizona, those of which are explained below. Arizona is a "Community Property" state and you may wish to consult an attorney, accountant or other professional before deciding on how you want to take title. You should inform your escrow officer and lender as soon as possible of how you wish to take title to your home and exactly how your name(s) will appear on all documents. This allows them to prepare all documents correctly. (Changes later, such as adding or deleting an initial in your name, can delay your closing).

Community Property

• Requires a valid marriage between two persons.
• 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 decendent must be cleared through probate, affidavit or adjudication.
• Both halves of the community property are entitled to a stepped up tax basis as of the date of death.

Community Property with the Right of Survivorship

• Requires a valid marriage between two persons.
• 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.
• Both halves of the community property are entitled to a stepped up tax basis as of the date of death.

Joint Tenancy with the Right of Survivorship

• Partiens need not be married; may be more than two joint tenants.
• Each joint tenant holds an equal and individed interest in the estate, unity of interest.
• One joint tenant can partition the property by selling his or her joint interest.
• Requires signatures of all joint tenants to convey or encumber the whole.
• Esate passes to surviving joint tenants outside of probate.
• No court action required to clear title upon death of joint tenant(s).
• Deceased tenant(s) share is entitled to a stepped up tax basis as of the date of death.

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., 20% and 80%; 60% and 40%; 20%, 20%, 20% and 40%; etc.
• Each tenant 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 decendent mus be cleared through probate, affidavit or adjuducation.
• Each share has its own tax basis.

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.

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 Secreatary 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.