Buyer Vesting when purchasing properties
Why is Vesting Important
How you hold title to your property affects their taxes, your estate plan, and what happens if you sell, divorce, or pass away. We strongly recommend buyers toconsult an attorney or CPA before making the selection.
INDIVIDUAL VESTING OPTIONS
A Single Man / A Single Woman You are not currently married and have never been married (or your previous marriage has been fully dissolved). You will hold title in your name alone.
An Unmarried Man / An Unmarried Woman (Divorced) You were previously married and are now legally divorced. Title is held in your name alone. Note: if your divorce is not yet finalized, you may not vest this way.
A Married Man/Woman as Sole and Separate Property You are married, but you want to hold title in your name only, separate from your spouse. This requires your spouse to sign and notarize an Interspousal Transfer Deed (quitclaim), transferring any community property interest to you so that you hold sole title to the property. This has significant legal and tax implications — please consult an attorney. Once you have confirmed that the spouse needs to transfer right to you, please contact your Escrow Officer immediately. Additional documents and coordination will be decided.
A Widower / A Widow Your spouse has passed away. Title is held in your name alone.
CO-OWNERSHIP OPTIONS (Two or More Buyers)
4 ENTITY VESTING
If you are taking title in a Trust, Corporation, LLC, Partnership, or Land Trust, please contact your Escrow Officer immediately. We will need additional documentation, including organizational documents, certificates of authority, and/or trust certifications. Requirements vary by entity type, and missing documents can delay your closing.
5. When is this needed?
Please let us know your vesting as soon as possible. If you are obtaining a loan, your lender will need your vesting information to prepare your loan documents — and loan documents cannot be drawn without it. If you are purchasing without a loan, the seller still needs your vesting information to prepare the Grant Deed — the document that officially transfers the property title to you.
IMPORTANT DISCLAIMER
This guide is for general informational purposes only. Starlight Escrow is not authorized to recommend how you should take title. Your decision should be based on your specific financial, legal, and family circumstances. Please consult a qualified attorney or CPA before making your selection.
