Larkspur, California, Real Property Attorney
Real property refers to land and any permanent fixtures on the land. Legal issues involved include types of ownership interests, usage rights and boundary disputes, title issues, and acquisition and disposition matters. At Laing Law Offices in Larkspur, California, we offer more than 30 years of experience addressing this often complex legal area for our clients.
We handle multifaceted real property matters, with a broad perspective on how to effectively address ancillary issues and avoid future disputes. Contact us to learn more.
Real Property Titles
Real Property is what is known as a "titled asset." Its title describes the manner in which it is owned, including whether it is owned by one person, two or more people, whether the owners are married or not, and whether the owner is an entity, such as a partnership or corporation. Other items describing how they are owned include bank accounts and automobiles.
- Examples of Common Individual Titles: "Joe Jones, an unmarried man, as his separate property"; "Joe Jones and June Jones, husband and wife, as Joint Tenants"; "Joe Jones and June Jones, husband and wife as their community property"; "June Jones, a married woman, as her sole and separate property"; "Sam Smith, an unmarried man, as his sole and separate property as to an undivided 60% interest, and Tom Jones, an unmarried man, as his sole and separate property as to an undivided 40% interest, each as Tenants-in-Common with the other". Each of these titles has a different meaning.
- Examples of Common Entity Titles: "Joe Jones and June Jones, Trustees (and Successor Trustees) of the Jones 2008 Trust dated 6/1/2008"; "Jones and Jones California Limited Partnership"; and "Jones LLC, a Nevada Limited Liability Company". Each of these titles has a different meaning and indicates a different type of ownership of real property.
Characterization of Real Property
California family law, California property law, California corporation and partnership law and the IRS all affect, interpret and employ these titles differently for their own purposes. These differences must be taken into account from the time title is acquired through the time titled real property is sold or otherwise transferred. Some examples of the interrelated effects of these various bodies of law on titled real properties are:
- California Real Property Law - For an unmarried couple, under California property law, a court in a non-family law case might well find that the presumption of title - i.e., "Joe Jones, an unmarried man, as his separate property" - defeats any claimed oral agreement that a titled real property belongs equally to Joe Jones and his friend, who paid for part of the property.
- Family Law - In California, the presumption is that all property acquired during marriage with earnings is community property regardless of how titled. In other words, in a divorce, a family law court could characterize a property that is titled as separate property as wholly or partially community property for property or asset division purposes. Gifts and re-titling of property are also subject to specific family law rules that trump other bodies of law.
- Corporation Law - Real property titled in a partnership or corporation belongs to the partnership or corporation. If Joe Jones owns 20% of the partnership or corporation, he does not own any real property. Instead, he owns a personal property interest in 20% of the assets and liabilities of the partnership or corporation. Because of restrictive provisions in the partnership agreement or corporation by-laws, it may be nearly impossible for Joe to sell his interest in the property.
- Estate Planning and IRS - One of the most important aspects of owning titled property is calculating its basis and profit or loss at the time it is sold. When one spouse dies owning part of an asset that is titled as community property, the entire basis of that asset is "stepped up" to its value as of the date of death of the deceased spouse, or as of a date six months after the date of death of the deceased spouse. The downside to this is that the entire present value of the stepped up asset is counted by the IRS to determine if the deceased spouse owes estate taxes. The upside is that the surviving spouse can take advantage of the stepped up basis of the property to sell it virtually tax-free. This is a very important concept in estate planning.
Ownership of real property is complex in this day and age because so many different laws affect ownership. Many owners should have their ownership of their titled assets reviewed to insure that they are holding title in the manner best suited to their present and anticipated circumstances. Disputes concerning sensitive properties can be resolved in confidence in mediation, under the well-developed California Mediation Privilege that is embodied in the California Evidence Code. R. Bruce Laing is experienced in these issues.
Contact our office for an appointment to discuss your matter.
LAING LAW OFFICES
100 Larkspur Landing Circle, Suite 110
Larkspur, Ca 94939
T: (415) 461-3133
F: (415) 461-4022
At Laing Law Offices, we serve clients in Larkspur, Corte Madera, San Rafael, Mill Valley, Sausalito, San Francisco, Santa Rosa, Petaluma, Novato, and communities throughout the Bay Area, including those located in Marin County, San Francisco County, Sonoma County, Alameda County, and Contra Costa County, California.
