Arnold
CibbuanoSingle Name Title
June 27th 2006 00:50
Owning a property under a single name can often be used as a way for a couple or partnership to lower taxable assets whilst sharing in the profits. Individual property holders have the best course plotted for long term negative gearing. Often couples with multiple properties will look towards a combination of single and dual property ownership to best manage their assets.
A single name on the title deed means that sole ownership is legally recognized to be held by that single person. This owner has sole legal responsibility for the property. This means that should a legal issue arise, this sole owner will be exposed to litigation. Litigation can arise in a number of circumstances. A tenant may sue you for not complying with building codes, standards or tenancy acts. If someone injures themselves on your property they can potentially sue. Whether guilty or innocent legal proceedings are expensive, stressful and time consuming. One way of personally protecting yourself from litigation is to purchase the property under a company. The company is regarded as a separate entity which means that personal possessions will be somewhat protected from any legal scenarios.
Within a family or long term partnership, when it comes to deciding whether to purchase an investment under joint names or single names, it is very important to weigh up the risks against the financial gains. Taking the scenario of a long term partnership, purchasing a property under one name legally absolves the other entity from any right or claim to the property. In short, full control is given to the partner whose name is on the title. This may be a brilliant situation for couples or families wanting to protect their assets from the taxman or personal litigation and may produce handsome financial rewards. However, it is important to realize that should their every be a split in the partnership, claiming an equal share to the asset becomes an uphill struggle. No matter who actually financed the purchase of the property, buying a property in only your partners name can be financial risk. Technically, your rights to the property are nullified if you do not have your name on the Title. On the other side of the equation, if the property is owned in only your name, in the event of a split it is most likely that you will be able to hang onto the property provided that there are enough assets to divide between the two of you.
A single name on the title deed means that sole ownership is legally recognized to be held by that single person. This owner has sole legal responsibility for the property. This means that should a legal issue arise, this sole owner will be exposed to litigation. Litigation can arise in a number of circumstances. A tenant may sue you for not complying with building codes, standards or tenancy acts. If someone injures themselves on your property they can potentially sue. Whether guilty or innocent legal proceedings are expensive, stressful and time consuming. One way of personally protecting yourself from litigation is to purchase the property under a company. The company is regarded as a separate entity which means that personal possessions will be somewhat protected from any legal scenarios.
Within a family or long term partnership, when it comes to deciding whether to purchase an investment under joint names or single names, it is very important to weigh up the risks against the financial gains. Taking the scenario of a long term partnership, purchasing a property under one name legally absolves the other entity from any right or claim to the property. In short, full control is given to the partner whose name is on the title. This may be a brilliant situation for couples or families wanting to protect their assets from the taxman or personal litigation and may produce handsome financial rewards. However, it is important to realize that should their every be a split in the partnership, claiming an equal share to the asset becomes an uphill struggle. No matter who actually financed the purchase of the property, buying a property in only your partners name can be financial risk. Technically, your rights to the property are nullified if you do not have your name on the Title. On the other side of the equation, if the property is owned in only your name, in the event of a split it is most likely that you will be able to hang onto the property provided that there are enough assets to divide between the two of you.
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