Drop Off the Second deposit/ Choose Title
If your contract has a second deposit due, now is the time to submit it! Once we’ve come to an agreement on the inspection items, dropping off the 2nd earnest money check is your next task. I will let you know how much this is or you can refer back to the Next Steps email. In the FOR line of your check put, “2nd Dep for (insert property address)”. Put the check in an envelope but don’t seal it. On the outside of the envelope write “2nd Dep for (insert property address) ” and your name. Generally, the check is dropped off at the office of the seller’s Realtor. Try to go during normal business hours to drop it off as you’ll need to get a receipt. When you get there, ask the receptionist to give you an earnest money receipt which you then need to email me. Once you’ve been given a receipt, go ahead and seal the envelope with the check in it and give it to the receptionist. In addition, please text me after you’ve dropped off the check so we can let the seller’s Realtor know it’s been dropped off.
If you go after normal business hours or if the office is very small, there may not be a receptionist. Instead the door may be locked. If this is the case, look near the front door for a drop box where earnest money checks can be safely left.
As a reminder, your earnest money check amount will be deducted from your final down payment and needs to be dropped off within a certain time per your contract or you could be at risk to lose your first deposit and default on the contract.
Choose Title
When you're stepping into the exciting journey of homeownership by yourself, the way your deed is vested—essentially, how the ownership is listed—becomes a simple affair. However, the scenario shifts significantly when you're joining forces with someone else—be it your spouse, partner, or family members—to purchase a property. This pivotal moment involves a critical decision on how you'll hold title to your dream home.
Understanding the nuances between different types of tenancy is more than just a formality; it's a cornerstone of how ownership is legally framed and, importantly, how the property will transition upon the passing of an owner. It's a common misconception that a last will and testament can dictate the distribution of your real estate assets regardless of how the deed is vested. However, the reality is that the vesting terms on your deed hold the ultimate sway in these matters.
Navigating these decisions can be complex, but they're crucial in ensuring that your new property aligns with your long-term intentions and legal protections.
In Pennsylvania, these are the options you have for taking title:
Tenants in Common
Two or more persons in whom title to a single piece of real estate is vested in such a manner that they have a common or equal right to possession and enjoyment of the property, but each holds a separate individual interest or estate in the property. Each owner may sell or encumber their respective interest or dispose of it by will, and if they die without leaving a will, their heirs inherit their undivided interest.
For example, if a couple buys real estate and the deed is vested as "Tenants in Common" should one of them pass away, their interest in the property goes to the their heirs, not the surviving partner.
This can be a wonderful option for blended families.
Join Tenants with Right of Survivorship
Two or more persons who hold title to real estate jointly, with equal rights to share in its enjoyment during their respective lives with the provision that upon the death of a joint tenant their share in the property passes to the surviving tenants, and so on, until the full title is vested in the last survivor. A joint tenant cannot legally encumber their interest without the consent or joinder of all of the joint tenants.
For example, if three people purchase real estate and the deed is vested as "Joint Tenants" should one of the owners pass away, their ownership interest is distributed among the remaining title holders, not their heirs.
This is a great option when multiple family members purchase a property together- especially multiple generations.
Tenants by the Entirety
A modification of joint tenancy between married couples only, which has the quality of survivorship but neither spouse can convey their interest to break the joint tenancy. Upon the death of either spouse, full title passes to the survivor. Absent mutual consent, neither spouse can alienate the right of survivorship by any act as long as the marriage lasts. Tenancy by entirety protects both spouses through the law. Tenancy by entirety laws are built on the premise that one spouse cannot be held accountable for the debts of the other.
For legally married couples, “Tenants by the Entireties” offers the most comprehensive protection under the law.
Very common for married couples to take title this way.
