Per Wikipedia, a FICO score is a is a number representing the creditworthiness of a person or the likelihood that person will pay his or her debts.   FICO score has shown to be very predictive of risk, made credit more widely available to consumers and lowered the cost of providing credit.

Lenders use FICO scores to determine your creditworthiness and the interest rate on your mortgage will directly relate to the health of your FICO score.

There are 5 main categories that go into your overall credit score calculation.

It’s important to understand each one and how much each counts towards your overall FICO score.

1. Payment History is by far the most important category- it is pretty much self explanatory.  It doesn’t  take a rocket scientist to figure out that if you pay your bills on time, you’ll do well in this category.  Likewise, if you have a history of late payments, collections, charge-offs, public records, etc. you will not fair well here.  The number of negative items on your credit report is important.  The more incidents of credit transgressions, the more your scor will suffer.  The most recent negative information carries more weight than the negative items which are several years old.
2. Debt is a Very Close Second – The most important non-payment category in your credit score is, by far, the amount of debt that you carry.  And while your installment debt like auto loans and mortgages are factored into your score, it’s really your credit card debt that is most important.
   • Visa, MasterCard, Discover, American Express, gas cards and/or retail cards like Macy’s or Target fall into the credit card category.  The balances that you carry on these credit cards can affect your FICO scores almost as much as whether or not you make your payments on time.
   • This category calculates the proportion of balances to credit limits on your revolving credit cards accoutns.  This is referred to as “revolving utilization”.  Simpply put, the higher your revolving utilization percentage, the fewer points you will earn in the category.
   • How is revolving utilization calcuated?  To determine your revolving utilization, you’ll need to add up all o fyour current balances and all of your urrent credit limits on your open revolving credit accounts (except for your HELOC – Home Equity Lines of Credit.)  this will give you a total balance and a total credt limit.  divide the total balances to the total credit limit and then multiply that number by 100.  this will give you your total revolving utilization percentage.
     • For Example:  Total Balances $12,000 ÷ Total Limits $25,000 = Total Revolving $.048 x 100 = Utilization % of 48%
   • The lower your utilization  percentage, the more points you’ll earn and he higher your FICO or credit score will be! 
   • To earn the most possible points in this category, you shoul try to keepyour revolving utilization at 10% or less.  If you can’t reach 10%, just remember that the lower the better.  While 50% is better than 60%, 40% is better than 50% and so on.
   • That is why financial experts do not recommend that you close down these revolving accounts once the balances are paid off.  Leave them open and do not charge anything to them.  This will decrease your utilization score.
   • How you pay your bills and your revolving utilization score accounts for 2/3 of the points in your credit score!
3. The Age of your Credit History is considered a Secondary Category – Don’t confuse this with your age.  It’s the age of your credit reports.  Basically, the score is looking to see if you have a lengthy history of managing your credit obligations.  The age of your credit history is determined by the “date opened” on the oldest account listed on your credit report.  The older your credit report, the more points you will earn in this category.  There’s really not much you can do here except to wait it out.  As your reports get older, you will gradually earn more points.  This means that you should never try and get old, good accounts removed from your credit reports.  You want history!
4. New Credit Inquiries is also a  Secondary Category – when you apply for credit you are giving the lender permission to pull your credit reports and credit scores.  Each time this happens, your credit report will reflect what is called an “inquiry”.  To perform well in this category, you should really apply for credit when you need it.
   • When you are shopping for a mortgage loan for your new home, try to apply with several lenders in a period of a week or so.  Credit agencies recognize that you are shopping around for a best loan and will not “ding” you for these inquiries.  The longer you wait in between inquiries, the higher the chance that the credit score will be affected
5. Credit Mix is our final Secondary Category – in essence this means that you will do wll in this category if you have a nice diverse list of different types of accounts in your credit report.  This inludes morgages, auto loans, installment loans, credit cards, etc.  If your credit report is dominated y one type of account (or lack of others), this could negatively affect the number of point that you earn from this category.

To recap, the 5 easy steps to a credit makeover include:

1. Pay your bills on time!
2. Keep your credit card debt low – below 10% utilization is optimal.
3. The longer you have credit, the better.
4. Apply for credit ONLY when you need to.
5. Diversity in your accounts is good!

If you are looking at homes for sale in Pasadena or the Greater Los Angeles area, give Irina Netchaev & Associates (real estate agents) a call at 626-204-3340 for a free and comprehensive buyer consultation.

Instead, to help mitigate losses, the FHA will tighten credit standards to rebuild the cushion to 2 percent or more, without raising the premiums borrowers pay or seeking an increase in its down-payment requirement of 3.5 percent.

Under the new rules, lenders making FHA-insured loans would need to show net worth of at least $1 million, an increase from $250,000.  The agency is seeking to ensure that lenders have funds available to compensate the FHA if their loans fail to meet quality standards.

The FHA also will impose a maximum loan value of 125 percent of the current estimated home value on refinanced loans, in line with Fannie Mae and Freddie Mac.

Appraisals will be valid for no more than four months, a decrease from the previous six to 12 months validation period.  The FHA also plans to implement appraisal changes adopted earlier this year by Fannie and Freddie.  Mortgage brokers or bank employees paid on commission won’t be allowed to order appraisers.

To read the full story, please click here

Interested in searching for homes for sale?  See available homes for sale in the Greater Los Angeles Area by going to Search Homes For Sale.

The first property tax installment has to be postmarked by December 10th and the 2nd installment has to be postmarked by April 10th.  If you miss these dates, your property tax bill will be considered delinquent.

Supplemental Property Tax Bill

The escrow officer, will prorate the property taxes as of the date of your Pasadena home or condo purchase.  The proration will be based on the existing home seller tax bill.

Since your property taxes will be based on your new home purchase price, the tax assessor’s office will reassess the amount due and will send you a Supplemental Tax Bill for the difference between what the escrow officer withheld during closing and the actual amount due from you.

Supplemental tax bills are your responsibility and will be mailed directly to you by the Treasurer and Tax Collector’s Office approximately 6 months after your purchase.  They are not generally paid by impound accounts. You may view your estimated supplemental tax amount by going to the Supplemental Tax Estimator on the LA Assessor’s website.

Homeowner’s Exemption

If you own and occupy your home as your principal place of residence, you are eligible for a Homeowners’ Exemption that reduces your property tax by about $70 annually. You will be sent an application about three to four months after your deed is recorded.As a homeowner myself, I am committed to do all I can to make the property tax process as easy as possible for you. If you have any questions, don’t hesitate to call my staff toll-free at 1(888) 807-2111 (select #6) and/or visit the Assessor’s Website at http://assessor.lacounty.gov

A Homeowner’s Exemption is different from a Declaration of Homestead. Here’s a great explanation of the difference between Homeowner’s Exemption which reduces your property taxes and a Declaration of Homestead which protects your home’s equity.

]]> http://www.searchmlsforfree.com/property-taxes-in-los-angeles-everything-you-wanted-to-know/feed/ 0 http://www.searchmlsforfree.com/life-of-an-escrow/ http://www.searchmlsforfree.com/life-of-an-escrow/#comments Mon, 21 Sep 2009 05:20:30 +0000 admin http://www.searchmlsforfree.com/?p=91 What is escrow?

An escrow is an arrangement in which a disinterested third party, called an escrow holder, holds legal documents and funds on behalf of a buyer and seller, and distributes them according to the buyer’s and seller’s instructions.

People buying and selling real estate often open an escrow for their protection and convenience. The buyer can instruct the escrow holder to disburse the purchase price only upon the satisfaction of certain prerequisites and conditions. The seller can instruct the escrow holder to retain possession of the deed to the buyer until the seller’s requirements, including receipt of the purchase price, are met. Both rely on the escrow holder to carry out faithfully their mutually consistent instructions relating to the transaction and to advise them if any of their instructions are not mutually consistent or cannot be carried out.

An escrow is convenient for the buyer and seller because both can move forward separately but simultaneously in providing inspections, reports, loan commitments and funds, deeds and many other items, using the escrow holder as the central depositing point. If the instructions from all parties to an escrow are clearly drafted, fully detailed and mutually consistent, the escrow holder can take many actions on their behalf without further consultation. This saves time and facilitates the closing of the transaction.

The escrow process was developed to help facilitate the sale or purchase of your home. The escrow holder accomplishes this by:

• Acting as the impartial “stake-holder,” or depository of documents and funds
• Processing and coordinating the flow of documents and funds
• Keeping all parties informed of progress on the escrow
• Responding to the lender’s requirements
• Securing a title insurance policy
• Obtaining approvals of reports and documents from the parties as required
• Prorating and adjusting insurance, taxes, rents, etc.
• Recording the deed and loan documents
• Maintaining security and accountability of monies owed and owing.

The Escrow Process

It all begins with the offer on a home purchase and acceptance  of that offer by a home seller, skillfully negotiated by the real estate agents representing Buyer and Seller.

The Buyer(s):

• Tenders a written offer to purchase  a home, condo or a townhome (or accepts the Seller’s counter-offer).  The home buyers’ offer is written on a California Purchase Agreement (also known as Deposit Receipt) and is usually accompanied by a good faith deposit amount.  In Pasadena, the norm of the earnest money deposit is 3% of purchase price of the home.

• Approves and signs the escrow instructions and other related instruments required to complete the transaction.

• Approves the preliminary report and any property, disclosure or inspection report called by the purchase and sale agreement. (Deposit Receipt)

• Schedules a home inspection including a physical home inspection and other necessary inspections like sewer line, chimney, septic tank, roof, foundation, etc.

• Approves and signs new loan documents and fulfills any remaining conditions contained in the contract, lender’s instructions and/or the escrow instructions.

• Deposits funds necessary to close the escrow. Approves any changes by signing amendments in the escrow instructions.

The Lender (when applicable):

• Accepts the new loan application and other related documents from the Buyer(s) and begins the qualification process.

• Orders and reviews the property appraisal, credit report, verification of employment, verification of deposit(s), preliminary report and other related information.

• Submits the entire package to the loan committee and/or underwriters for approval. When approved, loan conditions and title insurance requirements are established.

• Informs Home Buyer(s) of loan approval terms, commitment expiration date and provides a good faith estimate of the closing costs.

• Deposits the new loan documents and instructions with the escrow holder for Home Buyer’s approval and signature.

• Reviews and approves the executed loan package and coordinates the loan funding with the escrow officer.

The Escrow Officer:

• Receives an order for escrow and title services.

• Orders the preliminary report and examination on the subject property from the Title Company.

• Acts as the impartial “stakeholder” or depository, in a fiduciary capacity, for all documents and monies required to complete the transaction per written instructions of the principals.

• Prepares the escrow instructions and required documents in accordance with terms of the home sale.

• With the authorization from the real estate agent or principal, orders demands on existing deeds of trust and liens or judgments, if any. For assumption or subject to loan, orders the beneficiary’s statement or formal assumption package.

• Reviews documents received in the escrow: preliminary report, payoff or assumption statements, new loan package and other related instruments. Reviews the conditions in the lender’s instructions including the hazard and title insurance requirements.

• Presents the documents, statements, loan package(s), estimated closing statements and other related documents to the principal(s) for approval and signature, and requests the balance of the buyer’s funds.

• Reviews the proceeds of the loan(s) from the lender(s).

• Determines when the transaction will be in the position to close and advises the parties.

• Assisted by title personnel, records the deed, deed of trust and other documents required to complete the transaction with the County Recorder and orders the title insurance policies.

• Closes the escrow by preparing the final settlement statements, disbursing the proceeds to the Seller, paying off the existing encumbrances and other obligations. Delivers the appropriate statements, funds and remaining documents to the principals, agents and/or lenders.

The Home Seller(s):

• Accepts Buyer’s Offer to Purchase and initial good faith deposit to open escrow.

• Submits documents and information to escrow holder, such as: addresses of lien holders, tax receipts, equipment warranties, home warranty contracts, any leases and/or rental agreements.

• Approves and signs the escrow instructions, grant deed and other related documents required to complete the transaction.

• Orders inspections, receives clearances and approves final reports and/or repairs to the property as required by the terms of the purchase and sale agreement (Deposit Receipt).

• Fulfills any remaining conditions specified in the contract and/or escrow instructions; approves the pay off demands and/or beneficiary’s statements.

• Approves any final changes by signing amendments to the escrow instructions or contract.

Title Company:

• Receives an order for title service.

• Examines the public records affecting the real property and issues a preliminary report.

• Determines the requirements and documents needed to complete the transaction and advises the escrow officer and/or agents.

• Reviews and approves the signed documents, releases and the order for title insurance, prior to the closing date.

• When authorized by the escrow officer, Title Company records the signed documents with the County Recorder’s office and prepares to issue the title insurance policies.

Real Estate Agent:

• Coordinates all activities with the escrow company, lender, title company, buyer and seller.

• Oversees all transactional details.

• Ensures that all contractual deadlines are met and appropriate paperwork is submitted and communicated to all parties.

• Negotiates any requests for repairs and assists in obtaining estimates when necessary.

Having sold homes in and around Pasadena California for many years now, I’ve seen a lot of situations where Pasadena home buyers find a home of their dreams, but somehow going through the steps of the home purchase they make decisions that jeopardize their transactions.

If you are thinking of buying a home in Pasadena or are in the middle of a real estate transactions, I am hoping that these home buying tips will help you.  They are not in any particular order, but each of them is critical and important in their own way.

• Do NOT, and I mean, absolutely do NOT, quit your job in the middle of escrow. Home buyers, sometimes think that if they have already been approved for a home loan, they will be fine quitting or changing jobs after the fact.  Unfortunately, that’s one sure way to be declined for your home mortgage.  Banks will verify employment and salary just before funding your home loan.  Funding usually takes place 2 days before you close escrow on your new Pasadena home.  No verification, no funds, no sale.
• Home buyers – honestly – sometimes, you just talk too much. Some of you have a tendency to talk away with the home seller prior to getting your offer accepted and disclose a ton of material information that should be kept confidential.  If you have any questions, have your real estate agent ask them.  Stop talking.  You think that you’re finding out stuff about the house, but in actuality the home seller is learning more about YOU!  Let the real estate agent do their job and negotiate on your behalf.  After the contract is sealed, you can talk away all you want.
• You, the home buyer, didn’t meet with a lender for a complete consultation to get preapproved and did not set a budget for your home purchase. It’s important to understand how much you are able to afford before you make an offer on your home.  Once you find your Pasadena home, you will start incurring costs – for home inspections, sewer line inspections, appraisal, permits, etc.  If you did not do your due diligence and did not take the time to sit down with a lender, complete a full application and provide all the requested paperwork, you don’t really know if you’re qualified for a loan on that home.

Pre-qualifications, where lenders just do a quick analysis over the phone without submission and full underwriting review, mean absolutely nothing.  As we say in the real estate business, prequals are not worth the paper they’re written off.

Ensure that you have been fully approved for your mortgage and you understand what your budget is.

How much money should you borrow from the bank?  The rule of thumb in real estate lending is to make sure that your monthly payment does not exceed 36% of your income before taxes.

Also, ensure that you understand what your closing costs will be and how much money you should set aside to cover these home purchase costs.

Read More: Understanding Closing Costs – recurring and non recurring

What are Pasadena real estate closing costs?

• Do not understand your mortgage choices. There are so many different types of real estate loans to choose from.  Each one is unique in its own way.  As a home buyer, explore all your options.  A good real estate mortgage lender will ask questions that will help them recommend the appropriate financial product that is right for your individual needs.

Did you know that there are 40 year fixed mortgage loans available now?  Is an FHA loan the best solution for you?  Are you a first time buyer?  If so, did you check to see if there are any down payment assistance programs available to you?  How long do you anticipate living in your home?  Less than 5 years?  Maybe a fixed loan that adjusts after 5 or 7 years is the best way to go for you?  You have many, many options.  Explore them!!!  Buying a home is a huge decision!

• You are not being represented by a real estate agent. Or, you are being represented by the seller’s agent, also known as the listing agent.  Now… unless you know this real estate agent very, very well and you have the utmost confidence in him or her being able to objectively look at both sides of the transaction and gear you in the right direction having your best interest in mind, hire your own real estate agent.

The great thing about being a home buyer is that you do not have to pay a real estate agent commission in most cases.  The home seller pays the commission to their real estate brokerage and that real estate broker will share the commission with the buyer’s real estate agent.  Simple, isn’t it?  Get your own buyer broker representation!  Find a real estate “pit bull” that will ensure your interests are protected!

• You saw the house, wrote the offer and never went back to check on the neighborhood.  Ouch…  escrow is underway and you find out that the neighbor next door has a band that practices in their garage every Sunday morning.  Or, you drive in for a home inspection to see that there’s no parking on the street because there’s some sort of on-going activity taking place a block away from your newly found home.  You see what I mean, right?  If you are not 100% familiar with the neighborhood, take the time to drive by the house and around the neighborhood at different times of day and evening.  Check your commute time to work from the house.  See what it’s like being in that neighborhood or on that street on weekends.
• You did not get the home inspected by a professional inspector. Every home should be inspected by a California CREIA (California Real Estate Inspection Association) approved home inspector.  Living in California, termite inspections are a must.  And, when buying a home in Pasadena, San Marino or any of the surrounding cities, consider hiring a sewer line inspector.
• You bought the most expensive house on the block.  Shall I say more?  If you have a lot of money and it doesn’t really matter – go for it.  But, if you’re like the rest of us, please do not buy the most expensive home on the block.  THINK RESALE VALUE!!!

Take the time to look at comparable homes prior to writing the initial offer.

Ensure that the home will appraise.

Have a discussion with your real estate agent to see how much this home will be worth 3, 5 or 7 years from now.  When I represent home buyers, I always ask myself – if I had to sell this home today what would its pros and cons be.

• Review all offer terms carefully. Crafting an effective offer is a skill.  Strategize on the best way to write an offer with your real estate agent.  Are you asking the seller for concessions?  Is your offer clean?  Is it contingent upon you selling your home?  Present yourself, home buyer, in the best light by being approved by a lender, providing proof of funds, writing an introduction letter to the home seller and having a great and experienced real estate agent effectively packaging all this for you.

Read More: 5 Tips to get more home for your money!

Buying a home in Pasadena or any other city can be stressful and can have many pitfalls.  Ensure that you are guided by a real estate professional that you trust and respect and who has YOUR best interest at heart.

Photo Courtesy of Orin

The pendulum has shifted overnight. Did you notice? Pasadena real estate and the surrounding neighborhoods went from a seller’s market to a buyer’s market.

If you are a Pasadena home buyer, you came face to face with reality of multiple offers on any reasonably priced home. Not just one or two buyers bidding against you, but a multitude of buyers that you are competing against. What to do? Remember Real Estate 101 – Get back to Basics!

Home Buying Tips:

1. Get fully approved with a reputable lender! My clients are approved with not one lender, but three – Two direct lenders like Wells Fargo and Bank of America and a Mortgage Broker. Why?
   • First of all, in today’s ever changing banking climate, a home buyer needs to have back up financing.
   • Second, if you are writing a home purchase contract on a foreclosure (real estate owned – REO), the bank that is holding the property will only review your offer if you have a strong approval letter with their bank. Timing is of the essence. Buyers are not in a position to get approved with the foreclosure bank after they see the home because home buyers working with me are already approved and are writing that offer while others are just trying to get approved. The early bird gets the worm, right? You have to be prepared!
   • Third, when we write an offer for purchasing a home, we can include several approval letters which position my buyer above others. Put yourself in a home seller’s position. Would you want to open escrow and take your Pasadena home off the market for a buyer that is approved with multiple lenders or an unknown entity?
2. Write a letter to the seller. Explain why you love their house. Given a choice and comparable offers, most sellers will pick a home buyer that they feel will love their home as much as they do. A letter never hurts. It can only help.
3. Terms DO matter! By terms, I mean, escrow period, loan and appraisal contingencies, inspection periods. You need to strategically position your offer over the others that are coming in. All real estate contracts are not equal. Real estate agents might have a California Association of Realtors template for a contract, but how it is completed positions you to secure or lose that home that you fell in love with.
4. PRICE – please do your research with your Realtor. Look at the trends. How many homes sold in this area and how quickly did they sell? Do you see month to month change in the volume, pricing? Do the trends point to pricing going up? Are you seeing an influx of foreclosures? Discuss this with your Pasadena Realtor. The listing price of a home can be high or it can be low. Do not let it dictate your offer. It should only be a starting point. The actual data and anticipated trends should set the home price.

READ MORE:

Pasadena Real Estate Guide

Read 5 home buyer tips for getting more home for your $.

9 Stupid Things Buyers do to Mess Up their Home Purchase

Questions? Opinions? Would love to hear from you!

Title to real property in California may be held by individuals, either in Sole Ownership or in Co-Ownership.

Co-Ownership of real property occurs when title is held by two or more persons.

There are several variations as to how title may be held in each type of ownership. The following brief summaries reference seven of the more common examples of Sole Ownership and Co-Ownership.
SOLE OWNERSHIP

1. A man or woman who is not married.Example: John Doe, a single man.
2. An Unmarried Man/Woman: A man or woman, who having been married, is legally divorced.Example: John Doe, an unmarried man.
3. A Married Man/Woman, as His/Her Sole and Separate Property: When a married man or woman wishes to acquire title as their sole and separate property, the spouse must consent and relinquish all right, title and interest in the property by deed or other written agreement.Example: John Doe, a married man, as his sole and separate property.

   CO-OWNERSHIP

   • Community Property:
     Property acquired by husband and wife, or either during marriage, other than by gift, bequest, devise, descent or as the separate property of either is presumed community property.
     Example: John Doe and Mary Doe, husband and wife, as community property.
     Example: John Doe and Mary Doe, husband and wife.
     Example: John Doe, a married man
   • Joint Tenancy:
     Joint and equal interests in land owned by two or more individuals created under a single instrument with right of survivorship.
     Example: John Doe and Mary Doe, husband and wife, as joint tenants.
   • Tenancy in Common:
     Under tenancy in common, the co-owners own undivided interests; but unlike joint tenancy, these interests need not be equal in quantity and may arise at different times. There is no right of survivorship; each tenant owns an interest, which on his or her death vests in his or her heirs or devisee.
     Example: John Doe, a single man, as to an undivided ¾ ths interest, and George Smith, a single man as to an undivided 1/4th interest, as tenants in common.
   • Trust:
     Title to real property in California may be held in trust. The trustee of the trust holds title pursuant to the terms of the trust for the benefit of the trustor/beneficiary.

   The preceding summaries are a few of the more common ways to take title to real property in California and are provided for informational purposes only.

   There are significant tax and legal consequences on how you hold title. We bly suggest contacting an attorney and/or CPA for specific advice on how you should actually vest your title.

4. CONCURRENT CO-OWNERSHIP INTERESTS The comparison below is provided for information only, it should not be used to determine how you hold title. We bly recommend that you seek professional counsel from an attorney and/or CPA to determine the legal and tax consequences of how title is vested.
   

   	COMMUNITY PROPERTY	JOINT TENANCY	TENANCY IN COMMON	TENANCY IN PARTNERSHIP	TITLE HOLDING TRUST
   PARTIES	Only husband and wife	Any number of persons (can be husband and wife)	Any number of persons (can be husband and wife)	Only partners (any number)	Individuals, groups of persons, partnerships or corporations, a living trust
   DIVISION	Ownership and managerial interests are equal except control of business is solely with managing spouse	Ownership interests must be equal	Ownership can be divided into any number of interests equal or unequal	Ownership interest is in relation to interest in partnership	Ownership is a personal property interest and can be divided into any number of interests
   TITLE	Title is in the “community.” Each interest is separate but management is unified	Sale by joint tenant severs joint tenancy	Each co-owner has a separate legal title to his/her undivided interest	Title is in the “partnership”	Legal and equitable title is held by the trustee
   POSSESSION	Both co-owners have equal management and control	Equal right of possession	Equal right of possession	Equal right of possession, but only for partnership purposes	Right of possession as specified in the trust provisions
   CONVEYANCE	Personal property (except “necessaries”) may be conveyed for valuable consideration without consent of other spouse; real property requires written consent of other spouse, and separate interest cannot be conveyed except upon death	Conveyance by one co-owner without the others breaks the joint tenancy	Each co-owner’s interest may be conveyed separately by its owner	Any authorized partner may convey whole partnership property for partnership purposes	Designated parties within the trust agreement authorize the trustee to convey property. Also, a beneficiary’s interest in the trust may be transferred.
   PURCHASER’S STATUS	Purchaser can only acquire whole title of community; cannot acquire a part of it	Purchaser will become a tenant in common with the other co-owners in the property	Purchaser will become a tenant in common with the other co-owners in the property	Purchaser can only acquire the whole title	A purchaser may obtain a beneficiaries interest by assignment or may obtain legal and equitable title from the trust
   DEATH	On co-owner’s death, ½ belongs to survivor in severalty. ½ goes by will to descendants devisee or by succession to survivor	On co-owner’s death his/her interest ends and cannot be disposed of by will. Survivor owns the property by survivorship	On co-owner’s death his/her interest passes by will to devisee or heirs. No survivorship rights.	On partner’s death, his/her partnership interest passes to the surviving partner pending liquidation of the partnership. Share of deceased partner then goes to his/her estate	Successor beneficiaries may be named in the trust agreement, eliminating the need for probate.
   SUCCESSOR’S STATUS	If passing by will, tenancy in common between devisee and survivor results.	Last survivor owns property	Devisee or heirs become tenants in common	Heirs or devisee have rights in partnership interest but not specific property	Defined by the trust agreement, generally the successor becomes the beneficiary and the trust continues
   CREDITOR’S RIGHTS	Property of community is liable for debts of either spouse, which are made before or after marriage. Whole property may be sold on execution sale to satisfy creditor	Co-owner’s interest may be sold on execution sale to satisfy creditor. Joint tenancy is broken. Creditor becomes a tenant in common	Co-owner’s interest may be sold on execution sale to satisfy his/her creditor. Creditor becomes a tenant in common	Partner’s interest cannot be seized or sold separately by his/her personal creditor but his/her share of profits may be obtained by a personal creditor. Whole property may be sold on execution sale to satisfy partnership creditor	Creditor may seek an order for execution sale of the beneficial interest or may seek an order that the trust estate be liquidated and the proceeds distributed
   PRESUMPTION	Strong presumption that property acquired by husband and wife is community	Must be expressly stated	Favored in doubtful cases except husband and wife case	Arise only by virtue of partnership status in property placed in partnership	A trust is expressly created by an executed trust agreement