The final step in the transaction will occur when your escrow agent or attorney prepares a new deed and files it in the public land records office. We're not there yet-but you'll need to decide in advance what the deed should say about how you've decided to legally own the place. Depending on where you live, your and any cobuyers' choices as to how to take ownership may include: * sole property* joint tenants with right of survivorship* community property* community property with right of survivorship* tenants by the entirety, or* tenants in common.

Your closing agent or attorney should be able to tell you which options are available in your state.

TIP.

Your choice isn't permanent. Be careful about how you take title-it can affect important things like tax liability and division of the property if you die. But you can change your deed later (though you may need all the other owners' consent first). Be careful about how you take title-it can affect important things like tax liability and division of the property if you die. But you can change your deed later (though you may need all the other owners' consent first).

Sole Property

If you're buying a place on your own, you'll hold it as your sole property, and your deed will reflect that. The property belongs to you alone. If you're married but nevertheless purchasing the house on your own, you can still own it as sole property. In that case, talk to an attorney, to discuss not only what to put on the deed, but how to make sure it remains your sole property. For instance, this may require you to make all the payments on any mortgage or other house-related expenses like property taxes, repairs, and upgrades. Your spouse may also need to sign a quitclaim deed giving up any interest in the house. However, that won't necessarily preclude your spouse from claiming an interest based on later contributions-for instance, if you use community property (like your salaries) to make mortgage payments.

Joint Tenants With Right of Survivorship

If you buy the property with at least one other person, you can take title in joint tenancy with right of survivorship. In most states, joint tenants must always own an equal interest in the property (50/50 if there are two of you). The most important feature of such ownership is that if one of you dies, the co-owner automatically gets the other share of the property, without the need for probate.

It's common for married couples, domestic partners, and those in committed relationships to take title this way. It's not so popular among other cobuyers, who may not want to leave their half-interest to their co-owner. Some states restrict joint tenancy-for example, in Texas it can be created only by a separate written agreement.

Community Property

This one's for married couples (and in some places, registered domestic partners) only, and then in only a handful of states (listed below). But it's usually the most beneficial option where available. Couples that own their homes as community property each own half of the property, which they can pass on to whomever they please through their wills. They can't sell or give away their share while living unless the other spouse consents.

Community property ownership often comes with significant federal tax advantages, but currently only to married couples, not same-sex couples who are married, in a civil union, or registered as domestic partners (to whom federal tax rules don't apply). Some of these same-sex couples will enjoy state tax benefits, but these are beyond the scope of this book.

When one spouse dies, the entire entire property is revalued, for capital gains tax purposes, to its current market value. This new value is sometimes referred to as a "stepped-up basis." When the house is eventually sold, the stepped-up basis is treated as if it were the original purchase price to determine the amount of profit on the sale. The higher your stepped-up basis, the lower your profit, and the lower your capital gains tax obligations. This beats the tax benefits available to buyers in joint tenancy-they also get a stepped-up basis, but for only half the property when one owner dies. For more information, see IRS Publication 555, property is revalued, for capital gains tax purposes, to its current market value. This new value is sometimes referred to as a "stepped-up basis." When the house is eventually sold, the stepped-up basis is treated as if it were the original purchase price to determine the amount of profit on the sale. The higher your stepped-up basis, the lower your profit, and the lower your capital gains tax obligations. This beats the tax benefits available to buyers in joint tenancy-they also get a stepped-up basis, but for only half the property when one owner dies. For more information, see IRS Publication 555, Community Property Community Property, available at www.irs.gov.

Community Property States The states that currently have community property laws include Alaska (a somewhat unusual law, in which community property is never automatic but can be chosen), Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.

Community Property With Right of Survivorship

In a few states, another way to hold title is "survivorship community property" (currently available in Alaska, Arizona, California, Nevada, and Wisconsin). Property held this way doesn't have to pass through probate when one spouse dies, but instead goes straight to the other spouse. It's similar to joint tenancy but limited to married couples (or registered domestic partners). It still carries the other benefits of community property, as well.

Tenants by the Entirety

Another option usually reserved for married folk-and in some states, those in registered civil unions or similar "official" relationships-is tenancy by the entirety (available in about half of the United States). Its main advantage is protecting the property from creditors. You and your spouse each own the entire entire property and can sell it only with the other's consent. In most states, if one spouse is in debt, creditors can't come against that person's share of the property-a major difference from joint tenancy. However, it's similar to joint tenancy in that if one spouse dies, the other gets the place without probate hassles. property and can sell it only with the other's consent. In most states, if one spouse is in debt, creditors can't come against that person's share of the property-a major difference from joint tenancy. However, it's similar to joint tenancy in that if one spouse dies, the other gets the place without probate hassles.

Tenants in Common

If you're unmarried and buying with another unmarried person, you might choose to own the property as tenants in common (TIC). This allows you to hold property together in unequal shares. For example, if you're buying with a friend and have agreed on a 60/40 ownership split, your deed can reflect that. If you don't specify your shares in the deed, the split will be assumed to be equal.

With a TIC, you really have to trust your buying partner. The law will allow either of you to sell your share of the property without the other's consent, unless you make a separate arrangement. That means you could find yourself with a new housemate, perhaps one you don't like. Also, each of you owns an undivided portion of the entire property-you own 60% of the entire house, not just the large upstairs unit you and your co-owner have agreed you'll live in. You'll have to separately agree on who lives where.

If one of you dies, the other doesn't have any right to the deceased's share of the property. Instead, that person's share will pass according to the will or living trust or, if there is no such document, according to state law (which would normally give the property to a close family member). Discuss all these issues before purchasing, and write up a separate written agreement-preferably with an attorney's help-covering the use and possible sale of the property. For a refresher on the legal and practical issues of joint ownership, see Chapter 9.

Get Ready, 'Cause Here I Come: Preparing to Move

Even as you're busy with these preclosing tasks, you have another logistical issue to take care of: moving. Don't wait until the last minute to plan for how you'll transition from your old home to your new one.

Renters: Give Notice

If you're renting, you'll need to give your landlord proper notice that you're moving out. How much notice varies by state, but if you're a month-to-month tenant, one month is normal. If you can afford to pay both rent and a mortgage for a little while, plan some overlap. This will lower your stress in case the sale is delayed or repairs take longer than expected. It will also allow you to focus on the sale instead of on the move-more time reading agreements and handling contingencies, less time searching for boxes and bubble wrap.

If you have a roommate who won't be coming along, be sure to work out details such as finding a replacement for you and getting the security deposit back.

CHECK IT OUT.

Every Tenant's Legal Guide, by Janet Portman and Marcia Stewart (Nolo), covers the legal rules and procedures for ending a tenancy, including situations where only one tenant is leaving. by Janet Portman and Marcia Stewart (Nolo), covers the legal rules and procedures for ending a tenancy, including situations where only one tenant is leaving.

Arrange Your Move

Even if you've always used three friends and a pickup truck, your first home might be the time to consider hiring a mover. It's much easier (especially if you're moving in or out of a space with a lot of stairs), usually faster, and not always more expensive.

Within the "move your stuff for money" arena, you have several options. The most expensive is the full-service mover, who packs everything for you and whisks it away. Another option is to pack everything up yourself, then have the mover pick it up-this tends to be cheaper. Finally, there are companies that deliver storage units to you, then pick them up and ship them to your new pad. These are typically the cheapest, but of course you do most of the heavy lifting.

TIP.

Need to access a condo unit using an elevator? If so, Mark Nash cautions, "You'll probably need to plan ahead for moving day by reserving use of the elevator. And you can do this only after you've paid your move-in fee." If so, Mark Nash cautions, "You'll probably need to plan ahead for moving day by reserving use of the elevator. And you can do this only after you've paid your move-in fee."

If you decide to use a mover, get in-person, written quotes from at least three different companies. If you're being quoted extremely low rates over the phone, be suspicious-reputable moving companies are usually in line with each other, and looking at the goods allows them to make reasonable estimates based on the amount of stuff you actually have.

If you're moving a long distance or interstate, choose an interstate mover licensed by the Department of Transportation (DOT). Ask for a license number, and look up basic information at www.protectyourmove.gov (by the Federal Motor Carrier Safety Administration). Your state may also have licensing requirements for in-state movers, and it's a good idea to check up on those. (by the Federal Motor Carrier Safety Administration). Your state may also have licensing requirements for in-state movers, and it's a good idea to check up on those.

Long-distance moves are charged by weight. Plan for the truck to be weighed twice-once when it's full of your stuff and again when it's empty. And know this: Movers regulated by the DOT can't charge you more than 10% over a given nonbinding estimate, so don't let the mover pull a fast one.

TIP.

Can you can live without your stuff for a few days? Some movers offer a discount if you'll allow a pickup or dropoff that coincides with another customer's. For example, if you can wait three days for someone moving to the same area, the company can move you together. Some movers offer a discount if you'll allow a pickup or dropoff that coincides with another customer's. For example, if you can wait three days for someone moving to the same area, the company can move you together.

If you decide to move yourself, you may want to rent a truck big enough to accommodate your worldly goods, especially if you're going a significant distance. You might also want to call friends and family now, to ask for help.

CHECK IT OUT.

For more moving help and quotes, see: * * www.moving.com, where you can compare up to six prescreened movers' rates* www.homebulletin.net, a directory unaffiliated with any moving companies* www.mymovingquote.com, another directory* www.movingease.com, which gives quotes from four top movers: Allied, North American, Wheaton, and Bekins.

Get the Kids Ready

A move can be traumatic for little people. According to child and family therapist Debbie Essex, "One of the reasons moving is tough on children is that they've usually had very little input into the process-they just feel like their lives are being disrupted. You can help counter that by letting them play some small role in decision making, for example, choosing a new color to paint their bedroom or where to place their bed or the posters on their wall." Here are some other ways to help make the transition easier.

* Share it. Share it. If you live far away but you've got pictures of the new place, show them. If you can drive by, do it. For the younger ones, remind them frequently about the new move. Reading children's books about moving can also help. If you live far away but you've got pictures of the new place, show them. If you can drive by, do it. For the younger ones, remind them frequently about the new move. Reading children's books about moving can also help.* Keep the comforts close by. Keep the comforts close by. Pack comforting items-toys, games, pictures, whatever-in easily accessible places. Pack comforting items-toys, games, pictures, whatever-in easily accessible places.Children's Books on Moving Here's some comforting material for kids of various ages:* Because of Winn-Dixie Because of Winn-Dixie, by Kate DiCamillo (Candlewick; Ages 9-12). A stray dog helps Opal make new friends among the unusual residents of her new hometown.* The Monster in the Third Dresser Drawer & Other Stories About Adam Joshua The Monster in the Third Dresser Drawer & Other Stories About Adam Joshua, by Janice Lee Smith (HarperTrophy; Ages 4-8). A spunky boy copes with moving, the strange boy next door, and a new school.* Moving Molly Moving Molly, by Shirley Hughes (William Morrow & Co; Baby-Preschool). Molly's new neighbors help her adjust to her new country home.

Though you may be tempted to get rid of a ratty blanket, don't do so now if it's something your child treasures.* Get schools squared away. Get schools squared away. Particularly if it's the middle of the school year, do what you can to make your child's transition comfortable. Order school records. Find out whether your child is likely to be ahead of, or behind, the current curriculum and whether adjustments should be made. Take the little one to see the new school. Particularly if it's the middle of the school year, do what you can to make your child's transition comfortable. Order school records. Find out whether your child is likely to be ahead of, or behind, the current curriculum and whether adjustments should be made. Take the little one to see the new school.* Make sure there's time to say goodbye. Make sure there's time to say goodbye. You may wish to plan a going-away party, or just go out to your favorite local restaurant. You may wish to plan a going-away party, or just go out to your favorite local restaurant.* Get medical and dental records. Get medical and dental records. If you're going to be changing providers, make sure you have records to hand over. If you're going to be changing providers, make sure you have records to hand over.* Research activities in the new home. Research activities in the new home. Especially if you're moving during the summer, research opportunities for the kids to get involved in activities that will help them make friends. Especially if you're moving during the summer, research opportunities for the kids to get involved in activities that will help them make friends.

Get the Pets Ready

For those of you with furry, scaly, and many-legged friends, here are a few important tips for making the transition: * Arrange transport. Arrange transport. Moving companies don't take pets, so plan ahead. If you're moving a long distance, some animals can be shipped as cargo on airplanes, in a pressurized (though dark) cabin. If driving, make sure your car is equipped to handle your pet comfortably. You may wish to get a nervous cat a pet-carrier or make sure the pets in your aquarium will get sufficient fresh water or oxygen during the transport. Moving companies don't take pets, so plan ahead. If you're moving a long distance, some animals can be shipped as cargo on airplanes, in a pressurized (though dark) cabin. If driving, make sure your car is equipped to handle your pet comfortably. You may wish to get a nervous cat a pet-carrier or make sure the pets in your aquarium will get sufficient fresh water or oxygen during the transport.* Get vet records. Get vet records. Get a copy of your pet's medical records, if you'll be seeing a new animal-care provider. Get a copy of your pet's medical records, if you'll be seeing a new animal-care provider.* Get a new license or tags. Get a new license or tags. Get your pet a new identification tag-some pet stores have engraving machines. Also get a current animal license (if applicable), or update the current license to reflect your new address. If your pet is found wandering, authorities will be able to contact you in your new location. Finally, if your pet has an identifying microchip, update your contact information with the microchip company. Get your pet a new identification tag-some pet stores have engraving machines. Also get a current animal license (if applicable), or update the current license to reflect your new address. If your pet is found wandering, authorities will be able to contact you in your new location. Finally, if your pet has an identifying microchip, update your contact information with the microchip company.* Set up space. Set up space. Keep your pet's immediate physical needs in mind as you pack, keeping food, a litter box, or other tools accessible. Keep your pet's immediate physical needs in mind as you pack, keeping food, a litter box, or other tools accessible.* Make sure enclosures are safe. Make sure enclosures are safe. If your new house has an enclosed area like a fenced yard where the pet will stay, make sure there are no escape routes or hazards. You can check this out when touring the property with your home inspector. If your new house has an enclosed area like a fenced yard where the pet will stay, make sure there are no escape routes or hazards. You can check this out when touring the property with your home inspector.* Don't leave animals alone. Don't leave animals alone. Unlike humans, animals don't understand why you packed up and shipped out. Leaving pets alone in a new environment can cause them anxiety. Plan to be home as much as possible in the first few days. Unlike humans, animals don't understand why you packed up and shipped out. Leaving pets alone in a new environment can cause them anxiety. Plan to be home as much as possible in the first few days.

CHECK IT OUT.

To find out more about moving your pet, visit: * * www.hsus.org (search for "moving" on this Humane Society site) (search for "moving" on this Humane Society site)* www.petswelcome.com (under "Travel Tips"), and (under "Travel Tips"), and* www.sspca.org (click "Pet Info"). (click "Pet Info").

What's Next?

You're almost ready for the closing itself-but not quite. First, we need to explore the ins and outs of property inspections (Chapter 12) and homeowners' insurance (Chapter 13).

CHAPTER 12.

Send in the Big Guns: Professional Property Inspectors