Ownership, Transfer, and Title
Property can be held in several ways and transferred through several methods, each with different legal consequences. This chapter explains forms of ownership, the deeds used to convey title, and how title is evidenced and protected, with attention to Arizona's community property system.
Forms of Ownership
Ownership in severalty means a single individual or entity holds title alone. Co-ownership includes tenancy in common, where owners hold undivided shares that pass to their heirs, and joint tenancy, which carries the right of survivorship. Arizona is a community property state, so most property acquired by either spouse during marriage is owned equally by both. Spouses may also take title as community property with right of survivorship to avoid probate.
Deeds and Their Warranties
A valid deed requires a competent grantor, a named grantee, consideration, a legal description, words of conveyance, and the grantor's signature; delivery and acceptance complete the transfer. A general warranty deed gives the broadest protection, warranting title against all defects. A special warranty deed covers only the grantor's period of ownership, and a quitclaim deed conveys whatever interest exists with no warranties, often used to clear clouds on title.
Title Evidence and Recording
Recording a deed in the county where the property sits gives constructive notice to the world of the ownership interest and establishes priority. A title search examines the public record chain of title to reveal liens, easements, and other encumbrances. Title insurance protects the owner or lender against covered defects that surface later. In Arizona, escrow and title companies commonly handle closing and title functions.