If you have bought a new or resale home, you will have many important decisions to make. Some of these decisions involve more than just buying the house. This column will touch upon two of those important decisions.

The first issue revolves around the manner in which you wish to own your property or in legal terms, hold title to your property. On closing, your lawyer will receive a document called a Transfer/Deed of Land (Deed). This document will record the name(s) of the owner of the Deed. However, before your lawyer registers the Deed, he or she will ask you how you wish to hold title to your Land. Let’s look at some possibilities.

There are two ways that people can hold title. The first way is called “Joint Tenancy”. If you hold title as joint tenants, this means that, upon the death of one of the joint tenants, the remaining joint tenant automatically becomes the owner of the entire property. There is no need for the property to pass through an estate. If you are married, it is typical for a husband and wife to hold title as “joint tenants”. The second way that title can be held is as “Tenants in Common”. As a tenant in common, each owner owns a percentage of the property. Upon the death of one tenant, the surviving tenant does not automatically obtain the entire property. Instead, the percentage owned by the deceased tenant is passed to his or her heirs in accordance with the deceased’s will or by law if there is no will.

There is no right or wrong way to hold title-both ways give you options. If you own as a joint tenant, the benefit is that the property automatically passes to the surviving joint tenant. Nothing else needs to be done. Owning as a tenant in common allows you to precisely establish the percentage of ownership attributable to each tenant. For instance, if you own a house with your brother and you have contributed 75 per-cent of the cost of the home whereas you brother has contributed only 25 per-cent, then you can ensure that upon your death, 75 per-cent of the property will go to who you would like, provided you have set this out in your will.

Buying a house should also prompt you to consider another important matter-Wills and Powers of Attorney. If you do not have a will, you should have a lawyer prepare one for you. If you do, you need to ask yourself if it is up-to-date. If you have young children, it is very important to have your will completed. Aside from the fact that your will lets you decide who receives your estate, a will also can allow you to determine who gets custody of your children if something happens to both parents. A will can prevent disputes long after you are gone. It will provide direction to your family members at a time when they most need it.

A Power of Attorney is another important document that you should complete as part of your home buying process. A Power of Attorney allows you to decide who will manage your financial affairs when you are unable to do so because you are incapacitated. It allows lets you choose who will take care of your personal needs if you are incapacitated. Should you fail to have a valid Power of Attorney for Property or Personal Care, your family members may need to hire a lawyer who will need to go to court to regain control of your affairs. Remember that these two documents have separate triggering events. A Power of Attorney takes effect upon your incapacity whereas a will takes effect upon your death.