Understanding Vesting on Title: A Guide for Borrowers
When buying a home, an important decision you will make before closing is how title will be vested. Vesting appears on the deed, the legal document that transfers ownership from the seller to you—or to you and other owners.
Vesting determines who legally owns the property, how ownership shares are divided, what may happen if an owner dies, and how the property may be treated for probate, estate planning, divorce, creditors, and certain tax considerations.
Being on the deed identifies the legal owner or owners of the property. The deed is generally recorded with the local county recorder’s office and serves as public evidence of ownership. Ownership may provide the right to occupy and use the home, sell it, borrow against it, or pass an ownership interest to heirs, subject to applicable law, liens,
