Does anyone know what this question on a loan application means: "Manner in which Title will be held"

Answer 1

Generally, this would apply to the purchase of a substantial asset, such as a house or (new) vehicle. There are numerous ways in which the ownership of the property will be registered via a title once you take possession.

Three examples of title provided: Joint tenancy, trust and individually:

JTWROS - joint tenancy with right of survivorship, i.e. if one of the owners dies, the survivor receives complete ownership. (Obviously, any outstanding mortgages/loans remain in place.) Generally applicable for a married couple whereby ownership continues with minimal, if any, legal obligations otherwise.. No legal documentation needs to be filed prior to the purchase. This option is applicable to bank accounts, stock/brokerage accounts, etc. In the event of the death of one owner, one takes a certificate to the registering agency/court and the title can be changed/modified easily.

Trust - whereby the trust is a third party entity, like a corporation, that operates for the beneficiaries, likely minor children so that they have the value upon reaching legal age or upon the passing of those purchasing the asset. This option requires the legal filing of the documents of trust prior to the purchase or transfer of ownship after the purchase.

As an individual - In the event of the death of the owner, then the will takes over. There is a probate process which reconciles the assets and oblications of the deceased and involves court reviews and filings. Attorneys almost always get involved for major assets and there are fees running approx. 3% of the assets.

As one can appreciate, when one purchases a major asset, there are legal implications with respect to sucession. Assuming one is in reasonable health, one can purchase the asset as an individual, very simple, and then do a transfer to another form of ownership such as those mentioned above. Either way, the lender/mortgagor will generally want to review the papers.

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Answer 2

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RE :Does anyone know what this question on a loan application means: "Manner in which Title will be held"
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Answer 3

It is the formal, legal description of the title holder. Ex: "John A Doe, a single man". OR "Jane R Doe, a married woman" On the application, just use your name, or if you have a co-borrower, both your names.