Essential documents for domestic partners

Q: My partner and I recently signed a contract to buy a condominium unit, and settlement is scheduled to take place by the end of the month. We will put up equal amounts of money for the purchase and have agreed to share all expenses equally.

Is there some legal document that we need to protect each other's interest in the event that a tragedy hits one of us or should we ever decide to split up? We both want to ensure that if one of us should die, the survivor will get the property with absolutely no claims considered by family members.

A: Yes, you must enter into a "partnership agreement" that spells out all of your concerns.

The first issue: How will you take title to the property?

There are four ways that title can be held:

-- Sole owner. This is obvious; only one person is on the title to the property.

-- Tenants in common. Under this approach, each of you would have a divisible interest in the property. Typically, the ownership percentage is based on the amount of money each partner puts into the purchase. Because you are each sharing equally, you will each own 50 percent of the property. If one of you dies, his or her interest will go to probate, and if there is a will, that person's share of the property will be distributed in accordance with the will.

It used to be that probate -- especially in the District -- was a cumbersome, slow process. However, legislation enacted by the D.C. Council has greatly simplified it.

-- Joint tenants with rights of survivorship. Under this approach, on the death of one of the joint property owners, full title will vest in (or go to) the survivor. The survivor would own the entire property without having to go to probate court.

It should be noted that some state courts have held that if title is held as joint tenants but without the language "with rights of survivorship" added to the deed, this will be treated as a tenants-in-common arrangement instead. Under our common law, joint tenancies were favored by the courts. However, over the past century, legal historians have concluded that this has changed, and now there is a presumption that property is being held as tenants in common unless the deed makes it clear that the intent of the parties was to take ownership as joint tenants. Accordingly, if this is the approach you want to take, the deed should read "joint tenants with rights of survivorship."

-- Tenants by the entireties. This type of title historically has been reserved for married couples. This has the same effect as a joint tenant with right of survivorship but creates a more secure relationship for husband and wife that is honored by law. But if you and your partner are married in a state that recognizes same-sex marriages, or if you and your partner register in the District as domestic partners, then you can take title as tenants by the entirety. This option is not available to same-sex couples in Maryland or Virginia.

In a joint tenancy, if there is a judgment against one of the owners, the creditor can force the sale of the property to collect on the judgment. In this situation, half of the sales proceeds will go to the title owner against whom there is no judgment, but the other half will be used to satisfy the monetary judgment.