The most obvious difference between U.S. property rights and Chinese property rights is the duration of ownership. The United States has a private property system; the purchase of a house includes the land, meaning that when you buy a house, you also purchase the land on which it is built. U.S. property rights are permanent, whereas residential property rights in China are limited to 70 years, and commercial property rights are generally limited to only 50 years.
If purchasing as partners, the method of holding property rights varies according to the laws of each state.
Taking New York State as an example, there are three main ways for multiple parties to hold property rights: tenancy by the entirety, joint tenancy, and tenancy in common.
Taking tenancy by the entirety as an example, in many U.S. states, a house purchased after marriage is generally considered jointly owned by the couple, regardless of whether one or both names are on the title. However, New York State is different. New York law protects the property owner, meaning that whoever's name is on the title has the right to sell or trade the property. Therefore, for property jointly owned by a married couple, both names must be included on the property deed.
If only one spouse's name is on the property, they may still be required to share a portion of the assets if a dispute arises and evidence is provided.
If only one person's name is on the property deed, that person has the right to dispose of the house through sale or rental. Additionally, New York matrimonial law adheres to the principle of equitable distribution of marital property. If only one person's name is on the deed, once a dispute arises, the other party can provide evidence of their contribution to the family and may be entitled to a portion of the assets. Any sale or transfer must be agreed upon by both parties and cannot be transferred to others unilaterally.
If parents purchase property jointly with their children, there is no need to pay estate tax.
Joint tenancy is characterized by unity of interest, time, title, and possession. The owners acquire the property at the same time, and the documents confirming the rights are the same. The owners do not distinguish between property shares and cannot dispose of their respective interests separately. If one owner passes away, the surviving owners automatically acquire their share of the property. Therefore, joint tenancy cannot be disposed of through a will.
The law stipulates that the creation of a joint tenancy must be clearly agreed upon in writing, stating that the owners hold the property as joint tenants. For example, some states specify that a married couple holds property in the form of joint tenancy. Many parents choose to purchase property jointly with their children so that when the parents pass away, the property under their names automatically transfers to the children, saving the various procedures of drafting a will and avoiding the need to pay estate tax.
Tenancy in common: Property rights are clear, and shares can be sold independently. Property owners hold the property by percentage, and each can independently sell or trade their shares.
Comprehensive property protection system: U.S. title insurance protects property owners.
Many houses in the United States have a history of over a hundred years, so some properties may have title issues such as outstanding loans or tax liens, which makes U.S. title insurance very necessary. Compared to the widely known homeowners insurance, title insurance mainly provides protection for property owners when they encounter legacy property disputes or financial loan issues.
Title insurance is a one-time purchase and does not require annual payments. Therefore, real estate attorneys remind the public that although title insurance is not mandatory, it is still recommended that homeowners purchase it to prevent future property disputes.
Because China has strict restrictions on the duration of property ownership and domestic housing prices remain high, applicants for U.S. immigration who do not intend to purchase property in China may consider purchasing property in the United States. However, applicants need to pay attention to U.S. regulations on property rights to avoid various inconveniences and economic losses caused by a lack of understanding of U.S. law.
For those who want to buy a house in the United States, I hope the above content is helpful to you.
