One of the most important aspects of the entire closing procedure is how you take title, because not only does it determine how you will be insured, but it also has significant legal and tax consequences. So much depends on the precise way you hold title, in fact, that you should not rely on advice from a real estate agent, closing officer, or friend when you are trying to determine how to hold title. You would be wise to consult your tax consultant or attorney about the best way for you to hold title in your particular circumstances — and in the area in which you live. The options can vary from state to state.