For many Americans, owning a home is still a key part of reaching their version of the American Dream—something that continues to hold strong value. In fact, 73% see homeownership as a milestone toward that goal. But turning that dream into reality means facing real choices, especially around ownership. And if you’re planning to go solo, tenants by severalty could be on the table. Before you move forward, it’s worth knowing what that really means for your rights, responsibilities, and long-term plans.
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What Does Tenants By Severalty Mean?
Tenancy by severalty, also known as ownership in severalty, means you own the property alone. No one else has any ownership rights. The word “severalty” comes from the idea that your ownership is separate from anyone else’s.
For example, if you purchase a house under your name only, you make all the decisions. You do not need to check with a co-owner if you want to sell it, rent it out, or refinance it later.
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Advantages of Tenancy by Severalty
Owning property on your own can be appealing if you want to make decisions without waiting for agreement from others. Here are some benefits you can enjoy:
You Have Sole Ownership of the Property
When you are the only owner, you have complete control of the property. You decide how to manage, improve, or sell the property whenever you think it makes sense.
Imagine buying a loft apartment to use as an Airbnb. You can choose when to raise the rent, remodel the unit, or sublet the place without asking for approval from a partner or co-owner. This way, you can avoid potential conflicts that may arise if you have a joint tenancy.
Estate Planning Is Usually Easier
Having a property solely in your name can simplify estate planning. By choosing a type of trust, you can clearly state who should inherit the property without needing to coordinate with another owner’s wishes. It’s less complex because you don’t have to coordinate sharing property interests with other parties.
If you invest in a vacation property and want to leave it to your children, you can simply include it in your will or trust without having to divide the ownership rights with someone else’s heirs.
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Disadvantages of Tenants by Severalty
Even though owning property by yourself gives you freedom, it also means you take on all the risks and responsibilities alone. Some drawbacks of tenancy in severalty include:
Tenants by Severalty Doesn’t Offer Rights of Survivorship
When you own real estate under tenants by severalty, it’s solely in your name—no one else is legally attached. That might work for DINK couples, single homeowners, or individuals going through a separation or divorce who want clear ownership lines. But without survivorship rights, this setup has risks.
If you pass away without a will, the property doesn’t automatically go to a partner, relative, or co-parent. Instead, it enters probate and could be divided by state intestacy laws, possibly bypassing those closest to you. This can create unexpected complications for blended families, civil union partners, or even adult children from a prior marriage.
It Needs to Pass Through a Probate Process
Properties owned solely often must go through probate unless you set up a living trust. Probate can delay the transfer of ownership and increase legal costs for your heirs.
Suppose you own a loft apartment. If you haven’t placed it in a trust or clearly designated a beneficiary, it could take a year or more for your family to gain control of it.
You’ll Bear All the Liabilities
As the sole owner, any problems related to the property are yours to manage. There is no one to split costs or handle legal claims with you.
Picture a situation where a tenant subleasing sues over an accident on the property. You would be the only person named in the lawsuit and responsible for all legal fees or damages.
It Might Not Be Flexible
Severalty ownership is less adaptable if your personal situation evolves. For example, empty nesters might downsize and later add a child to the title. Others might remarry and wish to include a new spouse. Adding someone down the line usually means drafting a new deed, navigating title transfers, and possibly facing additional taxes.
Financing may also be more favorable with co-ownership. Lenders often offer better mortgage terms when multiple parties with strong credit apply together. If you’re the sole applicant, your rates and options might not be as competitive.
Taxes May Be Costly for Tenants by Severalty
Owning property alone might make you miss out on tax benefits that apply to married couples or co-owners. You may be ineligible for these benefits, resulting in a higher tax bill when you sell or transfer the property.
For example, if you sell a rental property and you are the sole owner, you may not qualify for the higher capital gains exclusions available to joint owners.
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Alternatives to Tenants by Severalty
If tenancy by severalty feels too limiting, you have the following options for holding property ownership that might better suit your needs.
Joint Tenancy With Survivorship Rights
In joint tenancy, two or more people own the property together. If one owner dies, the others automatically inherit the deceased person’s share.
If you and your sibling invest in a vacation property, joint tenancy could allow you to avoid probate if something happens to either of you.
Tenancy In Common
Tenancy in common lets multiple people own property together but with separate shares. Each owner can leave their share to anyone they choose.
Suppose you and a friend buy a duplex. You might each own 50%, but it doesn’t have to be equally divided among you. When you pass away, you can leave your share to your children without affecting your friend’s rights, and vice versa.
Tenancy by Entirety
Tenancy by entirety is available only in certain states and only to legally married couples. It allows spouses to own the property as one legal unit, offering protection from individual creditors and automatic transfer of ownership upon death.
If you’re buying a studio or 1-bed unit with your spouse—whether it’s your first or you’re starting over after divorce—this form of ownership can help shield the property if one partner faces legal action. If one spouse passes away, the other automatically inherits full ownership without court involvement.
Community Property With Survivorship Rights
Some states offer a community property option where spouses own property together. This type of ownership helps you avoid probate in states with community property taxes. When one spouse dies, the other automatically becomes the sole owner without going through probate.
If you and your spouse buy a house in a community property state, choosing this option could simplify ownership transfers and reduce potential tax issues. You will also protect your spouse’s interest in the property because you cannot will it to someone else.
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Conclusion
Deciding how to hold property ownership depends on your current needs and future plans. If you’re someone who prefers sole ownership and can handle risks, tenancy by severalty is the ownership type for you.
Before you finalize your choice, it is a good idea to talk with a real estate attorney or financial planner. That way, you can choose the structure that fits your situation without unnecessary surprises in the long run.
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