Ownership in severalty is a method of holding title to real property with distinct legal implications. The term “severalty” originates from the word “severed,” indicating that the ownership interest is separate from any other person. This form of ownership provides a single individual or a legal entity with comprehensive control over a property. This article explains what severalty means in New York, how it is created, and its associated rights and responsibilities.
What is Ownership in Severalty in New York?
Ownership in severalty in New York signifies that a property is owned by one person or a single legal entity. This is considered the simplest form of property ownership, where the title is held by a sole owner who possesses the entire bundle of rights. This individual or entity holds an exclusive, undivided interest, meaning no other party has a claim to the property’s ownership.
This form of ownership is not limited to individuals. In New York, a corporation or a limited liability company (LLC) can also hold property in severalty.1NYS Open Legislation | NYSenate.gov. New York Business Corporation Law § 2022NYS Open Legislation | NYSenate.gov. New York Limited Liability Company Law § 202 When a business entity takes title this way, the entity itself is the sole owner, distinct from its shareholders or members.
How Severalty Ownership is Created in New York
Ownership in severalty is most frequently established through the direct purchase of real estate by a single individual or legal entity. When a deed, the instrument used to transfer property ownership, names only one grantee, this form of ownership is created. The deed does not need to explicitly state “ownership in severalty,” as the naming of a sole grantee is sufficient.
Property can also be acquired in severalty through inheritance. If a will devises real property to a single heir, that individual inherits it as the sole owner. Similarly, if an owner dies without a will, New York’s intestacy laws might result in a single heir receiving the property. Another path is the termination of a co-ownership arrangement, such as when one joint tenant buys out the others, consolidating the entire ownership interest in one person.
Rights and Responsibilities of a Sole Property Owner
Holding property in severalty grants the owner an extensive set of rights. The owner can possess, use, and manage the property without needing consent from anyone else. This includes making improvements, leasing the property, and collecting all rental income. The sole owner also has the authority to encumber the property by taking out a mortgage or granting an easement.
With these rights come undivided responsibilities. The sole owner is liable for all financial obligations associated with the property, including property taxes, insurance, and all costs for repairs and upkeep.3NYS Open Legislation | NYSenate.gov. New York Real Property Tax Law § 304 Should a personal injury occur on the property due to negligence, the owner in severalty also bears sole liability for any resulting legal claims. There are no co-owners to share these financial burdens or legal risks.
Severalty in Contrast to New York Co-Ownership Structures
To understand ownership in severalty, it helps to contrast it with New York’s co-ownership structures. Unlike a tenancy in common, where multiple owners each hold a separate, fractional interest in the property, a severalty owner holds the entire interest. A tenant in common can sell or inherit their specific share independently, while the severalty owner controls the entire property.
Joint tenancy is defined by the right of survivorship, where a deceased owner’s interest automatically transfers to the surviving joint tenants. Property owned in severalty does not have this feature. Tenancy by the entirety, a form of ownership available only to married couples in New York, also differs as it provides special protections against creditors that severalty ownership does not.4NYS Open Legislation | NYSenate.gov. New York Estates, Powers and Trusts Law § 6-2.2
Disposition of Property Owned in Severalty
An individual who owns property in severalty has the unrestricted right to dispose of it during their lifetime. The owner can sell, gift, or transfer the property into a trust without needing approval from any other party. The process involves executing and recording a new deed that conveys the title to the new owner.5NYS Open Legislation | NYSenate.gov. New York Real Property Law § 291
Upon the death of a sole owner, property held in severalty becomes part of their estate. If the owner has a valid will, the property is distributed to the named beneficiaries through the probate process. If the owner dies intestate (without a will), New York’s laws of intestate succession govern who inherits the property, which is often the closest living relatives, such as a spouse or children, according to a statutory hierarchy.6NYS Open Legislation | NYSenate.gov. New York Estates, Powers and Trusts Law § 4-1.1