Forms of ownership glossary
Ownership in severalty means title is held by one legal owner
Severalty describes the number of owners, not the absence of mortgages, easements, tenants, beneficiaries, managers, or shareholders.
Last updated: August 1, 2026
Ownership in severalty: definition first
Direct answer: Ownership in severalty, also called sole ownership, means one person or legal entity holds the identified ownership interest without a co-owner on that title. The sole owner can be an individual, corporation, limited liability company, or another entity capable of holding real estate. The property can still be leased, mortgaged, encumbered, managed, or beneficially connected to others.
Why it is on the exam: PSI lists ownership in severalty or sole ownership first among forms of ownership in the 10 percent Property Ownership area. Questions test whether title has one owner or multiple co-owners, not whether one natural person performs every task related to the property.
Record owners
One person or entity
Co-ownership
None in the stated interest
Entity may qualify
Yes
Encumbrances possible
Yes
Count legal owners before naming the estate
| Decision point | Severalty | Co-ownership |
|---|---|---|
| Title holders | One legal owner | Two or more owners |
| Example | One LLC holds fee title | Two individuals hold as tenants in common |
| Decision authority | Owner acts subject to entity rules, contracts, and law | Each co-owner's rights and required consent depend on the ownership form |
| At owner death | Individual owner's interest passes under will, trust, or intestacy rules, not automatic co-owner survivorship | Result depends on survivorship feature and ownership form |
Look through people to the single title-holding entity
A corporation can have thousands of shareholders and still be the sole record owner of a building. The shareholders own interests in the corporation, not fractional deeded interests in that real estate merely because they own stock. The corporation's title is ownership in severalty.
An LLC can similarly hold title alone even though it has multiple members. The operating agreement and business law govern who can authorize a sale or mortgage, but those internal decision makers do not automatically become co-owners of the land.
- Read the grantee line on the deed or stated title facts.
- Count legal owners of the real-property interest.
- Do not count an entity's shareholders or members as deeded co-owners.
- Separate title ownership from management and beneficial interests.
Sole ownership does not mean an unrestricted bundle
A sole owner remains subject to zoning, taxation, eminent domain, and other government powers. Private leases, mortgages, easements, covenants, and association obligations can divide or burden the bundle of rights.
A tenant's possession does not turn the tenant into a fee co-owner. A mortgage lender's lien does not usually put the lender on the deed as a co-owner. Severalty answers who holds the stated ownership estate, not who has every related right or claim.
Disposition is simpler to identify but still document-driven
A legally competent individual sole owner can generally decide to convey the owner's interest without obtaining a co-owner's signature. Spousal homestead rights, entity authority, trusts, court orders, contracts, and other law can still require signatures or approvals.
When an individual sole owner dies, the property does not pass by a nonexistent joint-tenancy right of survivorship. It passes under the owner's estate plan, trust arrangement, transfer mechanism, or intestacy rules, subject to administration and valid claims.
One LLC, four members
Question: A deed names Prairie Homes LLC as the only grantee. The LLC has four members. Is the building held in severalty or tenancy in common by the four members?
Best answer: It is held in severalty by Prairie Homes LLC.
Why: The LLC is one legal owner on title. Its members hold membership interests governed by entity law and the operating agreement; they do not become deeded tenants in common merely because they own the LLC.
Lock in the distinction
Exam trap
Do not count the owners of a title-holding company as owners of the company's real estate. Severalty can describe one entity even when that entity has many human stakeholders.
Memory cue
Severalty is severed from co-ownership. Count names that legally hold the real-property interest, not everyone behind them.
Quick questions
Does severalty mean several owners?
No. It means one legal owner holds the stated interest separately from co-owners.
Can a corporation own in severalty?
Yes. One corporation or LLC can be the sole legal owner even if it has many shareholders or members.
Can property held in severalty have a mortgage?
Yes. A mortgage or other encumbrance can burden the title without converting the lender into a co-owner.
Does severalty include survivorship?
There is no co-owner whose joint-tenancy survivorship can operate. An individual's interest passes through the applicable estate-planning, trust, transfer, or intestacy process.
Primary sources and review status
- PSI Illinois Real Estate Candidate Information Bulletin, June 24, 2026
- 765 ILCS 5, Illinois Conveyances Act
Checked through August 1, 2026. This definition is an exam-prep explanation, not a substitute for current law or advice about a live dispute. The current official source controls if the outline or Illinois rule changes.