🏠 Understanding the 4 Main Types of Property Ownership: A Breakdown for Buyers and Owners

When it comes to owning real estate, how you hold title matters just as much as what you own. Whether you're buying a home with a partner, investing with friends, or holding property solo, the form of ownership you choose affects your rights, responsibilities, and what happens to the property after death or divorce.

In this post, we’re breaking down the four most common forms of property ownership:

• Tenancy in Severalty

• Tenancy in Common

• Joint Tenancy

• Tenancy by the Entirety

Let’s explore the key differences, similarities, and how to choose the right one for your situation.

🔑 1. Tenancy in Severalty — Sole Ownership

Best for: Individuals or businesses owning property alone.

This is the simplest form of ownership. One person or entity holds full and exclusive rights to the property. The term "severalty" comes from the word "severed" — meaning the owner is severed from others.

• ✅ Full control to sell or transfer

• ✅ Passes by will or inheritance

• ❌ No survivorship rights (because there are no co-owners)

👫 2. Tenancy in Common (TIC) — Flexible Co-Ownership

Best for: Friends, family members, or investors purchasing together with different ownership percentages.

Each co-owner holds an individual share in the property, which may be equal or unequal. There's no right of survivorship, so an owner's interest can be passed down to heirs.

• ✅ Owners can have different percentages

• ✅ Can sell or transfer their share independently

• ❌ No automatic inheritance by co-owners if one dies

• ✅ Great flexibility, but can get legally complex

🏡 3. Joint Tenancy — Equal Ownership with Survivorship

Best for: Close relationships where owners want equal shares and property to transfer automatically at death.

In a joint tenancy, all owners must acquire the property at the same time, with equal interest and equal rights. The key feature here is the right of survivorship—when one owner dies, their share goes directly to the surviving co-owner(s), bypassing probate.

• ✅ Equal ownership and equal control

• ✅ Right of survivorship

• ❌ One owner selling their share breaks the joint tenancy

• ⚠️ Not ideal if co-owners want the ability to will their share elsewhere

💍 4. Tenancy by the Entirety (TBE) — Ownership for Married Couples

Best for: Married couples (and in some states, civil partners).

TBE is similar to joint tenancy, but only available to married spouses. It includes the right of survivorship, and both spouses must agree to any sale or transfer. This form of ownership also often provides extra protection against creditors pursuing one spouse.

• ✅ Right of survivorship

• ✅ Equal, undivided interest

• ✅ Strong creditor protection (in many states)

• ❌ Not available to unmarried couples

• ❌ Requires mutual consent for decisions

🧾 Comparison Chart: At-a-Glance

🧠 Choosing the Right Ownership Type

The best form of ownership depends on your relationship with co-owners, your estate planning goals, and your state laws.

Ask yourself:

• Do you want your share to pass automatically to others or through a will?

• Do you need creditor protection?

• Are you buying with someone you’re not married to?

💬 Final Thoughts

Property ownership isn’t just a title—it’s a legal structure that affects everything from control and liability to inheritance. Always talk with a real estate attorney or title professional to ensure your ownership type aligns with your long-term plans.

Need help navigating the process in Hawai‘i or anywhere in your real estate journey? I’d be happy to help.
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