Bare ownership is the right of a person over a thing of which he or she owns but cannot use it.. The possession and enjoyment of that property will be in the hands of a third party., giving rise to what is known as the right of usufruct. It consists, therefore, in the ownership of a property, although it does not entail its enjoyment or possession.
At the moment, It is a very recurring issue given the large number of owners, especially older people without heirs or with financial needs, who decide to sell the bare ownership of their home and reserve the usufruct. So, They ensure that they continue residing in their home for life and also receive financial compensation in exchange for renouncing bare ownership..
Bare ownership is also a frequently used concept in the field of inheritance., It is common for heirs to inherit bare ownership of a property, but the lifetime usufruct over it is reserved to a third party (usually to the widowed spouse).
Where does bare property come from??
To get to the origin of the concept of bare ownership, We must first explain the meaning of full domain or full ownership, which is nothing more than the ownership of the total property of a certain asset. When breaking down this idea two points appear: the bare property, is defined, and the usufruct, which constitutes the right of use and enjoyment that an individual has over an asset of which he is not the owner. This way, two different rights arise over a common thing. The person who combines usufruct and bare ownership in his person will be the full owner of a certain asset..
What are the differences between bare ownership and usufruct??
There is a very marked contrast between the capabilities of the bare owner and the usufructuary.. In fact, even though the first is the owner of the property, He enjoys practically no privileges and is said to have a “bare property”. The usufructuary may enjoy the property for as long as his right lasts.. In addition, You may rent it or sell the usufruct to a third person., which is generally the owner node itself. The owner node, instead, You will not be able to rent the property, since you don't own it, although you can sell the bare property to a third party. The bare owner will only acquire the use and enjoyment of the home with the extinction of the usufruct., that can be given by: death of the usufructuary, compliance with the stipulated deadline, o compliance with the resolutory condition established in the usufruct agreement, like for example, for the person in question to marry.
The sale of bare property
It is increasingly common for bare ownership of a property to be purchased, but not its usufruct. It occurs especially in the case of older people who do not have heirs or want to receive extra income., without giving up continuing to live in your home. In these cases, the buyer will benefit from a lower purchase price in compensation for not being able to own the property for a few years, situation that may make sense in the case of medium and long-term real estate investments. A transcendental factor when calculating the sale price of the bare property is the life expectancy of the person who will benefit from the usufruct.. There is an inversely proportional relationship between age and the price of this right. So, the older one is, the smaller the other will be. This is because the bare owner will not be able to enjoy this property until the death of the usufructuary., That is why this term is so focused on elderly people.. Also, because they are the ones who can obtain the greatest profit in this type of operations.
What rights and obligations does the bare owner have??
Although it has limited powers, This figure enjoys a series of rights and complies, also, a series of obligations.
Rights of the bare owner
- property right: The bare owner has the right to property since he holds it even though he is not permitted to use and enjoy it..
- Right to sell bare property: As long as the rights of the usufructuary included in the article are respected. 489 of the Civil Code: “The owner of assets in which another has the usufruct may transfer them, but do not alter its form or substance, nor do anything in them that harms the usufructuary.”
- Right to mortgage bare property: According to the provisions of the article 107.2 of the Mortgage Law: “They may also be mortgaged: Second. The mere property, in which case, if the usufruct is consolidated with it in the person of the owner, not only will the mortgage remain, but will also extend to the same usufruct, unless otherwise agreed.”
- Right to carry out works and improvements: As long as it does not harm the usufructuary or diminish the value of the usufruct.. This is stated in the article 503 of the Civil Code: “The owner may carry out the works and improvements that the usufruct property may be susceptible to., or new plantations in it if it were rustic, provided that such acts do not diminish the value of the usufruct., nor is the right of the usufructuary harmed.”
- Right to have the use and enjoyment restored once the usufruct has ended: Once achieved, following the steps in the article 522 of the Civil Code: “The usufruct has ended, the usufructuary thing will be delivered to the owner, except for the right of retention that corresponds to the usufructuary or his heirs for the disbursements that must be reimbursed. Delivery verified, The bond or mortgage will be cancelled.”
Obligations of the bare owner
- Take charge of extraordinary repairs to the property: The usufructuary must notify when the need is urgent (article 501 of the Civil Code): “Extraordinary repairs will be the responsibility of the owner.. The usufructuary is obliged to notify him when the need to do so is urgent.”
- Respect the right of the usufructuary: You may not alter the characteristics of the usufructuary property., nor carry out acts that harm the right of the usufructuary (article 489 of the Civil Code).
- Payment of corresponding taxes and taxes: According to the article 505 of the Civil Code, The bare owner has the obligation to take charge of the taxes and duties corresponding to the property., with the exception of Real Estate Tax, which will be borne by the usufructuary: “The contributions that are imposed directly on the capital during the usufruct will be borne by the owner.. If this had satisfied them, the usufructuary must pay the interest corresponding to the sums that he had paid in said concept and, if the usufructuary anticipates them, You must receive your amount at the end of the usufruct.”
- Pay the mortgage of the usufruct: In the event that the property is mortgaged when the usufruct is established (article 509.1 of the Civil Code): “The usufructuary of a mortgaged property will not be obliged to pay the debts for whose security the mortgage was established.. If the property is seized or sold judicially to pay the debt, The owner will respond to the usufructuary for what he loses for this reason.”
- Respond to the usufructuary: The bare owner must respond to the usufructuary if the property is seized or sold to settle the payment of a debt..
- Take charge of community expenses: These expenses correspond to the owner of the property. In fact, the Supreme Court in a ruling of May 2005 indicates that: “constitutes an obligation imposed not on the users of a property, but to their owners.". Nevertheless, both parties can agree, between them