Selling a property stripped of any usufruct rights before the owner's demise: a radical shift in the real estate market!
Selling the Bare Ownership of a Home: Not as Simple as It Seems
By Christine Lejoux Real Estate Manager Published on , last modified at
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Living in the modern-day, Camille and Sarah, daughters of forward-thinking parents, find themselves in a bit of a bind. Their parents, in their wisdom, gifted the bare ownership of the family home to them during their lifetimes, keeping the usufruct for themselves. This decision is intended to help the girls avoid heavy succession duties upon their parents' death, but they find the blessing tainted by complications.
The bare ownership for Camille and Sarah is a locked treasure chest - they cannot sell it as long as their parents are alive. Camille's dreams of buying her first primary residence and Sarah's ambitions for her own business are thwarted by the immovable property they now possess, yet cannot liquidate.
Stanley Nahon, associate director of Renée Costes, a real estate company specializing in life annuities and bare ownership, recognizes the predicament these young women find themselves in. In some cases, receiving bare ownership can be a curse rather than a blessing, especially in cases of blended families, where ties need to be broken.
It's not just the inability to sell the bare ownership that makes it a burden; liability for major repairs and the potential burden of real estate wealth tax also loom on the horizon.
But, there is some hope for home-buyers in need: Renée Costes has introduced a contract called Herit'immo, designed specifically for heirs of a bare ownership. This contract allows them to sell their bare ownership without being dependent on the usufruitier's passing. The secret ingredient? An investor.
For the investor, it's a win-win situation - they purchase an immovable property at a lower price while granting the usufruitier's rights and ensuring that they still have the right to live in the dwelling or rent it out.
Bonus Facts:
- Did you know? In some legal systems, properties can be divided into "bare ownership" (nu-propriété) and "usufruct" (usufruit). The bare owner holds the property rights but cannot use or benefit from it until the usufruct ends, typically upon the death of the usufructuary. The usufructuary, on the other hand, has the right to use the property and benefit from its income during their lifetime.
- When considering property arrangements like the one described, it's essential to consider legal and tax implications, ensuring that all parties are protected and that the transaction complies with relevant laws and regulations.
Related Articles:
- Real estate sales
- Succession
- inheritance
- donation
- blended families
- usufruct
- bare ownership
- life annuities
- Camille and Sarah, heirs of the bare ownership of the family home, find themselves unable to sell it while their parents are alive, thus hindering their dreams of buying homes and starting businesses.
- Reneé Costes, a real estate company specializing in life annuities and bare ownership, has introduced a contract called Herit'immo to help heirs of bare ownership sell their interest without depending on the usufructier's passing, offering a solution for those in a similar situation.
- An investor, in buying a property through the Herit'immo contract, receives a lower-priced immovable property, grants the usufruitier's rights, and ensures that the usufruitier can still live in or rent out the dwelling.
- It's crucial for individuals dealing with property arrangements like bare ownership and usufruct to understand the legal and tax implications, ensuring that all parties are protected and the transaction complies with relevant laws and regulations.
