The distinction between the elements that make up full domain is crucial to understanding the management and transfer of rights over assets, especially in the real estate sector. Although both concepts refer to a form of shared ownership, there are fundamental differences that can have important legal and property implications.
Below, we will explain what usufruct and bare ownership are, their differences, details, obligations and rights. Also, if you are considering the sale of bare property, this article will serve as a guide to better understand this process, which can be attractive both for holder of the bare ownership as well as the beneficiary of the usufruct.
What is usufruct?
El usufruct It is a real right that allows a person enjoy the fruits of a good that belongs to another person, the owner of the property, without being the owner of the property itself. In other words, the usufructuary has the power to use and obtain benefits from the property, but cannot sell it or dispose of it permanently.
As an example, let's imagine that a father grants his son the usufruct of a house, while the property remains in the father's name (the bare owner). The son may live in the house or rent it out and receive the rental income, but You will not be able to sell it or make permanent modifications to it. without the father's consent.
This right is usually life, that is, it lasts as long as the person lives usufructuary, although it can be of a determined duration if so established during the formalization of the agreement. The usufruct can fall on movable and immovable property, and is very common in inheritance situations, where it is sought guarantee the rights of the usufructuary while preserving the rights of the future owners of the property.
In case you are interested in the sale of the bare ownership, remember that, in this type of transaction, the usufructuary will continue to enjoy the property for the duration of the usufruct, while the bare owner obtains the right to sell or transfer ownership of the property, Once the usufruct ends.
What is bare property?
Bare ownership is the right of ownership over a good, but without this including the possibility of its use and enjoyment, since these rights would form part of the advantages of the usufructuary. The bare owner possesses the good, but You cannot take advantage of it while the usufruct exists.
In the event that a person sells the bare ownership of a home to a buyer, but maintains the usufruct of the same, the buyer would become the bare owner. He can sell the home, but You cannot use it or rent it until the usufruct ends.However, the seller may continue living in the house or enjoying the fruits (if applicable) until he dies or the usufruct expires.
If you want to know more details about bare ownership, we recommend you review our post titled «All about bare ownership« to gain a deeper understanding of the legal and financial aspects involved.
What is full ownership?
As you may have already deduced, full ownership includes the two concepts mentioned above, both bare ownership and usufruct, and their corresponding rights over real estate. In other words, the full owner You can use, enjoy, sell and dispose of the property according to their wishes, without any restrictions. This right is different from usufruct or bare ownership, where the rights are partial.
Full domain It is the most complete form of possession, and is usually the objective of those who purchase a good, since it gives them full capacity to manage and dispose of it.
To learn more about the implications of this right and its differences with other similar concepts, it is advisable to consult our article «What is full ownership» which offers a more detailed explanation.
Main differences between usufruct, bare ownership and full ownership
The key differences between the different elements that we have developed so far can be summarized in several important aspects: the rights that each figure grants, the duration of the right, and the possibility of transferring the asset.
Rights and obligations:
- The usufructuary has right to use and enjoy property, but may not sell or transfer them without the consent of the bare owner.
- The owner of the bare property possesses the property, but cannot use it or benefit from its fruits until the usufruct ends.
- The owner of the full ownership owns both the right of use and enjoyment as well as the disposition of the property.
Duration:
- The usufruct is usually for life or temporary. Once the usufructuary dies or the usufruct is extinguished, the proprietary node acquire the full control.
- The owner of the bare ownership cannot enjoy the real estate he owns, but When the usufruct expires, the owner acquires it in full. (full domain).
- Full ownership is indeterminate and does not depend on any other right.
Possibility of transmission:
- The owner's knot You can sell or transfer your right to the property, but the usufructuary will continue to be such until the usufruct expires.
- The usufructuary cannot transfer the right without affecting its usufruct, while bare ownership can be transferred to another person.
- The owner of the full domain has Complete freedom to sell, rent or transfer the property.
Relationship between bare owner and usufructuary: obligations and rights of each party
By now it should have become more or less clear that the relationship between the bare owner and the usufructuary is complex. Although both have rights over the same property, Their functions and responsibilities are very differentBelow we explain the obligations and rights of each party.
Rights of the usufructuary:
- Right to use and enjoy the property, as well as receive the fruits that it generates, such as rents or leases.
- It also has the possibility of carry out the repairs and maintenance necessary to preserve the property, but must return it in its original or similar condition at the end of the usufruct.
Rights of the bare owner:
- The owner of the bare ownership has the right to sell or transfer the property, but, as we have already mentioned, without being able to enjoy the property until the usufruct is extinguished.
- Has the power to recover full ownership once the usufruct ends.
Obligations:
- The owner knot must pay expenses related to the structure and maintenance of the property (taxes associated with home ownership or major repairs).
- The usufructuary is responsible for the expenses arising from the daily use of the property (such as electricity, water or small repairs), although you do not have to take care of extraordinary expenses.
In general terms, these would be the main rights and duties. However, It is always advisable to consult our related articles with this topic for more information, such as “Expenses of the bare owner and the usufructuary" or "Obligations of the usufructuary and the bare owner".
In conclusion, although usufruct and bare ownership share certain similarities, their differences are fundamental to understanding the rights and obligations associated with each. Understanding these distinctions is crucial to the proper management and transmission of assets, especially if you are considering emerging alternatives to traditional sales, such as the sale of bare ownership. After all, these are specialized products that are better adapted to particular demands and situations of owners and buyers. For more information, you can always contact us for personalized advice and counseling.
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