What expenses does the bare owner have to pay and what does the usufructuary have to pay?

The real estate sector is a world full of possibilities that allow owners put into practice different alternatives that better satisfy their needsHowever, this versatility implies a host of knowledge and concepts that are sometimes not easy to differentiate.

The case of bare ownership often generates many doubts since, instead of there being a full owner, their rights are divided into two parts: the bare owner and the usufructuary. Each one has their financial obligations, although as we have already mentioned, they are not always completely clear. Luckily, at Aun Más Vida we are experts in sale of the bare property y We can resolve all these types of doubts.

El usufruct It is a legal figure that determines that a person (the usufructuary) has the right to enjoy a good without being its owner. Likewise, the owner of the bare ownership maintains ownership of that asset without being able to use or enjoy it until the usufruct is extinguished.

This distinction leads to a corresponding allocation of responsibilities and expenses which can give rise to conflicts if not managed properly from the outset. Generally speaking, expenses can be divided between those that are for enjoyment (borne by the usufructuary) and those that arise from ownership (borne by the bare owner).

What expenses does the usufructuary have to pay?

The usufructuary is responsible for covering those expenses that are derive directly from the enjoyment of the good or its maintenance The legislation allocates costs related to the effective use of the property, since it is the owner who enjoys it, while the bare owner is responsible for extraordinary expenses and those that do not derive from the habitual use of the property. These are the most important expenses that the usufructuary must assume:

• Ordinary maintenance and conservation costs: The usufructuary must take charge of the expenses necessary to maintain the property in good condition, such as: Minor repairs, cleaning and utilities such as water, electricity, gas or heating.
• Direct taxes on property income: If the usufructuary is renting the property or generating income from the use of the property, he/she must pay the taxes generated from said income.
• Supplies and services: Recurring expenses derived from the use of housing, such as the consumption of electricity, gas, water and other services.
• Property insurance: Although this is not always the case, in many cases The usufructuary is responsible for insuring the property in the event that it is damaged through use. However, this may vary depending on the agreed conditions.

What expenses does the bare owner have to pay?

The possibility of the bare owner to enjoy his property is limited by the usufruct, but despite this remains responsible for certain expenses linked to the property itself, beyond everyday use. The main ones are the following:

• Property taxes: The owner of the property is obliged to pay the taxes related to the ownership of the property, such as the Real Estate Tax (IBI).
• Major repairs: Extraordinary repairs They are not the result of ordinary wear and tear, but are necessary to keep the property in a habitable condition. This could include structural repairs, such as fixing the façade, roof, or foundation.
• Conservation of the value of the asset: If the property requires interventions to maintain or increase their market value In the long term, these are also often the responsibility of the bare owner.

According to the regulations, the division of responsibilities between the usufructuary and the bare owner seeks protect both the use of the asset and its long-term conservationThis distribution of burdens implies that the person who enjoys the property must take care of its daily maintenance, while the owner of the property must protect its value and structure, as well as pay property taxes.

Who pays for the insurance: the owner or the usufructuary?

Home insurance is a crucial aspect in any relationship between the bare owner and the usufructuary. This contract It covers both possible damage to the property and the risks associated with its use..

As we have already mentioned, it is generally the usufructuary who must pay the insurance for the use of the property, since he directly benefits from the enjoyment and use of the property. This insurance may include coverage against risks affecting daily use, such as damages caused by the usufructuary or the people who live in the home.

However, the bare owner must also take into account that it is advisable to maintain insurance that covers the property in its entirety, since, even if he does not enjoy it, at the end of the day, he is the owner of the property. The insurance could include both the usufruct part and the structural part, although this will always depend on the agreement between both parties.

Who pays the community fees: the owner or the usufructuary?

Community fees are another aspect that can cause confusion in cases of bare ownership. In general terms, community fees are those expenses that arise from the conservation and maintenance of common areas in a shared property, such as apartment buildings. This includes elevator maintenance, common areas, cleaning services, among others.

According to current legislation, the usufructuary must be responsible for the community expenses that arise from the use and enjoyment of the common areas of the property, since he resides in the property and enjoys its facilities. On the other hand, the bare owner may be obliged to pay those expenses that are related to the structure of the building or which are necessary to preserve the value of the asset in the long term.

Once again, the division of community expenses depends on the type of expenses and their nature. In principle, The usufructuary is responsible for current expenses and the bare owner for extraordinary expenses..

Recommendations to avoid conflicts over expenses

To avoid conflicts over the allocation of expenses, it is important that both parties reach a clear and formalized agreement from the beginningHere are some recommendations to make this happen:

• Drafting a detailed agreement: A formal agreement should be drawn up that clearly specifies the responsibilities of each party regarding expenses.
• Specific clauses: It is also advisable to include specific clauses on extraordinary expenses, insurance, repairs and any other matter that may give rise to confusion in the future.
• Periodic revision: If the usufruct extends over many years, it may be advisable to periodically review the agreements on expenses to Adjust responsibilities based on changes under the circumstances.
• Legal queries: When in doubt, it is advisable consult with a lawyer specializing in real estate law to ensure that all responsibilities are clear and legally supported.

In conclusion, usufruct generates a series of economic responsibilities that must be clearly established between the parties involved. By having a clear and written agreement, the bare owners and usufructuaries They can avoid misunderstandings and legal problems that affect their relationship..