Two of the most misunderstood concepts in real estate are usufruct and bare ownership. When parents transfer a property to their children, you often see a usufruct note in the title deed. This article explains both terms in plain language.
What Is Usufruct?
Usufruct is the right to use a property and benefit from it. The holder may live in it, rent it out and collect the rental income, but is not the actual owner and cannot change the property fundamentally. The right is generally personal and ends with the holder’s death. It is recorded in the title deed.
What Is Bare Ownership?
Bare ownership belongs to the person who owns the property while another person holds the usufruct. The owner is on the title deed but cannot use the property or collect its income. When the usufruct ends, full ownership is restored automatically.
Key Differences
- The usufructuary uses the property and receives its income; the bare owner holds title to its future.
- Usufruct usually lasts for life; bare ownership becomes full ownership when it ends.
- Bare ownership can be sold, but the buyer cannot use the property right away.
Use in Inheritance and Family Transfers
Many families transfer a home to their children while keeping a lifetime usufruct, so parents can keep living there. It can also reduce inheritance disputes later. Because taxes, fees and inheritance law matter, always get advice before the transaction.
Effect on Buying and Selling
Buying a property with a usufruct is risky, since you cannot use or rent it until the right ends. Such properties are usually priced below market value. Always check the title deed for notes before buying.
Armet Emlak & Harita is at your side for title deed and family transfer matters. (0242) 417 72 72 · armetinsaatemlakharita.com