{"id":323431,"date":"2024-02-01T00:39:28","date_gmt":"2024-01-31T23:39:28","guid":{"rendered":"https:\/\/aq-acentor.com\/?p=323431"},"modified":"2024-02-01T00:39:29","modified_gmt":"2024-01-31T23:39:29","slug":"bare-ownership-of-a-home","status":"publish","type":"post","link":"https:\/\/aq-acentor.com\/en\/bare-ownership-of-a-home\/","title":{"rendered":"What is bare ownership of a home?"},"content":{"rendered":"\n

If you are wondering what bare ownership of a home is<\/strong>, it is a legal concept that refers to a person who has rights over an asset, in this case as the owner of a property, but cannot use it. This means that a bare owner <\/strong>is the person who owns the asset. However, the property is actually used by and in the possession of a third party who has the right of usufruct<\/strong>. Would you like to know how bare ownership works? Here\u2019s a rundown of everything you need to know in this article.\u00a0<\/p>\n\n\n\n

Can the bare owner live in the property?<\/h2>\n\n\n\n

The answer is very simple: no, they cannot live in the property<\/strong>. As we explained in the introduction, the bare owner owns the property<\/strong>, but they do not have the right to use it<\/strong> in any way. This right is reserved for the usufructuary<\/strong>, who has the right to use the property, although they do not own it<\/strong>. That being said, the owner may use the property once the usufruct is extinguished.<\/p>\n\n\n\n

Who may buy a bare property?<\/h2>\n\n\n\n

Any person or entity may buy a bare property, provided that they respect the rights of the usufructuary. <\/p>\n\n\n\n

The sale of bare property involves a homeowner (who is usually advanced in age) transferring the ownership of the home in exchange for a one-off payment, a periodic annuity<\/strong> or a payment of half the amount upon signing the contract and the rest in monthly instalments for life. <\/p>\n\n\n\n

Although the bare owner may not reside in the property, what they can do is transfer ownership of the asset <\/strong>or use it as collateral in certain cases.<\/p>\n\n\n\n

\"rights-of-the-bare-owner\"<\/figure><\/div>\n\n\n\n

Do bare properties need to be declared in tax returns?<\/h2>\n\n\n\n

The owner must include the property in their income tax declaration and indicate in the property section that they own a bare property<\/strong>. However, the property does not generate any taxes, as the bare owner does not obtain any income via the use of the property, nor are there any real capital gains.\u00a0<\/p>\n\n\n\n

As for the usufractuary, the income received from the transfer of the right of use of the property, such as a lease or income received upon selling the bare property, do need to be declared in their income tax returns<\/strong>.<\/p>\n\n\n\n

Rights of the bare owner compared to the usufructuary<\/h2>\n\n\n\n

The bare owner\u2019s rights<\/strong> are as follows:<\/p>\n\n\n\n