Bare-ownership sale

A bare-ownership sale is an estate solution built on the splitting of ownership rights. It lets an owner sell part of their property rights while generally keeping a right that allows them to stay in their home.

Unlike a viager, this operation generally involves no monthly annuity. The seller receives a substantial capital sum immediately — the price of the bare ownership.

The buyer becomes the bare owner of the property. The seller keeps, according to the structure chosen, either a usufruct or a right of use and occupancy. In time, when the right the seller kept comes to an end, the buyer automatically recovers full ownership.

The bare-ownership sale is a powerful estate instrument that can also support a transfer strategy: organising a gradual transfer, helping your children during your lifetime, passing on property within a controlled framework. Every family situation nevertheless calls for its own study with the appropriate professionals.

1 — Bare-ownership sale with a reserved usufruct

This is the historic form of splitting property rights. The seller keeps a life usufruct and therefore retains the right to occupy the home, to use it freely, to let it and to receive any rent. The buyer acquires the bare ownership alone and will automatically become full owner on the death of the usufructuary.

Advantages of the usufruct

• Maximum protection for the seller.
• Great freedom in how the property is used.
• Room to adapt to a future change of circumstances.
• Particularly valuable where a move to a serviced residence or a care home is in prospect.

2 — Bare-ownership sale with a reserved right of use and occupancy (DUH)

Under this structure the seller keeps only the right to live in the home personally. They may not let the property and therefore receive no rental income.

It is often chosen by people who want to stay in their home for the rest of their lives, obtain immediate capital, and simplify the management of their estate.