Index
A house on which a usufruct right is active can be sold, but not by anyone.
The naked owner can sell bare ownership, while the usufructuary cannot transfer the property, but you can transfer only the right of usufruct for the remaining duration.
In summary:
- The naked owner can sell the bare property, that is, the legal ownership of the property, but the usufruct remains with the usufructuary until its expiry or death;
- The usufructuary cannot sell the house, but may transfer the right of usufruct to third parties for the remaining period;
- Alla death of the usufructuary, the usufruct is extinguished automatically and bare ownership is consolidated, becoming full ownership;
- The value of the property is calculated by reducing the market price according to coefficients related to the usufructuary's age. The younger he is, the greater the burden of the usufruct and the lower the value of the bare property;
- The sale of bare ownership may involve tax advantages, such as taxes proportional to reduced value and, in some cases, exemption from capital gain.
Now let's look at all these aspects in detail, starting with a simple question:
Can you sell a house with usufruct?
Yes, it is possible to sell a house encumbered by usufruct, but it is necessary to distinguish carefully between bare property and the right of usufruct itself.
In practice, the owner who sold the usufruct maintains the possibility of transfer bare ownership of the property, that is, the ownership of the private home of the right of enjoyment.
The usufructuary, on the other hand, You can't sell the property, but you can renounce your right or transfer it separately, always within the limits allowed by law.
When it is decided to sell a house encumbered by usufruct, the buyer will acquire bare ownership and must wait for the end of the usufruct (which takes place at the expiry of the established deadline or at the death of the usufructuary) in order to fully enjoy the property.
This aspect directly affects the market value, because a house with usufruct is worth less than a property free from constraints.
Who can sell what?
In a building, bare ownership and the right of usufruct can coexist, which give different powers to those who own them.
Who owns the full ownership has complete disposal power, while those who hold only bare ownership or only the usufruct can sell only their right share.
Bare property
Bare ownership, as we said, represents ownership of the property without the right to use it or to feel its fruits.
In other words, whoever owns the bare property is the owner from a legal point of view, but can't live in the house or rent it for as long as the usufruct lasts.
The owner of the bare property can sell it at any time, but the buyer must respect the current usufruct.
Precisely for this reason, the value of is bare ownership lower than full ownership and is calculated based on the age of the usufructuary and the duration of the right of enjoyment.
[cta-casavo title="Do you want to know how much your house is worth?" text="It's free and immediate."]
Usufruct
Usufruct is a real right that allows to use the property and to make use of it, for example by renting it or living there personally.
The usufructuary does not own the house and then you can't sell it in its entirety, but you can assign or renounce your right of usufruct, transferring it to third parties for the remaining period.
In any case, at the expiry of the deadline established or at demise of the usufructuary, the right is automatically extinguished and returns to the sole owner.
Who buys a usufruct buys a temporary law, not the ownership of the asset.
What happens in the event of the death of the usufructuary?
When the usufructuary dies, the right of enjoyment is automatically extinguished and Bare ownership is consolidated with usufruct, returning to form full ownership in the hands of the naked owner.
This means that the property immediately becomes free from constraints and can be used, rented or sold without restrictions.
No notarial act is necessary for the termination of the usufruct, but for the sake of completeness it is appropriate Update the land registry and communicate the change to the Conservatory of Real Estate Registries.
The death of the usufructuary does not entail additional taxes or inheritance costs on the right itself, because the usufruct is a personal right that is not transmitted to heirs.
Full ownership
Whoever holds full ownership has the widest power: they can enjoy the property, rent it, sell it or donate it without any constraint.
Full ownership includes both bare ownership and usufruct, so there are no restrictions on the ability to dispose of the asset.
It is the simplest and most transparent situation from the point of view of buying and selling, because it does not involve competing rights of other parties: for this reason, a house in full ownership generally has a higher market value with respect to a property that is subject to a usufruct.
Example of a transfer with active usufruct
Imagine a 75-year-old homeowner who owns a house worth 300,000 euros.
Deciding to selling bare property instead of full ownership, he immediately collects a sum (in this case, about 60% of the total value, therefore 180,000 euros) but keeps the right to inhabit the building until the end of his life.
The buyer, on the other hand, Save on the purchase compared to the full price and will automatically obtain full ownership at the end of the usufruct.
From a tax point of view, choosing bare ownership has several advantages:
- registration, mortgage and cadastral taxes they are calculated on the reduced value (that of bare ownership) and not on the entire market price, resulting in immediate savings on transfer costs;
- if the house was used as a main residence for most of the time between purchase and sale, the transaction may be exempt from capital gain taxation, even if the sale price is higher than the original purchase price.
Value calculation and tax advantages
La bare property has a lower price because the buyer will be able to enjoy the property only when the usufruct expires or expires.
To determine the correct value, coefficients established periodically by the Revenue Agency apply, which take into account some factors:
- The age of the usufructuary at the time of sale;
- The expected duration of the right of usufruct;
- the market value of the property free from constraints.
Sales taxation
The sale of bare ownership is subject to the same tax rules as the sale of a property in full ownership.
If a capital gain is realized (i.e. if the sale price exceeds the revalued purchase price with any documented expenses) this is taxable For personal income tax purposes if the sale takes place within five years of purchase.
However, if the property has been used as a main residence most of the time, you don't pay capital gain taxes.
Indirect taxes (registry, mortgage and cadastral) are calculated on proportionate value of bare ownership, reduced according to the coefficients established by law.
This means that even the buyer will incur lower costs than buying full ownership.
The fees for selling a house vary depending on whether full ownership is transferred or only bare ownership, and depend on any capital gain realized.
Tax advantages
From a fiscal point of view, the The taxable value is lower, reducing the impact of registration and mortgage taxes.
In addition, if the sale concerns a house used as main house, it is possible to take advantage of the exemption from capital gain taxation, even when the sale takes place within five years of the purchase.
For this reason, the sale of bare ownership is often a convenient solution for those who want to plan their assets more flexibly, avoiding heavy tax burdens.
If the property has been the subject of work with the Superbonus, it is important, finally, to find out about the specific rules for selling a house after 110, verifying any reporting obligations or constraints on the deduction.
If you want to sell your home with the support of professionals, Casavo offers you a simple and transparent process, with a fixed commission at 1% (with exceptions). Unlike traditional agencies, which charge commissions between 2% and 4%, with Casavo you know the cost right away, without surprises.
[cta-casavo title="Are you selling a house? Fixed commissions of 1% with Casavo" text="Start with the valuation of your property: it's instant and free."]
Frequently Asked Questions
Can the usufruct be sold to third parties?
Yes, the usufructuary has the option of transferring their usufruct right to third parties for the remaining period. It should be emphasized, however, that Is usufruct a personal right and is automatically extinguished upon the death of the original usufructuary, even if transferred.
This means that whoever buys the usufruct does not become an unlimited owner, but keeps the right only until the natural expiry date linked to the life of the first usufructuary.
The Civil Code, in articles 979 and following, clearly states that “the usufruct cannot exceed the life of the usufructuary.”
In practice, if the usufruct is sold, the buyer may use the property or receive the fruits, but he will lose any right to death of the person who had constituted it.
How much is the usufruct worth?
The value of usufruct depends on the age of the usufructuary and is calculated by applying coefficients updated by the Revenue Agency.
In principle the younger the usufructuary, the greater the value of his right of enjoyment and the lower that of bare ownership.
To give a practical example: a 75-year usufructuary has less impact on the total value than a 55-year usufructuary.
This calculation not only serves to define the market price, but also to determine the tax base for registration taxes and any other taxes. When negotiating, it is always advisable to request a detailed estimate from a technician or a notary.
Can the buyer apply for a mortgage to buy only the bare property?
Yes, it's possible, but Not all banks grant mortgages for the purchase of bare property only.
In many cases, the credit institution evaluates this operation more carefully, because the house is not immediately available for use.
If the bank agrees to finance the purchase, the mortgage will be calculated in proportion to the value of bare ownership, which is lower than that of full ownership.
How do you get the usufruct out of a home?
It can be extinct for voluntary waiver of the usufructuary, to his demise or at the expiry of the deadline established. It is necessary to update the land registry and real estate records when one of the conditions mentioned above occurs.
[cta-casavo title="Overwhelmed by documents?" text="Breathe: one of our agents will guide you step by step."]