Do you know the term "Nuda propiedad"? Let us explain it, along with the pros and cons

Bare ownership is the right that an owner has over a certain asset once possession has been ceded through the constitution or reservation of a right of usufruct.

This term can also be applied to a type of sale, which allows the owner to sell his home and continue living in it until his death.

Do you know what are the pros and cons of bare ownership?

We begin by telling you those that affect the buyer:
• You must be very clear that it is a medium-long term investment, since you will not have full rights to the home until the death of the former owner, who has become the usufructuary of the sold home.
• Regarding the costs, the buyer assumes the expenses of the notary, registry and derived taxes and will also assume all these expenses once the usufruct is extinguished. The maintenance costs are normally borne by the buyer, as well as the IBI and community fees and other extraordinary expenses that arise.
• The only right that the owner has is that, if he needs liquidity, he could sell his bare property, always respecting the usufruct. But of course, there are also other pros and cons that affect the home seller himself.
• The main drawbacks are that the family home is lost and what they receive for it will be an amount of money that is calculated based on their age and life expectancy: the higher the life expectancy, the lower the sales price.
• The seller must also liquidate the municipal capital gains for the theoretical increase in value from the moment of the initial acquisition.
• And although this °loci& allows the bare ownership of the home to be sold, but to continue living in it, it no longer belongs to the seller who now becomes usufructuary, so if he planned to leave it as an inheritance to a relative, it would no longer be possible.
• As an advantage, it should be noted that if the usufructuary does not wish to continue living in the home or for health reasons has to enter a hospital or residence, he could rent it without permission from the bare owner and the rent would be entirely in favor of the usufructuary.

If you need more information about it, do not hesitate to contact us, at Remax Estrella we will always be happy to help you with real estate issues that arise.