Bare Ownership
Ownership right of a property without the right to enjoy it or receive its income, held by the buyer in an occupied life annuity.
Full definition
Bare ownership is the ownership right of a property from which the usufruct or the right of use and habitation has been detached. The bare owner owns the property but can neither live in it nor receive its income as long as the occupancy right exists.
In an occupied life annuity, the buyer (annuity debtor) becomes the bare owner as soon as the deed is signed. They will only be able to fully use the property when the seller's occupancy right ends (death or relinquishment of the right). This is what explains the discount on the purchase price.
The bare owner assumes certain charges such as major repairs (roof, structure, façade) and property tax. In return, they benefit from acquiring a property at a reduced price and from an exemption from the IFI (Real Estate Wealth Tax) in France, the property being declared by the usufructuary.
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Related terms
Usufruct
Right to use a property and receive its income (rents) without owning it, more extensive than the right of use and habitation.
DUH (Right of Use and Habitation)
Right allowing the seller to personally occupy the home sold via life annuity until their death, without being able to let it.
Occupied Life Annuity
Sale via life annuity where the seller retains the right to live in the property (right of use and habitation or usufruct) until their death.
Annuity Debtor (Buyer)
The buyer of the property under a life annuity, the person who pays the bouquet and the life annuity to the seller.
Dismemberment of Ownership
Legal division of ownership between usufruct (right of use and income) and bare ownership (ownership without enjoyment).
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