Can I sell my usufruct?
Selling one's usufruct is quite possible and it is very common, whether to the bare owner or to a third party. The sale of usufruct is often a way to earn money "quickly" but also to be able to turn the page after the painful death of a loved one.
One transfers the ownership of his property while retaining the usufruct on it. The main exception is the sale of usufruct to the bare owner. A clause in the deed of sale may provide for this particular case.
What is usufruct?
According to article 578 of the Civil Code: "Usufruct is the right to enjoy things owned by another, such as the owner himself, but at the expense of retaining their substance."
Thus, the usufructuary can freely dispose of the property and benefit from its fruits without having to share them with the bare owner who has a right of ownership. This is called a dismemberment of ownership between the bare owner and the usufructuary.
The dismemberment of ownership ends at the death of the usufruct, the bare owner thus recovers full ownership of the property.
It is possible for the usufructuary, as well as the bare owner, to sell their rights without needing the agreement of either of them.
What is a sale of property in usufruct?
The bare owner owns the property but cannot enjoy it. The usufructuary owns the enjoyment of the property until his death (he can live in the dwelling or use the rental) and must ensure its maintenance.
The sale of a property in usufruct implies the tacit agreement of both as explained in articles 578 to 624 of the Civil Code. The proceeds of the sale are divided according to the value of the bare ownership and that of the usufruct (determined according to the age of the usufructuary according to a scale set by the tax authorities Article 669 of the General Tax Code).
Usufruct concerns immovable property, movable property and securities portfolios.
How does the sale in usufruct work?
The bare owner and the usufructuary can sell their property by mutual agreement. They assign their respective rights at the same time, also called a simultaneous sale or joint assignment (in accordance with Article 621 of the Civil Code).
If the transferor is the usufructuary, he may sell his usufruct only with the prior agreement of the bare owner. In the event that the bare owner decides to sell his property, he must request the agreement of the usufructuary who then retains the usufruct of the property.
It is possible to temporarily assign one's right of usufruct, free of charge or against payment. However, it is mandatory to provide for a duration.
How does the sale of a property in usufruct work in the event of succession?
Upon the death of the usufructuary, the property in usufruct reverts to his surviving spouse (if the couple was married).
In the event that the couple was cohabiting or in a civil partnership, the surviving spouse cannot claim inheritance tax without testamentary dispositions. The situation of the surviving spouse will be determined by the relatives of the deceased (ascendants and descendants).
Where no testamentary disposition has been defined, inheritance tax is divided equally between the children and the surviving spouse (calculated on the basis of the value of the respective shares of the usufruct and the bare ownership).
If the couple had children in common, the surviving spouse has a period of 3 months to choose between full ownership of a quarter of the estate, or the entire usufruct.
The bare owners become full owners only on the death of the last surviving spouse. They will not have to pay inheritance tax.
What are the rights of the usufructuary and the bare owner?
In the context of a real estate sale, the bare owner is the purchaser of the property and holds the bare ownership. He is the owner of the property, but will not be able to enjoy it until the extinction of the usufruct.
The usufructuary is the seller of the property and has the right to use the property and collect its fruits. If the property is rented, the usufructuary receives the rents.
Thus, the two parties remain bound until the extinction of the usufruct. It therefore becomes difficult to sell the usufruct of your property.
What added value for the sale of a usufruct?
The real estate capital gain of a sale in usufruct is concluded by the difference between the sale price and the purchase price. It will depend on the age of the usufructuary and the duration of holding of the property, the usufruct can be temporary (fixed duration) or life annuity (it is extinguished on the death of its holder, the usufructuary).
- Selling one's usufruct is quite possible and it is very common, whether to the bare owner or to a third party.
- The sale of usufruct is often a way to earn money "quickly" but also to be able to turn the page after the painful death of a loved one.
- Usufruct is the right to enjoy things of which another has the property, as the owner himself, but at the expense of retaining their substance.
- The bare owner owns the property but cannot enjoy it. The usufructuary owns the enjoyment of the property until his death (he can live in the dwelling or use the rental) and must ensure its maintenance.
- It is possible to temporarily assign one's right of usufruct, free of charge or against payment. However, it is mandatory to provide for a duration.
- Upon the death of the usufructuary, the property in usufruct reverts to his surviving spouse (if the couple was married).
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to sell in Paris or its surroundings ?
Posted on 28/06/2023 by
Andy LECUYER
