La nuda proprietà: cos'è e come funziona

Those who intend to buy a new home and have found themselves navigating through home sale advertisements have sometimes noticed that some advertisements have as their object the sale of the property. “bare ownership” of real estate.

But what does it consist of and above all what does it mean to purchase, not the property, but the bare ownership of a home?

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What is bare ownership?

Bare ownership is the value of the property minus the usufruct. So in simple words, selling bare ownership means selling your property, but keeping the right to live there for your whole life.

In particular. the concept of bare ownership is closely linked to that of usufruct of real estate, i.e. that real right of enjoyment which allows a person, known as usufructuary, to be given the right to enjoy the home which, however, remains the property of another person.

The right of ownership, although coexisting with the usufruct, is greatly reduced because many prerogatives belong to the usufructuary alone: ​​he has a direct relationship with the asset, not mediated, and can enjoy it fully, which means obtaining possession of it, using it and deriving from it every utility that can be provided to him (civil and natural fruits).

Furthermore, the usufructuary is bound to respect the economic destination of the asset which cannot be modified.

Since the owner no longer exercises any right of enjoyment over the property, he is therefore defined as a "naked owner". The concept of bare ownership, therefore, is used to refer to the property right emptied of part of its content, i.e. the actual enjoyment of the asset which belongs to the usufructuary.

This is not an indefinite restriction since the legislator has clarified that the usufruct must have a fixed duration (life or fixed term). As a rule, the bare owner will regain possession of his right, in its entirety (so-called full ownership), upon the death of the usufructuary or upon the expiry of the terms set out in the contract, or in all other cases of extinction of the right.

What are the advantages of bare ownership for those who sell?

Whoever sells bare ownership of the property reserves the right to live and enjoy the property for life, immediately collecting capital which can help him live better, in peace, or help his children buy a house and/or start a business.

And who is buying for?

Who buys bare ownership buy a property today, at a discounted price, based on the age of the usufructuary. During the period in which the usufructuary remains in the house, the bare ownership is revalued both thanks to the increase in the market value of the property and thanks to the advancement of the usufructary's age.

Who is the usufructuary?

The usufructuary is who, once bare ownership of a property has been transferred, has the right to enjoy its use for life or within a period specified in the contract phase. The usufructuary can be a single person or two spouses. If he wants, the usufructuary can also rent the property or sell the usufruct to third parties within the limits of the terms set out in the contract for the sale of bare ownership. Possibly, the usufruct is transferable to third parties always within the limits established in the contract for the sale of bare ownership, or in agreement with the bare owner post-contract.

Who is the bare owner?

The bare owner is someone who has the right of ownership over a property, but not the right to enjoy its use. The bare owner has the right to transfer the bare ownership of the property to third parties at any time, being able to make a profit if necessary because the property may have appreciated, and at the same time, once the time has elapsed, the age of the usufructuary will be increased.

Can bare ownership of a second home or a rented house also be sold?

Yes, all benefits remain the same. If the house is rented, the usufructuary will continue to receive rent.

How is the selling price calculated?

Starting from one professional appraisal of the market value of the property written by professionals, a coefficient is applied according to the age of the usufructuary (inhabitant/s) of the house. These coefficients are drawn up periodically by the Ministry of Finance and are based on statistical life expectancies in Italy.

Who pays the expenses? 

The operation of purchasing bare ownership could also be advantageous from a tax point of view, by virtue of the ways in which the expenses are divided. Ordinary maintenance, Indeed, belongs to the usufructuary, who must keep the property in good condition without damaging or modifying it; the bare owner, however, will only be required to pay the "extraordinary" expenses and those of the taxes foreseen for bare ownership.

Instead, it will always be the usufructuary, i.e. the person who enjoys the material availability of the property, who will take care of the payment of all the "annual charges" related to the possession of the asset, including the payment of taxes, duties, fees and so on (for example IMU, TASI, IRPEF and waste tax).