Bare ownership and usufruct: what is sold and what use is retained

What it means to sell the bare ownership and retain the usufruct

In a bare ownership and usufruct transaction, the property is not transferred “in full” in the same practical sense as in an ordinary sale and purchase. What is separated is the ownership right into two levels: on the one hand, the **bare ownership**, which is the legal title to the asset; on the other, the **usufruct**, which allows the property to be used and enjoyed with the duty to preserve its form and substance, unless the deed or the law provides otherwise. This is set out in Article 467 of the Civil Code in the consolidated text of the BOE: article 467 of the Civil Code.

For you, the key idea is straightforward:

1. **If you sell the bare ownership**, you transfer the limited ownership title.

2. **If you retain the usufruct**, you keep the right to use and enjoy it on the terms agreed or provided by law.

3. **If you buy the bare ownership**, you acquire future ownership, but not immediate use if the usufruct is still in force.

This distinction avoids common misunderstandings: the buyer cannot always move in, occupy or exploit the property from day one; and the seller does not always immediately lose the ability to live there or receive the benefits, if the usufruct has been properly reserved.

What use is retained by the person reserving the usufruct

The usufruct is not the same as full ownership, but it does confer real and significant rights. Article 467 of the Civil Code states that usufruct gives the right to enjoy someone else’s assets with the obligation to preserve their form and substance. In practice, this means that the usufructuary retains use in accordance with the scope of their right, although they cannot act as if they were the full owner in every respect.

In general, the person retaining the usufruct will usually keep:

1. **Use of the property**, if this is agreed and there is no specific limitation.

2. **Enjoyment of income or fruits**, where the nature of the asset or use allows it.

3. **Occupation compatible with the preservation of the property**.

That said, this right should not be confused with absolute freedom. The Civil Code itself states that the usufructuary must respect the form and substance of the asset, unless the deed establishing the right or the law provides otherwise. In addition, Article 470 provides that the rights and obligations of the usufructuary shall be those determined by the deed establishing the right; only if this is insufficient will the supplementary rules apply.

### What should be set out in writing

If you sell or buy bare ownership with reservation of usufruct, make it clear:

- whether the usufructuary may live in the property;

- whether they may let it or assign it, if that is to be allowed;

- who bears ordinary expenses;

- which acts require the other party’s consent;

- when the usufruct ends or how its termination will be evidenced.

The more precise the deed is, the less room there will be for later disputes.

What is actually sold in bare ownership

Bare ownership is ownership of the property without the current right to use it. The buyer does not, on their own, acquire immediate use if usufruct still exists. What they do acquire is a very important legal position: when the usufruct ends, full ownership will be consolidated in their assets without needing to buy the property again.

This is connected with Article 513 of the Civil Code, which lists the causes of termination of usufruct, including the death of the usufructuary, the expiry of the agreed term or the merger of usufruct and ownership in the same person. Bare ownership is therefore a deferred acquisition in terms of enjoyment, but a real one from the point of view of ownership.

### Common mistakes when interpreting what is being bought

1. **Thinking that buying bare ownership gives the right to occupy the property immediately**. That is not always the case.

2. **Assuming the usufructuary can do anything**. Nor is that true: they must preserve the asset and respect the content of the deed.

3. **Failing to review the deed establishing the usufruct**. This is the document that sets the true extent of rights and obligations.

4. **Confusing the legal situation with a simple commercial formula**. It is not; it has real consequences for use, administration and termination.

What to check before signing a sale with usufruct

Before completing a transaction like this, the priority is not the price, but the legal fit of the right being transferred. The Comunidad de Madrid reminds, in its sale and purchase guide, of the usefulness of checking the legal status of the property by means of a land registry extract and reviewing charges and ownership, as well as the financial situation regarding IBI and the owners’ association. The same guide explains that the land registry extract makes it possible to find out whether the seller is truly the owner and whether there are charges or mortgages relevant to the transaction: Compraventa de viviendas.

Practical steps to review the transaction:

1. **Read the deed establishing the usufruct carefully**.

2. **Check whether it is for life, for a fixed term or subject to a condition**.

3. **Verify whether the use includes only residence or also other forms of enjoyment**.

4. **Check who must pay for ordinary repairs and maintenance**.

5. **Clarify what happens if the usufructuary wants to stop using the property or if it needs to be let**.

6. **Require the transfer to be fully described in the deed**.

### Practical tip

If you are the seller and you reserve the usufruct, leave no ambiguity about your right to remain in the property. If you are buying the bare ownership, do not assume that you will be able to use the flat as if it were empty. The difference between the two rights should be reflected from the very first draft.

Allocation of maintenance and limits on use

The usufruct does not only grant enjoyment: it also imposes duties. Article 500 of the Civil Code provides that the usufructuary is obliged to carry out the ordinary repairs necessary for the preservation of the asset given in usufruct. This is important because, in a sale with reservation of usufruct, the legal relationship between owner and user requires clear arrangements on who is responsible for each action.

In general terms:

- the usufructuary retains use, but must take care of the property;

- the bare owner retains title and the expectation of future consolidation;

- the deed may allocate obligations differently, within the legal limits.

It is not advisable to improvise on this point. If the property deteriorates or a dispute arises over works, the solution will usually depend first on what has been agreed and only afterwards on the supplementary rules of the Civil Code.

When this formula may be of interest

The sale of bare ownership with reservation of usufruct may be attractive when the owner wishes to unlock value from the property without giving up current use of the home. It may also be suitable if the transaction forms part of estate or family planning. But this guide does not replace individual advice: the validity and scope of the agreement depend on the deed, the specific circumstances of the property and how the deed is drafted.

If you would like to value a property to assess a possible transfer, you can use UBICASA’s tool at /valoracion-vivienda-madrid. It is an indicative online estimate, not an official valuation; it provides a range and a PDF report, with an optional visit if you request it.

If you would rather discuss your case before deciding, you can write to us at /contacto. The UBICASA office is at Calle Montesa 29, Madrid, with opening hours Monday to Friday from 10:00 to 15:00 and from 16:00 to 19:00.

In short: in bare ownership, the title is sold; in usufruct, use and enjoyment are retained to the agreed or legally established extent. The key is not to mix the two levels and to set out in writing, precisely, what is transferred and what is kept.