Split ownership: usufruct and bare ownership

Split ownership divides a property right into usufruct and bare ownership.

Usufruct + Bare ownership = Full ownership

Usufruct

Under the French Civil Code, usufruct is the right to enjoy things owned by another, like the owner, but with the duty to preserve their substance. The usufructuary has the right to use the property (usus) and to receive its income (fructus). The usufructuary therefore cannot pass on or sell the property over which they hold the usufruct. As a rule, this right is for life, that is it ends on the beneficiary’s death. The bare owner then recovers full ownership of the property.

Note that a usufruct can also be granted for a limited period.

Bare ownership

This is the counterpart of usufruct. The bare owner owns the walls but cannot use or enjoy them. They can neither live in the property nor receive its income or produce (rent, for example).

Split ownership is common in inheritance and gifts: as a rule, the bare ownership is transferred to the children. When the parents die, the children hold full ownership of the property, having paid duties according to the percentage applicable to the usufructuary’s age (see the inheritance scale).

How are the costs shared?

The general rule is that the usufructuary bears only maintenance repairs and the bare owner major repairs, unless these result from maintenance neglected by the usufructuary. The Civil Code defines major repairs as those to main walls and vaults, the replacement of beams and of entire roofs. If the bare owner’s failure to pay prevents the usufructuary from enjoying the property normally, the usufructuary may claim damages for the loss suffered.

Note: the parties may agree to share the costs between usufructuary and bare owner differently.