In the real estate world, we often hear about "Nuda Proprietà" (Bare Ownership) and "Usufrutto" (Usufruct). But what exactly do these terms mean, and why should you consider them if you are looking for an investment or want to manage your family assets effectively?
In this article, we clarify one of the most common and beneficial legal rights for both buyers and sellers.
What is Usufruct?
Usufruct (Usufrutto) is a legal right that allows a person (the Usufructuary) to enjoy a property they do not own, to live in it, or even to rent it out and collect the income. The only fundamental obligation is to respect the property's intended economic use: for example, one cannot arbitrarily convert a residence into an office.
In practice, when an usufruct is established on a house, the ownership is split into two roles:
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The Usufructuary: The person who has possession and actual use of the home.
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The Bare Owner (Nudo Proprietario): The person who holds the legal title and will become the full owner only when the usufruct ends.
How long does this right last?
By its nature, usufruct is temporary. The most common case is Life Usufruct (Vitalizio), which lasts until the death of the usufructuary. At that moment, the right expires, and the bare owner automatically reacquires full ownership of the property without having to pay additional sums or sign new deeds.
Who pays for what? The allocation of costs
One of the most frequent questions concerns how costs are shared between the two parties. Italian law defines a clear separation:
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The Usufructuary is responsible for: Ordinary maintenance (small repairs, painting, sudden breakdowns), utility bills, waste tax (TARI), and property tax (IMU).
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The Bare Owner is responsible for: Extraordinary maintenance expenses concerning the structure and stability of the building (roof replacement, reinforcement of floors, building facades).
Why is it beneficial? The main advantages
For the Seller (often seniors):
It is an excellent way to obtain immediate liquidity by selling the bare ownership while retaining the right to live in one’s home for life. It is the ideal solution for those who wish to have access to significant capital while staying in their familiar domestic environment.
For the Buyer (the investor):
Purchasing bare ownership means buying a property at a significant discount, calculated based on the age of the usufructuary. It is a forward-thinking investment: you acquire a property at a reduced price compared to market values, betting on the asset's appreciation over the medium-to-long term.
Expert Advice
Usufruct is a powerful tool but requires precise contracts and thorough technical checks, especially regarding the allocation of future expenses and the condition of the property. Relying on expert consultants is essential to correctly evaluate the value of the right based on updated ministerial tables.
Do you want a specific valuation for your property? Contact us to find out how much the bare ownership of your home is worth or to discover our current investment opportunities.
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