What Is Bare Ownership and How Can It Benefit You?

You may have heard the term "bare ownership" in conversations about real estate, but you may not be sure exactly what it means. It is a concept related to the form of ownership of a property, and it is becoming increasingly relevant as a solution for older people who want to secure money without leaving their home. In this article, we explain in simple terms what bare ownership is, how it works and what benefits it may have for you.

What do full ownership, bare ownership and usufruct mean?

To understand bare ownership, let us start with the basics: full ownership is when someone owns a property and has all rights over it, meaning the right to use it, exploit it (for example, rent it out) and dispose of it (sell or transfer it). Full ownership essentially includes two elements: usufruct and bare ownership.

• Usufruct: This is the right to use and exploit the property. The usufructuary may live in the property and/or receive income from it, such as rent, but cannot sell it without the consent of the bare owner.
• Bare ownership: This is the right to dispose of the property, but without the right to use it. The bare owner holds the title and may sell or transfer the bare ownership, but cannot use the property or exploit it, for example by renting it out, while another usufructuary exists. Put simply, the bare owner "owns the property on paper," while the usufructuary has residence and use.

When a property is under this status, we say that full ownership is split: one person or entity has the usufruct and another has the bare ownership. This distinction is common in family transfers. For example, many parents transfer the bare ownership of a home to their children while keeping the usufruct for themselves. The children secure the property early as future wealth, while the parents continue living in it undisturbed for life.

An important detail: Bare ownership automatically becomes full ownership when the usufruct ceases, usually upon the death of the usufructuary. At that point, the bare owner also acquires the rights of use and the property becomes entirely theirs.

How can selling bare ownership benefit you?

Now that the terms are clear, let us see how this relates to you. Why would an older person be interested in bare ownership? The main reason is that it offers an alternative financing solution. Specifically, you can sell the bare ownership of your property, for example to an organization or investor, and receive a significant amount of money while retaining the usufruct, meaning the right to live in your home for the rest of your life.

The benefits of such an action are multiple:

• Immediate financial support: You receive money now, at an age when you may need it most for medical expenses, care, quality-of-life improvements or simply to feel financially secure. It is like releasing the value of your home without parting with it.
• Remaining in your beloved environment: You do not need to move or change your way of life. You continue living in your familiar home and neighborhood, with all your ties and memories, while having a lifelong right of residence legally secured through a notarial deed.
• No worries about management or ownership taxes: Usually, when you sell bare ownership, many ownership burdens pass to the bare owner. Depending on the agreement, you may be relieved of certain obligations such as ENFIA property tax or major maintenance expenses, since you are no longer the owner on paper. This reduces stress around financial and bureaucratic obligations related to the property.
• Legal protection: All such agreements are made with full transparency before a notary. The contract for the sale of bare ownership will explicitly state that you retain the usufruct for life. You are therefore legally protected so that no one can remove you from your home. The new bare owner cannot sell or rent the property without your consent while you live there. This security is fundamental and makes the bare ownership solution reliable.

Comparing it with other solutions

You may wonder how selling bare ownership compares with other available options, such as a loan or a reverse mortgage. In a reverse mortgage, a product that was advertised but never progressed much in Greece, you mortgage your home to the bank and receive payments as a pension, while the home is repaid later, usually through its sale after your death. The difference is that in a reverse mortgage you deal with a bank or insurer and with debt, whereas in bare ownership you directly sell an ownership right and there is no loan or interest. It is a one-off agreement with clear rights for each party.

Another option is to sell your home fully and move to a smaller property or another area. But this involves leaving your home and changing environment, which many people do not want in older age. Bare ownership, by contrast, allows you to reduce your estate by receiving money, but without being uprooted.

What to watch out for

If you are seriously considering such a move, discuss it with your family. If you have children or heirs, it is good for them to understand your reasons. Usually, most children want their parents to live well and will support decisions that improve your quality of life.

In conclusion, bare ownership is an innovative solution that can benefit you if you need financial support but love your home and do not want to part with it. It is natural to have questions or doubts, but with proper information and legal guidance, it can offer an ideal balance between financial comfort and preserving your independence.