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Usufruct rights! The usufructuary has the right to enjoy property belonging to others and to receive the income therefrom. This right is always temporary, the bare owner holding full ownership of the asset upon expiry of the usufruct.
Bare ownership and usufruct
Full ownership is characterized by two notions: bare ownership, in the hands of the owner, and usufruct, in favor of the usufructuary. In the case of a building, the bare owner does not live in the property and it is the usufructuary who is authorized to dispose of it. This right is always temporary, the bare owner holding full ownership of the asset upon expiry of the usufruct. The usufruct can be conventional ( donation , sale, etc.) or inheritance.
Rights and powers
A usufruct can be the right to live in a building or to receive interest on a sum of money. In the case of real estate, the usufructuary has the right to live in or rent the property and to collect the rent. If this usufruct relates to a sum of money or shares, the usufructuary can manage it and has the right to collect the income generated (dividends and interest) as long as the bare owner recovers the same sum at the end of the usufruct.
Obligation
The usufructuary has the obligation to preserve and maintain the property, and to return it to the bare owner at the expiry of the usufruct. The usufructuary must draw up an inventory of what he receives in usufruct so that the bare owner can check that everything is in order at the time of restitution. If it is a building, the usufructuary pays the charges related to the enjoyment of the property, but it is up to the bare owner to take charge of major repairs.
Can the usufruct be terminated?
The usufruct ends on the death of the usufructuary or on the expiry of the duration of the usufruct if a term has been agreed. It is also possible to terminate the usufruct by renunciation of the usufructuary. The bare owner can choose to ask the judge for forfeiture of the usufruct for abuse of enjoyment if he considers, for example, that the property has not been properly maintained. At the end of the usufruct, the bare owner recovers his property without administrative formalities and without taxes.
DAMY Law Firm , Nice, Rights and obligations of the usufructuary, Update 2022.
