What Is a Usufruct (Usufructo) and How It Affects a Purchase

A usufruct (usufructo) is a real right that allows one person, called the usufructuary (usufructuario), to use and enjoy property owned by someone else — including collecting rent where applicable — without being the formal owner, while legal title remains with another person, the bare owner (nudo propietario). It is a common scenario in inheritances and gifts, where parents keep the usufruct of a house while the children already appear as owners on paper. If you are about to buy a property, it is essential to know whether a usufruct is currently in force, because it can limit your ability to live in it or rent it out right away, even though you are the legal owner.

How a usufruct works in practice

A usufruct separates two things that normally go together: ownership and enjoyment of the property. The person who holds the bare ownership (nuda propiedad) is the legal owner of the property but cannot use it while the usufructuary is alive or for as long as the term agreed between the parties lasts; the person who holds the usufruct can live in the house or rent it out and keep that rent, but cannot sell it without the consent of the bare owner. This right can be established by a contract between private parties, by a will at the time of an inheritance, or by operation of law in certain specific cases, and it normally ends with the death of the usufructuary or when the term agreed between both parties to the transaction expires.

How it affects the property buyer

Buying a property with a usufruct in force means acquiring only the bare ownership, not full and immediate use of the property. This has important practical consequences worth weighing before closing any transaction:

• You will not be able to live in or rent out the property while the usufruct is in force
• The purchase price is usually considerably lower because of this limitation
• The deed (escritura) should be reviewed to confirm the exact term or condition for the usufruct to end
• Maintenance and certain expenses may fall on the usufructuary, depending on what was agreed
• When the usufruct ends, the owner automatically regains full use with no additional paperwork

Most common types of usufruct

Not all usufructs are the same in duration or origin. A lifetime usufruct (usufructo vitalicio) lasts as long as the usufructuary lives and is the most frequent in family inheritances, where one of the parents keeps the right to live in the house for life. A temporary usufruct, by contrast, is agreed for a fixed number of years and ends automatically when that period is up, regardless of whether the usufructuary is still alive. There is also the usufruct created by operation of law, which is less common and arises in specific situations provided for by each state's civil law, for example in certain cases of parental authority (patria potestad) over a minor's assets.

Frequently asked questions

Can I sell a house if I only hold the usufruct?

You can sell your usufruct right, but not the full property, since the bare ownership belongs to someone else who must take part in any sale of the property in full ownership.

When does a usufruct end?

It generally ends with the death of the usufructuary, when the agreed term expires, or by express renunciation, at which point the bare owner regains full use of the property.

Who pays the predial (property tax) on a property with a usufruct?

It usually depends on what the parties agreed, but commonly the usufructuary assumes maintenance costs and some taxes, since they are the one who receives the direct benefit of the property.