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Do you know what naked property is in Spain?

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You may have heard about a new formula for selling a house and getting extra money in recent years. It is an option designed for seniors. It is called naked property and is a formula that allows owners to sell a home, receive money in return and continue to reside in it for life.

This is also advantageous for buyers since this allows them to acquire a property below the market price. In recent months, the percentage of owners who have opted for naked property has experienced unprecedented growth in Spain. According to data from the Real Estate Experts Network and the Real Estate Training Institute (IFEM), in 2017 the number of naked property operations increased by 150%, but in the first quarter of 2018, the increase was up to 300%, It indicates that more and more people are choosing to join this formula.

As we have said, naked property consists of the property of a good but without having the use and enjoyment of it.

The owner is the owner of that right. He is the "owner" of the good, but his faculties over it are very limited, as we shall see later.

Currently, the owner of a home sells the naked property and the usufruct is reserved.

The people who opt for this solution are usually older people who do not have heirs or need financial resources.

In this way, they ensure the use of housing, generally for life (throughout their life), and receive financial compensation.

What are the differences between naked property and usufruct?

The naked property and the usufruct are different rights and, therefore, the following differences can be established:

  • The owner knot is the owner but does not have the use and enjoyment.
  • The usufructuary has the use and enjoyment but not the property.
  • The owner knot can only enjoy the house when the usufruct ends (death of the usufructuary, generally).
  • The usufructuary may enjoy the home while his right lasts.
  • The owner can not rent the house, but can sell the naked property to a third party.
  • The usufructuary can rent the house and obtain an income. You can also sell the usufruct to a third party.
  • In short, although the owner is the owner, he has practically nothing. Therefore, it is said that naked property is naked property.

When does the owner acquire the use and enjoyment?

The full control over an usufructuated farm is consolidated when the property and the use and enjoyment meet in the same person.

That is, when the naked property and the usufruct meet in one person.

The consolidation of full ownership will occur in the person of the owner by sale of the usufruct or by termination of the usufruct.

  • Sale of the usufruct

In case the usufructuary decides to sell his right of usufruct, the most usual thing is to sell it to the owner.

From this acquisition of the usufruct, the owner knot acquires full ownership (ownership and use and enjoyment).

  • Extinction of the usufruct

Are causes of extinction of the usufruct, among others:

  • Death of the usufructuary

When the usufructuary dies, the enjoyment, use and enjoyment of the usufruct property pass to the owner.

If the usufruct corresponds to several people in proindiviso, the owner does not receive full ownership until the death of all usufructuaries.

  • Compliance with the term by which it was constituted

In the case of the death of the usufructuary before the stipulated term, the use of the usufruct shall also be transferred to the owner, unless otherwise agreed.

  • Compliance with the resolutory condition established in the usufruct pact

If the usufruct is attributed until the owner knot marries, for example, after marrying, he will receive full ownership. unless otherwise agreed.

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2 thoughts on “Do you know what naked property is in Spain?

  1. Carol and Keith Algar

    Please could you send more information on Naked Property, We live in the Tenerife north La Guancha, and have an adosada,we are retired and do not have relatives to leave our home too, we are looking for some form of equity release, or as your article mentions someone who will but and let us remain living here for the rest of our lives, there is not a mortgage on our home.

  2. Helen Wilkins

    Hi Carol,

    I see this article is from 2019 so presume you are no longer looking for the naked property option? I'm looking for an investment (I am not an agent, just an average woman 🙂 ) If you are still looking, i'd be interested in talking to you.

    Many thanks



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