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Selling your house and staying in it: how bare ownership with life usufruct works in Argentina - Ambito Financiero
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www.ambito.com
September 19, 2025
By Jose Luis Cieri
The model is growing in Europe as a financial alternative for older adults. What do specialists think about its application in the country? What's worth knowing?
Senior citizens with their son at the signing of the deed that allows them to sell the bare ownership and retain the life usufruct. Pexels
In Europe , the bare ownership system with life usufruct has been in place for decades and has become an increasingly popular financial tool for older adults seeking cash without losing their homes. The French experience, known as viager , exists alongside variations in Spain and Italy. The central idea is simple: the owner sells the property but retains the right to use and live in it until the end of their life .
In France, the most common option is to combine an initial payment with a monthly life annuity. In Spain, however, a lump sum payment is the most common. Buyer discounts range from 30% to 60% of the market value depending on the age of the usufructuary. A home valued at $150,000 can sell for between $70,000 and $90,000 if the owner is over 80 years old, as the usufruct period is presumed to be shorter.
The president of the Argentine Chamber of Real Estate Service Companies (CAMESI), Mariano García Malbrán , stated that this is a promising option. “It's a tool with great potential for a growing segment: older homeowners who need cash without moving. In Europe, it's a mature market; in Argentina, there's a lack of awareness and legal certainty. But over time, it could become an attractive option for investors and those looking to transform their property into a better quality of life,” he stated.
Experts agree that there's no need to invent a new concept, but rather to establish clear rules for its application. A specific legal framework could unify registration criteria across all jurisdictions and allow the transfer of bare ownership and the reservation of life usufruct to be registered in a single deed. This would reduce uncertainty and litigation. It is also proposed that guarantee clauses be included when periodic payments are involved, such as security mortgages in favor of the usufructuary or registrable termination conditions in the event of default.
Enrique Abatti Jr. , a lawyer specializing in corporate law and a member of the Chamber of Property Owners of the Argentine Republic (CAPRA), emphasized that this option is contemplated in current legislation. "The most common option is donations with reservation of usufruct, where parents transfer a property to their children and retain the right of use. But there are also sales with reservation of usufruct, which frequently occur among elderly people without children. The value of the bare ownership depends on the life expectancy of the usufructuary. A 50-year-old seller, with several decades ahead of them, is not the same as someone 85, where full possession will return to the buyer in a few years," he explained.
Lucía Otegui , a real estate law specialist, reinforced the legal validity of this option. "If the parties agree, they can use this option because the Code provides for it. In practice, it results in a split ownership: one party acquires the bare ownership, while the other retains the usufruct. It's less well-known than donation, but it's attractive because it offers security and flexibility for those seeking liquidity without losing their home," she explained.
Bare ownership with life usufruct is gaining ground as an alternative to obtaining liquidity without leaving the home.
The main obstacle seems to be cultural. In Argentine society, there is a persistent strong appreciation for inheritance. Many families associate a good legacy with keeping the property intact for their children, which reduces the acceptance of alternatives that involve selling it during their lifetime. Added to this is a lack of trust in legal security and fear of future litigation. “There is a cultural attachment to real estate as a family asset and a rejection of the idea of parting with the home during their lifetime. But economic pressure and the need for liquidity may begin to change that perception,” said García Malbrán.
To overcome resistance, specialists suggest asset education campaigns and pilot projects with institutional support, such as municipal or social security programs. Another option is to design family plans that include heirs in the negotiation, with preemptive rights or the allocation of part of the price to a trust. The goal is to build trust and prevent the transaction from being perceived as detrimental to the children.
Implementation in Argentina would require financial support: escrow accounts for travel rentals with traceability or surety bonds to guarantee payments. In France, these mechanisms were key to building trust.
Tax incentives are also being considered: tax exemption for single-family homes, income tax relief, and the ability to depreciate improvements. Investment funds with clear valuation rules could even be included.
Both specialists agreed that everything should be clearly stated in the deed, with clear rules defining which party will be responsible for each expense. This, they emphasized, reduces the chances of litigation or subsequent claims.
For her part, Bibiana Guijarro Varela added that even maintenance and improvements can be covered by the bare owner, especially when the usufructuary is elderly. "Many buyers prefer to take care of the maintenance to preserve the property's value. They know they'll own the property soon, and it's in their best interest to receive it in good condition so they can rent it out or sell it at a better price," she noted.
At the market level, analysts emphasize that Argentina has the conditions for this sector to develop. The population over 65 exceeds 12%, mortgage loans are scarce, and many older adults own valuable homes but have low incomes. This combination opens the door for liquid investors to find long-term opportunities.
Otegui maintained that the procedure can be tailored to different needs. He emphasized: “Life usufructs can include clauses to increase the rent in the event the usufructuary moves to a nursing home, or allow the usufructuary to relinquish the use of the property in exchange for an additional payment. These are flexible contracts that can be adapted to each family situation.”
García Malbrán noted that, with clear rules and guarantees, bare ownership can become a viable market. “Older adults need liquidity, and investors are looking for safe assets; the challenge is to bridge these gaps with transparency,” he concluded.
www.buysellba.com
Source:
Vender la casa y seguir en ella: cómo funciona la nuda propiedad con usufructo vitalicio en Argentina
El modelo crece en Europa como alternativa financiera para adultos mayores. Qué opinan especialistas sobre su aplicación en el país, qué conviene saber.
www.ambito.com
September 19, 2025
By Jose Luis Cieri
The model is growing in Europe as a financial alternative for older adults. What do specialists think about its application in the country? What's worth knowing?
Senior citizens with their son at the signing of the deed that allows them to sell the bare ownership and retain the life usufruct. Pexels
In Europe , the bare ownership system with life usufruct has been in place for decades and has become an increasingly popular financial tool for older adults seeking cash without losing their homes. The French experience, known as viager , exists alongside variations in Spain and Italy. The central idea is simple: the owner sells the property but retains the right to use and live in it until the end of their life .
In France, the most common option is to combine an initial payment with a monthly life annuity. In Spain, however, a lump sum payment is the most common. Buyer discounts range from 30% to 60% of the market value depending on the age of the usufructuary. A home valued at $150,000 can sell for between $70,000 and $90,000 if the owner is over 80 years old, as the usufruct period is presumed to be shorter.
Beyond Europe, the question is how this model could work in Argentina . There are legal precedents in Argentina that allow for its implementation, but the concept has not become widespread. The Civil and Commercial Code recognizes both bare ownership and life usufruct and life annuities. Until now, the most common donations have been those made with reservation of usufruct , which parents make to their children to organize inheritances and avoid probate proceedings. However, sales with reservation of usufruct are rarely practiced in specific cases, especially among elderly people without children.The president of the Argentine Chamber of Real Estate Service Companies (CAMESI), Mariano García Malbrán , stated that this is a promising option. “It's a tool with great potential for a growing segment: older homeowners who need cash without moving. In Europe, it's a mature market; in Argentina, there's a lack of awareness and legal certainty. But over time, it could become an attractive option for investors and those looking to transform their property into a better quality of life,” he stated.
Experts agree that there's no need to invent a new concept, but rather to establish clear rules for its application. A specific legal framework could unify registration criteria across all jurisdictions and allow the transfer of bare ownership and the reservation of life usufruct to be registered in a single deed. This would reduce uncertainty and litigation. It is also proposed that guarantee clauses be included when periodic payments are involved, such as security mortgages in favor of the usufructuary or registrable termination conditions in the event of default.
Enrique Abatti Jr. , a lawyer specializing in corporate law and a member of the Chamber of Property Owners of the Argentine Republic (CAPRA), emphasized that this option is contemplated in current legislation. "The most common option is donations with reservation of usufruct, where parents transfer a property to their children and retain the right of use. But there are also sales with reservation of usufruct, which frequently occur among elderly people without children. The value of the bare ownership depends on the life expectancy of the usufructuary. A 50-year-old seller, with several decades ahead of them, is not the same as someone 85, where full possession will return to the buyer in a few years," he explained.
Also in other areas
Attorney Bibiana Guijarro Varela , also a CAPRA member, pointed out that this modality can be applied not only to homes, but also to commercial premises, existing businesses, or fields. She noted: “Usufruct allows the owner to continue using the property or even rent it out, while the buyer obtains full ownership in the future. It is common for older couples to also reserve the right of accretion, so that if one dies, the other retains full usufruct. The Civil and Commercial Code regulates these situations in more than twenty articles.”Lucía Otegui , a real estate law specialist, reinforced the legal validity of this option. "If the parties agree, they can use this option because the Code provides for it. In practice, it results in a split ownership: one party acquires the bare ownership, while the other retains the usufruct. It's less well-known than donation, but it's attractive because it offers security and flexibility for those seeking liquidity without losing their home," she explained.
Bare ownership with life usufruct is gaining ground as an alternative to obtaining liquidity without leaving the home.
The main obstacle seems to be cultural. In Argentine society, there is a persistent strong appreciation for inheritance. Many families associate a good legacy with keeping the property intact for their children, which reduces the acceptance of alternatives that involve selling it during their lifetime. Added to this is a lack of trust in legal security and fear of future litigation. “There is a cultural attachment to real estate as a family asset and a rejection of the idea of parting with the home during their lifetime. But economic pressure and the need for liquidity may begin to change that perception,” said García Malbrán.
To overcome resistance, specialists suggest asset education campaigns and pilot projects with institutional support, such as municipal or social security programs. Another option is to design family plans that include heirs in the negotiation, with preemptive rights or the allocation of part of the price to a trust. The goal is to build trust and prevent the transaction from being perceived as detrimental to the children.
Implementation in Argentina would require financial support: escrow accounts for travel rentals with traceability or surety bonds to guarantee payments. In France, these mechanisms were key to building trust.
Tax incentives are also being considered: tax exemption for single-family homes, income tax relief, and the ability to depreciate improvements. Investment funds with clear valuation rules could even be included.
Who pays the costs and how is it resolved in practice?
Abatti Jr. explained that, in a sale with reservation of usufruct, minor expenses such as ABL, ordinary expenses, or basic services are usually the responsibility of the usufructuary. However, he clarified that in some cases the buyer of the bare ownership decides to assume these costs to avoid future conflicts or accumulated debts. "The transaction price may be lower, but the buyer ensures that no expenses remain unpaid and that, when the full ownership is consolidated, no significant debt arises," he indicated.Both specialists agreed that everything should be clearly stated in the deed, with clear rules defining which party will be responsible for each expense. This, they emphasized, reduces the chances of litigation or subsequent claims.
For her part, Bibiana Guijarro Varela added that even maintenance and improvements can be covered by the bare owner, especially when the usufructuary is elderly. "Many buyers prefer to take care of the maintenance to preserve the property's value. They know they'll own the property soon, and it's in their best interest to receive it in good condition so they can rent it out or sell it at a better price," she noted.
At the market level, analysts emphasize that Argentina has the conditions for this sector to develop. The population over 65 exceeds 12%, mortgage loans are scarce, and many older adults own valuable homes but have low incomes. This combination opens the door for liquid investors to find long-term opportunities.
Otegui maintained that the procedure can be tailored to different needs. He emphasized: “Life usufructs can include clauses to increase the rent in the event the usufructuary moves to a nursing home, or allow the usufructuary to relinquish the use of the property in exchange for an additional payment. These are flexible contracts that can be adapted to each family situation.”
García Malbrán noted that, with clear rules and guarantees, bare ownership can become a viable market. “Older adults need liquidity, and investors are looking for safe assets; the challenge is to bridge these gaps with transparency,” he concluded.
www.buysellba.com
