Bare ownership is a real estate sale modality in which you transfer the legal title of your home but retain lifetime usufruct. This means you can continue living in your house for the rest of your life, enjoying your home just as you always have.

By selling the bare ownership, you receive immediate capital that you can use according to your needs: supplement your retirement, take that trip you’ve always wanted, cover medical expenses, or help your family—all without giving up the place where you’ve built your memories and your life.

Difference between bare ownership and reverse mortgage

In addition to understanding what bare ownership is, it’s important to distinguish it from other financial instruments like a reverse mortgage. Although both allow you to obtain liquidity from your home, they function differently.

• Bare Ownership: When you sell the bare ownership, you transfer the title of your home to the buyer but retain lifetime usufruct. This allows you to continue living in your home for the rest of your life. Upon your passing, the buyer acquires full ownership of the property.
• Reverse Mortgage: This is a mortgage loan aimed at people over 65 years old. It allows you to receive a monthly income or a lump sum, using your home as collateral. With a reverse mortgage, you retain both ownership and usufruct of the property but generate a debt that must be settled by your heirs.