Ownership & RightsBare Ownership
Synonyms: Naked ownership، Nue-propriété، Remainder interest
Last updated: 2026-09-25
Short Definition
Bare ownership is ownership of real estate stripped of the right to use it: the owner keeps the property's substance and the power to sell, mortgage or gift it, while a usufructuary uses and exploits it until the usufruct ends and full ownership reunites.
Overview
Bare ownership is ownership of real estate stripped of the right to use it: the owner keeps the property's substance and the power to sell, mortgage or gift it, while a usufructuary uses and exploits it until the usufruct ends and full ownership reunites.
The Civil Transactions Law does not use the term 'bare ownership' expressly, but the concept follows from the usufruct provisions in Articles 679–693, which separate owner and usufructuary. The owner bears extraordinary expenses and major repairs not caused by the usufructuary's fault, without being obliged to carry them out during the usufruct (Art. 684); he may object to any unlawful use or use inconsistent with the property's nature and demand security, and the court may end the usufruct if the risk is serious (Art. 683). Article 612 provides that where a third-party right attaches to property, the owner may not dispose of it harmfully without the right-holder's consent; the bare owner may therefore sell or mortgage the property, but it passes burdened by the usufruct. Full ownership is restored when the usufruct term expires, on the usufructuary's death if no term was set, or when both capacities merge in one person (Arts. 689–690).
In practice bare ownership arises in family arrangements where an owner keeps a lifetime right of habitation or usufruct and transfers the bare title to someone else, and in some investment transactions. A key caution is Article 648: a disposition to an heir in which the disposer retains possession and use for life is deemed to take effect after death and is governed by the rules on wills unless proven otherwise. The market value of bare ownership is also usually lower than that of full ownership, reflecting the remaining term of the usufruct, which accredited valuers take into account.
⚖️ Legal Basis
The rules on bare ownership derive from the Civil Transactions Law (Royal Decree M/191 dated 29/11/1444H): Article 608 on the content of ownership; Article 612 restricting the owner's dispositions where a third-party right attaches to the property; Articles 679–693 on usufruct, its termination and the return of use to the owner; and Article 648 on dispositions to an heir with a reserved lifetime usufruct. In areas announced for registration, the usufruct and other rights burdening the bare title are recorded in the Real Estate Registry under Articles 13 and 14 of the Law of Real Estate Registration (Royal Decree M/91 dated 19/9/1443H).
💡 Practical Example
Saad, aged 68, sells the bare ownership of his villa in Al Khobar to an investor who is not his heir for SAR 1,300,000, retaining a documented ten-year right of usufruct and habitation recorded in the Real Estate Registry, while the full-ownership value is estimated at about SAR 2,000,000. Saad continues to live there and bears ordinary maintenance, while the investor, as bare owner, bears major repairs. After ten years the use reunites with the bare title and the investor holds full ownership. Had the transferee been Saad's son with Saad retaining the usufruct for life, the transaction would have been treated as a will under Article 648.
⚠️ Common Mistakes
- ✗Transferring bare title to an heir while keeping a lifetime usufruct in the belief that it is a completed gift; Article 648 treats it as a will.
- ✗Buying bare ownership without checking the remaining usufruct term and conditions recorded in the registry.
- ✗Valuing bare ownership at full-ownership value without discounting for the remaining usufruct term.
- ✗The bare owner taking action that harms or obstructs the usufructuary's right, which Article 612 prohibits without the usufructuary's consent.
- ✗Not documenting in the founding instrument how expenses and major repairs are shared between owner and usufructuary.
🌍 International Differences
Bare ownership (nue-propriété) is common in France and other civil-law countries and is often used in family planning by separating bare title from usufruct. Egypt's Civil Code likewise recognises the split between owner and usufructuary. In Turkey the usufruct is registered in the tapu and the owner retains 'çıplak mülkiyet'. The common-law counterpart is the remainder interest following a life estate.
FAQs
What does bare ownership mean?▾
It is ownership of the substance of a property without the right to use it, which another person enjoys for a set term or for life. When the usufruct ends, use reunites with the title and the owner becomes a full owner.
Can a bare owner sell the property?▾
Yes, the bare owner may sell or mortgage the bare title, but the property passes to the buyer burdened by the existing usufruct. He may not dispose of it in a way that harms the usufructuary's right without consent, under Article 612 of the Civil Transactions Law.
Who pays for major repairs on property subject to a usufruct?▾
Extraordinary expenses and major repairs not caused by the usufructuary's fault fall on the bare owner, who is not obliged to carry them out during the usufruct under Article 684. If the usufructuary carries them out, he may recover them from the owner after returning the property.
Is transferring bare title to my son while keeping a lifetime right to live there a gift?▾
Article 648 of the Civil Transactions Law provides that a disposition to an heir in which the disposer retains possession and use for life is deemed to take effect after death and is governed by the rules on wills, unless proven otherwise.
When does the bare owner obtain full ownership?▾
When the usufruct term expires, on the usufructuary's death if no term was set, when the usufructuary waives the right, or when owner and usufructuary become the same person, under Articles 689–692.
