Sale with usufruct: how to share the price between bare owner and usufructuary

Imagine: you own a house in Saint-Amand-Montrond, but you only hold the usufruct (the right to enjoy it, live in it or receive the rent), while another person owns the bare ownership (the right to dispose of the property, but without having the use of it). You decide to sell together. The price is paid into an account. But then, who receives what? The usufructuary thinks they will get the whole amount, the bare owner thinks the same. The question every owner asks: how to divide the sale price fairly between these two rights? This decision of the Court of Cassation answers clearly: the price must be apportioned according to the comparative value of the usufruct and the bare ownership. No equal sharing, no priority to one or the other. A simple rule, but often overlooked.

The facts: a story like many that happen every day

Mr and Mrs X are owners of a property in Saint-Doulchard. Following a split of ownership (the separation of usufruct and bare ownership), Mr X holds the usufruct, while Mrs X holds the bare ownership. They decide to sell the property for a single price of €200,000. The sale is concluded, but a disagreement arises: the usufructuary considers that, since the usufruct does not end with the sale (the usufruct is transferred to the price), he is entitled to the entire price, or at least to its interest. The bare owner, on the other hand, claims his share. The case goes to the tribunal de grande instance of Bourges, then to the court of appeal. The latter orders a division according to the respective value of the rights. The usufructuary contests: according to him, since the usufruct is transferred to the price, he must receive the interest on the sum, which amounts to receiving the entire price (with the obligation to return the capital at the end of the usufruct). The Court of Cassation, seised, must decide.

The reasoning of the court — deconstructed

The Court of Cassation dismisses the usufructuary's appeal. It recalls a fundamental principle: when the property sold belongs in usufruct to one of the sellers and in bare ownership to the other, each is entitled to a portion of the total price corresponding to the comparative value of the usufruct with the bare ownership. Concretely, it is not a matter of transferring the usufruct to the price as the usufructuary argued, but of sharing the price according to the economic value of each right at the time of the sale. The Court bases its decision on the rules of split ownership (articles 578 et seq. of the Civil Code, which define usufruct and bare ownership). It specifies that the usufructuary can only receive the value of his usufruct, and not the entire price. This is neither a confirmation nor a reversal: it is the application of an already established principle, but clarified here. The usufructuary's arguments (transfer of usufruct to the price, receipt of interest) are rejected: the sale terminates the split ownership, and each right must be valued and paid separately. The bare owner, for his part, receives the value of his bare ownership.

What this changes for you — concretely

If you are the owner of a split property (usufruct + bare ownership) and you sell it, the price does not go entirely to one or the other. Here is how it applies according to your situation:

• Landlord owner (usufructuary): You will only receive a fraction of the price, corresponding to the value of your usufruct (for example, 40% if you are 60, according to the tax scale). The rest goes to the bare owner. Do not count on the interest on the price: the sharing is final.
• Bare owner: You will receive the value of your bare ownership (example: 60% if the usufructuary is 60). Caution: if you have financed works, you can ask for compensation, but this is not automatic.
• Purchaser: You buy a property free of any split ownership. You do not have to worry about the division between the sellers, but check that the deed of sale clearly mentions the apportionment of the price.

Let's take a concrete example in Saint-Doulchard: a property sold for €200,000 with a usufructuary aged 70 (value of the usufruct: about 30%). The usufructuary will receive €60,000, the bare owner €140,000. If you are in this situation, you must have each right valued by a professional (notary, expert) and provide for the apportionment in the deed of sale.

Four tips to avoid this type of dispute

• Have the value of the usufruct and bare ownership assessed before the sale: Use the tax scale for usufruct (article 669 of the General Tax Code) or call on a property expert. This avoids disputes.
• Draft a precise deed of sale: The deed must mention the apportionment of the price between the usufructuary and the bare owner, with the calculation method used. Have it validated by a notary.
• In case of disagreement, apply to the judicial court: If you cannot reach an agreement, a partition action can be brought. The 1987 decision gives you a clear framework: the judge will order a proportional apportionment.
• Anticipate the tax consequences: Each seller is taxed on the capital gain realised on his share. Consult a tax specialist to optimise.

Further reading: related case law and developments

This 1987 decision is part of a consistent line. An earlier judgment of the Court of Cassation of 3 November 1983 (No. 82-12.456) had already held that, upon the sale of a split property, the price must be apportioned between the usufructuary and the bare owner according to the value of their respective rights. The 1987 decision confirms this position, rejecting the theory of the transfer of the usufruct to the price. Since then, the courts have applied this principle without notable variation. For the future, the trend is towards securing: notaries now systematically include a apportionment clause in deeds. If you are concerned, know that this rule is stable and predictable.

Key points to remember

• What is the principle? Upon the sale of a split property, the price is apportioned between the usufructuary and the bare owner proportionally to the value of their rights.
• Is the usufructuary entitled to interest on the price? No. The sale extinguishes the split ownership: the usufructuary receives a lump sum corresponding to the value of his usufruct.
• How to calculate the value of the usufruct? The tax scale is generally used (article 669 CGI) which takes into account the age of the usufructuary. For example, at 60, the usufruct is worth 40%; at 80, 20%.
• What if the sellers disagree? Apply to the judicial court. The judge will order an expert appraisal and a division according to case law.
• Does this principle apply to forced sales (seizure)? Yes, the same rule applies: the price is apportioned between the holders of the split rights.

Are you in a similar situation? A first 30-minute consultation with Maître Zakine (€45) can save you months of proceedings — and often much more. Book an appointment →