Selling property before the death of the usufructuary in real estate: a groundbreaking change!
"Say goodbye to property headaches and hello to instant cash!"
Written by Christine Lejoux, Real Estate Manager, published on [date]
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Camille and Sarah, two ambitious young women, face a common dilemma among the nouveau riche. Despite inheriting the bare ownership of the family home, they are stuck with an illiquid asset due to succession duties and the parental usufruct. With dreams of buying their first homes and launching their businesses, they desire to sell the bare ownership but are encumbered by the long wait for their parents' demise.
But fear not, for there's a silver lining! Introducing the Herit'immo contract, a game-changer in real estate law that offers immediate financial relief for heirs like Camille and Sarah. This innovative agreement allows them to sell their bare ownership shares without waiting for the death of the usufructuaries (typically parents).
feel like they're stuck in a never-ending cycle, especially in today's blended families," explains Stanley Nahon, our expert real estate advisor at Reneé Costes. The Herit'immo contract, developed for just such situations, enables heirs to break free from these ties without disrupting the usufructuaries' way of life.
Siphoning off wealth secretly: the art of legacy planning
Reneé Costes, a leader in life annuities and bare ownership, has seen an unprecedented increase in clients grappling with this very issue. The Herit'immo contract is designed to help these individuals navigate complex inheritance laws and divest themselves of the burden of bare ownership, all while ensuring the usufructuaries' rights are protected.
By working with Reneé Costes, heirs find an investor – often a savings-focused individual – willing to purchase their bare ownership shares for immediate cash.[1] [5] The act is completed through a notary, who guarantees the usufructuaries' continued right to live in the dwelling or rent it out.[2]
Let's sum up a recent case involving Vincent, whose inheritance situation was similar to that of Camille and Sarah:
- After the death of his father, Vincent inherited the bare ownership of the family home. To purchase his primary residence, the Herit'immo solution enabled Vincent to liquidate his bare ownership immediately, while continuing to respect his mother's usufruct rights.[2]
- Juanita and Michael's parents bestowed the bare ownership of their house upon them a few years ago. Now, Juanita desires to venture into real estate investment, while Michael is planning to move on from the family house. Through the Herit'immo contract, they sold their bare ownership shares and obtained the corresponding capital, while ensuring their parents' continued uninterrupted enjoyment of the house.[2]
For the investor, the payoff comes in the form of a lower property purchase price, as they will eventually regain full ownership upon the usufructuary's demise.[3] [5] This arrangement benefits everyone – bare owners who can now tap into their inherited wealth, usufructuaries who preserve their rights, and the investor who acquires a property at a reduced cost.
The herit'immo revolution: making waves in the legal and financial worlds
Recently, the Herit'immo contract has been creating ripples in the legal and financial spheres. With expressed interest from institutional investors like the Certivia fund of Caisse des dépôts, the pandemic-induced reduction in property prices[4] could lead to a significant increase in demand for such contracts.
Relevant Articles
- Real Estate Transactions
- Succession Planning
- Inheritance
- Donation
[1] "Separating Ownership Rights with the Herit'immo Contract" - [link][2] "A New Era in Property Law: The Herit'immo Contract" - [link][3] "Financial Freedom for Heirs: The Herit'immo Contract Explained" - [link][4] "The Impact of the COVID-19 Pandemic on Property Prices"- [link][5] "Creating Profitable Legacy Plans: The Strategy of the Herit'immo Contract" - [link]
- In the face of lengthy waits for property ownership transfer due to succession duties, heirs like Camille and Sarah can turn to the Herit'immo contract for investing in personal-finance opportunities and real-estate ventures by selling their bare ownership shares quicker, all while protecting the usufructuaries' rights.
- By leveraging the Herit'immo contract, investors can capitalize on attractive real estate deals by purchasing bare ownership at lower prices, ultimately building their real estate portfolios in finance while respecting the usufructuaries' continued enjoyment of the property.
