What is nud property and what rights does the owner of a nud have?

What is nud property and what rights does the owner of a nud have?

Naked ownership is a legal concept related to the ownership of property. The term is commonly used in inheritance or endowment situations where ownership is shared between the bare owner and the user, balancing ownership with the benefits of the asset. Before considering using or engaging in transactions involving naked ownership, it is important to understand how this type of ownership works. We will also explain the legal and practical issues that arise when determining who owns a residential property.

Prepared property

Prepared property is a person's (naked owner) right to a thing that he or she''is the sole owner, but without the right to its possession and use, which belong to a third party who has the right of use. In other words, ready ownership refers solely to the ownership rights to the thing in question, in our case a residential house, and does not include any right to use or enjoy that residential property.

Purchase on ready-made property

The most common way to acquire ready-made property is to inherit the property for the surviving spouse with the right of use. It is also common to acquire ready-made property through a donation with the right of use, in which the donor gives the ready-made property to the recipient but keeps it for himself''a lifetime right to use the property. Another case may be the sale of a ready-made property by the owner of a residential house with the use retained. People who choose this solution are usually elderly persons who have no heirs or need additional financial resources. In this way, they secure the use of the home, usually for life, and receive financial compensation.

The rights of the naked owner

Let's list the rights of a naked owner, given that they have no authority over the dwelling:

Property rights: The naked owner has ownership of the dwelling house, although, as we have already mentioned, he has no right of use and''use.
The right to sell the ready-made property: He may sell the ready-made property to a third party, but always with respect for the users' rights.

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Article 489 of the Civil Code states that "the owner of property on which someone has a right of use may sell it, but not to change its form or substance or to perform any act detrimental to the right of use. "

The right to mortgage on ready property: Under Section 107.2 of the Pledge Law, a mortgage can be made on ready property that is in use. If full possession passes to the bare owner-mortgagor upon termination of the right of use, the mortgage will also apply to the right''use, if there is an agreement to the contrary.

The right to carry out works and improvements: According to Article 503 of the Civil Code, it is possible to carry out works and improvements in the residential premises under ready ownership, provided that they do not harm the user.

The right to return the use and enjoyment of the residential premises after the termination of the right of use: Article 522 of the Civil Code states: "after the termination of the right of use, the owner shall be given the used thing, except for the right of retention, which belongs to the user or his heirs for the costs incurred. After the transfer of the security pledge or mortgage is made''use: Article 505 of the Civil Code emphasizes that the bare owner is obliged to pay taxes and fees related to real estate, except for the real estate tax, which is paid by the user.

Paying the mortgage on the property on the bare property: According to Article 509 of the Civil Code, the user of the property under mortgage "is not obliged to pay the debts for the security of which the mortgage was established," and if the property is seized or sold by judicial order to pay the debt, "the owner will be liable to the user for what he loses for this reason. "

Liability to the user: The naked owner should be held responsible''a legal act in which the owner of real estate transfers his rights to it, but retains the right to use and enjoy the property for a certain period of time or for life. In such cases, the buyer is able to buy the property at a lower price because he cannot own it for several years. For the seller, the main advantage is that he can continue to use the property, receive the money from the sale immediately and conclude everything in notarized form.

Paying taxes when selling on a ready-made property

How is the sale of prepaid property taxed when the user of the right-of-use is subject to income tax? If the right-of-use user has reached''s age 65 and the property to be sold is his or her primary residence, he or she is completely exempt from paying taxes on the income tax return, so no taxes need to be paid to the IRS.

If the property is a second home, the sales tax will be included on the income tax return, unless the money received from the sale is used to purchase life annuity insurance.

How is naked property taxed under the naked owner income tax? The law warns that naked owners are not taxed, but the one who has the right of use and enjoyment is liable to pay taxes.

Real estate, on''where the naked property is located is not taxable in the income tax return, although the naked owner must mention the object in the return and indicate in the code the possession of the naked property, but not the right of use and enjoyment.