Different forms of real estate ownership

In France, real estate ownership can take on different forms, each offering specific rights and obligations to the owners. Understanding these forms is essential for effectively managing your real estate assets and avoiding legal complications. This article explores the main forms of real estate ownership in France, their characteristics, and their legal implications.

Individual ownership

Individual ownership is the most common form of real estate ownership. In this case, a single person holds all rights to the property. They can freely dispose of it, meaning they can sell, rent, or transfer the property as they wish. This type of ownership is often used for primary or secondary residences.

Co-ownership

Co-ownership is a form of shared ownership among several individuals in the same building. Each co-owner holds a share of the common areas (stairs, roof, garden) and a private lot (apartment, cellar, parking space). Co-ownership is governed by the law of July 10, 1965 and the co-ownership regulations, which outline the rights and obligations of co-owners, as well as the functioning of the co-ownership.

Joint ownership

Joint ownership occurs when several people together own a property without physically dividing it. Each joint owner holds a share of the property, without that share being physically identifiable. Joint ownership is often used in successions or joint real estate purchases. It is governed by Articles 815 and following of the Civil Code, which specify the rights and duties of joint owners.

Property splitting

Property splitting involves separating full ownership of a property into two distinct rights: usufruct and bare ownership. The usufructuary has the right to use the property and receive income from it (for example, rent), while the bare owner holds ownership of the property without being able to enjoy it. This form of ownership is often used in a family or heritage context to optimize the transfer of assets.

Real-life examples

Let's imagine a couple who wants to buy an apartment. They can choose to buy jointly, each holding 50% of the property, or in property splitting, one being the usufructuary and the other the bare owner. In co-ownership, they will purchase a private lot (their apartment) with a share of the common areas.

Laws governing real estate ownership forms

Real estate ownership in France is regulated by the Civil Code, specifically Articles 544 to 546 for individual ownership, Articles 815 and following for joint ownership, and the law of July 10, 1965 for co-ownership. Property splitting is regulated by Articles 578 to 624 of the Civil Code.

Conclusion

The different forms of real estate ownership offer solutions tailored to various personal and heritage situations. Whether you are a sole owner, co-owner, joint owner, or usufructuary, it is crucial to understand your rights and obligations to effectively manage your real estate assets. In case of doubt, it is recommended to consult a notary or legal advisor to choose the ownership form that best suits your needs.