Everyone who owns it dreads the day they want to sell their property for two reasons, the first, obviously, the economic issue and that they give you the money you expect for your house, and the second reason is to be able to sell the house on time and not having to rent a flat or leave the flat.
However, this has a solution since it is possible to sell the house and continue living in it. How are you wondering?In this article we are going to try to answer that question. And it is that although you do not believe it, it is possible, but first you must know certain things, so I recommend that you continue reading.
Sell the House And Continue Living In It. What Should You Know
The first of all is to know that the law protects you if you wish to do so. The legal formula is called bare ownership, a new sales system that has more followers and people who use this option. This legal formula is becoming more common.The reasons are obvious. Although before we must tell you that this is for older people who use this usufruct system as an extra supplement to their pension since in many cases it is small.
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And it is that the sale of a property and preserving their right to live in it is possible for older people using the right of bare property. The secret of this is in the Civil Code that includes a law that protects the homeowner.
This right contemplates that property is the right you have over that asset and the usufruct throughout your life.In other words, the law establishes the possibility that an owner of a house or flat can sell it if he is older than 65 years and while continuing to live in it if he avails himself of this right.
That is, it is the right of the person over a thing since he maintains the figure of the owner with the difference that he has dominion over the thing.
While he lives but does not have the right of possession since he sells it by means of an assignment until the moment in which he dies, but while exercising his right of usufruct. This is because the law protects the homeowner even if he sells it since he maintains the right to live in his home. For this, you can spend as long as you want to exercise the benefit of usufruct.
This sales model is increasingly common in Dubai and what is intended is that the owners sell their house since they do not have heirs, or if they do, they do not want to leave an inheritance and prefer to sell their house. But not being able to maintain an economic rhythm, they put the property up for sale to get the money that never hurts.
How Is The Payment Of The Monthly Fee Calculated In Case Of Selling?
The issue is to calculate the money to be paid in the form of rent. To do this, the normal thing is to make accounts with the life expectancy of the person and make an average according to their age and sex (a woman usually lives longer than a man), as well as the price of the house. Once it is calculated, the price of a monthly fee is established until the person dies. But there is also the possibility of making the delivery of a single payment or installments, everything is to discuss it with the owner.
Thus, the seller receives money in advance based on the agreement reached with the buyer. Another important thing to know is that this amount is not updated with the CPI or any other index or variable as the year passes. Since the agreement maintains a stable monthly rate for the time (which is usually years) that the agreement lasts and until the moment of death of the ex-owner, who is still the usufructuary of the property.
Can It Be Rented?
Another thing that anyone interested in selling their home and continuing to live in it should know is the issue of rent. And yes, it can be put up for rent unless it has been agreed in the agreement or sale. In fact, the Civil Code establishes this rental right as long as the person lives since it may also happen that they go to an asylum or to reside with their relatives. The point is that the law protects the landlord with the right to rent.
What Happens In Case Of Sale To A Married Couple?
The problem is when the owners are two, or it is a married couple and two people live in the apartment. This happens quite regularly and the result is that the usufruct right protects the people who live in the apartment. That is, the owner who acquires the house or flat must wait for the marriage to pass away, which includes both.
To calculate the income to be paid, an estimate must be made based on the life expectancy of the person with the most possibilities, the normal thing is that they are women with an average lifetime of about 87 years, approximately. The bare property offers fewer expenses for the elderly person since they do not have to worry about the issue of paperwork and it saves them a lot of paperwork and bureaucracy.
Another issue is that the sale for nil property offers liquidity to the person and they decide to sell with this method. The average of these contracts is usually 10 years and is becoming more common in the Dubai market.
With this explanation, we hope to have clarified the question of selling the house and continuing to live in it. It’s possible? Now that you know that you can, if you are over 65 years old, you can opt for this method if you wish since it is not valid for everyone.