Practical regulations
Managing bare ownership in a condominium
When a condominium unit is split between a bare owner and a usufructuary, the administrator faces a recurring source of disputes: who pays, who votes, and who receives notices. Italian law does not leave this to interpretation. The Civil Code sets a clear line between ordinary expenses, which fall on the usufructuary as the person enjoying the property day to day, and extraordinary expenses and capital improvements, which fall on the bare owner as the person who will eventually recover full title. Getting this wrong creates real liability: an administrator who invoices the wrong party, or lets the wrong party vote, can see resolutions challenged. This guide sets out the rules and the practical steps to apply them correctly.
Who is the bare owner and who is the usufructuary
Bare ownership (nuda proprietà) and usufruct (usufrutto) are the two components of full ownership when it has been split, typically through inheritance planning, a gift with reserved usufruct, or a sale where the seller keeps the right to use the property for life. The usufructuary holds the right to use the unit and collect its fruits, including rent if let out, for the duration of the usufruct, which is often lifelong. The bare owner holds the residual right of ownership, meaning the certainty that full title will consolidate in their hands once the usufruct ends.
For the condominium administrator, both figures can appear as owners of the same unit at the same time, and each has distinct rights and obligations that do not automatically overlap. Registering the split correctly in the building's registry of unit holders is the first step: the administrator needs the identity and tax details of both parties, plus a copy of the deed or will establishing the usufruct, to know who to bill and who to notify.
Splitting condominium expenses: the Civil Code rule
Article 1004 of the Civil Code assigns to the usufructuary the ordinary running costs of enjoying the property: cleaning, ordinary maintenance of common parts, utilities, the concierge service, insurance premiums, and generally anything classified as ordinary management in the condominium budget. These are the recurring costs the usufructuary would bear even outside a condominium, simply by using the unit.
Article 1005 assigns to the bare owner the extraordinary expenses: structural repairs, renovation of the facade or roof, replacement of the elevator, and any capital works that increase or preserve the value of the building beyond ordinary upkeep. The rationale is straightforward: these works benefit the asset itself, which will return in full to the bare owner, so the cost should not fall entirely on someone whose right ends when the usufruct ends.
In practice, the administrator should follow a short checklist to keep the split consistent across every document the building produces.
- Ask for the deed of usufruct at the start of the mandate, so the split can be applied from the first budget
- Split each item of the annual and any extraordinary budget between ordinary and extraordinary before issuing separate statements
- Keep the split consistent across the assembly minutes, the statement of account, and the payment reminders
Voting rights: who exercises the vote under Article 67
Article 67 of the Implementing Provisions of the Civil Code addresses voting directly: in the case of usufruct over a condominium unit, the usufructuary takes part in the assembly and votes on matters concerning ordinary administration and the enjoyment of common parts and services, while the bare owner is called and votes on resolutions concerning acts that go beyond ordinary administration, meaning extraordinary works and capital expenses, and more generally on matters that affect the substance of the property.
This split mirrors the expense rule: whoever will pay for a category of decision is the one entitled to vote on it. An administrator convening an assembly with mixed agenda items, some ordinary and some extraordinary, should identify in advance which party is entitled to vote on each point and record this correctly in the minutes, since a vote cast by the wrong party can be grounds for challenging the resolution within the statutory term.
When both bare owner and usufructuary want to attend, only the party entitled to vote on a given item can validate that vote; the other may attend and speak but not vote on that specific point, unless a proxy has been given.
Notices, statements and practical administration
Correct communication matters as much as correct billing. Convening notices, minutes, and the annual statement should reach both the usufructuary, for the ordinary items they are billed for and entitled to vote on, and the bare owner, for the extraordinary items and any decision touching the substance of the property. Sending a single notice to only one of the two parties, when both hold rights over different aspects of the same decision, exposes the resolution to a formal challenge on notice grounds.
A software platform built for Italian condominium management such as AmministraPro helps here in concrete terms: it lets the administrator register both the bare owner and the usufructuary against the same unit, classify each budget line as ordinary or extraordinary once, and route statements, reminders and convening notices to the correct party automatically, cutting down on the manual bookkeeping that usually causes these errors.
Frequently asked questions
Who pays the condominium fees, the bare owner or the usufructuary?
It depends on the nature of the expense. Under Article 1004 of the Civil Code, the usufructuary pays the ordinary running costs, such as cleaning, ordinary maintenance, utilities and the concierge service, because these relate to the day to day enjoyment of the unit. Under Article 1005, the bare owner pays extraordinary expenses and capital works, such as facade renovation, roof repair or elevator replacement, because these preserve or increase the value of an asset that will fully return to the bare owner once the usufruct ends. The administrator should split every budget item between the two categories before billing.
Can the bare owner vote in the condominium assembly?
Yes, but only on matters within their competence. Article 67 of the Implementing Provisions of the Civil Code reserves ordinary administration and enjoyment matters to the usufructuary's vote, while resolutions on extraordinary works, capital expenses, and anything affecting the substance of the property belong to the bare owner. If the assembly agenda mixes both types of items, the administrator should record in the minutes which party voted on which point, since an incorrect voter can be grounds for challenging the resolution.
Does the administrator need to notify both the bare owner and the usufructuary?
Yes, for the matters each is entitled to decide on. The convening notice, the minutes, and the annual statement of account should reach the usufructuary for ordinary items and the bare owner for extraordinary items and matters touching the substance of the property. Sending notice to only one party when the agenda also covers the other party's competence is a common ground for challenging a resolution within the statutory term.
What happens to the split of expenses when the usufruct ends?
Once the usufruct ends, whether by the usufructuary's death, expiry of a fixed term, or renunciation, full ownership consolidates in the bare owner, who from that point on is billed for all condominium expenses, ordinary and extraordinary, as the sole owner. The administrator should update the registry of unit holders promptly so that future statements, reminders and convening notices are addressed correctly, without relying on the previous split.
How can an administrator keep track of the bare owner and usufructuary split without manual errors?
The safest approach is to register both parties against the unit from the start of the mandate, with a copy of the deed establishing the usufruct, and to classify every budget item as ordinary or extraordinary before any statement is issued. A dedicated condominium management platform such as AmministraPro supports this by letting the administrator register both holders on the same unit, keep the ordinary and extraordinary split consistent across budgets and statements, and route convening notices and payment reminders to the correct party automatically.
Try AmministraPro
Accounting, thousandths-based cost splitting, meetings, communications and artificial intelligence in a single Italian software, compliant with UNI 10801 and GDPR.