Life Interest and Bare Ownership: Rights and Obligations Following a Decision of the Nancy Court of Appeal

Imagine that you have inherited a house in Mulhouse, but your parent retains the life interest (the right to live in it and receive the rent). You are the bare owner – you own the property, but without being able to use it immediately. Everything goes well as long as wishes align. But what happens when the life tenant decides to modify the house without consulting you? Or when you want to sell, but he opposes it? These questions are asked by hundreds of owners each year. The Nancy Court of Appeal, in a judgment of 24 February 2025, reminded us of the essential rules governing this legal duo. A decision that enlightens everyone on their rights and obligations.

The law of life interest and bare ownership is often misunderstood. Many believe that the bare owner has no power as long as the life interest lasts. Others think that the life tenant can do anything. The reality is more nuanced. This case, which pits a father life tenant against his daughter bare owner, shows the limits of each right and the consequences of a poorly managed conflict. Whether you are a landlord, heir, or simply curious, this judgment concerns you.

Before going into the details of the judgment, let us lay the foundations. Life interest is the right to enjoy a property (use it, receive its fruits) as if one were the owner, but without being able to destroy or substantially modify it. Bare ownership is the right to dispose of the property (sell, give, bequeath it), but without being able to use it as long as the life interest is not extinguished. These two rights coexist, but can collide. The decision of the Nancy Court of Appeal clarifies the obligations of each.

The facts: a story that happens every day

Mr. Henri, a 78-year-old retiree, lives in his house located in Mulhouse. Following the death of his wife, he received the life interest in this house, while his only daughter, Sophie, became the bare owner. The aim was to allow Henri to stay at home while transferring the property to his daughter without excessive inheritance tax. For several years, everything goes well. Henri maintains the house, pays the running costs, and Sophie does not worry.

But one day, Henri decides to enlarge the living room by building a conservatory. He does not consult Sophie, believing that this falls within his right of enjoyment. The work begins. Sophie, faced with a fait accompli, worries: the conservatory encroaches on the garden and, in her opinion, devalues the property. She sends a registered letter to her father asking him to stop the work. Henri refuses, arguing that the life interest gives him the right to improve the property.

The conflict escalates. Sophie brings the matter before the Mulhouse Judicial Court, which rules in favour of Henri: the conservatory does not affect the substance of the property. But Sophie appeals to the Nancy Court of Appeal. This time, she wins. The court considers that the modification is too significant and that it was made without the agreement of the bare owner, which constitutes an abuse of enjoyment. Henri is ordered to restore the premises to their original state, failing which he must pay damages to Sophie.

The reasoning of the court — dissected

The Nancy Court of Appeal based its decision on articles 578 and following of the Civil Code. Article 578 defines life interest as the right to enjoy things of which another has the ownership, but subject to the obligation to preserve their substance. In other words, the life tenant may use the property and derive profit from it, but must not alter its essential character. The court reminds that any important transformation, which modifies the structure or destination of the property, requires the agreement of the bare owner.

In this case, the conservatory added 15 square metres of living space and modified the façade. The judges considered that this was not a simple repair or maintenance, but a new construction that altered the consistency of the property. The father could therefore not impose it on his daughter. The court also stressed that the life tenant must act as a prudent person (i.e., with care and caution). By not consulting Sophie, Henri failed in this obligation.

On the other side, Sophie also demanded the removal of the conservatory. The court granted this request, considering that restoration was proportionate. However, the judges specified that the bare owner cannot oppose necessary maintenance work or minor improvements. Thus, they rejected Sophie's claim regarding interior painting work carried out by Henri without her approval: it was not a substantial modification. This decision illustrates the search for a balance between the rights of the life tenant and those of the bare owner.

This is the essence of the judgment: it confirms classic case law, but has the merit of reminding that the life tenant does not have carte blanche and that the bare owner retains a right of supervision over major transformations.

What this means for you — practically

If you are a life tenant of a property, you may live in it, rent it out, receive the rent, and carry out maintenance repairs (replacing the boiler, repainting…). But you may not, without the agreement of the bare owner:

• Destroy a load-bearing wall or an important partition
• Add an extension (conservatory, garage, terrace)
• Change the destination of the property (convert a house into commercial premises)

If you do so, you risk being ordered to restore the premises and pay damages. In Guebwiller, a life tenant who converted a garage into a studio without authorisation had to pay €8,000 in compensation to the bare owner.

If you are a bare owner, you have the right to sell the property (subject to respect for the life interest). For example, you may sell it to a third party, but the buyer will have to bear the life interest until it is extinguished. You may also undertake urgent work or major repairs (roof, retaining walls) at the expense of the life tenant, but you must notify him. Note: you cannot oppose minor improvements made by the life tenant.

In case of conflict, legal proceedings are possible. But before going to court, try mediation. This will save you costs and delays. Sometimes, a simple registered letter reminding the rules is enough to defuse the crisis.

Four tips to avoid this type of dispute

• Draft a life interest agreement as soon as the rights are created. This document can specify authorised works, maintenance arrangements and rules for sharing costs. It is not just a contract, but a roadmap that protects you.
• Inform each other before any project. The life tenant must notify the bare owner of any proposed modification. The bare owner must inform if selling. Clear communication avoids 90% of disputes.
• Consult a notary or a specialist lawyer before significant works. For a €200 consultation, you can save years of litigation.
• Keep evidence of your exchanges: registered letters, emails, photos. If conflict arises, these elements will be useful before the judge.

Further analysis: related case law and developments

The Court of Cassation, in a judgment of 12 May 2021 (No. 20-14.537), had already ruled that the life tenant cannot, without the agreement of the bare owner, change the destination of the property. Our judgment falls in line with this. Courts are increasingly attentive to the rights of the bare owner, often considered the more vulnerable party. Another decision of the Colmar Court of Appeal (2019) sanctioned a life tenant who had installed a swimming pool without authorisation. The trend is therefore towards protecting the substance of the property against untimely transformations.

For the future, the law may evolve towards an obligation to draw up an inventory of fixtures when the life interest is created. This would limit disputes. In the meantime, judges will continue to apply the principles of Article 578. Your best protection remains prevention.

Checklist before acting

• Before any work project (life tenant): check whether it is a maintenance repair (authorised) or a transformation (requires bare owner's agreement). If in doubt, consult
• Before selling (bare owner): inform the life tenant by registered letter. Specify that the sale does not affect his right of use
• In case of conflict: try mediation first. If it fails, bring the matter before the judicial court. Gather all evidence
• For the future: consider converting the life interest into a life annuity or buying it out to simplify the situation

Are you in a similar situation? A 30-minute initial consultation with Maître Perucca (€45) can save you months of litigation — and often much more. Book an appointment →