How Do Usufruct and Right of Residence (Sükna) on a Unit Work?

Seeing records such as "usufruct" or "right of residence (sükna)" on a unit's title surprises many people. These rights are used, in particular, in intra-family transfers and estate planning. Questions such as "is the usufruct holder the owner or not", "who pays the dues" and "who casts the vote at the meeting" are important. In this article we explain usufruct and right of residence and their relationship with condominium ownership.

What is usufruct?

Usufruct is a right that gives a person the power to benefit from and use a property (for example, a unit) belonging to another. The usufruct holder can use the unit, can rent it out and collect the income; but they cannot sell the unit, because ownership is with someone else. For example, a person may transfer the bare ownership of their unit to their child while retaining a life-long usufruct over it. Ownership thus passes to the child, but the right to use the unit and collect its income remains with the parent.

What is right of residence (sükna)?

The right of residence (sükna) is a narrower right than usufruct: it gives a person the power to reside in a dwelling or a part of it. The difference from usufruct is that the right of residence is, as a rule, personal to the holder and cannot be used to earn income by renting the dwelling out. The holder of the right of residence can personally reside in the dwelling but cannot rent it to another. This right is also generally established for the purpose of intra-family security.

Who pays the dues?

This is the most frequently asked question. As a rule, the person who actually uses and benefits from the unit (the usufruct holder or the right of residence holder) bears the day-to-day use expenses. The usufruct holder is liable for the ordinary maintenance and use expenses of the unit. However, the full scope of the common expense liability is assessed according to the nature of the right and the concrete case; for major and extraordinary expenses, the bare owner's liability may arise. When creating a usufruct/right of residence, therefore, it is important to clarify the sharing of expenses.

Who has the voting right at the meeting?

As a rule, the voting right in the assembly of unit owners belongs to the owner; however, when a usufruct is involved, the application is shaped according to the nature of the right. In day-to-day matters relating to use and enjoyment, the view of the usufruct holder actually using the unit is important, while in fundamental decisions concerning ownership the owner (bare owner) is decisive. In practice, this distinction is evaluated according to the nature of the decision.

Why are these rights created?

Usufruct and right of residence are most often used in estate planning. A parent may transfer ownership to their child while retaining usufruct or right of residence over the unit to safeguard their own way of life. Estate is thus planned in advance and the right holder is secured in the dwelling for life. Registering these rights in the land registry provides strong protection.

Summary: Usufruct is a right giving the power to benefit from and use a unit belonging to another (including renting it out for income); the right of residence (sükna) grants only the power to reside personally in the dwelling and does not allow renting it out. The holder using the unit bears the ordinary expenses; the voting right is assessed between the owner and the right holder according to the nature of the decision. For condominium ownership and property rights, see our blog guides, and keep your dues tracking in order with our digital tools.

Frequently Asked Questions

Can the usufruct holder sell the unit?
No. The usufruct holder can use the unit and collect its income but cannot sell it; ownership remains with the bare owner.

Can the right of residence holder rent the unit out?
As a rule, no. The right of residence (sükna) is personal and grants the power to reside personally; income cannot be earned by renting it out.

Who pays the dues on a unit with a usufruct?
As a rule, the usufruct holder using the unit bears the ordinary expenses. For major and extraordinary expenses, the bare owner's liability may arise; the healthiest approach is to clarify this when creating the right.

Related content

In connection with this topic, our articles on legal remedies against a neighbour's disturbing conduct, how the statutory late payment penalty on dues is applied and objections to and annulment of assembly decisions cover the subject in more detail.

This content is for general information only and does not constitute legal advice. For your specific situation, please consult a lawyer.