Celeste holds a usufruct over a rental house in Baton Rouge, and her son André is the naked owner. A prospective buyer approaches Celeste and offers to purchase the property. Which of the following statements correctly describes the situation?
Correct Answer
C) Celeste and André must both consent to convey full ownership of the property to the buyer
Under Louisiana Civil Code Articles 478 and 544, the usufructuary (Celeste) has the right to use and enjoy the property and collect its fruits but cannot alienate (sell) the property itself. The naked owner (André) holds title but cannot convey full, unencumbered ownership without the usufructuary's participation or consent, because the buyer would receive title subject to the usufruct. To convey clear, full ownership to a buyer, both Celeste and André must cooperate in the transaction.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
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