Property Ownership

In Louisiana, the owner of the 'naked ownership' of a property subject to a usufruct may sell or mortgage their naked ownership interest, but the sale or mortgage is:

AImpossible without the usufructuary's consent
BPossible — but the buyer or lender takes the interest subject to the existing usufruct✓ Correct
COnly possible if the usufruct expires within 5 years
DAutomatically extinguished by the transfer

Explanation

The naked owner may transfer or mortgage their interest — but the transferee/lender takes subject to the usufruct. The new naked owner cannot enjoy the property while the usufruct continues, so the interest's value reflects this encumbrance.

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