How it works
The guaranteed-rent variant has a different mechanic from the other bare-ownership formats. Here the buyer acquires full ownership at signing — strictly speaking it is not a "bare-ownership sale" in the traditional sense — and simultaneously signs a lease with the seller granting the right to remain in the property for a defined term in exchange for rent.
What makes it resemble a bare-ownership sale is the discount on the full property value: the buyer pays less at signing because of the future occupancy commitment. The difference with the other bare-ownership variants is that the cash flow runs from seller to buyer (rent) instead of the other way around (lifetime or fixed-term annuity).
For the seller
This is the right option for someone who wants to monetise the property but prefers to formally stay on as a tenant. The seller has a clear contractual relationship: pay monthly rent, retain residence. The rent is usually set below market because part of the value was already compensated through the sale-price discount.
Unlike a usufructuary in a pure bare-ownership sale, the tenant has more bounded rights and obligations — no property tax burden, no responsibility for major structural repairs, and the flexibility to move out if life changes (handing the property back to the owner and terminating the lease early, subject to contract terms).
For the buyer
The buyer takes full ownership from day one. They have flexibility to mortgage, refinance or transfer the property subject to the lease. The rent stream returns part of the invested capital during the guarantee period and produces operating yield before the property is effectively vacated.
The main risk is the standard landlord risk: the tenant may stop paying, and eviction proceedings in Venezuela can be slow. Contracts typically include additional guarantees — joint guarantor, larger deposit, offset against the sale-price balance — and the rent is set below market to minimise enforcement friction.
Tax and contract considerations
- Two linked documents. The transaction is signed as two linked contracts: the sale and the lease. Each has its own tax regime.
- Lease term. Defines the seller's protection. It can be a long fixed term (15–20 years) or linked to the seller's life expectancy. A central clause.
- Cross-references. The lease can include clauses that affect the sale — for example, the seller's repurchase option or a right of first refusal if the buyer later sells.
- Repair responsibility. As a tenant, the seller covers minor repairs and ordinary wear; major repairs are the buyer-landlord's responsibility.
