-— Slur U6©! —_-_ a awe aeSerlUlwerlUlTwrlUl rh CULD possession in severalty and the exercise of ewnesship of the respective portions set off to each. = Here, it is obvious that Eusebio took possession of his share and exercised ‘ownership over it. Thus, the preponderant evidence points to the validity of the sale executed, Iv, usuFRUCT A.In General Definition Art. 562. Usufruct gives a right to enjoy the property of another with the obligation of preserving its form and substance, unless the title constituting itor the law. henwise provides. =| = Right to enjoy the property of another temporarily, including both the jus utendi (right to possess and enjoy) ard the jus fruendi (fruits), with the owner (naked) retaining the jus disponendi (alienate or dispose) Absolute imitation: Tile (so long as title is not transferred ~ Jbats) ‘The 3 Components (Beda) + Usufructuary (© Jus utendi—right to use (© Jus fruendi~right to fruits + Naked ownership (© Jus dispodendi — right to dispose. Formula = Full Ownership = Naked Ownership + Usufruct = Naked Ownership = Full Ownership — Usufruct = Usufruct = Full Ownership — Naked Ownership Characteristics (Beda) Real right Of temporary duration ~ Purposes to enjoy the benefits and derive all ‘advantages from the thing due tc normal exploitation = May be constituted on real or personal property, ‘consumable or non-consumable, tangible or intangible, ownership of which is vested on another = Transmissible Requisites of Usufruct (Beda) 1. Essential ~real temporary ight to’enjoy another's ‘Property 2. Natural ~ a. Ordinavily present, but a contrary stipulation can eliminate it because itis not essential. Classifications of Usufruct (Beda) 2. ASto Origin 2. Legal law (Usufruct of the parents over the Property of their unemancipated children) Voluntary — will © Mixed2. Asto Quantity or Kind of Object (564) a Total b. Partial~ whether all the fruits are given or not 3. ASto the Extent of Owner's patrimony (598-599) a. Universal if over the entire patrimony b._Singular er particular ~if only individual things are Included 4. Asto the thumber of Persons Employing the Right a. Simple - only one usufructuary enjoys b. Multiple 1. Simultaneous ~ same time |. Successive - one after another (611) 5. Asto the Quality or Kind of Object (564) Over rights b. Over things 6. Ast Whether or not impairment of object is allowed (362) a. Normal (or perfect or regular) ~ involves non- consumable which the usufructuary can enjoy without altering the form or substance b. Abnormal imperfect or irregular) useless unless ‘consumed or expended 7. Asto term or conditions (564) a. Pure b. With a Term of Periodical {Ex ie~ from a certain day (suspensive) li, Indiem—up toa certain day (resolutory) ii, Exdiein diem—from a certain day up toa certain day © Conditional ‘Art. 565. The rights and obligations of the usulructuary shall be those provided inthe ttle constituting the Usufruet; in default of such ttle, or in case itis deficient, the provisions contained in the two following Chapters shall be observed Taw (Implied new lease) Extent of ‘All fruitsand all | Refers only to Enjoyment the uses and benefits of the | stipulated” entire property Cause Passive owner | Active owner or who allows: lessor who makes usufructuary to | the lessee enjoy enjoy the object jven in usufruct | ‘Repairs and "Usufructuary pays | Lessee generally Taxes for ordinary | notunder such repairs and taxes | obligation Art. 574, Whenever the usufruct includes things which ut bei the usufructuary ‘shall have the right to make use of them under the ‘obligation of paying their appraised value at the tetmination ofthe usufruet, if they were appraised when delivered. Incase they were not appraised, he shall have the right to return at the same quantity and quality, or pay their current price a the time the usufruct ceases, } ‘Art. 564, Usufruct may be constituted on the whole ora Patt of the fruits ofthe thin, in favor of one more persons, simultaneously or successively, and in every case from or toa certain day, purely or conditionally. It may also be constituted on a right, provided its not strictly personal cor intransmissible, + Allproperty can be the object of usufruct, even ‘consumables (574) = Can be constituted on a right, provided itis not strictly personal or intransmissible (S64) 1. Agreement of the parties or ttle giving the usufruct 2. Incase of deficiency, apply the Chil Code. Usufruct versus Lease (Beda) ‘Art 563. Usufruct is constituted by law, by the will of Usufruct tease. Nature of Right | Always areal Generally a aT Oneroray enor authorized agent | be the owner, Example: Sub- lessor or . usufrutuary Origin Law, contract;w | Generally by ill prescription | contract Exception is if by Private persons expressed in acts inter vivos or in a last will and testament, and by presetiption. 1 bylaw 4, FC226: Parents are given rights to the frutsiand income of their but limited Primarily o the child’s support and secondatily to the collective needs of the family, 2. By the willof private persons 3. expressed in acts inter vivos montis causa or in a last will and testament . Includes contracts: 3. By prescription, Varlations[Art S64, Usufruct may be constituted on the whole or 3 ‘part of the fruits of the thing, in favor of one or more persons, simultaneously or successively, and in every case from or to a certain day, purely or conditionally. It may also be constituted on a right, provided itis not strictly + May be constituted on the whole or a part of the fruits of the thing, + May be in favor of one or more persons (© Iflin favor of more than 1 person ‘0 It may be simultaneous or successive + May be from or to a certain day May be pure or conditional, B. Rights of Owner. Alienate Make Improvements “Taxes. ‘At 581. The owner of property the usufruct of which is held by another, may alienate It, ut he cannot alterits form or substance, or do anything thereon which may be elude mt "i + Owner can alienate Limitations: © Alterits form © Alterits substance © Doanything which may be prejudicial to the usufructuary B.2, Right to Make Improvements ‘Art. 595, The owner may construct any works and make any Improvements of which the immovable in usufruct is susceptible, or make new plantings thereon ifit be rural, ‘provided that such acts do not cause a diminution in the value of the usufruct or prejudice the right of the = Owner may: © Construct any works (0 Make any improvements * Of which the immovable in usufruct is susceptible (© Make new plantings if Rural Limitations (© Theact should not cause a diminution in the value of the usufruct B.1. Right to Allenate © Prejudice the right ofthe usufructuary 8.3. Taxes ‘Art. 597. The taxes which, during the usufruct, may be imposed directly on the capital, shall be at the expense of the owner, Ifthe latter has pald them, the usufructuary shall pay him the proper Interest on the sums which may have been paid in that character; and, if the said sums have been advanced by the usufructuary, he shall recover the amount thereof at the termination of the usufruct. ‘Situation: Owner paid a tax on the capital (e.g. Real property tax) ‘What can owner recover: Usufructuary will pay the proper interest on the tax on the capital. . Obligations of the Usufructuary ‘Those provided inthe title; ifnone then the #2=#11. ‘Make an inventory. Give security. Take care of the things ike a good father of a family Make ordinary repairs needed by the thing. Notify the owner if there is need for an extraordinary repair. Pay or shoulder certain expenses If stipulated on the title, pay the debts of the owner. Notify the owner of any acts of a 3rd person. 10. Pay expenses, costs, and liabilities for suits he brought, 411, Return the thing to owner upon termination of usufruet. .1. Before entry into the property rove ‘Art. 565. The rights and obligations of the usuructuary shall be those provided inthe title constituting the sufruct;In default of such ttle, or in case itis deficient, the provisions contained in the two following Chanters Lshallbeobserved, Art, 583. The usufructuary, before entering upon the enjoyment of the property, is obliged: {1) To make, ofter notice to the owner or his legitimate representative, an Inventory of all the property, which shall contain an appraisal of the movables and a description of the condition of the Immovables;, (2) To give security, binding himself to fulfil the Obligations imposed upon him in accordance with this Chapter. ‘Art, $85. The usufructuary, whatever may be the title ofthe usufruct, may be excused from the obligation of ‘making an Inventory or of giving security, when no one will be injured thereby. When: Before entering the property and after giving notice to the owner or his legitimate representative (583) + Legitimate not legal so notice may be given to ‘owner's parents, spouse, guardian, administrator or agent (Beda) What: An inventory of all the property (583) + If movables: Contains an appraisal + Ifimmovables: Description of the condition of the immovables Exception: No need to make an inventory if no one will be Injured. (585) ‘Obligation to make Inventory: + Failure will not prevent him from enjoying the property. ~ But it gives rise to a presumption that the property was received in good condition and the usufructuary ‘may be compelled to make an inventory anytime. (Tolentino) 3. Give Security ‘Art, 583, The usufructuary, before entering upon the enjoyment of the property, is obliged: (1) To make, after notice to the owner or his legitimate representative, an inventory ofall the property, which shall contain an appraisal of the movables and a description of the condition of the immovables; {2) To give security, binding himself to fulfill the obligations imposed upon him in accordance with this, chapter. Art, 585, The usufructuary, whatever may be the title of the usufruct, may be excused from the obligation of making an inventory or of giving security, when no one will be injured thereb) Art, 584, The provisions of No. 2 of the preceding article shall not apply to the donor who has reserved the usufruct of the property donated, or to the parents who are usufructuaries of their children's property, except when the parents contract a second marriage Art. 586. Should the usufructuary fail to give security in the cases in which he is bound to give it, the owner may demand that the immovables be placed under administration, that the movables be sold, that the public bonds, instruments of credit payable to order or to bearer be converted into registered certificates or ‘deposited ina bank or public institution, and that the capital or sums in cash and the proceeds of the sale of the movable property be Invested in safe securities. ‘The Interest on the proceeds of the sale of the movables ‘and that on public securities and bonds, and the proceeds. of the property placed under administration, shall belong, to the usufructuary. Furthermore, the owner may, if he so prefers, until the usufructuory gives security or is excused from so doing, retain in his possession the property in usufruct as ‘2dministrotor, subject to the obl iver to thi uusufructuary the net proceeds thereof, after deducting the sums which may be agreed upon or judicially allowed him | for such administation, Art, 587, Ifthe usufructuary who has not given security claims, by virtue of a promise under oath, the delivery of the furniture necessary for his use, and that he and his family ‘be allowed to live ina house included in the usufruct, the court may grant this petition, after due consideration of the facts of the case. The same rule shall be observed with respect to implements, tools and other movable property necessary {or an industry or vocation in which he is engaged. If the owner does not wish that certain articles be sold because of their artistic worth or because they have a sentimental value, he may demand thelr delivery to him upon his giving security for the payment of the legal interest on their appraised value, ‘Art. 588. After the security has been glven by the usufructuary, he shall have a right to all the proceeds and benefits from the day on which, in accordance with the title constituting the usufruct, he should have commenced to receive them. When: Before entering the property What: Give security binding himself to fulfill the obligations Imposed upon him in accordance with the Chapter. Exception or not applicable when: No need to make an inventory if no one will be Injured. (585) 2. Donor who has reserved the usufruct of the property donated (584) 3. Parents who are usufructuaries of their children's property. 2. Except when the parents contract a 2nd marriage. b. Law assumes that they will hold it for their child in Good faith but if 2nd marriage, other interests. lure to give security: > ay demand that 1. Immovables be placed under administration+ Asusufructuary, you don’t enjoy the property but the fruits still go to you. (Jbats) 2. Movables be sold and proceeds invested in safe securities 3. Public bonds, instruments of credit payable to order or to bearer be converted into registered certificates of deposited in a bank or public institution 4, Capital or sums in cash be invested in safe securities. ‘+ Interest on proceeds of sale of #2 (movables) and 443 (public bonds, etc.) and proceeds of the #1 (property under administration) shall belong to the usufructuary. > Qwner may retain the property in usufruct as an administrator until usufructuary gives security or is excused from doing ‘© Owner is obliged to deliver to usufructuary the net proceeds of the property after deducting the sums ‘which may be agreed upon or judicially allowed him for such administration © IFowner does not want certain articles be sold due to artistic worth or sentimental value he may demand their delivery to him upon giving security for the payment of the legal interest on the appraised value > Coucion juratoria, Upon a promise under oath, a usufructuary who has not given security may ask the ‘court for the following: (587) 1. Delivery of the furniture necessary for his use 2. He and his family be allowed to live in a house Included in the usufructuary Delivery of implements, tools and other movable property necessary for an industry of vocation in ‘which he is engaged. 4. Delivery of implements, tools and other movable property necessary for an industry or vocation in which he is engaged. = Court may grant this after due consideration of the facts Based on need — hence he may not alienate or lease it. (Tolentino) Security Operates Retroactively: Right to all proceeds and. benefits from the day he should have commenced to receive them (in accordance with the title) C2 After Entry into the Property ‘Art, 589, The usufructuary shall take care of the things iven in usufruct as a good father of a famih Art. 590. A usufructuary who allenates or leases hls right of usufruct shall answer for any damage which the things the person who substitutes him. Vicarious lability: If he alienates or leases, he shall answer for damages done by the person who substituted him. (590) ‘Art. 592. The usufructuary is obliged to make the ordinary repairs needed by the thing given in usufruct. By ordinary repairs are understood such as are required by the wear and tear due to the natural use of the thing and re indispensable for its preservation. Should the usufructuary fall to make them after demand by the ‘owner, the latter may make them at the expense of the Lusufructuary, 0 Ordinary repairs: 1. Required by the wear and tear due to the natural use of the thing and 2. Indispensable for its preservation If usufructuary falls to repair It after owner demands: ‘Owner may make them at usufructuary's expense. 6, Notify the owner when the need for extraordinary repairs is urgent, ‘Art. 593. Extraordinary repairs shall be at the expense of the owner. The usufructuary is obliged to notify the owner when the need for such repairs is urgent. ‘Art, 594. If the owner should make the extraordinary repairs, he shall have a right to demand of the usufructuary the legal Interest on the amount expended for the time that the usufruct lasts. Should he not make them when they are indispensable for the preservation of the thing, the usufructuary may make them; but he shall have a right to demand of the owner, at the termination of the usufruct, the increase in value which the immovable may have acquired by reason of the repairs. {in usufruct may suffer through the fault or negligence of > Extraordinary repairs (Tolentino) ‘Caused by exceptional circumstances (not duc to natural use ) 2. Due to natural use, but not essential to the preservation of the thing > Made at expense of the owner. © Owner who makes shall have a right to demand. of the usufructuary the legal interest on the amount expended for the time that the usufruct. lasts. > Neither the owner nor the usufructuary Is obliged to ‘make extraordinary repairs. (Tolentino). © Butif indispensable, owner must make them.(© Ifhe refuses, usufructuary may make them, * Usufructuary shall have a right to demand of the owner, upon termination, the Increase in value which the Immovable may have acquired by reason of the repairs. lige ny 7 ‘Art. 596. The payment of annual charges and taxes and of those considered as alien on the frults, shall be at the expense of the usufructuary for all the time that the usufruct lasts, ‘Art. 597. The taxes which, during the usufruct, may be Imposed directly on the capital, shall be at the expense of the owner. Hf the latter has paid them, the usufructuary shall pay him the proper interest on the sums which may have been paid in that character; and, if the said sums have been advanced by the usufructuary, he shall recover the amount thereof ot the termination of the usuftuct. > Usufructuary to pay: 1, Annual charges and taxes and those considered as a lien on the fruits ‘a. For all the time that the usufruct lasts. 2. Proper interest on taxes directly imposed on the Art. 759. There being no stipulation regarding the Payment of debts, the donee shall be responsible therefor only when the donation has been made in fraud of creditors. ‘The donation Is always presumed to be In fraud of creditors, when at the time thereof the donor did not reserve sufficlent property to pay his debts prior to the donation. > Applied if: 1. Usufruct be constituted on the whole of a patrimony AND at that time the owner has debts 2. Owner's obtiged atthe time the usufruct is constituted, to make perlodical payments, even if there should be no known capital. > With respect to: © Maintenance of usufruct © Obligation of the usufructuary to pay such debts. > Obliged to pay owner's debts only when usufruct imposes upon him such obligation: © Uable to pay only the debts previously contracted, unless otherwise stipulated. © Inno case will it exceed the value of the property . given in usufruct, unless contrary intention slearlv appears, > Not obliged no stipulation. © Exception: Usufructuary responsible if usufruct was made in fraud of creditors capital © Presumption that usufruct isin fraud of creditors 2. Taxes on the capital shall be at owner's expenses when at the time the owner did not reserve {RPT-597) sulficient property to pay his debts prior to the b. If advanced by usufructaury, he shall recover it at usufruct. the termination of the usufruct. ‘2. Notify the owner of anv act of a3rd person, of which 8, Provisions of C¢758-759 on donations shall be applied, hhe-may have knowledge, that may be preludicialto the Inthe following cases: ershlo, Art, 598. If the usufruct be constituted on the whole of a tala oat potrimony, and if at the time ofits constitution the owner has debts, the provisions of Articles 758 and 759 relating to donations shall he applied, both with respect to the maintenance of the usufruct and to the obligation of the usuftucluary to pay such debts, ‘The same rule shall be applied in case the owner is obliged, ‘ot the time the usufruct is constituted, to make periodical ‘payments, even ifthere should be no known capital Art, 758. When the donation imposes upon the donee the obligation to pay the debts of the donor, if the clause does ‘hot contain any declaration to the contrary, the former is understood to be liable to pay only the debts which appear to have been previously contracted. In no case shall the donee be responsible for the debts. exceeding the value of the property donated, unless a contrary intention arly appears ‘Art. 601. The usufructuary shall be obliged to notify the ‘owner of any act of a third person, of which he may have knowledge, that may be prejudicial to the rights of ‘ownership, and he shall be liable should he not do so, for damages, asif they had been caused through his own fault, > Ifusufructuary fails, he shall be liable for damages as though caused by his own fault. 10. Expenses, costs and llabilites in suits brought with t Art, 602. The expenses, costs and liabilities in sults brought with regard to the usufruct shall be borne by the usufructuary,11, Return the thing In usufruct to the owner upon ‘usufruct shall be delivered to the owner, without prejudice to the right of retention pertaining to the usufructuary or his heirs for toxes and extraordinary ‘expenses which should be reimbursed. After the delivery has been made, the security or mortgage shall be cancelled ‘Art, 612, Upon the termination of the usufruct, the thing in ‘Art. 573. Whenever the usufruct includes things which, without being consumed, gradually deteriorate through wear and tear, the usufructuary shall have the right to make use thereof in accordance with the purpose for which they are intended, and shall not be obliged to return them at the termination of the usufruct except in thelr condition at that time; but he shall be obliged to indemnify the owner for any deterioration they may have suffered by reason of his fraud or negligence. ‘Art. 574. Whenever the usufruct includes things which cannot be used without being consumed, the usufructuary shall have the right to make use of them under the obligation of paying their appraised value at the termination of the usufruct, if they were appraised when delivered. in case they were not appraised, he shall have the right to return at the same quantity and quality, OR pay their current price at the time the usufruct ceases > Deliver the thing in usufruct to the owner © Over things which deteriorate ‘= What do you return: # If there is no fraud or negligence - Not obliged to return them except in their condition at that time. BASICALLY, not responsible for wear and tear. * If there is fraud or negligence — Indemnify owner for deteriora © Over consumables * if appraised when delivered — pay their appraised value at the termination © IF not appraised ‘+ Return the same quantity and quality OR ‘© Pay their current price at the time the usufruct ceases. > Without prejudice to right of retention pertaining to the usufructuary or his heirs for © Taxes and © Extraordinary expenses which should be reimbursed. D. Rights of Usufructuary 1. Provided in the title. 2. Personally enjoy the thing in usufruct. 3. Natural, industrial and civil fruits. Considered a stranger with respect to hidden title. Enjoy increase via accession. Enjoy servitudes established in its favor. Enjoy benefits inherent. Lease the thing in usufruct. Alienate or dispose his right of usufruct. 10. Make improvements. A That provided in the title, ‘Art. 565. The rights and obligations of the usufructuary shall be those provided in the title constituting the usufruct; in default of such ttle, or in case itis deficient, the provisions contained in the two following Chapters shall be observed. ‘Art. 572. The usufructuary may personally enjoy the thing In usufruct, lease it to another, or alienate his right of usufruct, even by a gratuitous title; but all the contracts he may enter into as such usufructuary shall terminate upon the expiration of the usufruct, saving leases of rural lands, which shall be considered as subsisting during the agricultural year. i ar ‘Art. 566. The usufructuary shall be entitled to all the ‘natural, industrial and civil fruits of the property in usufruct. With respect to hidden treasure which may be found on the land or tenement, he shall be considered a stranger. ‘Art. 567. Natural or industrial fruits growing at the time the usufruct begins, belong to the usufructuary. Those growing at the time the usufruct terminates, belong to the owner. In the preceding cases, the usufructuary, at the beginning of the usufruct, has no obligation to refund to the owner any expenses incurred; but the owner shall be obliged to reimburse at the termination of the usufruct, from the Proceeds of the growing fruits, the ordinary expenses of cultivation, for seed, and other similar expenses incurred by the usufructuary. ‘The provisions of this article shall not prejudice the rights of third persons, acquired either at the beginning or at the termination of the usufruct. ‘Art 569. Civl fruits are deemed to acerue dally, and belong to the usufructuary In proportion to the time the usufruct may last. Art, 568. If the usufructuary has leased the lands or tenements given in usufruct, and the usufruct should expire before the termination of the lease, he or his heirs[ofthe rent that must be paid by the lessee. increase which the thing in usufract may acquire through accession, the servitudes established in Its favor, and, in { general, all the benefits inherent therein. Natural or Industrial Fruits Growing at | Usufructuary the time = Atthe beginning of the usufruct, uusufruct usufructuary no obligation to refund beings _| __tot he owner any expenses incurred. Growing at | Owner the time the | - At termination, owner obliged to usufruct reimburse the oridnary expenses of terminates cultivation, seed, and other similar ‘expenses incurred by the usufructuary from the proceeds of the growing freuits. Effect to | Does not prejudice WON the third person third acquired it at the beginning or termination | persons ‘Art. §71. The usufructuary shall have the right to enjoy any increase which the thing in usufruct may acquire through accession, the servitudes established in its favor, and, in general, all the benefits Inherent therein B.Right to lease ‘Art. 572, The usufructuary may personally enjoy the thing. in usufruct, lease it to another, or alienate his right of Usufruct, even by a gratuitous title; But all the contracts he ‘may enter Into as such usufructuary shall terminate upon ‘the expiration of the usufruct, saving leases of rural lands, which shall be considered as subsisting during the agricultural year. Civil Fruits (deemed to accrue dally) Belong to the usufructuary in proprotion to the time the uusufruct may last I usufructuary has leased the lands or tenements given in usufruct, and the usufruct should expire before the ‘termination of the lease, he or his heirs and successors shall receive only the proportionate share of the rent that ust be paid by the lessee. Dividends, whether cash or stock, are considered cll fruits and belongs to usufructuary (Bachrach v. Seifert) wt a ‘Art. 566. The usufructuary shall be entitled to all the natural, industrial and civil fruits of the property in usufruct. With respect to hidden treasure which may be found on the land or tenement, he shall be considered a stranger. ‘rt. 571. The usufructuary shall have the Fight to enjoy any Increase which the thing in usufruct may acquire through accession, the servitudes established in its favor, and, general, all the benefits inherent therein > Accession — buildings erected by a third party on the land of the naked owner, or buildings constructed by the naked owner with materials owned by someone else. (Gaboya v. Cui) © IF building is erected by naked owner with his own ‘materials, the building's enjoyment belongs to the ‘naked owner and usufructuary is only entitled to rentals for the land occupied by the building. (Gaboya v. Cui) Art. 571. The oe shall have the ut toenjoy any > One can lease it even if the usufruct is granted by @ gratuitous title, > What s leased isthe thing in usufruct not the right of usufruct. > But all contracts entered into by usufructuary shall terminate upon expiration of usufruct. ‘© Exception: Lease of rural lands which shall be considered as subsisting during the agricultural year. ‘Art. 572. The usufructuary may personally enjoy the thing in usufruct, lease it to another, or alienate his right of usufruet, even by a gratuitous title; but all the contracts he ‘may enter into as such usufructuary shall terminate upon, the expiration of the usufruct, saving leases of rural lands, which shall be considered as subsisting during the ‘Art. 590, A usufructuary who allenates or leases his right of usufruct shall answer for any damage which the things In usufruct may suffer through the fault or negligence of the person who substitutes him, > One can dispose or alienate it even if the usufruct is granted by a gratuitous ttle. > Whats alienated or encumbered is the right of usufruct no the thing in usufruct, > Butall contracts entered into by usufructuary shall terminate upon expiration of usufruct. ©The relation between the naked owner and usufructuary is not affected by the usufructuary’s transfer of the usufruct to another person.© Hence, there is stil vicarious liability on the part of the usufructuary for the fault or negligence of the person who substitutes him. > Usufructuary rights are subject to attachment or execution. (Reyes v. Grey) 10.Right to make Improvements __ Art. 579. The usufructuary may make on the property held in usufruct such useful improvements or expenses for mere pleasure as he may deem proper, provided he does not alter its form or substance; but he shall have no right to be indemnified therefor. He may, however, remove such improvements, should it be possible to do so without damage to the property. ‘Art. 580. The usufructuary may set off the improvements he may have made on the property against any damage Rights Obligations Make use in accordance with the purpose for which they are intended. Return them in that condition. Basically, not responsible for wear and tear. Indemnity owner for deterioration ifit suffered due to his fraud or negligence. tothe same. > Usufructuary may make useful improvements or expenses for mere pleasure > Limitation: Does not alter its form or substance. > Usufructuary has no right to be indemnified but he may remove it if Its possible to do so without damage to the property. > Usufructuary may set off the improvements against the damage. D. Rights and Obligations of a Usufructuary over Specific ‘Types of Usufruct Dat. Usufruct over things which deteriorate Art, 573. Whenever the usufruct includes things which, without being consumed, gradually deteriorate through wear and tear, the usufructuary shall hve the right to make use thereof in accordance with the purpose for which they are intended, and shall not be obliged to return them at the termination of the usufruct except in their condition at that time; but he shal be obliged to indemnify the owner for any deterioration they may have D.2. Usufruct over consumables (an instance of abnormal usufruct and sometimes referred to as quasi-usufruct because from is not really preserved. This is really a simple loan.) ‘Art, 574, Whenever the usufruct includes things which cannot be used without being consumed, the usufructuary shall have the right to make use of them under the obligation of paying their appraised valve at the termination of the usufruct, if they were appraised when delivered, In case they were not appraised, he shall have the right to retum at the same quantity and quality, or poy their current price at the time the usufruct ceases. Rights Obligations Make use (consume) fappraised when delivered = pay appraised value at termination. If not appraised — return the same quantity and quality OR pay their current price at the time the usufruct, ceases. D.3. Usufruct Over Trees 3 of his frau ‘Art. 575. The usufructuary of fruit-bearing trees and shrubs may make use of the dead trunks, and even of hose cut off or uprooted by accident, under the obligation to replace them with new plants. Art. 576. If in consequence of a calamity or extraordinary event, the trees or shrubs shall have disappeared in such considerable number that it would not be possible or it would be too burdensome to replace them, the usufructuary may leave the dead, fallen of uprooted trunks atthe disposal ofthe owner, and demand thatthe latter “ and‘Situation “Rights ‘Obligations: ‘Situation Rights ‘Usufructuary of | Make use of dead | But you must InGeneral | Enjoy all benefits which it may produce fruit-bearing | trunksand even | replace them with according to its nature. trees and those cut off or new plants. GR: Usufructuary cannot do cut down shrubs uprooted by trees. accident. EXCI: Restore some of the things in usufruct Trees orshrubs | May leave the EXC: Improvesome of the things in usufru ea eeoeaTans EXC3: The rows below hehe calamity or at the disposal of extraordinary | the owner event In such a considerable number that it May demand the ‘owner to remove would not be | them and clear possible or too “| the land. burdensome to replace them D.4, Usufruct over Woodland ‘Art. 577. The usufruetuary of woodland may enjoy all the nef ding to its natur I the woodland Is a copse or consists of timber for bullding, the usufructuary may do such ordinary cuting or {elling as the owner was in the habit of doing, and in default of ths, he may do so in accordance with the custom of the place, as to the manner, amount and 1n any case the felling or cutting of trees shall be made in ‘such manner as not to prejudice the preservation of the ond. In nurseries, the usufructuary may make the necessary der the ining row. With the exception of the provisions of the preceding, paragraphs, the usufructuary cannot cut down trees unless it be to restore or improve some of the things in usufruct, ‘and in such case shall first inform the owner of the necessity for the work. With these exceptions, he must inform first the owner of the necessity for the work. Woodland is | May cut or fell as the owner was in the acopseor | habit of doing. consist of timberfor | ifowner did not have such habit, then in bi ing, accordance with the custom of the place, sto the manner, amount, and season, Manner: Not to prejudice the preservation of the land. ‘Make necessary thinnings in order that the remaining trees may properly grow. Nurseries D.A, Usufruct over action to recover property. ‘Art. 578. The usuffuctuary of an action to recover real property or a real right, or any movable property, has the right to bring the action and to oblige the owner thereof to glve him the authority for this purpose and to furnish him whatever proof he may have. Ifin consequence of the enforcement of the action he acquires the thing claimed, the usuftuct shall be limited to the fruits, the dominion remaining with the owner. > Property involved: © Real property © Realright © Movable property > Rights: (© Bring the action © Defend (bats) (© Oblige owner to give him authority for this purpose © Oblige owner to furnish him whatever proof he may have > Ifin consequence of this he acquires the thing claimed (© Usufructis limited to the fruits (© Dominion remains with the owner D.S. Usufruct over Part of a Co-owned property ("Eto ung sinasabi ni sit na administration and collection of fruits but 1 placed it here kasi specific type of usufruct naman siya)‘common shall exercise all the rights pertaining to the ‘owner thereof with respect to the administration and the collection of fruits or interest. Should the co-ownership cease by reason of the division of the thing held in common, the usufruct of the part allotted to the co-owner all belong to the usufructuary. > Exercise all rights pertaining to the owner thereof with respect to: © Administration © Collection of fruits or interest Ifthe co-ownership ceases due to the division of the thing held in common, usufruct of the part allotted to the co-owner shall belong to the usufructuary. D.6, Usufruct Over Flock or Herd ‘Art, $82, The usufructuary of a part of a thing held In ‘Art. 591. Ifthe usufruct be constituted on a flock or herd of livestock, the usufructuary shall be obliged to replace with the voung thereof the animals that die each year from natural causes, or are last due to the rapacity of beasts of prey. If the animals on which the usufruct is constituted should all perish, without the fault of the usufructuary, on ‘account of some contagious disease or any other uncommon event, the usufr all fulfil hi ‘obligation by delivering to the owner the remains which may have been saved from the misfortune, ‘Should the herd or flock perish in part, also by accident and without the fault of the usufructuary, the usuffuct th red, Should the usufruct be on sterile animals, it shall be considered, with respect to its effects, as though constituted on fungible things, Usufruct constituted on a flock of herd or livestock > Situation #1: Animals due each year due to (1) natural causes or (2) lost due to rapacity of beasts of prey. (© Usufructuary obliged to replace them with the young, > Situation #2: Animals all perish without the fault of the usufructuary due to (1) some contagious disease or (2) uncommon event © Usufructruary shall deliver to the owner the remains which may have been saved from the misfortune. > Situation #3: Herd or flock perish in part due to accident and without the fault of the usufructuary ‘© Usufruct continues on the part saved. > Situation #4: Usufruct on sterile animals © Itshall be considered, with respect to its effects, as through constituted on fungible things. D.7. Usufruct over Credits Art. 599. The usufructuary may claim any matured credits which form a part of the usufruct if he has given or gives the proper security. If he has been excused from giving security or has been able to give It, or if that given is not sufficient, he shall. authorizatic or of the court in default thereof, to collect such credits. The usufructuary who has given security may use the ‘capital he has collected in any manner he may deem proper. The usufructuary who has not given security shall invest the said capital at Interest upon agreement with the ‘owner: in default of such agreement, with judicial authorization; and, in every case, with security sufficient to reserve the integrity of the capital in usufruct. >If he has given the proper security © May claim any matured credit which forms part of usufruct © May use the capital he has collected in any manner he may deem proper > the has been excused from giving or has not been able to give it or what he gave Is insufficient ‘© He may collect the credits but he needs: * Authorization of the owner * In default, authorization of the court. © Shall invest the capital at interest upon agreement ‘with the owner and with sufficient security to preserve the integrity ofthe capital in usufruct. © Ifo agreement, with judicial authorization and With sufficient security to preserve the integrity of the capital in usufruct, D.8. Usufruct over Mortgaged Immovable ‘Art, 600. The usufructuary of a mortgaged Immovable shall a fF wh mMottaage was constituted, ‘Should the immovable be attached or sold judicially for the payment of the debt, the owner shall be liable to the «usuffuctuary for whatever the latter may lose by reason there: > Usufructuary no obliged to pay the debt for the security of which the mortgage was constituted. > Ifimmovable attached or sold judicially for the payment of the debt, owners liable to the usufructuary for whatever the latter loses by reason. thereof.E.Extinguishment of Usufruct ‘Nt. 603, Usufruct Is extinguished: (1) By the death of the usufructuary unless a contrary Intention clearly appears; (2) By the expiration of the period for which it was constituted, or by the fulfilment of any resolutory condition provided in the ttle creating the usufruct; (2) By merger of the usufruct and ownership in the same person; (4) By renunciation of the usufructuary: (5) By the total loss ofthe thing in usufruct; (6) By the termination of the right of the person constituting the usufruct; __(7) By prescription, — peenaammeaaanl ‘Ar. 611. A usufruct constituted In favor of several persons thing at the time of ts constitution shall not be extinguished until death of the last survivor ‘At, 605, Usufruct cannot be constituted in favor of @ town, corporation, of association for more than SO years. Ifit has been constituted, and before the expiration of such period the town Is abandoned, or the corporation or association is dissolved, the usufruct shall be extinguished by reason thereof. ‘Art, 606. A usufruct granted for the time that may elapse before a third person attains a certain age, shall subsist for the number of years specified, even ifthe third person should die before the period expires, unless such usuftuct to een extciak tented ony inconsdeaton othe existence fat 604. ifthe thing even Hr osuTTua shoud be Yost onlin | part, the right shall continue on the rer 1, The death of the usufructuary, unless 2 ane intention clearly appears; ‘a, Usufruct constituted in favor of several persons is not extinguished until the death of the last survivor. b. Usufruct in favor of a town, corporation, or association is extinguished regardless of period stipulated wher |, The town is abandoned or Hi. Corporation or association Is dissolved _Usufruct granted for the time that may elapse before a 3rd person attains a certain age shall subsist for the number of years specified even if, 3rd person dies before period expires. [Unless such usufruct has been expressly granted only in consideration of the existence of such person 2. Expiration of the period for which it was constituted, or fulfillment of resolutory condition provided in the title, 3. SOyears— limit of usufruct constituted in favor of a town, corporation, or association. 3. Merger of the usufruct and ownership in the same personality 4, Renunciation of the usufructuary 5. Total loss of the thing in usufruct. a. Ifonly partly lost, right continues on the remaining part. 6. Termination of the right of the person constituting the usufruct. 7. Prescription a. Property subject of usufruct is acquired by another person through prescription. b. Acquisitive prescription by a stranger either of the usufruct or of the naked ownership (beda) 8 Other causes 2. _ Non-fulfllment of conditions (Tolentino) b. Any cause agreed upon by parties as ground for termination (Tolentino) &Annulment/rescission of contract constituting the usufruct (Tolentino and Beda) d. Special causes for extinguishment of legal usufructs (Tolentino) fe, Mutual consent (Beda) Emancipation of a child (Beda) F. Effects of Termination ‘Art, 612. Upon the termination of the usufruct, the thing inusufruct shall be delivered to the owner, without rejudice to the right taining usufructuary or his hels for taxes and extraordinary ‘expenses which should be reimbursed. After the delivery has been made, the security or mortgage shall be ancelled. 4. The thing in usufruct shall be delivered to the owner. a. Without prejudice to the right of retention pertaining to the usufructuary or his heirs for taxes and extraordinary expenses which should be reimbursed. 2. After delivery, security or mortgage is cancelled G. Effects of Loss of Building In Usufruct ‘Art. 607. Ifthe usufruct is constituted on immovable property of which a bullding forms part, and the latter should be destroyed in any manner whatsoever, the sruetuary shall have a fF the tan the materials, ‘The same rule shall be opplied if the usufruct is constituted on a building only and the same should be destroyed. But aon fa oeaitdiatlsnig cera + building, he shall i the lan ana cake ui ofthe materials, being obliged to pay to the usufructuary, during the continuance of the usufruct, the interest upon the sum equivalent to the value of the and and of the materials.Art. 608. ifthe usufructuary shares with the owner the Insurance of the tenement given in usufruct, the former shall.in case o que in th f building, should one be constructed, OR shall receive the Interest on the insurance indemnity the owner does nat wish to rebuild, Should the usufructuary have refused to contribute to the Insurance, the owner insuring the tenement alone, the {attec shall receive the full amount of the insurance Jncomnity in ase of loss, saving always the right eranted to inthe preceding article. Situation #11: Usufruct over land which Includes the bbullding and the building is destroyed. (© Usufructuary shall have aright to make use of the land and the materials (© Usufructis extinguished only by total loss of the thing subject of the usufruct no partial loss. > Situation #2: Usufruct over building only and the bullding Is destroyed. (© Usufructuary has the right to make use of the land, and materials. © Butif owner wishes to construct another building, he shall have a right to occupy the land and to make use of the materials. ‘© Usufructuary would be entitled to the interest upon the sum equivalent to the value of the land and of the materials during the continuance of the usufruct. > Situation #3: Usufruct shares with owner the Insurance and there was loss. (© anew building is constructed, usufructuary continues in the enjoyment of the new building © owner does not rebuild, usufructuary receives, the Interest on the insurance indemnity. > Situation #4: Owner insures the tenement alone and, there was loss. © Owner shall receive full amount of the insurance Indemnity © Usufructuary shall have a right to make use of the land and materials or to the interest. 1H. Effects of Expropriation ‘Art. 609. Should the thing in usufruct be expropriated for public use, the owner shall be obliged either to replace it thing of the same value and of simils conditions, OR to pay the usufructuary the legal interest on unt of the indemnity for iod oft usufruct. If the owner chooses the latter alternative, he shall give security for the payment of the interest. > Owner shall be obliged either: ‘© Toreplace it with another thing of the same value and of similar conditions; oF © Pay usufructuary the legal interest on the amount of the indemnity for the whole period of the usufruct. * Ifowner chooses this, he shall give security for the payment of the interest \.effects of Bad Use ~ Usufructuary not extinguished ‘Art. 610, A usufruet Is not extinguished by bad use of the thing in usufruct; but ifthe abuse should cause considerable injury to the owner, the latter may demand that the thing be delivered to him, binding himself to pay annually to the usufructuary the net proceeds of the same, after deducting the expenses and the compensation ‘which may be alowed him for its administration. > Usufruct is not extinguished by bad use of the thing in usufruct > But if abuse causes considerable injury to the owner © Owner may demand that the thing be delivered to him. ‘© Owners then bound to pay annually to the usufructuary the net proceeds of the same, after deducting the expenses and compensation which may be allowed for him for its administration cases Alunan v. Veloso (52 Phil 545) F:Alunan filed an account for the settlement of the estate of deceased Mr. Hernaez. A partition of the property was already approved by the court which, ‘among others, awarded to the wife money. Veloso argues that since the widow's right is only a usufruct (ganun daw talaga before), and there can be no usufruct of money since it isa fungible thing, the adjudication of money to the wife was an error. H: Widow can stil receive money. Its incorrect to say that there can be no usufurct of money, because it isa fungible thing, Usufruct can be constitued over consumable and fungible things. Belonio v. Novello (105 Phil 756) F: Spouses Togle sold a land with a right to repurchase in favor of Aposagas. Aposagas has a right of usufructuary in that land. The 10 year redemption, period lapsed and the Sps. Togle tried to pay after that arguing that the contract was an equitable mortgage and not a contract of sale with a right of repurchase. ‘One of the arguments they used to support that the transaction was an equitable mortgage was that the vendee was given a usufruct.Hi: This is a deed of sale with a right to repurchase That argument was acually in favor of the vendee because tusufruct is an element of ownership which is involved in a contract of sale. If usufruct was not transferred to the vendee (but in this case it was), then ownership will not pass and it will only be an equitable mortgage wherein the Sps. Togle retain naked ownership. Mercado v. Real (67 Phil 608) F: Mercado is a usufructuary while Rizal is a naked owner. The naked owners made the usufructuaries pay the taxes aver the land by deducting the tax from their share In the products. Now, the usufructuary are trying to claim the money back since its the naked ‘owner who Is responsible for tax on the capital. The naked owner argues that the case is premature since iu code provides that I the usufruetuary advances the payment for the tax on capital, they will recover it only at the termination of the usufruct. i The action Is not premature, That article only anplies if the taxes are paid by the usufructuary In this case, the usufructuary didnot pay, they did not give consent to such as it was the naked owner who dedcuted the payment of the tax from the usufructuary’s share in the products. da. De Albor v, Carandona (106 Phil 855) F: Througha a will, deceased Fable gave the naked ‘ownership to Vda while the usufruct for life was given to Carandang, A fire occurred and damaged the land and destroyed the buildings. A Chinese man offered to lease the property which caused a disagreement on who had the right to cede the property by lease. The naked owner asserts that the usufructuary's right of usufruct was extinguished when the building was destroyed. 4: Carandang’s right to life usufruct subsists and is, upon both the building and land. The life usufructuary covers both the buildings and the lands since the building cannot exist without the land, The land, being an indispensable part of the rented premises, cannot be considered as having no rental value whatsoever. Hence, since it is on both land and building, the life usufruct is not extinguished by mere destruction of the building because the civil code provides that itis only upon total loss of the thing in usufruct will the usufruct be extinguished. ard of Ass Appeals v. Sor 234) F: Samar Mining constructed a gravel road for convenient hauling of ts ores. The Board then assessed the road for real estate tax purposes but ‘Samar refused to pay saying that the road was constructed on a public land. H: The road is not taxable. Real tax, being a burden upon capital, should be patd by the owner of the land and not by a usufructuary. Appellee is only a partial usufructuary. The road is exempt from real tax because the road belongs to the national government, and since the government is exempt, it cannot be levied upon. Note: Sir found it problematic that the decision used the word ‘partial usufructuary’ Pichay v. Qverol (14 Phil 386) : Pichay conveyed 1/3 of her undivided interest on certain parcels of land as payment of a debt while retaining usufruct over it. She died and a partition was soon made. 1H: Usufruct survives the partition. If a community, ceases due to division of the thing possessed in common, the usufruct of the part awarded to the owner shall appertain to the usufructuary. eves v. Grey (21 Phil 73) F: The wife of Reyes died intestate which gave him usufructuary in the estate but this was sold under execution. The other heirs were adjudicated parts of the estate. Reyes now sues them as to claim payment for his usufructuary in the property saying that a usufructuary Interest in real property is not such an Interest or right that can be sold under execution. H: Reyes cannot claim payment for it anymore. A usufructuary interest in real property is an interest or right that can be sold under execution. CC 480 provides that the usufructuary may alienate his right to the usufruct and this was what was sold under execution, ‘Tufexis v. Municipal Council of Guinoboton (32 Phil 629) : Tufexis acquired at a public sale a piece of property ‘wherein a building was constructed by virtue of a concession intended for a public market granted by the Spanish government to one Pardo on a land belonging to the municipality . The building was then destroyed by a fire and Pardo’s father sold his rights to the concession to Tufexis. Tufexis wanted to reconstruct the building but was prevented. 1H: Such right or property cannot be sold on public auction. Although the building was constructed at the expense and with money of the grantee, itis still the property of the state and only transferred to the grantee so that he may enjoy usufruct of its floor ‘space. But upon termination of the period, the right of usufruct ceases and reverts to the municipalitytunicipality o fanaois : Municipality has been leasing fishery lots on municipal waters and among the lessee Is Manaois. ‘Manaois was unable to enter the property as another man was preventing them. Despite asking help from the municipality, there call was unheeded. The lower court ruled in favor of Manaois and levied among ‘others the 40 fishery lots leased to 35 different persons. H: The fishery or municipal waters or its usufruct cannot be levied upon and subjectto execution as there are powerful reasons against it. IF allowed, it deprives the municipality of its substantial income. ‘Lopez v. Constantino (74 Phil 160) F: Constantino donated to her daughter parcels of land with buildings and improvement subject to the condition that portions of the rent received by Lopez shall be given to Constantino as her life pension. This condition was annotated on the certificate title. The fire destroyed all the buildings and improvement. Lopez sought to cancel the annotation on the theory ‘that since the fire destroyed the building from which the rents came from, the life pension terminated. Constantino opposes this and states that the condition affects both land and building. H: The condition attached to both land and building. Even assuming that the obligation to pay rents is an encumbrance on the building alone, this makes Constantino a co-usufructuary. Based on NCC 469 and 517, the obligation of Lopez has not yet been extinguished despite the fire and even if the encumbrance is on the building alone. Boluron v, Navarro (79 SCRA 309) F: Spouses Paraiso owned a residential lot which they bartered with Spouses Baluran under certain conditions. The grandson of the spouses Paraiso filed with CFI to recover that lot stating that he acquired the land from his mother via donation. H: This isnot a barter but is one of or akin the other is. the use or material possession or enjoyment of each ‘other's real property (or usufruct). The manner of terminating or extinguishing the right of usufruct is primarily determined by the stipulations ofthe parties inthis cases the happening of the event agreed upon. Polad_v, Navorro (46 SCRA 354) F:Palads were seeking to terminate trusteeship created in favor of the Luis Palad High School. The purpose of the trusteeship was to erect or establish a high schoo! in the town of Tayabas financed with the income of said lots. They argue that since the school was already established, they are entitled to the reversion of the two lots in their favor and to the dissolution and/or termination of the trusteeship. Hi: The Court ruled that since the school continues to operate and is being maintained, with the income from the two parcels of land subject of the trust, and donations from the government and other sources, the devise has not yet failed. The testator intended the sald testamentary grant or devise of land for the establishment and maintenance of a high school to be permanent and not subject to any resolutory or other condition.