Articles 573-587

Alman-Najar Namla
Property
XU-College of Law Zamboanga
Article 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 their 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.
Effect of Deterioration on the
Usfructuary
(a) deteriorate because of NORMAL USE,
the usufructuary is not responsible.
(b) deteriorate because of an event or act
that endangers their preservation.
(c) deteriorate because of fraud (dolo
incidente or fraud amounting to an
EVASION of the obligation to preserve) or
NEGLIGENCE (culpa), the usufructuary is
responsible.
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 the same quantity and quality
(1) Abnormal Usufruct on
Consumable Things

This is another instance of abnormal usufruct, and is
sometimes referred to as a quasi-usufruct because the form
and substance is not really preserved. Thus, this is really a
SIMPLE loan. It has been included however in the title on usufructs
because in what are called UNIVERSAL USUFRUCTS,
both non-consumable and consumable properties are included.
While we seldom fi nd usufructs on consumable properties alone,
it is a fact that they indeed exist. Thus, the Supreme Court has
held that even money may be the object of a usufruct. (Alunan
v. Veloso, 52 Phil. 545; see 4 Manresa 432-433).
(2) RULES for this QUASI-
USUFRUCT

(a) The usufructuary (debtor-borrower) can use them (as if
he
is the owner, with complete right of pledge or alienation).
(b) BUT at the end of the usufruct, he must
1) pay the APPRAISED value (if appraised when fi rst
delivered)
2) Or, if there was no appraisal, return same kind,
quality, and quantity OR pay the price current at
the termination of the usufruct (therefore not at the
original price or value).
Art 575
The usufructuary of fruit-bearing
trees and shrubs may make use of the
dead trunks, and even of those cut off
or uprooted by accident, under the
obligation to replace them with new
plants.
(1) Usufruct on Fruit-Bearing Trees
and Shrubs

(a) Note the phrase fruit-bearing trees and
shrubs replacing
vineyards and olive orchards used under
the old Civil
Code but eliminated in view of their non-
existence in the
Philippines.
(b) This is a special usufruct.
(2) Rights under this Usufruct
The usufructuary can use (even for fi
rewood, though he
is NOT the naked owner) the following:
(a) dead trunks
(b) those cut off or uprooted by accident
BUT he must REPLACE them with new
plants (for indeed,
he was not the naked owner).
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 or uprooted trunks at the
disposal
of the owner, and demand that the latter remove them
and
clear the land.
Art. 577
The usufructuary of woodland may enjoy all
the benefi ts which it may produce according to its nature.
If the woodland is a copse or consists of timber for building,
the usufructuary may do such ordinary cutting or felling
as the owner was in the habit of doing, and in default of this,
he may do so in accordance with the custom of the place, as
to the manner, amount and season.
In any case the felling or cutting of trees shall be made
in such manner as not to prejudice the preservation of the
land.
In nurseries, the usufructuary may make the necessary
thinnings in order that the remaining trees may properly
grow.
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 he shall fi rst inform the owner of the necessity
for the work.
Special Usufruct over a
Woodland
This is not a common or frequent usufruct because:
(a) natural resources (including forest or timber lands)
belong
to the State (Regalian Doctrine under Art. XII, Sec. 3 of
the 1987 Philippine Constitution);
(b) a license is generally essential if one desires to gather
forest products. (See Sec. 47, Revised Administrative
Code).
Obligations of Usufructuary
(a) must bear in mind that he is not the owner, and
therefore,
in the exercise of the diligence in caring for the property
(required under Art. 589 he must see to it that the
woodland
is preserved, either by development or by replanting,
thus he cannot consume all, otherwise nothing would be
left for the owner. (See 4 Manresa 439).
Obligations of Usufructuary
in the cutting or felling of trees, he must
1) follow the owners habit or practices;
2) in default thereof, follow the customs of the place (as
to MANNER, AMOUNT and SEASON) (Art. 577)
all without prejudice to the owner, for while he
can USE, he cannot ABUSE. (See 4 Manresa 439).
[NOTE: The rule above is applicable if the woodland:
a) is a COPSE (thicket of small trees),
b) or consists of timber for BUILDING.].
3) if there be no customs, the only time the usufructuary
can CUT DOWN trees will be for REPAIR or
IMPROVEMENT, but here the owner must fi rst be informed
(the owner, thus, does not need to consent).
Obligations of Usufructuary
(c) cannot alienate the trees (for the trees are not
considered
fruits) unless he is permitted, expressly or impliedly by the
owner (as when the purpose of the usufruct was really
to sell the timber) or unless he needs the money to
do some repairs (but in the last case, the owner must be
informed). (See 21 Corpus Juris 950-951).
Bar Question
A is the usufructuary of a parcel of land belonging to B. He
(A) transferred his usufructuary right to C who took
possession
of the land. While possessing it, C, without the knowledge
of
A, cut 100 coconut trees on the land. Is A liable to B, for the
damages caused by C, on the land under usufruct? Give
your
reasons.
ANS.: Yes, A is liable to B, for a usufructuary (A) who
alienates his usufructuary right, is liable for the negligence of
his substitute (C). (Art. 590). It is clear that C had no right to
cut down the trees, for the article on woodland (Art. 577) cannot
apply. There is a vast difference between a woodland and
coconut land. In the former, the usufructuary can in certain
cases cut down the trees precisely because the way to enjoy
the usufruct would be to convert the timber into lumber; in the
case of coconut land, the usufruct extends merely to the fruits
produced. At any rate, it would have been different had the
naked owners approval been obtained.
Art. 578
The usufructuary 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
give him the authority for this purpose and to furnish him
whatever proof he may have. If in consequence of the
enforcement
of the action he acquires the thing claimed, the
usufruct shall be limited to the fruits, the dominion remaining
with the owner.
What the Usufructuary Can
Demand

To bring the action, the usufructuary can
DEMAND from
the owner:
(a) authority to bring the action (usually a
special power
of attorney).
(b) proofs needed for a recovery
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 indemnifi ed therefor. He may, however, remove
such
improvements, should it be possible to do so without
damage
to the property.
Useful and Luxurious
Improvements

The usufructuary has the RIGHT (not the duty) to
make:
(a) useful improvements;
(b) luxurious improvements (for mere pleasure).
BUT
(a) He must not alter the form or substance of the property
held in usufruct (he cannot build a house if to do so would
destroy an orchard, if the usufruct is on an orchard, unless
the owner consents).
Useful and Luxurious
Improvements

(b) He is NOT entitled to a REFUND (otherwise he might
improve the naked owner out of his property) (Castan), but
he
may
1) either remove the improvements if no substantial
damage to the property in usufruct is caused (Art.
579);
2) OR set off (compensate) the improvements against
damages for which he may be liable. (Art. 580).
A
Art. 580
The usufructuary may set off the
improvements
he may have made on the property
against any damage to
the same.
Rules
(a) If damage exceeds the value of the improvements,
usufructuary
is still liable for the difference.
(b) If the value of the improvements exceeds the damage,
the
difference does not go to the usufructuary, but accrues
instead in the absence of a contrary stipulation in favor
of the naked owner, otherwise, it is as if the usufructuary
would be entitled to a partial refund in cash.
Requisites of Set-off
(a) The damage must have been caused by
the usufructuary.
(b) The improvements must have
augmented the value of
property.
Art. 581
The owner of property the usufruct of
which
is held by another, may alienate it, but he
cannot alter its
form or substance, or do anything
thereon which may be
prejudicial to the usufructuary.
Rule in Case of Succession

If the naked owner bequeathes (if personal
property) or
devises (if real property) to another thru a
will, the legatee or
devisee should respect the usufruct. (See
Art. 934, last paragraph).
Double Sale by Naked Owner
The naked owner is ordinarily not allowed to sell the usufruct
to another after having sold it fi rst to the usufructuary;
but if he does so, Art. 1544 relating to a double sale applies.
Thus, if the second buyer in good faith registers the usufruct,
he can oust the fi rst buyer who did not register, even though
the latter be in possession. The right of the fi rst usufructuary
would be to proceed against the naked owner for breach of the
warranty against eviction.
Art. 582
The usufructuary of a part of a thing held in
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 shall belong to the
usufructuary.
COMMENT
Effect of Partition

(a) If there be a partition, the usufructuary continues to have
the usufruct of the part allotted to the co-owner concerned.
(Art. 582).
(b) If the co-owners make a partition, without the intervention
of the usufructuary, this is all right, and the partition
binds said usufructuary. (Pichay v. Querol, 11 Phil. 386).
Necessarily however, the naked owner must also respect
the usufruct. (Ibid.).
Chapter 3
Obligations of the Usufructuary
Usufructuary has 3 Obligations
(a) before the usufruct (like the making of
inventory)
(b) during the usufruct (like taking due care
of property)
(c) after the usufruct (like the duty to return
and indemnify
in the proper cases).
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 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 fulfi ll the
obligations
imposed upon him in accordance with this Chapter.
Obligation Re the Inventory and
the Security
This article speaks of two obligations (inventory
andsecurity). They are not necessary however before
the right to the usufruct begins; they are merely
necessary before physical possession and enjoyment of
the property can be had, thus if the usufructuary fails to
give security (unless exempt) the usufruct still begins but
the naked owner will have the rights granted him under
Art. 586. (See 3 Sanchez Roman 574-575).
Requirements for the making of
Inventory
(a) The owner (or his legitimate representative) must be
previously NOTIFIED (his presence or absence is not
important). (Purpose of notice: To enable him to correct
errors in the inventory; if he desires).
(b) The condition of the IMMOVABLES must be described.
(c) The movables must be appraised (in view of easy
deterioration
or loss).
(d) As a rule, NO FORM is required except that when there
are real properties, Art. 1358 demands a public instrument
to affect third parties.
Requirements for the making of
Inventory
(e) Expenses are to be borne by the usufructuary, since the
duty is his. (4 Manresa 451-452).
(f) Effect of not making inventory (except when excused)
same as when the security is not given. (See Arts. 586
and 599; see also 3 Sanchez Roman 575-576).
(g) When inventory is not required.
1) When no one will be injured thereby (as in the case
of usufruct over a periodical pension or incorporeal
right) (See Art. 570) provided the naked owner
consents, for the law says may. (Art. 585). (See 4
Manresa 464-467).
2) In case of waiver by the naked owner or the law (See
4 Manresa 464-467), or when there is a stipulation
in a will or contract.
Giving of Security
Purpose: To insure faithful compliance of the
duties of the usufructuary (whether
required during or at end of the usufruct
like the duty to return). (See 4 Manresa
455-456).

It has no specifications as to form.
Giving of Security
(c) When Security Is Not Required:
1) When no one will be injured thereby (NO PREJUDICE).
(See Art. 585). Example: in the usufruct over
a periodical income or life annuity. Provided naked
owner consents for the law says may. (Art. 585).
2) When there is waiver by the naked owner (See 4
Manresa 464-465), or there is a stipulation either
in a will or by contract.
3) When the usufructuary is the donor of the property
(who has reserved the usufruct). (The naked owner
should be grateful enough not to require the security).
(Art. 584).
Giving of Security
4) When there is a parental usufruct (that is, in the
case of parents who are usufructuaries of their childrens
property, except when the parents contract
a second or subsequent marriage, PROVIDED that
each childs property does not exceed P50,000 in
which case, the parents have to fi le a bond (See Art.
225, the Family Code) not as usufructuary, but as
guardian or administrator.
5) When there is a caucion juratoria, which takes the
place of a bond, and is made by taking an oath to
fulfi ll properly the duties of a usufructuary, BUT this
is available only under the conditions prescribed in
Art. 587 (promise under oath).
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 childrens property, except when the
parents
contract a second marriage.
Usufruct of Donor or Parents
(a) See discussion under the preceding article.
(b) Note that the law says donor, not seller (for sale is an
onerous contract).
(c) While the law says donor, the word remitter can also
be used, for remission is gratuitous.
(d) The formalities of donation or remission must be complied
with.
(e) Second marriage may be third, fourth, etc. or any
subsequent marriage, as the case may be.
(f) In case of remuneratory (with a future burden) donation,
the parties may stipulate on the necessity of a security.
(See 4 Manresa 460).
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 thereby.
Effect if No One Will Be Injured

(a) See discussion under Art. 583.
(b) The law says may, therefore the usufructuary is not
always excused, the exemption being dependent on the
naked owner. In case the naked owner refuses to make
the exemption, appeal can be had before the courts, and
the judge should consider all the circumstances in deciding
whether or not to give the grant. (See 4 Manresa
464-467).
(c) While ordinarily, it is the naked owner who grants the
exemption, the grant may be made by somebody else authorized
by said naked owner. (See 4 Manresa 466-467).
Art 586
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 certifi cates or
deposited in a 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
usufructuary gives security or is excused from so doing, retain
in his possession the property in usufruct as administrator,
subject to the obligation to deliver to the usufructuary
the net proceeds thereof, after deducting the sums which
may be agreed upon or judicially allowed him for such administration.
(1) Effects of Failure to Give
Security (Unless Exempted)
(a) On the Rights of the Naked Owner:
1) He may deliver the property to the usufructuary
(since the article gives the owner a right, and not a
duty) (but even if delivery is made, the naked owner
may still later on demand the needed security). (TS,
Mar. 12, 1903).
2) OR the naked owner may choose RETENTION of
the property as ADMINISTRATOR (here the usufructuary
gets the net proceeds, minus administration
expenses, the amount of which is fi xed by mutual
agreement or by the courts).
3) OR the naked owner may demand RECEIVERSHIP
or ADMINISTRATION (by another) of the REAL PROPERTY, sale of movable,
conversion or deposit of credit instruments, or investment of cash or profi ts.
(b) On the Rights of the
Usufructuary:

1) The usufructuary cannot possess the property till he
gives the security.
2) The usufructuary cannot administer the property,
hence, he cannot execute a lease thereon. (4 Manresa
471-472).
3) The usufructuary cannot collect credits that have
matured, nor invest them unless the Court or the
naked owner consents. (Art. 599).
[NOTE: This No. (3) applies also even if the
usufructuary is EXEMPTED from giving security.
(Art. 599).].
4) But the usufructuary can alienate his right to the
usufruct (since failure to give the security did not
extinguish the usufruct). The grantee may of course
possess, the moment he gives security. (See 4 Manresa
471-472; see also Art. 603).
Art. 587
If the 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 in a 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 for 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 their delivery to him upon
his giving security for the payment of the legal interest on
their appraised value.
Caucion Juratoria
The promise under oath is called a caucion juratoria
a sworn duty to take good care of the property and
return
same at the end of the usufruct. It takes the place of the
bond or
security and is based on necessity and humanity (See 3
Sanchez
Roman 578) as when a poor family acquires by inheritance,
the
usufruct of a badly needed house. (See 4 Manresa 473-
474).
Reqs of before Caucion
Juratoria is allowed
(a) proper court petition
(b) necessity for delivery of furniture,
implements or house
included in the usufruct
(c) approval of the court
(d) sworn promise.
Rule in Case Usufructuary is
Exempted from the Duty
to Give Security

Art. 587 does not apply when the
usufructuary is exempted
from giving security. It applies only if he is
required
but cannot afford to give the security.
THANK YOU!