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Usufruct

Outline
Introduction
II. Classes
III. Rights of the Usufructuary
IV. Rights of the Owner
V. Obligations of the Usufructuary
VI. Obligations of the Owner
VII. Special Types of Usufruct
VIII. Extinguishment of Usufruct
I.

Introduction
1.
2.
3.

Concept
Requisites
Classes

INTRODUCTION

Concept
Right to enjoy the property with the
obligation to preserve its form and
substance
Real right, temporary in character that
authorizes the holder to enjoy all
advantages derived from a normal
exploitation of anothers property,
according to its destination or purpose, and
imposes the obligation of restoring, at the
time specified either the thing itself or its
equivalent

INTRODUCTION

Natural Characteristics
Preserve

the form or substance of the

thing
Usufruct is extinguished upon the death
of the usufructuary
Only natural because instrument
constituting the usufruct may provide for
contrary intention

INTRODUCTION

Usufruct v. Lease
USUFRUCT

LEASE

Nature of the Always real right


right

Quasi
real/personal right

Creator of
right

Owner of the property

Need not be the


owner

Cause

Passive owner who


allows usufructuary to
enjoy the thing

Active lessor who


makes lessee
enjoy the thing

Extent of
enjoyment

All the utility of the


thing

Particular utility

Origin

Created by law, by will


of parties or by
prescription

Generally, by will
of parties
(exception Art.
448)

INTRODUCTION

Usufruct v. Servitude
USUFRUCT

LEASE

Object

Real or personal
property

Always real

Extent of
enjoyment

All the utility of the


thing

Utility

Classes
1.
2.
3.
4.
5.

Persons Enjoying
Object
Extent
Term
Origin

CLASSES
Number of Persons Enjoying
the Right
1.
2.

Simple
Successive

In donation Art 756


In succession Art 869

CLASSES

Object of the Usufruct


1.
2.

Rights not personal or intransmissible


in character (Art 564)
Things

Normal
constituted

on non-consumable property

Abnormal (Irregular)
constituted

usufruct

on consumable property (quasi-

CLASSES

Extent of the Usufruct


1.

Fruits

2.

Total all fruits


Partial part only

Objects

Universal
constituted

over entire patrimony (Art 598)

Singular
constituted

over individual things or rights

CLASSES

Terms
1.
2.
3.

Pure
Conditional
With a term (period)

CLASSES

Origin of the Usufruct


1.

Voluntary

2.
3.

Intervios either by alienation or


retention of the usufruct
Mortis Causa must be in writing,
otherwise unenforceable under the
statute of frauds

Legal
Prescriptive

Rights of the
Usufructuary
1.
2.
3.

Thing itself
Usufruct itself
Upon expiration of the usufruct

RIGHTS OF
USUFRUCTUA
RY

As to the Thing
1.

Possession and Enjoyment

2.

3.

Receive the fruits


Enjoy any increase through accessions
and servitudes
Half of hidden treasure he accidentally
finds (Art 438)

Lease the thing


Fabie v. David
Make Improvements on the thing

RIGHTS OF
USUFRUCTUA
RY

As to the Usufruct
1.

To mortgage the right of usufruct (Art.


572)

2.

Except parental usufruct

Alienate the usufruct


Except parental usufruct

RIGHTS OF
USUFRUCTUA
Upon Expiration of the
RY
Usufruct
1.
2.

3.

Collect reimbursements from the owner


Retain the thing until there is reimbursement
Indispensable extraordinary repairs made by
the usufructuary for the owner (Art 594)
For taxes on the capital advanced by the
usufructuary (Art. 597)
For damages caused by the usufructuary
Either (a) remove improvements made by him,
but without injuring the property or (b) set off
value of improvements against damages to
property under usufruct. (Art. 581)

Rights of the
Owner During the
Usufruct

RIGHTS OF
OWNER
1.
2.

Retain title to the thing or property


May alienate the property

Not alter the form and substance of the


thing
Not do anything prejudicial to the
usufructuary (Art.581)

May construct buildings, make


improvements and plantings
.
The value of the usufruct is unimpaired
.The rights of the usufructuary are not
prejudiced
3.

Obligations of the
Usufructuary

PRIOR
Make Inventory
Post a Bond

OBLIGATIONS
OF
USUFRUCTUA
DURING
AFTER
RY
Take care of the
thing
Ordinary Repairs
Annual taxes and
charges
Taxes on the fruits
Notice in case of
urgent repairs or
acts detrimental
to ownership
Cost of litigation
over usufruct
Fault/negligence
of
agent/lessee/alien
ee

Return the thing


Pay interest on
the amount spent
by the owner for
XO repairs (Art.
594) or taxes on
the capital (Art
597)
Indemnify the
owner for losses
due to the
negligence of the
usufructuary or of
his transferees

EXTINGUISHM
ENT
1.
2.
3.
4.
5.
6.
7.

Death of usufructuary
Expiration of the period/fulfillment of
resolutory condition
Merger of usufruct and naked
ownership
Waiver
Extinction/Total loss of the property
Resolution or termination of the right
to constitute the usufruct
Prescription

Types of
Usufruct
Usufruct of Pension or
Periodical Income (Art. 570)
Each

payment is considered as fruits


The distribution of benefits (dividends) if
industrial or commercial enterprise shall
be deemed as fruits

Stock dividends belong to usufructruary of


shares of stock.

Apportionment

shall be on the basis of


the ordinary rules governing civil fruits

Types of
Usufruct
Usufruct of Property Owned in
Common (Art. 582)
The

usufructuary takes the place of the


coowner in the management, fruits and
interest
After the partition, the usufruct is
transferred to the part allocated to the
co-owner

Types of
Usufruct

Usufruct of Cattle (Art. 591)


On

sterile stock same rules on


consummable property govern
On fruitful stock

Replace ordinary losses with the young


if part of the stock perishes, the usufruct
continues with the remainder
If all perish, the usufructuary should
deliver the remains to the owner
Note that loss should be due to some
uncommon event

Types of
Usufruct
Usufruct of Vineyards and
Woodlands (Art. 575-576)
The

usufructuary should follow the


practices of the owner
In default thereof, the usufructuary
should follow the customs of the place
The usufructuary should replace dead
trees, unless it would be impossible and
burdensome, in which case he may
demand that the owner clear the land.
NB: Article rarely applied

Types of
Usufruct
Usufruct on a Right of Action
(Art. 578)
The

usufructuary may compel the owner


to support the action with proofs he may
have
After the property is recovered, the
usufruct is upon the thing thus
recovered.

Types of
Usufruct
Usufruct on Mortgaged
Property (Art. 600)
The

owner is liable for damages in case


of foreclosure
The usufructuary is not liable for
mortgage debts

Types of
Usufruct
Usufruct Over Entire Patrimony
(Art. 598)
GR:

Usufructuary is not liable for owners


debts
Exceptions

When it is so stipulated
The

usufruct shall be liable for debts specified


If there is no specification, then he is liable for
debts incurred prior to the constitution of the
usufruct

When Usufruct is in fraud of creditors

Limitations:

debts<value of benefits of the


usufruct, unless contrary intention appears

Types of
Usufruct
Usufruct Over Deteriorable
Property (Art. 573)
The

usufructuary must use it according


to the purpose intended
He is not obliged to return the thing
except in its condition and upon the
termination of the usufruct
He must indemnify the owner for
deterioration due to his fraud or
negligence

Types of
Usufruct
Usufruct of Consummable Property
(Art. 574) [Quasi Usufruct]
If

the things were appraised at delivery, the


usufructuary must pay their appraised
value at the termination of the usufruct.
If they were not appraised, then he must
return the same kind and quality or pay
the current price upon expiration of the
usufruct
In reality, the nature of the transaction is a
loan but was included in the Civil code
because universal usufructs often include
consummable property.

EXTINGUISHM
ENT
1.
2.
3.
4.
5.
6.
7.

Death of usufructuary
Expiration of the period/fulfillment of
resolutory condition
Merger of usufruct and naked
ownership
Waiver
Extinction/Total loss of the property
Resolution or termination of the right
to constitute the usufruct
Prescription

EXTINGUISHM
ENT
Right

Obligation

Owner

Reimburse advances
Cancel bond
Respect agri leases for
the year

Usufructuary Reimbursements and right


to retain for
indispensable XO repair
(plus value; taxes on
capital, damages
sustained by U
Remove improvements if
w/o damage
Set-off values of
improvements against
damages

Return the thing


Unless right to retain for
the plus value for XO
repairs and for taxes on
capital
Pay interest for Os
expenses for XO repairs
Indemnify O for loss due
to Us negligence