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Art. 560. Wild animals are possessed only while they are under one's What is usufruct?
control; domesticated or tamed animals are considered domestic or 1. A right to enjoy the property of another with the obligation of preserving
tame if they retain the habit of returning to the premises of the its form and substance
possessor. (465) 2. Right to enjoy the property of another temporarily, including both the jus
utendi and jus fruendi, with the owner retaining the jus disponendi
Possession of animals 3. In essence, usufruct is nothing else but simply allowing one to enjoy
· Animals may be: another’s propery
1. Wild or animals living in a state of nature independently of and
without the aid and care of man (great white shark, ornate What are the characteristics of usufruct?
wobbegong, brazilian slug) 1. It is a real right of use and enjoyment, (whether registered or not in the
2. Domesticated or tamed, or animals which are wild or savage by Registry of Property. Registering will affect and bind third persons)
nature but have been subdued and made use of by man and 2. Of Temporary duration;
become accustomed to live in a tamed condition (tiger ni Chavit) 3. Transmissible; and
3. Domestic or tame, or any of the various animals which live and are 4. May be constituted on real or personal property, consumable or non-
born and reared, under the control and care of man, lacking the consumable, tangible or intangible, the ownership of which is vested in
instinct to roam freely (dog, cat, carabao, cow) another
· Wild animals may be the object of hunting. They are possessed only if
they are under one’s control. Possession of wild animals are lost when · A person cannot create a usufruct over his own property and at the
they regain their freedom or come under another’s control. same time retain ownership of the same
· Domesticated animals are possessed if they habitually return to the · A usufruct is essentially jus in re aliena, and to be a usufructuary of
premises of the possessor. one’s own property is in law a contradiction in terms and a conceptual
absurdity
Art. 561. One who recovers, according to law, possession unjustly lost, · The essential requisite of usufruct is the right to enjoy the property of
shall be deemed for all purposes which may redound to his benefit, to another
have enjoyed it without interruption. (466) · The usufructuary is entitled to all the fruits of the property with the
obligation to preserve its form and substance
· This article applies to both possession in good faith as well as to · However, the obligation of the usufructuary to preserve is only
possession in bad faith, but only if beneficial to the possessor (like for accidental for the law or the will of the parties may modify or even
purposes of prescription) eliminate it
· The recovery of possession must be according to law – through legal · Two classifications based on whether or not impairment of object is
means; otherwise, the benefit of continuous and uninterrupted allowed:
possession during the intervening period cannot be invoked. 1. Normal, perfect or regular – invovlves non-consumable things
which the usufructuary can enjoy without altering the form or
TITLE VI - USUFRUCT substance, through they may detoriorate or diminish by time or by
use
CHAPTER ONE: USUFRUCT IN GENERAL 2. Abnormal, imperfect, irregular or quasi-usufruct – involves things
which would be useless to the usufructuary unless they are
Art. 562. Usufruct gives a right to enjoy the property of another with the consumed or expended, such as money, grain, liquors, etc
obligation of preserving its form and substance, unless the title
constituting it or the law otherwise provides. (467)
Usufruct Lease

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Nature of right Real Personal b. Partial (constituted only on a part of a thing)


Creator of right Owner of agent May not be the owner 2. As to number of beneficiaries
Origin May be by law, by By contract a. Simple (only one)
contract, by will of b. Multiple (several usufructuaries)
testator, or by i. Simultaneous, or
prescription ii. Successive
Extent of enjoyment All the fruits and all the Certain uses only 3. As to effectivity or extinguishment
uses and benefits of the (those stipulated) a. Pure
entire property b. With a term (may be suspensive or resolutory)
(generally) c. Conditional (may be suspensive or resolutory)
Cause More or less passive Active owner or lessor 4. As to subject matter
owner who allows the who makes the lessee a. Over things (tangible property)
usufructuary to enjoy enjoy b. Over rights (intangible property which are not
the object intransmissible)
Repairs and taxes Usufructuary to pay Lessee not generally
under the obligation to Art. 565. The rights and obligations of the usufructuary shall be those
pay taxes or undertake provided in the title constituting the usufruct; in default of such title, or
repairs in case it is deficient, the provisions contained in the two following
Chapters shall be observed. (470) 


· In case of conflict between the will of the person creating the usufruct
Art. 563. Usufruct is constituted by law, by the will of private persons and the Civil code, the former prevails.
expressed in acts inter vivos or in a last will and testament, and by
prescription. (468) CHAPTER TWO
Creation of usufruct RIGHTS OF THE USUFRUCTUARY
Usufruct may e classified according to how it is created into:
1. Legal, or that created or declared by law Art. 566. The usufructuary shall be entitled to all the natural, industrial
2. Voluntary, or that created by will of the parties (an act inter vivos or an and civil fruits of the property in usufruct. With respect to hidden
act mortis causa) treasure which may be found on the land or tenement, he shall be
3. Mixed or that acquired by prescription considered a stranger. (471)

Art. 564. Usufruct may be constituted on the whole or a part of the Classifications of the rights of the usufructuary
fruits of the thing, in favor of one more persons, simultaneously or 1. As to the thing and its fruits
successively, and in every case from or to a certain day, purely or a. To receive the fruits of the property in usufruct and half of
conditionally. It may also be constituted on a right, provided it is not the hidden treasure he accidentally finds on the property
strictly personal or intransmissible. (469) b. To enjoy any increase which the thing in usufruct may
acquire through accession
Kinds of usufruct defined c. To personally enjoy the thing in usufruct or lease it to
Usufruct may be another
1. As to extent of object d. To make on the property in usufruct such improvements or
a. Total (constituted on the whole of a thing) expenses he may deem property and to remove the

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improvements provided no damage is caused to the


property Art. 567. Natural or industrial fruits growing at the time the usufruct
e. To set-off the improvements he may have made on the begins, belong to the usufructuary.
property against any damage to the same Those growing at the time the usufruct terminates, belong to
f. To retain the thing until he is reimbursed for advances for the owner.
extraordinary expenses and taxes on the capital In the preceding cases, the usufructuary, at the beginning of
2. As to the usufruct itself the usufruct, has no obligation to refund to the owner any expenses
a. To alienate (or mortgage) the right of usufruct except incurred; but the owner shall be obliged to reimburse at the
parental usufruct termination of the usufruct, from the proceeds of the growing fruits,
b. In a usufruct to recover property or a real right, to bring the the ordinary expenses of cultivation, for seed, and other similar
action and to oblige the owner thereof to give him proper expenses incurred by the usufructuary.
authority and necessary proof, and The provisions of this article shall not prejudice the rights of
c. In a usufruct of part of a common property, to exercise all third persons, acquired either at the beginning or at the termination of
the rights pertaining to the co-owner with respect to the the usufruct. (472)
administration and collection of fruits or interests from the
property Right of the usufructuary to pending natural and industrial fruits
3. As to advances and damages This article does not apply to civil fruits.
a. To be reimbursed for indispensable extraordinary repairs
made by him in an amount equal to the increase in value · For fruits growing at the beginning of usufruct, they belong to the
which the property may have acquired by reason of such usufructuary who is not bound to refund to the owner the expenses of
repairs cultivation and production incurred.
b. To be reimbursed for taxes on the capital advanced by o However, in case the expenses were incurred by innocent third
him, and persons, the usufructuary under Art 443, pursuant to the last
c. To be indemnified for damages caused to him by the paragraph of Art 567, has the obligation to pay the expenses
naked owner. made.
· For fruits growing at the termination of the usufruct, they belong to the
· The usufructuary is given the right to enjoy the property in usufruct and owner but he is bound to reimburse the usufructuary the ordinary
he is entitled to the fruits. The usufructuary has the right to receive all cultivation expenses out of the fruits received.
the fruits except: · Manresa opines that if at the termination of the usufruct, force majeure
a. where the usufruct is constituted only on a part of the fruits should prevent the usufructuary from gathering the fruits, said fruits
of a thing or shall belong to him and not the naked owner.
b. where there is an agreement to the contrary.
· The naked owner retains and can exercise all the rights as owner over Art. 568. If the usufructuary has leased the lands or tenements given in
the property limited only by the right of enjoyment of the usufructuary. usufruct, and the usufruct should expire before the termination of the
· Products which when taken from the property diminishes its substance lease, he or his heirs and successors shall receive only the
are not to be treated as fruits. They form part of the capital and belong proportionate share of the rent that must be paid by the lessee. (473)
to the naked owner, and not to the usufructuary in the absence of a
contrary intent between the parties. Art. 569. Civil fruits are deemed to accrue daily, and belong to the
· The usufructuary is not entitled to any hidden treasure because it’s not usufructuary in proportion to the time the usufruct may last. (474)
considered as ‘fruits’. However, as a stranger, he is entitled to ½ if he is
the finder. Lease by the usufrucutary

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· The usufructuary may lease the property in usufruct to another.


· If the usufrcut should expire before the termination of the lease, the
usufructuary or his heirs and successors are entitled only to the rents Art. 572. The usufructuary may personally enjoy the thing in usufruct,
corresponding to the duration of the usufruct. The rents for the lease it to another, or alienate his right of usufruct, even by a
remaining period of the lease belong to the owner. gratuitous title; but all the contracts he may enter into as such
usufructuary shall terminate upon the expiration of the usufruct,
Art. 570. Whenever a usufruct is constituted on the right to receive a saving leases of rural lands, which shall be considered as subsisting
rent or periodical pension, whether in money or in fruits, or in the during the agricultural year. (480)
interest on bonds or securities payable to bearer, each payment due
shall be considered as the proceeds or fruits of such right. Transactions by the usufructuary
Whenever it consists in the enjoyment of benefits accruing · with respect to the thing in usufruct, he may lease it even without the
from a participation in any industrial or commercial enterprise, the date owner’s consent but not being the owner, the usufructuary cannot
of the distribution of which is not fixed, such benefits shall have the alienate, pledge or mortgage the thing itself. He may sell future crops
same character. subject to the rule that those ungathered at the time when the usufruct
In either case they shall be distributed as civil fruits, and shall terminates belong to the owner.
be applied in the manner prescribed in the preceding article. (475) · when the things given in usufruct cannot be used without being
consumed or were appraised when delivered, the usufructuary may
Usufruct constituted on certain rights dispose of them.
· Every benefit or payment shall be considered and distributed as civil · With respect to the right of usufruct, since the usufructuary is the owner
fruit of such right. of the right itselt, he may alienate, pledge or mortgage it, even by
· Payment and benefits that accrue after the termination of the usufruct gratuitous title.
belong to the owner. o But the legal usufruct of the parent over his or her
· The date when the benefits accrue determines whether they should unemancipated children cannot be alienated, pledged, or
belong to the usufructuary or to the owner. Art 570 applies whether or mortgaged for the right is personal and intransmissible
not the date of distribution of benefits is fixed. burdened as it is by important obligations of the parent for the
benefit of the children.
Case doctrine o A usufruct given in consideration of the person of the
· A stock dividend is considered civil fruit and belongs to the usufructuary. usufructuary to last during his lifetime is also personal, and
(Bachrach v Seifert) therefore, intransmissible.
o As a rule, all contracts entered into by the usufructuary shall
terminate upon the expiration of the usufruct or earlier, except
Art. 571. The usufructuary shall have the right to enjoy any increase rural leases which continue during the agricultural year.
which the thing in usufruct may acquire through accession, the
servitudes established in its favor, and, in general, all the benefits Case doctrine
inherent therein. (479) · A usufructuary of rents, as a corollary to the right to all the rents, to
choose the tenant, and to fix the amount of the rent, necessarily has the
Extent of rights of usufructuary right to choose himself as the tenant, provided that the obligations he
· The usufructuary is generally entitled to all the benefits that the thing in has assumed towards the owner of the property are fulfilled. (Fabie v
usufruct can give including any increase by accession and servitudes David)
established in his favor.
· Reason is that usufruct covers the entire jus fruendi and jus utendi.

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Art. 573. Whenever the usufruct includes things which, without being · At the termination of the usufruct, he must:
consumed, gradually deteriorate through wear and tear, the 1. Pay its appraised valuel or
usufructuary shall have the right to make use thereof in accordance 2. If there was no appraisal made, either:
with the purpose for which they are intended, and shall not be obliged a. Return the same quantity and quality, or
to return them at the termination of the usufruct except in their b. Pay its current price at such termination.
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 Art. 575. The usufructuary of fruit-bearing trees and shrubs may make
negligence. (481) use of the dead trunks, and even of those cut off or uprooted by
accident, under the obligation to replace them with new plants. (483a)
Usufruct on things which gradually deteriorate
· This article gives an instance of abnormal usufruct because in the Art. 576. If in consequence of a calamity or extraordinary event, the
enjoyment of the property the usufructuary cannot preserve its form or trees or shrubs shall have disappeared in such considerable number
substance. that it would not be possible or it would be too burdensome to replace
· Here the thing gradually deteriorates through wear and tear or normal them, the usufructuary may leave the dead, fallen or uprooted trunks at
use. the disposal of the owner, and demand that the latter remove them and
· The usufructuary is not responsible for the deterioration due to wear and clear the land. (484a)
tear nor is he required to make any repairs to restore it to its formal
condition. He needs only to return the thing at the termination of the Usufruct on fruit-bearing trees and shrubs
usufruct in the condition it may be at that time. · The usufructuary is given the right to make use of dead trunks and
· The usufructuary is liable for damage suffered by the thing by reason of those cut-off or uprooted by accident but he must place them with new
his fraud or negligence although such liability may be set-off against the plants because he has the obligation to preserve the form or substance
improvements he may have made on the property. of the property in usufruct.
· The usufructuary does not answer for deterioration due to a fortuitous · Of course, the usufructuary has no obligation to replace with new plants,
event. He is, however, obligated to make the ordinary repairs needed by the dead trees or shrubs already existing at the beginning of the
the thing. usufruct.
· Under article 576, the usufructuary is not responsible for dead, fallen or
Art. 574. Whenever the usufruct includes things which cannot be used uprooted trunks caused by calamity or extra-ordinary events. If it would
without being consumed, the usufructuary shall have the right to make not be possible or be too burdensome to replace them, he may demand
use of them under the obligation of paying their appraised value at the that the owner remove them and clear the land. He may use the trunks
termination of the usufruct, if they were appraised when delivered. In but he is required to replace them with new plants under Article 575.
case they were not appraised, he shall have the right to return at the · If replacing the trunks could not be too burdensome, the usufructuary
same quantity and quality, or pay their current price at the time the must replace them, whether or not he makes use of them.
usufruct ceases. (482)
Art. 577. The usufructuary of woodland may enjoy all the benefits
Usufruct on consumable things which it may produce according to its nature.
· This is another instance of abnormal usufruct because the thing in If the woodland is a copse or consists of timber for building,
usufruct cannot be used without being consumed, like money (but that’s the usufructuary may do such ordinary cutting or felling as the owner
really a simple loan, where the usufructuary can deal with the money as was in the habit of doing, and in default of this, he may do so in
owner.) accordance with the custom of the place, as to the manner, amount
· The usufructuary shall have the right to make use of the consumable and season.
thing.

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In any case the felling or cutting of trees shall be made in such Art. 579. The usufructuary may make on the property held in usufruct
manner as not to prejudice the preservation of the land. such useful improvements or expenses for mere pleasure as he may
In nurseries, the usufructuary may make the necessary deem proper, provided he does not alter its form or substance; but he
thinnings in order that the remaining trees may properly grow. shall have no right to be indemnified therefor. He may, however,
With the exception of the provisions of the preceding remove such improvements, should it be possible to do so without
paragraphs, the usufructuary cannot cut down trees unless it be to damage to the property. (487)
restore or improve some of the things in usufruct, and in such case
shall first inform the owner of the necessity for the work. (485) What happens when a usufructuary makes useful or luxurious expenses?
· The usufructuary has the right to make improvements, useful or
Usufruct on woodland and nurseries luxurious, as he may deem proper.
· The woodland may be a copse or may consist of timber for building. · What are the rules?
· The usufructuary may fell or cut trees as the owner was in the habit of 1. He must not alter the form or substance of the property,
doing or in accordance with the customs of the place as to manner, 2. He may remove the improvements only if it is possible to do so
amount and season. In any case, he must not prejudice the without damage to the property
preservation of the land. 3. He has no right to be indemnified for the improvements if he does
· The usufructuary cannot cut down trees other than as mentioned above not exercise his right to remove
unless it be for repair or improvement of the things in usufruct but in o He cannot invoke the rights of a possessor in good faith in
such case, the owner must be informed of the necessity for the work. the concept of owner
· In nurseries, the usufructuary may make the necessary thinnings in 4. If the improvements cannot be removed without damage, he may
order that the remaining trees may properly grow. set-off the same against any damage caused by him to the property
(Art 580)
Art. 578. The usufructuary of an action to recover real property or a real 5. If the usufructuary does not wish to exercise his right of removal,
right, or any movable property, has the right to bring the action and to the owner cannot compel him to remove the improvements
oblige the owner thereof to give him the authority for this purpose and 6. If the usufructuary wishes to exercise his right of removal, the
to furnish him whatever proof he may have. If in consequence of the owner cannot prevent him by offering to reimburse him
enforcement of the action he acquires the thing claimed, the usufruct 7. The usufructuary’s right to remove the improvements includes the
shall be limited to the fruits, the dominion remaining with the owner. right to destroy them provided no damage is caused to the property
(486) 8. The right to remove is enforceable only against the owner, but not
against a purchaser in good faith to whom a clean title has been
Usufruct of judicial action to recover issued
· This article applies if the purpose of the action is to recover real property o Right to remove the improvements should be annotated
or personal property or real right over real or personal property on the certificate of title, so that it can be enforced against
· The action may be instituted in the name of the usufructuary (vs an third parties
agent who institutes the action in the name of the principal)
· The usufructuary may oblige the owner to give him the necessary Case doctrines
authority to bring the action · By express provision of law, the usufructuaries do not have the right to
· In case of favorable judgment, the usufruct shall be limited to the fruits, reimbursement for improvements they may have introduced on the
with the naked ownership belonging to the owner. With the termination property. If the rule on reimbursement or indemnity were otherwise, then
of the case, the usufruct of the action comes to an end. the usufructuary might improve the owner out of his property. (Moralidad
v Pernes)

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o Reimburse him for taxes on the capital (Art 597)

Art. 580. The usufructuary may set off the improvements he may have
made on the property against any damage to the same. (488) 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
Right to set-off improvements the administration and the collection of fruits or interest. Should the
· This article presupposes that co-ownership cease by reason of the division of the thing held in
o the improvements have increased the value of the property common, the usufruct of the part allotted to the co-owner shall belong
and to the usufructuary. (490) 

o the damage to the same was caused through the fault of the
usufructuary. Usufruct of part of common property
· If the damage exceeds the value of the improvements, the usufructuary · In case a co-owner gives the usufruct of his share to a person, the
is liable for the difference as indemnity usufructuary shall exercise all the rights pertaining to the co-owner
· If the value of the improvements exceeds the damage, he may remove regarding the administration and the collection of the fruits or interest
the portion of the improvements representing the excess in value if this from the property
can be done without injury to the property, otherwise, the excess in · The usufructuary shall be bound by the partition made by the owners of
value accrues to the owner. the undivided property although he took no part in the partition but the
naked owner to whom the part held in usufruct has been allotted must
Art. 581. The owner of property the usufruct of which is held by respect the usufruct.
another, may alienate it, but he cannot alter its form or substance, or
do anything thereon which may be prejudicial to the usufructuary. Case doctrine
(489) · A partition made by the owners of land is binding upon a person who
has a usufructuary right in an undivided part of the land, although the
Rights and obligations of the naked owner latter took no part in the partition of the property.
· The naked owner may alienate the property in usufruct because the title · The right of the usufructuary is not affected by the division but it is
(dominium directum) remains vested in him. limited to the fruits of the said part allotted to the co-owner. (Pichay v
· He may construct works, make improvements, or make new plantings Querol)
on the property in usufruct.
· The alienation by the naked owner cannot affect the usufruct which is CHAPTER 3
registered or known to the transferee. OBLIGATIONS OF THE USUFRUCTUARY
· The naked owner, however, cannot:
o alter the form or substance of the property, or Art. 583. The usufructuary, before entering upon the enjoyment of the
o do anything thereon which may cause a diminution in the value property, is obliged:
of the usufruct, or (1) To make, after notice to the owner or his legitimate representative,
o be prejudicial to the rights of the usufructuary, an inventory of all the property, which shall contain an appraisal of the
§ otherwise, he shall be liable for damages. movables and a description of the condition of the immovables;
· The naked owner must: (2) To give security, binding himself to fulfill the obligations imposed
o Respect leases of rural lands by the usufructuary for the upon him in accordance with this Chapter. (491)
balance of the agricultural year (Art 572)
o Reimburse him for advances made for extraordinary repairs Classifications of obligations of the usufructuary
(Art 594), and 1. Those before the usufruct begins

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a. Make an inventory of the property, which shall contain an 2. Expenses of inventory


appraisal of the movables and a description of the · Borne by the usufructuary
immovables 3. Form of inventory
b. Give security · Article 583 does not provide for the form of inventory. It may be
2. Those during the usufruct contained in a private document.
a. Take care of the property (Art 589) · However, a public instrument is necessary to affect third persons
b. To replace with the young thereof animals that die or are when there are immovables.
lost in certain cases when the usufruct is constituted on 4. Contents of inventory
flock or herd of livestock (Art 591) · The inventory shall contain
c. To make ordinary repairs (Art 592, par 1) o an itemized list and
d. To notify the owner of urgent extraordinary repairs (Art o an appraisal of the movables and
593) o description of the condition of the immovables.
e. To permit works and improvements by the naked owner · The movables must be appraised because they are subject to
not prejudicial to the usufruct (Art 595) greater danger of loss and deterioration.
f. To pay annual taxes and charges on the fruits (Art 596) · Both kinds must be properly identified.
g. To pay interest on taxes on capital paid by the naked
owner (Art 597) Failure to make an inventory? Usufruct not extinguished, maybe owner can
h. To pay debts when the usufruct is constituted on the demand it.
whole of a patrimony (Art 598)
i. To secure the naked owner’s or court’s approval to collect Are there instances where obligation to make inventory is excused? Yes.
credits in certain cases (Art 599) See Art 585.
j. To notify the owner of any prejudicial act committed by
third persons (Art 601) Obligation to give security
k. To pay for court expenses and costs regarding usufruct · The purpose of giving security is to insure the fulfillment by the
(Art 602) usufructuary of the obligations imposed upon him
3. Those at the termination of the usufruct
· Law does not specify the kind of security that should be given
a. To return the thing in usufruct to the naked owner unless
there is a right of retention (Art 612)
Failure to give security? See Art 586.
b. To pay legal interest for the time that the usufruct lasts, on
the amount spent by the owner for extraordinary repairs
Art. 584. The provisions of No. 2 of the preceding article shall not apply
(Art 594) and the proper interest on the sums paid as
to the donor who has reserved the usufruct of the property donated, or
taxes by the owner (Art 597), and
to the parents who are usufructuaries of their children's property,
c. To indemnify the naked owner for any losses due to his
except when the parents contract a second marriage. (492a)
negligence or of his transferees. (Art 589-590)
When obligation to give security not applicable
· This article contains the legal exceptions to the obligation of the
Obligation to make an inventory
usufructuary to give security in two cases:
1. Previous notice to be given.
o To the donor who has reserved the usufruct of the property
· In the making of the inventory, the concurrence of the naked owner
donated
is not required.
o To the parents who are usufructuaries of their children’s
· Note that the law says ‘legitimate’, not legal representative parents, except when the parents contract a second marriage

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· On rights of owners: Where the obligation to give security or to file a


Art. 585. The usufructuary, whatever may be the title of the usufruct, bond is not excused or exempted, the failure of the usufructuary to
may be excused from the obligation of making an inventory or of comply with the same entitle the naked owner for his protection
giving security, when no one will be injured thereby. (493) o to demand that immovables be placed under administration or
receivership,
When obligation to make inventory or to give security excused o movables be sold,
· The usufructuary may be excused from the obligation in the following o instruments of credit be registered or deposited in a bank or
cases: public institution
1. Where the naked owner renounces or waives his right to the o capital or sums in cash and the proceeds of the sale of the
inventory or security movable be invested in safe securities.
2. Where the title constituting the usufruct relieves the usufructuary · On rights of usufructuary: Until he gives the proper security, the
from the obligation; usufructuary cannot enter upon the possession and enjoyment of the
o Is frequently true in usufructs constituted by a last will and property. He may not collect any matured credits nor invest capital in
testament or by a deed of donation in view of the trust usufruct without the consent of the owner or judicial authorization.
which the testator or donor has in the usufructuary · The failure to give security does not extinguish the right of usufruct.
3. Where the usufructuary asks that he be exempted from the Hence, the usufructuary may alienate his right to the usufruct
obligation and no one will be injured thereby. · This article only speaks of security (it would seem that the failure of the
o The usufructuary may apply to the courts for relief in case usufructuary to make an inventory, when not excused, does not have
the naked owner refuses to grant the exemption where, for the same effect as when security is not given.)
example, the usufruct is over the right to receive a periodic
income or pension Art. 587. If the usufructuary who has not given security claims, by
virtue of a promise under oath, the delivery of the furniture necessary
Art. 586. Should the usufructuary fail to give security in the cases in for his use, and that he and his family be allowed to live in a house
which he is bound to give it, the owner may demand that the included in the usufruct, the court may grant this petition, after due
immovables be placed under administration, that the movables be consideration of the facts of the case.
sold, that the public bonds, instruments of credit payable to order or to The same rule shall be observed with respect to implements,
bearer be converted into registered certificates or deposited in a bank tools and other movable property necessary for an industry or
or public institution, and that the capital or sums in cash and the vocation in which he is engaged.
proceeds of the sale of the movable property be invested in safe If the owner does not wish that certain articles be sold
securities. because of their artistic worth or because they have a sentimental
The interest on the proceeds of the sale of the movables and value, he may demand their delivery to him upon his giving security for
that on public securities and bonds, and the proceeds of the property the payment of the legal interest on their appraised value. (495)
placed under administration, shall belong to the usufructuary.
Furthermore, the owner may, if he so prefers, until the Sworn undertaking in lieu of security (caucion juratoria)
usufructuary gives security or is excused from so doing, retain in his · This article applies when the usufructuary who is under obligation to
possession the property in usufruct as administrator, subject to the give security cannot afford to do so and no one is willing to give security
obligation to deliver to the usufructuary the net proceeds thereof, after for them
deducting the sums which may be agreed upon or judicially allowed · For humanitarian considerations, the court may allow the usufructuary
him for such administration. (494) to enjoy the property upon taking an oath to take care of the property
and retain it until the termination of the usufruct in lieu of giving the
Effects of failure to give security, when required security

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· The usufructuary must first ask the naked owner to grant him the rights · However, he shall be liable to the owner for any damage which the
mentioned, and should the latter refuse, he may resort to the courts property in usufruct may suffer through the fault or negligence (also
fraud or willful acts) of the substitute without prejudice to his right of
· Articles with artistic or sentimental value may not be sold. The owner action against the latter
may demand their delivery to him if he gives security to the usufructuary
for the payment of the legal interest on their appraised value. Art. 591. If the usufruct be constituted on a flock or herd of livestock,
the usufructuary shall be obliged to replace with the young thereof the
Art. 588. After the security has been given by the usufructuary, he shall animals that die each year from natural causes, or are lost due to the
have a right to all the proceeds and benefits from the day on which, in rapacity of beasts of prey.
accordance with the title constituting the usufruct, he should have If the animals on which the usufruct is constituted should all
commenced to receive them. (496) perish, without the fault of the usufructuary, on account of some
contagious disease or any other uncommon event, the usufructuary
Retroactive effect of giving security shall fulfill his obligation by delivering to the owner the remains which
· This article applies where the usufructuary who is required to give may have been saved from the misfortune.
security gives the security after the commencement of the usufruct Should the herd or flock perish in part, also by accident and
· Failure to give the needed security may deprive the usufructuary of the without the fault of the usufructuary, the usufruct shall continue on the
right to enjoy the possession of the property in usufruct part saved.
· However, once the security is give, he is entitled to all the proceeds and Should the usufruct be on sterile animals, it shall be considered, with
benefits of the usufruct accruing from the day on which he should have respect to its effects, as though constituted on fungible things. (499a)
commenced to receive them, from the day the usufruct commenced
according to its title. Usufruct on a flock or herd of livestock
· The usufructuary has the duty to make replacement although the death
Art. 589. The usufructuary shall take care of the things given in of the animals is due to natural causes. But the replacement is to be
usufruct as a good father of a family. (497) made only from the young produced so that if there are no young or the
number of the young is less than that of the animals that died, the
Obligation to take care of the property usufructuary has no duty to replace or to fill up the difference.
·
nd rd
· Includes the making of ordinary repairs needed by thing given in No duty to replace provided the usufructuary is without fault (2 and 3
usufruct paragraphs). Even if the partial loss is due to the fault of the
· Care required is that of a good father of a family (ordinary diligence) usufructuary, the usufruct continues with the remainder. Bad use does
· But diligence should not be less than that required by the circumstances not extinguish the usufruct (Art 603), but the owner may bring the
· Usufructuary is liable for damages suffered by the property due to his necessary action for the protection of his rights.
fault and negligence · If the animals are sterile, and they cannot be replaced by the young
thereof, the usufruct shall be treated as constituted on fungible things. In
Art. 590. A usufructuary who alienates or leases his right of usufruct such case Art 574 applies.
shall answer for any damage which the things in usufruct may suffer
through the fault or negligence of the person who substitutes him. Art. 592. The usufructuary is obliged to make the ordinary repairs
(498) needed by the thing given in usufruct.
By ordinary repairs are understood such as are required by
Liability for fault or negligence of substitute the wear and tear due to the natural use of the thing and are
· The usufructuary may alienate or lease his right indispensable for its preservation. Should the usufructuary fail to make

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them after demand by the owner, the latter may make them at the they are made on his property but he shall a right to
expense of the usufructuary. (500) demand of the usufructuary who is benefited by the
repairs, legal interest on the amount expended during
Obligation to make ordinary repairs the duration of the usufruct.
· The usufructuary is bound to make the repairs referred to without the § The usufructuary may make them but he is not
necessity of demand from the owner entitled to indemnity because they are not needed for
o The owner may make them at the expense of the usufructuary, the preservation of the thing.
only should the latter fail to make them after demand has been o Those required by the deterioration of or damage to the thing
made upon him. caused by exceptional circumstances and are indispensable
o The defects requiring ordinary repairs must have occurred for its preservation:
during the usufruct, whether with or without the fault of the § It is also optional upon the owner or the usufructuary
usufructuary. to make the repairs or not. If the owner should make
· The usufructuary is not liable for deterioration resulting from wear and the repairs, they shall be at his expense.
tear not due to his fraud or negligence, unless the deterioration could § If made by the usufructuary, he shall have the right to
have been prevented or arrested by ordinary repairs and he failed to demand of the owner the payment of the increase in
make them without valid reason. value of the immovable by reason of the repairs at the
termination of the usufruct provided the following are
Art. 593. Extraordinary repairs shall be at the expense of the owner. present:
The usufructuary is obliged to notify the owner when the need for such · He notified the owner of the urgency of the
repairs is urgent. (501) repairs
Art. 594. If the owner should make the extraordinary repairs, he shall · The owner failed to make the repairs
have a right to demand of the usufructuary the legal interest on the · The repair is necessary for the preservation
amount expended for the time that the usufruct lasts. of the property
Should he not make them when they are indispensable for the · The usufructuary has the right of retention even after the termination of
preservation of the thing, the usufructuary may make them; but he the usufruct until he is reimbursed for the increase in value of the
shall have a right to demand of the owner, at the termination of the property caused by extraordinary repairs for preservation (Art 612)
usufruct, the increase in value which the immovable may have o Increase in value is the difference between the value of the
acquired by reason of the repairs. (502a) property before the repairs were made and the value after the
repairs were completed
Duty of owner to pay for extraordinary repairs
· Law does not impose an obligation on the naked owner or the Art. 595. The owner may construct any works and make any
usufructuary to make extraordinary repairs on the property in usufruct. It improvements of which the immovable in usufruct is susceptible, or
is optional for them to make sure repairs or not. make new plantings thereon if it be rural, provided that such acts do
· Payment for extraordinary repairs: not cause a diminution in the value of the usufruct or prejudice the
o Those required by the wear and tear due to the natural use of right of the usufructuary. (503)
the thing but not indispensable for its preservation OR those
required by the deterioration of or damage the thing caused by Construction, improvements and plantings by owner
the exceptional circumstances but not indispensable for its · The owner has the right to do the works mentioned provided the value
preservation: of the usufruct is not prejudiced
§ The owner cannot be compelled to make them. If he
should make them, they shall be at his expense since

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· Any increase in the value of the usufruct due to the improvements will · Taxies levied on the capital must be paid by the naked owner but he
inure to the benefit of the usufructuary for he is entitled to the use and has right to demand from the usufructuary the proper interest on the
fruits of the property sums paid.
· The owner has no right to demand legal interest on his expenses · If the taxes were advanced voluntarily by the usufructuary he is entitled
because they were voluntarily incurred by him to be reimbursed therefor at the termination of the usufruct with the right
· The owner may even alienate his property or make changes thereon as of retention until paid.
long as he doesn’t impair the right of the usufructuary.
Art. 598. If the usufruct be constituted on the whole of a patrimony, and
Case doctrine if at the time of its constitution the owner has debts, the provisions of
· In a case where the usufruct was over the land, and the owner built Articles 758 and 759 relating to donations shall be applied, both with
buildings on the land, and the usufructuary was demanding the rents of respect to the maintenance of the usufruct and to the obligation of the
the buildings as part of the usufruct, the Court held that the usufructuary usufructuary to pay such debts.
was not entitled to the rents of the building. The usufructuary’s The same rule shall be applied in case the owner is obliged, at the time
argument that Article 571 was applicable (right to enjoy any increase by the usufruct is constituted, to make periodical payments, even if there
accession) was wrong because such accession is limited to buildings should be no known capital. (506)
erected on the land of another and does not contemplate a situation
where the owner himself erected the buildings. (Gaboya v Cui) Where usufruct convers entire patrimony
· However, the usufructuary was entitled to reasonable rental for the · Art 598 applies to a
portion of the land occupied by the building because the construction of o universal usufruct or one which covers the entire patrimony of
the building had reduced the area of the land and to that extent the owner, and
diminished the value of the usufruct. However, like said above, since the o at the time of its constitution, by donation or any other acts
usufruct was reserved over the land alone, the usufructuary was not inter vivos, he has debts, whether secured or unsecured, or is
entitled to the rents of the building itslef. bound to make periodical payments even if, in the latter case,
there should be no known capital
Art. 596. The payment of annual charges and taxes and of those · The liability of the usufructuary for the debts of the naked owner is the
considered as a lien on the fruits, shall be at the expense of the same as that of the donee under 758 and 759
usufructuary for all the time that the usufruct lasts. (504) o when there is a stipulation for the payment by the usufructuary
of the debts of the owner, the former is liable only for the debts
Art. 597. The taxes which, during the usufruct, may be imposed directly contracted by the latter before the constitution of the usufruct
on the capital, shall be at the expense of the owner. o in the absence of stipulation, the usufructuary shall be
If the latter has paid them, the usufructuary shall pay him the proper responsible only when the usufruct was created in fraud of
interest on the sums which may have been paid in that character; and, creditors
if the said sums have been advanced by the usufructuary, he shall
recover the amount thereof at the termination of the usufruct. (505) 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
Liability for charges and taxes has been excused from giving security or has been able to give it, or if
· Usufructuary must pay the annual charges and taxes which are that given is not sufficient, he shall need the authorization of the
imposed, and, therefore, are a lien upon the fruits during the term of the owner, or of the court in default thereof, to collect such credits.
usufruct. The usufructuary who has given security may use the capital
· Are real property taxes imposed on the fruits or on the capital? On the he has collected in any manner he may deem proper. The usufructuary
capital. who has not given security shall invest the said capital at interest upon

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agreement with the owner; in default of such agreement, with judicial not do so, for damages, as if they had been caused through his own
authorization; and, in every case, with security sufficient to preserve fault. (511)
the integrity of the capital in usufruct. (507)
Obligation to notify owner of prejudicial acts by third persons
Usufruct of matured credits · Art 601 speaks of any act which may be prejudicial to the ‘rights of
· if the usufructuary has given sufficient security, he may claim matured ownership’, not merely of the ‘naked ownership’
credits forming part of the usufruct, collect them, and use and invest, · A usufructuary has the duty to protect the owner’s interest
with or without interest, the capital he has collected, in any manner he · However, where the act affects possession, although this is in the
may deem proper usufructuary, he should notify the owner because the latter has an
· if he interest in defending it.
o has NOT given security, or · The usufructuary is also obliged to notify the owner before making an
o that given is not sufficient, or inventory of the property and of the need of urgent repairs.
o he has been excused from giving security,
§ he may collect the credits and invest the capital which Case doctrine
must be at interest, with the consent of the naked · A usufructuary has the duty to protect the owner’s interests – a usufruct
owner or approval of the court. gives a right to enjoy the property of another with the obligation of
§ The credits which constitute the capital belong to the preserving its form and substance, unless the title constituting it or the
naked owner but the usufructuary has the right to use law otherwise provides. (NHA v CA)
and invest them, and to receive the interest therefrom.
· In every case, the investment of the capital must be with sufficient Art. 602. The expenses, costs and liabilities in suits brought with
security to preserve its integrity regard to the usufruct shall be borne by the usufructuary. (512) 


Art. 600. The usufructuary of a mortgaged immovable shall not be Obligation to pay for judicial expenses and cost
obliged to pay the debt for the security of which the mortgage was · Since they are in connection with litigation over possession affecting the
constituted. rights of the usufructuary, it is just that they are borne by him.
Should the immovable be attached or sold judicially for the · If the litigation involves only the naked ownership, the owner should
payment of the debt, the owner shall be liable to the usufructuary for assume them.
whatever the latter may lose by reason thereof. (509)

Usufruct of mortgaged immovables CHAPTER 4


· The usufruct is particular, constituted by will or by acts inter vivos, EXTINGUISHMENT OF USUFRUCT
whether by onerous or gratuitous title
· If the usufruct is universal, the liability of the usufructuary to pay for the Art. 603. Usufruct is extinguished:
mortgage is governed by Art 598. (1) By the death of the usufructuary, unless a contrary
· The owner may validly mortgage the property in favor of a third person. intention clearly appears;
The debt must be paid by the owner. (2) By the expiration of the period for which it was constituted,
· The usufructuary may mortgage his right of usufruct which is a real right or by the fulfillment of any resolutory condition provided in the title
creating the usufruct; 

Art. 601. The usufructuary shall be obliged to notify the owner of any (3) By merger of the usufruct and ownership in the same
act of a third person, of which he may have knowledge, that may be person; 

prejudicial to the rights of ownership, and he shall be liable should he (4) By renunciation of the usufructuary;

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(5) By the total loss of the thing in usufruct;


(6) By the termination of the right of the person constituting · The ordinary life of a corporation is 50 years. Unlike a natural person, a
the usufruct; corporation or association may be extended indefinitely. Public policy
(7) By prescription. (513a) frowns upon perpetual usufruct.
· The fifty-year limitation does not apply to trusts.
How is a usufruct extinguished?
1. Death of the usufructuary (unless contrary intention clearly appears) Art. 606. A usufruct granted for the time that may elapse before a third
2. Expiration of period or fulfillment of condition person attains a certain age, shall subsist for the number of years
3. By merger of the usufruct and ownership in the same person specified, even if the third person should die before the period expires,
4. By renunciation of the usufructuary unless such usufruct has been expressly granted only in consideration
5. By the total loss of the thing of the existence of such person. (516)
6. Termination of right of owner (refers to the right of the person
constituting the usufruct, not to a condition imposed upon the usufruct · Exception here is when the usufruct has been expressly granted only in
itself) consideration of the existence of the third person
7. By prescription (acquisitive prescription by the use of a third person, not
the use by the usufructuary) Art. 607. If the usufruct is constituted on immovable property of which
8. Other causes (annulment or rescission of the contract) a building forms part, and the latter should be destroyed in any manner
whatsoever, the usufructuary shall have a right to make use of the land
Case doctrines and the materials.
· Although the owner expressly authorized the usufructuaries to occupy a The same rule shall be applied if the usufruct is constituted on
portion of her property “as long as they like”, the usufruct may be a building only and the same should be destroyed. But in such a case,
considered terminated by other modes or instances of extinguishment, if the owner should wish to construct another building, he shall have a
such as the fulfillment of any resolutory condition provided in the right to occupy the land and to make use of the materials, being
document creating the usufruct. (Moralidad v Spouses Pernez) obliged to pay to the usufructuary, during the continuance of the
· The 30-year limitation on usufruct under the Old Spanish Civil Code usufruct, the interest upon the sum equivalent to the value of the land
does not apply to trusts. (Palad v Governor of Quezon Province) and of the materials. (517)

Art. 604. If the thing given in usufruct should be lost only in part, the Where usufruct of land and building, and building destroyed
right shall continue on the remaining part. (514) · The destruction of the building terminates the usufruct on the building
but no the usufruct on the land
· To extinguish a usufruct, the loss must be total, except as provided in · The usufructuary is still entitled to use the land and in place of the
Art 607 to 609 building, the materials thereof. (Partial loss)
· If the loss in only partial, the usufruct continues with the remaining part. · The usufructuary can insist on the use of the land and the materials for
But if the partial loss may be so important as to be considered total loss, the remainder of the term of the usufruct as the right is granted him by
the courts shall determine. law as against the wish of the owner to construct another building. While
the usufruct on a building does not expressly include the land on which
Art. 605. Usufruct cannot be constituted in favor of a town, corporation, it is constructed, the land should be deemed included, for while there
or association for more than fifty years. If it has been constituted, and can be land without a building, there can be no building without land.
before the expiration of such period the town is abandoned, or the · The naked owner shall pay legal interest on insurance received if it has
corporation or association is dissolved, the usufruct shall be not been used in the construction of another building during the whole
extinguished by reason thereof. (515a) period of the usufruct. But he may, if he desires, relieve himself of this

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encumbrance by turning over the money to the usufructuary so that he o The usufructuary refuses to contribute to the insurance, and so
may use it subject to the obligation to return the amount to the naked the owner pays it alone, the owner gets the full insurance
owner after his death as provided in article 612. indemnity in case of loss, the right of the usufructuary being
limited to the legal interest on the value of the land and of the
Where usufruct on building only and it is destroyed materials.
· Same rule applies although the usufruct does not cover the land for the · The article is silent where the usufructuary alone pays the insurance, or
simple reason that the use of the building necessarily involves the use where both share in the payment thereof, as to the proportion of their
of the land contribution to the insurance.
· But, the owner is given the preferential right to construct another
building, occupy the land and make use of the material even against the Art. 609. Should the thing in usufruct be expropriated for public use,
objection of the usufructuary the owner shall be obliged either to replace it with another thing of the
· The only right of the usufructuary is to receive during the continuance of same value and of similar conditions, or to pay the usufructuary the
the usufruct, legal interest on the value of the land of the materials. legal interest on the amount of the indemnity for the whole period of
the usufruct. If the owner chooses the latter alternative, he shall give
Case doctrines security for the payment of the interest. (519)
· A life usufruct constituted on the rentals of the fincas situadas located at
a certain place includes the rentals both on the building and the land on Art. 610. A usufruct is not extinguished by bad use of the thing in
which it is erected, because the building can not exist without the land. usufruct; but if the abuse should cause considerable injury to the
Hence, the usufruct is not extinguished by the destruction of the owner, the latter may demand that the thing be delivered to him,
building, for under the law usufruct is extinguished only by the total loss binding himself to pay annually to the usufructuary the net proceeds of
of the thing subject of the encumbrance. (Vda de Albar v Carandang) the same, after deducting the expenses and the compensation which
may be allowed him for its administration. (520)
Art. 608. If the usufructuary shares with the owner the insurance of the
tenement given in usufruct, the former shall, in case of loss, continue Expropriation of thing in usufruct
in the enjoyment of the new building, should one be constructed, or · The expropriation of the thing does not extinguish the usufruct.
shall receive the interest on the insurance indemnity if the owner does · Article 609 allows the substitution of the thing by an equivalent thing.
not wish to rebuild. · If the thing in usufruct is expropriated for public use, the naked owner is
Should the usufructuary have refused to contribute to the given the option:
insurance, the owner insuring the tenement alone, the latter shall o to replace it with another thing of the same value and of
receive the full amount of the insurance indemnity in case of loss, similar conditions, or
saving always the right granted to the usufructuary in the preceding o to pay to the usufructuary the legal interest on the amount of
article. (518a) indemnity for the whole period of the usufruct.
§ In the latter case, the owner shall give security for the
Payment of cost of insurance payment of the interest.
· Neither the owners nor the usufructuary is under obligation to insure the
property in usufruct. Should they do so, and – Effect of bad use
o The usufructuary shares with the owner in insuring the · Bad use of the thing in usufruct does not extinguish the right of the
property, the usufructuary shall continue to enjoy the new usufructuary whether there is security or not. The usufruct continues.
building to be constructed, or if the owner does not wish to · But if the bad use causes considerable injury to the owner, not to the
rebuild, the usufructuary shall receive the legal interest on the thing itself, the owner is given the right to demand that the thing be
insurance proceeds which will go to the owner. delivered to him, binding himself to pay annually to the usufructuary the

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net proceeds of the same, after deducting the expenses and the EASEMENTS IN GENERAL
compensation which may be allowed him for its administration.
· This is true where the usufructuary has not given any security or the SECTION ONE – DIFFERENT KINDS OF EASEMENTS
security given is insufficient especially if the owner has no property.
· The second part of the provision can hardly apply where there is Art. 613. An easement or servitude is an encumbrance imposed upon
sufficient security for “no considerable injury” could possible be caused an immovable for the benefit of another immovable belonging to a
to the owner. different owner.
The immovable in favor of which the easement is established
Art. 611. A usufruct constituted in favor of several persons living at the is called the dominant estate; that which is subject thereto, the servient
time of its constitution shall not be extinguished until death of the last estate. (530)
survivor. (521)
Easement or servitude defined
Usufruct in favor of several persons · Easement or servitude has been defined as a “real right constituted on
· Usufruct is extinguished by the death of the usufructuary unless a another’s property, corporeal and immovable, by virtue of which the
contrary intention appears. owner of the same has to abstain from doing or to allow somebody else
· The usufruct is not extinguished until the death of the last survivor. As to do something on his property for the benefit of another thing or
the usufruct continues, the rights of any usufructuary who dies shall person.”
accrue to the surviving usufructuaries. · The definition in this article is not complete, being limited to real
o The only exception is when the title constituting the usufruct easement.
provides otherwise as where the usufruct is constituted in a list · In view of the next article which refers to personal easement, the term
and will and testament and the testator makes a contrary may be defined as an encumbrance imposed upon an immovable for
provision. the benefit of another immovable belonging to a different owner or for
the benefit of a community or one or more persons to whom the
Art. 612. Upon the termination of the usufruct, the thing in usufruct encumbered estate does not belong by virtue of which the owner is
shall be delivered to the owner, without prejudice to the right of obliged to abstain from doing or to permit a certain thing to be done on
retention pertaining to the usufructuary or his heirs for taxes and his estate (whew.)
extraordinary expenses which should be reimbursed. After the delivery
has been made, the security or mortgage shall be cancelled. (522a) Easement and servitude distinguished
1. It is said that easement refers to the right enjoyed by one, and
Obligation of usufructuary to return the thing upon termination of the usufruct servitude, the burden imposed upon another.
· Upon the termination of the usufruct, it is the duty of the usufructuary to 2. The two terms are used synonymously in the Civil Code although it is
return the property to the naked owner. more partial to easement.
· The usufructuary is expressly granted the right of retention until he is
reimbursed for the amount of taxes levied on the capital and for the Characteristics of easement
increase in value caused by extraordinary repairs. 1. It is a real right but will affect third persons only when duly registered;
· He has no right to reimbursement for useful improvements. 2. It is enjoyed over another immovable, never on one’s own property;
3. It involves two neighboring estates, the dominant to which a right
belongs and the servient upon which an obligation rests;
4. It is inseparable from the estate to which it is attached and, therefore,
TITLE VII – EASEMENTS OR SERVITUDES cannot be alienated independently of the estate (Art 617)
CHAPTER ONE

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