PROPERTY REVIEWER Part 8 USUFRUCT A.

Concept
Art. 562. Usufruct gives a right to enjoy the property of another with the obligation of preserving its form and substance, unless the title constituting it or the law otherwise provides.
Usufruct is a real right, of a temporary nature, which authorizes its holder to enjoy all the benefits which results from the normal enjoyment of anothers property, with the obligation to return, at the designated time, either the same thing, or in special cases, its equivalent. It includes both the jus utendi and jus fruendi. The usufructuary is bound to preserve the form and substance of the thing in usufruct. Abnormal usufruct/quasi-usufruct The last part of this article allows for the alteration of the substance of the thing subject in the law or the will of the parties. All property, even a right, can be the object of usufruct. But a servitude, having no existence independent of the tenements too which it attaches, cannot be the object of usufruct. If consumable things, usufruct is on their value if they were appraised, or on an equal quantity if they were not appraise. Usufruct even on sterile or absolutely unproductive land or things for mere pleasure. a. Personal attaches to persons Operae servorum on slaves; first to be abolished. Ususfructus general usufruct; 3 bundles of rights: right to use or enjoy, right to own fruits, and right to possess Usus right to receive out of the frits of anothers property Habitation right ti occuoy in anothers house the apartment necessary for ususfructurary and family The last 2 were recognized in the Old Civil Code but have been omitted from the present Code, being unknown legal institutions in the country as these were inexistent in Filipino custom. b. real or praedial attaches to real property

C. Characteristics
a. Essential characteristics 1. a real right, registered or not 2. of temporary nature 3. purpose is to enjoy the benefits and derive all advantages from the object as a consequence of normal use or exploitation b. Natural characteristics ordinarily are present but a contrary stipulation can eliminate them because not essential; if altered, there is abnormal usufruct Form and substance of thing in usufruct are preserved. c. Accidental characteristics may be present or absent depending on the stipulation of the parties. 1. a real right 2. of temporary duration 3. transmissible

B. Historical considerations
Types of servitudes under Roman Law

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

100

PROPERTY REVIEWER
4. constituted upon real or personal (for value) property, consumable or nonconsumable, tangible or intangible (i.e., rights), the ownership of which is vested in another. No person can create a usufruct over own property and at the same time retain ownership of the same for usufruct is essentially jus in re aliena; to be usufructuary of ones own property is, in law, a contradiction in terms and a conceptual absurdity Reason for conservation: to prevent extraordinary exploitation, abuse, impairment Usufructuary rights may be transferred, assigned, or otherwise, disposed of by the usufructuary, and are not exempt from execution, and can be sold at public auction. Ususfructuary: jus utendi, fruendi, possidendi Naked owner: jus abuendi, vindicandi Creat or of the right Can be created only by the owner or by a duly authorized agent, acting in behalf of the owner right The lessor may or may not be the owner (as when there is a sub-lease or when the lessor is only a usufructuary; usufruct can lease as he is entitled to civil fruits) General rule: by contract; exception: by law (as in the case of an implied lease or when a builder has built in good faith on the land of another a building, when the land is considerably worth more in value than the building) Owner or lessor is more or less active, and he makes the lessee enjoy the thing hace gozar The lessee generally has no duty to pay for repairs Lessees cannot constitute a usufruct on the property leased. Lessee may

Origi n

Can be created by law, contract, last will, or prescription

D.Usufruct distinguished from Lease

Basis Exten t Natur e of the right Usufruct Covers all fruits and uses as a rule Is always a real right Lease Generally covers only a particular or specific use A real right only if, as in the case of a lease over real property, the lease is registered or is for more than one year; otherwise, only a personal

Cause

Repair s

Taxes

Other

The owner is more or less passive, and allows the usufructuray to enjoy the thing given in usufruct deja gozar Usufructuary has the duty to make ordinary repairs Usufructuray pays for the annual charges and taxes on fruits Usufructuary

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

101

PROPERTY REVIEWER
things may lease the property itself to another sub-lease only with the permission of the owner inter vivos, such as contracts and donations, or by acts mortis causa, such as testaments (b) created by law legal

E. Usufruct distinguished from servitude

Usufruct Object may be real or personal property Enjoy all uses and fruits of the property Usufruct cannot be constituted on an easement; but it can be constituted on a land burdened by an easement Usually extinguished by death of a usufructuary Easement Involves only real property Only a particular use (e.g., right of way) An easement may be constituted in favor of, or burdening, a piece of land held in usufruct Not extinguished by the death of the owner

Art. 321. The property which the unemancipated child has acquired or may acquire with his work or industry, or by any lucrative title, belongs to the child in ownership, and in usufruct to the father or mother under whom he is under parental authority and in whose company he lives; but if the child, with the parent's consent, should live independently from them, he shall be considered as emancipated for all purposes relative to said property, and he shall have over it dominion, usufruct and administration. FC Art. 226. The property of the unemancipated child earned or acquired with his work or industry or by onerous or gratuitous title shall belong to the child in ownership and shall be devoted exclusively to the latter's support and education, unless the title or transfer provides otherwise. The right of the parents over the fruits and income of the child's property shall be limited primarily to the child's support and secondarily to the collective daily needs of the family. Ex. Usufruct of the parents over the property of their unemancipated children, under CC Art. 321, as repealed by FC Art. 226. Labnotes Q: Is there still a legal usufruct under the FC? A: YES, but in a limited manner. The right of the parents over the fruits and income of the childs property shall be limited primarily to the childs support and secondarily to the collective daily needs of the family.

F. Classes of usufruct
(1) By origin Art. 563. Usufruct is constituted by law, by the will of private persons expressed in acts inter vivos or in a last will and testament, and by prescription. Art. 565. The rights and obligations of the usufructuary shall be those provided in the title constituting the usufruct; in default of such title, or in case it is deficient, the provisions contained in the two following Chapters shall be observed.

(a) voluntary/co nventional created by the will of the private persons, either by act

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

102

PROPERTY REVIEWER
Under the Old CC, there were two legal usufructs: Lifetime usufruct of surviving spouse over the estate of the dead spouse. No one inherits as long as remaining spouse is alive. No more under the New CC. Forced heir na lang. (c) Mixed by prescription, created both by law and by the acts of persons. i. A usufruct over real property, being a real right, must be duly registered in order to bind third persons in good faith. (2) By person enjoying the right of usufruct Art. 564. Usufruct may be constituted on the whole or a part of the fruits of the thing, in favor of one more persons, simultaneously or successively, and in every case from or to a certain day, purely or conditionally. It may also be constituted on a right, provided it is not strictly personal or intransmissible. 1. simple only one usufructuary enjoys 2. multiple several usufructuaries enjoy i. simultaneous ii. successive Limitations: Art. 756. The ownership of property may also be donated to one person and the usufruct to another or others, provided all the donees are living at the time of the donation. Art. 869. A provision whereby the testator leaves to a person the whole or part of the inheritance, and to another the usufruct, shall be valid. If he gives the usufruct to various persons, not i. simultaneously, but successively, the provisions of Article 863 shall apply. If usufruct is by donation, all donees must be alive. If by testamentary succession, there must be only two successive usufructuaries, and both must be alive or at least already conceived at the time of the testators death. (3) By object of the usufruct (a) rights

Art. 564. It may also be constituted on a right, provided it is not strictly personal or intransmissible. must not be strictly personal or intransmissible Usufruct over a real right is also by itself a real right. Right to receive present or future support cannot be the object of the usufruct. (b) things normal involves nonconsumable things where the form and substance are preserved ii. abnormal/irregular/quasiusufruct may be on consumables, e.g., food, but must be replaced with equal quantity if not appraised, must be considered as on their value. (Under the last sentence of Art. 591, a usufruct over sterile animals is to be considered a usufruct over consumable or fungible things.) may also be on nonconsumables that

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

103

PROPERTY REVIEWER
gradually deteriorate by use, e,g,, furniture or car in reality, the usufruct is converted into a simple loan not upon consumable things themselves which are delivered to the usufructuary, but upon the sum representing their value or upon a quantity of things of the same kind and quality the usufructuary, in effect, becomes the owner of the things in usufruct, while the grantor becomes a mere creditor entitled to the return of the value or of the things of the same quantity and quality (4) By the extent of the usufruct (a) As to the fruits applied, both with respect to the maintenance of the usufruct and to the obligation of the usufructuary to pay such debts. The same rule shall be applied in case the owner is obliged, at the time the usufruct is constituted, to make periodical payments, even if there should be no known capital. Art. 758. When the donation imposes upon the donee the obligation to pay the debts of the donor, if the clause does not contain any declaration to the contrary, the former is understood to be liable to pay only the debts which appear to have been previously contracted. In no case shall the donee be responsible for the debts exceeding the value of the property donated, unless a contrary intention clearly appears. Art. 759. There being no stipulation regarding the payment of debts, the donee shall be responsible therefor only when the donation has been made in fraud of creditors. The donation is always presumed to be in fraud of creditors, when at the time thereof the donor did not reserve sufficient property to pay his debts prior to the donation. The usufructuary has to pay for the debts of the naked owner as earlier stipulated; if there are no stipulations, the usufructuary has to pay only when the usufruct has been made in fraud of creditors. ii. singular only on particular property of the owner (5) By the terms of the usufruct

Art. 564. Usufruct may be constituted on the whole or a part of the fruits of the thing i. ii. total all consumed by the

usufruct

partial only on certain aspects of the usufructs fruits (b)As to the object universal pertains to the whole property Art. 598. If the usufruct be constituted on the whole of a patrimony, and if at the time of its constitution the owner has debts, the provisions of Articles 758 and 759 relating to donations shall be

i.

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

104

PROPERTY REVIEWER
Art. 564. Usufruct may be constituted and in every case from or to a certain day, purely or conditionally 1. pure no terms or conditions 2. conditional 3. with a term or period i. ex die from a certain day ii. in diem up to a certain day iii. ex die in diem from a certain day up to a certain day Dividends from shares are fruits. Rights may be transferred, assigned, or otherwise disposed of by the usufructuary; not exempt from execution, can be sold at public auction. Art. 566. ... With respect to hidden treasure which may be found on the land or tenement, he shall be considered a stranger. Art. 438. Hidden treasure belongs to the owner of the land, building, or other property on which it is found. Nevertheless, when the discovery is made on the property of another, or of the State or any of its subdivisions, and by chance, one-half thereof shall be allowed to the finder. If the finder is a trespasser, he shall not be entitled to any share of the treasure. If the things found be of interest to science of the arts, the State may acquire them at their just price, which shall be divided in conformity with the rule stated. Usufructuary is deemed a stranger, thus no share in the hidden treasure. But, if he is the discoverer or founder, he is entitled only to . Art. 567. Natural or industrial fruits growing at the time the usufruct begins, belong to the usufructuary. Those growing at the time the usufruct terminates, belong to the owner. In the preceding cases, the usufructuary, at the beginning of the usufruct, has no obligation to refund to the owner any expenses incurred; but the owner shall be obliged to reimburse at the termination of the usufruct, from the proceeds of the growing fruits, the ordinary expenses of cultivation, for

G.Rights of the Usufructuary

(a) As to the thing and its fruits (1) right to possess and enjoy the thing itself, its fruits and accessions Art. 566. The usufructuary shall be entitled to all the natural, industrial and civil fruits of the property in usufruct. With respect to hidden treasure which may be found on the land or tenement, he shall be considered a stranger. The usufructuary has the right to enjoy the property, to the same extent as the owner, but only with respect to its use and the receipt of its fruits. Fruits of a thing are those produced at more or less regular intervals, without diminishing the things substance. Fruits belong to the usufructuary except when they diminish the substance of the thing (e.g., minerals in quarries), in which case they will belong to the usufruct only when the owner has dedicated the property to the exploitation of such products. Cannot extract products which do not constitute fruits, because he is bound to preserve the form and substance.

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

105

PROPERTY REVIEWER
seed, and other similar expenses incurred by the usufructuary. The provisions of this article shall not prejudice the rights of third persons, acquired either at the beginning or at the termination of the usufruct. Fruits pending at the beginning of the usufruct belong to the usufructuary, with no obligation to refund the expenses of the owner. But, if expenses for production were incurred by third persons, they must be reimbursed. Fruits growing at the time of the termination of the usufruct belong to the owner, but the usufructuary must be reimbursed from the proceeds of such fruits for his production expenses. Fruits growing at the time of termination should belong to the usufructuary if unable to gather not due to his fault (e.g., force majeure, fault of owner or third persons). (2) right to lease the thing Art. 572. The usufructuary may personally enjoy the thing in usufruct, lease it to another, or alienate his right of usufruct, even by a gratuitous title; but all the contracts he may enter into as such usufructuary shall terminate upon the expiration of the usufruct, saving leases of rural lands, which shall be considered as subsisting during the agricultural year. Other pertinent lease: provisions regarding only the proportionate share of the rent that must be paid by the lessee. Art. 569. Civil fruits are deemed to accrue daily, and belong to the usufructuary in proportion to the time the usufruct may last. Art. 570. Whenever a usufruct is constituted on the right to receive a rent or periodical pension, whether in money or in fruits, or in the interest on bonds or securities payable to bearer, each payment due shall be considered as the proceeds or fruits of such right. Whenever it consists in the enjoyment of benefits accruing from a participation in any industrial or commercial enterprise, the date of the distribution of which is not fixed, such benefits shall have the same character. In either case they shall be distributed as civil fruits, and shall be applied in the manner prescribed in the preceding article. Lease by the owner before the start of the usufruct is not extinguished by such usufruct. Usufructuary will be liable to the owner for damages caused by the fault or negligence of the transferee or lessee. Usufruct does not terminate upon death of the transferee, but upon the death of the usufructuary who made the transfer. General rule: Lease by the usufruct should terminated at the end of the usufruct or earlier. Exception: leases of rural lands, in which case the lease continues for the remainder of the agricultural year. Usufructuary cannot alienate or dispose, nor mortgage or pledge. Usufructuary may dispose when:

Art. 568. If the usufructuary has leased the lands or tenements given in usufruct, and the usufruct should expire before the termination of the lease, he or his heirs and successors shall receive

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

106

PROPERTY REVIEWER
(1) The thing is consumable. (Art. 574) (2) The things by their nature are intended for sale. (3) The things are delivered under appraisal as equivalent to their sale. It is not the naked owner, but the usufructuary who has the right to choose the tenant. (i) Limitations May be leased even without the consent of the owner; but no alienation, mortgage, or pledge. Future crop may be sold; but such sale will be void if not ratified by the owner. (Why? Because its a sale of property not belonging to the usufructuary and those gathered at the termination of the usufruct belonging to the owner.) The buyers remedy is to recover from the usufructuary. If things are consumable or were appraised when delivered, the usufructuary can dispose of them. As owner of the right of usufruct (not of the thing), the usufructuary may then do any act of ownership upon it (alienate, pledge, mortgage, donate); but, once done, cannot be taken back. (Remember that it is the right that is alienated, not the thing.) Only voluntary usufruct can be alienated. (Legal usufruct of parents cannot be alienated because of the relationship.) (ii) Liability of the usufructuarylessor Art. 590. A usufructuary who alienates or leases his right of usufruct shall answer for any damage which the things in usufruct may suffer through the fault or negligence of the person who substitutes him. Liable for the act of the substitute. If there is a sub-usufructuary, it is still the usufructuary who is liable to the owner. Liability is founded upon the duty to preserve the form and substance of the thing in usufruct. (iii) Exceptions to the right of leasing FC Art. 226. The property of the unemancipated child earned or acquired with his work or industry or by onerous or gratuitous title shall belong to the child in ownership and shall be devoted exclusively to the latter's support and education, unless the title or transfer provides otherwise. The right of the parents over the fruits and income of the child's property shall be limited primarily to the child's support and secondarily to the collective daily needs of the family. Legal usufruct of parents over children cannot be alienated, mortgaged, pledged. (Why? Because it is part of the parents duties and because of the relationship that is personal to them.) 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

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

107

PROPERTY REVIEWER
may grant this petition, after due consideration of the facts of the case. Cannot do if under caucion juratoria. Under oath, he made a statement that he badly needs the house/furniture/tools. The lease would show that he, in fact, does not need the property badly. (3) right to improve the thing Art. 579. The usufructuary may make on the property held in usufruct such useful improvements or expenses for mere pleasure as he may deem proper, provided he does not alter its form or substance; but he shall have no right to be indemnified therefor. He may, however, remove such improvements, should it be possible to do so without damage to the property. Useful improvements or expenses only. No alteration of form and substance. Usufructuary may remove improvements only if it is possible without damaging the property. The owner cannot compel the usufructuary to remove the improvements. If the usufructuary does not remove, he has no right to be indemnified. (Why? Because it is like compelling the owner to pay for something which he would not have made.) Right of the usufructuary to remove enforceable only versus the owner, and not against a purchaser in good faith. Registry of improvements as an adjunct to registry proceedings of the thing in usufruct is necessary to protect the usufructuary against third persons regarding the improvements. Art. 580. The usufructuary may set off the improvements he may have made on the property against any damage to the same. (488) If improvements cannot be removed, such may be used to offset any damage caused by the usufructuary to the property. The improvements must have increased the value of the property. If the value of the improvements does not suffice to cover the damage, the usufructuary must pay the difference. If more than enough and the improvements may be removed without injury to the property, settlement of the difference may be agreed upon by the parties. If more than enough but improvements cannot be removed, the excess goes to the owner of the property. (b)As to the legal right of the usufruct itself Right to alienate, except in purely personal ones or when the title constituting the same prohibits the same. Art. 572. The usufructuary may personally enjoy the thing in usufruct, lease it to another, or alienate his right of usufruct, even by a gratuitous title; but all the contracts he may enter into as such usufructuary shall terminate upon the expiration of the usufruct, saving leases of rural lands, which shall be considered as subsisting during the agricultural year.

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

108

PROPERTY REVIEWER
Usufructuary may alienate, pledge, or mortgage the right (not the thing, because he does not own it, except: (1) Legal usufruct of parents (2) Usufruct granted the usufructuary (a) form and substance are not altered (b) not prejudicial to the usufruct (c) lease to another must be made known to the usufructuary for this right ordinarily pertains to him (d) if the usufruct is registered, the buyer must respect the usufruct (e) if not registered or not known by the buyer, the usufruct may be ousted (but the usufructuary can claim damages from the owner) Art. 595. The owner may construct any works and make any improvements of which the immovable in usufruct is susceptible, or make new plantings thereon if it be rural, provided that such acts do not cause a diminution in the value of the usufruct or prejudice the right of the usufructuary. may construct any works and make any improvements or plantings as long as these are not prejudicial to the usufructuary

in

consideration of his person (3) Usufruct acquired through caucion juratoria

H.Rights of the naked owner

(1) At the beginning of the usufruct (see notes on the Obligations of the usufructuary at the beginning of the usufruct in the succeeding sections.) (2) During the usufruct (a) retains title to the thing and improve it (b) may alienate the property (3) Termination or at the end of the usufruct recover property from the usufructuary in the same preserved form and substance with room for ordinary wear and tear subject to ordinary repairs 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. Right to exercise all rights of ownership (i.e., right to protection of interest and right to benefit from the products not constituting fruits) consistent with the enjoyment of the thing by the usufruct. Since the jus disponendi and dominium directum (title) reside in the owner, he may alienate the thing, provided:

I. Obligations of the Usufructuary

(1) At the beginning of the usufruct or before the exercise of the right of the usufruct Art. 583. The usufructuary, before the 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 fulfill the obligations imposed upon him in accordance with this Chapter.

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

109

PROPERTY REVIEWER
These requirements are not conditions precedent to the commencement of the right of the usufructuary, but merely to the entry upon the possession and enjoyment of the property. (a) To make an inventory (1) Requisites of an inventory Elements: No need for concurrence of owner before doing so. Notice suffices, and owner is free to attend or not, personally or through a representative. If he does not attend, and he discovers omissions, he may ask for correction, but the burden of proving the error is on him. Expenses for this are borne by the usufructuary Condition of the movables and immovables must be itemized and described No particular form required by law except when there are real properties which demands a formal legal instrument for 3rd parties (2) Exception to requirement of inventory No one will be injured thereby (Art 585) Title constituting usufruct excused the making of inventory Title constituting usufruct already makes an inventory Art. 585. The usufructuary, whatever may be the title of the usufruct, may e excused from the obligation of making an inventory, or of giving security, when no one will be injured.

If owner refuses to grant exemption, judicial declaration may be obtained. Code is silent when usufructuary fails to make an inventory; but no effect as to the right of usufructuary to enjoy the property and its fruits, There is only a prima facie presumption that the property was received by the usufructuary in good condition, and even if he is already in possession, he may still be required to make an inventory.

(b) To give a bond for the faithful performance of duties as usufructuary Covers all obligations imposed on the usufruct, whether in the chapter on Obligations of the Usufructuary or not Security may be a personal bond, a pledge, or a mortgage.

(1) No bonds required

(i) No prejudice would result (Art. 585) (ii) Usufruct is reserved by donor (Art. 584) (iii) Title constituting usufruct excused usufructuary (iv) Caucion juratoria

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.

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

110

PROPERTY REVIEWER
Art. 583. The usufructuary, before entering upon the enjoyment of the property, is obliged: (2) To give security, binding himself to fulfill the obligations imposed upon him in accordance with this Chapter. 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. 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 sentimental value, he may demand their delivery to him upon his giving security for the payment of the legal interest on their appraised value. Art. 599. The usufructuart may claim any matured credits which form a part of the usufruct if he has given or gives the proper security . If he has been excused from giving security or has been able to give it, or if that given is not sufficient, he shall need the authorization of the owner, or of the court in default thereof, to collect such credits. The usufructuary who has given security may use the capital he has

(2) Effect of Filing a Bond (Art 588) Art. 588. After the security has been given by the usufructuary, he shall have a right to all the proceeds and benefits from the day on which, in accordance with the title constituting the usufruct, he should have commenced to receive them. Art. 589. The usufructuary shall take care of the things given in usufruct as a good father of a family. Upon the giving of the security, the usufructuary will be entitled to all the benefits accruing since the time when he should have begun to receive them. The effect is thus retroactive.

(3) Effect of Failure to give bond 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 movable be sold, that the public bonds, instruments of credit payable to order or to bearer be converted into registered certificates 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

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

111

PROPERTY REVIEWER
collected in any manner he may deem proper. The usufructuary who has not given security shall invest the said capital at interest upon agreement with the owner; In default of such agreement, with judicial authorization; and, in every case, with security sufficient to preserve the integrity of the capital in usufruct. Owner may choose: retention of property as administrator OR receivership OR delivery to usufructuary without prejudice to later demands. Art. 586 grants a potestative right to the owner, if he does not wish to exercise it, he may deliver the property to the usufructuary, but such delivery cannot be interpreted as a renunciation of the right to demand the security. Usufructuary, not yet in possession, may alienate his right, and the transferee may later give the required security The usufructuary, not yet in possession, cant lease the property If a security bond has been posted, collection and investment allowed If no security bond, caucion juratoria applies and collection and investment only by leave of the owner usufruct over a periodic income or pension) In cases of Caucion Juratoria

(iv)

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 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 a sworn undertaking allowed by way of exception and under special circumstances, wherein the usufructuary claims that he is in dire need of the house and the implements/furniture and asks that he be allowed to enjoy the same even without giving the required security Must also indicate that he cannot afford the bonds/security Permitted as a matter of common humanity Usufructuary cant alienate his right, nor lease the property, because that would be inconsistent with his alleged need for the property. Only applies to houses, tools for trade, implements, furniture (e.g., utensils, appliances) Usufructuarys word is as good as his bond

(4) No duty to give security (as well as to make an inventory) (i) Waived by the owner (ii) Title of usufruct exempts the usufructuary (iii) Usufructuary asks for exemption and no one will be injured by such exemption (i.e.,

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

112

PROPERTY REVIEWER
(2) During the Usufruct (a) To take care of the things like a good father of the family Art. 589. The usufructuary shall take care of the things given in usufruct as a good father of a family. No notion of necessary expenses in usufruct, only useful and ornamental expenses If normal usufruct, theres liability for damages If abnormal usufruct, no need to take care like a good father of a family Usufructuary has duty to make ordinary repairs and notify owners of urgency of extraordinary repairs Naked owner need not wait for the termination of the usufruct before bringing an action for damages caused by the fault or negligence of the usufruct. Art. 592. The usufructuary is obliged to make the ordinary repairs needed by the thing given in usufruct. By ordinary repairs are understood such as are required by the wear and tear due to the natural use of the thing and are indispensable for its preservation. Should the usufructuary fail to make them after demand by the owner, the latter may make them at the expense of the usufructuary. (1) Requisites for ordinary repairs: Deterioration of defects arise from the natural use of the thing Repairs are necessary for the preservation of the thing Occasional and without the fault of the usufructuary Refers to ordinary repairs during, not before, the usufruct. Defects requiring ordinary repairs and existing at the time of the usufruct began, are for the owner to address If no repairs are made by the usufructuary, even after the demand by the owner, the latter may pay for the repairs, with right of reimbursement from the usufructuary (2)Effects of renunciation of usufruct: (i) If the ordinary repairs are due to the defects caused by the fault of the usufructuary, he cant exempt himself from liability by making such renunciation (ii) If the defects prior to the renunciation are due to the ordinary use of the thing, the usufructuary

Art. 610. A usufruct is not extinguished by bad use of the thing in usufruct; but if the abuse should cause considerable injury to the owner, the latter may demand that the thing be delivered to him, binding himself to pay annually to the usufructuary the net proceeds of the same, after deducting the expenses and the compensation which may be allowed him for its administration. Although pater familias is required, bad use of the thing will not extinguish the usufruct Owner becomes entitled to delivery and administration of the thing should the abuse cause substantial injury to the owner

(b) To undertake Ordinary Repairs

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

113

PROPERTY REVIEWER
may exempt himself by returning to the owner the fruits received during the time the defect took place. (iii) If he keeps the fruits, he must defray those expenses even after he has renounced the usufruct. Defects arising from the renunciation are of course chargeable only to the owner (c) To Notify the Owner of Need to Undertake Extra-Ordinary Repairs Art. 593. Extraordinary repairs shall be at the expense of the owner. The usufructuary is obliged to notify the owner when the need for such repairs is urgent. Art. 594. If the owner should make the extraordinary repairs, he shall have a right to demand of the usufructuary the legal interest on the amount expended for the time that the usufruct lasts. Should he not make them when they are indispensable for the preservation of the thing, the usufructuary may make them; but he shall have a right to demand of the owner, at the termination of the usufruct, the increase in value which the immovable may have acquired by reason of the repairs. (1) Kinds of defects requiring extra-ordinary repairs (a) Those caused by exceptional circumstances, WON they are necessary for the preservation of the thing (b) Those caused by the natural use of the thing, but are not necessary for its preservation Expenses for extraordinary repairs are borne by the owner

(2) Naked owner obliged to undertake them but when made by the owner, usufructuary pays legal interest on the amount while usufruct lasts (Art. 594, par. 1) (3) Naked owner cannot be compelled to undertake extra-ordinary repairs (a) If indispensable and owner fails to undertake extraordinary repairs, may be made by the usufructuary (Art. 594, par. 2) (b) To pay for annual charges and taxes on the fruits (c) To notify owner of any act detrimental to ownership (Art. 601) Art. 601. The usufructuary shall be obliged to notify the owner of any act of a third person, of which he may have knowledge, that may be prejudicial to the rights of ownership, and he shall be liable should he not do so, for damages, as if they had been caused through his own fault. Reasons for the requirement of notice: (1) Owner has interest in defending property (2) Usufruct will eventually revert to the owner (3) Injury to the possession will result in injury to the ownership When notice is required (1) When a 3rd party commits acts detrimental to the rights of

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

114

PROPERTY REVIEWER
ownership and not merely naked ownership Not when whats affected are usufructuary rights (on fruits) because the usufructuary has his own right of action vs. the intruder (2) When urgent repairs need be made (3) When an inventory needs to be made What if no notice? (1) Usufructuary will be liable for damage (2) Usufructuary cant make extraordinary repairs Art. 593. Extraordinary repairs shall be at the expense of the owner. The usufructuary is obliged to notify the owner when the need for such repairs is urgent. (3) The inventory proceeds shall be subject to scrutiny by the owner (d) To shoulder the costs of litigation regarding usufruct Art. 602. The expenses, costs and liabilities in suits brought with regard to the usufruct shall be borne by the usufructuary. (e) To answer for the fault of alienee, lessee, or agent of the Usufructuary Art. 590. A usufructuary who alienates or leases his right of usufruct shall answer for any damage which the things in usufruct may suffer through the fault or negligence of the person who substitutes him. The liability of the usufructuary is under the general rule of liability for fault or negligence Substitutes (including subusufructuaries) shall answer to the usufructuary who, in turn, answers to the owner. Usufructuary is till the one liable for taxes and expenses

(3) Termination of the Usufruct Obligation of usufruct is to deliver the thing in usufruct to the owner in the condition in which he has received it. Thing need not be in exactly the same condition as when he received it because there may be repairs undertaken EXCEPTION: Abnormal usufruct

Such expenses must be borne by the usufructuary because obviously, they affect his own rights as usufructuary. Will apply only when the usufructuary loses, because only by then will the owners expenses be chargeable to the usufructuary

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 when delivered. In case they were not appraised, he shall have the right to return at the same quantity and quality, or pay their current price at the time the usufruct ceases. (1) Abnormal usufruct, also called quasiusufruct is essentially a simple loan.

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

115

PROPERTY REVIEWER
(2) Usufruct is not on the consumable itself, but upon the sum representing its value or upon another thing of equal kind and quality. (3) The usufructuary becomes the thing while the grantor becomes a creditor entitled to the return of its value or of another thing of equal quantity and quality. (4) The ususfruct has the right of retention for the taxes and extraordinary expenses he has paid for. Art. 612. Upon the termination of the usufruct, the thing in usufruct shall be delivered to the owner, without prejudice to the right of retention pertaining to the usufructuary or his heirs for taxes and extraordinary expenses which should be reimbursed. After the delivery has been made, the security or mortgage shall be cancelled. Art. 569. Civil fruits are deemed to accrue daily and belong to the usufructuary in proportion to the time the usufruct may last. (474) Every payment or benefit shall be considered and distributed as civil fruit of such right Accruing daily, such belong to the usufructuary as long as the usufruct lasts. Thereafter, the owner owns them.

(2) Usufruct over Property Held in Common 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 coownership 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. The right of the usufructuary is not affected by the division of the property in usufruct among the coowners The usufructuary exercises all rights pertaining to nthe co-owner regarding the administration and collection of fruits and interests from the property. If partitioned, the usufructuary continues upon the part allotted to the co-owner concerned. Even if usufructuary was not notified of the partition, he is still bound by such division.

J. Special Cases of Usufruct

(1) Usufruct over A Pension or Periodical Income

Art. 570. Whenever a usufruct is constituted on the right to receive a rent or periodical pension, whether payable in money or in fruits or in the interest on bonds or securities payable to bearer, each payment due shall be considered as the proceeds or fruit of such right. Whenever it consists in the enjoyment or benefits accruing form a participation in any industrial or commercial enterprise, the date of which is not fixed, such benefits shall have the same character. In either case, they shall be distributed as civil fruits, and shall be applied in the manner prescribed in the preceding article.

(3) Usufruct of Heads of Cattle

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

116

PROPERTY REVIEWER
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 animals that die each year from natural causes, or are lost due to the rapacity of beasts of prey. If the animals on which the usufruct is constituted should all perish, without the fault of the usufructuary, on account of some contagious disease or any other uncommon event, the usufructuary shall fulfill his obligation by delivering to the owner the remainswhich may have been saved from the misfortune. Should the herd or flock perish in part, also by accident and without the fault of the usufructury, the usufruct shall continue on the part saved. Should the usufruct be on sterile animals, it shall be considered, with respect to its effects, as though constituted on fungible things. The usufruct on livestock, herd or flock only, not on single animals The Usufructuary is not obliged to replace perished animals if the total or partual loss is due to unexpected or unnatural events (i.e., contagious disease) Usufructuary is obliged to make replacements when the loss is due to death from natural causes or due to the rapacity of beasts of prey. In cases of sterile animals, the rules on consumables shall apply (meaning an equivalent sum or thing will be given in exchange for the consumed thing). appraised when delivered. In case they were not appraised, he shall have the right to return at the same quantity and quality, or pay the current price at the time of the usufruct ceases. (4) Usufruct Over Vineyards or Woodlands Art. 576. If in the 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 may demand that the later remove them and clear the land. Art. 577. The usufructuary or woodland may enjoy all the benefits which it may reproduce 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 if 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 un usufruct, and in such case shall first inform the owner of the necessity for the work. Usufruct may use the dead trunks and those cut-off or uprooted by

Art. 573. Whenever thee 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

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

117

PROPERTY REVIEWER
accident, but must replace them with new plants. The old definition of vineyards and olive orchards have been replaced by fruit-bearing trees and shrubs. has debts, the provisions of articles 758 and 759 relating to donations shall be applied, both with respect to the maintenance of the usufruct and to the obligation of the usufructuary is constituted, to make periodical payments, even if there should be no known capital. Art. 758. When the donation imposes upon the donee the obligation to pay the debts of the donor, if the clause does not contain any declaration to the contrary, the former is understood to be liable to pay only the debts which appear to have been previously contracted. In no case shall the donee be responsible for debts exceeding the value of the property donated unless a contrary intention clearly appears. Art. 759. There being no stipulation regarding the payment of debts, the donee shall be responsible therefore only when the donation has been made in fraud of creditors. The donation is always presumed to be in fraud of the creditors, when at the time thereof, the donor did not reserve sufficient property to pay his debts prior to the donation. When the usufruct is a universal one (i.e., constituted on all the properties of the owner), and some of the tenements are mortgaged, the usufruct will be liable to pay for such mortgage, only when (Art. 598): (a) There is an express stipulation (b) When the usufruct was created in fraudof creditors

(5) Usufruct on a Right of Action Art. 578. The usufructuary of an action to recover real property of 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 if the action he acquires the thing claimed, the usufruct shall be limited to the fruits, the dominion remaining with the owner. To recover real property or a real right or any immovable property, the usufruct has a right of action thru the courts Usufruct can demand from the owner authority to bring such action and such proofs was may be necessary to win the case The usufruct must be registered to bind the 3rd parties

(6) Usufruct on Mortgaged Property Art. 600. The usufructuary of a mortgaged immovable shall not be obliged to pay the debt for the security of which the mortgage was constituted. Should the immovable be attached or sold judicially for the payment of the debt, the owner shall be liable to the usufrudtuary for whatever the latter may lose by reason thereof. Art. 598. If the usufruct be constituted on the whole of a patrimony, and if at the time of its constitution the owner

(7) Usufruct Over an Entire Patrimony Art. 598. If the usufruct be constituted on the whole of a patrimony, and if at

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

118

PROPERTY REVIEWER
the time of its constitution the owner has debts, the provision of articles 758 and 759 relating to donations shall be applied, both with respect to the maintenance of the usufruct and to the obligation of the usufructuary to pay such debts. The same shall be applied in case the owner is obliged, at the time the usufruct is constituted, to make periodical payments, even if there should be no known capital. Usufructuary will be liable only if expressly stipulated or when usufruct is in fraud of creditors There is a presumption of fraud when the donor did not reserve property for the payment of debts If the donation so stipulates, and there is no clause to the contrary. The donee shall be liable for all debts previously contracted and up to the value of the property donated. deteriorates much faster than the others. Liability of ususfruct: (a) If deterioration is through normal usage, not liable; no need for repairs or restitution to former condition; may return them at that condition at the end of the usufruct; failure to return will mean liability for the things value at the end of the usufruct. (b) If due to an event which endangers preservation and hes without fault, he must make ordinary repairs (c) If due to fraud or negligence, hes liable for the things value at the time of the loss

(9) Usufruct Over Consumable Property 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 when delivered. In case they were not appraised, he shall have the right to return at the same quantity and quality, or pay their current price at the time the usufruct ceases. Actually, a simple loan Also called a qusai-usufruct Usufructuary becomes the owner and therefore may consume the thing The naked owner, as creditor, is entitled to payment of equivalent sum or equivalent thing at the end of the usufruct

(8) Usufruct over deteriorable property Art. 573. Whenever the usufruct includes things which, without being consumed, gradually deteriorate through wear and tear, 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.

Usufructuary is liable only when he causes the detrioration through his fraud or negligence. An abnormal usufruct is one constituted on property which

K.

Extinguishment of Usufruct

Art 603. Usufruct is extinguished:

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

119

PROPERTY REVIEWER
(1) By the death of the usfructuary, unless a contrary intention clearly appears; (2) By the expiration of the period for which it was constituted, or by the fulfillment of any resolutory condition provided in the title creating the usufruct; (3) By merger of the usufruct and ownership in the same person; (4) By renunciation of the usufructary; (5) By the total loss of the thing in usufruct; (6) By the termination pf the right of the person constituting the usufruct; (7) By prescription (1) Death of usufructuary Gen. Rule : Death of the usufructuary extinguishes the usufruct: EXCEPTIONS: (a) Successive usufruct (Art. 606) Art. 606. A usufruct granted for the time that may elapse before a third person attains a certain age, shall subsist for the number of years specified, even if the third person should die before the period expires, unless such usufruct has been expressly granted only in consideration of the existence of such person. (b) Multiple usufructs (Art. 611) Art. 611. A usufruct constituted in favor of several persons living at the time of its constitution shall not be extinguished until death of the last survivor. What if theres a stipulated period or resolutory condition and the usufructuary dies before the happening of the period? Three views:
BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

(1) Usufruct cant be extended beyond the lifetime of the usufructuary because of the personal character of this juridical relation. (2) Usufruct subsist and passes on to the heirs of the usufructuary because the will of the parties must be respected (3) Usufruct will not be terminated by death ONLY when it is expressly stipulated that should persist until the happening of the resolutory condition or period (2) Expiration of Period or fulfillment of resolutory condition imposed on the usufruct by the person constituting the usufruct The time during which the usufructuary has not enjoyed the thing because of ignorance, dispossession by others, or any other cause, shall be counted against him, but NOT if hes not at fault or negligent. If the usufructuary is a juridical person, period must not exceed 50 years (a) time that may elapse before a third person attains a certain age, even if the latter dies before the period expiresunless granted only in consideration of his existence Art. 606. A usufruct granted for the time that may elapse before a third person attains a certain age, shall subsist for the number of years specified, even if the third person should die before the period expires, unless such usufruct has been expressly granted only in consideration of the existence of such person.

120

PROPERTY REVIEWER
(3) Merger of rights and usufruct and naked ownership in one person (fusion) Naked ownership of thing and right of usufruct is vested in one person (4) Renunciation of usufruct It must be express, voluntarily, and knowingly executed by the usufruct Since this is an abandonment of rights by the usufructuary, consent of the naked owner is not needed, subject to the rights of creditors If the renunciation is made in fraud of creditors, the latter may rescind such waiver under Art. 1381. (5) All other contracts specially declared by law to be subject to rescission. (5) (a) Extinction of Loss of Property If destroyed property is insured before the termination of the usufruct.

Limitations: (a) it must be expresstacit renunciation is not sufficient. (b) if made in fraud of creditors, waiver may be rescinded by them through action under Art 1381 Art. 1381. The following contracts are rescissible: (1) Those which are entered into by guardians whenever the wards whom they represent suffer lesion by more than one-fourth of the value of the things which are the object thereof; (2) Those agreed upon in representation of absentees, if the latter suffer the lesion stated in the preceding number; (3) Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them; (4) Those which refer to things under litigation if they have been entered into by the defendant without the knowledge and approval of the litigants or of competent judicial authority;

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 in the enjoyment of the new building, should one be constructed, or shall receive the interest on the insurance indemnity if the owner does not wish to rebuild. Should the usufructuary have refused to contribute to the insurance, the owner insuring the tenement alone, the latter shall receive the full amount of the insurance indemnity in case of loss, saving always the right granted to the usufructuary in the preceding article. (1) When the insurance premium paid by both owner and usufructuary, and the property is destroyed (a) If the owner constructs new building, usufruct subsists on a new building: (i) if the building costs more than the insurance proceeds, owner is not obliged to give interest of proceeds to usufructuary; (ii) if building costs less than the insurance proceeds, usufructuary should get interest on amount not used. (b) If owner does not rebuild and collects insurance, interest upon the insurance proceeds (as fruits of indemnity) must be paid to usufructuary (i) When insurance taken by owner only because usufructuary refuses 121

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

PROPERTY REVIEWER
Owner is entitled to entire insurance proceeds If he does not rebuild, the usufruct continues over the remaining land and materials or the owner may pay interest on the value of both (a) insurance proceeds to usufructuary (b) no obligation to rebuild (c) usufruct continues on the land (d) owner does not share in insurance proceeds (b)If destroyed property is not insured Art. 607. If the usufruct is constituted on immovable property of which 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 and the materials. The same rule shall be applied if the usufruct is constituted on a building only and the same should be destroyed. But in such a case, if the owner should wish to construct another building, he shall have a right to occupy the land and to make use of the materials, being obliged to pay to the usufructuary, during the continuance of the usufruct, the interest upon the sum equivalent to the value of the land and of the materials. (a) If building forms part of an immovable under usufruct If owner does not rebuild, usufruct continues over the land and materials If owner rebuilds, usufructuary must allow owner to occupy the land and to make use of the materials, but the owner must pay interest on the value if both the land and materials If Building is destroyed: Usufruct on both Usufruct on land & building building Only Usufruct on land Usufruct on ends but usfruct on building ends and building continues owner may use

(2) When the insurance taken by owner only because the usufructuray refuses (Art. 608, par. 2) (a) owner entitled to insurance money (no interest paid to usufructuary (b) if he does not rebuild, usufruct continues over the remaining land and/ or owner may pay interest on value of both Art. 607. If the usufruct is constituted on immovable property of which 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 and the materials. The same rule shall be applied if the usufruct is constituted on a building only and the same should be destroyed. But in such a case, if the owner should wish to construct another building, he shall have a right to occupy the land and to make use of the materials, being obliged to pay to the usufructuary, during the continuance of the usufruct, the interest upon the sum equivalent to the value of the land and of the materials. (c) if owner rebuilds, usufruct does not continue on new building, but owner must pay interest on value on land and old materials (3) When insurance taken by usufructuary only depends on value of usufructuarys insurable interest (not provided for in CC)

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

122

PROPERTY REVIEWER
Usufructuary still entitled to use of land and use of remaining materials If naked owner wishes to rebuild but usufructuary refuses, the latters will prevails until the end of the usufruct materials Owner who wish to rebuild is entitled to use of the land, because use of the building also implies the use of the land Since theres no usufruct on the land, owners preference is given more weight, with the right to use land and payment to usufructuary of interest during such use. Interest must be on both land and materials Person at fault, if any, must indemnify the one whose rights were injured no prescription as long as usufructuary receives the rents from the lease of the property, or enjoys the price of the sale of his rights Cases covered (a) 3rd party acquires ownership of thing or property in usufruct (b) right of ownership is lost thru prescription (c) right of usufruct is not began within prescriptive periods (d) tacit abandonment of non-user of thing held in usufruct for a required period. refers to acquisitive period under:

Art 1106. By prescription, one acquires ownership and other real rights thru the lapse of time in the manner and under the conditions laid down by law. In same way, rights and actions are lost by prescription. Art 1117. Acquisitive prescription of dominion and other real rights may be ordinary or extraordinary. Ordinary acquisitive prescription requires possession of things in good faith and with just title for the time fixed by law. (8) What do not cause extinguishment of usufruct (a) Expropriation of thing in usufruct Art 609. Should the thing in usufruct be expropriated for public use, the owner shall be obliged either to replace it with another thing of the same value and of similar conditions, or to pay the usufructuary the 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 security for the payment of the interest.

(6)

Termination of right of person constituting the usufruct refers to termination of the right of the person constituting the usufruct, not to a condition imposed upon the usufruct itself, which exists prior to the creation of the usufruct over and above the expiration of said period or fulfillment of the condition clause If a person constituted a usufruct believing that he was the owner and later on was defeated in an action concerning ownership, such usufruct must necessarily terminate. Death of the naked owner does not terminate the usufruct because ownership is passed on to his heirs.

(7) Prescription does not refer to non-use by the usufructuary but to the use by a 3rd person

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

123

PROPERTY REVIEWER
Expropriation does not extinguish usufruct, substitution of the thing in usufruct allowed. f for public use, owner is given the option to replace the thing or pay the usufructuary the legal interest on the amount of indemnity for the whole period of usufruct with its appropriate security. (1) Non-fulfillment of conditions. (2) Any cause agreed upon by the parties (3) Rescission or annulment of the act constituting the usufruct (4) Special causes for extinguishment of legal usufructs

(b) Bad use of thing in usufruct amenable to defenses only Art 610. A usufruct is not extinguished by bad use of thing in usufruct; but if the abuse should cause considerable injury to the owner, the latter may demand that the thing be delivered to him, binding himself to pay annually to the usufructuray the net proceeds of the same, after deducting the expenses and the compensation which may be allowed him for its administration. no extinguishments due to bad use or misuse bad use entitles the owner to demand the delivery and administration of the thing, but such bad use must cause considerable injury, not to the thing, but to him (owner). Seldom happens when theres security because there can be no security as he can recover on the security. Courts must determine whether the bad use produces such considerable injury as would justify the exercise of this right.

(c) usufruct over a building (Arts. 607, 608)

L. Other causes of extinguishments

BLOCKD2008 al.beth.kalin.may.miles.py special thanks to: anna.bodee.cha.etol.hardy.len.mia

124