CHAPTER 3 – OBLIGATIONS OF THE
USUFRUCTUARY
Article 583. The usufructuary, before
entering upon the enjoyment of the
property, is obliged to:
a. To make, after notice to the owner or
his legitimate representative, an
inventory of the property, which
shall contain an appraisal of the
movables and a description of the
condition of the immovables;
b. To give security, binding himself to
fulfill the obligations imposed upon
him in accordance with this Chapter.
1. Obligations of the usufructuary may be
classified into three groups:
1. Those before the usufruct To make an inventory of the
begins property
To give security
2. Those during the To take care of the property
usufruct: (Article 589)
To replace with the young
thereof animals that die or
lost in certain cases when
the usufruct is constituted
on flock or herd of livestock
(Article 591)
To make ordinary repairs
(Article 592.1)
To notify the owner of
urgent extraordinary repairs
(Article 593)
To permit works and
improvements by the naked
owner not prejudicial to the
usufruct (Article 595)
To pay annual taxes and
charges on the fruits Article
596)
To pay debts when the
usufruct is constituted on
the whole of the patrimony
(Article 598)
To secure the naked
owner’s or court’s approval
to collect credits in certain
cases (Article 599)
To notify the owner of any
prejudicial act committed by
third persons (Article 601)
To pay for court expenses
and costs regarding usufruct
(Article 602)
Those at the termination of To return the thing in
the usufruct usufruct to the naked owner
unless there is a right of
retention (Article 612)
To pay legal interest for the
time that the usufruct lasts,
on the amount spent by the
owner for extraordinary
repairs (Article 594) and the
proper interest on the sums
paid as taxes by the owner
(Article 597)
To indemnify the naked
owner for any losses due to
his negligence or of his
transferees (Article 589-
590)
2. The making of an inventory is not
necessary before the commencement of
the right of the usufructuary or the
coming into existence of the usufruct but
is merely a condition to be complied
with before the usufructuary may
enter into the possession and
enjoyment of the property.
3. In making the inventory, the
concurrence of the naked owner is
not required.
a. It is sufficient that he is notified of
such fact personally or through a
legitimate representative.
b. Note that the law says legitimate
and not legal. So allowed are the
spouses, ascendants,
descendants, etc.
4. The expenses of the inventory should be
borne by the usufructuary. Rationale:
it is his duty to do so.
5. Article 583 does not provide for a form of
inventory. This it may be contained in
a private instrument. But to affect third
persons, must be in a public instrument.
6. The inventory must contain an
itemized list and an appraisal of the
movables and description of the
condition of the immovables.
7. Obligation to give security:
a. Purpose – to insure the fulfillment
by the usufructuary of the
obligations imposed upon him
including the duty to return to the
owner the thing in usufruct upon
the termination of the usufruct.
b. Form – does not specify the form
of security that should be given.
Article 584. The provisions of No. 2 of the
preceding paragraph shall not apply to the
donor who has reserved the usufruct of the
property donated, or to the parents who are
usufructuaries of their children’s property,
except when they contract a second
marriage.
1. Note: the donor or the parents are not
exempted from the obligation of making
an inventory.
Article 585. The usufructuary, whatever the
title of the usufruct, may be exempt from
the obligation of making an inventory or of
giving security, when no one will be injured
thereby.
1. The usufructuary may be excused from
the obligation in the following cases:
a. Where the naked owner
renounces or waives his right to
the inventory or security.
b. Where the title constituting the
usufruct relieves the usufructuary
from the obligation. (Frequently
true in those constituted by a last
will and testament or by a deed of
donation in view of the trust
which the testator or donor has in
the usufructuary.)
c. Where the usufructuary asks that
he be exempted from the
obligation and no one will be
injured thereby. (Usufructuary
may apply to the courts for relief
if the naked owner refuses to
grant the exemption in case, for
example, the usufruct is over the
right to receive a periodic income.
No one will be injured because the
capital or the property itself is not
delivered to the usufructuary.)
Article 586. Should the usufructuary fail to
give security in the cases in which he is
bound to give it, the owner may demand
that the immovables be placed under
administration, that the movables be sold,
that the public bonds or instruments of
credit payable to order or to bearer be
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 of the public
instruments and bonds, and the proceeds of
the property placed under administration,
shall belong to the usufructuary.
Furthermore, the owner may, if he so
desires, until the usufructuary gives security
or is excused from so doing, retain in his
possession the property in the usufruct as
administrator, subject to the obligation to
deliver to the usufructuary the net proceeds
thereof, after deducting the sums which
may be agreed upon or judicially allowed
him for such administration.
1. The proceeds of sale of movables and
credit instruments, and the net proceeds
of immovables placed under
administration shall belong to the
usufructuary.
2. The potestative right to retention
and administration in paragraph 3
subsists until the usufructuary gives
security or is excused from so doing.
3. Until he gives the proper security, the
usufructuary cannot enter upon the
possession and enjoyment of the
property.
a. He may not collect any matured
credits nor invest capital in
usufruct without the consent of
the owner or judicial
authorization. (Article 599)
b. The failure to give security does
not extinguish the right of
usufruct. (Article 603)
4. Note that Article 586 speaks only of
security. It would seem that the
failure of the usufructuary to make
an inventory, when not excused,
does not have the same effect as
when security is not given.
Article 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.
The same rule shall be observed with
respect to implements, tools and other
movable property necessary for an industry
or vacation in which he is engaged.
If the owner does not wish that certain
articles be sold because of their artistic
worth or because they have a sentimental
value, he may demand their delivery to him
upon his giving of security for the payment
of the legal interest on their appraised
value.
1. Applies when the usufructuary who is
under obligation to give security cannot
afford to do so and no one is willing to
give security for them.
2. May allow the usufructuary to enjoy the
property upon taking oath, in lieu of giving
security:
a. To take care of the property, and
b. Retain it until the termination of
the usufruct.
3. The usufructuary must first ask the naked
owner to grant him the rights mentioned,
and should the latter refuse, he may
resort to the courts.
4. Articles with artistic or sentimental value
may not be sold.
Article 588. After the security is 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 usufructuary, he should
have commenced to receive them.
1. This refers to the retroactivity of giving
security.
Article 589. The usufructuary shall take care
of the things given in usufruct as a good
father of a family.
1. The usufructuary should exercise the
same diligence over the property in
usufruct which he would exercise over his
own.
Article 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.
1. The usufructuary is the owner of the right
of usufruct.
2. Hence, he may alienate or lease his right.
3. The liability of the usufructuary is founded
on his duty to preserve the form and
substance on the thing in usufruct.
Article 591.
1. A flock or herd implies a group or
company of animals, or many animals,
although the law does not provide for a
minimum number.
2. First paragraph – the usufructuary has the
duty to make replacement although the
death of the animals is due to natural
causes. Replacement is to be made only
from the young produced (although they
are fruits or which ordinarily belong to the
usufructuary) so that if there are no
young or the number of the young is less
than that of the animals that dies, the
usufructuary has no duty to replace
or to fill up the difference. Rationale:
Replacement is justified to preserve the
form and substance of the animals.
3. Under the second and third paragraphs,
there is no duty to replace provided the
usufructuary is without fault.
a. Note: even if the partial loss is
due to the fault of the
usufructuary, the usufruct
continues with the remainder.
Bad use does not extinguish the
usufruct but the owner may bring
the necessary action for the
protection of his rights.
4. Fourth paragraph – if the animals are
sterile, usufruct shall be treated as
constituted on fungible things. Article 574
applies.
Article 592. The usufructuary is obliged to
make ordinary repairs needed by the thing
given in usufruct.
By ordinary repairs are understood as such
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. The defects requiring ordinary repairs
must have occurred during the usufruct,
whether with or without the fault of the
usufructuary.
2. If the defects are due to the fault of the
usufructuary, he is liable for damages and
he cannot renounce the usufruct to
exempt himself from liability.
3. The usufructuary is not liable for
deterioration resulting from wear
and tear not due to his fraud or
negligence, unless the deterioration
 could have been prevented or
arrested by ordinary repairs and he
failed to make them without valid
reason.
Article 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.
Article 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
needed for the preservation of the thing, the
usufructuary may make them; but he shall
have the right to demand of the owner the
increase in value which the immovable may
have acquired by reason of the repairs.
1. The law does not impose an obligation on
the naked owner or the usufructuary to
make extraordinary repairs on the
property in usufruct. It is optional for
them to make such repairs.
2. Extraordinary repairs – repairs which are
not ordinary. The following are
extraordinary repairs:
a. Those required by the wear and
tear due to the natural use of the
thing but not indispensable for its
preservation.
b. Those required by the
deterioration of or damage to the
thing caused by exceptional
circumstances but not
indispensable for its preservation.
c. Those required by the
deterioration of or damage to the
thing caused by exceptional
circumstances and are
indispensable for its preservation.
3. Rule for a and b above:
a. Owner cannot be compelled to
make them. If they should make
them, at his expense and with a
right to demand of the
usufructuary legal interest during
the duration of the usufruct.
b. Usufructuary may make them but
he is not entitled to indemnity
because they are not needed
for the preservation of the
thing.
4. Rule for c:
a. If the owner shall make them, at
his expense.
b. If the usufructuary shall make
them, has the right to the
increase in value, provided the
following are present:
i. He notified the owner of
the urgency of the
repairs.
ii. Owner failed to make the
repairs notwithstanding
the notification.
iii. Repair is necessary for
the preservation of the
property.
5. Right of retention:
a. Usufructuary has a right of
retention even after the
termination of the usufruct until
he is reimbursed for the
increase in value of the
property caused by
extraordinary repairs for
preservation.
Article 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.
1. The owner has no right to demand legal
interest on his expenses because they
were voluntarily incurred by him.
2. The owner may even alienate his property
or make changes thereon as long as he
does not impair the right of the
usufructuary (Article 581).
Article 596. The payment of annual taxes
and charges and of those considered as a
lien on the fruits shall be at the expense of
the usufructuary for all the time that the
usufruct lasts.
Article 597. The taxes which, during the
usufruct, may be imposed directly on the
capital shall be at the expense of the owner.
If the latter has paid them, the usufructuary
shall pay him the proper interest on the
sums which may have been paid in that
character; and, if the said sums have been
advanced by the usufructuary, he shall
recover the amount thereof at the
termination of the usufruct.
1. Usufructuary must pay annual charges
and taxes imposed upon the fruits
(expenses affecting fruits).
2. A real property tac being a burden upon
the capital, should be paid by the owner
of the land and not by a usufructuary.
Article 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 applied both with
respect to the maintenance of the usufruct
and to the obligation of 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.
1. Applies to a universal usufruct.
2. The liability of the usufructuary for the
debts of the naked owner is the same as
that of the donee under Article 758 and
759.
3. In the absence of stipulation, the
usufructuary shall be responsible
only when the usufruct was created
in fraud of creditors which is always
presumed when the owner did not
reserve sufficient property to pay his
debts prior to the creation of the
usufruct.
Article 599.
1. Usufruct of matured credits.
a. If he has given sufficient security,
he may claim matured credits
forming part of the usufruct, collet
them and use and invest, with or
without interest, the capital he
has collected, in any manner he
may deem proper.
b. If he has not given security, or
that is given is not sufficient, or
he has been excused from giving
security, he may collect the
credits and invest the capital
which must be at interest,
with the consent of the naked
owner or approval of the
court. The credits themselves
belong to the naked owner but
the usufructuary has the right to
use and invest them, and to
receive the interest therefrom.
2. In every case, the capital must be with
sufficient security to preserve its integrity.
Article 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 usufructuary for
whatever he may lose by reason thereof.
1. In case the immovable is attached or sold
judicially due to nonpayment of the debt,
the usufructuary has a right o action
against the owner for whatever the former
may lose thereby.
2. The usufructuary may mortgage his right
of usufruct which is a real right.
Article 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 though
they had been caused through his fault.
1. Speaks of any act which may be
prejudicial to the rights of ownership and
not merely of the naked ownership.
2. Where the act affects possession,
although this is in the usufructuary, he
should notify the owner because the latter
has an interest in defending it.
a. The usufruct will ultimately revert
to the owner, and injury to the
usufructuary’s possession will also
result in injury to the right of
ownership.
Article 602. The expenses, costs and
liabilities in suits brought with regard to the
usufruct shall be borne by the usufructuary.