USUFRUCT

Certezas Lecture 9/18/2013

Usufruct General Provisions

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.
(467)
Definition:
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 proper time, either the
same thing or, in special cases, its equivalent. (De
Buen)

Essential Characteristics
It is a real right
A real right is the power belonging to a person
over a specific thing, without a passive subject
individually determined, against whom such right
may be personally exercised
Being a real right, must be registered to bind 3rd
parties

It is of temporary nature or duration

Its purpose is the normal use or exploitation

How Is Usufruct Created

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. (468)
Created by Law usufruct of parents over
property of their unemancipated children (Legal
Usufruct)
Created by Will of the Parties
Inter vivos, examples contracts/ donations
Mortis causa such as testatments

By prescription (Mixed)

Moralidad vs Sps. Pernes G.R. 152809

I, MERCEDES VIA MORALIDAD, of legal age, single, having been born on the 29th day of January, 1923,
now actually residing at 8021 Lindbergh Boulevard, Philadelphia, Pennsylvania, U.S.A., wishes to convey
my honest intention regarding my properties situated at Palm Village Subdivision, Bajada, Davao City,
9501, and hereby declare:
1.

That it is my desire that Mr. and Mrs. Diosdado M. Pernes may build their house therein and stay
as long as they like;

2.

That anybody of my kins who wishes to stay on the aforementioned real property should
maintain an atmosphere of cooperation, live in harmony and must avoid bickering with one
another;

3.

That anyone of my kins may enjoy the privilege to stay therein and may avail the use thereof.
Provided, however, that the same is not inimical to the purpose thereof;

4.

That anyone of my kins who cannot conform with the wishes of the undersigned may exercise
the freedom to look for his own;

5.

That any proceeds or income derived from the aforementioned properties shall be allotted to my
nearest kins who have less in life in greater percentage and lesser percentage to those who are
better of in standing.

Ruling: Is There Usufruct?

It is undisputed that petitioner, in a document dated July 21, 1986,
supra, made known her intention to give respondents and her other
kins the right to use and to enjoy the fruits of her property. There
can also be no quibbling about the respondents being given the
right to build their own house on the property and to stay thereat
as long as they like. Paragraph #5 of the same document
earmarks proceeds or income derived from the aforementioned
properties for the petitioners nearest kins who have less in life in
greater percentage and lesser percentage to those who are better
of (sic) in standing. The established facts undoubtedly gave
respondents not only the right to use the property but also granted
them, among the petitioners other kins, the right to enjoy the
fruits thereof. We have no quarrel, therefore, with
the CAs ruling that usufruct was constituted between petitioner
and respondents.

Ruling: Was there Termination of

Usufruct?

Yes, by the fulfilment of any resolutory condition in the title creating the usufruct
The document executed by the petitioner dated July 21, 1986 constitutes the title
creating, and sets forth the conditions of, the usufruct. Paragraph #3 thereof states
*T+hat anyone of my kins may enjoy the privilege to stay therein and may avail
the use thereof. Provided, however, that the same is not inimical to the purpose
thereof (Emphasis supplied). What may be inimical to the purpose constituting
the usufruct may be gleaned from the preceding paragraph wherein petitioner
made it abundantly clear that anybody of my kins who wishes to stay on the
aforementioned property should maintain an atmosphere of cooperation, live in
harmony and must avoid bickering with one another. That the maintenance of a
peaceful and harmonious relations between and among kin constitutes an
indispensable condition for the continuance of the usufruct is clearly deduced
from the succeeding Paragraph #4 where petitioner stated *T+hat anyone of my
kins who cannot conform with the wishes of the undersigned may exercise the
freedom to look for his own. In fine, the occurrence of any of the following: the
loss of the atmosphere of cooperation, the bickering or the cessation of
harmonious relationship between/among kin constitutes a resolutory condition
which, by express wish of the petitioner, extinguishes the usufruct.

Classification of Usufruct
By number of persons
Simple only one usufructuary
Multiple several usufructuary

As to quality and kind of object

Usufruct over rights-provided not strictly personal
Usufruct over things
Normal form of substance preserved
Abnormal usufruct over consumables

Classification of Usufruct
As to quality
As to fruits total or partial
As to object universal (over the entire
patrimony) of particular (over particular things)

As to term or condition
Pure usufruct no term or condition (lifetime)
With a term or period from a certain day up to a
certain date

Rights of Usufructuary
Entitled to fruits of property held in usufruct
Entitled to enjoy any increase in acquired by
the property
Right to personally enjoy, to lease, or alienate
the property held in usufruct
Right to make useful improvements of
expenses for mere pleasure upon the prop
held in usufruct

Right to Fruits
Natual or industrial fruits growing at the time
the usufruct begins belongs to the
usufructuary (Art. 567)
Natural or industrial fruits growing at the time
the usufruct ends belongs to the owner (Art.
567)

Right to Fruits
Rule regarding expenses (Art. 567)
The usufructuary upon assumption of the usufruct
has no obligation to refund to owner any expenses
incurred regarding growing fruits
The owner, at the end of the usufruct must
reimburse the usufructuary, from the proceeds of
the growing fruits, for the ordinary expenses of
cultivation, seed and similar expenses incurred by
the usufructuary

Right to Fruits
Third parties
Art. 567 does not affect third party rights
If fruits have been planted by a possessor in good
faith, the pending crop expenses and charges are
shared between the possessor and usufructuary

Right to Fruits
Civil fruits (Art. 570)
If usufructuary conveys by way of lease the property
given in usufruct the right over rental payment exist
up to the end of usufruct (Art. 568)
Civil fruits are deemed to accrue daily the right to
civil fruits ends when the usufruct ends
Paras: if usufruct is constituted over a business,
prorate the loss and benefits between owner and
usufructuary if the usufruct is pre-terminated by
death of the usufructuary (page 586 of Paras book)

Use the Things Given in Usufruct

Rules
Deterioration produced by age or time
usufructuary not liable except if damage is caused
by fraud or negligence (Art. 573)
Consumable things the usufructuary must: (a)
pay their appraised value; or (b) if no appraisal,
return the same quantity and quality or pay their
current price at the time the usufruct ends

Right to Introduce Improvements

Usufructuary can introduce improvements on the
property given in usufruct
Types: useful improvements of expenses for mere
pleasure provided the form and substance is NOT
altered
Right to remove: available provided no injury to the
property in usufruct
Available against the owner only NOT to successor of owner

Indemnity: usufructuary has no right to indemnity

Set-off: the usufructuary can set-off the
improvements against any damage caused to property
given in usufruct

Owners Right to Alienate

The owner can sell the property
Provided the form or substance is not altered
Provided nothing is done prejudicial to
usufructuary

Obligations of Usufructuary
Before assuming the usufruct (Art. 538)
Make an inventory
Inventory must include appraisal of movables and
condition of immovables
With notice to owner

Must give security

Binding himself to fulfil the obligations of a
usufructuary

Inventory
Giving of inventory NOT a requisite to the
commencement of the usufruct
Failure to make inventory merely bars entry to the
property given in usufruct

No Inventory and/or Security

Not required when no one will be injured
thereby (Art. 585)
Exceptions to requirements of Inventory and
Security
Where the owner waives the requirements
Where the instruments exempts the usufructuary
from complying with the requirements
Where the usufructuary asks to be relieved of the
requirements and no one will be injured
If owner refuses, the court will resolve

Security
Form: personal bond, a pledge or a mortgage
Exceptions:
When donor reserves the right of usufruct over
the property donated
Parents who are usufructuaries of their childrens
properties

Remedies: Failure to Give Security

Owner may: (Art. 586)
1. Demand that the movables be placed under
administration
2. That the movables be sold
3. Public bonds, instruments of creditors, etc. be
converted into registered securities
4. Owner may retain the property as administrator
but must deliver net proceeds to the
usufructuary

Caucion Juratoria
General Rule usufructuary gives a personal
bond, a pledge or a mortgage as security
Caucion Juratoria petition filed in court
where usufructuary claims under oath the
delivery of furniture necessary for his use and
that he and his family be allowed to live in the
house given as usufruct
The usufructuary under caucion juratoria cannot
alienate his right or lease the property

Giving of Security
Art. 588 After security is given the
usufructuary shall have the right to the
proceeds and the benefits from the day when
the usufruct is to commence
This assumes that without the security, the fruits
are withheld?

Obligations of a Usufructuary
After assuming the Usufruct
Take care of the thing given in usufruct as a good
father of the family (Art. 589)
If he alienates the usufruct, the usufructuary shall
answer for all damages caused by the fault or
negligence of his successor (Art. 590)
Make ordinary repairs required by the property given
in usufruct (Art. 592)
Pay for charges affecting the fruits (Art. 596)
Give notice to owner regarding any acts which may
prejudice the rights of the owner (Art. 601)

Ordinary Repairs
The deterioration is due to the natural use of
the thing
The repairs are necessary for the preservation
of the thing
Note: deterioration caused by age under Art.
573 and the destruction of things by use
under Art. 574 do not fall under concept of
ordinary repairs

Extraordinary Repairs
Those caused by the exceptional
circumstances, whether or not they are
necessary for the preservation of the thing.
Those caused by the natural use of the thing
but are not necessary for its preservation.