DEED OF USUFRUCT

KNOW ALL MEN BY THESE PRESENTS:

This DEED is executed and entered into by and between:

This CITY GOVERNMENT OF BUTUAN, a public

corporation duly organized and existing by virtue of Republic
Act No.523, as amended, with address at City Hall
Compound, Barangay Doongan, Butuan City, 8600, Agusan
del Norte, represented herein by its City Mayor, ENGR.
RONNIE VICENTE C. LAGNADA, per authority granted by the
Sangguniang Panlungsod under SP Resolution No. ____, series
of 2018 and herein referred to as “LANDOWNER”;

-AND-

The NATIONAL HOUSING AUTHORITY, CARAGA-REGION

XIII, duly organized and existing under the laws of the
Republic of the Philippines, with principal office at Elliptical
Road, Diliman, Quezon City, represented herein by the
Officer-in-Charge, Engr. ERASME G. MADLOS, herein referred
to as the “USUFRUCTUARY”;

-WITNESSETH-

WHEREAS, the LANDOWNER is the absolute owner of a parcel of land

covered by Tax Declaration No. 08-09-0001-00031 consisting of FIVE
THOUSAND SQUARE METERS (5,000 sq. m.) and particularly described as
follows:

WHEREAS, the USUFRUCTUARY wrote a letter addressed to the City Mayor

of Butuan on their request that a Contract of Usufruct be entered on the
lot occupied by Bilay National High School as a portion of which would be
utilized for the construction of their Senior High School Building with
General Academic Strand;

WHEREAS, the LANDOWNER, by these presents, offers for use to the

USUFRUCTUARY the above mentioned property;

WHEREAS, the USUFRUCTUARY, accepts the afore-said offer of the

LANDOWNER with gratitude and deep appreciation wherein a portion
thereof will be utilized for the construction of senior high school building;

WHEREAS, the LANDOWNER is willing to enter into a usufruct agreement

with the USUFRUCTUARY subject to the terms and conditions herein;
NOW THEREFORE, for and in consideration of the foregoing premises and
of the mutual covenants hereinafter:

1. TERM. The term of the usufruct shall be for a period of ____ years
from the signing of this DEED unless the LANDOWNER pre-terminate
the same on the ground that the USUFRUCTUARY violates any of the
conditions stated herein.

Provided, further that, any action on the part of the LANDOWNER

for any prolonged period of time cannot be taken to mean as a
renunciation of its right to pre-terminate the DEED under the said
ground.

2. OWNERSHIP. While the usufruct and/or beneficial use of the above-

described real property is transferred to the USUFRUCTUARY, the
naked title of the same remains with and continues to be in the
name of the LANDOWNER. Upon expiration or pre-termination or
non-renewal of the DEED, all permanent improvements existing
therein shall inure to the benefit of the LANDOWNER.

3. RIGHTS AND OBLIGATIONS OF THE USUFRUCTUARY.

a. The USUFRUCTUARY has the right to make such improvements or

expenses on the subject property he may deem proper and to
remove the improvements provided no damage is caused to
the property.

b. The USFRUCTUARY may provide, introduce and/or proper

infrastructures, perimeter fences and other facilities that shall
make the subject real property sustainable and viable for use.

c. The USUFRUCTUARY has the right to enjoy any increase which the
thing in usufruct may acquire through accession.

d. The USUFRUCTUARY shall voluntarily surrender possession and

return or vacate the subject real property to the LANDOWNER
without need of demand upon expiration of the DEED in case
the former does not renew the same.

e. The USUFRUCTUARY shall not sell, dispose, mortgage, encumber,

transfer, assign, tolerate the use by a third party or use as a
collateral the subject real property or any portion thereof during
the lifetime of the DEED.

f. The USUFRCTUARY shall not alienate or transfer its usufructuary

rights or do anything thereon which may be prejudicial to the
LANDOWNER.

g. The USUFRUCTUARY shall maintain the cleanliness and peace

and order in the area of the usufruct.
 h. The cost for installation and monthly billing of electricity,
consumption of water, internet and such other services procured
for and used by the USUFRUCTUARY shall be for its own account.

4. RIGHTS AND OBLIGATIONS OF THE LANDOWNER.

a. To authorize the USUFRUCTUARY to apply, sign, obtain, secure

and submit documents for securing the necessary permits,
including but not limited to building and development permits.

b. Exercise the right of ownership over the property under usufruct.

c. The LANDOWNER or any of its authorized representative, with

prior notice to the USUFRUCTUARY, has the right to inspect the
premises at any reasonable hour of the day, provided that such
inspection is necessary for the purpose of ensuring the faithful
compliance to the conditions and provisions laid down in this
DEED as well as the proper observance of the existing laws, rules
and regulations.

5. SUBLEASE. The USUFRUCTUARY has no authority to sublease the

premises or any part thereof to third person and/or entity.

6. This DEED shall be binding upon the Parties hereto and their
successors-in-interest.

7. EFFECTIVITY. This DEED will take effect upon execution by the Parties.

IN WITNESS WHEREOF, the Parties hereunto affixed their signatures on

this _____ day of ________, 2018 at the City of Butuan, Philippines.

CITY GOVERNMENT MAHAY INTEGRATED

OF BUTUAN SECONDARY SCHOOL

LAND OWNER USUFRUCTUARY

Represented by: Represented by:

ENGR. RONNIE VICENTE C. LAGNADA _______________________

SIGNED IN THE PRESENCE OF:

_________________ __________________
 ACKNOWLEDGEMENT

Republic of the Philippines)

Butuan City ) S.S

BEFORE ME, a notary for and in the City of Butuan, personally appeared
on ____ day of ________ 2018:

Name Govt. ID Number Date/Place

Issued

ENGR. RONNIE VICENTE C. LAGNADA PRC ID No. 0047709 valid until 11/27/19

_______________________________

known to me and to me known to be the same persons who executed the

foregoing Deed of Usufruct consisting of four (4) pages and acknowledged to
me that the same is their free and voluntary act and deed.

WITNESS MY HAND AND SEAL, on the date and place first above written.

Notary Public
Doc. No._____;
Page No. _____;
Book No._____;
Series of 2018.