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Title: the juridical act transferring or conferring ownership; and not a document
Lost: missed or misplaced
Unlawfully Deprived: taken by another thru a crime such as theft, robber, estafa
Summary of Recovery or Non-Recovery Principle
1. owner MAY RECOVER W/O REIMBURSEMENT
a. from possessor in bad faith
b. from possessor in good faith (if owner had LOST the property or been
unlawfully deprived of it) (the acquisition being from a private person)
2. owner MAY REIMBURSE but should REIMBURSE
a. if possessor acquired the object in good faith at a PUBLIC SALE/AUCTION
3. owner CANNOT RECOVER, even if he offers to REIMBURSE (w/n the owner had
lost or been unlawfully deprived)
a. of possessor had acquired it in good faith by purchase from a merchant's
store, or in fairs, or markets
b. ESTOPPEL - if owner is by his conduct precluded from denying the seller's
authority to sell
c. If possessor had obtained the goods because he was an innocent
purchase for value & a holder of a NEGOTIABLE document of title to the
goods
Note: The mere registration of a sale does not make the sale a PUBLIC SALE as
referred to in Art. 549, for a public sale is one where after due notice to the public,
bidders are allowed to bid for the objects they desire to purchase.
Possession of Stolen Property
• It is a disputable presumption that a person found in possession of a thing
taken in doing of a recent wrongful act is the taker & doer of the whole act
• The one who possesses a movable, acquired in good faith, has what is called
an equivalent of title, but this is destroyed when it is proved that said movable
belongs to somebody else who has lost it, or has been unlawfully deprived of
its possession
Purpose of Art. 559
• For the purpose of facilitating transactions on movable property w/c are
usually done w/o special formalities, this article establishes not only a mere
presumption in favour of the possessor of the chattel, but an actual right, valid
against the true owner, except upon proof of loss or illegal deprivation.
How to Contest the Title of a Possessor in Good Faith
• The true owner should present sufficient proof of the identity of the object
AND that he had either lost it or has been illegally deprived of it
• This proof is an indispensable requisite a condition sine qua non in order that
the owner of the chattel may contest the apparent title of its possessor
• W/o adequate proof of such loss or illegal deprivation, the present holder
cannot be put on his defense, even if as possessor he has no actual propriety
title to the movable property in question
Rule When Possessor Has Already Become the Owner
• Art. 559 in fact assumes that the possessor is as yet not the owner, for it is
obvious that where the possessor has come to acquire indefeasible title, no
proof of loss, or illegal deprivation could avail the former owner of the chattel
• He would no longer be entitled to recover it under any condition
Art. 560. Wild animals are possessed only while they are under one's control;
domesticated or tamed animals are considered domestic or tame if they retain the
habit of returning to the premises of the possessor.
Possession of Wild Animals: One's possession of wild animals is lost when they are
under ANOTHER'S control or under NO ONE'S control (as when they have regained
their NATURAL FREEDOM and have become res nullius).
Reason: Possession of them was possible only when power or force could be exercised
over them. Eliminate that control, and you can eliminate possession automatically.
Domesticated or Tamed Animals: Wild animals w/c have become tame & now
generally submit to man's control
Rules
1. the possessor does NOT lose possession of them – AS LONG AS habitually
they return to the possessor's premises
2. possession of them is lost if the aforementioned habit has ceased
Note: But insofar as OWNERSHIP is concerned, Art. 716 applies
Art. 561. One who recovers, according to law, possession unjustly lost, shall be
deemed for all purposes which may redound to his benefit, to have enjoyed it without
interruption.
Note: Recovery according to law does not mean taking the law into one's own hands
BUT thru the proper writs & actions or w/ the aid of competent authorities
Note: Art. 561 applies to both possessors in good & in bad faith, but only if BENEFICIAL
to them
Title VI. - USUFRUCT
CHAPTER 1: USUFRUCT IN GENERAL
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
• the right to enjoy the property of another, w/ the obligation of preserving its
form & substance, unless the title constituting it or the law provides otherwise
• it is a “real right” of a temporary nature, w/c authorizes its holder to enjoy all
the benefits w/c result from the normal enjoyment/exploitation of another's
property, w/ obligation to return, at the designated time, either the same thing,
or in special cases, or its equivalent
 - 45 -
FULL OWNERSHIP = naked ownership + usufruct
NAKED OWNERSHIP = full ownership - usufruct USUFRUCT EASEMENT
USUFRUCT = full ownership – naked ownership Object may be real or personal property Involves only real property
What can be enjoyed are ALL uses & Easement is limited t a particular use
3 Fundamental Rights Appertaining to Ownership fruits of the property (e.g. right of way)
1. Jus dispodendi (right to dispose) jus disponendi Cannot be constituted on an easement; May be constituted in favour, or
2. Jus utendi (right to use) but it may be constituted on the land burdening, a piece of land held in
3. Jus fruendi (right to the fruits) burdened by an easement usufruct
Note: The combination of jus utendi & jus fruendi is called USUFRUCT. The remaining Usually extinguished by death of Not extinguished by the death of the
right (jus dispodendi) is really the essence of NAKED OWNERSHIP. usufructuary owner of the dominant estate

CHARACTERISTICS OR ELEMENTS OF USUFRUCT BASIS USUFRUCT LEASE

ESSENTIAL: A real right (whether registered in the As to EXTENT Covers ALL fruits & uses Generally covers only a particular or
- those w/o w/c it cannot be termed Registry or not) to enjoy another's property specific use
usufruct It is of temporary nature or duration (not As to NATURE Is always a REAL right GR: it is a PERSONAL right
perpetual otherwise it becomes emphyteusis) of the right Exceptions (when it is a real right):
Its purpose is to enjoy the benefits & derive - the lease is registered
all advantages from the object as a - the lease is for more than 1 year
consequence of NORMAL USE or As to the Can be created only by the The lessor may or may not be the
EXPLOITATION. CREATOR of owner, or by a duly owner (as when there is a sublease
NATURAL: The obligation of conserving or preserving the the right authorized agent, acting in or when the lessor is only a
- that w/c ordinarily is present, but a form & substance of the thing behalf of the owner usufructuary)
contrary stipulation can eliminate it [This obligation being merely a natural requisite, the title As to ORIGIN May be created by law, GR: created only by CONTRACT
because it is not essential (abnormal or the law may provide otherwise (Art. 562), giving rise to
what is known as the abnormal or imperfect or irregular contract, last will, or Exception:
or imperfect or irregular usufruct) usufruct such as the usufruct over STERILE animal.] prescription - by law, as in the case of an implied
ACCIDENTAL: Examples: new lease, or when a builder has
- those w/c may be present or - whether it be a pure or conditional usufruct built in good faith on the land of
absent depending upon the - the number of years it will exist another a building, is considerably
stipulation of the parties - whether it is in favor of 1 person or several worth more in value than the
building
Reasons for CONSERVING Form & Substance As to CAUSE The owner is more or less The owner or lessor is more or less
1. to prevent extraordinary exploitation PASSIVE, & he ALLOWS the ACTIVE & he MAKES the lessee enjoy
2. to prevent abuse, w/c is frequent usufructuary to enjoy the – hace gozar
3. to prevent impairment thing given in usufruct –
“deja gozar”
Object of Usufruct As to REPAIRS The usufructuary has the The lessee generally has no duty to
1. may be real or personal property there can be a usufruct over an automobile or over money duty to make the ordinary pay for repairs
2. may be sterile or productive/fruitful things there can be a usufruct over sterile animals repairs
3. may be created over a right, as long as it is not strictly personal or As to TAXES The usufructuary pays for The lessee generally pays no taxes
intransmissible, & as long as it has an independent existence the annual charges & taxes
no usufruct over an easement, for the latter has no independent existence on the fruits
Rights of Action Available to Usufructuary As to other A usufructuary may lease The lessee cannot constitute a
1. action to protect the usufruct itself things the property itself to usufruct on the property leased
2. action to protect the exercise of the usufruct another

Similarities between Usufruct & Servitudes Art. 563. Usufruct is constituted by law, by the will of private persons expressed in acts
1. both are real rights, whether registered or not inter vivos or in a last will and testament, and by prescription.
2. both rights may be registered, provided that the usufruct involves real Art. 564. Usufruct may be constituted on the whole or a part of the fruits of the thing,
property in favor of one more persons, simultaneously or successively, and in every case from or
3. both may ordinarily be alienated or transmitted in accordance w/ the to a certain day, purely or conditionally. It may also be constituted on a right, provided
formalities set by law it is not strictly personal or intransmissible.
 - 46 -
CLASSIFICATION OF USUFRUCT
Art. 566. The usufructuary shall be entitled to all the natural, industrial and civil fruits
As to ORIGIN Legal - created by law of the property in usufruct. With respect to hidden treasure which may be found on the
contract or
Voluntary/ - created by will of the parties inter vivos donation land or tenement, he shall be considered a stranger.
Conventional - created mortis causa: last will & testament mortis causa
Mixed/ - created by law Fruits to which a Usufructuary is Entitled: natural, industrial & civil fruits that will
Prescriptive - created by act of a person accrue during the existence of the usufruct
As to As to fruits - Total: all the fruits are given
QUANTITY - Partial: not all fruits are given Dividend cash or stock
or EXTENT As to object - Universal: if over the entire patrimony • income or civil fruits & should belong to the usufructuary & not to the
- Particular: if only individual things are included remainderman (naked owner)
As to the Simple - if only one usufructuary enjoy • dividends are declared out of the capital & are seriously prohibited by law
NUMBER of • stock dividends may be sold independently of the original shares
PERSONS Multiple - if several usufructuaries enjoy
enjoying ▪ Simultaneous: at the same time Products w/c Diminish Capital: cannot be considered fruits, unless a contrary intent
the right ▪ Successive: one after the other between the parties is clear (like stones from stone quarries)
As to the Usufruct over The right must not be strictly personal or
QUALITY or Rights intransmissible in character. Hence, the right to Share of Usufructuary Re: Hidden Treasure
KIND of receive present or future support cannot be the • the usufructuary, not being the landowner, is not entitled as owner, but is
OBJECTS object of a usufruct. entitled as finder (to ½ of the treasure, as a rule, unless there is a contrary
Involved Usufruct over - Normal/Perfect/Regular: involves non-consumable agreement), if he really is the finder
Things things where the form & substance are preserved • if somebody else is the finder, the usufructuary gets nothing
- Abnormal/Imperfect/Irregular/Quasi Usufruct:
▪ involves consumable property (e.g. vinegar or Art. 567. Natural or industrial fruits growing at the time the usufruct begins, belong to This Article
money) the usufructuary. refers to
Those growing at the time the usufruct terminates, belong to the owner. PENDING
▪ non-consumable things that gradually deteriorate NATURAL
by use (e.g. furniture, automobile, sterile or In the preceding cases, the usufructuary, at the beginning of the usufruct, has no OR
unproductive animals) obligation to refund to the owner any expenses incurred; but the owner shall be obliged INDUSTRIAL
As to Pure usufruct No term or condition to reimburse at the termination of the usufruct, from the proceeds of the growing fruits (there
TERMS or - ex die: from a certain day fruits, the ordinary expenses of cultivation, for seed, and other similar expenses can be no
w/ a term or pending civil
CONDITIONS period - in diem: up to a certain day incurred by the usufructuary.
fruits or rents,
- ex die in diem: fr. a certain day up to a certain day The provisions of this article shall not prejudice the rights of third persons, acquired for they accrue
w/ a condition Conditional either at the beginning or at the termination of the usufruct. daily)
Fruits Pending at the Fruits Pending at the
Art. 565. The rights and obligations of the usufructuary shall be those provided in the BEGINNING of the Usufruct TERMINATION of the Usufruct
title constituting the usufruct; in default of such title, or in case it is deficient, the belong to the usufructuary belong to the owner
provisions contained in the two following Chapters shall be observed. no necessity of refunding owner must reimburse the usufructuary for ordinary
owner for expenses incurred cultivation expenses, from the proceeds of the fruits
Rules Governing a Usufruct rights of innocent 3rd parties should not be prejudiced
1. the agreement of the parties or the title giving the usufruct (Thus, if the fruits had been planted by a possessor in good faith, the pending crop expenses and charges shall be pro-rated
2. in case of deficiency, apply the Civil Code between said possessor and the usufructuary)
Art. 568. If the usufructuary has leased the lands or tenements given in usufruct, & the
Rule in Case of Conflict usufruct should expire before the termination of the lease, he or his heirs & successors
• in case of conflict bet. the rights granted a usufructuary by virtue of a will, & shall receive only the proportionate share of the rent that must be paid by the lessee.
codal provisions, the former, unless repugnant to the mandatory provisions of
Usufructuary
the Civil Code, should prevail.
• allowed to administer & manage the property, to collect rents & make the
Naked Ownership of an Ecclesiastical Body necessary repairs
• the naked ownership to a chaplaincy belongs to the proper ecclesiastical • has the right to select the tenant over the premises
authority w/in whose jurisdiction such properties are found Rule When Usufructuary Leases Property to Another

CHAPTER 2: RIGHTS OF THE USUFRUCTUARY

(for the owner gave the usufruct evidently without any thought of being reimbursed for the pending fruits, or because the value
of said fruits must already have been taken into consideration in fi xing the terms and conditions of the usufruct
 (a) A gave to B in usufruct the profits of a certain factory for 10 years. If the usufruct lasts really for 10 years, all profits during that time must
go to B. (b) Suppose, however, B died at the end of 5 years, and the following were the profits of the factory: 2nd year — P30 million 3rd year
In 2002, A gave his land in usufruct to B for 4 years. B leased the land in favor — P50 million 8th year — P10 million 10th year — P20 million [NOTE: A business enterprise may sometimes have a profit; at times, may
incur a loss; and in the case of profits — these may be irregular.]. How should the profits be divided? ANS.: It is UNFAIR to give the heir of
of C for 8 years. Ordinarily, the lease should end in 2006, because at that time, the the usufructuary P80 million (2nd and 3rd year’s profits) and only P30 million (8th and 10th year’s profits) to the naked owner. If this were so,
usufruct ends. BUT if the naked owner so desires, he may allow the lease to we would be applying the rule for industrial or natural fruits, not civil fruits. It is indeed unfair because a business is expected to have its ups
continue for 4 more years. The rent of the first four years belongs to the and downs. Therefore, considering that the usufruct was supposed to last for 10 years (though it actually lasted for only 5 years), it is fairer to
usufructuary; that for the remaining four belongs to the naked owner. give half of the total profits to the heirs of the usufructuary, and half to the naked owner
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GR: the lease executed by the usufructuary should terminate at the end of the usufruct RIGHTS W/ REFERENCE TO THE THING RIGHTS W/ REFERENCE TO THE
or earlier ITSELF IN ADDITION TO THE USUFRUCT USUFRUCTUARY RIGHT ITSELF
Exception: in the case of leases of rural lands, if the usufruct ends earlier than the 1. may personally enjoy the thing 1. may alienate (sell, donate,
lease, the lease continues for the remainder of the agricultural year - entitled to possession & fruits bequeath or devise) the
Ownership - the enjoyment may also be thru another usufructuary right
and Accrual of Art. 569. Civil fruits are deemed to accrue daily, and belong to the usufructuary in unless the contrary has been provided or - except a legal usufruct: the or a usufruct
Civil Fruits - acquired thru a
proportion to the time the usufruct may last. stipulated usufruct w/c parents have over caucion juratoria,
Because of the Art. 570. Whenever a usufruct is constituted on the right to receive a rent or periodical 2. may lease the thing to another the properties of their for here, the need
daily accrual, of the usufructuary
Art. 567 pension, whether in money or in fruits, or in the interest on bonds or securities payable - may be done even w/o owner's consent unemancipated children, because himself is the
cannot apply. to bearer, each payment due shall be considered as the proceeds or fruits of such right. - the least must not extend to a period said usufruct is to be used for reason for the
Whenever it consists in the enjoyment of benefits accruing from a participation in any longer than that of the usufruct, unless the certain obligations towards enjoyment.
Rule as to industrial or commercial enterprise, the date of the distribution of which is not fixed, owner consents children
Certain such benefits shall have the same character. - the lease ends at the time the usufruct 2. may pledge or mortgage the because he OWNS
Rights (Rent, In either case they shall be distributed as civil fruits, and shall be applied in the manner ends, except in the case of rural leases usufructuary right said right
Pension, prescribed in the preceding article. - if the lessee should damage the property, - BUT he cannot pledge or
Benefits, Etc.) because he does
the usufructuary shall answer to the owner mortgage the thing itself not own the thing.
The things
referred to in Rule When Date of Distribution of Benefits Fixed - the relation bet. the owner & usufructuary - He cannot sell or alienate the
Art. 570 are • Art. 570 applies whether or not the date of distribution is fixed does not end just because a lease has thing itself, or future crops, for
considered • The law doesn't mention anymore the case when the date is fixed because this been made crops pending at the termination
civil fruits and is the usual state of things, & rule under Art. 570 clearly applies - the usufructuary can demand of the usufruct belong to the
shall be reimbursement from the lessee, cause of
deemed to naked owner
accrue Note: Stock dividends & cash dividends are civil fruits. Hence, the same rule should the latter's breach of the contract of lease - Parental usufruct cannot be
proportionately apply to profits of a partnership. - if the usufructuary cannot pay the damage alienated or pledged or
to the naked to the naked owner, his bond shall be mortgaged
owner and Art. 571. The usufructuary shall have the right to enjoy any increase which the thing in liable.
usufructuary,
for the time the usufruct may acquire through accession, the servitudes established in its favor, and, in
general, all the benefits inherent therein. Art. 573. Whenever the usufruct includes things which, without being consumed,
usufruct lasts.
gradually deteriorate through wear and tear, the usufructuary shall have the right to
EX: make use thereof in accordance with the purpose for which they are intended, and shall
If A gives B Increases in the Thing Held in Usufruct Aside from the right to the fruits (already discussed), the
the usufruct of 1. accessions (artificial or natural) usufructuary has the right to the enjoyment (use, not not be obliged to return them at the termination of the usufruct except in their
A’s land, and 2. servitudes & easements ownership) condition at that time; but he shall be obliged to indemnify the owner for any
A’s land is 3. all benefits inherent in the property deterioration they may have suffered by reason of his fraud or negligence.
being rented by (like the right to hunt and fish therein, the right to construct rain water receptacles, etc.).
C, each
payment of Reason: The Usufructuary is Entitled to: Abnormal/Imperfect Usufruct on Things that Deteriorate: It is true that ALL
rent shall go to 1. ENTIRE jus fruendi (including fruits of accessions) things deteriorate, but there are some things that deteriorate much faster than others.
B for the 2. ENTIRE jus utendi (so he can make use for example of an easement) Effect of the Deterioration on the Usufructuary’s Liability
duration of the CAUSE EFFECT
usufruct, each If these fast deteriorating - the usufructuary is NOT responsible
payment being Art. 572. The usufructuary may personally enjoy the thing in usufruct, lease it to
considered as another, or alienate his right of usufruct, even by a gratuitous title; but all the things deteriorate because - hence he can return them in the condition they might
part of the contracts he may enter into as such usufructuary shall terminate upon the expiration of of NORMAL USE… be in at the termination of the usufruct
proceeds of the the usufruct, saving leases of rural lands, which shall be considered as subsisting - there is no necessity for him to make any repairs to
property. restore them to their former condition for they can be
during the agricultural year.
preserved w/o the necessity of repairs
Note: The usufructuary is entitled not only to collect the rent or income, but also to - failure to return the thing will result in indemnification
lease the property in favour of another. This right also carries w/ it the right to select for the value the object may have at the end of the
and oust tenants for contractual violations. usufruct
If these fast deteriorating - even though there were no fault or negligence or fraud
things deteriorate because on the part of the usufructuary, he is still required to
of an EVENT or ACT that make necessary ordinary repairs
ENDANGERS THEIR - mere deterioration thru normal use does not require
PRESERVATION… ordinary repairs
(as when by fortuitous event, lightning
splits a table into three pieces)
 - 48 -
If these fast deteriorating - the usufructuary is responsible A: If it is impossible or too burdensome to replace them, the usufructuary has the
things deteriorate because - but such liability may be set off against improvements option to either:
of FRAUD (fraud a. use the trunks but should replace them
amounting to an evasion b. leave the dead, fallen or uprooted trunks at the owner's disposal & demand
of the obligation to that the latter remove them & clear the land
preserve) or
NEGLIGENCE If it is slightly burdensome to replace them, the usufructuary:
This is another c. must replace them (w/n he uses the dead trunks)
instance of Art. 574. Whenever the usufruct includes things which cannot be used without being d. cannot demand clearance of the land by the owner
abnormal
usufruct, and is consumed, the usufructuary shall have the right to make use of them under the
sometimes obligation of paying their appraised value at the termination of the usufruct, if they Art. 577. The usufructuary of woodland may enjoy all the benefits which it may
referred to as a were appraised when delivered. In case they were not appraised, he shall have the produce according to its nature.
quasi-usufruct If the woodland is a copse or consists of timber for building, the usufructuary may do
because the form right to return at the same quantity and quality, or pay their current price at the time
and substance is the usufruct ceases. such ordinary cutting or felling as the owner was in the habit of doing, and in default of
not really this, he may do so in accordance with the custom of the place, as to the manner,
preserved. amount and season.
Rules for this Quasi-Usufruct
1. the usufructuary (debtor-borrower) can use them (as if he is the owner, w/ In any case the felling or cutting of trees shall be made in such manner as not to
this is really a
SIMPLE loan. in complete right of pledge or alienation) prejudice the preservation of the land.
what are called 2. BUT at the end of the usufruct, he must: In nurseries, the usufructuary may make the necessary thinnings in order that the
UNIVERSAL a. Pay the appraised value, if appraised when 1st delivered remaining trees may properly grow.
USUFRUCTS,
both non- b. If there was no appraisal, return same kind, quality, & quantity OR With the exception of the provisions of the preceding paragraphs, the usufructuary
consumable and pay the price current at the termination of the usufruct cannot cut down trees unless it be to restore or improve some of the things in usufruct,
consumable not at the original price or value and in such case shall first inform the owner of the necessity for the work.
properties are
included. Thus Art. 575. The usufructuary of fruit-bearing trees and shrubs may make use of the dead
money can be trunks, and even of those cut off or uprooted by accident, under the obligation to A Special Usufruct over Woodland is not a Common/Frequent Usufruct
the object of a Because:
usufruct. replace them with new plants.
1. natural resources belong to the State regalian doctrine
Usufruct on Fruit-Bearing Trees and Shrubs This is a SPECIAL 2. a license is generally essential if one desires to gather forest products
The Usufructuary can use the following: usufruct.
1. dead trunks
2. those cut off or uprooted by accident Obligations of the Usufructuary
Note: but he must replace them w/ new plants 1. he must bear in mind that he is not the owner, & therefore, in the exercise of
the diligence in caring for the property, he must see to it that the woodland is
Special Usufructs preserved, either by development or by replanting, thus he cannot consume
1. usufruct on fruit-bearing trees & shrubs all, otherwise nothing would be left for the owner
2. of periodical pension, income, dividends 2. in the cutting or felling of trees, he must:
3. of woodland a. follow the owner's habit or practices
4. of right of action to recover real property, real right or movable property b. in default thereof, follow the customs of the place (as to the manner,
5. of part of property owned in common amount, and season) – all w/o prejudice to the owner, for while he
6. of the entire patrimony of a person can use, he cannot abuse
7. on a mortgaged immovable i. this rule is applicable if the woodland:
8. on a flock or herd of livestock - is a copse (thicket of small trees)
- or consists of timber for building
c. if there can be no customs, the only time the usufructuary can CUT
Art. 576. If in consequence of a calamity or extraordinary event, the trees or shrubs
DOWN trees will be for repair or improvements, but here the owner
shall have disappeared in such considerable number that it would not be possible or it
must 1st be informed the owner, thus, does not need to consent
would be too burdensome to replace them, the usufructuary may leave the dead, fallen
3. cannot alienate the trees unless:
or uprooted trunks at the disposal of the owner, and demand that the latter remove
a. he is permitted, expressly or impliedly by the owner (as when the
them and clear the land.
purpose of the usufruct was really to sell the timber) or
b. he needs the money to do some repairs (but the owner must be
Q: A is a usufructuary of trees & shrubs belonging to B. As a result of an earthquake,
informed)
many of the trees & shrubs disappeared or were destroyed. What are A's rights and
obligations?
A is the usufructuary of a parcel of land belonging to B. He (A) transferred his usufructuary right to C who took possession of the
land. While possessing it, C, without the knowledge of A, cut 100 coconut trees on the land. Is A liable to B, for the damages
caused by C, on the land under usufruct? Give your reasons. ANS.: Yes, A is liable to B, for a usufructuary (A) who alienates his
usufructuary right, is liable for the negligence of his substitute (C). (Art. 590). It is clear that C had no right to cut down the trees,
for the article on woodland (Art. 577) cannot apply. There is a vast difference between a woodland and coconut land. In the
former, the usufructuary can in certain cases cut down the trees precisely because the way to enjoy the usufruct would be to
convert the timber into lumber; in the case of coconut land, the usufruct extends merely to the fruits produced. At any rate, it
would have been different had the naked owner’s approval been obtained. - 49 -
WOODLAND COCONUT LAND a. remove the improvements if no substantial damage to the property in
The usufructuary can in certain cases cut down The usufruct extends merely to usufruct is caused OR
the trees because the way to enjoy the usufruct the fruits produced. b. set off (compensate) the improvements against damages for w/c he may
would be to convert the timber into lumber. be liable

Art. 578. The usufructuary of an action to recover real property or a real right, or any Registration of Improvements
movable property, has the right to bring the action and to oblige the owner thereof to • improvements made by a usufructuary belong to him, & may be registered,
give him the authority for this purpose and to furnish him whatever proof he may have. not independently, but in the registration proceedings of the land held in
If in consequence of the enforcement of the action he acquires the thing claimed, the usufruct
usufruct shall be limited to the fruits, the dominion remaining with the owner.
Purpose of Registration
This SPECIAL usufruct deals with the right to recover by COURT ACTION
Usufruct of an Action to Recover Through the Courts • to protect him against 3rd persons, for while he cannot obtain a refund
1. real property therefore he still may remove them or set them off against damages
2. personal property chargeable to him
3. real right over real or personal property • if the property is sold to an innocent purchaser for value, the right to remove
If the
Note: in a sense, this is a usufruct over an expectancy or a hope. the useful improvement since not registered cannot be enforced against said improvement
3rd person cannot be
What the Usufructuary can Demand from the Owner: removed
1. authority to bring the action (usually an SPA) Note: while a possessor in good faith is entitled to a refund for said useful without
improvements, a usufructuary is not substantial
2. proofs needed for a recovery injury, is the
usufructuary
How 3rd Parties Can be Prejudiced: the usufruct must either be registered or known Q: A usufructuary introduced useful improvements w/c he can remove w/o damage, entitled to a
to them but he does not want to remove them. Can he be compelled by the naked owner to refund? ANS.:
make the removal? No. (See Art.
Institution of the Action: the action may be instituted in the usufructuary's name, A: NO, for the law says “may” & therefore he may or may not remove, the right being 579). But he
may still avail
for being the owner of the usufruct, he is property deemed a real party in interest potestative – dependent on his will. himself of the
1. if the purpose is the recovery of the property or right, he is still required under set-off. (Art.
Art. 578 to obtain the naked owner's authority Q: A usufructuary introduced useful improvements w/c he can remove w/o damage. Eh 580).
2. if the purpose is to object or to prevent disturbance over the property, no wants to remove them, but the owner wants to retain them, & offers to reimburse him.
special authority from the naked owner is needed Who should prevail?
A: The usufructuary prevails for the right of removal granted him by the law. The rule
Effect of Judgment: when judgment is awarded him & he gets the property: here is different from that in Arts. 546 and 548, where the right to remove may be
1. its naked ownership belongs to the owner defeated by the right of the owner to retain, upon proper indemnification.
2. its usufruct belongs to the him, the usufructuary
Note: this usufruct usually occurs when a universal usufruct has been given Art. 580. The usufructuary may set off the improvements he may have made on the
property against any damage to the same.
Note: after successful suit, the usufruct is now over the thing acquired
Rules re: Set Off of Improvements
Art. 579. The usufructuary may make on the property held in usufruct such useful 1. Ifdamage > value
damage exceeds theof theofimprovements
value the improvements
improvements or expenses for mere pleasure as he may deem proper, provided he a. usufructuary is still liable for the difference
does not alter its form or substance; but he shall have no right to be indemnified 2. Ifvalue of improvements
the value of the improvements> exceeds
damage the damage,
therefor. He may, however, remove such improvements, should it be possible to do so a. the difference does not go to the usufructuary, but accrues instead in
without damage to the property. the absence of a contrary stipulation in favour of the naked owner,
otherwise, it is as if the usufructuary would be entitled to a partial
Rights of the Usufructuary refund in cash
1. to make useful improvements
2. to make luxurious improvements (for mere pleasure) Requisites Before Set Off Can be Made
1. the damage must have been caused by the usufructuary
Limitations on the Rights 2. the improvements must have augmented the value of the property
1. he must not alter the form or substance of the property held in usufruct
2. he is not entitled to a refund, but he may either:

(he cannot build a house if to do so would

destroy an orchard, if the usufruct is on an
orchard, unless the owner consents)

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.
Since the jus disponendi and the title (dominium directum) reside with the naked owner
Rights of the Naked Owner
1. to alienate the property, but he cannot:
a. alter its form or substance
b. do anything prejudicial to the usufructuary (as when he should
illegally lease the property to another, since this right ordinarily
pertains to the usufructuary
other rights 2. construct any works
of the naked 3. make any improvements
owner 4. make new plantings thereon if it be rural, but such acts must not cause:
a. a decrease in the value of the usufruct
b. prejudice the right of the usufructuary
When Buyer Must be Respect the Usufruct
• a purchaser of the property must respect the usufruct in case it is registered
or known to him, otherwise he can oust the usufructuary, who then can look
to the naked owner for damages
Rule in Case of Succession
• if the naked owner bequeathes (if personal property) or devises (if real
property) to another thru a will, the legatee or devisee should respect the
usufruct
Double Sale by Naked Owner
• GR: the naked owner is not allowed to sell the usufruct to anther after having
sold it 1st to the usufructuary, but if he does so, the rule on double sale applies
• If the 2nd buyer in GF registers the usufruct, he can oust the 1st buyer who did
not register, even though the latter be in possession
• The right of the 1st usufructuary is to proceed against the naked owner for
breach of the warranty against eviction
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 co-ownership 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.
Usufructuary of a Part of Common Property
• a co-owner may give the usufruct of his share to another, even w/o the
consent of the others, unless personal considerations are present
• the usufructuary in such a case takes the owner's place as to:
o administration/management (BUT not as to alienation, disposition, or
o collection of fruits or interests creation of any real right over the property,
since these are strict acts of ownership, unless
Effect of Partition of course he is authorized by the naked owner)
1. the usufructuary continues to have the usufruct of the part allotted to the co-
owner concerned
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2. if the co-owners make the partition w/o the intervention of the usufructuary,
this is all right, & the partition binds said usufructuary
CHAPTER 3: OBLIGATIONS OF THE USUFRUCTUARY
The Usufructuary has Obligations:
1. before the usufruct (e.g. the making of inventory)
2. during the usufruct (e.g. taking due care of property)
3. after the usufruct (e.g. duty to return & indemnify in the proper cases)
Art. 583. The usufructuary, before 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 fulfil the obligations imposed upon him in
accordance with this Chapter.
Obligation Re: the Inventory & the Security
• they are not necessary before the right to the usufruct begins
• the are merely necessary before physical possession & enjoyment of the
property can be had
Effect of Failure to Make Inventory or Give Security
• the usufruct still begins, but he naked owner will have the rights granted him
under Art. 586
Requirements for the Making of the Inventory
1. the owner must be previously notified
a. purpose of notice: to enable him to correct errors in the inventory, if
he desires
2. the condition of the immovables must be described
3. the movables must be appraised, in view of easy deterioration or loss
4. no form is required except when there are real properties, Art. 1358 demands
a public instrument to affect 3rd parties
5. expenses are to be borne by the usufructuary, since the duty is his
When Inventory NOT Required
1. when no one will be injured thereby (e.g. usufruct over a periodical pension or
incorporeal right) provided the naked owner consents, for the law says “may”
2. in case of waiver by the naked owner or the law
3. when there is a stipulation in a will or contract
Purpose of Giving Security: to insure faithful compliance of the duties of the
usufructuary (whether required during or at end of the usufruct – e.g. the duty to
return)
Form of Security: any kind of sufficient security should be allowed, such as:
1. cash
2. personal bond
3. mortgage

When Security NOT Required
1. when no one will be injured thereby (no prejudice)
2. when there is a waiver by the naked owner
3. when there is a stipulation either in a will or contract
4. when the usufructuary is the donor the property (who has reserved the
usufruct)
5. when there is a parental usufruct – in case of parents who are usufructuaries
of their children's property, except when the parts contract a 2nd or
subsequent marriage, provided' that each child's property does not exceed
P50K in w/c case the parents have to file a bond not as usufructuary, but as
guardian or administrator
6. when there is caucion juratoria - w/c takes place of a bond, & is made by
taking an oath to fulfill properly the duties of a usufructuary (this is available
only under the conditions prescribed under Art. 587)
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 children's property, except when the parents contract a second
marriage.
(2) To give security,
Usufruct of Donor or of Parents
• the law says donor, not seller, for sale is an onerous contract
• while the law says “donor”, the word “remitter” can also be used, for
remission is gratuitous
• the formalities of donation or remission must be complied w/
• “2nd marriage” may be 3rd, 4th, etc, or any subsequent marriage
• In case of “remuneratory” (w/ future burden) donation, the parties may
stipulate on the necessity of the security
Art. 585. The usufructuary, whatever may be the title of the usufruct, may be excused
from the obligation of making an inventory or of giving security, when no one will be
injured thereby.
Effect if No One Will be Injured "may"
• The usufructuary is not always excused, the exemption being dependent on
the naked owner.
• In case the naked owner refuses to make the exemption, appeal can be had
before the courts, and the judge should consider all the circumstances in
deciding w/n to give the grant.
• While ordinarily, it is the naked owner who grants the exemption, the grant
may be made by somebody else authorized by said naked owner.
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 movables 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
securities and bonds, and the proceeds of the property placed under administration,
shall belong to the usufructuary.
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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.
EFFECTS OF FAILURE TO GIVE SECURITY (UNLESS EXEMPTED)
ON THE RIGHTS OF THE ON THE RIGHTS OF THE
NAKED OWNER USUFRUCTUARY
1. he may deliver the property to the 1. the usufructuary cannot possess the
usufructuary property till he gives the security
2. OR the naked owner may choose 2. the usufructuary cannot administer the
retention of the property as property, hence he cannot execute a lease
administrator thereon
3. OR the naked owner may demand 3. the usufructuary cannot collect credits that
receivership or administration by have matured, nor invest them unless the
another of the real property, sale of Court or the naked owner consents
movable, conversion or deposit of 4. but the usufructuary can alienate his right
credit instruments, or investment of to the usufruct; the grantee may of course
cash or profits possess the moment he gives security
Note: the receiver/ administrator s entitled to administration expenses
Retention of Property by Naked Owner
• although the owner may demand the sale of movables, still he may want to
retain some of them for their artistic worth or sentimental value, in w/c case
he may demand their delivery to him provided he gives security for the
payment of legal interest on their appraised value
Interest on Cash Proceeds of Sale
• if the movable be sold, the cash belongs to the naked owner, but the interest
thereon belongs to the usufructuary
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 a 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
• the promise under oath
• a sworn duty to take good care of the property & return same at the end of
the usufruct
• it takes the place of the bond or security and is based on necessity &
humanity
 remains of the dead animals belong to the usufructuary.

Hence, if 15 cattles died, but only 3 were produced, only 3 must be

replaced; hence also, if 15 died, but 20 were produced, the excess
of 5 belong to the usufructuary since they are FRUITS.

Usufruct on Livestock - 52 -
Requisites Before the Caucion Juratoria is Allowed Art. 591. If the usufruct be constituted on a flock or herd of livestock, the usufructuary
1. proper court petition shall be obliged to replace with the young thereof the animals that die each year from
2. necessity for delivery of furniture, implements or house included in the natural causes, or are lost due to the rapacity of beasts of prey.
usufruct If the animals on which the usufruct is constituted should all perish, without
3. approval of the court the fault of the usufructuary, on account of some contagious disease or any other
4. sworn promise uncommon event, the usufructuary shall fulfil his obligation by delivering to the owner
the remains which may have been saved from the misfortune.
Restriction on Usufructuary Should the herd or flock perish in part, also by accident and without the fault
• he cannot alienate or lease the property for this means he does not need them of the usufructuary, the usufruct shall continue on the part saved.
Should the usufruct be on sterile animals, it shall be considered, with respect
Rule in Case Usufructuary is Exempted from the Duty to Give Security to its effects, as though constituted on fungible things.
• Art. 487 does NOT apply when the usufructuary is exempted from giving
security. It applies only if he is required but cannot afford to give security. Note: this article applies only when the usufruct is on a FLOCK and HERD of livestock
Hence, if the (not 2 or 3 animals merely)
usufruct Art. 588. After the security has been given by the usufructuary, he shall have a right to
commences all the proceeds and benefits from the day on which, in accordance with the title RULES IN CASE OF FRUITFUL OR PRODUCTIVE LIVESTOCK
Jan. 3, 2003
but security is constituting the usufruct, he should have commenced to receive them. WHEN THERE IS WHEN THERE IS
given Mar. 3, Retroactive Effect of the Security Given OBLIGATION TO REPLACE NO OBLIGATION TO REPLACE
2003, the Note: Notice that once the bond is given, there is retroactivity. 1. if some animals die from natural 1. if there is a total loss of animals because some
usufructuary is causes unexpected or unnatural loss (e.g. some
entitled to all
the proceeds Art. 589. The usufructuary shall take care of the things given in usufruct as a good 2. if some animals are lost due to contagious disease or any other uncommon
and benefits of father of a family. rapacity of beasts of prey event, provided the usufructuary has no fault) If the partial loss
the usufruct 2. if there is a partial loss under the same be because of the
from Jan. 3, Duty of Usufructuary to Take Care of Property Notes: conditions usufructuary’s
2003 - even though the cause be FAULT, does the
• Although care of a pater familias is required, still a usufruct is not extinguished usufruct continue
by bad use fortuitous, there is the duty to Notes: on the remainder?
• Bad use, if owner suffers considerable injury, entitles him to demand its replace because such loss is - since there is no obligation to replace, it ANS.: Manresa
more or less expected & is follows that even if all should perish, the says “yes”
administration w/o prejudice to the usufruct because bad use
• In the exercise of prudent care, the usufructuary is required to: natural remains (bones, carcass) must be delivered or abuse does not
1. make ordinary repairs - replacement should be made - the remains, not the remainder, must be extinguish the
[The usufruct, without
usufructuary is 2. to notify the naked owner of urgency of extraordinary repairs & of any from the young produced given to the naked owner prejudice however
not entitled to acts w/c may prove detrimental to ownership - although the law says “each - in case of partial loss, the usufruct continues to the right of the
reimbursement year”, this doesn't necessarily on the remainder, provided that the loss be naked owner to
for ordinary 3. answer for damages caused by the fault or negligence of his alienee, demand
grantee, agent, or lessee mean that the computation will by accident & w/o the fault of the administration by
repairs (Art. 592) have to be done yearly usufructuary
but may retain him.
It is sufficient to sum up the losses and produce for all
the property till Rule When Property has been Damaged the time the usufruct may last.
he is reimbursed • damage to property caused by the fault or negligence of the usufructuary is Note: in case of sterile animals where there are no youngs, the rule of usufruct over
of extraordinary fungibles applies
expenses, which demandable right away
he may have • the naked owner need not wait for the end of the usufruct before binging the
been compelled proper action for indemnity Art. 592. The usufructuary is obliged to make the ordinary repairs needed by the thing
to do. given in usufruct.
Art. 590. A usufructuary who alienates or leases his right of usufruct shall answer for By ordinary repairs are understood such as are required by the wear and tear
any damage which the things in usufruct may suffer through the fault or negligence of due to the natural use of the thing and are indispensable for its preservation. Should
the person who substitutes him. the usufructuary fail to make them after demand by the owner, the latter may make
them at the expense of the usufructuary.
Liability of Usufructuary for Acts of the Substitute (fault, negligence, or Duty to Make Ordinary Repairs
• the usufructuary is made liable for the acts of the substitute even willful deceit) Requisites for Usufructuary to be Responsible for Ordinary Repairs
• while the substitute answer to the usufructuary, the usufructuary answers to 1. they are required by normal or natural use
the naked owner 2. they are needed for preservation
because those occurring before and after the end of the usufruct
• even when there is a sub-usufructuary, it is still the usufructuary who answers 3. they must have occurred during the usufruct should be borne by the naked owner
to the naked owner for ordinary repairs, taxes on the fruits, etc. 4. they must have happened w/ or w/o the fault of the usufructuary
If he was at FAULT, the usufructuary must pay indemnity for damages.
 - 53 -
Q: Can the usufructuary exempt himself from the duty to make or pay for the Requisites Before Usufructuary is Allowed to Make Extraordinary Repairs
necessary repairs by renouncing the usufruct? 1. due notification to naked owner of urgency
A: If he had NO fault – yes, but he must surrender the fruits received. 2. the naked owner failed to make them
If he was at FAULT – no. he would still be liable for damages 3. the repair is needed for preservation

Remedy if Usufructuary does not make the Necessary Repairs
• the owner may make them, personally or thru another, at the expense of the
usufructuary
“Ordinary Repairs” – those required by the wear and tear due to the natural use of
the thing & are indispensable for its preservation
Right of Usufructuary who has made Extraordinary Repairs
1. get increase in value (plus value) OR get reimbursement for expenses (to
compute increase in value, get the difference bet. the value before and the
value after the repairs)
2. right of retention till paid (reimbursement is to be made only at the end of the
usufruct)

Art. 593. Extraordinary repairs shall be at the expense of the owner. The usufructuary Art. 595. The owner may construct any works and make any improvements of which
is obliged to notify the owner when the need for such repairs is urgent. the immovable in usufruct is susceptible, or make new plantings thereon if it be rural,
Art. 594. If the owner should make the extraordinary repairs, he shall have a right to provided that such acts do not cause a diminution in the value of the usufruct or
demand of the usufructuary the legal interest on the amount expended for the time prejudice the right of the usufructuary.
that the usufruct lasts. Constructions, Improvements, and Plantings by the Naked Owner
Should he not make them when they are indispensable for the preservation of Although the Property is in the Possession of the Usufructuary, the Naked
the thing, the usufructuary may make them; but he shall have a right to demand of the Owner May Still:
owner, at the termination of the usufruct, the increase in value which the immovable 1. construct works
may have acquired by reason of the repairs. 2. make improvements
3. make new plantings, if rural
KINDS OF EXTRAORDINARY WHO SHOULD PAY?
REPAIRS Conditions
1. those caused by natural use, but The naked owner, w/n he is notified by the 1. the value of the usufruct is not diminished
not needed for preservation usufructuary 2. the right of the usufructuary is not prejudiced
- the law does not require the naked owner to If because of said constructions or plantings, the value of the
If he does not want to, it is also all right. What
is important is that if made, the expenses must make them, nor can he be compelled by the Effect of Increase in the Value of the Usufruct usufruct increases
be borne by the naked owner.] usufructuary to make them 1. the usufructuary profits by said increase, for he will still be entitled to the use
2. those caused by abnormal or The naked owner, w/n he is notified & fruits thereof
exceptional circumstances & - he cannot again be compelled by the 2. the usufructuary does not have to pay legal interest on the improvement
needed for preservation usufructuary to make them because this was a voluntary act of the naked owner
(as when an earthquake renders the stairs of - but here, the usufructuary is allowed to make
a house unsafe, or when lightning splits a them, w/ the right t get the increase in value Art. 596. The payment of annual charges and taxes and of those considered as a lien
table into two) & the right of retention till paid at the on the fruits, shall be at the expense of the usufructuary for all the time that the
termination of the usufruct, provided that usufruct lasts.
there was no notification by the usufrucutary,
& failure to repair by the naked owner The Usufructuary Should Pay For
3. those caused by abnormal or The naked owner, w/n he is notified 1. the annual charges on the fruits
exceptional circumstance but - the usufructuary cannot compel the naked 2. the annual taxes on the fruits
are NOT needed for preservation owner to make them, nor is the usufructuary 3. the annual taxes on the land, including the real estate taxes “taxes” in Art. 596 includes LAND
TAXES, considering the fact that in the
allowed to make them, even if the naked other 4. ordinary repairs Philippines, land taxes are based on the
owner has failed to make them charges 5. necessary cultivation expenses value of the land as affected by the
- reason: there is no necessity for preservation FRUITS that are produced
here Effect of Payment of the Annual Real Property Tax
• Just because the usufructuary pays for the annual land taxes, it doesn't
Note: if the naked owner makes the extraordinary repairs, he can demand from the necessarily follow that he has adverse possession over the land, for after all, it
usufructuary the legal interest on the amount for the duration of the usufruct is he who must pay for said taxes
Reason: the usufructuary has really benefited, otherwise the thing may not be properly
used Note: a real property tax, being a burden upon the capital, should be paid by the owner
of the land, & not by the usufructuary

Art. 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.
Note: the naked owner pays for taxes imposed directly the capital, provided they are
not annual
Rules:
1. if paid by naked owner, he can demand legal interest on the sum paid because
the usufructuary is enjoying the property
2. if advanced in the meantime by the usufructuary
a. he should be reimbursed the amount paid w/o legal interest
b. he is entitled to retention until paid
Note: reimbursement should be made, not immediately after advancing, but only the
TERMINATION of the usufruct, provided advance had been made voluntarily. If the
usufructuary had been forced to pay, reimbursement, w/ damages, should be made
immediately thereafter.
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 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.
When Usufructuary has to Pay for the Debts of the Naked Owner
1. when there is no stipulation regarding the payment for debts – the donee shall
be responsible therefore only when the donation has been made in fraud of
creditors
a. 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
2. when the donation imposes upon the donee the obligations to pay the debts of
the donor – if the clause does not contain any declaration to the contrary, the
donee is understood to be liable to pay only the debts w/c appear to have
been previously contracted
a. in no case shall the donee be responsible for debts exceeding the
value of the property donated, unless a contrary intention clearly
appears
Applicability of Article Art. 598 applies:
1. if the usufruct is a universal one (constituted on the whole of a patrimony)
2. and the naked owner
a. has debts
b. or is obliged to make periodical payments, whether or not there be
known capital
- 54 -
Note: Art. 598 particularly applies if a person donates everything but reserves to him
the usufruct thereof.
Art. 599. The usufructuary may claim any matured credits which form a part of the
usufruct if he has given or gives the proper security. If he 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 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.
Rules on Usufruct of a Matured Credit
1. if usufructuary has GIVEN SECURITY – collection & investment can be done
w/o the approval of the court or of the naked owner
2. if usufructuary has NOT given security, or when he is EXEMPTED, or when
there is only a CAUCION JURATORIA – collection & investment can be done
only w/ the approval of the court or of the naked owner
Ownership of the Credit Collected
Note: if the credit is collected, same belongs to the naked owner, but the usufructuary
gets its usufruct
Note: the usufructuary shall be liable if the credit has matured is not collected because
of his fault or negligence
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 usufructuary for whatever the latter may lose by reason
thereof.
Usufruct of Mortgaged Immovable (PARTICULAR Usufruct) A mortgaged his land to B and gave its
How Liability of the Naked Owner may be Extinguished usufruct to C. Since A did not pay his debt,
B foreclosed the mortgage, and at the
1. by constituting a usufruct over an equivalent estate foreclosure sale, D bought the property.
2. by payment of a periodical pension equivalent to the loss Can C demand anything from A?
3. in any other similar way ANS.: Yes, because A is held by law liable for
the loss.
Note: if no stipulation for payment by the usufructuary is made, & the usufruct was not
created to defraud creditors, the usufructuary has NO DUTY to pay off the debt
Note: although Art. 600 speaks only of a mortgaged immovable, it can also apply by
analogy, to a pledged movable, provided that the movable is in the usufructuary's
possession (pledge of a movable)
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.
If the usufruct be a UNIVERSAL one (as when the usufruct involves the entire
patrimony, some objects of which are mortgaged, the more applicable article is
Art. 598 with its cross-references to Arts. 758 and 759).
Mortgaging of the Usufruct Itself
Since usufruct is a real right, the usufruct (as distinguished from the property itself) may be mortgaged, not by the naked owner,
but by the usufructuary. In such a case, it is the usufructuary who should pay his own debt
 - 55 -
When Notification by the Usufructuary is Required Resolutory Period property, the resolutory condition must be recorded to bind
1. if a 3rd party commits acts prejudicial to the rights of ownership 3rd persons
2. if urgent repairs are needed Merger of the - the usufruct is extinguished when the naked owner & the
3. if an inventory (at the beginning of the usufruct) is to be made Usufruct & usufructuary are one & the same person
Ownership in the H was the usufructuary of land owned by X. X died, leaving in his will, the naked ownership of the land
Effect to H. The usufruct is extinguished because now, H is both the naked owner and the usufructuary.
Effect ofofNon-notification
Notification Same Person
1. the usufructuary is liable for damages as if they had been caused thru his own A is the usufructuary of B’s - renunciation by the law refers to a voluntary surrender of the
fault land. Later, A waived his rights of the usufructuary, made w/ the intent to so surrender
2. the usufructuary cannot even make the extraordinary repairs needed usufruct willingly and since this partakes of a remission or donation, it can
voluntarily. The usufruct is them be made expressly or impliedly, as long as it is done
3. the inventory can go on, but the naked owner may later point out now extinguished. - renunciation must be made expressly clearly, with intent to renounce.
discrepancies & omissions in the inventory Renunciation or - if made expressly, the formalities of donation must be
Waiver by the complied w/
Art. 602. The expenses, costs and liabilities in suits brought with regard to the usufruct Usufructuary - renunciation is not mere abandonment, but an abandonment
shall be borne by the usufructuary. in favor of another no need for naked owner's consent
- if the renunciation is made gratuitously & in fraud of creditors,
Note: this article particularly applies only when the usufructuary has lost the case said creditors can rescind the renunciation, to the extent of
their credits
- total loss of the thing ends the usufruct, but not partial loss
CHAPTER 4: EXTINGUISHMENT OF USUFRUCT - when there is partial loss, the usufruct continues on the
Total Loss of the remaining part (Art 604)
Art. 603. Usufruct is extinguished: Thing in Usufruct - for total loss of a building (w/n the land is included in the
(1) By the death of the usufructuary, unless a contrary intention clearly appears; usufruct)
- for legal loss (e.g. expropriation)
(2) By the expiration of the period for which it was constituted, or by the fulfilment of
any resolutory condition provided in the title creating the usufruct; Termination of the - if the usufructuary has a sub-usufructuary, the sub-usufruct
(3) By merger of the usufruct and ownership in the same person; Right of the ends at the time the usufruct is extinguished, because by that
(4) By renunciation of the usufructuary; Person time, the right of the usufructuary to constitute the sub-
(5) By the total loss of the thing in usufruct; Constituting the usufruct has ended
(6) By the termination of the right of the person constituting the usufruct; Usufruct - if the sub-usufructuary dies ahead of the usufructuary, the
(7) By prescription. sub-usufruct ends, unless a contrary intention appears
- this refers to acquisitive prescription by a stranger either of
Prescription the usufruct or of the naked owner
HOW USUFRUCT IS EXTINGUISHED
- mere non-user by the usufructuary of the usufruct does not
GR: death of the usufructuary ends the usufruct terminate the usufruct, unless it is also a renunciation
Exceptions:
1. in the case of multiply usufructs – here it ends on the Other Causes for the Extinguishment of Usufruct 1) ABUSE or MISUSE of the usufruct does not extinguish it,
unless by virtue of such abuse or misuse, the thing has been
death of the last survivor (Art. 611) 1. annulment totally lost. (See Art. 610).
(Example: until X who is now 25 years old will 2. in case there is a period fixed on the number of years that 2. rescission 2) Non-fulfillment of a suspensive condition does not extinguish
become 40 years old, where the period is 15 years), would elapse before a person would reach a certain age (Art. 606) 3. mutual withdrawal
usufruct, for the simple reason that the usufruct never came into
existence.
Death of the a. exception to the exception: the period was expressly 4. legal causes ending legal usufruct (e.g. when attainment of the age of
Usufructuary granted only in consideration of the existence of such majority extinguishes parental usufruct)
person, in w/c case it ends at the death of said person
A was made usufructuary only in order that he 3. in case the contrary intention clearly (expressly/impliedly)
could enable his son to get a college degree. Art. 604. If the thing given in usufruct should be lost only in part, the right shall
appears
Even if A dies before the son graduates, the continue on the remaining part. Effect of Partial Loss
usufruct is deemed to continue. Note: death of the naked owner does not extinguish the
Art. 605. Usufruct cannot be constituted in favor of a town, corporation, or association
usufruct for the rights of the naked owner are transmitted to
for more than fifty years. If it has been constituted, and before the expiration of such
his own heirs
period the town is abandoned, or the corporation or association is dissolved, the
- if the usufruct is on real property, or on a real right on real
usufruct shall be extinguished by reason thereof.
Expiration of the property, the period must be recorded to bind 3rd persons
Period - the term should not exceed 50 years if the usufructuary is a Note: this article is not applicable to trusts
juridical person. Premature abandonment or dissolution of the trust can continue despite the restrictions in Art. 605.
juridical entity extinguishes the usufruct. (Art. 605)
Fulfillment of the - if the usufruct is on real property, or on a real right on real

Example: A is the usufructuary of land unless he marries X. Marriage to X ends the usufruct.
 Payment of Insurance on the Tenement Held in Usufruct
1. both the usufructuary and the naked owner share in the payment of the insurance premium; and
2. where it is only the naked owner who pays because the usufructuary REFUSED (deliberate non-sharing and not
mere failure to contribute or lack of payment because of ignorance of the fact that insurance is being paid)

A gave B his land

in usufruct until C - 56 -
becomes 40 years Usufruct in favour of Entities Proportion in the Contribution or Sharing
old. A constituted
the usufruct when • Sec. 11 of the Corporation Code: 50 years are allowed for the existence of a • the law does not say, in the case of sharing, in what proportion each must
C was only 20 private corporation contribute
years old. This
means that the
• In case of towns or municipal corporations, a period loner than 50 years may • a better solution would be to make the sharing of the premium proportionate
usufruct should militate against the public policy w/c prohibits the perpetual entailment of to the respective insurable interests, the premium of the naked owner being
last for 20 years, property based on the insurable interest of the naked ownership; that of the
even if C dies
before attaining
usufructuary being based on the usufructuary being based on the insurable
the age of 40. If Art. 606. A usufruct granted for the time that may elapse before a third person attains interest of the usufruct
therefore C dies at a certain age, shall subsist for the number of years specified, even if the third person
the age of 30, the
usufruct in B’s should die before the period expires, unless such usufruct has been expressly granted Rules
favor generally only in consideration of the existence of such person.Usufruct For The Time That May Elapse Before a 1.
Third Person Reaches a Certain Age
If the naked owner & the usufructuary share it he premiums and the property
continues. Art. 607. If the usufruct is constituted on immovable property of which a building forms is destroyed
Exception part, and the latter should be destroyed in any manner whatsoever, the usufructuary
a. If the owner constructs new building or rebuilds, the usufruct
If in the example shall have a right to make use of the land and the materials. continues on the new building
given, B was The same rule shall be applied if the usufruct is constituted on a building only and the i. If the cost of the new building is less than the insurance
made the
usufructuary only same should be destroyed. But in such a case, if the owner should wish to construct indemnity, the usufructuary should get legal interests on the
because he had to another building, he shall have a right to occupy the land and to make use of the difference (the amount not invested)
support C, it
materials, being obliged to pay to the usufructuary, during the continuance of the ii. If the cost is more than the insurance indemnity, the
follows that the
usufruct was usufruct, the interest upon the sum equivalent to the value of the land and of the usufructuary enjoys the new building completely, w/ no
expressly materials. obligation to give interest on the additional cost to the naked
constituted only in owner
consideration of
the existence of C.USUFRUCT ON BUILDING & LAND USUFRUCT ON THE b. If the owner does not construct a new building or rebuild, the naked
Thus, on C’s (but the building is destroyed in any BUILDING ALONE owner gets the insurance indemnity but should pay the interest/fruits
death, the usufruct
manner whatsoever before the (but the building is destroyed before the thereon to the usufructuary
ends.
expiration of the period of the usufruct) termination of the period) 2. if the naked owner alone pays for the insurance and the usufructuary has
1. the usufruct on the building is ended, 1. the usufruct on the building ends, but he refused to share and the property is destroyed
refunded
but the usufruct on the land continues usufructuary can still make use of a. the naked owner gets the whole indemnity w/ no obligation to give
the interest thereon to the usufructuary
Person At Fault 2. the usufruct is still entitled to the use whatever materials of the house remain
b. if the usufruct was on the building & the land, the usufruct continues
Must Indemnify of the land & the use of whatever 2. the usufructuary is entitled to the use of
materials of the house remains the land because although there was no on the land & the materials. The naked owner has no right to rebuild
3. if the naked owner wants to rebuild usufruct on the land, still it cannot be over the opposition of the usufructuary.
but the usufructuary refuses, it is the denied that in using the building before c. if usufruct was on the building alone, the naked owner may build w/
usufructuary who prevails for the use he was also automatically using the land or w/o the approval of the usufructuary, but he must pay interest on
of the land is still his for the 3. but precisely because there was no (Thus, if the the value of the land & the old materials that may have been used
naked owner 3. if the naked owner alone paid for the insurance but there is failure or omission
remainder period usufruct on the land, the naked owner wants to not
has preferential right to its use rebuild, but the of usufructuary to share refusal
usufructuary a. the effect is the same as if there was a sharing, but the usufructuary
refuses, it is the must reimburse the naked owner his (the usufructuary's) share of the
There should be Interest: naked owner
if the owner who should insurance premium
1. on the materials – because the usufruct was on the building, including its
wants to prevail). 4. if the usufructuary alone pays the insurance premium
construct another materials
a. a usufructuary all by himself has some sort of insurable interest on
building (or to 2. on the land – because although there was no usufruct on the land, still use of
rebuild), he (the the property, more particularly, on the usufruct thereof
the building necessitated automatic use of the land
naked owner) b. the measure of an insurable interest in property is the extent to w/c
shall have a right the insured might be damnified/prejudiced by loss/injury thereof
to occupy the Art. 608. If the usufructuary shares with the owner the insurance of the tenement
land and to make
use of the given in usufruct, the former shall, in case of loss, continue in the enjoyment of the Summary of Rules
materials, being new building, should one be constructed, or shall receive the interest on the insurance 1. the insurance indemnity goes to the usufructuary alone w/ no obligation on his
OBLIGED to indemnity if the owner does not wish to rebuild.
pay to the part to share the indemnity w/, nor to give legal interest thereon to the naked
usufructuary, Should the usufructuary have refused to contribute to the insurance, the owner owner
during the insuring the tenement alone, the latter shall receive the full amount of the insurance 2. the usufruct no doubt continues on the land for the remaining period of the
continuance indemnity in case of loss, saving always the right granted to the usufructuary in the
(remaining part usufruct, unless the usufruct has been constituted on the building alone
of the period) of preceding article. 3. the usufruct has no obligation to construct a new building or to rebuild
the usufruct the
interest (legal
interest) upon the
sum equivalent
to the value of
the land and of
the materials.
 If a usufruct is constituted in favor of 14
usufructuaries, and 3 of them die, will 3/14
of the usufruct (corresponding to the share
of the 3 dead usufructuaries) accrue to the
naked owner or will they accrue in favor of
the surviving 11 usufructuaries?
ANS.: They will accrue in favor of the 11
surviving usufructuaries for the simple - 57 -
reason that the usufruct continues up to the
death of the last survivor.
Note: a contrary stipulation between the parties will prevail RULES IN CASE OF A MULTIPLE USUFRUCT
IF CONSTITUTED IF CONSTITUTED
Art. 609. Should the thing in usufruct be expropriated for public use, the owner shall be SIMULTANEOUSLY SUCCESSIVELY
obliged either to replace it with another thing of the same value and of similar - all the usufructuaries must be - if the successive usufructs were constituted by
conditions, or to pay the usufructuary the legal interest on the amount of the indemnity alive (or at least conceived) at virtue of DONATION, all the donees-
for the whole period of the usufruct. If the owner chooses the latter alternative, he the time of constitution usufructuaries must be living at the time of the
shall give security for the payment of the interest. - it is the death of the last constitution-donation of the usufruct
survivor w/c, among other - if the successive usufructs were constituted by
RULES IN CASE OF EXPROPRIATION causes, terminates the usufruct virtue of a last WILL, there should be 2
1. he may replace w/ equivalent thing, or successive usufructuaries, & both must have
If NAKED OWNER alone 2. he may pay to the usufructuary legal interest on been alive (or at least conceived) at the time of
was given indemnity the indemnity the testator's death
he has the OPTION: - this requires security given by the naked owner
for the payment of the interest Art. 612. Upon the termination of the usufruct, the thing in usufruct shall be delivered
If BOTH the naked owner & Each owns the indemnity given to him, the usufruct to the owner, without prejudice to the right of retention pertaining to the usufructuary
the usufructuary were being totally extinguished or his heirs for taxes and extraordinary expenses which should be reimbursed. After
separately given indemnity the delivery has been made, the security or mortgage shall be cancelled.
Receipt by the 1. he must give to the naked owner & compel the
usufructuary
of the latter to return either the interest OR to replace RIGHTS & OBLIGATIONS AT THE TERMINATION OF THE USUFRUCT
expropriation
indemnity (in the property ON THE PART OF THE ON THE PART OF THE
whole or in If USUFRUCTUARY alone
part) should 2. he may deduct the interest himself, if the naked USUFRUCTUARY NAKED OWNER
not be was given indemnity owner fails to object
considered Obligations: Obligations:
proof of 1. must return the property to the naked owner 1. must cancel the security or
adverse
possession, Note: he is entitled only to legal interest (fruits) on mortgage, provided the
since after all, the indemnity if no replacement is made.
he is entitled Rights: usufructuary has complied w/ all
to either the 1. to retain the property till he is reimbursed for his obligations
interest
thereon or to a Art. 610. A usufruct is not extinguished by bad use of the thing in usufruct; but if the taxes on the capital (w/c had been advanced 2. must in case of rural lease, respect
replacement.
abuse should cause considerable injury to the owner, the latter may demand that the by him) and indispensable extraordinary leases made by the usufructuary,
thing be delivered to him, binding himself to pay annually to the usufructuary the net repairs or expenses (insofar as there has till the end of the agricultural year
proceeds of the same, after deducting the expenses and the compensation which may been an increase in the value) 3. make reimbursements to the
be allowed him for its administration. 2. to remove removable improvements or set usufructuary in the proper cases
them off against damages he has cause (the
EFFECT OF BAD USE OF THE PROPERTY HELD IN USUFRUCT removal may be done either during or after
Bad use w/c does NOT cause Bad use w/c CAUSES considerable the usufruct)
considerable injury to the naked owner injury to the naked owner
- usufruct continues - usufruct continues Note: the term “landholder” includes a lessee, a usufructuary, or a legal possessor of
- naked owner CANNOT demand - naked owner CAN demand delivery to & the land
administration by himself administration by him
- but he will be obliged to pay net
proceeds to usufructuary Being administrator
- the naked owner gets administration merely, he cannot sell
or alienate the right to
fee & administration expenses the usufruct, though
he may still alienate
the property, without
prejudice to the
Note: the court will determine w/n there is considerable injury to the naked owner usufruct.]

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.