USUFRUCT

Usufruct
It is the right to enjoy the property of another with the obligation of preserving its form
and substance.

Usufruct v. naked ownership

Naked
Usufruct
ownership
Jus utendi
Jus disponendi
Jus fruendi

Characteristics of usufruct:
1. Temporary
2. Real right of the use and enjoyment of the property whether or not the same be
registered
3. Purpose is to enjoy the benefits and derive all advantages from the thing due to
normal exploitation
4. May be constituted on real or personal property, consumable or non-consumable
property
5. Transmissible

Usufruct v. antichresis
Antichresis Usufruct
Antichresis is a
real security
transaction Usufruct is a real
wherein the right which
creditor acquires authorizes its
the right to holder to enjoy
receive the fruits the property of
of an immovable another with the
of his debtor, and obligation of
the obligation to preserving its
apply them to the form and
payment of the substance, unless
interest, if owing, otherwise
and thereafter to provided.
the principal of his
credit.
 Usufruct need not
arise from
contract, because
it may also be
Antichresis is constituted by law
always created by or by other acts
contract. inter vivos, such
as donation, or in
a last will and
testament, or by
prescription.
The subject The subject
matter of matter of usufruct
antichresis is may either be real
always a real property or
property. personal property.
Usufruct when
Antichresis is an
created by
accessory
contract is a
contract.
principal contract.
The antichretic
creditor has the
right to receive
During the
the fruits with the
usufruct, the fruits
obligation to apply
belong to the
the fruits to the
usufructuary not
interest, if owing,
the naked owner.
and thereafter to
the principal of
the credit.
In antichresis the
amount of the There is no
principal and the particular form
interest charge required to
must be in writing constitute a valid
in order to be usufruct.
valid.

Usufruct v. lease
Usufruct Lease
Generally a
Always a real personal right;
right. becomes a real
right if registered.
Person creating Lessor may not
 be the owner; he
the usufruct is the
may sublease the
owner.
property.
Created by
May be created
contract. May be
by law, contract,
created by law in
will, or
case of forced
prescription.
lease.
Covers fruits and
Covers use only.
uses of property.

Usufruct v. commodatum
Usufruct Commodatum
A contract by
Right given to a which one of the
person to enjoy parties (bailor)
the property of delivers to
another with the another (bailee) a
obligation of non-consumable
preserving its thing so that the
form and latter may use it
substance. for a certain time
and return it.
Bailee only
Usufructuary has
acquires the use
right to the fruits
of the thing
and use of the
loaned but not its
property.
fruits.
Consumable
goods may be
May be subject thereof
constituted on the only when the
whole or part of purpose of the
the fruits of the contract is not the
thing or consumption of
consumables. the object as
when it is merely
for exhibition.

Usufruct v. easement
Usufruct Easement
The object may The object is only
be real or real property.
personal property.
All uses and fruits
Limited to a
of the property
particular use.
are enjoyed.
It cannot be
It may be
constituted on an
constituted in
easement; but it
favor of, or
may be
burdening, a
constituted on the
piece of land held
land burdened by
in usufruct.
an easement.
Not extinguished
Extinguished by
by the death of
death of
the owner of the
usufructuary.
dominant estate.

Requisites of usufruct:
1. Essential
2. Natural
3. Accidental

Classifications of usufruct:
1. As to origin:
(a) Legal: constituted by law.
(b) Voluntary: constituted by the will of private persons.
(c) Mixed: constituted by prescription (by law and act of a person).
2. As to coverage:
(a) Total: constituted on the whole of the fruits of the thing.
(b) Partial: a part of the fruits of the thing.
3. As to number of beneficiaries:
(a) Simple: if only one usufructuary enjoys the usufruct.
(b) Multiple: if several usufructuaries enjoy the usufruct.
(1) Simultaneous: at the same time.
(2) Successive: one after the other.
4. As to subject matter:
(a) Over things:
(1) Normal or perfect: involves non-consumable things where the form and
substance are preserved.
(2) Abnormal or imperfect: involves consumable things.
(b) Over rights: must have the following requisites:
(1) Must not be strictly personal.
 (2) Must be transmissible.
(3) Must have its own independent existence.
5. As to the effectivity or extinguishment:
(a) Pure: no term or condition.
(b) With a term: there is a period which may either be suspensive or resolutory.
(1) Ex die: from a certain day.
(2) In diem: up to a certain day.
(3) Ex die in diem: from a certain day up to a certain day.
(c) Conditional: subject to a condition which may either be suspensive or
resolutory.

Rights of the usufructuary

1. The right of enjoyment of the usufructuary extends to all the accessions which
the property held in usufruct may acquire, to the servitudes or easements
established in favor of such property, as well as to all the benefits inherent in the
property.
2. If the usufruct is over a woodland, the usufructuary may cut trees on the land as
the owner was in the habit of doing or in accordance with the custom of the
place, as to the manner, amount and season.
3. In case of usufruct over fruit-bearing trees and shrubs, the usufructuary has the
full and unfettered right to gather the fruits from the tree but he does not have the
right to cut trees. However, he may use the dead trunks and those uprooted by
accident with the obligation to replace them with new plants. If in consequence of
a calamity, the trees or shrubs disappear in a manner that it would not be
possible or burdensome to replace them, the usufructuary may leave the dead,
fallen, or uprooted trunks at the disposal of the owner and demand that the latter
remove them and clear the land.
4. If the usufruct is over an action to recover property, be it real or personal, the
usufructuary has the right to bring the action and to oblige the owner thereof to
give him the authority for such purpose and to furnish him whatever proof the
owner may have.

Rights that may be exercised by the owner

1. Owner may alienate the property held in usufruct since the owner retains the jus
disponendi.
2. Owner may mortgage the property.
3. Owner may construct any works and make any improvements of which the
immovable in usufruct is susceptible or make new plantings thereof if it be rural.
 4. Owner may, without the consent of the usufructuary, impose a voluntary
easement upon the tenement or piece of land held in usufruct since easement
consists only of a limited use and enjoyment of the thing without possession.

Limitations of rights of owner

1. There shall be no alteration of the form or substance of the thing
2. It shall not be prejudicial nor injurious to the right of the usufructuary
3. There shall be no diminution in the value of the usufruct

Rule as to pending natural and industrial fruits

 When usufruct begins: belong to the usufructuary and he has no obligation to
refund to the owner any expenses incurred by the latter in connection with the
cultivation and production of such fruits.
 When usufruct terminates: belong to the owner of the property but the latter
shall be obliged to reimburse the usufructuary the ordinary expenses of
cultivation, for seeds and other similar expenses incurred by the usufructuary.

Rule as to civil fruits

 They shall belong to the usufructuary in proportion to the time the usufruct may
last.

Effect of transfer or alienation of right of usufruct

It will not result in the termination of the relation between the usufructuary and the
naked owner.

Usufructuary rights which may not be alienated:

1. The legal usufruct of parents over the fruits and income of the property of
unemancipated children.
2. Usufruct granted to a usufructuary in consideration of his person to last during his
lifetime since the usufruct is a matter of personal quality.
3. When the enjoyment of the property held in usufruct is acquired through caucion
juratoria inasmuch as the basis is the need of the usufructuary.
Caucion juratoria refers to the promise under oath made in court by the usufructuary
who has not given security for the purpose of acquiring the use of the following:
 1. Furniture necessary for his use;
2. Dwelling or house;
3. Implements, tools, and other movable property necessary for an industry or
vocation in which he is engaged.

Right to useful and ornamental improvements

The usufructuary has the right to introduce improvements on the property held in
usufruct, whether the same be a useful improvement or for mere pleasure, provided that
he does not alter its form or substance.
1. He may remove the improvements if such removal is possible without damage to
the property.
2. He may set-off the improvements against any damage he has caused to the
property held in usufruct.

Obligations of the usufructuary

A) At the commencement of the usufruct
(1) To make an inventory of all the property covered by the right of usufruct.
(2) To give security or bond.
These are not conditions sine qua non for the effectivity of the usufruct. However, they
are for the entry and enjoyment of the property.

If usufructuary does not give security:

1. The immovables be placed under administration.
2. The movables be sold and its proceeds be invested in safe securities.
3. The public bonds, instruments of credit payable to order or bearer be converted
into registered certificates or deposited in a bank or public institution.
4. The capital sums in cash be invested in safe securities.

When security is not required:

1. When no one will be injured thereby;
2. When there is a waiver by the naked owner;
3. When the usufructuary is the donor of the property;
4. When there is a parental usufruct (parents are the usufructuaries of their
children’s property), except when the parents contract a subsequent marriage;
5. When there is a caucion juratoria.
Instances where usufructuary may be relieved of the foregoing obligations
1. The usufructuary may be excused from the obligation of making an inventory or
of giving security when no one will be injured thereby.
2. When the enjoyment of the property subject of the usufruct is to be acquired
through caucion juratoria.

Caucion juratoria refers to the promise under oath made in court by the usufructuary
who has not given security for the purpose of acquiring the use of the following:
1. Furniture necessary for his use;
2. Dwelling or house;
3. Implements, tools, and other movable property necessary for an industry or
vocation in which he is engaged.

B) During the life of usufruct

1. To make the ordinary repairs on the property held in usufruct;
2. Pay the annual charges and taxes which are imposed on the fruits of the property
held in usufruct.
3. Notify the owner of the need of urgent extraordinary repairs.
4. Pay the expenses, costs, and liabilities for suits involving the usufruct; and
5. Notify the owner of any act of a third person that may be prejudicial to the rights
of the owner.

Ordinary repairs
They are to be borne by the usufructuary. The repair is considered is ordinary if the
following requisites:
1. It is required by the wear and tear due to the natural use of the thing; and
2. It is indispensable for the preservation of the thing.
If both requisites are not satisfied, then the repair is considered as extraordinary.

Extraordinary repairs
They shall be made at the expense of the owner. If the owner makes the extraordinary
repairs, he has the right to demand of the usufructuary payment of the legal interest on
the amount expended from the time they were made until the usufruct lasts.
If the needed extraordinary repairs are indispensable for the preservation of the thing,
the usufructuary, on the other hand, has an option to make the repairs himself but he
has the obligation to notify the owner of the need of such repairs in view of the urgency
of the matter.
If after such notice, the owner still fails to make the extraordinary repairs, the
usufructuary is then authorized to make them, in which case, he acquires the following
rights in connection therewith:
1. The right to demand of the owner, at the termination of the usufruct, the increase
in value which the immovable may have acquired by reason of the repair.
2. The right to retain the property held in usufruct pending the reimbursement by the
owner of such expenses.

Payment of annual charges and taxes

They shall be at the expense of the usufructuary for all the time that the time usufruct
lasts.
Taxes which, during the usufruct, may be imposed directly on the capital, shall be at the
expense of the owner.
Land taxes, being payable annually, are chargeable against the usufructuary.

EXTINGUISHMENT OF USUFRUCT
Causes for the extinguishment of usufruct:
1. Death of the usufructuary
2. Expiration of the period for which it was constituted or by the fulfillment of any
resolutory condition provided in the title creating the usufruct
3. Merger of the usufruct and ownership in the same person
4. Renunciation of the usufructuary
5. Total loss of the thing in usufruct
6. Termination of the right of the person constituting the usufruct
7. Prescription
8. Non-compliance with any condition agreed upon by the parties
9. Rescission or annulment of the contract which is the source of the usufruct
10. Any causes which extinguish legal usufruct

Death of usufructuary
The law limits the life of the usufruct to 50 years if the same is constituted in favor of a
town, corporation, or association. The purpose is to avoid perpetual usufruct.
Death of the naked owner will not extinguish the usufruct.

Exceptions:
1. When the contrary intention clearly appears.
2. In multiple usufructs is extinguished only upon the death of the last survivor.

Loss of the thing

A thing is lost when it perishes or goes out of commerce or disappears in such a
manner that its existence is unknown or it cannot be recovered. Hence, loss may either
be physical or juridical.

Exceptions:
1. If the usufruct is constituted on a building and the latter is destroyed without the
fault of the usufructuary, the usufruct is not extinguished. In such a situation, the
usufructuary has the right to make use of the land and the materials.
2. If the property held in usufruct was expropriated for public use, the usufruct is not
extinguished. In such a case, the owner has the options:
(a) Replace it with another thing of the same value and conditions; or
(b) Pay the usufructuary the legal interest on the amount of the indemnity for the
whole period of the usufruct, giving security for such payment.

C) Upon termination
The usufructuary loses the right to possession of the property and he is obliged to
deliver the same to the owner unless the usufructuary is entitled to exercise the right to
retain the property.
The usufructuary enjoys a right of retention until payment of the following:
1. Sums that may have been advanced by the usufructuary for payment of taxes
which are imposed directly on the capital; and
2. The increase in the value which the immovable acquired by reason of the
extraordinary repairs paid for by the usufructuary.