LEASE USUFRUCT

one of the parties binds himself to give to Gives the right to enjoy the property of
another the enjoyment or use of a thing another with the obligation of preserving its
for a price certain, and for a period which form and substance, unless the title
may be definite or indefinite. However, no constituting it or the law provides
lease for more than ninety-nine years shall
be valid. (Art. 1643, Civil Code)
CONSIDERATION Rent depending on terms USUFRUCT GIVE BOND
EFFECTS Lease is terminated 1. Owner may hold the property under
CONSIDERATION/SECURITY administration
NO COMPLIED 2. Owner may retain sum for administration
– deducted from the fruits
3. Owner may demand sale of the property
HOW CONTITUTED By a contract BY:
Oral or writing 1. Law
EXC if for more than 1 yr 2. Acts inter vivos
3. Last will
4. prescription
OBJECT Things Whole or part of the FRUITS of the thing
services
TERM Agreed upon by the parties Defined terms
Not more than 99 years Not more than 50 yrs – juridical persons
PERSON ENJOYING THE Lessee during the entire duration of the Usufructuary – one or more persons,
RIGHT lease contract simultaneously or successively
RIGHTS LESSEE USUFRUCTUARY
1. the right to the peaceful enjoyment of 1. entitled to the fruits
the thing leased 2. enjoy any increase in the thing in usufruct
2. may sublease unless otherwise (accession or servitudes)
stipulated 3. lease, alienate his rights
3. no right to assign lease 4. appropriate/ consume the thing – use it
for the purpose which it was intended
LESSOR 5. right to bring action to recover real
4. to receive rents property or rights; compel the owner to
grant him such rights
6. make improvements
REPAIRS – WHO BEAR Major repair-lessor Ordinary – Usufructuary
Minor repair-lessee Extraordinary – Owner (U notify O if urgent)
REMEDY OF PARTIES LESSEE 1. O made the EOR – U pay interest on the
1. recission with damages amount for the duration of the U
2. damages but contract in force
2. U made the EOR – demand from O the
increase in value by reason of the repair at
the end of the U
USEFUL IMPROVEMENTS LESSEE USUFRUSTUARY
1. entitled to ½ of the value or 1.NO right to be indemnified
2. remove the improvement without 2.May remove improvements without
causing damage to the property damage to property
ORNAMENTAL EXPENSES LESSEE 3.Set off the improvements against the
1. remove the improvement without damage
causing damage to the property
OBLIGATIONS OF THE OBLIGATIONS OF THE LESSOR: USUFRUCTUARY
PARTIES 1. To deliver the thing in such a condition 1. Make an inventory of all the property –
as to render it fit for the use intended; with appraisal of movables and
2. To make all necessary repairs on the description of immovables
thing; 2. To give security
 3. To maintain the lessee in peaceful and EXC:
adequate enjoyment of the lease for the a. Donors retaining usufructuary on the
entire duration of the contract. property donated
b. Parents who are usufructuaries of the
child EXC if remarried
c. No one will be injured by the usufruct
3. Tale care of the things as a GFOF
4. If he alienates/ lease – answer for
damages suffered by the thing in usufruct
5. Make ordinary repairs
6. Pay annual charges and taxes
7. May collect credits in favor of the
property usufruct if has given security; no
or insufficient security – cannot collect;
requires consent
8. Notify the O for any acts of 3P prejudicial
to O

OBLIGATIONS OF THE LESSEE: OWNER

1. To pay rent; 1. Make extraordinary repairs
2. To use thing leased as a diligent father 2.
of a family, devoting it to the use
stipulated;
3. To pay expenses for the deed of lease;
4. To notify the lessor of usurpation or
untoward acts;
5. To notify the lessor of need for repairs;
6. To return the property leased upon
termination of the lease.
EFFECTS OF LOSS BY FE TOTAL – U extinguished
1. If FULL, extinguished PARTIAL – continue on the remaining part
2. If PARTIAL, reduction of rent and
recission ANIMALS
1.U replace young if animals die from
natural cause or rapacity of beasts
2.If perished without fault of U due to
contagious disease – return only what is
remaining
3.Herd perished without fault of U –
continue on the part left
EXTINGUISHMENT RECISSION 1. Death of U
1. Lessor/lessee could not comply with 2. Expiration of the period
his obligations 3. Fulfillment of a resolutory condition
2. Dwelling or building intended for 4. Merger of the U and O
habitation bring imminent danger to 5. Renunciation of U
life or health 6. Total loss of the thing
3. When repairs will render the dwelling 7. Termination of the right of the person
unhabitable for more than 40 days instituting the usufruct
8. prescription
EJECTING THE LESESSE
1. Period of the lease expired
2. Lack of payment of the price
3. Violations of the conditions agreed
upon in the contract
4. Lessee devotes the thing for other
 purposes other than what is stipulated
in the lease

LOSS OF THE THING LEASE BY FE