USUFRUCT

A. Concept – (Art. 562)

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, in essence, is nothing else but simply allowing one to enjoy another’s
property. It is also defined as the right to enjoy the property of another temporarily,
including both the jus utendi and the jus fruendi,  with the owner retaining the jus
disponendi or the power to alienate the same.

Usufruct is a real right, temporary in character that authorizes the holder to

enjoy all the advantages derived from a normal exploitation of another’s property,
according to its destination or purpose, and imposes an obligation of restoring at
the time specified, either the thing itself or its equivalent.

B. Rights

a. Right to possess and enjoy the thing itself, its fruits and accessions
- Fruit consist of natural, industrial and civil fruits.
- As to hidden treasure, usufructuary is considered a stranger (Art. 566;
436)
- Fruits pending at the beginning of usufruct (Art. 567)
- Civil fruits (Art. 569, 588)

b. Right to lease the thing (Art. 572)

- Limitations
- Liability of usufructuary – lessor (Art. 590)
- Exceptions to right of leasing the thing

c. Right to improve the thing (Art. 579)

Article 579. The usufructuary may make on the property held in usufruct such
useful improvements or expenses for mere pleasure as he may deem proper,
provided he does not alter its form or substance; but he shall have no right to be
indemnified therefor. He may, however, remove such improvements, should it be
possible to do so without damage to the property.

Article 580. The usufructuary may set off the improvements he may have made on
the property against any damage to the same.

C. Obligations of Usufructuary

2. During the usufruct.

a. To take care of the thing like a good father or a family

(Art.589)
- Effect of failure to comply with obligation (Art. 610)

b. To undertake ordinary repairs (Art. 592)

Concept of ordinary repairs
Requisites:
1. If it is required by the wear and tear due to natural use of the
thing; and
2. It is indispensable for the preservation of the thing.

NOTE: If both requisites are not satisfied, then the repair is

considered “extraordinary.” Hence repairs which are caused by
exceptional circumstances, whether or not they are necessary
for the preservation of the things, are considered extraordinary.
Likewise, those which are caused by natural use of the thing but
are not necessary for its preservation are considered
extraordinary.

c. To notify owner of need to undertake extra-ordinary repairs

(Art. 593)

1. Concept of extraordinary repairs.

 2. Naked owner obliged to undertake them but when
make by owner, usufructuary pays legal interest on the amount
while usufruct lasts (Art. 594, par. 1)

3. Naked owner cannot be compelled to undertake extra-

ordinary repairs.

a. If indispensable and owner fails to undertake

extraordinary repairs may be made by usufructuary; (Art. 594, 2)

Article 593. Extraordinary repairs shall be at the expense of the owner. The

usufructuary is obliged to notify the owner when the need for such repairs is
urgent.

Article 594. If the owner should make the extraordinary repairs, he shall
have a right to demand of the usufructuary the legal interest on the amount
expended for the time that the usufruct lasts.

Should he not make them when they are indispensable for the preservation
of the thing, the usufructuary may make them; but he shall have a 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 repairs.

Extraordinary repairs (NCC, Art. 593)

It includes:
1. Those required by the wear and tear due to the natural use of the thing but not
indispensable for its preservation.

Liabilities:
a. The naked owner should be held liable, whether or not he is notified by the
usufructuary; and
b. The law does not require the naked owner to make them; what is important is
that he will bear the expenses made by the usufructuary. (Paras, 2008)

2. Those caused by exceptional circumstances and are indispensable for its

preservation.

Liabilities:
a. The naked owner shall be held liable; and
b. The usufructuary is allowed to make them with the right to get the increase in
value and the right of retention at the termination of usufruct, provided there was
notification by the usufructuary and failure to repair by the naked owner (Paras,
2008).

3. Those caused by exceptional circumstances but are not needed for its
preservation.
Liabilities:
a. The naked owner is liable; and
b. The usufructuary cannot compel the naked owner to make such repairs and he is
not allowed to make them even if the naked owner has failed to make them (Paras,
2008).

NOTE: Extraordinary repairs shall be at the expense of the owner. The

usufructuary is obliged to notify the owner when the need for such repairs is
urgent.

Article 1189. When the conditions have been imposed with the intention of
suspending the efficacy of an obligation to give, the following rules shall be
observed in case of the improvement, loss or deterioration of the thing during the
pendency of the condition:

(6) If it is improved at the expense of the debtor (seller), he shall have no other
right than that granted to the usufructuary.

Example: A is competing in a horse race in the next competition. So A agreed to

buy the only race horse of his neighbor B, that have won several races previously,
for P50,000 which to be delivered on December 15,2021. Before delivery B
decided to change the shoe of the horse because it is already broken and bought a
new saddle pad or blanket. What is the right of B upon delivery?

Answer. B shall have no other right that granted to the usufructuary . He may
make on the property held in usufruct such useful improvements or expenses for
mere pleasure as he may deem proper, provided he does not alter its form or
substance; but he shall have no right to be indemnified therefor. He may, however,
remove such improvements, should it be possible to do so without damage to the
property.

Example: A being an OFW granted a