RIGHTS OF THE

USUFRUCTUARY
SUBJECT: PROPERTY

MAUREEN P. ADRIATICO
2ND YEAR-JURIS DOCTOR
CONTENTS

ABSTRACT……………………………… …………………………………….. 4

INTRODUCTION………………………… …………………………………..…. 5

I. AS TO THE THING AND ITS FRUITS. ……………………………………… 6

a.) To receive and benefit from all the

fruits, natural, industrial, and civil
fruits………………………………………. ……………………………………… 6

b.) To the half of the hidden treasure he

accidentally finds…………………… ……………………………………... 8

c.) To enjoy any increase through

accessions, servitudes, easements, and
all benefits inherent in the
property…………………………………... ……………………………………... 9

d.) To lease the thing, generally, for the

same or shorter period as the
usufruct…………………………………... ……………………………………... 9

e.) To make on the property in usufruct

such improvement or expenses he may
deem proper and to remove the
improvements provided no damage is
caused to the property.. ……………………………………. 10

f.) Right to set off the improvements he

may have made on the property against
any damage to the same……. ……………………………………. 11

g.) To retain the thing he is reimbursed

for advances for extraordinary expenses
and taxes on the
capital………………………………... …………………………………… 11

II. AS TO THE USUFRUCT ITSELF….. …………………………………… 12

a.) To alienate the usufructuary right

(except parental usufruct)…………….. …………………………………… 12

b.) To bring action and oblige owner

thereof to give him proper authority and
necessary proof in a usufruct to recover
property or a real right……… …………………………………… 14

c.) To exercise all the rights pertaining to

the co-owner with respect to the
administration and collection of fruits or

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interests from the property in a usufruct
of part of a common
property………………………. …………………………...…… 14

d.) Right to make use of the land and

materials, when building forming part of
the usufruct on immovable has been
destroyed in any manner………. ………………………………... 14

e.) If usufructuary shares in insurance of

tenement in usufruct, and it was lost, he
shall continue in enjoyment of the new
one if one be constructed or receive
interest on the insurance
indemnity………………. ……………………………..… 16

f.) To remove improvements made by

him if the same will not injure the
property…………………………………... …………………………..…… 17

III. AS TO ADVANCES AND

DAMAGES………………………………... ……………………….……… 18

a.) To be reimbursed for indispensable

extraordinary repairs made by him in an
amount equal to the increase in value
which the property may have acquired
by reason of such repairs………………… …………………………….… 18

b.) To be reimbursed for taxes on capital

advanced by him………………. ………………………….…… 19

c.) To be indemnified for damages

caused to him by the naked owner
d.) To remove improvements made by
him if the same will not injure the ……………………………… 20
property…………………………………

d.) To remove improvements made by

him if the same will not injure the
property…………………………………. ……………………………… 20

Bibliography…………………………… ……………………………... 22

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 ABSTRACT

This term paper is all about the “Rights of the Usufructuary” under the
provisions of the Civil Code from Article 566 to Article 582. This will broaden
understanding of the rights of the usufructuary and cases decided by the Supreme
Court regarding usufructuary in its specificity.

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 INTRODUCTION

The Rights of Usufructuary evolves in requisites, formulas as to ownership,

the extent of coverage, kind of object, number of persons enjoying the right, terms or
conditions, extent of owner’s patrimony, and its impairment and obligations. To be
able to understand the rights of usufructuary in this term paper, cases decided by the
Supreme Court are included per Article that provides guidance and interpretations
for future reference in the legal system thus students enrolled in law school and bar
exam takers will as well use this paper as their reference and for additional
understanding.
As an introduction to Usufruct, there are three rights of usufructuary about
ownership:
(a) Jus Disponendi - is the right to dispose of, alienate, encumber, transform,
and destroy the property, and can also be known as Naked Ownership.
(b) Jus Utendi - is the right to use the property.
(c) Jus Fruendi - is right to the fruits in the property.
To differentiate usufruct from other types of ownership, there are three
requisites of a Usufruct and these are:
(a) The real, temporary right to enjoy another’s property or also known as
Essential,
(b) The obligation to preserve its form or any substance or Natural, and
(c) Those which may be present or absent depending upon the stipulation of
the parties or Accidental.
A Usufruct can be pictured in a broader sense and understanding through its
Origin, Extent of Coverage, Kind of Object, Number of Persons Enjoying the Right,
Terms or Conditions, Extent of Owner’s Patrimony, and Whether or Not Impairment
of Object Allowed. In its Origin, the Usufruct is constituted by law where Civil Code
provides in Articles 562 to 612, it can be voluntary in the sense that constituted by
the will of the private person expressed in acts inter vivos or a last will and
testament, and it can be mixed voluntary and legal which are constituted by
prescription created both by law and by an act of a person. The extent of coverage
can be Total or Partial which constituted the whole or part of the fruits of the thing.
As to the kind of object in a usufructuary over a right, if it involves intangible property
provided it is not strictly personal or in-transmissible while over things, it involves
tangible property. The number of persons enjoying the right can be Singular, in favor
of one person, or Multiple, in favor of two or more persons simultaneously or
successively. Terms or conditions are whether Pure, With Term or Period, and
Conditional. The extent of the owner’s patrimony can be Universal or Over entire
patrimony, or Singular or Particular if only individual things are included.
In situations whether or not impairment of an object is allowed, there is
Normal or Abnormal. Normal also known as Perfect or Regular involves non-
consumable things which the usufructuary can enjoy without altering their form or
substance. Abnormal also known as Imperfect or Regular involves things that would
be useless to the usufructuary unless they are consumed or expanded.

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I. AS TO THE THING AND ITS FRUITS

a.) To receive and benefit from all the fruits, natural, industrial, and civil fruits
ARTICLE 566
The usufructuary shall be entitled to all the natural, industrial, and civil
fruits of the property in usufruct. With respect to hidden treasure which may
be found on the land or tenement, he shall be considered a stranger.
The usufructuary has the right to receive all the fruits except:
1. Where the usufruct is constituted only on a part of the fruits of a
thing
ARTICLE 564
Usufruct may be constituted only on the whole or a part of
the fruits of the thing, in favor of one or more persons,
simultaneously or successively, and in every case from or to a
certain day, purely or conditionally. It may also be constituted on
a right, provided it is not strictly personal or intransmissible.
2. Where there is an agreement to the contrary
ARTICLE 565
The rights and obligations of the usufructuary shall be
those provided in the title constituting the usufruct; in default of
such title, or in case it is deficient.
RIGHTS TO THE FRUITS
DIVIDENDS- Usufructuary
A Dividend, whether in the form of stock, is income and, consequently,
should go to the usufructuary, taking into consideration that a stock dividend,
as well as a cash dividend, can be declared only out of profits of the
corporation
PRODUCTS WHICH DIMINISH CAPITAL- Owner
FRUITS GROWING AT THE BEGINNING OF THE USUFRUCT-
Usufructuary
FRUITS GROWING AT THE TERMINATION OF THEN USUFRUCT- Owner
Since it is the obligation of the usufructuary to preserve the form and
substance of the property unless the contrary is provided, products such as
minerals extracted from mines which when taken from the property diminishes

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 its substance are not to be treated as fruits. They form part of the capital and
belong to the naked owner.

Rules on Pending Natural or Industrial Fruits

ARTICLE 566
The usufructuary shall be entitled to all the natural, industrial, and civil
fruits of the property in usufruct. With respect to hidden treasure which may
be found on the land or tenement, he shall be considered a stranger.
Fruits pending at the BEGINNING of usufruct:
1.) Belong to the usufructuary;
2.) No necessity to refund the owner for expenses incurred;
3.) But without prejudice to the right of third persons.
Fruits pending at the TERMINATION of the usufruct:
1.) Belong to the owner;
2.) But the owner must reimburse the usufructuary for ordinary cultivation
expenses and for the seeds and similar expenses, from the proceeds of the
fruits;
3.) Rights of innocent third parties should not be prejudiced in relation to
ARTICLE 546
Necessary expenses shall be refunded to every possessor; but only
the possessor in good faith may retain the thing until he has been reimbursed
thereof.
Useful expenses shall be refunded only to the possessor in good faith
with the same right of retention, the person who has defeated him in the
possession having the option of refunding the amount of the expenses or of
paying the increase in value which the thing may have acquired by reason
thereof.
And
ARTICLE 443
He who receives the fruits has the obligation to pay the expenses
made by the third person in their production gathering, and preservation.
If the expenses are greater than the proceeds of the fruits, the owner
has no obligation to reimburse the difference.
There is no proceeds of fruits from which the expenses should be paid.
ARTICLE 435

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 No person shall be deprived of his property except by competent
authority and for public use and always upon payment of just compensation.
Should this requirement be not first complied with, the courts shall
protect and, in a proper case, restore the owner in his possession.

b.) To the half of the hidden treasure he accidentally finds

ARTICLE 566
The usufructuary shall be entitled to all the natural, industrial, and civil
fruits of the property in usufruct. With respect to hidden treasure which may
be found on the land or tenement, he shall be considered a stranger.
In relation to
ARTICLE 438
Hidden treasures belong to the owner of the land, building, or
other property which it is found.
Nevertheless, when the discovery is made on the property of
another, of the State or any of its subdivisions, and by chance, one-half
thereof shall be allowed to the finder. If the finder is a trespasser, he
shall not be entitled to any share of the treasure.
If the things found be of interest to science of the arts, the State
may acquire them at their just price, which shall be divided in
conformity with the rule stated.
The usufructuary is not entitled to any hidden treasures which may be
found on the property because it does not fall under the term “fruits”. He shall
be considered a stranger:
If he is the finder, he is entitled to one-half of the treasure with the
other half pertaining to the owner.
If another person is the finder, such person gets one-hald as
finder, and the owner gets the other half as owner.
If somebody else is the finder, the usufructuary gets nothing.

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c.) To enjoy any increase through accessions, servitudes, easements, and all
benefits inherent in the property

ARTICLE 571
The usufructuary shall have the right to enjoy any increase which the
thing in usufruct may acquire through accession, the servitudes established in
its favor, and, general, all the benefits inherent therein.
The reason for this explanation is that Usufruct covers the entire JUS
FRUENDI and the entire JUS UTENDI.

d.) To lease the thing, generally, for the same or shorter period as the usufruct
ARTICLE 572
The usufructuary may personally enjoy the thing in usufruct, lease it to
another, or alienate his right of usufruct, even by a gratuitous title; but all the
contracts he may enter into as such usufructuary shall terminate upon the
expiration of the usufruct, saving leases of rural lands, which shall be
considered as subsisting during the agricultural year.
The usufructuary may lease it even without the owner’s consent but, not being
the owner, the usufructuary, cannot alienate, pledge, or mortgage the thing itself.
He may sell future crops subject to the rule that those ungathered at the time
when the usufruct terminated belong to the owner, When the things given in usufruct
cannot be used without being consumed or were appraised when delivered, the
usufructuary may dispose of them.
If the lessee should damage the property, the usufructuary shall answer to the
owner.
ARTICLE 590
The usufructuary who alienates or leases his right of usufruct shall
answer for any damage which the things in usufruct may suffer through the
fault or negligence of the person who substitutes him.
Subject to the latter’s right to demand reimbursement from the former. If the
usufructuary cannot pay the damage to the naked owner, his bond shall be liable.
ARTICLE 583
The usufructuary, before entering upon the enjoyment of the property,
is obliged:

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 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 fulfill the obligations imposed upon him
in accordance with this Chapter.
All contracts entered into by the usufructuary shall terminate upon the
expiration of the usufruct or earlier, except rural leases which continue during
the agricultural year.

ARTICLE 572
The usufructuary may personally enjoy the thing in usufruct, lease it to
another, or alienate his right of usufruct, even by a gratuitous title; but all the
contracts he may enter into as such usufructuary shall terminate upon the
expiration of the usufruct, saving leases of rural lands, which shall be
considered as subsisting during the agricultural year.
In relation to
ARTICLE 1682
The lease of a piece of rural land, when its duration has not been fixed,
is understood to have been made for all the time necessary for the gathering
of the fruits which the whole estate leased may yield in one year, or which it
may yield once, although two or more years may have to elapse for the
purpose.

e.) To make on the property in usufruct such improvement or expenses he may

deem proper and to remove the improvements provided no damage is caused
to the property
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 thereof. He may, however, remove such improvements, should
it be possible to do so without damage to the property.
The usufructuary has the right to make useful improvements or expenses for
mere pleasure provided that he must not alter the form or substance of the
property in usufruct but he shall have no right to be indemnified therefor but
he may either:

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 1. Remove the improvements if no substantial damage to the property is
caused; or
2. Set off the improvements against damages for which he may be liable
under
ARTICLE 580
The usufructuary may set off the improvements he may have made on
the property against any damages to the same.

f.) Right to set off the improvements he may have made on the property
against any damage to the same
ARTICLE 580
The usufructuary may set off the improvements he may have made on
the property against any damage to the same.
Requisites Before Set Off Can Be Made:
1.) Damage must have been caused by the usufructuary; and
2.) Improvements must have augmented the value of the property.
Rules Governing Article 580
1.) If damage exceeds the value of the improvements, the usufructuary is still
liable for the difference;
2.) If the value of the improvements exceeds the damage, the difference does
not go to the usufructuary, but accrues in favor of the naked owner, in the
absence of stipulation to the contrary.

g.) To retain the thing he is reimbursed for advances for extraordinary

expenses and taxes on the capital
ARTICLE 612
Upon the termination of the usufruct, the thing in usufruct, the thing in
usufruct shall be delivered to the owner, without prejudice to the right of
retention pertaining to the usufructuary or his heirs for taxes and extraordinary
expenses which should be reimbursed. After the delivery has been made, the
security or mortgage shall be cancelled.

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II. AS TO THE USUFRUCT ITSELF

a.) To alienate the usufructuary right (except parental usufruct)

ARTICLE 572
The usufructuary may personally enjoy the thing in usufruct, lease it to
another, or alienate his right of usufruct, even by a gratuitous title; but all the
contracts he may enter into as such usufructuary shall terminate upon the
expiration of the usufruct, saving leases of rural lands, which shall be
considered as subsisting during the agricultural year.
In relation to Family Code
ARTICLES 225
The father and the mother shall, jointly exercise legal
guardianship over the property of their unemancipated common child
without the necessity of a court appointment. In case of disagreement,
the father’s decision shall prevail, unless there is a judicial order to the
contrary.
Where the market value of the property of the annual income of
the child exceeds P50,000, the parent concerned shall be required to
furnish a bond in such amount as the court may determine, but not less
than ten per centum (10%) of the value of the property or annual
income, to guarantee the performance of the obligations prescribed for
general guardians.
A verified petition for approval of the bond shall be filed in the
proper court of the place where the child resides, or if the child resides
in a foreign country, in the proper court of the place where the property
or any part thereof is situated.
The petition shall be docketed as a summary special proceeding
in which all incidents and issues regarding the performance of the
obligations referred to in the second paragraph of this Article shall be
heard and resolved.
The ordinary rules on guardianship shall be merely suppletory
except when the child is under substitute parental authority, or the
guardian is a stranger, or a parent has remarried, in which case the
ordinary rules on guardianship shall apply.
And

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 ARTICLE 226
The property of the unemancipated child earned or acquired
with his work or industry or by onerous or gratuitous title shall belong to
the child in ownership and shall be devoted exclusively to the latter’s
support and education, unless the title or transfer provides otherwise.
The right the parents over the fruits and income of the child’s
property shall be limited primarily to the child’s support and secondarily
to the collectively daily needs of the family.
General Rule: The usufructuary may pledge or mortgage the usufructuary right
(because he owns said right) but he cannot pledge or mortgage the thing itself
because he does not own the thing
ARTICLE 572
The usufructuary may personally enjoy the thing in usufruct, lease it to
another, or alienate his right of usufruct, even by a gratuitous title; but all the
contracts he may enter into as such usufructuary shall terminate upon the
expiration of the usufruct, saving leases of rural lands, which shall be
considered as subsisting during the agricultural year.
In relation to
ARTICLE 2085 (2)
(2) That the pledgor or mortgagor be the absolute owner of the thing
pledged or mortgaged
EXCEPTIONS:
1.) The legal usufruct of the parent over his or her children cannot be alienated,
pledged, or mortgaged for the right is personal and intransmissible burdened as it is
by important obligations of the parent for the benefit of said children to; and
2.) A usufruct given in consideration of the person of the usufructuary to last during
his lifetime is also personal and, therefore, intransmissible.
Note: All contracts entered into by the usufructuary shall terminate upon the
expiration of the usufruct or earlier, except rural leases which continue during
the agricultural year
ARTICLE 572
The usufructuary may personally enjoy the thing in usufruct, lease it to
another, or alienate his right of usufruct, even by a gratuitous title; but all the
contracts he may enter into as such usufructuary shall terminate upon the
expiration of the usufruct, saving leases of rural lands, which shall be
considered as subsisting during the agricultural year.
In relation to

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 ARTICLE 1682
The lease of a piece of rural land, when its duration has not been fixed,
is understood to have been made for all the time necessary for the gathering
of the fruits which the whole estate leased may yield in one year, or which it
may yield once, although two or more years may have to elapse for the
purpose.

b.) To bring action and oblige owner thereof to give him proper authority and
necessary proof in a usufruct to recover property or a real right
ARTICLE 578
The usufructuary of an action to recover real property or real right, or
movable property, has the right to bring the action and to oblige the owner
thereof to give him the authority for this purpose and to furnish him whatever
proof he may have. If in consequence of the enforcement of the action he
acquires the thing claimed, the usufruct shall be limited to the fruits, the
dominion remaining with the owner.

c.) To exercise all the rights pertaining to the co-owner with respect to the
administration and collection of fruits or interests from the property in a
usufruct of part of a common property
ARTICLE 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.

d.) Right to make use of the land and materials, when building forming part of
the usufruct on immovable has been destroyed in any manner
ARTICLE 607
If the usufruct is constituted on immovable property of which a building
forms part, and the latter should be destroyed in any manner whatsoever, the
usufructuary shall have a right to make use of the land and the materials.

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 The same rule shall be applied if the usufruct is constituted on a
building only and the same should be destroyed. But in such a case, if the
owner should wish to construct another building, he shall have a right to
occupy the land and to make use of the materials, being obliged to pay to the
usufructuary, during the continuance of the usufruct, the interest upon the
sum equivalent to the value of the land and of the materials.
If the usufruct is constituted on immovable property of which a building forms
part, and the latter should be destroyed in any manner whatsoever (usufruct on the
building only)
In this case, if the owner should wish to construct another building, he shall
have a right to occupy the land and to make use of the materials, being obliged
to pay to the usufructuary, during the continuance of the usufruct, the interest
upon the sum equivalent to the value of the land and of the materials.
Precisely because there was no usufruct on the land, the naked owner has the
preferential right to its use.
Usufruct on a Building and/or the Land Concerned.
RULES:
1.) Usufruct on both building and land (but the building is destroyed in any
manner whatsoever before the expiration of the period of the land continues;
a.) The usufruct on the building ends, but the usufruct on the land
continues;
b.) Therefore, the usufructuary is still entitled to the use of the land and
the use of whatever materials of the house remain;
c.) If the naked owner wants to rebuild but the usufructuary refuses, it
is the usufructuary who prevails for the use of the land is still his for the
remainder of the period.
2.) Usufruct on the building alone (but the building is destroyed before the
termination of the period):
a.) The usufruct on the building ends, but usufructuary can still make
use of whatever materials of the house remain;
b.) The usufructuary is entitled to the use of the land;
c.) Because there was no usufruct on the land, the naked owner has
preferential right to its use.
While the usufruct on a building does not expressly include the land on which
it is constructed, the land should be deemed included, because there can be
no building without land.

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e.) If usufructuary shares in insurance of tenement in usufruct, and it was lost,
he shall continue in enjoyment of the new one if one be constructed or receive
interest on the insurance indemnity.
ARTICLE 608
If the usufructuary have refused to contribute to the insurance, the
owner insuring the tenement alone, the latter shall receive the full amount of
the insurance indemnity in case of loss, saving always the right granted to the
usufructuary in the preceding article.
What constitutes as “Sharing”
1.) The amount respectively given is immaterial, and that as long as both
shared in paying the first paragraph of Article 608 applies, except if there be a
stipulation between them to the contrary.
2.) A better solution perhaps would be to make the sharing of the premiums
proportionate to the respective insurable interests, the premium of the naked owner
being based on the insurable interest of the naked ownership; that of the
usufructuary being based on the insurable interest of the usufruct.
Article 608 is silent where the usufructuary alone pays the insurance of, where
both share in the payment thereof, as to the proportion of their contribution to
the insurance.
Rules applicable to Article 608:
1.) The insurance indemnity (which cannot be more than the value of the usufruct)
goes to the usufructuary alone, with no obligation on his part to share the indemnity
with, nor to give legal interest thereon to the naked owner,
2.) The usufruct continues on the land for the remaining period of the usufruct
(unless the usufruct had been constituted on the building alone); and
3.) The usufructuary has no obligation to construct a new building or to rebuild
(whether the usufruct was constituted on the building alone, or on both the building
and the land). The usufructuary surely cannot be compelled to rebuild because the
insurance indemnity will be much less than cost of the building.
A contrary stipulation between the parties will prevail over the foregoing rules.
Payment of Insurance on the Tenement Held in Usufruct
a.) If the naked owner and usufructuary share in the premiums (and the property is
destroyed):
1. If the owner constructs a new building, the usufruct continues on the new
building.
i. If the cost of the building is less than the insurance indemnity, the
usufructuary should get legal interests on the difference.

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 ii. If the cost is more than the insurance indemnity, the usufructuary
enjoys the new building completely, with no obligation to give interest
on the additional cost of the naked owner.
2. If the naked owner does not construct a new building or rebuild, the naked
owner gets the interest thereon to the usufructuary.
b.) If the naked owner alone pays the insurance and the usufructuary refused to
share:
1. The naked owner gets the whole indemnity (with the obligation to give the
interest thereon to the usufructuary).
2. If the usufruct was on the building and the land, the usufruct continues on
the land and the materials.
3. If the usufruct was on the building alone the naked owner may rebuild, with
or without the approval of the usufructuary, but he must pay interest on the
value of the land and the old materials that may have been used.
c.) If the naked owner alone paid for the insurance but there is failure or omission of
usufructuary to share.
The effect is the same as if there was a sharing, but the usufructuary must
reimburse the naked owner of the usufructuary’s share of the insurance
premium.
d.) If the usufructuary alone pays the insurance premium:
1. The insurance indemnity goes to the usufructuary alone, with no obligation
on his part to share the indemnity with, nor to give legal interest thereon to,
the naked owner.
2. The usufruct continues on the land for the remaining period of the usufruct.
3. The usufructuary has no obligation to construct a new building or to rebuild.

f.) To remove improvements made by him if the same will not injure the
property
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.

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III. AS TO ADVANCES AND DAMAGES

a.) To be reimbursed for indispensable extraordinary repairs made by him in

an amount equal to the increase in value which the property may have
acquired by reason of such repairs
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.

What constitutes as “Extraordinary Repairs”

1.) Those required by the owner and tear due to the natural use of the thing but not
indispensable for its preservation;
2.) Those required by the deterioration of or damage to the thing caused by
exceptional circumstances but not indispensable for its preservation; and
3.) Those required by the deterioration of or damage to the thing caused by
exceptional circumstances and are indispensable for its preservation.
Requisites before the usufructuary may make extraordinary repairs:
1.) There must be due Notification to naked owner of urgency;
2.) The naked owner Failed to make them; and
3.) The repair is Needed for preservation
Right of Usufructuary Who Has Made Extraordinary Repairs:
1. Get increase in value
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

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 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.
or get reimbursement of expenses
ARTICLE 612
Upon the termination of the usufruct, the thing in usufruct shall be
delivered to the owner, without prejudice to the right of retention pertaining to
the usufructuary or his heirs for taxes and extraordinary expenses which
should be reimbursed. After the delivery has been made, the security or
mortgage shall be cancelled.

b.) To be reimbursed for taxes on capital advanced by him

ARTICLE 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.
The naked owner pays for taxes imposed directly on the capital (provided they
are not annual-example, the estate tax).
If advanced (in the meantime) by the usufructuary, said usufructuary:
a.) Should be reimbursed the amount paid without legal interest:
1. If the advance was made voluntarily the reimbursement shall
be made at the termination of the usufruct.
b.) Is entitled to retention until paid
ARTICLE 612
Upon the termination of the usufruct, the thing in usufruct shall
be delivered to the owner, without prejudice to the right of retention
pertaining to the usufructuary or his heirs for taxes and extraordinary
expenses which should be reimbursed. After the delivery has been
made, the security or mortgage shall be cancelled.
c.) To be indemnified for damages caused to him by the naked owner
ARTICLE 581

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 The owner of the 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.
The naked owner may alienate the property in usufruct because the title
(dominium directum) remains vested in him but he cannot:
1. Alter the form or substance of the property; and
2. Do anything thereon which may cause a diminution in the value of the
usufruct or be prejudicial to the rights of the usufructuary.

c.) To be indemnified for damages caused to him by the naked owner

ARTICLE 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.

ILLUSTRATION:
1. In case of double sale of the usufructuary right, Article 1544 relating to a
double sale good faith registers the usufruct, he can oust the first buyer who
did not register, even though the latter be in possession. The right of the first
usufructuary would be to proceed against the naked owner for breach of the
warranty against eviction;
2. In case of succession, if the naked owner bequeaths (if personal property)
or devises (if real property) to another through a will, the legatee or devisee
should respect the usufruct;
3. In case the property subject of the usufruct is sold to another, the buyer
must respect the usufruct in case it is registered or known to him, otherwise,
he can oust the usufructuary, who can then look to the naked owner for
damages.

d.) To remove improvements made by him if the same will not injure the
property
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

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 be indemnified therefor. He may, however, remove such improvements,
should it be possible to do so without damage to the property.

While a possessor in good faith is entitled to a refund for useful

improvements, a usufructuary is not.

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BIBLIOGRAPHY:
1. Civil Code of the Philippines, 2016 edition, Compiled & Edited by: RBSI
2. Memory Aid by San Beda College of Law, RGCT Bar Operation Center

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