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Obligations of the

Usufructuary
At the Beginning of the
Usufruct

At the Beginning of Usufruct


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 fulfill the
obligations imposed upon him in accordance with
this Chapter.

At the Beginning of Usufruct


1. To make an inventory
a) Appraisal of the movables
b) Description of the condition of the
immovables

2. To give security / bond

At the Beginning of Usufruct


Not Requisite to Right
Merely to the entry upon possession and
enjoyment of the property
If not complied with, usufruct will still
commence but Art. 586 will apply (on
failure to give security)

Making of Inventory
Sufficient that the owner is notified in
making the inventory
Owner does not attend but discovers
omissions/mistakes: May ask for a
correction but has the burden of
proof
Expenses borne by the usufruct
May be in a private document

Giving of Security
For fulfillment of ALL obligations
imposed upon him as usufructuary
May be personal bond, pledge, or
mortgage

General Exemptions
1. Waived by owner
2. Exemption by title
3. Where usufructuary asks to be
relieved, and no one will be injured
thereby (Art. 585)

If naked owner refuses to grant


exemption
requested,
a
judicial
declaration may be obtained

Additional Exemptions
A. Making of Inventory
1.

Title already makes an inventory

B. Giving of Security
1.

2.

Usufruct is reserved by donor (Art. 584)


Donor who has reserved the property donated; or
Parents who are usufructuaries of their childrens property, except
when parents contract a second marriage

Usufructuary takes possession under a caucion juratoria (Art. 587)


Exceptional circumstance permitted as a matter of common
humanity where a person and his family in need of shelter is allowed
to enjoy the use of the property
Cannot alienate right nor lease property
Made by taking an oath to fulfill properly the duties of a usufructuary

Effect of Failure to Comply


Effect of Failure to Make Inventory
Argentine Code: Prima facie presumption that
the properties were received in good condition
Sanchez Roman: The same as that of the failure
to give security, hence Art. 586 also applicable

Effect of Failure to Give Bond


Art. 586 lists the potestative rights of the owner
Usufructuary who does not possess property
may alienate his right without prejudice to the
right of the transferee to give the required
security

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.
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.

Effect of Filing a Bond


Art. 588: Usufructuary entitled to all
the benefits
Accruing from the time he should
have begun to receive them
Retroactive effect

Obligations of the
Usufructuary
During the Usufruct

During the Usufruct


1. To take care of the thing like a good
father of a family
2. To undertake ordinary repairs
3. To notify owner of need to undertake
extraordinary repairs
4. To pay for annual charges and taxes
on the fruits

During the Usufruct


5. To notify owner of any act
detrimental to ownership
6. To shoulder the costs of litigation
regarding the usufruct
7. To answer for fault or negligence of
alienee,
lessee,
or
agent
of
usufructuary

Take Care of the Thing


Requisites for bringing action (Art. 589):
1. Damage suffered by the property
2. Through fault/negligence of the usufructuary

It is not necessary to wait for the termination of the


usufruct to bring an action to recover the proper
indemnity

Effect of failure (Art. 610)


. By bad use of the thing, causing considerable
injury to the owner

Entitles owner to demand delivery and administration


of the thing
Does not extinguish usufructuary

Undertake Ordinary Repairs (Art.


592)
Requisites of Ordinary Repairs:
1. Deteriorations or defects arise from the
natural use of the thing
2. Repairs necessary for the preservation of
the thing

Usufructuary bound to pay only for the


repairs made during the existence of
the usufruct
. If defects existed already at the time the
usufruct began, owner has obligation

Undertake Ordinary Repairs (Art.


592)
Effect of Renunciation
A. Defects caused
usufructuary

by

fault

of

the

Cannot exempt himself by renunciation

B. Defects caused by ordinary use

May exempt himself from making repairs


after returning the fruits received during
the time the defects took place

C. Defects after renunciation

To be repaired at the expense of owner

Notify Owner of Need to Undertake


Extraordinary Repairs (Arts. 593-594)
Kinds
of
defects/deteriorations
requiring extraordinary repairs
1. Caused by exceptional circumstances
W/N necessary for preservation
2. Caused by natural use, but are not
necessary for its preservation

Notify Owner of Need to Undertake


Extraordinary Repairs (Arts. 593-594)

To be borne by the owner

But usufructuary may not compel owner

Usufructuary also not bound to make such repairs

If need for repairs is urgent (required for


preservation), usufructuary must notify owner
Where owner makes repairs:

He may collect from the usufructuary the legal


interest on the amount invested while usufruct lasts

Where owner does not make repairs:

Usufructuary may make them

Only when necessary for preservation


Entitled to indemnity

Pay for the Annual Charges and


Taxes on the Fruits
Expenses Affecting Fruits
Cultivation, gathering of fruits, feeding cattle,
etc.

To be paid only when they can be


considered as a lien upon the fruits
Include only those levied upon the persons
in possession or enjoyment thereof
Charges for the first and last years divided
with owner in proportion to the periods of
possession

Pay for the Annual Charges and


Taxes on the Fruits

Illustrative Case: Board of Assessment


Appeals of Zamboanga del Sur v.
Samar Mining Company, Inc., 37 SCRA
734, Feb. 27, 1971

BOAA v. Samico
Facts:

Obligations of the
Usufructuary
At the Time of the Termination
of the Usufruct