II F. Usufruct

Question 1

SY: 2. RIGHTS
OF THE USUFRUCTUARY

Answer 1

1. Entitled to all the fruits of the property in usufruct, including share in any hidden treasure found therein by him (Art. 566)
2. Lease the lands or tenements given in usufruct (Art. 568)
3. Alienate his right of usufruct
4. Enjoy any increase which the thing in usufruct may acquire through accession, the servitudes established in its favor and all inherent benefits in general (Art. 571)
5. Right to make useful improvements or expenses for mere pleasure, provided he does not alter the thing’s form or substance. He has no right to be indemnified for the improvements, but he may remove them if no damage will be done to the thing in usufruct. (Art. 579)
6. Right to set-off the improvements he may have made on the property against any damage to the same (Art. 580)
7. Right not to be prejudiced by any works or improvements made by the owner (Art. 595)
8. Right to demand of the owner the increase in value which the property may have acquired at the termination of the usufruct, if he made extraordinary repairs indispensable for the preservation of the thing (Art. 594)
9. In case of specific types of usufruct, the following rights:

a. Over things that, without being consumed, gradually deteriorate – right not to be responsible for ordinary wear and tear (Art. 573)

b. Over consumables – right to consume them and return only their value or equivalent things of the same quality and quantity (Art. 574)

c. Over an action to recover real property, real right or movable property85 – right to oblige the owner to give him the authority for this purpose and to furnish him with whatever proof the owner may have (Art. 578)

d. Over a mortgaged immovable – right not to be obliged to pay the debt for the security of which the mortgage was constituted86 (Art. 600)

Question 2

Sy: Usufruct is extinguished by: (P-L-D-T-E-R-M)
(Art. 603, NCC)

Answer 2

1. Acquisitive Prescription;

NOTE: The use by a third person and not the non-use by the usufructuary. Mere non-use of the usufructuary does not terminate the usufruct. XPN: unless it constitutes renunciation. (Pineda, 2009)

2. Total Loss of the thing;

NOTE: If the loss is only partial, the usufruct continues with the remaining part. (Art. 604, NCC)

3. Death of the usufructuary; GR: Death of the usufructuary generally ends the usufruct since a usufruct is constituted essentially as a lifetime benefit for the usufructuary or in consideration of his person.

XPNs:

a. In the case of multiple usufructs, it ends on the death of the last survivor; (Art. 611, NCC)

b. In case there is a period fixed based on the number of years that would elapse before a person would reach a certain age, unless the period was expressly granted only in consideration of the existence of such person, in which case it ends at the death of said person; (Art. 606, NCC) or

c. In case the contrary intention clearly appears.

4. Termination of right of the person constituting the usufruct;

Question 3

Obligations of the Usufructuary (1)

Answer 3

1. Make an inventory,

EXCEPT when no one will be injured thereby (Arts. 583 & 585)

▪ Failure to make an inventory will not prevent the usufructuary from enjoying the property. But it will give rise to a presumption that the property was received in good condition.

2. Give security,

EXCEPT:

(1) when no one will be injured thereby,
(2) in the case of a donor who has reserved the usufruct of the property donated, and
(3) with respect to parents who are usufructuaries of their children’s property, unless such parents contract a 2nd marriage. (Arts. 583-585)

▪ Failure to give security, in case the usufructuary is bound to give it, will give the owner certain rights, such as he can demand that the immovables be placed under administration and the movables be sold and their proceeds invested in safe securities.

▪ Caucion juratoria – promise under oath given as security by a usufructuary in order to be able to use certain things that are necessary for living and shelter, such as a house, furniture and tools for an industry or vocation (Art. 587)

3. Make ordinary repairs (Art. 592)
4. Notify the owner when the need for extraordinary repairs is urgent (Art. 593)

Question 4

Obligations of the Usufrustuary (2)

Answer 4

5. If he alienates or leases his right of usufruct, he shall answer for any damage which the things in usufruct may suffer through the fault or negligence of the person who substituted him (Art. 590)
6. Pay legal interest on the amount expended by owner for extraordinary repairs, for the time that the usufruct lasts (Art. 594)
7. Pay annual charges and taxes and those considered as a lien on the fruits (Art. 596)
8. Pay debts of owner, when imposed by contract, or the usufruct is made in fraud of creditors (Arts. 598, 758, 759)
9. Notify owner of any act of 3rd persons, of which he may have knowledge, that may be prejudicial to the rights of ownership and be liable for damages, should he not do so (Art. 601)
10. Return the thing upon termination of the usufruct, without prejudice to the right of retention for refund of reimbursable taxes and extraordinary expenses (Art. 612)

Question 5

Classes of Usufruct (1)

Answer 5

1. As to origin:
   a. Legal – Created by law such as usufruct of the parents over the property of their unemancipated children;

NOTE: The right of 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 collective daily needs of the family. (Art. 226. FC)

b. Voluntary – Created by will of the parties either by act inter vivos (e.g., donation) or by act mortis causa (e.g., in a last will and testament); and

c. Mixed/ Prescriptive– Created by both law and act of the person (e.g., acquired by prescription: I possessed in good faith a parcel of land which really belonged to another. Still in good faith, I gave in my will to X, the naked ownership of land and to Y, the usufruct. In due time, Y may acquire the ownership of the usufruct by acquisitive prescription).

2. As to the number of beneficiaries:

a. Simple – If only one (1) usufructuary enjoys the usufruct; or

b. Multiple – If several usufructuaries enjoy the usufruct;
i. Simultaneous – at the same time
ii. Successive – one after theother

NOTE: In case usufructuary is created by donation, apply Art. 756, NCC. If the usufruct is testamentary, apply Rules on Fideicommissary Substitution under Art. 863 and 869, NCC.

Question 6

Classes of Usufruct (2)

Answer 6

3. As to the extent of object:

a. Total – constituted on the wholething b. Partial – constituted only on apart.

4. As to the subject matter:
   a. Over things; or
   i. Normal (or perfect or regular) – involves non-consumable things where the form and substance are preserved; or
   ii. Abnormal (or imperfect or irregular) – involves consumable things – that which involves things which would be useless to the usufructuary unless they are consumed or expanded.

b. Over rights – involves intangible property; rights must not be personal or intransmissible in character so present or future support cannot be an object of usufruct

5. As to the effectivity or extinguishment:

a. Pure – no term or condition;
b. With a term – there is a period which may be either suspensive or resolutory; or

i. Ex die – from a certain day
ii. In diem – up to a certain day
iii. Ex die in diem – from a certain day up to a certain day.

c. Conditional – subject to a condition which may be either suspensive or resolutory

Question 7

Extinguishment of Usufruct (2)

Answer 7

5. Expiration of the period or fulfilment of the resolutory condition;

NOTE: If the usufructuary is a juridical person, the term should not exceed 50 years. (Art. 605, NCC)

6. Renunciation by the usufructuary; and

NOTE: It partakes the nature of a condonation or donation. It can be made expressly or impliedly as long as done clearly. If done expressly, it must conform with forms of donation. Renunciation of usufructuary’s rights is NOT an assignment of right. It is really abandonment by the usufructuary of his right and does not require the consent of the naked owner but it is subject to the rights of creditors. There can be a partial waiver except if it is a universal usufruct. (De Leon, 2006)

7. Merger of the usufruct and ownership in the same person who becomes the absolute owner thereof. (Art. 1275, NCC)

Other causes of termination of usufruct

a. Annulment of the act or title constituting the usufruct;
b. Rescission;
c. Expropriation;
d. Mutual withdrawal;
e. Legal causes for terminating legal usufruct; or
f. Abandonment or dissolution of juridical entity (e.g., corporation) granted with usufruct before the lapse of the period. (Pineda, 2009; Paras, 2008