Usufruct Flashcards
What is usufruct?
Usufruct is a temporary real right which gives a right to enjoy the property as well as its fruits of another with the obligation of preserving its form and substance, unless the title constituting it or the law otherwise provides. [Art. 562, CC]
Usufruct is constituted by?
[PILL: Prescription, Inter vivos acts, Law, Last Will]
- Law
- Will of private persons expressed in acts inter vivos
- Will of private persons expressed in a last will
- Prescription [Art. 563, CC]
Usufruct can be constituted over what?
- The whole or part of the fruits of the thing
2. A right, provided it is not strictly personal or intransmissible. [Art. 564, CC]
What are the kinds of usufruct?
a. usufruct in general
b. legal usufruct
c. voluntary usufruct
d, mixed usufruct
What are the governining laws for the different kind of usufruct?
a. usufruct in general - CC (Arts. 561, 566-612)
b. legal usufruct - Law which created it
c. voluntary usufruct - Act constituting it
d, mixed usufruct - Law on prescription and the extent of use
What is the difference bet. an easement and a usufruct?
Easement:
- May be constituted only on an immovable property
- Not extinguished by the death of dominant owner
- Non-possessory right over an immovable
- Limited to particular or specific use of the servient estate
Usufruct:
-May be constituted on either movable or immovable property
-Extinguished by the
death of usufructuary, unless provided otherwise.
-Involves a right of possession in an immvovable
-Includes all the uses and the fruits of the property
Can there be an easement over a usufruct?
There can be no easement over a usufruct because an easement may be constituted only on corporeal real property.
Can there be a usufruct over an easement?
There can be no usufruct over an easement, because easement cannot exist by itself. The object of usufruct must have an existence of its own separate from the property.
What is the difference between a lease and a usufruct?
Lease:
-Generally covers only a particular or specific use
-Real right only if, as in
the case of a lease over a real property, the lease is registered, or is for more than one year.
Otherwise, it is only a personal right
-Lessor may or may not be the owner (as when
there is sublease or when the lessor is only a usufructuary)
-May be created, as a rule, only by contract and by way of exception by law
-The owner or owner is more or less active
-Lessee generally has no duty for repairs
-Lessee generally pays no taxes
-Lessee cannot constitute a usufruct on the property leased
Usufruct:
- Covers all fruits and uses as a rule
- Always a real right
- Can be created only by the owner or by a duly authorized agent acting in behalf of the owner
- may be created by law, will, contract, last will, or prescription
- Owner is passive
- As the usufructuary has the duty to make ordinary reparis
- Usufructuary pays for the annual charges and taxes on the fruits
- Usufructuary may lease the property to another
What are the objects of usufruct?
Independent Rights
A servitude which is dependent on the tenement to which it attaches cannot be the object of usufruct.
Things
• Non-consumable things: Consumable things, but only as to their value if appraised, or on an equal quantity and quality if they were not appraised.
• Unproductive things: e.g. sterile or absolutely unproductive land, or things for mere pleasure, such as promenades, statues or paintings, even if they do not produce any utility.
What are the characteristics of a usufruct?
a. It is a real right;
b. Of temporary duration;
c. The purpose is to derive all advantages from the thing due to normal exploitation.
What are the Natural Characteristics of a Usufruct?
a. Includes jus abutendi, jus utendi, jus fruendi and jus possidendi and jus vindicandi. The only thing left with the grantor of the usufruct is the jus disponendi.
b. Usufructuary must preserve the form or substance of the thing.
c. Preservation is a natural requisite, not essential because the title constituting it or the law may provide otherwise.
d. Usufruct is extinguished by the death of the usufructuary.
e. Natural because a contrary intention may prevail.
What are the reasons for the the preserving form and substance of the object of the usufruct?
Reasons for preserving form and substance
a. To prevent extraordinary exploitation;
b. To prevent abuse, which is frequent;
c. To prevent impairment.
Exception: In an abnormal usufruct, alteration is allowed.`
`What is the exeption to the rule that the object of the usufruct’ form and substance must be preserved
Exception: In an abnormal usufruct, alteration is allowed.
What are the classifications of usufructs as to manner of creation?
a. Voluntary: created by the will of private persons
b. Legal: as provided by law.
c. Mixed: created both by law and the acts of persons, i.e. by acquisitive prescription. The rights and duties of the usufructuary provided by law may be modified or eliminated by the parties. If the usufructuary is authorized to alienate the thing in case of necessity, it is the usufructuary who determines the question of necessity
What is an example of a legal usufruct?
Usufruct of parents over the property of unemancipated children. (now limited to the collective daily needs of the family) [Art. 226, CC]
How is a Voluntary Usufruct created?
Voluntary: created by the will of private persons
- By act inter vivos– such as contracts and donations:
- By donation of the usufruct;
- By retention of the usufruct by donor;
- Where a usufruct is constituted inter vivos and for valuable consideration, the contract is unenforceable unless in writing;
- By act mortis causa – such as testament
What are the classification of usufruct as to number of beneficiaries?
a. Simple: only one usufructuary enjoys the property
b. Multiple: several usufructuaries enjoy the property as co-usufructuaries.
c. Simultaneous: at the same time.
d. Successive: one after the other.
What are the limitations on Successive usufructs?
- If by donation, ALL donees must be alive. [Art. 756, CC]
- Fiduciary and the second heir must be alive at the time of the death of the testator. [Art. 863, CC]
- If by testamentary succession, there must be only 2 successive usufructuaries, and both must be alive or at least already conceived at the time of the testator’s death and later born alive. [Art. 869, CC]
What are the classification of usufructs as to the object of usufruct?
Rights: Must not be strictly personal or intransmissible.
Things
a.Normal: involves non-consummable things where the form and substance are preserved. Abnormal or b.irregular: when the usufruct includes things which cannot be used in a manner appropriate to its nature without being consumed.
Quasi-usufruct [Art. 574, CC Includes things which cannot be used without being consumed. Money may be the object of usufruct. [Alunan v. Veloso, G.R. No. 29158 (1928)]
What are the classification of usufruct as to effectivity?
a. Pure – without term or condition
b. With a term – with a period, which may either be suspensive (from a certain day) or resolutory (to a certain day)
c. Conditional – subject to a condition which may either be suspensive (from a certain event) or resolutory (until a certain event)
What are the classification of usufructs as to the extent of the usufruct?
As to fruits:
a. Total: all consumed by the usufruct.
b. Partial: only on certain aspects of the usufruct’s fruits.
As to object:
a. Singular: only on particular property of the owner.
b. Universal: pertains to the usufruct over universal property, i.e. over an entire patrimony, a while inheritance of a compulsory heir, a dowry;
What are the rights of the usufructuary?
a. Right to the thing
b. Right to the fruits
c. Right to lease the thing
d. Right to improve the thing
e. Right of Retention
f. Right to mortgage or alienate the right of usufruct
What are the obligations of the usufructuary?
a. To make inventory
b. To give a bond for faithful performance of duties as usufructuary
c. To take care of the thing
d. To undertake ordinary repairs
e. To notify owner of need to undertake extraordinary repairs
f. To pay annual charges and taxes on the fruits.
g. To shoulder costs of litigation
h. To deliver the thing in usufruct to the owner in the condition received.
What is included in the usufructuary’s right to the thing and its fruits?
SER3IAL: Set-off, Enjoy, Receive, Remove, Retain, Improve, Accession, Lease]
a. To enjoy the property personally [Art. 572, CC]
b. To receive the fruits of the property [Art. 567, CC]
What fruits belong to the usufructuary?
Fruits pending at the beginning of the usufruct
To whom does fruits pending at the termination of the usufruct belong?
Belong to the naked owner
What are the rules re. fruits pending at the beginning of the usufruct?
- Belong usufructuary
- Without need to reimburse the expenses to the owners
-Without prejudice to the right of 3rd persons e.g. if the fruits arose by building,
planting,
sowing by a possessor in good faith, the pending crop expenses of cultivation and of the net harvest and charges shall be prorated between said possessor and the usufructuary in proportion to the time of possession [Art. 545, CC]
N.B. In the case of civil fruits, no need to prorate, as civil fruits accrue daily [Art. 544, CC]
What are the rules on fruits pending at the termination of the usufruct?
- Belong to the naked owner
- The owner shall reimburse to the usufructuary ordinary cultivation expenses from the proceeds of the fruits (not to exceed the value of the fruits)
- Rights of innocent 3rd parties should not be prejudiced.
What are the usufructuary’s right to civil fruits?
Right to Civil fruits – deemed to accrue daily, and belong to the usufructuary in proportion to the time the usufruct may last. [Art. 569, CC]
Article 569. Civil fruits are deemed to accrue daily, and belong to the usufructuary in proportion to the time the usufruct may last. (474).
What is the special rule as to Usufruct on Rent, Pension or Interest?
Whenever a usufruct is constituted on the right to receive a rent or periodical pension, whether in money or in fruits, or in the interest on bonds or securities payable to bearer, each payment due shall be considered as the proceeds or fruits of such right. [Art. 570 par. 1, CC]
What is the special rule as to benefits from enterprise with no date fixed for distribution?
Whenever it consists in the enjoyment of benefits accruing from a participation in any industrial or commercial enterprise, the date of the distribution of which is not fixed, such benefits shall have the same character. [Art. 570 par. 2, CC]
What is the special rule for a usufruct over a co-owned property?
To exercise all rights of the particular co-owner with respect to the administration and collection of fruits/interests from the alicot share of property [Art. 582, CC]
Should co-ownership cease by reason of partition, the usufruct of the part allotted to the co-owner shall still belong to the usufructuary.
What are the general rule re. the right of the usufructuary to lease the thing in usufruct?
General Rules:
a. Can be leased without consent of owner.
b. The period of the lease is co-extensive with the period of usufruct.
What are the exceptions to the rule that the ‘usufructuray can lease the thing in usufruct without the consent of the owner’?
- Caucion Juratoria, wherein the lease would show that the property is not needed by the usfructuary and therefore the use for which the usufruct was constituted is changed.
- Condition imposed by naked owner i.e. Usufruct is purely personal, e.g. title creating usufruct provides that usufructuary shall personally use and enjoy the property given in usufruct.
- Legal usufructs cannot be leased
What is the exception to the rule that ‘the period of lease is co-extensive with the period of usufruct’?
Exception: Lease of rural lands will subsist during the agricultural year despite expiration of the usufruct [Art. 572, CC]
Who has the right to choose the tenant re lease of the thing in usufruct?
It is the usufructuary and not the naked owner who has the right to choose the tenant. [Fabie v. Gutierrez David, G.R. L-123 (1945)].
What happens to a lease but the usufructuary before teh termination of the usufruct and subsisting after the termination of the usufruct?
What about the rents?
A lease executed by the usufructuary before the termination of the usufruct and subsisting after the termination of the usufruct must be respected, but the rents for the remaining period will belong to the owner.
If the usufructuary has leased the lands or tenements given in usufruct, and the usufruct should expire before the termination of the lease, he or his heirs and successors shall receive only the proportionate share of the rent that must be paid by the lessee. [Art. 568, CC]
Is a lease created by the owner before the usufruct estinguished by the usufruct?
NO.
A lease executed by the owner before the creation of the usufruct is not extinguished by such usufruct
Can future crops be sold by the usufructuary?
YES.
Future crops may be sold but such sale would be void if usufruct terminates prior to harvest of future fruits. The buyer’s remedy is to recover from the usufructuary.
Who is liable for the act of the substitute?
The usufructuary-lessor is liable for the act of the substitute.
A 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. [Art. 590, CC]
What is the right of the usufructuary to enjoy any increase in the thing may acquire through accession?
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, in general, all the benefits inherent therein. (479)
What is the right of the usufructruary to make improvements on the property as he may deem proper?
a. He may improve the thing without altering its form and substance.
b. He is not entitled to indemnification.
c. He may also remove improvements made by him if it is possible to do so without damage to property.
d. The usfuructuary has the right to set-off the imrpvoements on the property against any damage to the same [Art. 580]
