Usufruct

3 Fundamental Rights of Ownership:

1. Jus Disponendi – right to dispose
2. Jus Utendi – right to use
3. Jus Fruendi – right to fruits.
Usufruct – (jus utendi) right to use + (jus fruendi) right to fruits.
Full Ownership = Naked Ownership + Usufruct
Usufruct is the right to enjoy the property of another, with the obligation of preserving its form and
substance, unless the title constituting it or the law provides otherwise.
Essential Characteristics:
1. Real right (whether registered or not)
2. Temporary in nature
3. Purpose is to enjoy the benefits and derive all advantages from the object as consequence of
normal use or exploitation.
Natural Characteristics – ordinarily present but contrary stipulation can eliminate it.
1. Obligation to conserve or preserve the form and substance of the thing.
Accidental Characteristics – those may be present or absent depending upon stipulation.
1. Number of years it will exists
2. In favor of one person or several
3. Whether pure or conditional usufruct.
Reasons for Conserving Form and Substance: To prevent AEI
1. Abuse
2. Extraordinary Exploitation
3. Impairment.
Objects of Usufruct:
1. Real or personal Property
2. Sterile or productive.
3. Created over a right, not personal nor intransmissible (but no usufruct over easement).
Rights of Action Available to Usufructuary:
1. Action to protect the usufruct itself.
2. Action to protect the exercise of the usufruct.
Usufruct vs Easement

USUFRUCT EASEMENT

The object is real or personal property Only real property

ALL uses and fruits Limited to particular use (like right of way)
 Cannot be constituted on an Can be constituted in favor of a piece of land in usufruct
easement

Extinguished by Death Not extinguished by death of the owner of dominant estate

Both are Real rights

Both may be registered if usufruct involves real property

May ordinarily be alienated or transmitted

Usufruct vs Lease

Usufruct Lease

Extent All fruits and uses Only particular use

Nature Real right Real right only if over real property

and (1) registered or (2) more than
1 year; otherwise, it is personal
right.

Creation Created only by the owner Lessor may or may not be the
owner

Origin Law, contract, last will, or Only by contract and in implied

prescription new lease

Cause Owner is Passive and allows Owner is Active and makes the
usufructuary to enjoy the thing lessee enjoy

Repairs Usufructuary has the duty Lessee generally has no duty to

pay for repairs

Taxes Usufructuary pays for the annual Lessee generally pays no taxes.
charges and taxes on fruits

Other things Usufructuary may lease the Lessee cannot constitute usufruct
property itself on leased property.

Classification as to Origin:
1. Legal – created by law (parents over property of unemancipated children)
2. Voluntary or Conventional – created by will of the parties inter vivos or created mortis causa.
3. Mixed or Prescription – created by both law and act of a person.
Usufruct over real property – real right and must be registered to bind 3rd persons.
As to Fruits: Total or Partial
As to Object: Universal (entire patrimony) or Singular or Particular (only individual things are
included).
Simple: only one usufructuary enjoys.
Multiple: several usufructuaries enjoy.
1. Simultaneous – at the same time.
 2. Successive – one after the others.
Usufruct over Rights: Not personal and not intransmissible rights.
Normal Usufruct: non-consummable things where the form and substance are preserved.
Abnormal Usufruct: consumable property like vinegar or money. Also called quasi-usufruct (furniture
or automobile)
Usufruct According to Terms or Conditions:
1. Pure usufruct – no terms or condition
2. With a term or period
3. Conditional
Rules governing rights and obligations:
1. Agreement of the Parties or the Title giving the usufruct.
2. Civil Code

Rights of Usufructuary

1. Natural, Industrial, and Civil Fruits

2. No right to Hidden Treasure.

3. Pending fruits at the beginning of the No obligation to refund owner for expenses
usufruct. incurred.

4. Proportionate share of the rent that

must be paid by the lessees if
usufructuary leases the property and
the usufruct expired before termination
of lease.

5. Right to choose the tenant.

6. Right to enjoy any increase which the

thing may acquire through Accessions,
Servitude, or Easement

7. Right to Personally Enjoy the Usufruct.

8. Right to Lease the thing to another

(terminates upon expiration except rural
lands subsisting during agricultural
year)

9. Right to alienate his right of Usufruct.

10. Right to use Deteriorating Things Obliged only to return in their condition at the
(deteriorate through wear and tear) time of termination.
Obligation to indemnify in case of fraud or
negligence.
11. Right to use Consumable Things Obligation to:
(included in usufruct)
a. Pay the appraised value.
b. If not appraised, (i) return the same quantity
and quality or (ii) pay current price at the time
the usufruct ceases.

12. Right to use Dead Trunks of Fruit Obligation to replace them with new plants.
Bearing Trees
13. Accident: Right to use cut off or
uprooted Trees by Accident in Fruit
Bearing Trees.
14. Calamity: Right to leave dead, fallen, or
uprooted trunks at the disposal of the
owner if there is calamity or
extraordinary event that made
considerable number of trees or shrubs
disappear, making impossible or
burdensome to replace them.
15. Calamity: Right to Demand removal
and clearing of land by owner.
16. Right to ordinary cutting of timber from
woodland following the
a. habit or practice of owners;
b. and in default, customs of the
place (as to manner, amounts,
season)
c. in default thereof, only to
restore or improve the things in
usufruct but inform first the
owner of the necessity.

17. Special Usufruct of Action to Recover

1. Right to demand authority to
bring the action (usually SPA)
2. Right to demand proofs needed
for recovery.

18. Right to make useful and luxurious Obligation not to alter the form or substance of
improvements the thing
19. Right to remove useful or luxurious
improvements if no substantial damage
20. Right to Set-off against damages.
(a) damage is caused by usufructuary
(b) improvements must have
augmented the value of property.

21. Right of Usufructuary of Co-owned thing

to Administration and collection of fruits
 or interest

Rights of Naked Owner

1. Pending fruits at the termination of the usufruct.
a. Obligation to Reimburse ordinary cultivation expenses.
2. Alienate the property with Obligation not to alter the form or substance or anything prejudicial
to usufructuary.

Obligation of Usufructuary:
1. Before entering upon enjoyment of the property
a. Obligation to make inventory after notice to the owner.
i. appraisal of movables and
ii. description of conditions of immovable
b. Obligation to give security
i. Exceptions to Security:
1. Donor who reserved the usufruct of the property donated.
2. Parents who are usufructuaries of their children’s property except
when parents contracted 2nd marriage.
c. Exception to both obligations: When excused by the owner and when no one will be
injured thereby.
2. Naked Owner’s Right if the Usufructuary Failed to Give Security

a. Right to Deliver the Property to

the Usufructuary

b. Right to Demand Immovables

to be placed under
Administration.

c. Right to Demand Movables to Right of usufructuary to the

be sold. legal interest on cash
proceeds of sale.

d. Right to Conversion or Deposit

of Credit Instruments: to
demand that Public Bonds,
Instruments of Credit Payable to
Order or to Bearer be converted
into registered certificates or
deposited in a bank or public
institution

e. Right to Investment of Cash or

Profits: to demand that the
 capital or sums in cash and the
proceeds of the sale of the
movable property be invested in
safe securities

f. Right of Retention as Right of usufructuary to the

Administrator. net proceeds after deducting
administration expenses.
3. Caucion Juratoria – promise under oath.
a. Proper Court petition.
b. Necessity for delivery of furniture (use), implements (industry/vocation), or house
(living) included in the usufruct.
c. Approval of the court.
d. Sworn Promise
4. Naked Owner has right not to sell certain articles.
5. Rights After Security: Usufructuary has
a. Right to All Proceeds and Benefits Retroactive to the day of commencement to
receive them.
b.
6. Liable to the fault or negligence of substitute.
7. Replace the young that die each year from natural causes or due to rapacity of beasts of
prey.
1.