Title VI.

USUFRUCT
Chapter 1 Usufruct in General Chapter 2 Rights of the
Usufructuary Chapter 3 Obligations of the Usufructuary Chapter
4 Extinguishment of Usufruct
Articles 562 to 612
Art. 562
• Usufruct gives a right to enjoy the property of another
with the obligation of preserving its form and substance,
unless the title constituting it or the law otherwise
provides.
• What are the two fundamental rights given in
usufruct?
• What is naked ownership?
• Jus utendi & jus fruendi
• Jus disponendi
Art. 563 number 3
• Usufruct is constituted by law, by the will of private
persons expressed in acts inter vivos or in a last will
and testament, and by prescription.
• What are the three types of usufruct according to
origin? Or How is a usufruct made?
Art. 564
• Usufruct may be constituted 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.
• What is the classification of usufruct according to
quantity?
• According to the number of persons enjoying it?
• According to quality?
• As to fruits: total or partial
• As to object: universal or particular
• Simple: one enjoys
• Multiple: simultaneous by several; successive by several
• Normal: non-consumable
• Abnormal: consumable
Art. 565
• The rights and obligations of the usufructuary shall be
those provided in the title constituting the usufruct; in
default of such titled, or in case it is deficient, the
provisions contained in the two following Chapters
shall be observed.
Rules in Usufruct
• How are rules in usufruct applied?
• In case of conflict, what rules apply?
• Apply the agreement of the parties first.
• In case the agreement is not clear or absent, apply the
Civil Code.
• In case of conflict, apply agreement unless against
public policy, etc.
Art. 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.
Rights to fruits
• Give examples of natural, industrial and civil fruits of
property.
• How much will a usufructuary get if he finds hidden
treasure inside the property in usufruct?
• 1⁄2 if he is the finder
What is the nature of dividends?
Are dividends considered civil fruits
for the benefit of the usufructuary?
[Bachrach v Siefert, 87 Phil 483]
• When dividends were declared on the shares of stock,
the wife of the deceased, who was the usufructuary of
the estate, claimed the dividends. The sisters of the
deceased, how inherited portions of the estate,
demanded that the dividends be considered part of the
estate.
• Dividends based on stocks are civil fruits and do not
form part of the estate.
Art. 567
• Natural or industrial fruits growing at the time the
usufruct begins, belong to the usufructuary.
• Those growing at the time the usufruct terminates,
belong to the owner.
• In the preceding cases, the usufructuary, at the
beginning of the usufruct, has no obligation to refund
to the owner any expenses incurred; but the owner
shall be obliged to reimburse at the termination of the
usufruct, from the proceeds of the growing fruits, the
ordinary expenses of cultivation, for seed, and other
similar expenses incurred by the usufructuary.
• The provisions of this article shall not prejudice the
rights of third persons, acquired either at the beginning
or at the termination of the usufruct.
Pending natural or industrial
fruits
Beginning of the usufruct
• Belong to the usufructuary
• No need to refund owner for expenses incurred
• Without prejudice to 3rd persons
Termination of the usufruct
• Belong to the owner
• Owner must reimburse ordinary cultivation expenses
+ seeds; similar expenses from the proceeds of the
fruits
• Without prejudice to 3rd persons
Art. 568
• 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.
Usufruct and lease
• A gave land in usufruct to B for 4 years. B leased the
land to C for 8 years. Who is entitled to the rentals?
• B is entitled to the rentals for 4 years.
• A is entitled to the rentals beginning on the 5th year
up to the 8th year.
Difference between Usufruct and
Lease - Paras pp. 574-575
Basis USUFRUCT LEASE
extent All fruits and uses Particular or specific use
Nature of right Real right Real right if real property is registered; or
more than 1 yr
creator Owner or authorized agent Lessor may or may not be the owner
origin By law, contract, last will or prescription By contract; by law as an implied
lease –
builder in good faith – art 448
Difference between Usufruct and
Lease - Paras pp. 574 - 575
Basis USUFRUCT LEASE
cause Passive owner allows enjoyment Active lessor makes lessee enjoy
repairs Usufructuary makes ordinary repairs Lessee generally has no duty to pay
for
repairs
taxes Usufructuary pays annual charges and
taxes on the fruits
Lessor generally pays no taxes
things Usufructuary may lease to another Lessee cannot constitute a usufruct on
leased property
Art. 569
• Civil fruits are deemed to accrue daily, and belong to
the usufructuary in proportion to the time the usufruct
may last.
Art. 570
• 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.
• 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.
• In either case they shall be distributed as civil fruits,
and shall be applied in the manner prescribed in the
preceding article.
Civil fruits
• If civil fruits accrue daily, how much is a
usufructuary entitled to with respect to civil fruits?
• In proportion to the time the usufruct lasts.
• A gave to B in usufruct the profits of a factory for 10
years. B died at the end of 5 years.
• Profits: 1st to 5th yr = 80 million; 6th to 10th yr = 40
million.
• How much is B and his heirs entitled to?
• 60 million
Art. 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.
Increase in the Thing
• What else can a usufructuary enjoy other than fruits?
• Accessions
• Servitudes and easements
• All benefits in the property
Art. 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.
Lease or alienate right of
usufruct
• Can the usufructuary lease the property in usufruct
without the consent of the owner?
• Is there a limit to the alienation of the right of
usufruct?
• Usufructuary does not need the consent of the owner
to lease the property.
• Legal usufruct cannot be alienated.
Who has the right to choose the
tenant who will pay the rent, the
estate administrator or the
usufructuary? [Fabie vs. David]
• Grey was the administrator of the property but Fabie
was the usufructuary. Fabie leased the property to
David. When David violated the lease conditions,
Fabie filed an action for unlawful detainer. Grey
intervened and insisted that Fabie has no right to file
the action as usufructuary, because Grey, as
administrator, has that right.
• Fabie as usufructuary has the right to administer and
manage the property, collect the rents and make
necessary repairs. This includes the right to select the
tenant.
Art. 573
• Whenever the usufruct includes things which, without
being consumed, gradually deteriorate through wear
and tear, the usufructuary shall have the right to make
use thereof in accordance with the purpose for which
they are intended, and shall not be obliged to return
them at the termination of the usufruct except in their
condition at that time, but he shall be obliged to
indemnify the owner for any deterioration they may
have suffered by reason of his fraud or negligence.
Deterioration & Liability
• If the thing gradually deteriorates through wear and
tear, what is the obligation of the usufructuary?
• Should the usufructuary re- varnish a dining set after
using it for 5 years?
• Right to make use according to purpose; not obliged to
return them except in their condition upon termination
of usufruct.
• Not obliged to re-varnish except if the damage is
caused by fraud or negligence. – Left outside in the
wind and rain when owner put them inside the house.
Art. 574
• Whenever the usufruct includes things which cannot
be used without being consumed, the usufructuary shall
have the right to make use of them under the obligation
of paying their appraised value at the termination of the
usufruct, if they were appraised when delivered. In
case they were not appraised, he shall have the right to
return the same quantity and quality, or pay their
current price at the time the usufruct ceases.
Quasi-usufruct
• What is a quasi- usufruct?
• Give an example
• How else can you refer to a quasi-usufruct?
• The thing in usufruct is consumable. When the
usufruct ends, the usufructuary must pay the appraised
value to the owner.
• Money may be the object of usufruct.
• A quasi-usufruct is a SIMPLE LOAN.
Art. 575
• The usufructuary of fruit-bearing trees and shrubs
may make use of the dead trunks, and even those cut
off or uprooted by accident, under the obligation to
replace them with new plants.
Special Usufruct: Fruit-bearing
trees & shrubs
• Can dead trunks and trees cut off or uprooted by
accident be used by the usufructuary?
• Provided they are replaced with new plants by the
usufructuary
Art. 576
• If in consequence of a calamity or extraordinary
event, the trees or shrubs shall have disappeared in
such considerable number that it would not be possible
or it would be too burdensome to replace them, the
usufructuary may leave the dead, fallen or uprooted
trunks at the disposal of the owner, and demand that
the latter remove them and clear the land.
Calamity or Extraordinary
Event
• A is a usufructuary of trees and shrubs owned by B.
Due to typhoon Ondoy, many of the trees and shrubs
disappeared or were destroyed.
• What are A’s rights and obligations?
• If it is impossible or too burdensome to replace; A
may use the trunks but replace them with new plants;
or leave them and demand from the owner to remove
them.
• If slightly burdensome to replace; A must replace
them and cannot demand from B to clear the land.
Art. 577
• The usufructuary of woodland may enjoy all the benefits
which it may produce according to its nature.
• If the woodland is a copse or consists of timber for
building, the usufructuary may do such ordinary cutting or
felling as the owner was in the habit of doing, and in default
of this, he may do so in accordance with the custom of the
place, as to the manner, amount and season.
• In any case the felling or cutting of trees shall be made in
such manner as not to prejudice the preservation of the land.
• In nurseries, the usufructuary may make the necessary
thinning in order that the remaining trees may properly grow.
• With the exception of the provisions of the preceding
paragraphs, the usufructuary cannot cut down trees unless it
be to restore or improve some of the things in usufruct, and
in such case he shall first inform the owner of the necessity
of the work.
Special usufruct:
Woodland
• What is a copse?
• What is the limitation on this usufruct?
• Thicket of small trees.
• Regalian doctrine; requirement of license or permit
from DENR
Woodland
• A is the usufructuary of a parcel of land belonging to
B, who without the knowledge of A, cut the coconut
lands inside the land and made them into charcoal and
coco lumber for sale. Can be invoke Art. 577 on the
special usufruct of woodland?
• Coconut trees are not commonly used for timber to
build? – Paras p. 596.
Art. 578
• The usufructuary of an action to recover real property
or a 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.
Special usufruct: recovery
by court action
• What properties may be recovered by the special usufruct
thru court action?
• What does a usufructuary need from the owner?
• Can third parties be affected?
• Who gets the recovered property?
• Real property, personal property, real right over real
or personal property.
• Authority to bring the action – SPA; and
proofs/evidence
• Third parties affected only if usufruct is registered or
known to them.
• Naked owner gets ownership but usufructuary gets
usufruct
Art. 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.
Useful improvements &
luxury
• What are the limitations when useful improvements
and luxury are made?
• Form or substance must not be altered (art. 581)
• Usufructuary is not entitled to REFUND but may
REMOVE if no substantial damage to property or
OFFSET against damages
Is the usufructuary entitled to
reimbursement of useful
improvements? [Floreza vs.
Evangelista]
• Evangelista borrowed money from Floreza. They
allowed Floreza to build a barong-barong on their
property for free. Eventually Floreza built a house of
strong materials. After several loans, Evangelistas sold
the lot to Floreza as payment of their loans, but
redeemed the lot. After redemption, Evangelista wrote
Floreza to vacate the lot. Floreza refused until he is
reimbursed of the value of the house.
• Floreza is a usufructuary (art. 579) who made useful
improvements with no right to be indemnified.
Art. 580
• The usufructuary may set off the improvements he
may have made on the property against any damage to
the same.
Improvements:Damages
• If exceeds the reimbursement?
the usufructuary improvement
the damage, demand can
• If improvement, owner compensation? the damage
demand
exceeds can the
the
• What set-off is can required be made?
before a
• Usufructuary cannot demand reimbursement if the
improvement exceeds the damage.
• Owner can demand compensation for the difference if
the damage exceeds the improvement.
• Usufructuary caused the damage; the improvements
increased the value of the property
Art. 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.
Art. 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.
Partition
• Can a co-owner give the usufruct of his share in the
property without the consent of his co-owners?
• If there is a partition, what is the right of the usufruct
relative to the co-owner/grantor?
• Can the co-owners make a partition without the
consent of the usufructuary?
• A co-owner does not need the consent of his co-
owners to give the usufruct of his share, unless there
are personal considerations.
• Usufruct follows the share.
• Not being a co-owner, the usufructuary has no right
to intevene in the partition of co- owned property
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 fulfil the obligations
imposed
upon him in accordance with this Chapter.
Obligations
• What are the obligations of the usufructuary?
• Before
• During
• after
• Before – make an inventory
• During – take care of the property
• After – return and indemnify, if needed
Art. 584
• The provisions of No. 2 of the preceding article shall
not apply to the donor who has reserved the usufruct of
the property donated, or to the parents who are
usufructuaries of their children’s property, except when
the parents contract a second marriage.
Art. 585
• The usufructuary, whatever may be title of the
usufruct, may be excused from the obligation of
making an inventory or of giving security, when no one
will be injured thereby.
Exception - security
• Why is a donor, or parents, exempted from giving the
security for a usufructuary?
• What are the exception to the exception?
• Are there other exceptions?
• Donor gave the usufructuary as a gift.
• When the parent contracts another marriage.
• When no one will be injured
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 immovable 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
movable and that on public securities and bonds, and
the proceeds of the property placed under
administration, shall belong to the usufructuary.
Art. 586, continued
• 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.
Failure to give security
Naked owner
• May deliver the property
• May choose to retain the property as administrator
• May demand receivership or administration by
another
Usufructuary
• Cannot possess the property
• Cannot administer the property; cannot lease
• Cannot collect credits that have matured, or invest
them unless naked owner consents or court allows
• May alienate right of usufruct
Art. 587
• If the usufructuary who has not given security claims,
by virtue of a promise under oath, the delivery of the
furniture necessary for his use, and that he and his
family be allowed to live in a house included in the
usufruct, the court may grant this petition, after due
consideration of the facts of the case.
• The same rule shall be observed with respect to
implements, tools and other movable property
necessary for an industry or vocation in which he is
engaged.
• If the owner does not wish that certain articles be sold
because of their artistic worth or because they have a
sentimental value, he may demand their delivery to
him upon his giving security for the payment of the
legal interest on their appraised value.
Caucion juratoria
• What is caucion juratoria?
• What are the requirements?
• “a promise under oath” – a sworn duty to take good
care of the property and return it at the end of the
usufruct.
• Court petition
• Necessity for delivery
• Court approval
• Sworn promise
• Usufructuary cannot afford to give security
Arts. 588, 589 & 590
• Art. 588. After the security has been given by the
usufructuary, he shall have a right to all the proceeds
and benefits from the day on which, in accordance with
the title constituting the usufruct, he should have
commenced to receive them.
• Art. 589. The usufructuary shall take care of the
things given in usufruct as a good father of a family.
• Art. 590. 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.
• What is the effect of the security when it is given?
• What kind of diligence is required?
• Is the usufructuary liable for the damages caused by
his representatives?
• What is a sub-usufructuary?
• Retroactive
• Pater familias or good father of a family
• Liable for the fault or negligence of his alienee,
grantee, agent, or lessee
Art. 591
• If the usufruct be constituted on a flock of
livestock, the usufructuary shall be obliged to
replace with the young thereof the animals that
die each year from natural causes, or are lost
due to the rapacity of beasts of prey.
• If the animals on which the usufruct is
constituted should all perish, without the fault of
the usufructuary, on account of some contagious
disease or any other uncommon event, the
usufructuary shall fulfil his obligation by
delivering to the owner the remains which may
have been saved from the misfortune.
• Should the herd or flock perish in part, also by
accident and without the fault of the
usufructuary, the usufruct shall continue on the
part saved.
• Should the usufruct be on sterile animals, it
shall be considered, with respect to its effects, as
though constituted on fungible things.
Art. 592
• The usufructuary is obliged to make the
ordinary repairs needed by the thing given in
usufruct.
• By ordinary repairs are understood such as are
required by the wear and tear due to the natural
use of the thing and are indispensable for its
preservation. Should the usufructuary fail to
make them after demand by the owner, the latter
may make them at the expense of the
usufructuary.
Ordinary Repairs
• What are the conditions for ordinary repairs to
be made?
• Can a usufructuary exempt himself from
necessary repairs by renouncing the usufruct?
• Required by normal or natural use.
• Needed for preservation.
• Occurred during the usufruct.
• With or without the fault of the usufructuary.
• If no fault, yes, but he must surrender the fruits
he received.
Art. 593
• Extraordinary repairs shall be at the expense of
the owner. The usufructuary is obliged to notify
the owner when the need for such repairs is
urgent.
Art. 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.
Extraordinary repairs
• Who should make extraordinary repairs?
• What is the right of the usufructuary if he
makes the extraordinary repairs?
• Naked owner makes the extraordinary repairs.
• Usufructuary may demand legal interest on the
amount; but should have notified the naked
owner of urgency and naked owner failed to
make them; needed for preservation.
Art. 595
• The owner may construct any works and make
any improvements of which the immovable in
usufruct is susceptible, or make new plantings
thereon if it be rural, provided that such acts do
not cause a diminution in the value of the
usufruct or prejudice the right of the
usufructuary.
• What may the naked owner do even if the
property is already given in usufruct?
• Construct works
• Make improvements
• Make new plantings
Art. 596
• The payment of annual charges and taxes and
of those considered as a lien on the fruits, shall
be at the expense of the usufructuary for all the
time that the usufruct lasts.
Payables
• What are the payables of a usufructuary?
• Annual charges on the fruits
• Annual taxes on the fruits
• Annual taxes on the land
Art. 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 suns have
been advanced by the usufructuary, he shall recover the
amount thereof at the termination of the usufruct.
• Who pays the taxes imposed directly on the
capital?
• The naked owner pays the taxes on the capital,
such as estate tax; not annual taxes.
Art. 598
• If the usufruct be constituted on the whole of a
patrimony, and if at the time of its constitution
the owner has debts, the provisions of Articles
758 and 759 relating to donations shall be
applied, both with respect to the maintenance of
the usufruct and to the obligation of the
usufructuary to pay such debts.
• The same rule shall be applied in case the
owner is obliged, at the time the usufruct is
constituted, to make periodical payments, even
if there should be no known capital.
Debts of the naked
owner
• When does art. 598 apply? • If the usufruct is a
universal
one – all of the property
• And the naked owner has debts or is obliged to
make periodical payments.
Art. 599
• The usufructuary may claim any matured
credits which form a part of the usufruct if he
has given or gives the proper security. If he has
been excused from giving security or has not
been able to give it, or if that given is not
sufficient, he shall need the authorization of the
owner, or of the court in default thereof, to
collect such credits.
• The usufructuary who has given security may
use the capital he has collected in any manner
he may deem proper. The usufructuary who has
not given security shall invest the said capital at
interest upon agreement with the owner; in
default of such agreement, with judicial
authorization; and, in every case, with security
sufficient to preserve the integrity of the capital
in usufruct.
Matured credit
• When is the approval of the court required?
• If the credit is collected, who gets the credit?
• If there is no security ro when there was only a
caucion juratoria.
• The naked owner gets the credit.
Art. 600
• The usufructuary of a mortgaged immovable
shall not be obliged to pay the debt for the
security of which the mortgage was constituted.
• Should the immovable be attached or sold
judicially for the payment of the debt, the owner
shall be liable to the usufructuary for whatever
the latter may lose by reason thereof.
Mortgaged immovable
• Who pays the debt for the security of the
mortgaged property?
• The naked owner must pay.
Art. 601
• The usufructuary shall be obliged to notify the
owner of any act of a third person, of which he
may have knowledge, that may be prejudicial to
the rights of ownership, and he shall be liable
should he not do so, for damages, as if they had
been caused through his own fault.
Notice to owner
• When should a usufructuary notify the naked
owner?
• Third party commits acts prejudicial to the
rights of ownership
• Urgent repairs are needed
• An inventory is to be made.
Art. 602
• The expenses, costs and liability in suits
brought with regard to the usufruct shall be
borne by the usufructuary.
Cost of suits
• Who pays the cost of suits and liabilities with
regard to the usufruct?
• The usufructuary pays the costs and liabilities
in suits with regard to the usufruct.
Art. 603 – Usufruct is
extinguished:
1) By the death of the
usufructuary, unless a contrary intention clearly
appears; 2) By the expiration of the period for which it
was constituted or by the fulfilment of any resolutory
condition provided in the title creating the usufruct; 3)
By merger of the usufruct and
ownership in the same person;
4) By renunciation of the
usufructuary; 5) By the total loss of the thing
in usufruct; 6) By the termination of the
right of the person constituting the usufruct; 7) By
prescription.
Is the “transfer of material
possession” equivalent to usufruct?
[Baluran v Navaro]
• Bartered properties exchanged the material
possession of two lots by two owners. The
inclusion of a resolutory condition gives the
parties knowledge that should this condition
happen, the agreement for the exchange of the
possession and use of the property is deemed
terminated.
• Useful improvements may be removed without
injury to the property, but the usufructuary is
not entitled to reimbursement.
Is the act of claiming ownership of
land by registration considered as
renunciation by a usufructuary? [City
of Manila v Monte de Piedad]
• City of Manila is the owner of the land, which
granted the use of the land to Monte de Piedad for
the purpose of constructing a building that will
provide its charitable services; and if the building is
abandoned or no longer used as such, then the land
and building will be taken over by the city.
• Monte de Piedad sought to register itself as the
owner of the building and land with the Register of
Deeds, which was granted. This may be interpreted
to seek ownership by prescription. But prescription
does not run against the government.
• The City of Manila petitioned the Court to order
the Register of Deeds to reflect the city as the owner
of the land.
• Is Monte de Piedad a usufructuary that renounced
the usufruct?
Art. 604
• If the thing given in usufruct should be lost
only in part, the right shall continue on the
remaining parts.
Art. 605
• Usufruct cannot be constituted in favor of a
town, corporation, or association for more than
fifty years. If it has been constituted, and before
the expiration of such period the town is
abandoned, or the corporation or association is
dissolved, the usufruct shall be extinguished by
reason thereof.
Can a survey affect the rights of a
usufructuary? [NHA V CA]
• A 7-hectare public land was surveyed but
contained a condition for a future survey. The
land was for the establishment of the National
Government Center.
• Several offices of the national government
constructed their buildings and offices inside the
NGC but there remained vacant areas.
• Can non-governmental organizations enter into
a usufructuary agreement with the government?
Can this be revoked?
Art. 606
• A usufruct granted for the time that may elapse
before a third person attains a certain age, shall
subsist for the number of years specified, even if
the third person should die before the period
expires, unless such usufruct has been expressly
granted only in consideration of the existence of
such person.
Art. 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.
• 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 aright 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.
Art 608
• If the usufructuary shares with the owner the
insurance of the tenement given in usufruct, the
former shall in case of loss, continue in the
enjoyment of the new building, should one be
constructed, or shall receive the interest on the
insurance indemnity if the owner does not wish
to rebuild.
• Should 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.
Who is entitled to the payment of
insurance or reparation damages?
[Vda de Albar v Carandang]
• The usufructuary did not pay real estate taxes.
Will this act result in the loss of rights to the
benefits derived from the property?
Art 609
• Should the thing in usufruct be expropriated
for public use, the owner shall be obliged either
to replace it with another thing of the same
value and of similar conditions, or to pay the
usufructuary the legal interest on the amount of
the indemnity for the whole period of the
usufruct. If the owner chooses the latter
alternative, he shall give security for the
payment of the interest.
Art. 610
• A usufruct is not extinguished by bad use of
the thing in usufruct; but if the abuse should
cause considerable injury to the owner, the latter
may demand that the thing be delivered to him,
binding himself to pay annually to the
usufructuary the net proceeds of the same, after
deducting the expenses and the compensation
which may be allowed him for its
administration.
Art 611
• A usufruct constituted in favor of several
persons living at the time of its constitution shall
not be extinguished until the death of the last
survivor.
Art 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 heir for
taxes and extraordinary expenses which should
be reimbursed. After the delivery has been
made, the security or mortgage shall be
cancelled.
What is the right of the
usufructuary when there are
several usufructuaries? [Policarpio
v Salamat, Asuncion]
• What is the meaning of the term “up to the
death of the last survivor”?