What is usufruct?

● Art 562 - Usufruct gives right to enjoy the property of another WITH obligation of
preserving its form AND subtance UNLESS title constituting it or law otherwise provides.

FUNDAMENTAL RIGHTS PERTAING TO OWNERSHIP

Requisites of usufruct: right to use (Jus Utendi) and right to fruits (Jus Fruendi)
Naked Ownership= Jus Disponendi (right to dispose, alienate, encumber)
*owner retains jus disponendi or power to alienate the same

Formula:
Full Ownership - Naked Ownership + Usufruct
Naked Ownership - Full Ownership - Usufruct
Usufruct- Full Ownership - Naked Owenership

● Essential characteristics of usufruct:

temporary duration, real right of use and enjoyment, purpose is to enjoy benefits from thing
due to normal exploitation, transmissible,

may be constituted on real or personal property, consumable or non-consumable, tangible or

intangible, the ownership of which is vested in another, essentially jus in re aliena (A right in the
property of another)

REQUISITES OF USUFRUCT
1. Essential- real, temporary right to enjoy anothers property
2. Natural- Obligation to preserve its form and substance
3. Accidental- Which may be present or absent depending on the stipulation (ex. Number of
years it will exist)

Is usufruct a real right?

● Yes

If A gave the usufruct of his property to B for the lifetime of B, is it a temporary?

● Yes, period is until the death of B.

Why is preservation not an essential requisite and merely natural?

● Art 562 “unless the title constituting it or the law otherwise provides”

Reason conveserving form and substance: prevent extraordinary exploitation,

frequent abuse and impairment

CLASSIFICATIONS OF USUFRUCT

A. Origin: legal (constituted by law), voluntary (will of private persons or in last will and
testament) and , mixed (by prescription)
 ● What are legal usufructs?
Those that are constituted by law. Example (Art 226 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. – but this may
not be regarded as usufruct, may be administration)

● Scenario when usufruct is constituted 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 the land and to Y, the
usufruct. In due time, Y may acquire the ownership of the USUFRUCT by acquisitive
prescription.

*both the law and the volition of the person (usufructuary) participate in its creation.

B. Quantity or Extent of Coverage:

a) total (wholeo of the fruits) or
b) partial (part if the fruits)

C. Kind of Object:
a) Over right- if it involves intamgible property provied not personal or instransmissble
b) Over things- if it imvolves tangible propoert

D. Number of usufructuaries:
a) singular (in favor of one person) or
b) multiple (two or more person)
i. Simultaneously- at the same time
ii. Successively- one after the other
Can owner give successive usufruct to siblings X, Y and Z?
No. Usufructuary must all be living or conceived at the time of
usufruct and they must be separated only by a single degree of
separation. Only parents and child can be successive usufructuary. Art
869 in relation to Art 863.

E. Terms and conditions:

a) Pure
b) with a term or period
i. Ex die- from a certain day
ii. In diem- up to a certain day
iii. Ex diem in diem- from a certain day up to a certain day
c) conditional

F. extent of owner’s patrimony:

a) universal (all properties of A) or
 b) particular (ex. Only 1 out 3 houses of A)

G. Whether or not impairment is allowed:

a) Normal (or perfect or regular)- involves non-consumable things wc usufuctuary can
enjoy w/o altering form and substance
b) abnormal (or imperfect or irregular)- involves things wc would be useless to
usufuctuary unless consumed
For Art 574 (consummables), what is the obligation on the part of the
usufructuary?
● Pay appraised value or return in same quantity or quality and pay current
price

25. Difference of usufruct and ownership:

● usufruct only has right to use and to fruits

26. Is possession a requirement in usufruct?

● No, Art 568. Usufuctuary can lease the lands and has the right to chooose the tenant.

33. Under prescription, just title must be proven.

● There is no presumption.

28. Under possession, just title is presumed. Assume that there is a valid mode of acquiring
ownership.

35. Why is there a difference?

36. Just title in prescription and in possession are different.
37. Just and valid title in possession. Colorable title in prescription.
38. Take note of 3 different classes of just title.
39. Putative title – no succession or mode of acquiring ownership. A possessing the thing
thought that he already acquired ownership from his father not knowing that his father has not
yet died. Father can transfer title.

RIGHTS OF THE USUFRUCTUARY

1. To Receive the fruits of the property in usufruct and half of the hidden treasure he
accidentally finds on the property (Arts. 566, 438, NCC)
2. To enjoy any Increase which the thing in usufruct may acquire through accession (Art. 571,
NCC)
3. To personally Enjoy the thing or lease it to another (Arts. 572-‐577, NCC) generally for the
same or shorter period as the usufruct
4. To make such Improvements or expenses on the property he may deem proper and to
remove the improvements provided no damage is caused to the property (Art. 579, NCC)
5. To Set-‐off the improvements he may have made on the property against any damage to the
same (Art. 580, NCC)
6. To Retain the thing until he is reimbursed for advances for extraordinary expenses and
taxes on the capital (Art. 612, NCC)
7. To Collect reimbursements from the owner for indispensable extra ordinary repairs, taxes
on the capital he advanced, and damages caused to him
8. To Remove improvements made by him if the same will not injure the property

AS TO THE THING AND ITS FRUITS

A. Right to All Fruits (Natural, Industrial, Civil)
Except: usufruct is constituted only on a part of fruit AND there is agreement to contrary

Note: Products when taken from property diminishes its substance are not treated as fruits and
belong to naked owner (minerals extracted from mines)

Rules on Pending NATURAL and INDUSTRIAL fruits

at the establishment of the usufruct At the termination of usufruct

belongs to usufuctuary Belongs to owner
No obligation to pay cultivation/gathering Owner must reimburse usufuctuary for
expenses to naked owner ORDINARY CULTIVATION EXPENSES,
SEEDS from PROCEEDS of FRUITS
without prejudice to right of 3rd persons Right of innocent 3rd parties should not be
prejudiced

QS: Usufruct intended for one month. it starts of dec01 till dec31. on the 15th day, there are
still fruits pending to be paid (for nov),who is entitled to the rental income?
- rules as to civil fruits - naked owner is entitled to the rent for november

(Put simply, sa ESTABLISHMENT ng usufruct, may RIGHT si usufructuary SA FRUITS

WITHOUT NEED TO REIMBURSE naked owner; tas sa TERMINATION of the usufruct,
RIGHT to be REIMBURSED for gathering expenses on GROWING FRUITS by the naked
owner)

Note. If expenses greater than proceeds of fruits, owner has no obligaton to reimburse the
difference as there is no proceeds of fruits.

B. Right to HALF OF HIDDEN TREASURE he accidentally finds

Usufuctuary is considered as a stranger. If he finds, he gets 1/2, if another person is the finder,
the other person gets 1/2 and the other half belongs to the owner.
QS: Is the usufructuary entitled to the share of what his guest found in the property?
No. The guest get 1/2 and the owner of property gets 1/2.

C. Right to all benefits of & increases in the property in usufruct through accession, easements
Reason: Usucfruct covers entire Jus Utendi and Jus Fruendi

D. Right to possession** and enjoyment of the thing

**possession is not indispensable BECAUSE usufruct has the:
Right to lease the property
Right to alienate his right of usufruct

*Usufuctuary may lease the it even without owners consent but cannoy alienate, pledge or
mortgage the thing itself. However, right of usufruct can be alienated.
* Usufuctuary may sell future crops subject to those ungathered at the time when usufruct
terminates belong to the owner.
* If lessee damage property, usufuctuary answers to the owner subject to the usufuctuary’s
right to reimbursement against lessee. If usufcutuary cant pay damage to owner, his bond
shall be liable.
* Contracts entered by usufuctuary terminates upon expiration except rural leased which
continue during agricultural year.

Can the usufructuary lease the property? Yes. Usufuctuary may lease the it even without
owners consent.

What happens after the usufruct? All contracts he may enter terminates upon expiration of
the usufruct.

Circumstance when the lease will not be terminated even after extinguishment of
usufruct - except rural leased which continue during agricultural year.

other exception than agricultural lease - when the lease is annotated in the title

Does he have the right to alienate the right of usufruct? Yes

right to alienate the property? No. Because he does not own the thing itself.

they can also stipulate that it will continue in the proceeds of the alienation

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QS: Right to introduce improvement - does the owner have the right to introduce
improvement to the property? Yes.
E. Right to make useful improvements or luxurious improvements (for mere pleasure)
- PROVIDED it does not alter the nature of the thing
- BUT he shall have no right to be indemnified but he may either:
- Remove improvements if no substantial damage is caused
- Set off improvements against damages for wc he may liable

QS: Necessary expenses - does usufructuary have the right to reimbursement?

No. By express provision of law usufructuary do not have the right to reimbursement for the
improvements they may have introduced on the property.

F. Right to set off improvements he have made against damage to the same
Right to set-off damages by improvements - when is it possible?
Requisites: there are Damage caused by usufuctaury and improvemets must have augmented
the value of property

improvement exceeds damage - naked owner pay usufructuary? No. Usufructuary is laible for
difference.

Rules:
*If damage exceeds value of improvmement, usufuctuary liable for difference
*If value of improvement exceeds dmage, difference does not go to usufructuary but accrues in
favor of owner in absence of stipulation

G. Right to reimbursement*** for extraordinary expenses (expenses incurred in the repair of

damage by calamity, etc.) AND taxes
***Right to retain the property in usufruct pending reimbursement

Right to reimbursement for extraordinary repairs - is he entitled to retain the property

pending the reimbursement
612- A the termination of the usufruct, he must Return the property to naked owner but he has
rights to:
a. Retain property til he is reimbursed for Taxes on the Capital (which he ahd been
advancednd by him) and indispensible extraordinary repairs or expenses (insofar there has
been an incease in value)

B. Remove removable improvements or set them off against damages he caused

AS TO ADVANCES AND DAMAGES

A. To be reimbursed for extraordinary repairs made by him in an amount equal to the increase
in vale which propert may have acquired by reason of repairs (594)

Right to Reimbursement of Usufructuary refers to? extraordinary repairs - meaning of

extraordinary repairs?
- requied by wear and tear due to natural use of thing but not needed for preservation
- required by deterioration of or damage to the thing caused by exceptional circumstance but
not needed for its preservation and
- required by deterioration to the thing caused by exceptional circumstance AND ARE
indispensible for its preservation (earthquake renderes stairs of house unsafe)

When can we say that the usufructuary spent for extraordinary repairs?
Requisied before usufructuary may make extraordinay repairs:
- Due notification to naked owner
- Naked owner failed to make them and
- Repair is Needed for preservation

Right of Usufructuary Who Made Repairs

1. Get Increase of in values or Reimbursement of Expenses
2. Right of Retention until paid

OBLIGATION TO MAKE ORDINARY REPAIRS

- US obliged to make ordinary repairs needed in usufruct
Ordinary repairs are required by wear and tear due to natural use of thing and ARE
INDISPENSIBLE for preservation

For US be responsible for ordinary repairs:

- required by wear and tear due to the natural use of thing to the NORMAL use of thing
- indispensible for PRESERVATION
- Occured during existence of Usufruct
- Happened w/ or w/o fault of US

Note: If owner demanded repair, US fails, owner may make them or through another at the
expense of US

Exemption from duty to pay for necessary repairs by renouncing usufruct:

- US had no fault, he can renounce but surrender fruits received
- US had fault, cannot renounce. Liable for damages.

B. To be reimbursed for taxes on capitals advance by him

C. To be indemnified for damages caused to him by the naked owner
 a) Naked owner may aleinate property in sufruct because title remains vested but he
cannot:
i. Alter the form or substance
ii. Do anything that will cause DIMUNITION in value of usufruct or prejudicual
to rights of usufructuary

OTHERWISE,NAKED OWNER WILL BE LIABLE FOR DAMAGES

D. Remove improvements made by him if same will not injure property

Note: Possessor in good faith is entitled to refund for useful improvement and
usufructuary is not.

AS TO USUFRUCT
A. Alienate the usufructuary right

EXCEPTIONS:
- Parental usufruct for right is personal and intransmissible
- Usufruct given in consideration of the person of the usufructuary to LAST during his
lifetime, also personal and intransmissible

SPECIAL USUFRUCT

A. Property owned by common-

QS: Usufruct on co-owned property - A, B, C co-owns a land. A gave the usufruct to X. May
X possess the entire co-owned property?
Yes. A co-owner may give the usufruct his share to another without consent of others, unless
there is a personal consideration. (-Right to possession of the WHOLE property)

QS: In case co-owned prop produces income, how much is X entitled to? can X exclude B
and C from possessing the property?
X is entitled to the share of A or 1/3 as usufructuary as the income shall be deemed to accrue
proportionately to the usufructuary. (Right to share in PART of the earnings of the co-owned
property, up to the amount the naked co-owner is entitled to)
X cannot exclude B and C from possessing the property because they are also co-owners

QS: Is X entitled for reimbursement for the construction of the house?

No. Usufructuary has the right to make improvements however he shall not alter the form or
substance unless owner consents. He is not entitled to refund but he may either remove the
improvement if no substantial damage is caused or set off (compensate) the improvements
against damages for which he may be liable.
Usufructuary takes the owners place to administration and collection of fruits or interests..
.
Effect of Partition:
If there is partition, usufructuary continues to have the usufruct of the part of the co-owner
concerns.
If partition was done w/o intervention of usufructuary, parition binds usufructuary however,
naked owner must respect the usufruct.

B. Over things which gradually deteriotate

Art 573 deals with ABNORMAL or imperfect usufruct. THINGS THAT DETERIOARE
FASTER THAN OTHERS such as clothes, vehicles and computers.

EFFECT OF DETERIORATUON ON USUFRUCTUARYS LIABILITY:

-If due to normal use, not responsible nor required to make any repairs. He may return them
in the codition they might be in the termination of usufruct and if he fails to do so, pay value
at the time the usufruct ceases.
- If due to an event of act endangers their preservation (fortuitous event), not responsible BUT
obliged to make NECESSARY REPAIRS.
- If due to fraud or negligence, OBLIGED to INDEMNITY the OWNER.

C. Rent / Pension or Benefits

Each payment shall ne considered as proceeds or fruits of such right and shall deemed to
accrue proportionately to the usufructuary from the time usufruct lasts:

Note: Those that acccru after termination belong to the owner

A given usufruct to the land. B, naked owner, constructed a building. Is A entitled to the rent
of the bldg?
No. only income from the land NOT the bldg.

D. On fruit bearing tress and shrubs

what's the right and/or obligation?
Usufructuary may use the dread trunks and even those cut off or uprooted by accident under
obligation to replace them with new plants.

Note: No such obligation exists with respect to those dead trees or shrubs ALREADY
EXISTING at the beginning of usufruct.

Effect of calamity on Trees and Shrubs

1. If impossible to replace, usufructuary may:
a) Use trunks but should replace them
 b) Leave the dead, fallen uprooted trunks at owner’s disposal and deman owner to
remove tem
2. If not too burdensome to replace them, he must replce it whether he uses othe trunk or not
and cannot demand for clearance by the owner.

E. On woodlands and nurseries

Does the usufructuary have the right to cut down trees?
GR: The usufruct has NO right to cut/fell trees.
Exceptions:
-If the cutting is necessary in the addition of improvements, HE CAN do so with the
OBLIGATION TO NOTIFY THE NAKED OWNER FIRST
-If the property in usufruct is woodland, HE MAY do so IN ACCORDANCE TO THE
CUSTOM OF THE PLACE, AS TO MANNER, AMOUNT, AND SEASON

Usufuctuary of wood land may enjoy all benefits it may produce.

In case of usufruct over woodland which is a cospe or timber, in cutting trees, he must:
A. Follow owners habit of practices
B. In default, customs of the place as to manner, amount and season.

Exception to cutting down trees on woodland and nurseries - necessary to improve??

C. If no customs, ONLY TIME can cut trees will be for REPAIR or IMPROVMENT but
owners must be informed.

Residential land and there are trees there blocking the entry to the land - the tree may
be allowed to be cut down provided that he informs the owner

Obligations:
1. See to it that woodland is preserved and he cannot consume all otherwise nothing will be
left for the owner
2. cannot alienate the trees (as tress not considered as fruits) unless he is permitted by owner.

F. Right to Recover by court Action

right to file an action to recover - what are the rights given to the usufructuary
The usufructuary of an action to recover a real right or any movable property has has the right
to bring action and oblige owner to give him:
a. Authority to bring the action through SPA
b. Furnish him whatever the proof owner may have

Effect of Judgement
a. Usufruct be limited to fruits
b. Dominion remains with owner

if he is successful in recovering the property - will the usufruct continue or terminate?

Usufruct is now over the thing awarded and not on the right to recover

G. Consumable Property
of consumable properties - may consume?
When the usufruct include things cannot be used without being consumed, he has RIGHT TO
MAKE USE OF THEM under OBLIGATION of paying their appraised values at the
termination of usufruct, if they were appraised when delivered.
If they were not appraised, right to return the same quantity and quality OR pay current price
at time usufruct ceases.

Note: An example of abnormal usufruct and reffered as quasi-usufruct because form is NOT
really preserved.

H. Fruitful or productive livestock

right of the usufructuary over the female carabao

Usufruct on FLOCK or HERD of livestock, obliged to REPLACE with the YOUNG the
animals that die each year from natural causes or lost due to rapacity of prey.
*applies to flock, not only to 2 or more animals

Ex: 15 cattles died, but 3 were produced, only 3 must be produced.

If 15 died but 20 were produced, 5 belong to usufructuary.

No obligation to replace when:

A. There is total loss because of unexpected or unnatural loss
B. Partial loss

Note: Remains, not remained, go to naked owner. Usufruct continues on remainder provided
loss be by accident and without fault of usufructuary.

In case of sterile animals, since there is no young, rule of usufruct over fungible applies.

I. Over entire patrimony

A. If there is stipulation for the payment by usufructuary of debts of owner, US liable only for
debts contracyed by owner before construction of usufruct
B. If there is no stipulation, US shall be responsible only when usufruct has been made in
FRAUD of creditors.

J. On mortgage property