Property Law Philippines.docx

USUFRUCT IN GENERAL 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. (467)

CONCEPT AND DEFINITION OF USUFRUCT  Right to enjoy the property of another, with the obligation of preserving its form and substance, unless the title containing it or the law provides otherwise  Formula: jus utendi and jus fruendi equals usufruct; jus disponendi equals naked ownership

CHARACTERISTICS OR ELEMENTS OF USUFRUCT 1. Essential characteristics a. It is a real right b. It is of temporary nature or duration c. Its purpose is to enjoy the benefits and derive the advantages from the object as a consequence of normal use or exploitation 2. Natural characteristics—obligation of conserving and preserving the form and substance of the thing 3. Accidental characteristics—those which may be present or absent depending upon the stipulation of the parties

OBJECT OF USUFRUCT 1. May be real or personal property 2. May be sterile or productive 3. May be created over a right Art. 563. Usufruct is constituted by law, by the will of private persons expressed in acts inter vivos or in a last will and estament, and by prescription. (468)

CLASSIFICATION OF USUFRUCT AS TO ORIGIN 1. Legal—created by law 2. Voluntary or conventional a. Created by the will of the parties inter vivos

b. Created mortis causa 3. Mixed Art. 564. Usufruct may be constituted on the whole or a part of the fruits of the thing, in favor of one 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. (469)

CLASSIFICATION OF USUFRUCT ACCORDING TO QUANTITY OR EXTENT 1. As to fruits—total or partial 2. As to object—universal or particular

CLASSIFICATION OF USUFRUCT AS TO THE NUMBER OF PERSONS ENJOYING THE RIGHT 1. Simple 2. Multiple a. Simultaneous b. Successive Art. 565. The rights and obligations of the usufructuary shall be those provided in the title constituting the usufruct; in default of such title, or in case it is deficient, the provisions contained in the two following Chapters shall be observed. (470)

RULES GOVERNING A USUFRUCT 1. The agreement of the parties or the title giving the usufruct 2. In case of deficiency, apply the Civil Code

RIGHTS OF THE USUFRUCTUARY 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. (471)

SHARE OF USUFRUCTUARY REGARDING HIDDEN TREASURE

 This means that the usufructuary, not being the landowner, is not entitled as owner, but is entitled as finder—to ½ of the treasure as a rule, unless there is a contrary agreement—if he is really the finder  If somebody else is the finder, the usufructuary gets nothing 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 he usufruct. (472)

PENDING NATURAL OR INDUSTRIAL FRUITS RULES 1. FRUITS PENDING AT THE BEGINNING OF USUFRUCT a. Belong to the usufructuary b. No necessity of refunding owner for expenses incurred c. But without prejudice to the right of third persons 2. FRUITS PENDING AT THE TERMINATION OF USUFRUCT a. Belong to the owner b. But the owner must reimburse the usufructuary for ordinary cultivation expenses and for the seeds and similar expenses, from the proceeds of the fruits c. Also, rights of third persons shouldn’t be prejudiced 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. (473)

RULE WHEN USUFRUCTUARY LEASES PROPERTY TO ANOTHER  As a rule, the lease executed by the usufructuary should terminate at the end of the usufruct or earlier

 Except in case of leases of rural lands, because in said case, if usufruct ends earlier than the lease, the lease continues for the remainder of the agricultural year Art. 569. Civil fruits are deemed to accrue daily, and belong to the usufructuary in proportion to the time the usufruct may last. (474) 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. (475)

RULE AS TO CERTAIN RIGHTS—RENT, PENSION, BENEFITS, ETC.  The things referred to in Article 570 are considered civil fruits and shall be deemed to accrue proportionately to the naked owner and usufructuary, for the time the usufruct lasts Art. 571. The usufructuary shall have the right to enjoy any increase which the thing in usufruct may acquire through ccession, the servitudes established in its favor, and, in general, all the benefits inherent therein. (479)

INCREASES IN THE THING HELD IN USUFRUCT 1. Accessions 2. Servitudes and easements 3. All benefits inherent in the property

REASON 1. Entire jus fruendi and 2. Entire jus utendi 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. (480)

RIGHTS WITH REFERENCE TO THE THING ITSELF 1. He may personally enjoy the thing 2. He may lease the thing to another

RIGHTS WITH REFERENCE TO THE USUFRUCTUARY RIGHT ITSELF 1. He may alienate the usufructuary right 2. He may pledge or mortgage the usufructuary right but he cannot pledge or mortgage the thing itself because he doesn’t own the thing

AMPIL QUESTION: CAN USUFRUCTUARY EXTEND A CONTRACT AND NOT BE COTERMINOUS WITH THE USUFRUCT? 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. (481)

ABNORMAL USUFRUCT ON THINGS THAT DETERIORATE  It is true that all things deteriorate but there are some things that deteriorate much faster than others

EFFECT OF DETERIORATION ON THE USUFRUCTUARY’S LIABILITY: IF THESE FAST DETERIORATING THINGS  Deteriorate because of normal use, the usufructuary is not responsible  Deteriorate because of an event or act that endangers their preservation, then even though there was no fault or negligence or fraud on the part of the usufructuary, he is still required to make the necessary or ordinary expenses  Deteriorate because of fraud or negligence, the usufructuary is responsible

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 at the same quantity and quality, or pay their current price at the time the usufruct ceases. (482)

ABNORMAL USUFRUCT ON CONSUMABLE THINGS/QUASIUSUFRUCT  The form and substance is not really preserved  Another instance of abnormal usufruct

RULES FOR THIS QUASI-USUFRUCT