BANARIO, HERMAY A.

| CREDIT TRANS | WEEK 14

ANTICHRESIS

ARTICLE 2132
By the contract of antichresis the creditor acquires the right to
receive the fruits of an immovable of his debtor, with the
obligation to apply them to the payment of the interest, if
owing, and thereafter to the principal of his credit. (1881)

 ANTICHRESIS
 Involves an express agreement between parties such that the
creditor will have possession of the debtor’s real property given as
security and such creditor will apply the fruits of the property to
the interest owed by the debtor. If any, then to the principal
amount.

CHARACTERISTICS
1. Accessory
2. Formal – must be in writing
3. Nominate
4. Consensual – does not require delivery of the immovable to
the creditor

PARTIES
o Debtor and creditor

ESSENTIAL REQUISITES
o COC

Delivery of property
o Such delivery is required ONLY in order that the creditor
may receive the fruits and not that the contract shall be
binding.
o Contract covers only the fruit of the immovable

Right of Creditor to the fruits

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o Antichresis normally covers all the fruits of the encumbered

property, but the law gives the parties the freedom to
stipulate otherwise.
 ANTICHRESIS vs. PLEDGE

ANTICHRESIS PLEDGE

Fruits of real property Personal property

Perfected by mere consent Perfected by the delivery of the

provided the contract is in written thing pledged
form

Consensual contract Real contract

Similarity – the debtor loses control of the subject matter of the

contract

 ANTICHRESIS vs. REAL MORTGAGE

ANTICHRESIS REAL MORTGAGE

Property is delivered to the Debtor usually retains possession

creditor of the property

Creditor acquires only the right to
receive the fruits of the property;
hence, it does not produce a real
right
Creditor does not have any right
to receive the fruits, but mortgage
creates a real right over the
property which is enforceable
against the whole world

Creditor, unless there is a Creditor has no such obligation

stipulation to the contrary, is
obliged to pay the taxes and
charges upon the estate

It is expressly stipulated that the No such obligation on the part of

creditor given possession of the the mortgagee
property shall apply the fruits
thereof to the payment of interest,
if owing, and thereafter to the
principal of the credit

SIMILARITY – the subject matter is real property

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Application of the fruits to interest and then to principal

o It must be expressly agreed between creditor and debtor that
the former, having been given possession of the properties
given as security, is to apply their fruits to the payment of
INTEREST, if owing, and thereafter to the PRINCIPAL of his
credit

ARTICLE 2133
The actual market value of the fruits at the time of the
application thereof to the interest and principal shall be the
measure of such application. (n)

 Fruits of the immovable must be appraised at their actual market

value at the time of the application

ARTICLE 2134
The amount of the principal and of the interest shall be
specified in writing; otherwise, the contract of antichresis shall
be void. (n)

Form of the contract

o Law requires that a contract be in some form in order that it
may be valid and not only to affect third persons. Even if the
antichresis is void, the principal obligation is still valid.

ARTICLE 2135
The creditor, unless there is a stipulation to the contrary, is
obliged to pay the taxes and charges upon the estate.

He is also bound to bear the expenses necessary for its

preservation and repair.

The sums spent for the purposes stated in this article shall be
deducted from the fruits. (1882)

Obligations of the antichretic creditor

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1. Pay the taxes and charges upon the estate. If he does not pay the
taxes, he is by law required to pay indemnity for damages to the
debtor.
2. To apply the fruits, after receiving them, to the interest, if
owing, and thereafter to the principal

ARTICLE 2136
The debtor cannot reacquire the enjoyment of the immovable
without first having totally paid what he owes the creditor.

But the latter, in order to exempt himself from the obligations

imposed upon him by the preceding article, may always compel
the debtor to enter again upon the enjoyment of the property,
except when there is a stipulation to the contrary. (1883)

Right of antichretic debtor to reacquire enjoyment of

property
o If the creditor does not want to pay the taxes and incur the
expenses necessary for the preservation and repair of the
property, he may compel the debtor to reacquire the
enjoyment of the same except when there is a contrary
stipulation.

ARTICLE 2137
The creditor does not acquire the ownership of the real estate
for non-payment of the debt within the period agreed upon.

Every stipulation to the contrary shall be void. But the creditor

may petition the court for the payment of the debt or the sale of
the real property. In this case, the Rules of Court on the
foreclosure of mortgages shall apply. (1884a)

Remedy of creditor in case of nonpayment of debt

1. Bring an action for specific performance
2. Petition for the sale of the real property as in a foreclosure of
mortgages under Rule 68 of the ROC.
 The parties, however, may agree on an extrajudicial
foreclosure in the same manner as they are allowed in
contracts of mortgage and pledge.

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Acquisition by creditor of property by prescription

o Possession, for the purpose of acquisitive prescription, must
be in the concept of an owner. The possession of an
antichretic creditor is not in the concept of an owner. He is a
mere holder placed in possession of the land by the debtor,
the owner.

ARTICLE 2138
The contracting parties may stipulate that the interest upon the
debt be compensated with the fruits of the property which is the
object of the antichresis, provided that if the value of the fruits
should exceed the amount of interest allowed by the laws
against usury, the excess shall be applied to the principal.
(1885a)

ARTICLE 2139
The last paragraph of article 2085, and articles 2089 to 2091
are applicable to this contract. (1886a)

 Since an antichresis is constituted so that the creditor can receive

the fruits and apply them to the payment of interest and principal,
an antichresis secures an obligation to pay a sum of money

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CASE

SPS. REYES VS. HEIRS OF BENJAMIN

MALANCE, G.R. NO. 219071, AUG. 24, 2016

FACTS: Benjamin Malance loaned from Magtalas sisters, spouses of the

petitioners, and agreed that the sisters shall have the right to the fruits of
the subject land for 6 years or until the loan is fully paid. When Benjamin
died, his heirs found that the subject land was being cultivated by the
Magtalas sisters and their respective husbands based on the agreement
entered by the parties. In doubt of the authenticity of the Kasulatan, they
filed a complaint for Recovery of possession against the respondents.
ISSUE: WON the Kasulatan is a contract of Antichresis

RULING: Yes, antichresis involves an express agreement between parties

whereby : (a) the creditor will have possession of the debtor's real
property given as security; (b)such creditor will apply the fruits of the said
property to the interest owed by the debtor, if any, then to the principal
amount; (c) the creditor retains enjoyment of such property until the debtor
has totally paid what he owes; and (d) should the obligation be duly paid,
then the contract is automatically extinguished proceeding from the
accessory character of the agreement. 

Bearing these elements in mind, the evidence on record shows that the
parties intended to enter into a contract of antichresis. Thus, as antichretic
creditors, the Magtalas sisters are entitled to retain enjoyment of the
subject land until the debt has been totally paid. 

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