USUFRUCT

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.

Characteristics
1. Real right;
2. Temporary duration;
3. Derive all advantages from the thing due to normal exploitation;
4. May be constituted on real or personal property, consumable or non- consumable, tangible or
intangible, the ownership of which is vested in another; and
5. Transmissible.

Classification
1. Impairment of object
a. Normal
b. Abnormal

2. Origin
a. Legal
b. Voluntary
c. Mixed

3. Number of usufructuaries
a. Simple
b. Multiple
i. Simultaneous
ii. Successive

4. Terms or conditions
a. Pure
b. With a term or period
c. Conditional
5. Quality or kind of object
a. Things
b. Right

Rights of the usufructuary

1. To receive and benefit from the fruits
2. To enjoy any increase through accessions and servitudes
3. To the half of the hidden treasure he accidentally finds

Property
Atty. Gerlyn Fe G. Oyos
San Sebastian Recoletos - College of Law
4. To lease the thing, even without the consent of the owner – provided that the lease does not extend
longer than the usufruct itself
5. To improve the thing without alteration
6. Right to set-off the improvements against any damage
7. To retain the thing until reimbursed
8. To collect reimbursements
9. To remove improvements
10. To mortgage the right of usufruct
11. To alienate the usufruct

Note: Fruits pending at the beginning of the usufruct belong to the usufructuary, without need
of refunding owner for expenses incurred; whereas fruits pending at the termination of usufruct
belong to the owner, with an obligation of reimbursing the usufructuary for ordinary cultivation
expenses, or other similar expenses, from the proceeds of the fruits.

Obligations of the usufructuary

1. Before exercising the usufruct
a. To make an inventory of the property;
b. To give a bond.

NOTE: Bond is not required in the following instances:

• When no prejudice would result
• When the usufructuary is the donor of the property who has reserved the usufruct
• When there is parental usufruct
o Unless, when the parents contract a second or subsequent marriage, and
o When the property of each child exceeds P50,000 (Art. 225, Family Code)

Effect of failure to give security before entering into usufruct:

The owner may demand that:
a. the immovables be placed under administration;
Note: The owner may, if he so prefers, until the usufructuary gives security or is excused from
doing so, retain his possession of the property 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.

b. that the movables be sold;

Note: If movables are sold, the interest on the proceeds of the sale if the movables and that on the
public securities and bonds, and the proceeds of the property placed under administration, shall
belong to the usufructuary.

c. 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
Property
Atty. Gerlyn Fe G. Oyos
San Sebastian Recoletos - College of Law
 d. that the capita or sums in cash and the proceeds of the sale of the movable property be
invested in safe securities.

2. During the usufruct

a. Take care of the property
b. Replace with the young
c. Make ordinary repairs
d. Notify the owner of urgent extraordinary repairs
e. Permit works and improvements by the naked owner not prejudicial to the usufruct
f. Pay annual taxes and charges on the fruits
g. Pay interest on taxes
h. Pay debts
i. Notify the owner of any prejudicial act committed by third persons
j. Pay for court expenses and costs

3. At the termination of the usufruct

a. To return the thing
b. Pay legal interest
c. Indemnify the owner for any loss

Rights of the owner

1. He retains title
2. He may alienate the property, but not (a) alter the form or substance of the thing, or (b) do anything
prejudicial to the usufructuary
3. He may construct buildings, make improvements and plantings, provided (a) the value of
the usufruct is not impaired, (b) the rights of the usufruct are not prejudiced.

Extinction/termination
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 fulfillment 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.

Abnormal Usufruct
It is a usufruct on things that deteriorate, i.e., things which, without being consumed, gradually
deteriorate through wear and tear – in which case, the usufructuary shall have the right to make
use of the same in accordance to its purpose, and is not obliged to return them at the termination
Property
Atty. Gerlyn Fe G. Oyos
San Sebastian Recoletos - College of Law
of the usufruct except in their condition at that time, but shall be obliged to indemnify the owner
for any deterioration caused by reason of his fraud or negligence (Art. 573, NCC)

Property
Atty. Gerlyn Fe G. Oyos
San Sebastian Recoletos - College of Law