ANTICHRESIS

Arts. 2132-2139
I. Concept (2132)

• 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) 
CONCEPT

• It is a contract whereby the creditor acquires the right to receive the

fruits of an immovable of the debtor, with the obligation to apply
them to the payment of interest, if owing, and thereafter to the
principal of his credit.
II. Elements

• A. Parties
1) Antichretic creditor – one who receives the fruits on the
immovable property of the debtor.
2) Antichretic debtor – one who pays his debt through the application
of the fruits of his immovable property.
B. Object

• The fruits of the immovable which is the object of the antichresis

must be appraised at their actual market value at the time of the
application (Art. 2138).The property delivered stands as a security
for the payment of the obligation of the debtor in antichresis. Hence,
the debtor cannot demand its return until the debt is totally paid.
C. Cause

- Accessory contract
- to apply the fruits of the immovable to the payment of interest, if
owing, and thereafter to the principal of his credit
D. Formalities

• 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)
Formalities, cont.

• Covers only the Fruits of real property

• Delivery of the property necessary so that CR may receive the fruits therefrom
• Note: Delivery of the property to the creditor is required only in order that the
creditor may receive the fruits and not for the validity of the contract.
• Amount of principal and interest must be specified in writing, otherwise, the
contract shall be void.
• Express agreement that debtor will give possession to the creditor and that creditor
will apply the fruits to the interest and then to the principal.
III. Effects
A. Rights of the antichretic creditor

• a. To receive the fruits (2132)

• b. Right of foreclosure (2137)

Right of foreclosure (2137)

• 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)
B. Obligations of the antichretic creditor
a. To bear necessary expenses for preservation
b. To pay the taxes and charges upon the estate
• 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) 
• Q: What are the obligations of an antichretic creditor?
• A: To:

• pay the taxes and charges assessable against the property like real estate taxes and
others;
• bear the necessary expenses for the preservation of the property;
• bear the expenses necessary for the repair of the property; and
• apply the fruits received for payment of the outstanding interests, if any, and
thereafter of the principal.
• Q: When can the antichretic debtor reacquire the possession of his
property?
• A: The debtor can only demand the return of the property after having
fully paid his obligations to the creditor. It is not fair for the debtor to
regain the possession of the property when his debt has not been fully
paid. Until there is full payment of the obligation, the property shall stand
as security therefor (Macapinlac v. Gutierrez Repide, No. 18574, Sept. 20,
1922).
• Q: How can the creditor be exempted from the obligations imposed by Art.
2135?
• A: The creditor may compel the debtor to re‐ enter into the property.
• Note: 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.