NOTES ON PROPERTY | SANTIAGO with DELA CERNA, LUZ and PIANG 69

TITLE VI ARTICLE 563

Usufruct is constituted by law, by the will of private persons
USUFRUCT expressed in acts inter vivos or in a last will and testament,
and by prescription.
CHAPTER 1
Usufruct, How Created
USUFRUCT IN GENERAL
Classification of Usufruct as to Origin
ARTICLE 562
Usufruct gives a right to enjoy the property of another with 1. Legal usufruct as created by law. Example are those
the obligation of preserving its form and substance, unless usufruct of parents over the property of their minor
the title constituting it or the law otherwise provides. and unemancipated children.
2. Voluntary or Conventional Usufruct which is:
Naked Ownership and Usufruct a. Created by will of the parties inter vivos
b. Created mortis cause in last will or testament
Full Ownership vis-à-vis Usufruct and Naked Ownership 3. Prescriptive Usufruct (Mixed) which can be created
Rights of Full Owner Covered Rights by both law and act of a person – such as when one
occupies a land in good faith and gives by will usufruct
Right to dispose Naked Ownership
which the usufructuary can acquire the ownership of
jus disponendi
the usufruct by acquisitive prescription.
Right to use Usufruct
jus utendi
ARTICLE 564
Right to the fruits
Usufruct may be constituted on the whole or a part of the
jus fruendi fruits of the thing, in favor of one or more persons,
simultaneously or successively, purely or conditionally. It
Characteristics of a Usufruct may also be constituted on a right, provided that it is not
strictly personal or intransmissible.
[1] Essential Characteristics
1. It is a real right. Classifications of Usufruct
2. It is of a temporary nature or duration.
3. The purpose is to enjoy the benefits and derive all the As to the Quantity or Extent (of Fruits or Object)
advantages from the object as a consequence of 1. As to fruits: total or partial
normal use or exploitation. 2. As to object: universal (whole patrimony) or singular

[2] Natural Characteristics which is ordinarily present but a As to Number of Persons

contrary stipulation can eliminate it because it is not essential 1. Simple – if only one
is the obligation of conserving and preserving the form and 2. Multiple – if several, which can be
substance of the thing. a. Simultaneous; or
b. Successive
[3] Accidental Characteristics which may be present or absent
depending upon the stipulation of the parties like As to the Quality or Kinds of Objects Involved
• As pure or conditional usufruct 1. Usufruct over the rights – but must not be strictly
• Number of years personal or intransmissible in character, like support.
• In favor of one or more persons 2. Usufruct over things
a. Normal usufruct – non-consumable things
Object of a Usufruct b. Abnormal usufruct – consumable
1. May be a real or personal property
2. May be sterile or productive (fruitful) things As to Terms and Conditions
3. May be created over a right as long as not strictly 1. Pure usufruct – no terms nor conditions
personal and intransmissible and as long as it has an 2. Usufruct with a term
independent existence. 3. Conditional Usufruct

Distinction of Usufruct from Easement ARTICLE 565

The rights and obligations of the usufructuary shall be those
USUFRUCT EASEMENT
provided in the title constituting the usufruct; in default of
Real or personal property Only real property such title, or in case it is deficient, the provisions contained
All uses and fruits of Easement is limited to a in the two following Chapters shall be observed.
property are enjoyed particular use (right of way)
Usufruct cannot be May be constituted in favor Rules Governing Usufruct
constituted on an easement of a land held in usufruct 1. Agreement or the title giving the usufruct
Death extinguishes Death does not extinguish 2. Civil Code
 NOTES ON PROPERTY | SANTIAGO with DELA CERNA, LUZ and PIANG 70

CHAPTER 2 ARTICLE 567

Natural and industrial fruits growing at the time the usufruct
RIGHTS OF THE USUFRUCTUARY begins, belong to the usufructuary.

Overview of the Rights of Usufructuary Those growing at the time usufruct terminates belong to the
[1] As to the Fruits owner.
• Entitlement to natural, industrial and civil fruits of the
In the preceding cases, the usufructuary, at the beginning of
property in usufruct, except hidden treasure (Art. 566)
the usufruct, has no obligation to refund the owner any
• Civil fruits accruing proportionate to the time the expenses incurred; but the owner shall be obliged to
usufruct lasts (Art. 570). reimburse at the termination of the usufruct, from the
proceeds of the growing fruits, the ordinary expenses of
[2] Enjoyment of accessions, easements, benefits inherent in cultivation, for seed, and other similar expenses incurred by
the property (Art. 571). the usufructuary.

[3] (a) To have a sub-usufructuary; (b) lease the usufructuary The provisions of this article shall not prejudice the right of
third persons, acquired either at the beginning or at the
rights for not more than the period of the usufruct and (c) sell,
termination of the usufruct.
donate, encumber or dispose usufructuary rights (Art. 572).
Pending Natural or Industrial Fruits
[4] Make use of things in usufruct which gradually deteriorate
Article 567 refers to pending natural or industrial fruits, there
without being consumed, through wear and tear, in accordance
can be no pending civil fruits or rents for they accrue daily.
with the purpose of which they were intended (Art. 573).

[A] Fruits Pending at the Beginning of the Usufruct

[5] Make use of consumable things (Quasi-usufruct) (Art. 574).
1. They shall belong to the usufructuary
2. No necessity of refunding owner for expenses
[6] Special usufruct – to use dead trunks or those cut off or
incurred
uprooted by accident (Art. 575).
3. Without prejudice of rights of third persons (in cases
where there is a possessor in good faith – in such case
[7] As to the Improvements (Arts. 597-582).
it shall be pro-rata on charges and expenses).

1. RIGHTS AS TO THE FRUITS (Article 566-570) [B] Fruits Pending at the Termination of Usufruct
1. Shall belong to the owner
ARTICLE 566 2. But the owner must reimburse the usufructuary for
The usufructuary shall be entitled to all the natural, ordinary cultivation expenses and for seeds and
industrial and civil fruits of the property in usufruct. With
similar expenses from the proceeds of fruits.
respect to hidden treasure which may be found on the land
or tenement, he shall be considered as a stranger. 3. Right of third parties must not be prejudiced.

Fruits to which a Usufructuary is Entitled ARTICLE 568

If the usufructuary has leased the lands or tenements given
The usufructuary is entitled to the in usufruct, and the usufruct should expire before the
1. Natural fruits termination of the lease, he or his heirs and successors shall
2. Industrial fruits receive only the proportionate share of the rent that must be
3. Civil fruits paid by the lessees.

Dividends are Civil Fruits Rules as to the Civil Fruits

In Bachrach v. Seifert, dividend from shares in a They shall be deemed to accrue proportionately to the naked
corporation are considered as civil fruits whether in the form of owner and the usufructuary for the time the usufruct lasts.
cash or stock dividends. They are not part of the capital, hence,
they belong to the usufructuary. Illustration: For example A gave B in usufruct the profits of a
certain building for 5 years.
Hidden Treasure 1. If the usufruct lasts for the period stipulated, all the
The law says that “as to hidden treasure which may be found profits during the said period will go to B.
on the land or tenement, he shall be considered a stranger.” 2. Suppose B died at the end of three years, the profits
What does this mean? in ratio (3:2 of P120K = P72K for B : P48K for A)

This means that the usufructuary, not being the land Q. Are usufructuary rights exempt from execution?
owner, is not entitled as owner, but is entitled as a finder which Knowing the usufructuary rights can be disposed of by
is entitled to one-half of the treasure, as a rule, unless there is the usufructuary thus he can transfer, assign, sell or alienate and
a contrary agreement. And if he really is the finder. If somebody even encumber such rights, in the same vein these rights may
else if the finder, then the usufructuary in that case shall get be subject to a writ of execution, not being exempt therefrom.
nothing from the hidden treasure found.
 NOTES ON PROPERTY | SANTIAGO with DELA CERNA, LUZ and PIANG 71

ARTICLE 569 4. ABNORMAL USUFRUCT

Civil fruits are deemed to accrue daily, and belong to the
usufructuary in proportion to the time the usufructuary may
last. ARTICLE 573
Whenever the usufruct includes things which without being
consumed, gradually deteriorate through wear and tear, the
ARTICLE 570
usufructuary shall have the right to make use thereof in
Whenever a usufruct is constituted on the right to receive a
accordance with the purpose for which they are intended,
rent or periodical pension, whether in money or in fruits, or
and shall not be obliged to return them at the termination of
in the interest on bonds or securities payable to bearer, each
the usufruct except in their condition at that time; but he
payment due shall be considered as the proceeds of fruits of
shall be obliged to indemnify the owner for any deterioration
such right.
they may have suffered by reason of his fraud or negligence.
Whenever it consists in the enjoyment of benefits accruing
from a participation in any industrial or commercial Abnormal Usufruct on Things that Deteriorate
enterprise, the date of the distribution of which is not fixed, Article 573 deals with an abnormal or imperfect usufruct. It is
such benefits shall have the same character. true that all things deteriorate.

In either case they shall be distributed as civil fruits, and

Rules on Deterioration and Usufructuary’s Liability
shall be applied in the manner prescribed in the preceding
1. Deterioration through Normal Use – according to
article.
Art. 573, here the usufructuary (UF) is not responsible.
Other Civil Fruits There is no necessity for him to make any repairs to
restore them to their former condition. But, if not
The things referred to in Article 570 are considered as civil fruits
returned at termination, UF shall pay indemnity.
and shall be deemed to accrue proportionately to the naked
2. Deterioration through Fortuitous Event (Art. 592)
owner and usufructuary for the time usufructuary lasts – note
– UF is obliged to make the necessary and ordinary
the ratio computation under Article 568.
repairs but the mere deterioration through normal use
does not require ordinary repairs.
2. RIGHTS AS TO ACCESSIONS, SERVITUDES, ETC. 3. Deterioration through Fraud or Negligence the UF
here is responsible (Art. 573) but it can be set off
ARTICLE 571 against the improvements (Art. 590).
The usufructuary shall have the right to enjoy any increase
which the thing in usufruct may acquire through accession,
the servitudes established in its favor, and, in general, all the 5. QUASI-USUFRUCT
benefits inherent therein.
ARTICLE 574
Right to Accessions, Servitudes and Inherent Benefits Whenever the usufruct includes things which cannot be used
Aside from the right to the fruits, the usufructuary has the right without being consumed, the usufructuary shall have the
right to make use of them under the obligation of paying
to the enjoyment of use of:
their appraised value at the termination of the usufruct, if
1. Accessions they were appraised when delivered. In case they were not
2. Servitudes and easements appraised, he shall have the right to return the same quantity
3. All benefits inherent in the property and quality, or pay their current price at the time the
usufruct ceases.
3. SUB-USUFRUCTUARY, LEASE AND ALIENATION
Abnormal Usufruct on Consumable Things
ARTICLE 572 This is also known as Quasi-usufruct because the form and
The usufructuary may personally enjoy the thing in usufruct, substance is not really preserved. Thus, this is really a simple
lease it to another, or alienate his right of usufruct, even by a loan. Note that money may be the object of usufruct.
gratuitous title; but all the contracts he may enter into as
such usufructuary shall terminate upon the expiration of the It has been included however in the title of usufructs because
usufruct, saving leases of rural lands, which shall be in what are called universal usufructs both non-consumable and
considered subsisting for the agricultural year.
consumable properties are included. While seldom can there be
usufructs on consumable properties alone – they exist in law.
Usufructuary Rights, Lease and Alienation
A usufructuary can exercise the following rights: Rules in Quasi-Usufruct
1. Personally enjoy the thing or may also be through 1. The UF can use them (as if he is the owner)
another (sub-usufructuary); 2. But at the end of the usufruct, he must
2. Lease the thing to another, but only up to the period a. Pay the appraised value, if was appraised
of usufruct, except rural land (subsists for agri. year). when first delivered; or if no appraisal
3. Alienate – sell, donate, encumber the usufruct, except b. Return the same kind, quality or pay the price
those legal usufructs. He may even pledge and current at the time of termination of usufruct.
mortgage it,
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6. SPECIAL USUFRUCTS In nurseries, the usufructuary may make the necessary

thinnings in order that the remaining trees may properly
grow.
ARTICLE 575
The usufructuary of fruit-bearing trees and shrubs may With the exception of the provisions of the preceding
make use of the dead trunks, and even those cut-off or paragraphs, the usufructuary cannot cut down trees unless it
uprooted by accident, under the obligation to replace them be to restore or improve some of the things in usufruct, and
with new plants. in such case he shall first inform the owner of the necessity
of such work.
Special Usufructs
The UF has the right to use the following under Article 575 Special Usufruct over the Woodland
1. Dead trunks This is not a common special usufruct because timber lands are
2. Those cut off and uprooted by accident protected by the law and a license is essential for such.

But he must replace them with new plants for indeed he was Obligations of the Usufructuary
not the naked owner. 1. Preserve and conserve the woodland
2. In the cutting and felling of trees he must
There are other special usufructs under the Civil Code a. Follow owner’s habit or practices
1. Periodical pension, income or dividends (570) b. In default, follow customs of the place as to
2. Woodland (577) the manner, amount and season as to the use
3. Right of action to recover (578) but not abuse without prejudice to towner
4. Common property (582) c. If default, the only time the UF can cut down
5. Entire patrimony of a person (589) trees will be for repair and improvement in
6. Mortgaged immovable (600) which case the owner must be informed.
7. Herd of livestock (591) 3. Cannot alienate the trees – for they are not fruits –
unless allowed.
ARTICLE 576
If in consequence of a calamity or extraordinary event, the ARTICLE 578
trees or shrubs shall have disappeared in such considerable The usufructuary of an action to recover real property or a
number that it would not be possible or it would be too real right, or any movable property, has the right to bring the
burdensome to replace them, the usufructuary may leave the action and to oblige the owner thereof to give him the
dead, fallen or uprooted trunks at the disposal of the owner, authority for this purpose and to furnish with whatever
and demand that the latter remove them and clear the land. proof he may have. If in consequence of the enforcement of
the action he acquires the thing claimed, the usufruct shall
Effect of Calamity on Trees and Shrubs be limited to the fruits, the dominion remaining with the
Suppose there was an earthquake and many of the trees and owner.
shrubs have disappeared or were destroyed, the usufructuary
has the following rights and obligations: Usufruct of an Action to Recover
This special usufruct deals with the right to recover by court
[1] If it is impossible or too burdensome to replace them, the action of (1) real property; (2) personal property; or (3) real right
usufructuary has the option to either over real or personal property. This is in a sense a usufruct over
(a) Use but replace them (575) a expectancy or hope.
(b) Leave them at the owner’s disposal and demand
owner to remove and clear the land (576) Institution of Action. The action may be initiated in the name
of the usufructuary for being the owner of the usufruct he is
[2] If it is slightly burdensome to replace, the UF must replace deemed to be a real party in interest – the recovery in such
them whether he uses them or not and he cannot demand the cases requires a court action but he is required to obtain the
clearance of the land by the owner. owner’s authority to institute such action.

ARTICLE 577 What the Usufructuary Can Demand

The usufructuary of woodland may enjoy all the benefits To bring the action, the UF can demand from the owner:
which it may produce according to its nature. 1. Authority to bring the action
2. Proofs needed for a recovery
If the woodland is a copse or consists of timber for building,
the usufructuary may do such ordinary cutting and felling as
How Third Parties Can be Prejudice
the owner was in the habit of doing, and in default of this, he
may do so in accordance with the custom of the place, as to The usufruct must either be registered or made known to them.
the manner, amount and season.
Effect of Judgment
In any case the felling or cutting of trees shall be made in such In case a judgment for recovery is awarded then, the property’s:
manner as not to prejudice the preservation of the land. 1. Naked ownership belongs to the owner; and
2. Its usufruct belongs to the usufructuary
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6. IMPROVEMENTS Other Rights of Naked Owner (Article 595)

1. Construct any works
ARTICLE 579 2. Make any improvements
The usufructuary may make on the property held in usufruct 3. New planting in rural property
such useful improvements or expenses for mere pleasure as
he may deem proper, provided he does not alter its form or ARTICLE 582
substance; but he shall have no right to be indemnified The usufructuary of a part of a thing held in common shall
therefor. He may, however, remove such improvements, exercise all the rights pertaining to the owner thereof with
should it be possible to do so without damage to property. respect to the administration and the collection of fruits or
interest. Should the co-ownership cease by reason of the
Useful and Luxurious Improvements division of the thing held in common, the usufruct of the part
allotted to the co-owner shall belong to the usufructuary.
The usufructuary has the right to make:
1. Useful improvements; and
Usufructuary of a Part of Common Property
2. Luxurious improvement
A co-owner may give the usufruct of his share to another even
But the usufructuary without the consent of others, unless personal considerations
1. Must not alter the form or substance of the property are present. The UF in such a case takes the owner’s place as to:
held in usufruct 1. Administration (management)
2. Is not entitled to refund but he may either 2. Collection of fruits or interest
a. Remove the improvements if no substantial
damage to the property is caused; or Effect of Partition: The UF continues to have the usufruct of
b. Set-off or compensation the improvements the part allotted to the co-owner concerned.
against damages for which he may be made
liable under Art. 580. NOTE: The co-owner may partition the property even without
the consent of the usufructuary and the partition is binding
ARTICLE 580 upon the UF. However, the usufructuary must be respected. The
The usufructuary may set off the improvements he may have UF cannot oppose the partition.
made on the property against any damage to the same.
CHAPTER 3
Right to Set-Off Improvements OBLIGATIONS OF THE USUFRUCTUARY
The following must be present before set-off can be made:
1. That damage must have been caused by UF Obligations of the Usufructuary and Naked Owner
2. Improvements must have augment property value
[1] The usufructuary has obligations:
• Before the usufruct (like making an inventory)
Rules in Case of Set-Off
• During the usufruct (like taking due care of property)
1. If damage is greater than the improvement – the UF is
• After the usufruct (duty to return or indemnity)
still liable for the excess
2. If improvement is greater than the damage – the
[2] The naked owner has also corresponding obligations.
naked owner is not liable to refund.
ARTICLE 583
Q. What happens when naked owner alienates or sells the The usufructuary, before entering upon the enjoyment of the
property held in usufruct? – Article 581. property, is obliged:
(1) To make, after notice to the owner or his legitimate
ARTICLE 581 representative an inventory of all the property,
The owner of property the usufruct of which is held by which shall contain an appraisal of the movables
another, may alienate it, but he cannot alter its form or and a description of the condition of the
substance, or do anything thereon which may be prejudicial immovables;
to the usufructuary. (2) To give security, binding himself to fulfill the
obligations upon him in accordance with this
Alienation by Naked Owner Chapter.
Since the right to dispose remains with the Naked Owner (NO)
Obligation of Inventory and Security
he can sell or alienate the property but
1. He cannot alter its form or substance There are two obligation of inventory and security. They are not
2. Or do anything prejudicial to the UF (like lease) necessary before the right to the usufruct beings, they are
merely necessary before physical possession of the property
On the part of the purchaser, he must respect the usufruct in can be had
case it is registered or known to him, otherwise he can oust
the UF, who can then look to the NO for damages. In case the Thus, if the usufructuary fails to give security, unless exempted,
property is bequeathed (personal) or devised (real) to another the usufruct still begins, but the naked owner will have the
the legatee or devisee should respect usufruct. rights granted him under Art. 586.
 NOTES ON PROPERTY | SANTIAGO with DELA CERNA, LUZ and PIANG 74

General Rule: The usufructuary before entering upon the Effects of Failure to Give Security
enjoyment of the property is obliged:
1. To make, after notice to the owner, an inventory of all [A] On the Rights of the Naked Owner
property which shall contain appraisal of movables 1. He may deliver the property to the usufructuary; or
and description of the condition of immovables; and 2. He may choose retention of property as administrator
2. To give security binding himself to fulfill obligations. where the UF gets the net proceeds minus expenses
of administration; or
Exceptions: 3. He may demand receivership or administration by
A. Inventory is not required when: another of the real property, sale of movable, the
1. No one will be prejudiced thereby as long as the conversion or deposit of credit instruments, or the
naked owner consents [Art. 585] investment of cash or profits.
2. In case of waiver by the naked owner
[B] On the Rights of the Usufructuary
B. Security is not required when: 1. He cannot possession property until he gives security
1. No one will be prejudiced thereby provided naked 2. He cannot administer property nor lease such
owner consents [Art. 585] 3. He cannot collect credits that have matured nor invest
2. In case of waiver by naked owner them unless court of N.O. consents.
3. When usufructuary is the donor of the property, the 4. He can alienate his right to the usufruct since the
naked owner should be grateful enough not to require failure to give security does not extinguish usufruct,
the security [Art. 584] but the grantee can only possession from the moment
4. In case of caucion juratoria or promise under oath. security is given.

ARTICLE 584 ARTICLE 587

The provisions of No. 2 of the preceding article shall not If the usufructuary who has not given security claims, by
apply to the donor who has reserved the usufruct of the virtue of a promise under oath, the delivery of the furniture
property donated, or to the parents who are usufructuaries necessary for his use, and that he and his family be allowed
of their children’s property, except when the parents to live in a house included in the usufruct, the court may
contract a second marriage. grant this petition, after due consideration of the facts of the
case.
NOTE: The security exemption also applies to parents as well
who hold their children’s property in usufruct. The same rule shall be observed with respect to implements,
tools and other movable property necessary for an industry,
ARTICLE 585 or vocation in which he is engaged.
The usufructuary, whatever may be the title of the usufruct,
may be excused from the obligation of making an inventory If the owner does not wish that certain articles be sold
or of giving security, when no one will be injured thereby. because of their artistic worth or because they have a
sentimental value, he may demand delivery to him upon his
giving security for the payment of the legal interest on their
NOTE: The law says “may” means he is not always excused
appraised value.
because the exemption is dependent on the naked owner.
Caucion Juratoria
ARTICLE 586
Should the usufructuary fail to give security in the cases in It is a sworn duty to take good care of the property and return
which he is bound to give it, the owner may demand that the the same at the end of the usufruct. It takes the place of the
immovables be placed under administration, that the bond or security and is based on necessity or humanity. This
movables be sold, that the public bonds, instruments of happens when a poor family acquires by inheritance, the
credit payable to order or to bearer be converted into usufruct of a badly needed house.
registered certificates or deposited in a bank or public
institution, and that the capital or sums in cash and the Requisites Before Caucion Juratoria is Allowed
proceeds of the sale of the movable property be invested in
1. Proper court petition
safe securities.
2. Necessity for delivery of furniture, implements or
The interest on the proceeds of the sale of the movables and house in the usufruct
that on public securities and bonds, and the proceeds of the 3. Approval of the court
property placed under administration, shall belong to the 4. Sworn promise
usufructuary.
Restriction: He cannot alienate or lease for this means he does
Furthermore, the owner may, if he so prefers, until the
not need them.
usufructuary gives security or is excused so from doing,
retain in his possession the property in usufruct as
administrator, subject to the obligation to deliver to the When Does Not Apply: Caucion juratoria does not apply when
usufructuary the net proceeds thereof, after deducting the the usufructuary is exempted from giving security. A caucion
sums which may be agreed upon or judicially allowed him for juratoria only if he is required but cannot afford to give required
such administration. security.
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ARTICLE 588 The replacement should be made from the young produced, if
After the security has been given by the usufructuary, he unable Paras suggest in cash otherwise the law is defeat.
shall have a right to all the proceeds and benefits from the
day on which, in accordance with the title constituting the [B] When there is no obligation to replace:
usufruct, he should have commenced to receive them.
1. If there is total loss of the animals because of some
unexpected or unnatural loss (like some contagion or
Retroactive Effect of the Security Given
nay other uncommon event – but UF has no fault.
Once the bond is given, there is retroactivity. Hence if usufruct
2. If there is partial loss like (1).
is given November 11, 2018 but security was given December
17, 2018, the usufructuary is entitled to all the proceeds and
NOTE: The remains however must be returned to the owner
the benefits of the usufruct from November 11. and same with partial loss.

ARTICLE 589
The usufructuary shall take care of the things given in RULES ON REPAIRS
usufruct as a good father of a family.
ARTICLE 592
NOTE: He has a duty to take care of the property. The usufructuary is obliged to make the ordinary repairs
needed by the thing given in usufruct.
ARTICLE 590
A usufructuary who alienates or leases his right of usufruct By ordinary repairs are understood such as required by the
shall answer for any damage which the things in usufruct wear and tear due to the natural use of the thing and are
may suffer through the fault or negligence of the person who indispensable for its preservation. Should the usufructuary
substitutes him. fail to make them after demand by the owner, the latter may
make them at the expense of the usufructuary.
Liability of Usufructuary for Acts of Substitute
Duty to Make Ordinary Repairs
1. The UF is made liable for acts of the substitute through
For the UF to be responsible for ordinary repairs, the following
fault, negligence or even deceit. While the substitute
conditions must be present:
answers to the UF, the UF answers to the N.O.
1. They are required by Normal or natural use
2. Even when there is a sub-usufructuary, it is till the UF
2. They are needed for Preservation
who answers to the N.O. for the ordinary repairs, taxes
3. They must have occurred During the usufruct
on the fruits and others.
4. They must have happened with or without Fault of the
UF (in case of fault UF pays damages).
ARTICLE 591
If the usufruct be constituted on a flock or herd of livestock,
the usufructuary shall be obliged to replace with the young NOTE: If the naked owner had demanded the repair, and the
thereof the animals that die each year from natural causes, UF still fails to do so, the owner may make them personally or
or are lost due to the rapacity of beasts of prey. thru another at the expense of the UF.

If the animals on which the usufruct is constituted should all Ordinary Repairs, Definition
perish, without the fault of the usufructuary, on account of
Those required by the wear and tear due to the natural use of
some contagious disease or any other uncommon event, the
usufructuary shall fulfill his obligation by delivering to the the thing and are indispensable for its preservation.
owner the remains which may have been saved from the
misfortune. ARTICLE 593
Extraordinary repairs shall be at the expense of the owner.
Should the herd or flock perish in part, also by accident and The usufructuary is obliged to notify the owner when the
without the fault of the usufructuary, the usufruct shall need for such repairs is urgent.
continue on the part saved.
Rule on Extraordinary Repairs
Should the usufruct be on sterile animals, it shall be
The naked owner shall be liable but the UF is obliged to notify
considered, with respect to its effects, as though constituted
on fungible things. the owner when the need for such repairs is urgent.

Usufruct on Livestock ARTICLE 595

If the owner should make the extraordinary repairs, he shall
have a right to demand of the usufructuary the legal interest
[A] When there is obligation to replace: on the amount expended for the time that the usufruct lasts.
1. If some animals die from natural causes; or
2. If some animals are lost due to the rapacity of beasts Should he not make them when they are indispensable for
of prey. the preservation of the thing, the usufructuary may make
them; but he shall have a right to demand of the owner, at the
NOTE: Even though the cause may be fortuitous, there is the termination of the usufruct, the increase in value which the
immovable may have acquired by reason of the repairs.
duty to replace, because such loss is more or less expected.
 NOTES ON PROPERTY | SANTIAGO with DELA CERNA, LUZ and PIANG 76

Liability for Extraordinary Repairs ARTICLE 597

The taxes which, during the usufruct, may be imposed
directly on the capital shall be at the expense of the owner.
Kinds of Extraordinary Repairs, Liability
1. Caused by natural use but not needed for preservation If the latter has paid them, the usufructuary shall pay him the
proper interest on the sums which may have been paid in
a. Naked owner shall pay whether notified or that character; and, if the said sums have been advanced by
not by UF but he is not obliged. the usufructuary, he shall recover the amount thereof at the
termination of the usufruct.
2. Caused by abnormal or exceptional circumstances and
needed for preservation (earthquake). Rules on Taxes Imposed Directly on the Capital
1. If paid by the naked owner, he can demand legal
a. Still the naked owner shall pay but here the interest on the sum paid.
UF is allowed to make them with the right to 2. If advanced, in the meantime, by the usufructuary, said
get the increase in value and the right of usufructuary –
retention until paid at the termination of the a. Should be reimbursed the amount paid
usufruct provided there was notification and without legal interest;
a failure by N.O. to repair. b. Is entitled to retention until paid.

3. Caused by abnormal or exception use but are not ARTICLE 598

needed for preservation. If the usufruct be constituted on the whole of a patrimony,
and if at the time of its constitution the owner has debts, the
provisions of Article 758 and 759 relating to donation shall
a. Still the naked owner whether notified or not,
be applied, bot with respect to the maintenance of the
but UF cannot compel N.O. to make them usufruct and to the obligation of the usufructuary to pay such
nor is the UF allowed to make them, even if debts.
N.O. has failed to make them for there is no
necessity for preservation. The same rule shall be applied in case the owner is obliged,
at the time the usufruct is constituted, to make periodical
Right of the Naked Owner payment, even if there should be no known capital.
Generally, the naked owner pays for the extraordinary repairs
mainly because it is his property. Rules Governing Payments of Debts of Naked Owner
When usufruct is a universal one, which is constituted on the
But, if he makes the extraordinary repairs, he can demand from whole patrimony, and the naked owner has debts or is obliged
the UF the legal interest on the amount for the duration of the to make periodical payments, the rules are -
usufruct.
[A] If there is stipulation to pay the debts of the naked owner,
Rights of the Usufructuary Article 758 is applied:
1. Get increase in value plus the value or reimbursement 1. Pay only for prior debts and not for debts contracted
for the expenses. after the usufruct has been, unless there is declaration
2. Right of retention until paid. to the contrary;
2. Pay only for debts up to the value of the property in
Question: May usufruct be constituted over a real property in usufruct unless, the contrary is intended.
favor of an alien? – Yes.
[B] If there is no stipulation to pay the debts of the naked
RAMIREZ v. VDA. DE RAMIREZ 111 SCRA 704 owner, Article 759 is applied:
A usufruct over parcels of land made by a Filipino in favor of an 1. As a rule, there is no obligation to pay;
Austrian woman is valid because ownership of the land is not 2. The only exception is the when the usufruct was
vested in the usufructuary. What is proscribed by the constituted in fraud of creditors.
Constitution is ownership by an alien.
In fraud of creditor
ARTICLE 596 When at the time of the constitution of the usufruct, the naked
The payment of annual charges and taxes and of those owner did not reserve sufficient property to pay his debts. This
considered as a lien on the fruits, shall be at the expense of is presumed.
the usufructuary for all the time that the usufruct lasts.
Applicability of the Article
Charges and Taxes 1. If the usufruct is a universal one – constituted on the
The usufructuary should pay for: whole of a patrimony; and
1. Annual charges on the fruits 2. The naked owner
2. Annual Taxes on the fruits a. Has debts
3. Theoretically, annual taxes on the land. b. Or obliged to make periodical payments
 NOTES ON PROPERTY | SANTIAGO with DELA CERNA, LUZ and PIANG 77

ARTICLE 599 Notification by Usufructuary, When Required

The usufructuary may claim any matured credits which form
a part of the usufruct if he has given or gives the proper
[A] When Notification is Required
security. If he has been excused from giving security or has
not been able to give it, or if that given is not sufficient, he 1. If a third party commits acts prejudicial to the rights of
shall need the authorization of the owner, or of the court in the ownership – like disturbance of possession
default thereof, to collect such credits. 2. If urgent repairs are needed
3. If an inventory (at the beginning of the usufruct) is to
The usufructuary who has given security may use the capital be made.
he had collected in any manner he may deem proper. The
usufructuary who has not given security shall invest the said
[B] Effect of Non-Notification
capital at interest upon agreement with the owner; in default
of such agreement, with judicial authorization; and, in every 1. In case of (1) above, the UF is liable for damages, as if
case, with security sufficient to preserve the integrity of the they had been caused thru his own fault.
capital in usufruct. 2. In case of (2), usufructuary cannot even make the
extraordinary repairs needed;
Rules on Usufruct of a Matured Credit 3. In case of (3), the inventory can go on, but the naked
1. If UF has given security, the collection and investment owner may later on point out discrepancies and
can be done without approval of the court or of the omissions in the inventory.
naked owner.
2. If no security, or when he is exempted, or when there ARTICLE 602
was only a caucion juratoria, the collection and also The expenses, costs, and liabilities in suits brought with
regard to the usufruct shall be borne by the usufructuary.
the investment must be done with court approval or
consent of the naked owner.
Liability for Expenses and Costs
Who owns? The naked owner but as to the usufruct of such This article particularly applies only when the usufructuary has
credit – it goes to the usufructuary. lost the case.

Failure to Collect Due to Fault or Negligence CHAPTER 4

The usufructuary shall be liable if the credit that has matured EXTINGUISHMENT OF USUFRUCT
(due and demandable) is not collected because of his fault or
negligence ARTICLE 603
Usufruct is extinguished:
ARTICLE 600 (1) By the death of the usufructuary, unless a contrary
The usufructuary of a mortgaged immovable shall not be intention clearly appears;
obliged to pay the debt for the security of which the mortgage (2) By the expiration of the period for which it was
was constituted. constituted, or by the fulfillment of any resolutory
condition provided in the title creating the usufruct;
Should the immovable be attached or sold judicially for the (3) By merger of the usufruct and ownership in the
payment of the debt, the owner shall be liable to the same person;
usufructuary for whatever the latter may lose by reason (4) By renunciation of the usufructuary;
thereof. (5) By the total loss of the thing in usufruct;
(6) By the termination of the right of the person
constituting the usufruct;
Usufruct of Mortgaged Immovable
(7) By prescription.
The naked owner may be made laible for any loss suffered by
the UF by reason of the judicial sale of the immovable. Extinguishment of Usufruct

How Liability is Extinguished

[1] Death of Usufructuary Ends the Usufruct, Exceptions
1. Constituting usufruct over equivalent estate
1. In case of multiple usufructs – last survivor
2. Payment of a periodical pension equivalent to loss
2. In case there is a period fixed based on number of
3. Or in any other similar way
years that would elapse before a person would reach
a certain age, unless the period was expressly granted
Usufructuary Rights as Mortgage
only in consideration of the existence of such person,
Of course if the usufructuary right is the one mortgage, the debt
in which case it ends at his death.
shall be paid by the usufructuary.
3. In case contrary intention clearly appears.

ARTICLE 601 [2a] Expiration of Period

The usufructuary shall be obliged to notify the owner of any
act of a third person, of which he may have knowledge, that Example if the usufruct is for 5 years, it ends at the lapse of 5
may be prejudicial to the rights of ownership, and he shall be years, unless the UF dies prior to the end of 5 years. But in case
liable should he not do so, for damages, as if they had been of real property it must be recorded to bind third persons. The
caused through his own fault. term should not exceed 50 years for juridical persons.
 NOTES ON PROPERTY | SANTIAGO with DELA CERNA, LUZ and PIANG 78

[2b] Fulfilment of Resolutory Condition ARTICLE 604

Suppose A is the usufructuary of land unless he marries X. Then If the thing given in usufruct should be lost only in part, the
marriage to X ends the usufruct. If the usufruct is on real right shall continue on the remaining part.
property or on real right over real property, the resolutory
condition must be registered to bind third persons. NOTE: This is self-explanatory.

[3] Merger of Usufruct and Ownership in Same Person

ARTICLE 605
Usufruct cannot be constituted in favor of a town,
Example H was the UF of land owned by X. X died leaving in his
corporation, or association for more than fifty years. If it has
will, the naked ownership of the land to H. The usufruct is now been constituted, and before the expiration of such period
extinguished because now,, H is both the naked owner and the the town is abandoned, or the corporation or association is
UF which is the full ownership. dissolved, the usufruct shall be extinguished by reason
thereof.
[4] Renunciation or Waiver by the Usufructuary
A is the usufructuary of B’s land. Later, A waived his usufruct NOTE: The period is 50 years. Usufruct is not the same as trust.
willingly and voluntarily. The usufruct is now extinguished. The
renunciation must be made expressly. Renunciation need not ARTICLE 606
the consent of the naked owner. A usufruct granted for the time that may elapse before a third
person attains a certain age, shall subsist for the number of
years specified, even if the third person should die before the
[5] Total Loss of the Thing in Usufruct period expires, unless such usufruct has been expressly
Total loss ends the usufruct, but not partial loss, for in latter granted only in consideration of the existence of such
case, the usufruct, continues on the remaining part. In case of person.
building and in cases of expropriation.
Usufruct for Time Before Third Person Reach Age
[6] Termination of the Right of the Person Rule: Karlena gave his land in usufruct to Hannah until June
Constituting the Usufruct becomes 40 years old. The usufructuary was constituted when
A thought he was the owner of a parcel of land. A gave its June was 20 years old. This means that the usufruct should last
usufruct to B for 5 years. If at the end of 2 years, C the real owner for 20 years, even if June dies before attaining the age of 40. If
gets land, it necessarily follows that B’s usufruct is extinguished, therefore June dies at the age of 30, the usufruct in Hannah’s
without prejudice to B being allowed to continue by C. favor generally continues.

If the usufructuary has a sub-usufructuary, the sub-usufruct Exception: If in the example given, Hannah was made as a
ends at the time the usufruct is extinguished, because by that usufructuary only because he had to support June, it follows
time, the right of the usufructuary to constitute the sub- that the usufruct was expressly constituted only in
usufruct has ended. If the sub-usufructuary dies ahead of the consideration of the existence of June. Thus on June’s death the
usufructuary, the sub-usufruct ends, unless a contrary intention usufruct ends.
appears.
ARTICLE 607
What if the naked owner dies? It does not extinguish the If the usufruct is constituted on immovable property of
usufruct for the rights of the naked owner are transmitted to which a building forms part, and the latter should be
the heirs. destroyed in any manner whatsoever, the usufructuary shall
have a right to make use of the land and the materials.
[7] Prescription
The same rule shall be applied if the usufruct is constituted
This refers acquisitive prescription by a stranger either of the on a building only and the same should be destroyed. But in
usufruct (here the UF is no longer entitled to the usufruct) or of such a case, if the owner should wish to construct another
the naked ownership (for here the right of the person building, he shall have a right to occupy the land and to make
constituting the UF has been terminated or resolved). Mere use of the materials, being obliged to pay to the usufructuary,
non-user by the UF of the usufruct does not terminate the during the continuance of the usufruct, the interest upon the
usufruct, unless it is also a renunciation. sum equivalent to the value of the land and of the materials.

[8] Other Causes of Extinguish of Usufruct Usufruct on a Building And/Or the Land Concerned
1. Annulment
2. Rescission [A] Usufruct on Both Building and the Land
3. Mutual withdrawal But the building is destroyed in any manner whatsoever before
4. Legal causes ending legal usufruct, when attainment the expiration of the usufruct:
the age of majority extinguishes parental usufruct. 1. Usufruct on building has ended but usufruct on the
a. Abuse or misuse does not extinguish unless land continues;
it is lost 2. UF is still entitled to use land and remains of building
b. Non-fulfillment of resolutory condition does 3. If N.O. wants to rebuild but UF refuses, it is the UF who
not extinguish usufruct (it never existed) prevails for the use of the land is still his for period.
 NOTES ON PROPERTY | SANTIAGO with DELA CERNA, LUZ and PIANG 79

[B] Usufruct on the Building Alone ARTICLE 609

But the Building Is Destroyed Before Termination of Period Should the thing in usufruct be expropriated for public use,
1. Usufruct on building ends, but UF can still make the owner shall be obliged either to replace it with another
2. UF is still entitled to the use of the land (Why? In using thing of the same value and of similar conditions, or pay the
usufructuary the legal interest on the amount of the
the building before, he used the land)
indemnity for the whole period of the usufruct. If the owner
3. But unlike in [A] the naked owner has preferential right chooses the latter alternative, he shall give security for the
to its use so the N.O can rebuild and he shall prevail payment of the interest.

Persons At Fault Must Indemnify Rules in Case of Expropriation

Should the destruction be due to the fault of the naked owner,
usufructuary, or a third person, person at fault must indemnify. [A] If naked owner alone was given indemnity, he has the
option to:
ARTICLE 608 1. To replace with equivalent things;
If the usufructuary shares with the owner the insurance of
2. Or to pay the UF legal interest on the indemnity
the tenement given in usufruct, the former shall in case of
loss, continue in the enjoyment of the new building, should
one be constructed, or shall receive the interest on the [B] If both were separately given indemnity
insurance indemnity if the owner does not wish to rebuild. Each owns the indemnity given to him, the usufruct
being totally extinguished.
Should the usufructuary have refused to contribute to the
insurance, the owner insuring the tenement alone, the latter [C] If usufructuary alone was given indemnity
shall receive the full amount of the insurance indemnity in He must give it to the naked owner and compel him
case of loss, saving always the right granted to the
to return either the interest or to replace the property. He may
usufructuary in the preceding article.
even deduct the interest himself, if the naked owner fails to
object.
Payment of Insurance of Tenement Held in Usufruct
ARTICLE 610
This article distinguishes between a case where both the A usufruct is not extinguished by bad use of the thing in
usufructuary and the naked owner share in the payment of the usufruct; but if the abuse should cause considerable injury to
insurance premium; and a case where it is only the naked owner the owner, the latter may demand that the thing be delivered
who pays because the usufructuary refused (deliberate non- to him, binding himself to pay annually to the usufructuary
sharing and not mere failure to contribute or lack of payment the net proceeds of the same, after deducting the expenses
because of ignorance of the fact that insurance is being paid). and the compensation which may be allowed him for its
administration.
[A] If the Naked Owner and the Usufructuary Share in the
Effect of Bad Use of the Property Held in Usufruct
Premiums and Property is Destroyed
1. If owner constructs a new building the usufruct
continues on the new building. [1] Bad Use Without Injury to Naked Owner
2. If owner does not construct a new building, the naked Usufruct continues, naked owner cannot demand the
owner gets the insurance indemnity but should pay administration by himself.
the UF the interest (fruits) thereon.
[2] Bad Use Which Causes Injury to Naked Owner
[B] If Naked Owner Pays for Insurance and Usufructuary has Usufruct continues; but naked owner can demand
Refused to Share and the Property is Destroyed delivery to and administration by him, but he will be obliged to
1. Naked owner gets the whole indemnity (with no pay net proceeds to UF (N.O. being administrator he cannot sell
obligation to give the interest thereon to the UF) or alienate the usufructuary right, but as N.O. he can sell the
2. It usufruct was on the building and the land, the property without prejudice to the usufruct).
usufruct continue on the land and the materials.
3. N.O. may rebuild with or without the approval of UF ARTICLE 611
A usufruct constituted in favor of several persons living at
but he must pay interest on the value of the land and
the time of its constitution shall not be extinguished until the
the old materials that may have been used.
death of the last survivor.

[C] If Naked Owner Alone Paid for Insurance but there is Rules in Case of a Multiple Usufruct
Failure or Omission (Not Refusal) of Usufructuary to Share
Here, the effect is the same as if there was a SHARING,
[A] If constituted simultaneously, it is evident that all the UFs
but the usufructuary must reimburse the naked owner his (the
must be alive at the time of constitution. Here, it is death of the
usufructuary’s) share of the insurance premium.
last survivor which, among other causes, terminates usufruct.

[D] If Usufructuary Alone Pays Insurance Premium

[B] If constituted successively (one after the other). Article 611
1. Insurance indemnity goes to UF alone
also applies.
2. Usufruct continues
 NOTES ON PROPERTY | SANTIAGO with DELA CERNA, LUZ and PIANG 80

ARTICLE 612 4. To pay annual charges and taxes and those considered
Upon the termination of the usufruct, the thing in usufruct as a lien on the fruits
shall be delivered to the owner, without prejudice to the 5. To notify the owner of any act of a third person that
right of retention pertaining to the usufructuary or his heirs may be prejudicial to the right of ownership
for taxes and extraordinary expenses which should be
6. To pay the expenses, costs and liabilities in suits with
reimbursed. After the delivery has been made, the security
or mortgage shall be cancelled. regard to the usufruct.

Rights and Obligation at the Termination of Usufruct [3] Upon Termination of the Usufruct
His obligation upon the termination of the usufruct is to deliver
the thing to owner, without prejudice to the right of retention
[A] On the Part of the Usufructuary
pertaining to him or his heirs for taxes and extraordinary
1. Return the property to the naked owner, he has rights
expenses which should be reimbursed (612).
2. Retain the property till he is reimbursed for the
a. Taxes on the capital paid by him
When Usufructuary is Excused from Giving Security
b. Indispensable extraordinary repairs
1. When no one will be injured by lack of bond or of the
3. Remove the removable improvements or set them off
security (585)
against the damages he has caused – removal may be
2. When the donor has reserved the usufruct of the
done either during or after usufruct.
property donated (584)
3. In case of parents who are usufructuaries of their
[B] On the Part of the Naked Owner
unemancipated children’s property, except when the
1. Cancel the security or mortgage (provided the UF has
parents contracted a second marriage (584)
complied with all his obligation)
4. In the case of usufructs subjects to caucion juratoria
2. Must in case of rural leases, respect leases made by
under Article 587.
the UF till the end of the agricultural year.
3. Make reimbursements to the usufructuary in the
proper case.

ADDITIONAL ANNOTATIONS

Distinction of Usufruct from Lease

USUFRUCT LEASE
Nature of Always a real right Only becomes real
Right right when
registered
Constitution By law, will or As a rule, is
agreement, last will constituted by a
or testament or by contract
prescription
Person Owner constitutes Need not be
constituted by the
owner
Extent Right to use More limited
Enjoy the fruits
Repairs Ordinary repairs Lessee is not
Taxes Responsible for the Lessee is not
taxes on the fruits

Summary of Obligations of the Usufructuary

[1] At the Commencement of Usufruct

1. Make an inventory of property
2. Give necessary security

[2] During the Usufruct

1. Take care of property as a good father of family
2. Make ordinary repairs
3. Notify owner in case need for extraordinary repairs is
urgent