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TOELNTINO | PROPERTY | AUF SOL 2014 Page 1 | Bantay

TITLE VI:USUFRUCT

CHAPTER I:USUFRUCT IN GENERAL

ART: 562:

DEFINITION OF USUFRUCT : De Buen defines usufruct as areal right, of a temporary nature, which authorizes its holder toenjoy all the benefits which results from the normal enjoymentof another s property, with the obligation to return, at thedesignated time, either the same thing or, in special cases, itsequivalent.

USE AND HABITATION : under the old Civil Code, the rights ofuse and habitation were also recognized and provided for.

ART. 524 o f that Code provides: use gives the right toreceive, out of the fruits of anothers property, whatevermay be sufficient for the needs of the usuary and of hisfamily, even should the latter increase. Habitation givesto the person having this right the authority to occupy inanother' s house the apartment necessary for himselfand for the members of' his family.

These rights have been omitted from the present Code.o The reason for their elimination, according to the

Code Commission, is that these legal institutionsare unknown in the Philippines.

o During the Japanese occupation of thePhilippines, however, there were many cases ofuse and habitation (particularly the latter) inplaces of evacuation.

o These rights may now be considered as personaleasements, under ART. 614.

EXTENT OF USUFRUCT : usufruct is a real right and includesboth the jus utendi and the jus fruendi .

The usufructuary, however, is bound to preserve theform and substance of the thing in usufruct.

This means preservation, not only of the material ofwhich the object is made up, but also of the form whichmakes the thing suitable for the particular purpose forwhich the owner intends it.

o Thus, if the usufruct is on a fishpond, it must bepreserved as a fishpond; if on a ricefield, it mustbe preserved as a ricefield.

IN ABNORMAL USUFRUCT : the last part of this article,recognizing the possibility of' alteration, means that thelaw or the will of the parties may allow the modificationof the substance of the thing, admitting the quasi-usufruct of the Roman Law.

o This has given rise to the classification ofusufructs into normal and abnormal .

o Alteration of the substance of the thing is allowedin the latter.

OBJECT OF USUFRUCT; RIGHTS : at present it can be saidthat all property can be the object of usufruct.

Thus, a usufruct can be created over a right, so long asthe right has its own independent existence.

A servitude, having no existence independent of thetenements to which it attaches, cannot be the object ofusufruct.

CONSUMABLE THINGS

: consumable things cannot beenjoyed without consuming them; hence, there can beno right of usufruct independent of the right ofownership with respect to such things.

o But since the law recognizes usufruct over allkinds of things, if the thing should beconsumable, the usufruct should be consideredas on their value if they were appraised, or on anequal quantity and quality if they were notappraised.

UNPRODUCTIVE THINGS : usufruct can be createdeven on sterile or absolutely unproductive land, orthings for mere pleasure, such as promenades, statues

or paintings, even if they do not produce any utility.

ART. 563:

KINDS AS TO CAUSE : usufruct is classified as to cause into:

LEGAL VOLUNTARY MIXED

That provided bylaw, such as theusufruct of theparents overproperty of theirunemancipatedchildren.

That created bythe will of privatepersons, either byact inter vivos ,such as contractsand donations, orby act mortiscausa , such astestaments.

By prescription.

ART. 564:

OTHER CLASSIFICATIONS : under this article, usufruct isclassified as follows:

1) TOTAL or PARTIAL: depending whether it is constitutedon the whole or part of a thing.

2) SIMPLE and MULTIPLE: depending upon whether it isconstituted in favor of one or several persons.

o The latter into: SIMULTANEOUS andSUCCESSIVE, whether they are to enjoy it at thesame time or one after another.

3) PURE, CONDITIONAL and WITH A TERM.4) Usufruct of THINGS or of RIGHTS, depending upon

whether one or the other is the object.


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o A usufruct over a right if the same nature as theright which is burdened.

Thus, a usufruct over a real right is also areal right, and a usufruct over a personalcredit is in itself a credit.

ART. 565:

WILL OF PARTIES PREVAILS : the rights and duties of theusufructuary provided by law may be modified or eliminated bythe parties.

AUTHORITY TO ALIENATE : the title constituting theusufruct may validly authorize the usufructuary toalienate the thing itself held in usufruct.

o If there are qualifications or restrictions on thisauthority, they must be observed.

o If the usufructuary is authorized to alienate thething in case of necessity, it is the usufructuarywho determines the question of necessity.

CHAPTER 2:RIGHTS OF THE USUFRUCTUARY

ART. 568:

RIGHTS OF USUFRUCTUARY : the usufructuary has the rightto enjoy the property, to the same extent as the owner, but onlywith respect to its use and the receipt of its fruits.

He has a right to administer the property in usufruct. With respect to the use of the property, he has the right

to receive from the thing all the service or benefit that itcan give.

o This is recognized by ART. 571, which gives the

usufructuary the right to enjoy all the benefitsinherent in the thing.

He cannot, however, extract products which do notconstitute fruits, because he is bound to preserve theform and substance of the thing.

Thus, he cannot convert an orchard into a grazing field,nor can he convert a ricefield into fishpond.

But dividends from shares of a corporation are fruits,whether in the form of cash or of stock dividends, andtherefore belong to the usufructuary.

Usufructuary rights may be transferred, assigned orotherwise disposed of' by the usufructuary.

Like any other property rights, they are not exempt fromexecution and can be sold at public auction.

The fruits of a thing are those which it may produce atmore or less regular intervals, without diminishing itssubstance.

o They belong to the usufructuary.o On the other hand, there are products of a thing

which when taken from it diminishes itssubstance, such as minerals from mines andstones from quarries.

o They form part of the capital and do not pertain tothe usufructuary.

o However, if the owner, before the constitution ofthe usufruct, has dedicated the property to theexploitation of such products, these may betreated as fruits that shall pertain to theusufructuary.

EFFECT OF AGREEMENT : the usufructuary does not receiveall the fruits of the property when the usufruct is constitutedonly on part of the fruits, and when there is a differentagreement between the parties.

With respect to hidden treasure, the parties may alsofreely stipulate, and even agree that hidden treasurefound on the property shall belong wholly to theusufructuary.

RIGHTS OF NAKED OWNER : the owner, during the usufruct,can exercise all the rights of ownership consistent with theenjoyment of the thing by the usufructuary.

He can sell or encumber it; and it can be attached by hiscreditors.

But none of these acts can affect the rights of theusufructuary.

The grantee can take possession of the property onlyafter the expiration of the usufruct; easements createdcan be exercised only in so far as they do not prejudicethe usufructuary.

The owner may exercise all actions necessary to protecthis rights, such as the reivindicatory action, the action toremove clouds or quiet title, and in general all actionspertaining to an owner.

He is entitled to benefit from products which do notconstitute fruits of the thing.

If treasure is found on the tenement, he gets the one-half pertaining to the owner.

ART. 567:

UNGATHERED FRUITS : fruits already matured at the time ofthe termination of the usufruct, which ordinarily would havealready been gathered by the usufructuary, may remainungathered for no fault imputable to him, but because of maliceor an act imputable to the naked owner or a third person, oreven due to force mqjeure or fortuitous event.

In such cases, the fruits should be considered asbelonging to the usufructuary, pursuant to generalprinciples of law as suppletory to the provisions of theCode.

EXPENSES OF PRODUCTION : although the usufructuary isnot bound to pay the expenses of cultivation and production tothe naked owner for fruits pending at the beginning of theusufruct, he should pay such expenses to a third person whomay have incurred them, under the provisions of the last


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paragraph of this article, and under the general rule in article443, to which this article merely provides an exception in thecase of the naked owner.

ART. 568:

LEASE BY OWNERS : a lease executed by the owner beforethe creation of the usufruct is not extinguished by suchusufruct.

LEASE BY USUFRUCTUARY : the rents derived from thelease of properties in usufruct are civil fruits, and under ART.569 they accrue from day to day.

The usufructuary is entitled to receive such rents onlyup to the time of the expiration of the usufruct, if thelease still subsists after the termination of the usufruct.

Thus, if the lease is for five years, and the usufructterminates after the lease has been in force only twoyears, the usufructuary shall be entitled only to the rentsfor those two years; the rents for the remaining period ofthe lease will belong to the owner.

ART. 569:

ART. 570:

ART. 571:

ART. 572:

EFFECT OF TRANSFER OF RIGHT : the transfer or lease ofthe usufruct does not terminate the relation of the usufructuarywith the owner.

The usufructuary and his security continue to be liable infavor of the owner, for the fulfillment of the former'sobligations, because these obligations are personal andcannot be extinguished by change of debtor without theconsent of the creditor or owner.

The usufructuary will be liable to the owner for damagescaused by the fault or negligence of the transferee orthe lessee.

The usufruct does not terminate upon the death of thetransferee, but it terminates upon the death of theusufructuary who has made the transfer.

ALIENATION OF THING IN USUFRUCT : the usufructuary notbeing an owner, cannot alienate or dispose of the objectsincluded in the usufruct.

Thus, he cannot renounce a servitude in favor of thetenement in usufruct; neither can he mortgage or pledgethe thing, even if they constitute stocks or bonds.

The right of usufruct, however, is sometimes convertedinto a right of ownership, and the usufructuary maydispose of the things in the following cases:

(1) When the things are consumable (ART. 574),

(2) When the things by their nature are intended forsale, such as the merchandise in a commercialestablishment, and

(3) When the things, whatever their nature, aredelivered under appraisal as equivalent to theirsale; but this does not refer to the obligatoryroutine appraisal of movables in the making ofthe inventory under ART. 583.

SALE OF FUTURE CROP : the usufructuary may sell a futurecrop.

If the usufruct terminates before the harvest, what arethe legal consequences of such sale?

If the sale is considered valid,the owner is entitled toreceive the price from thevendee.

If the price has been paid inadvance to the usufructuary,he or his estate must deliver itto the owner.

The owner, however, may refuse to recognize the sale,which would be void as to him.

o The sale of a future crop is a sale of property notbelonging to the usufructuary; it is void unlessratified by the owner.

o The only recourse of the vendee in this case is torecover from the usufructuary or his estate theamount that he has paid.

DE BUEN thinks that this sanction is too harsh.o He suggests that a more equitable solution is to

apply by analogy the provisions of ART. 568,dividing the price of the sale between the

usufructuary and the owner in proportion to thelength of possession of each in the agriculturalyear, but keeping the sale as valid.

o The provisions of ART. 567, PAR. 2, however,are clear and definite; the fruits growing at thetime the usufruct terminates belong to the owner.

o The provisions of ART. 568, therefore, cannot beapplied.

ALIENATION OF LEGAL USUFRUCT : VALVERDE believesthat o

VALVERDE MANRESA, MORELL,CAMPUZANO, SPANISH SC

and CASTAN

Only voluntary usufructs canbe alienated under this article,because legal usufructs arecreated by law for particularpersons in view of certainrelations and therefore cannotbe enjoyed by others who do

While the usufruct of thesurviving spouse under theold Civil Code could bealienated, that of the parentsover the property ofunemancipated children couldnot be transferred because it


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not have such relations. is affected by importantobligations in favor of saidchildren.

*** The usufruct of the surviving spouse having been abolishedby the present Code, it seems that now there can be no conflictof views; the legal usufruct of the parents cannot be alienated.

ART. 573:

NATURE OF DETERIORATION : in the natural use of' things,there may occur certain defects calling for repairs for theirpreservation, independent of the deterioration produced by ageand time which slowly and without appreciable effects changesthe aspect of the things from day to day.

It is to this latter kind of deterioration that the presentarticle refers.

LIABILITY TO INDEMNIFY : there are some things whichdeteriorate by use and become almost completelyunserviceable, such as clothes and furniture; but even in suchcases, it is sufficient if the usufructuary returns them in thecondition in which they may be found at the time of theexpiration of the usufruct.

The law renders the usufructuary liable only when hecauses deterioration by his fraud or negligence.

Although there is no express provision on the matter, ifthe usufructuary does not return the things upon theexpiration of the usufruct, he should pay an indemnityequivalent to the value of the things at the time of suchexpiration.

ART. 574:

USUFRUCT OVER CONSUMABLE THINGS : this special kindof usufruct, improperly called QUASI-USUFRUCT, is in realityconverted into a simple loan.

It has been included in this part of the Code, becauseuniversal usufructs may often include consummables.

Usufructs over consummables exclusively may be veryrare, but they can be constituted, and it is to them thatthe last part of ART. 562 refers when it provides, un lessthe title constituting it or the law otherwise provides, in

connection with the obligation of the usufructuary topreserve the form and the substance of the thing inusufruct.

Thus, a sum of money can be the subject of usufructs. The usufruct in this particular case is not upon the

consummable things themselves which are delivered tothe usufructuary, but upon the sum representing theirvalue or upon a quantity of things of the same kind andquality."

o The usufructuary becomes the owner of thethings in usufruct such as a sum of money or aquantity of liquids or grain; the grantor becomesmerely a creditor entitled to the return of theirvalue or of things of the same quantity andquality, according to the circumstances.

ART. 575:

ART. 576:

ART. 577:

ART. 578:

ART. 579:

RIGHTS OF USUFRUCTUARY : whenever the usufructuarycan remove the improvements without injury to the property inusufruct, he has a right to do so, and the owner cannot preventhim from doing so even upon payment of their value.

This right, however, does not involve an obligation;hence, if the usufructuary does not wish to exercise it,he cannot be compelled by the owner to remove theimprovements.

In the exercise of the right granted by this article, theusufructuary may demolish or destroy the improvement,such as a building, provided he leaves the land as it wasbefore the construction of such improvement.

SC OF SPAIN MANRESA

The usufructuary who plantstrees on the land in usufructcannot cut and removethem, because suchimprovements cannot beremoved without injury to thethings.

He CORRECTLY disagreeswith this holding, becausealthough the cutting of thetrees may injure such trees,it will not injure the landwhich is the thing given inusufruct and to which thelast part of the presentarticle refers.

The right of the usufructuary to remove improvementscan be enforced only against the owner, but not againsta purchaser in good faith to whom a clean title has been

issued.

WHY NO INDEMNITY : if the improvements made by theusufructuary were subject to indemnity, we would have adangerous and unjust situation in which the usufructuary coulddispose of the owner's funds, by compelling him to pay forimprovements which perhaps he would not have made.


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ART. 580:

NATURE OF SET-OFF : this article refers to compensation ofvalues, and not of rights and obligations.

It is necessary that the improvements should haveincreased the value of the property, and that thedamages are imputable to the usufructuary.

The increase in value and the amount of damages areset off against each other; if the damages exceed theincrease in value, the difference should be paid by theusufructuary as indemnity; but if the increase in valueexceeds the damages, and the improvements are ofsuch nature that they can be removed without injury tothe thing in usufruct, the settlement of the differencemust be agreed upon by the parties.

If the improvements are of such a nature that theycannot be removed without injury, the excess in valueaccrues to the owner.

ART. 581:

ART. 582:

EFFECT OF THE PARTITION : the right of the usufructuary isnot affected by the division of' the property in usufruct amongthe co-owners.

CHAPTER 3:OBLIGATIONS OF THE USUFRUCTUARY

ART. 583:

NOT REQUISITE TO RIGHT : these requirements are notconditions precedent to the commencement of the right of' the

usufructuary, but merely to the entry upon the possession andenjoyment of the property.

Even if they are not first complied with, the usufruct willcommence according to its title, but the provisions ofarticle 586 will apply with respect to the disposition ofthe property.

MAKING OF INVENTORY : the law does not require theconcurrence of the owner in the making of' the inventory.

It is sufficient for the usufructuary to notify him, and hemay attend or not, personally or through an authorizedrepresentative.

If he does not attend, and subsequently he discoversomissions or errors in the inventory, he can ask for thecorrection; but he will have the burden of proving theomission or mistake.

The expenses for the making of the inventory are borneby the usufructuary, because it is his obligation to makethe inventory, and it is a prerequisite to his entry uponthe enjoyment of the property.

It may be in a private document, because nothing isprovided bylaw as to its form.

GIVING OF SECURITY : although this article provides that thesecurity is for the fulfillment of the obligations imposed uponthe usufructuary by this chapter (ARTS. 583 to 602), thisshould be understood to mean all the obligations imposedupon him as such usufructuary, whether included in this

chapter or not, such as the obligation to return the thing uponthe termination of the usufruct, provided for in ART. 612.

The security may be a personal bond, a pledge, or amortgage.

ART. 584:

ART. 585:

EXEMPTION OF USUFRUCTUARY : the usufructuary may beexcused from the obligation of making an inventory or giving asecurity in the following cases:

1) Where the owner waives the giving of a security orthe making of an inventory.

2) Where the title constituting the usufruct exempts theusufructuary from any or both of these obligations.

3) Where the usufructuary asks to be relieved fromthese obligations, und no one will be injured by suchexemption, such as in u usufruct over a periodicincome or pension.

If the naked owner refuses to grant the exemption requested, a judicial declaration thereof may be obtained, taking intoaccount the special circumstances of the usufruct.

EFFECT OF FAILURE TO MAKE INVENTORY : the codedoes not provide for the effect of the failure to make aninventory when the usufructuary is not exempt from making it.

Under the Argentine code (ARTS. 2848 and 2849), suchfailure does not affect the rights of the usufructuary toenjoy the property and its fruits; but a prima faciepresumption arises that the property was received bythe usufructuary in good condition, and even if he isalready in possession, he may still be required to makean inventory.

o The presumption arises even when theusufructuary enter upon the possession with the

consent of the naked owner.o It is submitted that these consequences are

acceptable under our law. Sanchez Roman, however, believes that the effect of

the failure to make an inventory is the same as that ofthe failure to give security, and that ART. 586 shouldapply.

o We doubt the correctness of this conclusion, inview of the omission of inventory" from article586 which mentions only security."


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o ART. 586 is similar to ART. 584, which refersonly to the security.

ART. 586:

RIGHT OF NAKED OWNER : this article grants a potestativeright to the naked owner; if he does not wish to exercise it, hemay deliver the property to the usufructuary.

The delivery of the property, however, cannot beinterpreted as a renunciation of the right to demand thesecurity.

RIGHT OF USUFRUCTUARY : the usufructuary who does notpossess the property, by virtue of the provisions of this article,may alienate his right in the same form that he holds it, withoutprejudice to the right of the transferee to give the requiredsecurity.

But a lease cannot be executed by the usufructuary.

ART. 587:

CAUCION JURATORIA : the sworn undertaking referred to inthis article is known as caucion juratoria .

The security given by the usufructuary may be apersonal bond, a pledge, or a mortgage. It is only byway of exception that the caucion juratoria is allowed,and only under the special circumstances mentioned inthis article, upon petition of the usufructuary, andaccording to judicial order.

It is permitted as a matter of common humanity. It would be lamentable, for instance, if a person with a

family in need of shelter cannot enjoy the use of a

house included in the usufruct simply because hecannot furnish the security.

Therefore a usufructuary who holds property undercaucion juratoria can neither alienate his right nor leasethe property, for that would mean that he does not needthe dwelling or the implements and furniture.

ART. 588:

EFFECT OF SECURITY : upon giving the security, theusufructuary will be entitled to all the benefits accruing sincethe time when he should have begun to receive them.

The effect of the security is thus retroactive.

ART. 589:

WHEN ACTION MAY BE BROUGHT : when damages aresuffered by the property because of the fault or negligence ofthe usufructuary, it is not necessary for the naked owner towait for the termination of the usufruct before bringing anaction to recover the proper indemnity.

ART. 590:

ART. 591:

ART. 592:

ORDINARY REPAIRS : there are two requisites for ordinaryrepairs:

1) That the deteriorations or defects arise from the naturaluse of the thing, and

2) That the repairs are necessary for the preservation ofthe thing.

The deteriorations which are caused by time or age, providedfor in ART. 573, and the destruction or consumption of thething by use, provided for in ART. 574, do not fall within theconcept of ordinary repairs.

PRIOR TO USUFRUCT : the usufructuary is bound topay only for the repairs made during the existence of theusufruct.

o He cannot be obliged to pay for the expenses forrepairs already made before he enters upon theenjoyment of the thing.

o If the defects requiring ordinary repairs existedalready at the time the usufruct began, theobligation to defray the ordinary repairs falls uponthe owner; if he does not do so, he suffers thedamages occasioned to his property, withoutresponsibility on the part of the usufructuary.

EFFECT OF RENUNCIATION : when the ordinaryrepairs are due to defects caused by the fault of theusufructuary he cannot exempt himself from liability byrenouncing the usufruct.

o He will still be liable for damages under thegeneral rule of liability for fault or negligence.

o But if the defects existing before the renunciationare occasioned by the ordinary use of the thing,the usufructuary may exempt himself frommaking the repairs by returning to the owner thefruits received during the time that the defectstook place.

o The expenses for repairs are a charge upon theenjoyment of the property; hence, if he keepsthe fruits, he must defray those expenses evenafter he has renounced the usufruct.

o All defects arising after the renunciation,however, must be repaired at the expense of theowner.

ART. 593:

ART. 594:

EXTRAORDINARY REPAIRS : the defects or deteriorationsrequiring extraordinary repairs are of two kinds:


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1) Those caused by exceptional circumstances, whether ornot they are necessary for the preservation of the thing,and

2) Those caused by the natural use of the thing, but arenot necessary for its preservation.

BOME BY OWNER : the expenses for extraordinary repairs areborne by the owner; but the usufructuary cannot compel him to

make such repairs, because the law does not impose suchrepairs as an obligation of the owner.

Neither is the usufructuary bound to make such repairsif the owner chooses not to make them; it is optional forthe usufructuary to make such repairs or not.

If the need for the repairs is urgent, such that they arerequired for preservation, the law requires theusufructuary to give notice thereof' to the owner; if it isnot urgent, there is no obligation to give notice.

In both cases, whether notice was given or not, theowner may make the repairs, and collect from theusufructuary the legal interest on the amount invested,

as long as the usufruct lasts. If the owner does not make them, the usufructuary maymake them, but only when they are necessary forpreservation, and he shall be entitled to indemnity.

PAYMENT OF INTEREST : it is the usufructuary who benefitsby the extraordinary repairs, which restore the thing to itscondition of usefulness.

Hence, if the owner pays for such repairs, theusufructuary should pay legal interest on the amountinvested, until the usufruct expires.

WHEN PAID BY USUFRUCTUARY : the usufructuary who hasmade the extraordinary repairs necessary for preservation, isentitled to recover from the owner the increase in value whichthe tenement acquired by reason of such works.

In order to determine this increase, the value of thetenement when the repairs became necessary, and itsvalue after such repairs have been completed, shouldbe taken into account; the difference constitutes theincrease in value.

ART. 595:

RIGHTS OF PARTIES : any advantage or increase in the use

of enjoyment of the thing due to the improvements or plantingsintroduced by the owner will inure to the benefit of theusufructuary.

But the usufructuary is not bound to pay interest on theinvestment of the owner, because the improvementshave been made voluntarily by the latter.

ART. 596:

EXPENSES AFFECTING FRUITS : the expenses of cultivationand gathering of fruits, those for feeding a herd of cattle, lifepensions affecting determinate property, and those for ordinaryrepairs, are charges which affect the fruits and are for theaccount of the usufructuary.

MANRESA SANCHEZ ROMAN

Annual charges and taxes arealways chargeable againstthe usufructuary, becausethey are considered by thelaw as imposed upon thefruits."

MORE LOGICAL VIEW: suchannual charges and taxes areto be paid by the usufructuaryonly when they can beconsidered as a lien upon thefruits.

The annual charges and taxes for which theusufructuary is liable cannot include those levied uponthe tenement itself, but only those levied upon thepersons in possession or enjoyment thereof.

These charges, for the first and the last years of theusufruct, are not borne entirely by the usufructuary, butmust be divided between him and the owner in thesame manner as civil fruits, that is, in proportion to theperiods of possession.

ART. 597:

PAYMENT OF LAND TAX :

MANRESA SUPREME COURT

Land taxes, being payableannually, are chargeableagainst the usufructuary." Thesame view has been held byour Court of Appeals, whichruled that the payment of landtaxes by a usufructuary is notproof of adverse possessionagainst the owner becausesuch payment is an obligationof the usufructuary.

A land tax is a burden uponthe capital, that is, upon thereal value of the property, andunder the present article itshould be paid by the owner.

*** Correct construction of thelaw, and conforms to thestand of Sanchez Roman thatannual charges and taxes arechargeable against theusufructuary only when they

may be considered as a lienupon the fruits.

ART. 598:

ART. 599:


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ART. 600:

WHEN USUFRUCT UNIVERSAL : when the usufruct isconstituted over all the property of the owner by act inter vivos, and some tenements are mortgaged, the usufructuary is boundto pay for such mortgage only in the cases mentioned in ART.598; namely, when there is an express stipulation to that effect,or when the usufruct was created in fraud of creditors.

ART. 601:

NOTICE TO OWNER : the usufructuary must give notice to theowner of acts which may prejud ice the rights of ownership ;this article does not refer merely to the rights of the nakedowner.

It may be said that it is only in those cases where thefruits or the right of usufruct, as a right personal to theusufructuary, are involved, that it is not necessary forthe usufructuary to give notice to the owner.

Ordinarily, when the usufructuary is disturbed in hispossession, he has his own right of action against theintruder.

But such acts affecting possession should also be madeknown by the usufructuary to the owner, because thelatter has an interest in defending it because theusufruct will ultimately revert to him, and because injuryto the possession will also result in injury to the right ofownership.

ART. 602:

REASON FOR ARTICLE : the expenses of suits in connectionwith the possession, use and enjoyment of the things aregenerally borne by the usufructuary, because they affect his

own rights as usufructuary.

CHAPTER 4:EXTINGUISHMENT OF USUFRUCT

ART. 603:

DEATH OF USUFRUCTUARY : the death of the usufructuaryis the natural end of the usufruct, which is essentially a lifebenefit.

If a period or a resolutory condition is stipulated, and theusufructuary dies before the expiration of the period or

the happening of the resolutory condition, is the usufructextinguished, or must it continue to the end of the periodor the fulfillment of the condition?

NAVARROAMANDI,

SANCHEZROMAN,

PLANIOL &RIPERT

MANRESA SCAEVOLA andVALVERDE;

CASTAN andSPANISH SC;TOLENTINO

The usufructcannot be exten-ded beyond thelifetime of theusufructuary, be-cause of the per-sonal character ofthis juridical rela-tion. They maintainthat death extin-guishes all kinds ofusufruct, even ifthere is a period orresolutory condi-tion which has not

expired or happen-ed, it being sup-posed that the pe-riod of conditionwas intended toshorten the periodrather than prolongit beyond thelifetime of theusufructuary.

Our SC seems toagree with thisview, when in onecase it said thatthe utmost periodfor which a usu-fruct can endure, ifconstituted in favorof a natural per-son, is the lifetimeof a usufructuary."

The usufruct insuch cases sub-sists and istransmitted to theheirs of the usu-fructtuary, becausethe will of theparties must berespected. Thus, ifthe usuiruct isconstituted for acertain number ofyears, or with aresolutory con-dition, or during

the lifetime of thegrantor or of a thirdperson, the usu-fruct will continuefor the time indi-cated, becausethat is the will orintention of theparties interested.

The usufruct willnot be terminatedby the death of theusufructuary onlywhen it is expre-ssly stipulated thatit shall continueeven after suchdeath until theexpiration of theperiod or the hap-pening of the con-dition agreedupon. But whenthere is no such

saving clause,death will exting-uish the usufruct,even if a period orcondition is stipu-lated. In this way,the essentialpersonal characterof the usufruct ispreserved, and atthe same time thewill of the parties isrespected whenmade clear andmanifest.

COMPUTATION OF PERIOD : in determining the period of theusufruct, the time during which the usufructuary has notenjoyed the thing because of ignorance, dispossession byothers, or any other cause, shall be counted against him. But

the delay in the enjoyment of the property, not imputable to hisfault or neglect, should not prejudice him.

MERGER : there is a merger that will extinguish the usufructwhen the naked ownership and the usufruct come to be heldby the same person.

Thus, where a widow has a usufruct, over half of theestate of her deceased husband, and she is given bythe will of said husband one-half of his estate, the


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usufruct is extinguished and she becomes absoluteowner of such half.

RENUNCIATION : waiver means a voluntary surrender of therights of the usufructuary, made by him with intent to sosurrender them.

The renunciation of the usufruct, to prove effective, mustbe express.

o Tacit renunciation is not sufficient. The renunciation does not need the consent or

acceptance by the owner, because it is a mereabandonment of a right by the usufructuary.

TERMINATION : the termination referred to in PAR. 6, refers tothe right of the person constituting the usufruct, and not to acondition imposed upon the usufruct itself.

Thus, if a person constituted a usufruct in the belief thathe was owner of the property, and then he is laterdefeated in an action for recovery of title to suchproperty, it is clear that the usufruct which he createdmust also terminate.

PRESCRIPTION : it is not non-use which extinguishes theusufruct by prescription, but the use by a third person.

There can be no prescription, however, as long as theusufructuary receives the rents from the lease of theproperty, or he enjoys the price of the sale of his right; inboth cases, the usufructuary enjoys his rights asusufructuary.

OTHER CAUSES : besides those mentioned in the presentarticle, the following are causes for extinguishment of

usufructs: non-fulfillment of conditions, any cause agreed uponby the parties as a ground for terminating the usufruct, therescission or annulment of the act constituting the usufruct,and the special causes for extinguishment of legal usufructs.

ART. 604:

ART. 605:

ART. 606:

ART. 607:

USUFRUCT ON BUILDING : where a building over which a lifeusufruct was constituted in favor of one person and the nakedownership was vested in another, was destroyed during thewar, any war damage payment received by the naked ownershould also be subject to the usufruct for life.

If such payment has not been used in the constructionof a new building, the usufructuary should be paid legalinterest from the time the war damage payment wasactually received until his death.

ART. 608:

BOTH SHARE INSURANCE : whatever the proportion in whichthe usufructuary and the owner share in the payment ofinsurance, their rights, in case of loss, will be the same as thatprovided in the first paragraph of this article, except when theyhave some lawful agreement to the contrary.

If the owner employs the insurance money toreconstruct the building, he must invest the entireproceeds; if he invests less, the usufructuary will havethe right to legal interest on the amount not invested.

The building should have similar conditions to thatdestroyed; if he invests a larger amount than what hereceived from the insurance, he cannot recover interestfrom the usufructuary for the enjoyment of the newbuilding.

OWNER PAYS INSURANCE : when the usufructuary refusesto share in the payment of the insurance, and the ownerinsures alone, the latter is entitled to the insurance money.

He has no obligation to invest it in rebuilding thetenement.

The rights of the usufructuary in such case will be thoseprovided in ART, 607.

The mere fact that the owner pays the premiums,however, is not sufficient to prove that the usufructuaryrefused to contribute thereto.

o The mere omission to contribute, or ignorance ofthe fact that the payment is being made shouldnot be considered as a refusal.

o The latter must be roved; and lf refusal of theusufructuary cannot be established, or it is shownthat the usufructuary failed to contribute becausehe did not know of the insurance.

o Manresa, Sanchez Roman, Scaevola, De Buen,and Castan believe that the provisions ofparagraph 1 shall be observed, as if both hadcontributed to the payment of premiums, theusufructuary reimbursing the owner for the part ofthe premiums corresponding to him.

ART. 609:

ART. 610:

EFFECT OF BAD USE : the bad use of a thing entitles the

owner to demand the delivery and administration of the thing.

To entitle him to this right, the bad use must causeconsiderable injury, not to the thing, but to him (owner).

When there is a sufficient security, this can seldomhappen, because there can be no injury to the ownerwho can recover on the security.

But if there is no security, and the usufructuary does nothave other property, the resulting prejudice is easy/tosee.


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It is for the courts to determine in each case whether thebad use produces such considerable injury to the owneras would justify the exercise of the right granted by thisarticle.

o The exercise of' this remedy does not extinguishthe usufruct.

ART. 611:

ART. 612:

LOCSIN VS. VALENZUELA

FACTS: Petitioner Ramona R. Locsin, Teresita Guanzon, CeliaR. Sibug, Maria Rosa R. Perez, Editha Ylanan and Ana MarieR. Benedicto were co-owners of a large tract of agriculturalland known as "Hacienda Villa Regalado" located in BarrioPanubigan Canlaon City, Negros Occidental. A portion of thisland consisting of an area of 60.07464 hectares, was subject tothe lifetime usufructuary rights of respondent HELEN SCHON.The bulk of this lot was cultivated by the following lessees-tenants who customarily delivered the rentals to Helen Schon.

On 22 October 1972, after the onset of the martial lawadministration of former President Marcos, Presidential DecreeNo. 27 was promulgated, decreeing the "Emancipation ofTenants." The tract of land owned in common by petitioners,including the portion thereof subject to Helen Schon'susufructuary rights, fell within the scope of the "Operation LandTransfer". Petitioners through counsel sought the opinion of theDAR as to who (petitioners or respondent Helen Schon) shouldbe entitled to receive the rental payments which continued tobe made by the respondent tenants to Helen Schon. The DARDistrict Officer rendered an opinion on 13 May 1977 that therental payments as of October 1972 were properly consideredas amortization payments for the land and as such shouldpertain to the landowners and not to the usufructuary.

ISSUES: as between the naked owners and the usufructuary,who should be entitled to the amounts paid by the tenantsbeginning Oct. 21, 1972? PETITIONERS.

- What is the legal character of the payments made bythe tenants beginning Oct. 21, 1972 payments on theprice of the land itself or civil fruits of the land?PAYMENTS ON THE LAND / COMPENSATION.

- WON ART. 609 is applicable in this case. YES, byanalogy.

PETITIONERS: the payments made by private respondenttenants to private respondent Helen Schon beginning on 21October 1972 should be considered as amortization paymentsfor the price of the land and as such should belong to thelandowners and not to the usufructuary.

PRIVATE RESPONDENT HELEN SCHON: those amountsshould pertain to her considering that her rights asusufructuary persist during her lifetime and have not beenextinguished by operation of the Land Reform Law. She furtherargues that assuming her usufructuary rights had beenextinguished, the provisions of ART. 609 of the Civil Codeshould be applied, and that thereunder she would be entitledeither to replacement of the land burdened with her usufruct

(the fruits of which would then be payable to her) or payment oflegal interest on the amount of the purchase price of the land.

RATIO: Those payments cannot be characterized as rentalslike those which had been paid to Helen Schon as usufructuaryprior to the promulgation of Presidential Decree No. 27 andprior to the effectivity of Operation Land Transfer.

- Payments made on or after Oct. 21, 1972 constituted

amortization payments on the cost of the land that theywere required to pay under Presidential Decree No. 27.- These payments, therefore, legally pertain to petitioners,

the former landowners as part of the compensation forthe dominion over land of which they were deprived byoperation of Presidential Decree No. 27.

RE: rights retained by Helen Schon as a usufructuary after theeffectivity of PD 27.

- The usufruct which had therefore existed as a jus in realiena in favor of Helen Schon was effectivelyextinguished by Presidential Decree No. 27.

- Presidential Decree No. 27 was enacted to"emancipate" the tenants from the "bondage of the soil"

by giving to tenants-farmers ownership of the land whichthey were cultivating upon the assumption that theywould work harder to improve their lot in life if theybecame landowners rather than mere tillers ofsomebody else's land.

o To hold Helen Schon as entitled to continueenjoying, as usufructuary, the natural or civil fruitsof Lot No. 2-C-A-3, would be to set at naught themajor purpose projected by Presidential DecreeNo. 27 and maintained by Executive Order No.228.

RE: ART. 609: it follows that respondent Helen Schon, so longas her rights as usufructuary persist under the instrumentwhich gave birth to such rights, would be entitled to areplacement reasonably equivalent to the land previouslyburdened with her usufructuary right, or to legal interest on theamount of the indemnity or cost of the land paid by privaterespondent tenants-farmers and the Land Bank.

- While the option or choice belongs to petitioners,considering that Helen Schon had already received partof the purchase price of the land previously owned bypetitioners from private respondent tenants-farmers, andin the interest of expeditious justice, we consider it thesecond alternative that should be given effect.

- Thus, from the monies that she actually received fromprivate respondent tenants-farmers on and after 21October 1972, respondent Helen Schon is entitled toretain an amount equivalent to the legal interest on saidamounts for every year that the usufruct would by itsown terms have continued to exist had it not beenextinguished by operation of Presidential Decree No.27; the balance of such amounts received by her shallbe turned over to petitioners. She is also entitled to thesame right in respect of the balance of the price of theland petitioners presumably received from the LandBank.

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