Obligations of the Usufructuary

At the Beginning of the Usufruct

At the Beginning of Usufruct

Art. 583. The usufructuary, before entering upon the enjoyment of the property, is obliged:

(1) To make, after notice to the owner or his legitimate representative, an inventory of all the property, which shall contain an appraisal of the movables and a description of the condition of the immovables;

(2) To give security, binding himself to fulfill the obligations imposed upon him in accordance with this Chapter.

At the Beginning of Usufruct

1. To make an inventorya) Appraisal of the movablesb) Description of the condition of the immovables

2. To give security / bond

At the Beginning of Usufruct

• Not Requisite to Right

– Merely to the entry upon possession and enjoyment of the property

– If not complied with, usufruct will still commence but Art. 586 will apply (on failure to give security)

Making of Inventory

• Sufficient that the owner is notified in making the inventory

• Owner does not attend but discovers omissions/mistakes: May ask for a correction but has the burden of proof

• Expenses borne by the usufruct• May be in a private document

Giving of Security

• For fulfillment of ALL obligations imposed upon him as usufructuary

• May be personal bond, pledge, or mortgage

General Exemptions

1. Waived by owner2. Exemption by title3. Where usufructuary asks to be relieved, and

no one will be injured thereby (Art. 585)– If naked owner refuses to grant exemption

requested, a judicial declaration may be obtained

Additional Exemptions

A. Making of Inventory1. Title already makes an inventory

B. Giving of Security1. Usufruct is reserved by donor (Art. 584)• Donor who has reserved the property donated; or• Parents who are usufructuaries of their children’s property, except when

parents contract a second marriage2. Usufructuary takes possession under a caucion juratoria (Art. 587)• Exceptional circumstance permitted as a matter of common humanity

where a person and his family in need of shelter is allowed to enjoy the use of the property

• Cannot alienate right nor lease property• Made by taking an oath to fulfill properly the duties of a usufructuary

Effect of Failure to Comply

• Effect of Failure to Make Inventory– Argentine Code: Prima facie presumption that the

properties were received in good condition– Sanchez Roman: The same as that of the failure to

give security, hence Art. 586 also applicable• Effect of Failure to Give Bond– Art. 586 lists the potestative rights of the owner– Usufructuary who does not possess property may

alienate his right without prejudice to the right of the transferee to give the required security

Art. 586. Should the usufructuary fail to give security in the cases in which he is bound to give it, the owner may demand that the immovables be placed under administration, that the movables be sold, that the public bonds, instruments of credit payable to order or to bearer be converted into registered certificates or deposited in a bank or public institution, and that the capital or sums in cash and the proceeds of the sale of the movable property be invested in safe securities.

The interest on the proceeds of the sale of the movables and that on public securities and bonds, and the proceeds of the property placed under administration, shall belong to the usufructuary.

Furthermore, the owner may, if he so prefers, until the usufructuary gives security or is excused from so doing, retain in his possession the property in usufruct as administrator, subject to the obligation to deliver to the usufructuary the net proceeds thereof, after deducting the sums which may be agreed upon or judicially allowed him for such administration.

Effect of Filing a Bond

• Art. 588: Usufructuary entitled to all the benefits

• Accruing from the time he should have begun to receive them– Retroactive effect

Obligations of the Usufructuary

During the Usufruct

During the Usufruct

1. To take care of the thing like a good father of a family

2. To undertake ordinary repairs3. To notify owner of need to undertake

extraordinary repairs4. To pay for annual charges and taxes on the

fruits

During the Usufruct

5. To notify owner of any act detrimental to ownership

6. To shoulder the costs of litigation regarding the usufruct

7. To answer for fault or negligence of alienee, lessee, or agent of usufructuary

Take Care of the Thing

• Requisites for bringing action (Art. 589):1. Damage suffered by the property2. Through fault/negligence of the usufructuary

It is not necessary to wait for the termination of the usufruct to bring an action to recover the proper indemnity

• Effect of failure (Art. 610)– By bad use of the thing, causing considerable injury to

the owner• Entitles owner to demand delivery and administration of

the thing• Does not extinguish usufructuary

Undertake Ordinary Repairs (Art. 592)

• Requisites of Ordinary Repairs:1. Deteriorations or defects arise from the natural use

of the thing2. Repairs necessary for the preservation of the thing

• Usufructuary bound to pay only for the repairs made during the existence of the usufruct– If defects existed already at the time the usufruct

began, owner has obligation

Undertake Ordinary Repairs (Art. 592)

• Effect of RenunciationA. Defects caused by fault of the usufructuary• Cannot exempt himself by renunciation

B. Defects caused by ordinary use• May exempt himself from making repairs after

returning the fruits received during the time the defects took place

C. Defects after renunciation• To be repaired at the expense of owner

Notify Owner of Need to Undertake Extraordinary Repairs (Arts. 593-594)

• Kinds of defects/deteriorations requiring extraordinary repairs1. Caused by exceptional circumstances W/N

necessary for preservation2. Caused by natural use, but are not necessary for

its preservation

Notify Owner of Need to Undertake Extraordinary Repairs (Arts. 593-594)

• To be borne by the owner– But usufructuary may not compel owner• Usufructuary also not bound to make such repairs

– If need for repairs is urgent (required for preservation), usufructuary must notify owner

– Where owner makes repairs:• He may collect from the usufructuary the legal interest on the

amount invested while usufruct lasts

– Where owner does not make repairs:• Usufructuary may make them

– Only when necessary for preservation– Entitled to indemnity

Pay for the Annual Charges and Taxes on the Fruits

• Expenses Affecting Fruits– Cultivation, gathering of fruits, feeding cattle, etc.

• To be paid only when they can be considered as a lien upon the fruits

• Include only those levied upon the persons in possession or enjoyment thereof

• Charges for the first and last years divided with owner in proportion to the periods of possession

Pay for the Annual Charges and Taxes on the Fruits

Illustrative Case: Board of Assessment Appeals of Zamboanga del Sur v. Samar Mining Company, Inc., 37 SCRA 734, Feb. 27, 1971

BOAA v. Samico

• Facts:

Obligations of the Usufructuary

At the Time of the Termination of the Usufruct