USUFRUCT..

USUFRUCT

• Usufruct – right to enjoy another’s property with correlative duty of preserving its form and substance

a. things – movable/immovable

b. rights – provided it is not strictly personal

• Kinds:
1. legal - parents over children

2. voluntary – contracts, wills

3. mixed – prescription

4. total

5. partial

6. simultaneous

7. successive

8. pure

9. conditional

10. With a term

• Rights of usufructuary:

1. Right to civil, natural & industrial fruits of property

2. Right to hidden treasure as stranger

3. Right to transfer usufructuary rights – gratuitous or onerous;

but is co-terminus with term of usufruct; fruits proportionate at duration of usufruct;

but can’t do acts of ownership such as alienation or conveyance except when property is:
a. consumable

b. intended for sale

c. appraised when delivered; if not appraised & consumable – return same quality (mutuum)

4. Right not exempt from execution and can be sold at public auction by owner

5. Naked owner still have rights but w/o prejudice to usufructuary; may still exercise act of ownership –bring action to preserve
6. Right to fruits growing at time usufruct begins; growing fruits at termination of usufruct belongs to owner

7. Right to necessary expenses from cultivation at end of usufruct

8. Right to enjoy accessions & servitudes in its favor & all benefits inherent therein

9. Right to make use of dead trunks of fruit bearing trees & shrubs or those uprooted/cut by accident but obliged to plant anew

10. Right of usufructuary of woodland – ordinary cutting as owner does habitually or custom of place; cannot cut down trees unless it is for the restoration of improvement of things in usufruct – must notify owner first

11. Right to leave dead, uprooted trees at the disposal of owner with right to demand that owner should clear & remove them – if caused by calamity or extraordinary event – impossible to replace them

12. Right to oblige owner to give authority & furnish him proofs if usufruct is extended to recover real property or real right

13. Right to necessary expenses

14. Right to introduce useful & luxurious expenses but with no obligation of reimbursement on part of owner; may remove improvement if can be done w/o damage

15. Right to set-off improvements against damages he made against the property

16. Right to administer when property is co-owned; if co-ownership cease – usufruct of part allotted to co-owner belongs to usufructuary – not affected

17. Right to demand the increase in value of property if owner did not spend for extraordinary repairs when urgent & necessary for preservation of thing

• Rights of naked owner

1. Alienate thing

2. Can’t alter form or substance

3. Can’t do anything prejudicial to usufructuary

4. Construct any works and make any improvement provided it does not diminish value or usufruct or prejudice right of usufructuary

• Obligations of usufructuary:

1. Pay expenses to 3rd persons for cultivation & production at beginning of usufruct; whose who have right to fruits should reimburse expenses incurred

2. Generally, usufructuary has no liability when due to wear & tear, thing deteriorates, obliged to return in that state; except when there is fraud or negligence, then he shall be liable

3. Before entering into usufructuary:

a) Notice of inventory of property (appraisal of movables & description)

b) Posting of security
1. not applicable to parents who are usufructuary of children except when 2nd marriage contracted
2. excused – allowed by owner, not required by law or no one will be injured

 failure to give security: owner may demand that:

a. immovables be placed under administration

b. NI can be converted into registered certificates or deposited in bank

c. Capital & proceeds of sale of movables be invested in safe securities

d. Interest on proceeds or property under admin belong to usufructuary

e. Owner may retain property as administrator w/ obligation to deliver fruits to usufructuary until he gives sufficient security

f. Effect of security is retroactive to day he is entitled to fruits

4. Take care of property as a good father of family

5. Liable for negligence & fault of person who substitute him

6. If usufruct is constituted on animals – duty bound to replace dead animals that die from natural causes or became prey; if all of them perish w/o fault but due to contagious disease / uncommon event – deliver remains saved;

if perish in part due to accident – continue on remaining portion; if on sterile animals – as if fungible – replace same kind & quality

7. Obliged to make ordinary repairs – wear & tear due to natural use of thing and are indispensable for preservation; owner may make them at expense of usufructuary – during existence of usufruct

8. Obliged to make expenses due to his fault; cannot escape by renouncing usufruct

9. Pay legal interest from extraordinary expenses made by owner

10. Payment of expenses, charges & taxes affecting fruits

11. Payment of interest on amount paid by owner charges on capital

12. Obliged to notify owner of act of 3rd person prejudicial to rights of ownership – he is liable if he does not do so for damages – as if it was caused through his own fault

13. Expenses, cost & liabilities in suits brought with regard to usufructuary – borne by usufructuary

• Obligations of owner

1. extraordinary expenses; usufructuary obliged to inform owner when urgent and there is the need to make them

2. expenses after renunciation of usufruct

3. taxes & expenses imposed directly on capital

4. if property is mortgaged, usufructuary has no obligation to pay mortgage; if attached, owner to be liable for whatever is lost by usufructuary

5. if property is expropriated for public use – owner obliged to either replace it or pay legal interest to usufructuary of net proceeds of the same

• Extinguishment of usufruct

1. death of usufructuary – unless contrary intention appears

2. expiration of period of usufruct

3. merger of usufruct & ownership

4. renunciation of usufructuary – express

5. total loss of thing

6. termination of right of person constituting usufruct

7. prescription – use by 3rd person

 loss in part – remaining part shall continue to be held in usufruct

 usufruct cannot be constituted in favor of a town, Corp or assoc. for more than 50 years

 usufruct constituted on immovable whereby a building is erected - & building is destroyed – right to make use of land & materials

 if owner wishes to construct a new building – pay usufructuary the value of interest of land & materials

 both share in insurance if both pays premium; if only owner – then proceeds will go to owner only

 effect if bad use of the thing – owner may demand the delivery of and administration of the thing with responsibility to deliver net fruits to usufructuary

 at termination of usufruct:

 thing to be delivered to owner with right of retention for taxes & extraordinary expenses w/c should be reimbursed

 security of mortgage shall be cancelled