Usufruct Flashcards

Question

What is included in the usufructuary's right to the thing and its fruits?

Answer 1

SER3IAL: Set-off, Enjoy, Receive, Remove, Retain, Improve, Accession, Lease] a. To enjoy the property personally [Art. 572, CC] b. To receive the fruits of the property [Art. 567, CC]

Answer 2

Fruits pending at the beginning of the usufruct

Answer 3

Belong to the naked owner

Answer 4

- Belong usufructuary - Without need to reimburse the expenses to the owners -Without prejudice to the right of 3rd persons e.g. if the fruits arose by building, planting, sowing by a possessor in good faith, the pending crop expenses of cultivation and of the net harvest and charges shall be prorated between said possessor and the usufructuary in proportion to the time of possession [Art. 545, CC] N.B. In the case of civil fruits, no need to prorate, as civil fruits accrue daily [Art. 544, CC]

Answer 5

- Belong to the naked owner - The owner shall reimburse to the usufructuary ordinary cultivation expenses from the proceeds of the fruits (not to exceed the value of the fruits) - Rights of innocent 3rd parties should not be prejudiced.

Answer 6

Right to Civil fruits – deemed to accrue daily, and belong to the usufructuary in proportion to the time the usufruct may last. [Art. 569, CC] ------------------------------------------ Article 569. Civil fruits are deemed to accrue daily, and belong to the usufructuary in proportion to the time the usufruct may last. (474).

Answer 7

Whenever a usufruct is constituted on the right to receive a rent or periodical pension, whether in money or in fruits, or in the interest on bonds or securities payable to bearer, each payment due shall be considered as the proceeds or fruits of such right. [Art. 570 par. 1, CC]

Answer 8

Whenever it consists in the enjoyment of benefits accruing from a participation in any industrial or commercial enterprise, the date of the distribution of which is not fixed, such benefits shall have the same character. [Art. 570 par. 2, CC]

Answer 9

To exercise all rights of the particular co-owner with respect to the administration and collection of fruits/interests from the alicot share of property [Art. 582, CC] Should co-ownership cease by reason of partition, the usufruct of the part allotted to the co-owner shall still belong to the usufructuary.

Answer 10

General Rules: a. Can be leased without consent of owner. b. The period of the lease is co-extensive with the period of usufruct.

Answer 11

* Caucion Juratoria, wherein the lease would show that the property is not needed by the usfructuary and therefore the use for which the usufruct was constituted is changed. * Condition imposed by naked owner i.e. Usufruct is purely personal, e.g. title creating usufruct provides that usufructuary shall personally use and enjoy the property given in usufruct. * Legal usufructs cannot be leased

Answer 12

Exception: Lease of rural lands will subsist during the agricultural year despite expiration of the usufruct [Art. 572, CC]

Answer 13

It is the usufructuary and not the naked owner who has the right to choose the tenant. [Fabie v. Gutierrez David, G.R. L-123 (1945)].

Answer 14

A lease executed by the usufructuary before the termination of the usufruct and subsisting after the termination of the usufruct must be respected, but the rents for the remaining period will belong to the owner. ------ If the usufructuary has leased the lands or tenements given in usufruct, and the usufruct should expire before the termination of the lease, he or his heirs and successors shall receive only the proportionate share of the rent that must be paid by the lessee. [Art. 568, CC]

Answer 15

NO. A lease executed by the owner before the creation of the usufruct is not extinguished by such usufruct

Answer 16

YES. Future crops may be sold but such sale would be void if usufruct terminates prior to harvest of future fruits. The buyer’s remedy is to recover from the usufructuary.

Answer 17

The usufructuary-lessor is liable for the act of the substitute. ---------------- A usufructuary who alienates or leases his right of usufruct shall answer for any damage which the things in usufruct may suffer through the fault or negligence of the person who substitutes him. [Art. 590, CC]

Answer 18

Article 571. 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 benefits inherent therein. (479)

Answer 19

a. He may improve the thing without altering its form and substance. b. He is not entitled to indemnification. c. He may also remove improvements made by him if it is possible to do so without damage to property. d. The usfuructuary has the right to set-off the imrpvoements on the property against any damage to the same [Art. 580]

Answer 20

The option to remove improvements belongs to the usufructuary, and the naked owner cannot compel him to do so, neither can the owner compel the usfructuary to leave the improvements and just pay for their value.

Answer 21

To protect usufructuary against 3rd persons

Answer 22

Right of Retention: To retain the thing/property until he is reimbursed for taxes on the capital and advances for extraordinary expenses [Art. 612, CC] The usufructuary has the right of retention until he is reimbursed of the amount he paid for taxes and the increase in value cause by extraordinary repairs he made.

Answer 23

[ABE – Alienate, Bring action, Exercise all rights] 1. To alienate or mortgage the right itself - Art 572 CC 2. To bring action and oblige the owner to give him proper authority and necessary proof in cases of usufruct to recover real property, real right, or movable property - Art 578 CC

Answer 24

The usufructuary may alienate his right of usufruct, even by a gratuitous title (e.g. donation); but all the contracts he may enter into as such usufructuary shall terminate upon the expiration of the usufruct. [Art. 572, CC]

Answer 25

Except: a. Parental usufruct [Arts. 225 and 226, FC] b. Usufruct given in consideration of the person of the usufructuary intended to last during his lifetime

Answer 26

YES. The surviving spouse of the usufructuary may dispose his/her usufructuary right like any other hereditary property, and may be the subject of attachment or execution [Bogacki v. Inserto, G.R. No. L-39187 (1982)]

Answer 27

To bring action and oblige the owner to give him proper authority and necessary proof in cases of usufruct to recover real property, real right, or movable property [Art. 578, CC] The action may be brought in the name of the usufructuary. If a favorable judgement is obtained, the usufruct shall be limited to the fruits, and the naked ownership shall belong to the owner. [Art. 578, CC]

Answer 28

a. 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; and [Art. 583 (1), CC] b. To give security, binding himself to fulfill the obligations imposed upon him in accordance with this Chapter. [Art. 583 (2), CC]

Answer 29

1. No one will be injured thereby [Art. 585, CC] 2. Title constituting usufruct excused the making of inventory. 3. Title constituting the usufruct already made the inventory.

Answer 30

1. No prejudice would result; [Art. 585, CC] 2. Usufruct is reserved by a donor; [Art. 584, CC] 3. Gratitude on the donee’s part demands that the donor be excused from filing the bond. 4. Title constituting usufruct excused usufructuary. 5. A usufructuary may take possession under a caucion juratoria (bond by oath) [Art. 587, CC] ---------------- Article 587. If the usufructuary who has not given security claims, by virtue of a promise under oath, the delivery of the furniture necessary for his use, and that he and his family be allowed to live in a house included in the usufruct, the court may grant this petition, after due consideration of the facts of the case. The same rule shall be observed with respect to implements, tools and other movable property necessary for an industry or vocation in which he is engaged. If the owner does not wish that certain articles be sold because of their artistic worth or because they have a sentimental value, he may demand their delivery to him upon his giving security for the payment of the legal interest on their appraised value. (495)

Answer 31

a. Proper court petition; b. Usufruct is over a house, furniture or tools of a trade and the necessity for delivery of furniture, implements or house included in the usufruct; c. Approval of the court; and d. Sworn promise. Note: These requirements are not conditions precedent to the commencement of the right of the usufruct but merely to the entry upon the possession and enjoyment of the property.

Answer 32

Article 587. If the usufructuary who has not given security claims, by virtue of a promise under oath, the delivery of the furniture necessary for his use, and that he and his family be allowed to live in a house included in the usufruct, the court may grant this petition, after due consideration of the facts of the case. The same rule shall be observed with respect to implements, tools and other movable property necessary for an industry or vocation in which he is engaged. If the owner does not wish that certain articles be sold because of their artistic worth or because they have a sentimental value, he may demand their delivery to him upon his giving security for the payment of the legal interest on their appraised value. (495)

Answer 33

Effect of failure to give bond: [Art. 586, CC] a. The owner may demand that the immovable properties be placed under administration; b. That the movable properties be sold and the proceeds of the sale be the property held in usufruct – legal interest of 6% shall be the fruits; c. 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 d. That the capital or sums in cash and the proceeds of the sale of the movable property be invested in safe securities. e. The owner may, until the usufructuary gives security, retain in his possession the property in usufruct as administrator, subject to the obligation to deliver to the usufructuary the net proceeds, after deducting the sums, which may be agreed upon or judicially allowed him for such administration. -----------------------------------------

Answer 34

Article 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. (494)

Answer 35

[CAPCORN – Care, Allow improvements, Pay AIDE (Annual taxes, Interest, Debts, Expenses for litigation), Collect credit, Ordinary repairs, Replace animals, Notify UP (Urgent repairs, Prejudicial act)] a. To take care of the property as a good father of the family [Art. 589] b. To make ordinary repairs – required by the wear and tear due to the natural use of the thing and are indispensable for its preservation. [Art. 592, CC] c. To inform/notify the owner of urgent extraordinary repairs [Art. 593, CC] d. To allow the naked owner to make works and improvements of which the immovable in usufruct is susceptible, or plantings, if rural [Art. 595, CC]. Provided: 1. The works or improvements are not prejudicial to the usufructuary’s rights. 2. No diminution in the value of the object in usufruct. e. To pay annual taxes and charges on the fruits for the time the usufruct lasts. [Art. 596, CC] f. To pay interest on taxes on capital paid by the naked owner. [Art. 597, CC] g. To pay debts if the usufruct is over the entirety of a patrimony [Art. 598, CC] h. To secure the approval of the owner or the court to collect credit which form part of the usufruct, if he has not given proper security or has been excused from giving security. [Art. 599, CC] i. To notify owner of any prejudicial act to the rights of ownership over the usufruct, by a third person. [Art. 601, CC] Consequence: he is liable for damages if he fails to give notice. j. To pay expenses and costs for litigation if incurred because of the usufruct. [Art. 602, CC] k. To answer for fault or negligence of the one he alienated, leased to the object of the usufruct or the fault or negligence of the usufructuary’s agent. [Art. 590, CC]

Answer 36

[RIP – Return, Indemnify, Pay interest2] a. To return the thing upon termination b. To pay legal interest for the duration of the usufruct on the expenses for extraordinary repairs, if naked owner made the repairs [Art. 594, CC] c. To pay proper interest on sums paid as taxes by the owner d. To indemnify the naked owner for any loss caused by the negligence of the usufructuary or his transferees

Answer 37

a. Usufruct over a Pension or a Periodical Income [Art. 570, CC] b. Usufruct of Property Owned in Common [Art. 582, CC] c. Usufruct Constituted on a Flock or Herd of Livestock [Art. 591, CC] d. Usufruct over Fruit Bearing Trees and Shrubs and Woodlands [Arts. 575-577, CC] e. Usufruct on a Right of Action to Recover Property or Real Rights Over Property [Art. 578, CC] f. Usufruct on Mortgaged Property [Art. 600, Cc] g. Usufruct over an Entire Patrimony [Art. 598, CC] h. Usufruct over Property that Deteriorates [Art. 573, CC] i. Usufruct over Consumable Property [Art. 574, CC]

Answer 38

Each payment/benefit shall be considered a civil fruit. Being a civil fruit, the usufructuary is entitled to it in proportion to the time the usufruct lasts.

Answer 39

The usufructuary takes the place of the co-owner as to: 1. Management; 2. Fruits; and 3. Interest.

Answer 40

1. The right of the usufructuary is not affected by the division of the property in usufruct among the co-owners. 2. After partition, the usufruct is transferred to the part allotted to the co-owner.

Answer 41

On sterile stock: same rules on fungible property govern. (i.e. it is an abnormal usufruct – may dispose of or consume the animal [Art. 574, CC] ------------------ Article 574. Whenever the usufruct includes things which cannot be used without being consumed, the usufructuary shall have the right to make use of them under the obligation of paying their appraised value at the termination of the usufruct, if they were appraised when delivered. In case they were not appraised, he shall have the right to return the same quantity and quality, or pay their current price at the time the usufruct ceases. (482)

Answer 42

ON FRUITFUL STOCK: Must replace ordinary losses of the stock with the young if: 1. Some animals die from natural causes; or 2. Some animals are lost due to rapacity of beasts of prey. Note: If the number of the young produced is less than the animals that died from natural causes or due to beasts of prey, then the usufructuary does not have to replace those which are in excess of the young that he currently has.

Answer 43

No obligation to replace if: 1. There is a total loss of animals because of some unexpected or unnatural loss (like contagious disease or any other uncommon event, provided the usufructuary has no fault); or 2. All perish, the usufructuary should deliver the remains to the owner. If there is partial loss, the usufruct subsists on the remainder.

Answer 44

If all the animals should perish, without his fault, the usufructuary shall still deliver the remains which may have been saved to the owner.

Answer 45

NO. If the loss, either partial or whole is without fault of the usufructuary, he has no duty to replace them.

Answer 46

NO. Bad use as provided in Art. 603 gives the owner the right to bring an action, but does not warrant the extinguishment of the usufruct. [Art. 610, CC] ------------- Article 610. A usufruct is not extinguished by bad use of the thing in usufruct; but if the abuse should cause considerable injury to the owner, the latter may demand that the thing be delivered to him, binding himself to pay annually to the usufructuary the net proceeds of the same, after deducting the expenses and the compensation which may be allowed him for its administration. (520)

Answer 47

The usufructuary may fell or cut trees in accordance to the following: 1. habitual felling or cutting of the owner; 2. customs of the place as to manner, amount, and season Note the rule in accession if a tree falls on another’s land. He cannot fell or cut trees in a manner that will prejudice the land. The usufructuary may make necessary thinnings to ensure that the remaining trees may properly grow.

Answer 48

Article 575. The usufructuary of fruit-bearing trees and shrubs may make use of the dead trunks, and even of those cut off or uprooted by accident, under the obligation to replace them with new plants. (483a)

Answer 49

Article 576. If in consequence of a calamity or extraordinary event, the trees or shrubs shall have disappeared in such considerable number that it would not be possible or it would be too burdensome to replace them, the usufructuary may leave the dead, fallen or uprooted trunks at the disposal of the owner, and demand that the latter remove them and clear the land. (484a)

Answer 50

Article 577. The usufructuary of woodland may enjoy all the benefits which it may produce according to its nature. If the woodland is a copse or consists of timber for building, the usufructuary may do such ordinary cutting or felling as 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 manner, amount and season. In any case the felling or cutting of trees shall be made in such manner as not to prejudice the preservation of the land. In nurseries, the usufructuary may make the necessary thinnings in order that the remaining trees may properly grow. With the exception of the provisions of the preceding paragraphs, the usufructuary cannot cut down trees unless it be to restore or improve some of the things in usufruct, and in such case shall first inform the owner of the necessity for the work. (485) ARTICLE 578. The usufructuary of an action to recover real property or a real right, or any movable property, has the right to bring the action and to oblige the owner thereof to give him the authority for this purpose and to furnish him whatever proof he may have. If in consequence of the enforcement of the action he acquires the thing claimed, the usufruct shall be limited to the fruits, the dominion remaining with the owner. (486)

Answer 51

[Art. 578, CC] The action may be brought in the name of the usufructuary. If the purpose is the recovery of the property or right, he has the also the right to oblige the owner to give the authority for such purpose, as well as to furnish him whatever pieces of evidence he may have.

Answer 52

[Art. 600, Cc] If the usufruct is over the entire patrimony of the owner, Art. 598, CC should apply. If the usufructuary mortgaged the usufruct himself, he is liable to pay his own debt.

Answer 53

Applies when: 1. the usufruct is a universal one 2. the naked owner has debts or is obliged to make periodical payments ------------- Article 598. 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 articles 758 and 759 relating to donations shall be applied, both with respect to the maintenance of the usufruct and to the obligation of the usufructuary to pay such debts. The same rule shall be applied in case the owner is obliged, at the time the usufruct is constituted, to make periodical payments, even if there should be no known capital. (506)

Answer 54

General Rule: The usufructuary is NOT liable for the owner’s debts.

Answer 55

Exceptions: 1. when stipulated, in which case the usufructuary shall be liable for the debt specified 2. if there is no specification, he is liable only for debts incurred by the owner before the usufruct was constituted 3. when the usufruct is constituted in fraud of creditors In no case shall the usufructuary be responsible for debts exceeding the benefits under the usufruct (except when the contrary intention appears).

Answer 56

Definition of Deteriorates: Without being consumed, gradually deteriorate through wear and tear

Answer 57

Right of Usufructuary: To make use of it in accordance with the purpose for which they are intended.

Answer 58

Obligation of Usufructuary: Returns the things in the condition in which they may have been found at the time of the expiration of the usufruct despite ordinary defects caused by use and deterioration produced by age and time. Exception: when it is caused by the usufructuary’s fraud and negligence If usufructuary does not return the things upon the expiration of the usufruct, he should pay an indemnity equivalent to the value of the things at the time of such expiration.

Answer 59

Article 573. Whenever the usufruct includes things which, without being consumed, gradually deteriorate through wear and tear, the usufructuary shall have the right to make use thereof in accordance with the purpose for which they are intended, and shall not be obliged to return them at the termination of the usufruct except in their condition at that time; but he shall be obliged to indemnify the owner for any deterioration they may have suffered by reason of his fraud or negligence. (481)

Answer 60

Consumable: Cannot be used without being consumed; example: food.

Answer 61

Right of Usufructuary: To make use of them

Answer 62

1. If they were appraised at the time of delivery pay their appraised value. 2. If they were not appraised at time of deliver, either return the same goods in the same quality and quantity or pay the current price at time of cessation of usufruct.

Answer 63

see obligations of usufructuary at the beginning of the usufruct

Answer 64

* Retains title to the thing or property. * He may alienate the property: he may not alter the form or substance of the thing; nor do anything prejudicial to the usufructuary. * He may construct buildings, make improvements and plantings, provided: 1. The value of the usufruct is not impaired; and 2. The rights of the usufructuary are not prejudiced. • He can constitute a voluntary easement over land/building held in usufruct, but if it affects the usufructuary right, the usufruct must give his consent. [Art. 689, CC] o If easement is perpetual, consent of both must be obtained [Art. 690, CC]

Answer 65

a. by the deat of the usufructuary, unless a contrary intentio nclearly appears b. by the expiration of the period for which it was constituted c. by the fulfillment of any resolutory condition provided in the title creating the usufrruct d. by merger of the usufruct and ownership in the same person e. by renunciation of the usufructuary f. by the total loss of the thing in usufruct g. by the termination of the right of the person constituting the usufruct h. by prescription

Answer 66

a. expropriation of thing in usufruct [art 609] b. bad use of the thing in usufruct [art 610] c. usufruct over a building of thing in usufruct [art 607 and 608]

Answer 67

a. In cases of multiple usufructs, the usufruct ends at the death of the last survivor [Art. 611, CC] b. If the period is fixed using the life of another person as reference or there is a resolutory condition c. When the contrary intention appears

Answer 68

a. If it was simultaneously constituted: ALL USUFRUCTUARIES must be alive or at least conceived at the time of the constitution b. If successively constituted by virtue of a donation: ALL DONEES USUFRUCTUARIES must be alive at the time of donation -In this case, the death of the usufructuary would not affect the usufruct and the right is instead transmitted to the heirs of the usufructuary until the expiration of the term or the fulfillment of the condition c. If successively constituted by virtue of a will: there should only be 2 successive usufructuaries and both must have been alive at the time of testator’s death

Answer 69

In this case, the death of the usufructuary would not affect the usufruct and the right is instead transmitted to the heirs of the usufructuary until the expiration of the term or the fulfillment of the condition

Answer 70

a. If the usufructuary dies before the happening of the resolutory condition = USUFRUCT EXTINGUISHED b. Usufruct is personal and it cannot be extended beyond the lifetime of the usufructuary. [Sanchez Roman and SC]

Answer 71

Special case of juridical persons [Art. 605, CC] Special Case of third person attaining certain age [Art. 606, CC]:

Answer 72

[Art. 605, CC] – Usufruct cannot be constituted in favor of a town, corporation, or association for more than fifty years. – If before the expiration of such period the town is abandoned, or the corporation or association is dissolved, the usufruct shall be extinguished.

Answer 73

[Art. 606, CC]: – Subsists for the period specified (until the birthday at which the person would’ve attained that age) Exception: The usufruct has been expressly granted only in consideration of the existence of such person.

Answer 74

1. Must be express: tacit renunciation is not sufficient; 2. Does not need the consent of naked owner; and 3. If made in fraud of creditors, they may rescind the waiver through an action under Art. 1381, CC (accion pauliana).

Answer 75

Art. 607, CC Usufruct continues over the land and materials (plus interests), if owner does not rebuild.

Answer 76

Art. 607, CC Usufruct continues over the land and materials (plus interests), if owner does not rebuild. But if the owner wants to construct another building, he can occupy the land and use the materials. If owner uses the materials and occupies the land, he must pay the usufructuary during the continuance of the usufruct the interest on the value of the land and materials.

Answer 77

Art. 608, CC Usufruct can continue enjoying the new building if a new one is built. Usufructuary shall receive interest on the interes on the insurance indemnity if owner does not wish to rebuild

Answer 78

Art. 608, CC Owner shall receive the full amount of the insurance indemnity in case of loss, and either of the following, depending on the case: If he does not rebuild, usufruct continues over the remaining land and materials (plus interests) If the owner rebuilds, usufruct does not continue on the new building, but owner should pay interest on the value of the land and materials

Answer 79

Art. 608, CC Insurance proceeds go to the usufructuary. No obligation to rebuild. Usufruct continues on the land. Owner has no share in insurance proceeds.

Answer 80

Adverse possession against the owner or the usufructuary. It is not the non-use which extinguishes the usufruct by prescription, but the use by a 3rd person. There can be no prescription as long as the usufructuary receives the rents from the lease of the property, or he enjoys the price of the sale of his right.

Answer 81

Article 609. Should the thing in usufruct be expropriated for public use, the owner shall be obliged either to replace it with another thing of the same value and of similar conditions, or to pay the usufructuary the legal interest on the amount of the indemnity for the whole period of the usufruct. If the owner chooses the latter alternative, he shall give security for the payment of the interest. (519)

Answer 82

Article 609 CC the owner shall be obliged either to replace it with another thing of the same value and of similar conditions, or to pay the usufructuary the legal interest on the amount of the indemnity for the whole period of the usufruct. If the owner chooses the latter alternative, he shall give security for the payment of the interest. (519)

Answer 83

NO Article 609

Answer 84

NO Bad Use - Does not extinguish the usufruct but entitles the owner to demand delivery and administration of the thing with the obligation to pay the net proceeds of fruits. The bad use must cause considerable injury not to the thing, but to the owner. Usufructuary is liable for damages caused to property.

Answer 85

NO Article 607 & 608