USUFRUCT

Definition:
Usufruct gives a right to enjoy the property of another with the obligation of preserving its
form and substance, unless the title constituting it or the law otherwise provides (Art. 562,
NCC). It is constituted by law, by the will of private persons in acts inter-vivos or mortis
cause and by prescription (Art. 563, NCC). The rights and obligation of the usufuctuary are
provided in the title or in case of deficiency by the code (Art. 565, NCC).

Rights and Obligation of the Owner

To make any works, improvements and plantings as long as it will not diminish the
usufruct or prejudice the right of the usufructuary
To received the thing at the end of the Usufruct
Things that deteriorates - obligation to return as is
Consumables - pay the appraised value at the time of the usufruct or to return
the same quantity and quality or pay the current price at the time the
usufructuary ceases.
To transfer or alienate the thing but he cannot alter its form or substance or do
anything thereon which may be prejudicial to the usufructuary
To be notified of the inventory and receive security for the thing
To remove trees that may be left in cases of calamities
To administer the thing if the usufructuary fails to give security
To make ordinary repairs if the usufructuary refused after demand, at the expense of
the usufructuary
To pay for extra-ordinary repairs upon notice, right to demand legal interest for the time
the usufructuary last
Pay taxes on that relates directly on the capital

Rights of Usufructuary
Entitled to the fruits growing at the time the usufruct begins (See Article 588, NCC on
Security).
Entitled to Civil fruits - can lease the land - proportionate to the time
Entitled to the benefits from industrial and commercial enterprise - proportionate
In Wood land - natural fruits, including ordinary cutting without prejudicing the
preservation of the land. Cannot cut down trees unless it be to restore or improve the
land and must inform the owner.
Entitled to transfer or alienate his right of usufructuary
Entitled to Vindicate - may obliged the owner to give him authority to file action but his
right to the fruit is limited to what is adjudged to belong to the owner
Entitled to Set-Off the improvements introduce against the damage
Collect matured credits which forms part of the usufruct if he has given security (or
upon authority of the owner or the court)

Obligation of the Usufructuary

To make an inventory, description and appraisal with notice to the owner
To give security
Not applicable to donor and parents who are usufructuaries of the things donated
If usufructuary fails to five security, the owner may demand that immovables be put
under administration,

Movables be sold - artistic, sentimental worth - delivery to the owner with payment of
legal interest
Convert public bonds, instrument of credit payable to order or bearer to registered
certificates or deposited in a bank or public institution
Cash be invested to safe securities
The interest of the proceeds of the sale, public securities and bonds under
administration shall belong to the usufuctuary
The owner may act as administrator if he so prefers until the usufructuary gives
security - entitled to fees of administration, by agreement or by court order
Take care of the thing as a good father to a family
Special Rules
Woodland - special rule
Flock of animals - replacement of the young of the animals that die each year
from natural causes or due to rapacity of beast, uncommon events - deliver the
remains which may have been saved from the misfortune, if it perish in part, the
usufruct shall continue on the part save
Ordinary repairs - usufuctuarys obligation, owner may demand and may perform
repairs at the expense of the usufuctuary
Extra-Ordinary Repairs - obliged to notify the owner when the need for such repairs is
urgent
Pay legal interest on the amount expended for extra-ordinary repairs for the time that
the usufuctuary lasts
Demand payment for the improvement cause by extra-ordinary repairs made by him on
the thing
Pay taxes and charges (See Art. 597, NCC)
Pay debts of the owner in case the usufruct was made in violation of the rights of
creditors though he is not obligated to pay the obligation from a mortage

Extinguishment of Usufruct
Death of Usufuctuary
Expiration of the term, fulfillment of the condition
Merger of the usufruct and ownership
Renunciation of the usufuctuary
Total loss - insurance (with or without contribution; building or no rebuilding)
Termination of the right of right of the person constituting the usufruct
Prescription

Cases:
Vicente Reyes vs. Jose Grey, G.R. No. 6969 December 20, 1911
Remedios Grey wife of Jose Grey died intestate in 1905 without direct heirs, leaving a
surviving husband and four siblings. Under the law, the siblings inherit subject only to the
right of the surviving husband, the plaintiff, to a usufructuary interest in one-half. The
estate of the deceased was divided between the siblings by the CFI in 1907. Prior to this,
the usufructuary rights of the husband was sold in execution in another case.
If the usufructuary right is one which may be leased or sold, it must logically and
necessarily follow that such a right is an "interest" in real property within the meaning of
section 450 of the Code of Civil Procedure, above quoted. It was the plaintiff's usufructuary
right in real property which was sold under execution. This right was conferred upon him at

the death of his wife by operation of law, and by virtue of such a right he was entitled to
receive all the natural, industrial, and civil fruits of said real property in usufruct. He was
entitled to hold the actual, material possession of such property during his lifetime, and
was obligated only to preserve its form and substance. In other words, he was entitled,
subject to his restriction, to use the property as his own. He was the real owner of this
interest, and article 480, supra, conferred upon him the right to enjoy the possession of the
property or lease it to another or to sell such interest outright. We think the real test, as to
whether or not property can be attached and sold upon execution