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Understanding Usufruct in Civil Law

The document discusses usufruct, which is a real right that grants a person temporary ownership and enjoyment of another's property. It summarizes key provisions related to usufruct: 1) Article 1189 applies when a contract is perfected, granting the creditor a personal right to demand fulfillment even if the object is lost prior to delivery. 2) A usufructuary has the right to enjoy improvements made to property but cannot claim reimbursement or sell the property. They can remove improvements without damage or set off improvements against damage done. 3) The main obligation of a usufructuary is to preserve the form and substance of the property. They are entitled to fruits from the

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Darlene Ganub
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196 views3 pages

Understanding Usufruct in Civil Law

The document discusses usufruct, which is a real right that grants a person temporary ownership and enjoyment of another's property. It summarizes key provisions related to usufruct: 1) Article 1189 applies when a contract is perfected, granting the creditor a personal right to demand fulfillment even if the object is lost prior to delivery. 2) A usufructuary has the right to enjoy improvements made to property but cannot claim reimbursement or sell the property. They can remove improvements without damage or set off improvements against damage done. 3) The main obligation of a usufructuary is to preserve the form and substance of the property. They are entitled to fruits from the

Uploaded by

Darlene Ganub
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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
  • Civil Law Review: Usufruct Overview
  • Understanding Usufruct
  • Usufruct in Practice

Civil Law Review

Usufruct

Article 1189 is applicable in situations after the perfection – if the thing is lost before
the perfection of the contract, then you apply the rule on res perit domino – the owner
bears the loss if the thing is lost during the perfection of the contract. Then, the
contract is ineffective because of the fact that the object is lacking. Article 1189 applies
when the contract is already perfected – it gives rise to a personal right in favor of the
creditor.

Example, you bought a thing and it has not yet delivered, prior to the delivery, there is
no transfer of ownership because it is the delivery that transfers the ownership. But
because the contract has already been perfected, and there is a personal right. Your
right now is to demand the perfection of the prestation. In other words, since it is
already perfected, you have a personal right, which is to demand from the seller to
deliver – you’re not yet the owner, not yet in possession, therefore you don’t have a real
right. It is the delivery which makes you the owner of the property. But, nevertheless,
since the contract is already perfected, there is already a juridical tie. If something
happens to the thing, there is a possibility that the seller be liable, he already has an
obligation because the contract is already perfected.

So, Article 1189 applies to situations wherein the obligation is subject to a condition.
Therefore, prior to the fulfillment of the condition, the thing is still with the seller and
because of that, the seller has the obligation and that obligation may be governed by
Article 1189. But if the thing is lost due to an accident or a fortuitous event, then it
will fall under Article 1174, wherein no person is not liable.

There is a mention of a usufruct, if the obligor makes an improvement prior to the


delivery and he delivers it thereafter, he can only have the right granted by law to a
usufructuary – what does this mean?

Connect Article 1189 to Articles 579 and 580 – the usufructuary, if you are granted
usufruct over a car by your father – and since it is just an usufructuary, then the son
could not sell it. So, the naked ownership is still with the father. This means that the
certificate of registration remains in his name. So, because the son is using the car, so
if you put in the car some improvements and they may either be useful or for mere
pleasure – useful improvement or luxurious improvements. So, at the end of the four-
year period, you cannot ask your father for reimbursement of those improvements. So,
under Article 579 – you can remove them but as long as there is no damage to property.
So, if you put a different seat cover, ibalik mo yung luma na seat cover. Under Article
580, you can set off. Example, may nagasgas ka na pintura and it costs P5k, then you
can set it off with the stereo if it is more than or equal to such price.

So, there are two things you can do:


- Remove without causing damage
- Set off the improvements against any damage that you can or you may have done

Page 1
Atty. JDC lecture
Transcribed by Lara Murallos
Civil Law Review
Usufruct

What is a Usufruct?
What is the purpose of Usufructuary?
Is there still a law saying that parents have usufructuary rights over their children?
What is a Universal Usufruct?
What is the opposite of a Universal Usufruct?
Why are they opposites?

The main obligation is to preserve the form and substance subject to usufruct. This is
why with respect with ordinary repairs, the usufructuary is liable for the expenses that
he will incur for ordinary repairs because he is responsible for the form and substance;
therefore, it is part of his obligation. This is subject to the exception that if it is provided
for otherwise. So, what is an example of that?

Exceptions: Articles 565, 573, 574.

The Usufructuary is entitled to the fruits of the property subject of the Usufruct, and
this is found in Article 566. What is the exception?

Why is he treated as a stranger?


Distinguish Usufruct and Lease?

There is a mention that Usufruct is a real right, how?

Usufruct creates a real right in favor of the Usufructuary. But, in order to affect third
persons, it must be registered. Lease, however, is generally a personal right except
when it already has exceeded one year.

Article 572, the Usufructuary may opt to enjoy it by himself or lease it to another
person. He may also alienate. So, what does that mean?

What can be alienated is the right to usufruct and not the property. So, be careful
with the codal provisions. Because he cannot sell, mortgage subject of the usufruct; he
can only alienate his right. The right here is the incorporeal right and not the property—
for instance si A, while she cannot sell the car given to her by her father by usufruct,
but her father cannot prevent her from leasing that car to another person, or can her
father prevent her from giving her right to usufruct to her best friend; provided, once
the usufruct terminates, any contract she entered to, will also terminate.

Why would the lease terminate after the usufruct terminates?

Article 558, what does it mean?

Page 2
Atty. JDC lecture
Transcribed by Lara Murallos
Civil Law Review
Usufruct

The Usufructuary is a holder, he is not in possession of the property in the meaning of


an owner—he is merely a holder. So, any contract subject of the usufruct, that contract
is temporary in nature. It will expire once the usufruct expires. Subject to exception?
Article 572, leases of rural lands kasi siyempre patapusin naman hanggang maka
harvest. And if you relate that to Article 568, it contemplates a situation that a lease
will expire after the usufruct has expire. So, here even if the usufruct has already
expired, the lease will not yet expire and if he applies Article 558 it is possible if the
owner allows for the usufructuary to be longer than the lease or it is subject of an
agricultural land. Here, the usufruct will only be entitled to the proportionate share of
the rent paid by the lessee based on the time. So, once it expires yung owner na entitled
sa rent and hindi na yung usufruct.

What are the obligations of a usufructuary?

Article 587, what does it mean?

What is the rule on usufruct over herds of livestock?

Page 3
Atty. JDC lecture
Transcribed by Lara Murallos

Common questions

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A usufructuary can make improvements on a property but cannot demand reimbursement for these improvements from the owner at the end of the usufruct period . According to Article 579, the usufructuary may remove the improvements provided no damage is caused to the property, such as by replacing any modified features with the originals .

Articles 565, 573, and 574 outline the responsibilities of a usufructuary, emphasizing the preservation of the property's form and substance. Article 565 requires the usufructuary to maintain ordinary repairs, while Articles 573 and 574 provide exceptions where the usufructuary may not bear some costs if explicitly stipulated otherwise. These articles collectively ensure the usufructuary's duty to care for and manage the property, protecting the owner's interest .

If an object is lost after a contract's perfection and before its delivery, the rule res perit domino might apply, where the owner bears the loss . However, Article 1189 also grants the buyer a personal right to demand what was agreed upon in the contract. If loss results from an accident or unforeseeable event, Article 1174 applies, exempting any party from liability .

Usufruct creates a real right for the usufructuary because it grants them the ability to use and enjoy another's property, deriving benefits from it without owning it . This right can affect third-party relations once registered. In contrast, a lease typically establishes a personal right unless the lease term exceeds one year, in which case it can affect third parties .

While a usufructuary of both movable and immovable property must maintain the property's form and substance, they are particularly liable for ordinary repairs on immovable property, as it is part of their obligation to preserve the property . For movable property, any modifications or improvements are removable by the usufructuary, as long as no damage is caused, unlike with immovable property where they may also undertake sets-off for damages done .

The usufructuary has the right to use and enjoy the benefits of the property without owning it, being limited to the rights granted by the usufruct, such as leasing the property to others . In contrast, the naked owner retains ownership rights, including the ability to sell or mortgage the property, and must respect the usufructuary's rights until the usufruct terminates .

Contracts under a usufruct terminate with the expiration of the usufruct because the usufructuary holds rights to use the property only temporarily . Exceptions exist, such as leases of agricultural lands where the usufruct ends but the lease may continue until the harvest . This exception is intended to respect the cyclical nature of agricultural production.

Under Article 572, a usufructuary may lease the right of usufruct to another or alienate it completely. However, they cannot sell or mortgage the property itself, only the rights they hold . This distinction ensures that the usufructuary retains only temporary rights subject to the expiration or termination of the usufruct, while the property's ultimate ownership remains with the naked owner .

Article 1189 becomes relevant in situations where a contract has been perfected, but the delivery and transfer of ownership have not yet occurred . In such cases, the purchaser has a personal right against the seller to demand delivery, as the juridical tie has been established through perfection of the contract. If the object is lost due to the seller's fault before the delivery, the seller may be held liable, unless the loss results from an accident or a fortuitous event, which falls under Article 1174 .

Historically, parents had usufructuary rights over their children's property, enabling them to use and derive income from it. However, modern legal frameworks have largely moved away from these doctrines, focusing on the child's welfare instead. Current laws rarely expressly grant such rights, emphasizing parental duties to support rather than derive benefit .

Civil Law Review Usufruct Page 1 Atty. JDC lecture Transcribed by Lara Murallos Article 1189 is applicable in situat
Civil Law Review Usufruct Page 2 Atty. JDC lecture Transcribed by Lara Murallos What is a Usufruct? What is the p
Civil Law Review Usufruct Page 3 Atty. JDC lecture Transcribed by Lara Murallos The Usufructuary is a holder, he is

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