Title VI.

USUFRUCT
Chapter 1
USUFRUCT IN GENERAL
Art. 562. 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. (467)

§ 103. Usufruct in General

[103.1] Concept of Usufruct

 Definition: Usufruct is a real right that allows someone (the usufructuary) to use and
enjoy another person’s property temporarily, while maintaining it.
 Key Elements:
1. Real right: Can be enforced against anyone.
2. Temporary: Ends after a specified period or upon the usufructuary’s death.
3. Obligation: The usufructuary must return the property in its original condition or
its equivalent.

[103.1.1] Usufruct as a Real Right

 A real right grants the holder economic benefits from a thing.

 Usufruct includes two key rights:
1. Jus utendi – The right to use the property.
2. Jus fruendi – The right to collect fruits (income or benefits) from the property.
 Difference from Ownership: Usufruct does not transfer ownership—the owner retains
the title.

Example:

 A farmer grants a usufruct over his land to his nephew for 10 years.
 The nephew can live on the land and collect harvests, but he does not own it.

[103.1.2] Temporary Character

 Unlike ownership (which is permanent), usufruct has a time limit.

 Usufruct ends when:
1. The agreed period expires.
2. The usufructuary dies.

Example:

 A widow is granted usufruct over her late husband's estate until her death.
 Upon her death, the property returns to the heirs.
[103.1.3] Usufructuary’s Rights: Jus Utendi & Jus Fruendi

 Jus utendi: Right to use the property.

 Jus fruendi: Right to collect benefits (rent, crops, dividends).
 The usufructuary receives all types of fruits:
o Natural Fruits (crops, timber).
o Industrial Fruits (harvests from cultivated land).
o Civil Fruits (rental income, dividends).

Difference from Commodatum:

 In commodatum (loan for use), the borrower cannot keep the fruits unless agreed
upon.

Example:

 A landowner allows his friend to live rent-free on his land.

 If it's commodatum, the friend cannot sell harvested crops.
 If it's usufruct, the friend can harvest and sell crops.

[103.1.4] Usufruct Over Another’s Property (Jus in Re Aliena)

 Usufruct does not transfer ownership—it limits the owner’s rights.

Example:

 A businessman grants usufruct over his apartment to his sister for five years.
 She can rent it out, but she cannot sell it.

[103.1.5] Obligation to Preserve “Form and Substance”

 General Rule: The usufructuary must preserve the property as it was when received.
 Exceptions (When the usufructuary can alter or consume the property):
1. If the law or contract allows modifications.
2. If the property naturally deteriorates over time (e.g., machinery, tools).
3. If the property must be consumed for its use (e.g., stored grain).

Definition of Form & Substance:

 Substance = Material elements (e.g., wood in a house).

  Form = Appearance & function (e.g., house design).

Examples of Permissible Alterations:

1. Adding removable improvements (e.g., furniture, a gazebo).

2. Permanent changes that don’t increase maintenance costs (e.g., better flooring).
3. Major alterations with an agreement to restore (e.g., temporary partition walls).

Art. 563. Usufruct is constituted by law, by the will of private per- sons expressed in acts inter vivos
or in a last will and testament, and by prescription. (468)

Art. 564. Usufruct may be constituted on the whole or a part of the fruits of the thing, in favor of one
more persons, simultaneously or suc- cessively, and in every case from or to a certain day, purely or
conditional- ly. It may also be constituted on a right, provided it is not strictly personal or intransmissible.
(469)

Art. 565. The rights and obligations of the usufructuary shall be those provided in the title
constituting the usufruct; in default of such title, or in case it is deficient, the provisions contained in the
two follow- ing Chapters shall be observed. (470)

§ 104. Constitution of Usufruct

[104.1] Manner of Creation

A usufruct can be constituted in three ways:

1. By Law (Legal Usufruct)

o Created automatically by law.
o Example: Parents’ usufruct over the property of their minor children (Article 226,
Family Code).
2. By the Will of Private Persons (Voluntary Usufruct)
o Created through a contract, donation, or a last will.
o Requirement: Must be granted by the owner.
o Example: A father grants usufruct over his house to his daughter for 20 years
through a contract.
3. By Prescription (Mixed Usufruct)
o Acquired through long-term possession of another’s property.
o Example: A person uses a neighbor’s land openly for 30 years without objection,
possibly gaining usufruct over it by prescription.

[104.2] Classifications of Usufruct

Usufructs can be classified based on extent, beneficiaries, conditions, and nature of the
property:

1. Total vs. Partial

o Total Usufruct: Covers the entire property.
o Partial Usufruct: Covers only a portion.
o Example: A usufruct over an entire house (total) vs. only one floor (partial).
2. Simple vs. Multiple
o Simple Usufruct: Given to one usufructuary.
o Multiple Usufruct: Given to two or more usufructuaries, either:
 Simultaneously: All usufructuaries enjoy the usufruct at the same time.
 Successively: Usufructuaries enjoy the right one after another.
o Example: A father grants usufruct over land to both his sons (simultaneous) or
first to his eldest, then to the youngest (successive).
3. Pure, Conditional, or with a Period
o Pure Usufruct: No conditions or time limits.
o Usufruct with a Condition: Becomes effective only if a condition happens
(e.g., “if my son graduates”).
o Usufruct with a Period: Lasts only until a set date (e.g., “for 10 years”).
4. Proper (Normal) vs. Improper (Abnormal) Usufruct
o Proper Usufruct: Over non-consumable things (e.g., land, houses, vehicles).
o Improper Usufruct (Quasi-Usufruct): Over consumable things (e.g., cash,
grains).

Examples of Abnormal Usufructs (Articles 573 & 574, Civil Code)

1. Usufruct Over Consumable Goods (Article 574 – Quasi-Usufruct)

 Applies to items that cannot be used without being consumed (e.g., money, food, fuel).
 Usufructuary's Obligation:
o If the goods were appraised: Return the appraised value.
o If not appraised: Return same quantity and quality or pay the current price.

Example:
A usufructuary receives 100 sacks of rice. Upon expiry, he returns 100 sacks or pays the
current market price.

2. Usufruct Over Things Subject to Wear and Tear (Article 573)

 Applies to non-consumable things that deteriorate over time (e.g., machinery,

furniture).
 Usufructuary's Obligation:
o Return the item in its worn condition at the end of the usufruct.
 o Exception: If the damage is due to fraud or negligence, the usufructuary must
compensate the owner.

Example:
A usufructuary uses a tractor for 15 years. He returns it as is, unless he caused damage
beyond normal wear and tear.

[104.3] Object of Usufruct

A usufruct can apply to:

1. Real Property (e.g., land, buildings, houses)

2. Personal Property (e.g., vehicles, machinery, livestock)
3. Rights (under certain conditions)

Requirements for Usufruct Over Rights:

1. Not strictly personal (e.g., cannot usufruct over a personal employment contract).
2. Must be transferable (e.g., usufruct over rental income is valid).
3. Must exist independently (e.g., a servitude cannot be subject to usufruct because it
depends on another property).

Example of Usufruct Over Rights:

 A widow is granted usufruct over rental income from an apartment for life.

Chapter 2
RIGHTS OF THE USUFRUCTUARY

Art. 566. The usufructuary shall be entitled to all the natural, indus- trial and civil fruits of the
property in usufruct. With respect to hidden treasure which may be found on the land or tenement, he
shall be consid- ered a stranger. (471)

Art. 567. Natural or industrial fruits growing at the time the usufruct begins, belong to the
usufructuary.

Those growing at the time the usufruct terminates, belong to the owner.

In the preceding cases, the usufructuary, at the beginning of the usufruct, has no obligation to
refund to the owner any expenses incurred; but the owner shall be obliged to reimburse at the
termination of the usu- fruct, from the proceeds of the growing fruits, the ordinary expenses of
cultivation, for seed, and other similar expenses incurred by the usufruc- tuary.

The provisions of this article shall not prejudice the rights of third persons, acquired either at the
beginning or at the termination of the usu- fruct. (472)
 Art. 568. 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. (473)

Art. 569. Civil fruits are deemed to accrue daily, and belong to the usufructuary in proportion to the
time the usufruct may last. (474)

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

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 char- acter.

In either case they shall be distributed as civil fruits, and shall be applied in the manner prescribed
in the preceding article. (475)

Art. 571. The usufructuary shall have the right to enjoy any increase which the thing in usufruct
may acquire through accession, the servi- tudes established in its favor, and, in general, all the benefits
inherent therein. (479)

Art. 572. The usufructuary may personally enjoy the thing in usu- fruct, lease it to another, or
alienate his right of usufruct, even by a gra- tuitous title; but all the contracts he may enter into as such
usufructuary shall terminate upon the expiration of the usufruct, saving leases of rural lands, which shall
be considered as subsisting during the agricultural year. (480)

Art. 573. Whenever the usufruct includes things which, without be- ing consumed, gradually
deteriorate through wear and tear, the usufruc- tuary shall have the right to make use thereof in
accordance with the pur- pose 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)

Art. 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)

Art. 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 ac- cident, under the obligation to replace them with new plants.
(483a)

Art. 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 dis- posal of the owner, and
demand that the latter remove them and clear the land. (484a)

Art. 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 man- ner 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 he shall
first inform the owner of the necessity for the work. (485)

Art. 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 en- forcement of
the action he acquires the thing claimed, the usufruct shall be limited to the fruits, the dominion
remaining with the owner. (486)

Art. 579. The usufructuary may make on the property held in usu- fruct such useful improvements
or expenses for mere pleasure as he may deem proper, provided he does not alter its form or substance;
but he shall have no right to be indemnified therefor. He may, however, remove such improvements,
should it be possible to do so without damage to the property. (487)

Art. 580. The usufructuary may set off the improvements he may have made on the property against
any damage to the same. (488)

Art. 581. The owner of property the usufruct of which is held by another, may alienate it, but he
cannot alter its form or substance or do anything thereon which may be prejudicial to the usufructuary.
(489)

Art. 582. The usufructuary of a part of a thing held in common shall exercise all the rights pertaining
to the owner thereof with respect to the administration and the collection of fruits or interest. Should the
co-own- ership cease by reason of the division of the thing held in common, the usufruct of the part
allotted to the co-owner shall belong to the usufructu- ary. (490)

§ 104. Constitution of Usufruct

[104.1] Manner of Creation

A usufruct can be created in three ways:

1. By Law (Legal Usufruct)

o This type of usufruct arises automatically due to legal provisions.
o Example: Parents have a usufruct over the property of their minor children under
Article 226 of the Family Code. If a child inherits a house, the parents can use it
and collect rent from it until the child reaches legal age.
2. By Will or Private Act (Voluntary Usufruct)
o This happens when an individual voluntarily grants usufruct to another person
through a contract, donation, or a will.
o Example: A grandfather owns a farm and gives his son the right to use and
collect profits from the farm for his lifetime. This is stated in the grandfather’s
will. The ownership of the farm remains with the grandfather’s heirs.
3. By Prescription (Mixed Usufruct)
o Usufruct can be acquired through continuous and uninterrupted possession over
time, as prescribed by law.
o Example: If a person openly and continuously uses another’s land for 30 years
(without the owner objecting), they may acquire a usufructuary right through
prescription.
[104.2] Other Classifications of Usufruct

Usufructs can be classified in several ways:

1. Total vs. Partial

o Total Usufruct: The usufruct applies to the entire property.
o Partial Usufruct: Only part of the property is subject to usufruct.
o Example: If a father gives his son the right to use and earn from an entire
commercial building, that is a total usufruct. If he allows him to use only one
floor, it is a partial usufruct.
2. Simple vs. Multiple
o Simple Usufruct: Granted to a single person.
o Multiple Usufruct: Granted to two or more people.
 Simultaneous: All usufructuaries enjoy the property at the same time.
 Successive: They enjoy the usufruct one after another.
o Example: If a mother grants usufruct to her three children at the same time, it is
simultaneous. If the usufruct is to be enjoyed first by the eldest child, then the
second, then the youngest, it is successive.
3. Pure, Conditional, or With a Period
o Pure Usufruct: No conditions or time limits.
o Conditional Usufruct: Subject to a condition (e.g., "as long as the usufructuary
remains unmarried").
o Usufruct with a Period: It starts or ends at a specific time.
o Example: If a person is given usufruct over a house until they turn 60, it is a
usufruct with a period.
4. Proper (Normal) vs. Improper (Abnormal) Usufruct
o Proper Usufruct: Over non-consumable things (e.g., land, house). The
usufructuary must preserve them.
o Improper Usufruct: Over consumable things (e.g., food, money). The
usufructuary must return their equivalent value.
o Example: If a grandmother gives her grandson usufruct over a warehouse of rice,
he can consume the rice but must return an equivalent amount when the usufruct
ends.

[104.3] Object of Usufruct

Usufruct may apply to:

 Real Property: Land, buildings, farms, etc.

 Personal Property: Vehicles, machinery, jewelry, etc.
 Rights: The usufructuary can enjoy certain rights, as long as they are transferable.
 Example: If a person has usufruct over an apartment complex, they can rent out the units
and collect rent.
§ 105. Rights of Usufructuary
[105.1] Rights Included in Usufruct

The usufructuary has the right to use (jus utendi) and enjoy (jus fruendi) the property. This
includes:

 Living in a house given in usufruct

 Farming land and keeping the profits
 Collecting rent from leased property

While the usufructuary enjoys these rights, the naked owner retains ownership but cannot
interfere with the usufructuary’s enjoyment.

[105.1.1] Extent of Such Rights

 The usufructuary gets all accessions (e.g., if land value increases, they benefit).
 In woodlands, they can cut trees according to custom.
o Example: A usufructuary of a forest may cut trees for firewood but cannot clear
the entire forest.
 For fruit-bearing trees, they can take the fruits but not cut the trees.
o Example: If they have usufruct over a mango orchard, they can harvest the
mangoes but must replace any trees that die.
 Usufruct over a lawsuit:
o Example: If the usufruct is over a property that was illegally taken, the
usufructuary can sue to recover it.

[105.1.2] Right of Possession

 The usufructuary can lease the property.

o Example: If they have usufruct over an apartment, they can rent it out, but the
lease must end when the usufruct expires.
 The usufructuary can exclude others, even the owner, from using the property.
o Example: If a father gives his son usufruct over a beach house, the father cannot
enter or use the house unless permitted.

[105.2] Right to the Fruits

Usufructuaries get all natural, industrial, and civil fruits from the property.

 Natural Fruits: Harvests from land, animal offspring.

 o Example: If they have usufruct over farmland, they keep all the harvested crops.
 Industrial Fruits: Income from the land or business.
o Example: A usufructuary of a factory can keep profits from the factory's
production.
 Civil Fruits: Rents, interests, and dividends.
o Example: If they have usufruct over stocks, they receive dividends.

Pending Fruits

 If fruits are pending when usufruct begins, the usufructuary gets them.
 If fruits are pending when usufruct ends, the naked owner gets them but must reimburse
the usufructuary for expenses.
 Example: If a farm is given in usufruct right before harvest, the usufructuary gets the
crops. If the usufruct ends before the next harvest, the owner must pay the usufructuary
for cultivation costs.

[105.3] Alienation of Usufructuary Right

 A usufructuary cannot sell the property but can transfer their usufructuary rights.
 Example: A usufructuary of a condo can sublease it but must return it when the usufruct
ends.

105.3.1 Effect of Transfer or Alienation of Usufruct

Transfer or Alienation of Usufruct

 Concept: The usufructuary can transfer or alienate their usufruct (to another person),
or lease the property subject to the usufruct. However, this does not end the relationship
between the usufructuary and the naked owner. The usufructuary remains personally
responsible for any damage to the property, even if it was caused by the new transferee
or lessee.
o Example: If a usufructuary rents out a property (e.g., a house) and the tenant
accidentally damages it, the usufructuary is still responsible for repairs and any
costs involved, not the tenant or the property owner.

Implications of this Rule:

 Even if the usufructuary leases or transfers their right, they remain liable to the owner
for damages caused by the actions of the new person using the property (the transferee or
lessee).
o Example: If the usufructuary of a vineyard lets someone work the land and that
person destroys the crops, the usufructuary is responsible to the property owner
for the damage.
§ 105.3.2 Usufructuary Rights That Cannot Be Alienated
When Usufructuary Rights Cannot Be Alienated:

There are certain circumstances under which usufruct rights cannot be transferred to someone
else. These include:

1. Legal Usufruct of Parents Over Unemancipated Children’s Property

o Concept: Parents have usufruct over the fruits and income of the property of
their unemancipated children. However, this usufruct is for the benefit of the
child and thus cannot be alienated, since it is meant primarily to support the child.
 Example: If a parent is granted usufruct over the property inherited by
their minor child, the parent can use the property but cannot transfer this
right to another person. The goal is to ensure the property continues to
benefit the child’s upbringing and education.
2. Usufruct Based on Personal Qualities (Lifetime Usufruct)
o Concept: If the usufruct is granted in consideration of a person’s personal
qualities and is set to last for their lifetime, the usufruct cannot be transferred.
This is because the usufruct is closely tied to the individual.
 Example: If an elderly individual is granted a lifetime usufruct over a
house (perhaps because they have no other means of support), that
usufruct cannot be transferred to someone else, even if the person dies and
the property passes to their heirs.
3. Usufruct Acquired Through Caucion Juratoria (Oath-Based Security)
o Concept: If a usufruct is obtained due to the personal need of the usufructuary
(often through an oath or guarantee of need, called caucion juratoria), it cannot
be transferred. This ensures that the usufruct is available for the specific person’s
use.
 Example: If a usufruct is granted to a person who swore an oath about
their financial need (e.g., to secure their livelihood), this usufruct cannot
be transferred to another person, as it was based on their specific need.

§ 105.4 Right to Useful and Ornamental Improvements

Improvements by the Usufructuary

The usufructuary has the right to introduce improvements to the property held in usufruct,
whether these are useful (e.g., adding a new room to a house) or ornamental (e.g., adding
decorative features), as long as these improvements do not alter the form or substance of the
property.
 Chapter 3
OBLIGATIONS OF THE USUFRUCTUARY

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 representa- tive, 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 im- posed upon him in accordance
with this Chapter. (491)
Art. 584. The provisions of No. 2 of the preceding article shall not apply to the donor who has
reserved the usufruct of the property donated, or to the parents who are usufructuaries of their children’s
property, ex- cept when the parents contract a second marriage. (492a)

Art. 585. The usufructuary, whatever may be the title of the usufruct, may be excused from the
obligation of making an inventory or of giving security, when no one will be injured thereby. (493)

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 administra- tion. (494)

Art. 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 de- mand their delivery to him upon his giving security for the
payment of the legal interest on their appraised value. (495)

Art. 588. After the security has been given by the usufructuary, he shall have a right to all the
proceeds and benefits from the day on which, in accordance with the title constituting the usufruct, he
should have commenced to receive them. (496)

§ 106. Obligations of Usufructuary

The obligations of a usufructuary can be categorized into three distinct stages:

1. At the commencement of the usufruct (discussed below)

2. During the life of the usufruct
3. At the termination of the usufruct
The passage specifically discusses the commencement obligations in detail, covering the
inventory of property and security requirements that must be met before the usufructuary
begins to enjoy the property.

§ 107. Obligations at the Commencement of Usufruct

107.1 In General: Obligations Before Entering Possession

Before the usufructuary can begin using the property, they must meet two obligations:

1. Make an Inventory of the Property:

o Concept: The usufructuary is required to create a detailed inventory of all the
property covered by the usufruct. This ensures that the state of the property is
clear and documented, preventing disputes about its condition later on.
 Example: If a person is granted usufruct over a family estate with
multiple buildings, land, and crops, they must create an inventory listing
everything, including the condition of the buildings, value of crops, and
any other significant items.
2. Provide a Security or Bond:
o Concept: The usufructuary is also required to provide security or a bond to
guarantee the proper maintenance of the property and ensure that the owner’s
rights are protected. This bond may be in the form of money or another asset.
 Example: If someone is granted usufruct over a piece of real estate, they
might be required to deposit a bond (e.g., cash or a guarantee from a
financial institution) to cover any potential damages or neglect of the
property.

These obligations, while important, are not conditions for the effectivity of the usufruct itself
(i.e., the usufruct will still take effect even if these obligations are not immediately met), but the
usufructuary cannot take possession of the property until these obligations are fulfilled.

107.2 Consequences of Failure to Comply with the Obligations

If the usufructuary fails to comply with these obligations (inventory and security), it doesn’t
terminate the usufruct, but it does prevent the usufructuary from enjoying or possessing the
property.

 Inventory Failure:
o The law is silent on the effects of failing to make the inventory, but based on the
interpretation of several scholars, the effect is similar to the failure to provide
security: it prevents possession of the property but does not terminate the
usufruct.
 o Example: If a usufructuary fails to create an inventory of the property but still
takes possession and uses the property, the owner can demand that the
usufructuary either make the inventory or, if the usufructuary fails to do so, the
property can be handled differently by the owner.
 Owner’s Alternative Actions:
o If the usufructuary hasn’t fulfilled their obligations, the owner may retain
possession of the property or choose alternative methods like placing the property
under administration, selling movables, or investing proceeds in safe securities,
but the usufructuary is entitled to the benefits of those actions.
 Example: If the usufructuary has not provided security or made an
inventory, the property owner can place the property under administration,
and the usufructuary will still be entitled to any income generated from
that administration, like rent.
 Effect After Compliance:
o If the usufructuary eventually complies with the obligations, the usufruct’s effects
retroact to the original commencement date of the usufruct. This means that the
usufructuary is entitled to the benefits (like income or use of the property) from
the day the usufruct was originally supposed to start.
 Example: If the usufructuary was supposed to start enjoying the property
on January 1 but failed to comply with the obligations until February 1,
the usufructuary would still be entitled to the benefits from January 1,
once they comply with the obligations.

107.3 Exemptions From the Obligation to Give Security

In certain circumstances, the usufructuary is exempt from providing a bond or security:

1. Donor Reserved Usufruct:

o Concept: If a donor has granted a usufruct, but reserved the usufruct for
themselves, then the recipient of the usufruct does not need to provide security.
 Example: If a person donates property to their child but retains the
usufruct for life, the child doesn’t need to provide a bond because the
usufruct is tied to the donor’s continued right.
2. Legal Usufruct of Parents Over Minor Children’s Property:
o Concept: Parents granted a legal usufruct over the property of their minor
children don’t need to give a bond, unless certain conditions (like remarriage or a
high market value) are met.
 Example: A parent who has a usufruct over the income from their minor
child’s inheritance doesn’t have to provide a bond, unless the family’s
financial situation changes (such as a remarriage or significant income
from the child’s assets).
107.4 Instances Where Usufructuary May Be Relieved of Obligations

The usufructuary may be relieved from the obligations of inventory and security in the following
cases:

1. No Harm Caused by Non-Compliance:

o If no party will be harmed by the usufructuary failing to provide the inventory or
security, the usufructuary may be excused from these obligations.
 Example: If the property is of negligible value and does not require the
protections normally afforded by security or inventory, the usufructuary
might be relieved of these requirements.
2. Usufruct Acquired Through Caucion Juratoria:
o In a caucion juratoria, where the usufruct is granted due to a promise under oath
(often in court), the usufructuary is exempt from providing a security for movable
property like furniture, a dwelling house, or tools necessary for their trade or
industry.
 Example: If a person is granted usufruct over a house and furniture
because they swear under oath that they need it for their personal use or
livelihood, they are not required to provide a bond. This type of usufruct is
limited in terms of alienation (the usufructuary cannot lease or transfer it).

Art. 589. The usufructuary shall take care of the things given in usu- fruct as a good father of a
family. (497)

Art. 590. A usufructuary who alienates or leases his right of usu- fruct shall answer for any damage
which the things in usufruct may suffer through the fault or negligence of the person who substitutes
him. (498)

Art. 591. If the usufruct be constituted on a flock or herd of live- stock, the usufructuary shall be
obliged to replace with the young thereof

the animals that die each year from natural causes, or are lost due to the rapacity of beasts of prey.

If the animals on which the usufruct is constituted should all per- ish, without the fault of the
usufructuary, on account of some contagious disease or any other uncommon event, the usufructuary
shall fulfill his obligation by delivering to the owner the remains which may have been saved from the
misfortune.

Should the herd or flock perish in part, also by accident and with- out the fault of the usufructuary,
the usufruct shall continue on the part saved.

Should the usufruct be on sterile animals, it shall be considered, with respect to its effects, as
though constituted on fungible things. (499a)

Art. 592. The usufructuary is obliged to make the ordinary repairs needed by the thing given in
usufruct.

By ordinary repairs are understood such as are required by the wear and tear due to the natural use
of the thing and are indispensable for its preservation. Should the usufructuary fail to make them after
demand by the owner, the latter may make them at the expense of the usufructuary. (500)

Art. 593. Extraordinary repairs shall be at the expense of the owner. The usufructuary is obliged to
notify the owner when the need for such repairs is urgent. (501)
 Art. 594. If the owner should make the extraordinary repairs, he shall have a right to demand of the
usufructuary the legal interest on the amount expended for the time that the usufruct lasts.

Should he not make them when they are indispensable for the pres- ervation of the thing, the
usufructuary may make them; but he shall have a right to demand of the owner, at the termination of the
usufruct, the increase in value which the immovable may have acquired by reason of the repairs. (502a)

Art. 595. The owner may construct any works and make any im- provements of which the
immovable in usufruct is susceptible, or make new plantings thereon if it be rural, provided that such
acts do not cause a diminution in the value of the usufruct or prejudice the right of the usu- fructuary.
(503)

Art. 596. The payment of annual charges and taxes and of those considered as a lien on the fruits,
shall be at the expense of the usufructu- ary for all the time that the usufruct lasts. (504)

Art. 597. The taxes which, during the usufruct, may be imposed directly on the capital, shall be at the
expense of the owner.

If the latter has paid them, the usufructuary shall pay him the proper interest on the sums which
may have been paid in that character; and, if the said sums have been advanced by the usufructuary, he
shall recover the amount thereof at the termination of the usufruct. (505)

Art. 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)

Art. 599. The usufructuary may claim any matured credits which form a part of the usufruct if he has
given or gives the proper security. If he has been excused from giving security or has not been able to
give it, or if that given is not sufficient, he shall need the authorization of the owner, or of the court in
default thereof, to collect such credits.

The usufructuary who has given security may use the capital he has collected in any manner he
may deem proper. The usufructuary who has not given security shall invest the said capital at interest
upon agreement with the owner; in default of such agreement, with judicial authorization; and, in every
case, with security sufficient to preserve the integrity of the capital in usufruct. (507)

Art. 600. The usufructuary of a mortgaged immovable shall not be obliged to pay the debt for the
security of which the mortgage was con- stituted.

Should the immovable be attached or sold judicially for the payment of the debt, the owner shall be
liable to the usufructuary for whatever the latter may lose by reason thereof. (509)

Art. 601. The usufructuary shall be obliged to notify the owner of any act of a third person, of which
he may have knowledge, that may be prejudicial to the rights of ownership, and he shall be liable should
he not do so, for damages, as if they had been caused through his own fault. (511)

Art. 602. The expenses, costs and liabilities in suits brought with regard to the usufruct shall be
borne by the usufructuary. (512)

§ 108. Obligations During the Life of Usufruct

Once the usufructuary has taken possession of the property, they have several ongoing
obligations to ensure the property is preserved and properly maintained during the usufruct's
duration. These obligations primarily aim to protect the form and substance of the property,
ensuring that it remains in a usable condition for both the usufructuary and the owner.
Key Obligations of the Usufructuary:

1. Preservation of Form and Substance:

o The usufructuary must take care of the property in a way that preserves its
condition. This means that the property should not be damaged or diminished in
value, except by ordinary wear and tear.
o The usufructuary must exercise the diligence of a good father of a family, which
is a legal standard of care.
2. Specific Duties:
o Ordinary Repairs: The usufructuary must perform and pay for ordinary repairs
required to maintain the property.
o Payment of Annual Charges and Taxes: The usufructuary is responsible for
paying annual charges and taxes on the fruits (income) of the property.
o Urgent Extraordinary Repairs: If urgent repairs are needed, the usufructuary
must notify the owner of the necessity. If the owner fails to act, the usufructuary
may carry out the repairs, with the right to demand reimbursement from the
owner.
o Notify the Owner of Prejudicial Acts by Third Parties: The usufructuary must
notify the owner if they become aware of any third party actions that could harm
the owner’s rights. Failure to do so could result in liability for the usufructuary.

Detailed Breakdown:

108.1 Ordinary and Extraordinary Repairs:

 Ordinary Repairs:
o Definition: These are repairs that are necessary to maintain the property in its
usual condition, resulting from normal use or wear and tear.
o Cost: The usufructuary is responsible for paying for ordinary repairs.
o Example: Repainting a house, fixing a leaky roof, or replacing broken windows
due to general wear.
 Extraordinary Repairs:
o Definition: These are repairs that are exceptional and required to restore the
property’s functionality, especially in the face of unexpected events.
o Cost: These repairs are the responsibility of the owner unless the usufructuary
pays for them after notifying the owner of the urgency.
o Right to Reimbursement: If the usufructuary performs extraordinary repairs
after notifying the owner, they are entitled to reimbursement and may retain the
property until reimbursed. They may also be entitled to the increased value of the
property caused by these repairs once the usufruct terminates.
o Example: Major structural repairs, such as replacing a collapsed roof or repairing
severe water damage.
  Key Concept of Notification:
o The usufructuary must notify the owner before making extraordinary repairs. If
they fail to do so, they risk losing the right to reimbursement or the increased
property value.

108.2 Payment of Annual Charges and Taxes:

 Taxes on Fruits:
o The usufructuary must pay annual charges and taxes related to the income or
fruits generated by the property.
o Example: Rent income from a property or harvests from land may be subject to
taxes, which the usufructuary must pay.
 Taxes on Capital:
o Taxes directly imposed on the property itself (the capital), such as land taxes,
are typically the responsibility of the owner, not the usufructuary.
o Example: If a property’s real estate tax is levied on the land, the owner pays it. If
the usufructuary does pay such taxes, they can demand reimbursement from the
owner and may retain the property until reimbursed.
 Land Taxes Debate:
o There is some debate about whether land taxes should be paid by the usufructuary
or the owner. Some legal experts argue it is the usufructuary’s responsibility since
the tax is based on the property's annual use, while others, including the Supreme
Court, believe land tax is tied to the capital and thus falls under the owner's
responsibility.

108.3 Obligation to Notify Owner of Prejudicial Acts by Third Parties:

 Third-Party Acts:
o If the usufructuary is aware of any act by a third party that could harm the
owner's right of ownership, they must inform the owner.
o This includes any attempts at dispossession or other actions that could
negatively affect the owner's future rights to the property.
o Example: If a neighbor is attempting to build a fence that encroaches on the
property, the usufructuary must inform the owner of the potential issue.
 Failure to Notify:
o If the usufructuary does not notify the owner of prejudicial acts, they may be held
liable for damages as though the harm was caused by their own actions.
o Example: If the usufructuary neglects to notify the owner about someone
attempting to illegally occupy the property, the usufructuary may be responsible
for the consequences.
 EXTINGUISHMENT OF USUFRUCT

Art. 603. Usufruct is extinguished:

(1) By the death of the usufructuary, unless a contrary intention clearly appears;
(2) By the expiration of the period for which it was constituted or by the fulfillment of any
resolutory condition provided in the title creating the usufruct;
(3) By merger of the usufruct and ownership in the same person;
(4) By renunciation of the usufructuary;
(5) By the total loss of the thing in usufruct;
(6) By the termination of the right of the person constituting the usufruct;
(7) By prescription. (513a)
Art. 604. If the thing given in usufruct should be lost only in part, the right shall continue on the
remaining part. (514)

Art. 605. Usufruct cannot be constituted in favor of a town, corpora- tion, or association for more
than fifty years. If it has been constituted, and before the expiration of such period the town is
abandoned, or the corpo- ration or association is dissolved, the usufruct shall be extinguished by reason
thereof. (515a)

Art. 606. A usufruct granted for the time that may elapse before a third person attains a certain age,
shall subsist for the number of years specified, even if the third person should die before the period
expires, unless such usufruct has been expressly granted only in consideration of the existence of such
person. (516)

Art. 607. If the usufruct is constituted on immovable property of which a building forms part, and
the latter should be destroyed in any manner whatsoever, the usufructuary shall have a right to make use
of the land and the materials.

The same rule shall be applied if the usufruct is constituted on a building only and the same should
be destroyed. But in such a case, if the owner should wish to construct another building, he shall have a
right to occupy the land and to make use of the materials, being obliged to pay to the usufructuary,
during the continuance of the usufruct, the interest upon the sum equivalent to the value of the land and
of the materials. (517)

Art. 608. If the usufructuary shares with the owner the insurance of the tenement given in usufruct,
the former shall, in case of loss, continue in the enjoyment of the new building, should one be
constructed, or shall receive the interest on the insurance indemnity if the owner does not wish to
rebuild.

Should the usufructuary have refused to contribute to the insur- ance, the owner insuring the
tenement alone, the latter shall receive the full amount of the insurance indemnity in case of loss, saving
always the right granted to the usufructuary in the preceding article. (518a)

Art. 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 usu- fruct. If the
owner chooses the latter alternative, he shall give security for the payment of the interest. (519)

Art. 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)

Art. 611. A usufruct constituted in favor of several persons living at the time of its constitution shall
not be extinguished until the death of the last survivor. (521)
 Art. 612. Upon the termination of the usufruct, the thing in usufruct shall be delivered to the owner,
without prejudice to the right of retention pertaining to the usufructuary or his heirs for taxes and
extraordinary expenses which should be reimbursed. After the delivery has been made, the security or
mortgage shall be cancelled. (522a)

109. Extinguishment of Usufruct

The usufruct, which grants a person the use and enjoyment of another's property, may come to an
end under several circumstances. These causes of extinguishment help define the termination of
the usufruct and the rights of the parties involved.

Causes for Extinguishment of Usufruct:

1. Death of the Usufructuary:

o The usufruct typically ends when the usufructuary dies, unless there is a clear
intention otherwise (e.g., a provision allowing the usufruct to continue after their
death).
o For corporations, towns, or associations, the usufruct cannot last beyond 50 years.
o The death of the owner does not extinguish the usufruct unless explicitly stated
in the agreement.
2. Expiration of the Period or Fulfillment of the Resolutory Condition:
o If the usufruct is for a fixed period, it ends when that period expires. Similarly, if
it is based on a specific condition, the usufruct will end when the condition is
fulfilled.
o If the usufruct is granted until a third person attains a certain age (e.g., a child
reaching adulthood), it may continue even if the third person dies, unless the
usufruct was expressly created for their benefit.
3. Merger of Usufruct and Ownership:
o When the usufructuary becomes the owner of the property (i.e., the same person
holds both the usufruct and ownership), the usufruct is extinguished.
4. Renunciation of the Usufructuary:
o If the usufructuary voluntarily gives up their rights to the usufruct, it is
extinguished.
5. Total Loss of the Property:
o If the property held in usufruct is lost, whether through physical destruction or
juridical means (e.g., the property goes out of commerce or becomes untraceable),
the usufruct ends.
6. Termination of the Right of the Person Constituting the Usufruct:
o If the person who granted the usufruct no longer has the right to do so (e.g., they
lose ownership), the usufruct is extinguished.
7. Prescription:
o Usufruct may be extinguished by prescription, meaning that if the usufructuary
does not exercise their rights over the property for a prescribed period, the
usufruct can be terminated.
Additional causes for extinguishment include:

 Non-compliance with conditions set by the parties.

 Rescission or annulment of the contract establishing the usufruct.
 Causes that extinguish legal usufructs (usufructs created by law, such as those granted to
spouses or for support purposes).

§ 109.1 Death of the Usufructuary

 Ordinary Rule: The usufruct is extinguished upon the death of the usufructuary, as it is
typically granted for their lifetime.
 Corporations or Associations: If granted to a town, corporation, or association, the
usufruct is limited to 50 years, to prevent it from being perpetual.
 Death of the Owner: The death of the property owner does not terminate the usufruct
unless specifically stated.

Exceptions to the General Rule:

1. Express Agreement: If the agreement explicitly states that the usufruct will continue
after the usufructuary's death, it will not be extinguished by their death.
2. Multiple Usufructs: In cases where there are multiple usufructuaries (e.g., multiple
beneficiaries), the usufruct ends only upon the death of the last surviving usufructuary.

§ 109.2 Expiration of Period or Fulfillment of Resolutory Condition

 The usufruct ends when the fixed period expires or when the condition attached to it is
fulfilled.
 Specific Example: If the usufruct is granted until a child reaches adulthood (e.g., age 18),
it will continue even if the child dies before reaching that age, unless the usufruct was
granted with the condition of the child’s survival.

§ 109.3 Loss of the Property

 Total Loss: The usufruct is extinguished if the property is lost, meaning it is destroyed,
taken out of commerce, or cannot be recovered. Loss can be physical (e.g., the property
is destroyed) or juridical (e.g., the property becomes untraceable).

Exceptions:
 1. Destruction of a Building:
o If a building held in usufruct is destroyed, the usufruct is not extinguished. The
usufructuary may continue using the land and materials. If the owner rebuilds,
the usufruct continues over the land and materials, but the usufructuary does not
gain rights to the new building unless they contributed to insurance for the
property.
2. Expropriation for Public Use:
o If the property is expropriated, the usufruct does not end. The owner may:
 Replace it with a property of similar value.
 Pay the usufructuary the legal interest on the indemnity for the duration of
the usufruct, securing such payment.

§ 109.4 Effect of Bad Use

 Bad Use Does Not Terminate Usufruct: Even if the usufructuary misuses the property,
the usufruct itself does not end. However, the owner can take action if misuse causes
significant harm.
o If the usufructuary’s bad use damages the property, the owner may demand that
the property be returned, and may offer to pay the usufructuary a sum based on
the property’s net income, excluding expenses and compensation for the
usufructuary's management.

§ 110. Obligations of Usufructuary Upon Termination

Upon the termination of the usufruct, the usufructuary must return the property to the owner.
However, the usufructuary has a right of retention under certain conditions:

 Taxes Paid: If the usufructuary has paid taxes that are directly imposed on the capital
(e.g., real estate taxes), they can retain the property until reimbursed for such payments.
 Extraordinary Repairs: If the usufructuary has made extraordinary repairs, they can
retain the property until the owner reimburses them for these repairs, along with any
increase in property value due to those repairs.