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Civil Law Review Property Notes

Usufruct successively, and in every case from or to a certain day, purely or


conditionally. It may also be constituted on a right, provided it is not
Art. 562 Usufruct gives a right to enjoy the property of another with strictly personal or transmissible.
the obligation of preserving its form and substance, unless the title
constituting it or the law otherwise provides. 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
right to enjoy property of another in case it is deficient, the provisions contained in the two following
obligation to preserve its form and substance Chapters shall be observed.

Note: What governs:


- it is the right to enjoy the property of another temporarily, including both the - Usufruct is governed primarily by the title creating the usufruct, or in the
jus utendi (right to use) and the jus fruendi (right to the fruits) absence thereof, by Articles 566-612 of the Civil Code
- rights may be the object of usufruct provided it is not strictly personal and - Legal usufruct law constituting it will primarily govern
intransmissible - Voluntary usufruct act constituting it
- Mixed usufruct law on prescription and the extent of the use
Characteristics of Usufruct:
(1) Real right of use and enjoyment (whether registered or not) Note:
(2) Temporary duration - in case of conflict between the will pf the parties or the person creating the
(3) Transmissible usufruct and the provisions of the Civil Code, the former prevails
(4) Constituted on property whose ownership is vested with another
Rights of the Usufructuary
Abnormal Usufruct
- involves things which would be useless to the usufructuary unless they are Art. 566 The usufructuary shall be entitled to all the natural, industrial
consumed 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
Usufruct distinguished from Lease considered a stranger.

Usufruct Lease When not entitled to fruits?


Nature of right Real right Personal right - when usufruct constituted only on part of the frutis
Creator of right Owner May not be owner - agreement provides otherwise
Origin Law, contract, will, Contract
prescription Rule on Hidden Treasure
Extent of enjoyment All fruits, uses and Certain use only (as
benefits stipulated) Art. 438 Hidden treasure belongs to the owner of the land, building, or
Repairs and Taxes Ordinary repairs and None other property on which it is found.
taxes
Nevertheless, when the discovery is made on the property of another, or
Art. 563 Usufruct is constituted by law, by the will of private persons of the State or any of its subdivisions, and by chance, one-half thereof
expressed in acts inter vivos or in a last will and testament, and by shall be allowed the finder. If the finder is a trespasser, he shall not be
prescription. entitled to any share of the treasure.

Art. 564 Usufruct may be constituted on the whole or a part of the


fruits of the thing, in favor of one or more persons, simultaneously or
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Civil Law Review Property Notes

If the things found be of interest to science or the arts, the State may Art. 569 Civil fruits are deemed to accrue daily, and belong to the
acquire them at their just price, which shall be divided in conformity with usufructuary in proportion to the time the usufruct may last.
the rule instead.
The usufructuary may lease the property in usufruct to another.
Art. 567 Natural or industrial fruits growing at the time the usufruct
begins, belong to the usufructuary. What if usufruct expires before termination of lease?
Usufruct entitled only to the rents corresponding to duration of the usufruct.
Those growing at the time the usufruct terminates, belong to the Rents for the remaining period belong to the owner.
owner.
Art. 570 Whenever a usufruct is constituted on the right to receive a
In the preceding cases, the usufructuary, at the beginning of the rent or periodical pension, whether in money or in fruits, or in the
usufruct, has no obligation to refund to the owner any expenses interest on bonds or securities payable to bearer, each payment due
incurred; but the owner shall be obliged to reimburse at the shall be considered as the proceeds or fruits of such right.
termination of the usufruct, from the proceeds of the growing fruits,
the ordinary expenses of cultivation, for seed and other similar Whenever it consists in the enjoyment of benefits accruing from a
expenses, incurred by the usufructuary. participation in any industrial or commercial enterprise, the date of the
distribution of which is not fixed, such benefits shall have the same
The provisions of this article shall not prejudice the rights of third character.
persons, acquired either at the beginning or at the termination of the
usufruct. In either case, they shall be distributed as civil fruits, and shall be
applied in the manner prescribed in the preceding article.
To whom fruits belong is there a right to reimbursement?
When usufruct constituted on certain rights, every payment or benefit shall
Fruits growing at the beginning of the usufruct be considered and distributed as civil fruit of such right.
- belong to the usufruct
- no need to reimburse owner Thus, payments and benefits that accrue after the termination of the usufruct
- But if innocent third person was the one who incurred expenses, usufruct belong to the owner. The date when the benefits accrue determine whether
must reimburse third person they should belong to the usufructuary or to the owner.

Fruits growing at the termination of usufruct Art. 571 The usufructuary shall have the right to enjoy any increase
- belong to the owner which the thing in usufruct may acquire through accession, the
- owner must reimburse usufructuary the ordinary cultivation expenses out of servitudes established in its favor, and, in general all the benefits
the fruits received inherent therein.
- if expenses exceed proceeds, owner no obligation to pay for deficiency
Right to enjoy in usufruct includes any increase the thing may acquire in
Note: accession, servitudes and benefits inherent.
- Above provision does not apply to civil fruits for they accrue daily - reason is that the usufruct covers the entire jus fruendi (right to the fruits)
and the entire jus utendi (right to the use)
Art. 568 If the usufructuary has leased the lands or tenements given
in usufruct, and the usufruct should expire before the termination of the Art. 572 The usufructuary may personally enjoy the thing in usufruct,
lease, he or his heirs and successors shall receive only the lease it to another, or alienate his right of usufruct, even by a gratuitous
proportionate share of the rent that must be paid by the lessee. title; but all the contracts he may enter into as such usufructuary shall
terminate upon the expiration of the usufruct, saving leases of rural
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Civil Law Review Property Notes

lands, which shall be considered as subsisting during the agricultural - not required to make any repairs to restore it to its former condition
year. - but usufructuary is liable for damage suffered by thing by reason of his
fraud or negligence; such liability may be set-off against the improvements
Rights of usufructuary with respect to the thing in usufruct he may have made on the property though
- right to enjoy the thing
- right to its fruits Art. 574 Whenever the usufruct include things which cannot be used
- right to lease it to another even without the owners consent (only lease, without being consumed, the usufructuary shall have the right to make
not acts of dominion like alienation, pledge, mortgage) use of them under the obligation of paying their appraised value at the
termination of the usufruct, if they were appraised when delivered. In
Rights of usufructuary with respect to the right of usufruct itself case they were not appraised, he shall have the right to return the same
- GR: Since the usufructuary is the owner of the right itself, he may alienate, quantity and quality, or pay their current price at the time the usufruct
pledge, or mortgage it, even by gratuitous title. ceases.
- Exception: (strictly personal and intransmissible)
o legal usufruct of the parent over his or her unemancipated children Art. 574 is another instance of an abnormal usufruct, thing cannot be used
o usufruct given in consideration of the person of the usufructuary to last without being consumed.
during his lifetime
Usufruct on Consumable Things
Rule on contract entered into by the usufructuary - usurfructuary shall have the right to make use of the consumable thing

GR: all contracts entered into by the usufructurary shall terminate upon the Obligations of usufructuary at termination:
expiration of the usufruct or earlier
Exception: rural leases which continue during the agricultural year (1) If appraised when delivered
a. pay appraised value
Note:
All the acts of administration to collect rents, to conserve the property by (2) If no appraisal made:
making all necessary repairs and paying all the taxes, special assessments, a. Return the same quantity and quality; or
and insurance premiums are vested in the usufructuary. (Fabie vs David) b. Pay current price at termination

Art. 573 Whenever the usufruct includes things which, without being Note:
consumed, gradually deteriorate through wear and tear, the - money can be the object of usufruct
usufructuary shall have the right to make use thereof in accordance - A usufruct on money (or any other fungible thing) is really a simple loan or
with the purpose for which they are intended, and shall not be obliged mutuum, and, therefore, the usufructuary can deal with the money as
to return them at the termination of the usufruct except in their owner.
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 Art. 575 The usufructuary of fruit-bearing trees and shrubs may make
negligence. use of the dead trunks, and even of those cut-off or uprooted by
accident, under the obligation to replace them with new plants.
Art. 573 is an instance of abnormal usufruct, form and substance cannot be
preserved because it gradually deteriorates through wear and tear. Art. 576 If in consequence of a calamity or extraordinary event, the
trees or shrubs shall have disappeared in such considerable number
Implications of usurfruct on things that gradually deteriorate through wear that it would not be possible or it would be too burdensome to replace
and tear them, the usufructuary may leave the dead, fallen or uprooted trunks at
- usufructuary not responsible for deterioration due to wear and tear
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Civil Law Review Property Notes

the disposal of the owner, and demand that the latter remove them and shall have no right to be indemnified therefor. He may, however,
clear the land. remove such improvements, should it be possible to do so without
damage to the property.
Dead trunks in usufruct on fruit-bearing trees and shrubs
The usufructuary has the right to make improvements, useful or luxurious, on
GR: Usufructuary has obligation to replace them with new plants the property held in usufruct as he may deem proper.
Exception: If caused by calamity or extraordinary event no need to replace if - but has no right to be indemnified by owner
too burdensome. Usufructuary may also demand owner to remove the dead - limited right of removal (only when does not cause damage to property)
trunks and clear the land.

Art. 577 The usufructuary of woodland may enjoy all the benefits Note:
which it may produce according to its nature. The right to remove is enforceable only against the owner, but not against a
purchaser in good faith to whom a clean title has been issued.
If the woodland is a copse or consists of timber for building, the - to be enforceable against third persons, right to remove improvements
usufructuary may do such ordinary cutting or felling as the owner was must be annotated on the certificate of title
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. Art. 580 The usufructuary may set-off the improvements he may have
made on the property against any damage to the same.
In any case, the felling or cutting of trees shall be made in such manner
as not to prejudice the preservation of the land. If damage exceeds value of improvements, usufructuary still liable for
deficiency.
In nurseries, the usufructuary may make the necessary thinnings in
order that the remaining trees may properly grow. If value of the improvements exceeds damage, usufructuary may remove
portion of improvement representing excess in value if can be done without
With the exception of the provisions of the preceding paragraphs, the injury to property; otherwise, excess accrues to owner.
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 Art. 581 The owner of property the usufruct of which is held by
the owner of the necessity for the work. another, may alienate it, but he cannot alter its form or substance, or do
anything thereon which may be prejudicial to the usufructuary.
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 The naked owner as owner can do all acts of dominion over his property
to oblige the owner thereof to give him the authority for this purpose under usufruct provided he cannot alter the form or substance of the property
and to furnish him whatever proof he may have. If in consequence of or do anything thereon which may cause a diminution in the value of the
the enforcement of the action he acquires the thing claimed, the usufruct or be prejudicial to the rights of the usufructuary.
usufruct shall be limited to the fruits, the dominion remaining with the
owner. 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
A usufructuary is a real party in interest. the administration and the collection of fruits or interest. Should the co-
ownership 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
Art. 579 The usufructuary may make on the property held in usufruct usufructuary.
such useful improvements or expenses for mere pleasure as he may
deem proper, provided he does not alter its form or substance; but he When usufruct is part of common property
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Civil Law Review Property Notes

- usufructuary exercises all rights of administration of co-owner and collect b. to pay legal interest for the time that the usufruct lasts, on the amount
fruits spent by the owner for extraordinary repairs and the proper interest on
- usufructuary bound by partition made by co-owners; remains usufructuary the sums paid as taxes by the owner
of the property allotted to co-owner c. to indemnify the naked owner for any losses due to his negligence or
of his transferees
Obligations of the Usufructuary
Obligation to make an Inventory
Art. 583 The usufructuary, before entering upon the enjoyment of the - a condition to be complied with before the usufructuary may enter into the
property, is obliged: possession and enjoyment of the property
(1) To make, after notice to the owner or his legitimate representative, - making of inventory is not necessary before commencement of right of the
an inventory of all the property, which shall contain an appraisal of usufructuary
the movables and a description of the condtion of the immovables; - concurrence of naked owner not required, notice of fact of making
(2) To give security, binding himself to fulfill the obligations imposed inventory is sufficient
upon him in accordance with this Chapter. - contain an itemized list and an appraisal of the movables and description of
the condition of the immovables
Classifications of Obligations of the Usufructuary
Obligation to give security
(1) Those before the usufruct begins: - the purpose of the giving of security or bond is to insure the fulfillment by
a. to make an inventory of the property; and the usufructuary of the obligations imposed upon him including the duty to
b. to give security return to the owner the thing in usufruct upon the termination of the
usufruct
(2) Those during the usufruct:
a. to take care of the property; Art. 584 The provisions of No. 2 of the preceding article shall not
b. to replace with the young thereof animals that die or are lost in certain apply to the donor who has reserved the usufruct of the property
cases when the usufruct is constituted on flock or her of livestock donated, or to the parents who are usufructuaries of their childrens
c. to make ordinary repairs property, except when the parents contract a second marriage.
d. to notify the owner of urgent extraoridinary repairs
e. to permit works and improvements by the naked owner not prejudicial Who are exempted from the obligation to give security in usufruct:
to the usufruct (1) donor who has reserved the usufruct of the property donated
f. to pay annual taxes and charges on the fruits (2) parents who are usufructuaries of their children, except when they
g. to pay interest on taxes on capital paid by the naked owner contract a second marriage
h. to pay debts when the usufruct is constituted on the whole of a
patrimony Note:
i. to secure the naked owners or courts approval to collect credits in - second marriage includes any subsequent marriage
certain cases
j. to notify the owner of any prejudicial act committed by third persons Art. 585 The usufructuary, whatever may be the title of the usufruct,
k. to pay for court expenses and costs regarding usufruct may be excused from the obligation of making an inventory or of giving
security, when no one will be injured thereby.
(3) Those at the termination of the usufruct:
a. to return the thing in usufruct to the naked owner unless there is a When obligation to make inventory or to give security excused:
right of retention (1) where the naked owner renounces or waives his right to the inventory or
security;

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Civil Law Review Property Notes

(2) where the title constituting the usufruct relieves the usufructuary from the demand their delivery to him upon his giving security for the payment
obligation; (last will and testament or deed od donation) and of the legal interest on their appraised value.
(3) where the usufructuary asks that he be exempted from the obligation and
no one will be injured thereby (relief may be sought from court if naked This article applies when the usufructuary who is under obligation to give
owner refuses) security cannot afford to do so and no one is willing to give security for them.

Art. 586 Should the usufructuary fail to give security in the cases in Caucion juratoria
which he is bound to give it, the owner may demand that the immovable - based on humane consideration (poor family needs house to live in)
be placed under administration, that the movables be sold, that the - by virtue of a promise under oath in lieu of giving security
public bonds, instruments of credit payable to order or to bearer be - oath involves take care of property and retain until termination of usufruct
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 Notes:
sale of the movable property be invested in safe securities. - usufructuary cannot alienate or lease the property under a sworn
undertaking, for this means that he does not need it
The interest on the proceeds of the sale of the movables and that on - courts may be asked if naked owner refuses in the situation
public securities and bonds, and the proceeds of the property placed - articles with artistic or sentimental value may not be sold (owner may
under administration, shall belong to the usufructuary. demand delivery after giving security instead)

Furthermore, the owner may, if he so prefers, until the usufructuary Art. 588 After the security has been given by the usufructuary, he
gives security or is excused from so doing, retain in his possession the shall have the right to all the proceeds and benefits from the day on
property in usufruct as administrator, subject to the obligation to which, in accordance with the title constituting the usufruct, he should
deliver to the usufructuary the net proceeds thereof, after deducting the have commenced to receive them.

Above provision applicable when no security is given

Notes:
- until usufructuary gives proper security, he cannot enter upon the
possession and enjoyment of the property
- the failure to give security does not extinguish the right of usufruct, thus,
usufructuary may alienate his right to the usufruct

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
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Civil Law Review Property Notes

Nuisance
Nuisance Per Se (in law) and Nuisance Per Accidens (in fact)
Art. 694 A nuisance is any act, omission, establishment, business,
condition of property, or anything else which: Nuisance Per Se (in law)
- an act, occupation, or structure which unquestionably is a nuisance at all
(1) Injures or endangers the health or safety of others; times and under any circumstances, regardless of location or surroundings
(2) Annoys or offends the senses; or - a nuisance because of its inherent qualities, productive of injury or
(3) Shocks, defies or disregards decency or morality; dangerous to life or property without regard to circumstance
(4) Obstructs or interferes with the free passage of any public highway
or street, or any body of water; or Nuisance Per Accidens (in fact)
(5) Hinders or impairs the use of property. - an act, occupation, or structure, not a nuisance per se, but which may
become a nuisance by reason of circumstances, location, or surroundings
Concept of nuisance
- The nuisance doctrine operates as a restriction upon the right of the owner Note:
of property to make such use of it as he pleases 1. The difference between nuisance per se and nuisance per accidens lies in
- Negligence is not an essential ingredient of a nuisance but to be liable for a the proof, not in the remedy
nuisance, there must be resulting injury to another in the enjoyment of his 2. Nuisance per se may be summarily abated under the law of necessity.
legal rights 3. Nusiance per accidens cannot be summarily abated without reasonable
notice.
Art. 695 Nuisance is either public or private. A public nuisance affects
a community or neighborhood or any considerable number of persons,
although the extent of the annoyance, danger or damage upon
individuals may be unequal. A private nuisance is one that is not
included in the foregoing definition.

Public Nuisance
- the doing of or the failure to do something that injuriously affects safety,
health, or morals of the public, or works some substantial annoyance,
inconvenience, or injury to the public.
- causes hurt, inconvenience, or damage to the public generally

Private Nuisance
- violates only private rights and produces damage to but one or a few
persons, and cannot be said to be public

Note:
The difference between a public and private nuisance is that public affects
the public at large or such of them as may come in contact with it, while
private affects the individual or a limited number of individuals only.

Another difference is in the remedies available. Public are indictable


(criminal), whereas private are actionable (civil), either for their abatement or
for damages, or both.
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Civil Law Review Property Notes

Donation Remuneratory vs Modal


- remuneratory donations are those which are given on account of services
Art. 725 Donation is an act of liberality whereby a person disposes rendered by the donee to the donor
gratuitously of a thing or right in favor of another, who accepts it. - modal donations are conditional only in the sense that a burden, charge,
condition or limitation is imposed by the donor but the burden is not
Requisites of Donation: (CIDA) technically a condition in the sense of an uncertain event upon which the
(1) donor has capacity to make donation effectivity or extinguishment of donation is made to depend for it is really a
(2) donor has intent to donate mere obligation imposed by the donor upon the done as a consideration of
(3) delivery the donation
(4) donees acceptance
Art. 727 Illegal or impossible conditions in simple and remuneratory
Note: donations shall be considered as not imposed.
- donation is actually a contract
- falls under contracts of pure beneficence, the consideration being the mere Conditions are illegal when they are contrary to law, morals, good customs,
liberality of the benefactor public order or public policy.
- ownership is transferred from notice of acceptance by donee

Art. 726 When a person gives to another a thing or right on account of


the latters merits or of the services rendered by him to the donor,
provided they do not constitute a demandable debt, or when the gift
imposes upon the done a burden which is less than the value of the
thing given, there is also a donation.

Kinds of Donation:
(1) inter vivos takes effect during the lifetime of the donor
(2) mortis causa takes effect upon the death of the donor
(3) propter nuptias made by reason of marriage and before its celebration,
in consideration of marriage, and in favor of one or both of the future
spouses

Remuneratory Donations
- given out of gratitude on account of the services rendered by the donee to
the donor, provided they do not constitute a demandable debt
- the motivating cause is gratitude, acknowledgment of a favor, a desire to
repay for past services rendered by the done to the donor; hence, a
donation given for future services cannot be remuneratory
- past services to be repaid must not constitute a demandable debt

Modal Donations
- imposes upon the done a burden
- a burden (which is necessarily future) less than the value of the gift is
imposed upon the done
- if burden is equivalent of the thing or right given, donation is onerous
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