ANTICHRESIS (NCC ARTS.

2132-2139)

 Antichresis is a contract whereby the creditor acquires the right to receive the fruits
of an immovable of the debtor, with the obligation to apply them to the payment of
interest, if owing, and thereafter to the principal of his credit. (NCC, Art. 2132)

Characteristics of Antichresis:
1. Accessory contract; 

2. Formal contract – the amount of the principal 
 and of the interest must both be in
writing 
 (NCC, Art. 2134); 

NOTE: Delivery of possession of the immovable is not essential to the perfection
of the contract of antichresis so that this contract is classified as consensual
contract. Nevertheless, the creditor takes and retain possession of the property
until payment of debt (Rabuya, 2017).
3. It deals only with immovable property; 

4. It is a real right; 

5. The creditor has the right to receive the fruits 
 of the immovable; 

6. It can guarantee all kinds of valid obligations 
 (NCC, Arts. 2091 & 2139);
7. Indivisible in nature (NCC, Art. 2090). 


Form of a contract of antichresis and its contents:

1. Covers only the fruits of real property but not the immovable itself;
NOTE: Art. 1306 of the Civil Code gives the parties the freedom to stipulate
otherwise. The reduction of the amount of the fruits available to the creditor does
not vary the nature of the contract.
2. Delivery of the immovable is necessary for the creditor to receive the fruits and not that
the contract shall be binding;
3. Amount of principal and interest must be specified in writing (NCC, Art. 2134)
4. Express agreement that debtor will give possession to the creditor and that the creditor
will apply the fruits to the interest and then to the principal (NCC, Art. 2134).
NOTE: The fruits of the immovable which is the object of the antichresis must be
appraised at their actual market value at the time of the application (NCC, Art.
2138). The property delivered stands as a security for the payment of the obligation
of the debtor in antichresis. Hence, the debtor cannot demand its return until the
debt is totally paid.

Parties to a contract of antichresis:

1. Antichretic Creditor – One who receives the fruits on the immovable property of the
debtor;
2. Antichretic Debtor – One who pays his debt through the application of the fruits of his
immovable property.

Rights of antichretic creditor:

1. Right to fruits and income of the thing (NCC, Art. 2132);
2. Retain the thing until debt is paid (NCC, Art. 2136);
3. Have the thing sold upon non-payment at maturity (NCC, Art. 2137);
NOTE: In this case, the Rules of Court on the rules on foreclosure of mortgages
shall apply.
4. Preference to the proceeds of the sale of the thing; and
5. To be reimbursed for his expense for machinery and other improvements on the land,
and for the sums paid as land taxes.

Obligations of an antichretic creditor:

1. Pay the taxes and charges assessable against the property like real estate taxes and
others (NCC, Art. 2136), unless there is stipulation to the contrary;
2. Bear the necessary expenses for the preservation and repair of the property;
3. Apply the fruits received for payment of the outstanding interests, if any, and thereafter
of the principal (NCC, Art. 2132);
4. To render an account of the fruits to the debtor.

Remedy of the creditor in case of nonpayment of his credit:

Creditor does not acquire ownership of the real estate since what was transferred is not
the ownership but merely the right to receive fruits (NCC, Art. 2132).
1. File an action for specific performance; or
2. File a petition for the public sale of the property

 The application of the fruit upon the debt must be expressly agreed between the
creditor and the debtor that the former, having been given possession of the
properties given as security, is to apply their fruits to the payment of interest, if
owing, and thereafter to the principal of his credit (NCC, Art. 2132).

 The antichretic debtor can only demand the return of the property after having fully
paid his obligations to the creditor. It is not fair for the debtor to regain the
possession of the property when his debt has not been fully paid. Until there is full
payment of the obligation, the property shall stand as security therefor.

 A stipulation authorizing the antichretic creditor to appropriate the property upon

the non-payment of the debt within the period agreed upon is void (NCC, Art.
2038).

 The creditor in an antichresis and his successors-in- interest cannot ordinarily

acquire by prescription. Possession of the property is not in the concept of an
owner but that of a mere holder during the existence of the contract.

ANTICHRESIS vs. REAL ESTATE MORTGAGE

BASIS ANTICHRESIS REAL ESTATE

MORTGAGE
 Property is delivered to Debtor usually retains
creditor. possession of the property.
Delivery or non- delivery
of the property.

Creditor acquires only the Creditor has no right to

right to receive the fruits of
Right to fruits the property; does not
produce a real right unless
registered in the Registry
Property.
receive fruits, but mortgage
creates real right against
the property.

Creditor obliged to pay the Creditor has no such

taxes and charges upon the obligation.
Obligation to pay taxes estate unless stipulated
otherwise.

There is an express There is no such obligation

stipulation that the creditor on the part of the
Obligation to apply fruits shall apply the fruits to the mortgagee.
to the interest payment of the interest, if
owing, and thereafter to the
principal of the debt.

Real Property Real Property

Subject Matter

ANTICHRESIS vs. PLEDGE

BASIS ANTICHRESIS PLEDGE

Refers to real property. Personal property

Kind of Property

By mere consent By delivery (Real)

(Consensual).
Perfected
 Principal and interest must Need not be in writing, oral
be specified in writing, evidence may be allowed to
Necessity of Putting into otherwise contract is void. prove the same.
Writing

Debtor loses control of the Debtor loses control of the

subject matter of the subject matter of the
Effect in the Debtor’s contract. contract.
Control