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    TOELNTINO | PROPERTY | AUF  –  SOL 2014 Page 1 | Bantay TITLE VI: USUFRUCT CHAPTER I: USUFRUCT IN GENERAL ART: 562: DEFINITION OF USUFRUCT : De Buen defines usufruct as a “real right, of a temporary nature, which authorizes its holder to enjoy all the benefits which results from the normal enjoyment of another  ’s property, with the obligation to return, at the designated time, either the same thing or, in special cases, its equivalent. USE AND HABITATION : under the old Civil Code, the rights of use and habitation were also recognized and provided for.   ART. 524 o f that Code provides: “use gives the right to receive, out of the fruits of another’s property, whatever may be sufficient for the needs of the usuary and of his family, even should the latter increase. Habitation gives to the person having this right the authority to occupy in another' s house the apartment necessary for himself and for the members of' his family.”     These rights have been omitted from the present Code. o  The reason for their elimination, according to the Code Commission, is that these legal institutions are unknown in the Philippines. o  During the Japanese occupation of the Philippines, however, there were many cases of use and habitation (particularly the latter) in places of evacuation. o  These rights may now be considered as personal easements, under ART. 614. EXTENT OF USUFRUCT : usufruct is a real right and includes both the  jus utendi   and the  jus fruendi  .   The usufructuary, however, is bound to preserve the form and substance of the thing in usufruct.   This means preservation, not only of the material of which the object is made up, but also of the form which makes the thing suitable for the particular purpose for which the owner intends it. o  Thus, if the usufruct is on a fishpond, it must be preserved as a fishpond; if on a ricefield, it must be preserved as a ricefield.’      IN ABNORMAL USUFRUCT : the last part of this article, recognizing the possibility of' alteration, means that the law or the will of the parties may allow the modification of the substance of the thing, admitting the  quasi-usufruct   of the Roman Law. o  This has given rise to the classification of usufructs into normal   and abnormal  . o  Alteration of the substance of the thing is allowed in the latter. OBJECT OF USUFRUCT; RIGHTS : at present it can be said that all property can be the object of usufruct.   Thus, a usufruct can be created over a right, so long as the right has its own independent existence.   A servitude, having no existence independent of the tenements to which it attaches, cannot be the object of usufruct.    CONSUMABLE THINGS : consumable things cannot be enjoyed without consuming them; hence, there can be no right of usufruct independent of the right of ownership with respect to such things. o  But since the law recognizes usufruct over all kinds of things, if the thing should be consumable, the usufruct should be considered as on their value if they were appraised, or on an equal quantity and quality if they were not appraised.    UNPRODUCTIVE THINGS : usufruct can be created even on sterile or absolutely unproductive land, or things for mere pleasure, such as promenades, statues or paintings, even if they do not produce any utility. ART. 563: KINDS AS TO CAUSE : usufruct is classified as to cause into: LEGAL VOLUNTARY MIXED That provided by law, such as the usufruct of the parents over property of their unemancipated children. That created by the will of private persons, either by act inter vivos , such as contracts and donations, or by act mortis causa , such as testaments. By prescription. ART. 564: OTHER CLASSIFICATIONS : under this article, usufruct is classified as follows: 1) TOTAL or PARTIAL: depending whether it is constituted on the whole or part of a thing. 2) SIMPLE and MULTIPLE: depending upon whether it is constituted in favor of one or several persons. o  The latter into: SIMULTANEOUS and SUCCESSIVE, whether they are to enjoy it at the same time or one after another. 3) PURE, CONDITIONAL and WITH A TERM. 4) Usufruct of THINGS or of RIGHTS, depending upon whether one or the other is the object.    TOELNTINO | PROPERTY | AUF  –  SOL 2014 Page 2 | Bantay o  A usufruct over a right if the same nature as the right which is burdened.   Thus, a usufruct over a real right is also a real right, and a usufruct over a personal credit is in itself a credit. ART. 565: WILL OF PARTIES PREVAILS : the rights and duties of the usufructuary provided by law may be modified or eliminated by the parties.    AUTHORITY TO ALIENATE : the title constituting the usufruct may validly authorize the usufructuary to alienate the thing itself held in usufruct. o  If there are qualifications or restrictions on this authority, they must be observed. o  If the usufructuary is authorized to alienate the thing in case of necessity, it is the usufructuary who determines the question of necessity. CHAPTER 2: RIGHTS OF THE USUFRUCTUARY ART. 568: RIGHTS OF USUFRUCTUARY : the usufructuary has the right to enjoy the property, to the same extent as the owner, but only with respect to its use and the receipt of its fruits.   He has a right to administer the property in usufruct.   With respect to the use of the property, he has the right to receive from the thing all the service or benefit that it can give. o  This is recognized by ART. 571, which gives the usufructuary the right to enjoy all the benefits inherent in the thing.   He cannot, however, extract products which do not constitute fruits, because he is bound to preserve the form and substance of the thing.   Thus, he cannot convert an orchard into a grazing field, nor can he convert a ricefield into fishpond.   But dividends from shares of a corporation are fruits, whether in the form of cash or of stock dividends, and therefore belong to the usufructuary.   Usufructuary rights may be transferred, assigned or otherwise disposed of' by the usufructuary.   Like any other property rights, they are not exempt from execution and can be sold at public auction.   The fruits of a thing are those which it may produce at more or less regular intervals, without diminishing its substance. o  They belong to the usufructuary. o  On the other hand, there are products of a thing which when taken from it diminishes its substance, such as minerals from mines and stones from quarries. o  They form part of the capital and do not pertain to the usufructuary. o  However, if the owner, before the constitution of the usufruct, has dedicated the property to the exploitation of such products, these may be treated as fruits that shall pertain to the usufructuary. EFFECT OF AGREEMENT : the usufructuary does not receive all the fruits of the property when the usufruct is constituted only on part of the fruits, and when there is a different agreement between the parties.   With respect to hidden treasure, the parties may also freely stipulate, and even agree that hidden treasure found on the property shall belong wholly to the usufructuary. RIGHTS OF NAKED OWNER : the owner, during the usufruct, can exercise all the rights of ownership consistent with the enjoyment of the thing by the usufructuary.   He can sell or encumber it; and it can be attached by his creditors.   But none of these acts can affect the rights of the usufructuary.   The grantee can take possession of the property only after the expiration of the usufruct; easements created can be exercised only in so far as they do not prejudice the usufructuary.   The owner may exercise all actions necessary to protect his rights, such as the reivindicatory action, the action to remove clouds or quiet title, and in general all actions pertaining to an owner.   He is entitled to benefit from products which do not constitute fruits of the thing.   If treasure is found on the tenement, he gets the one-half pertaining to the owner. ART. 567: UNGATHERED FRUITS : fruits already matured at the time of the termination of the usufruct, which ordinarily would have already been gathered by the usufructuary, may remain ungathered for no fault imputable to him, but because of malice or an act imputable to the naked owner or a third person, or even due to force mqjeure or fortuitous event.   In such cases, the fruits should be considered as belonging to the usufructuary, pursuant to general principles of law as suppletory to the provisions of the Code. EXPENSES OF PRODUCTION : although the usufructuary is not bound to pay the expenses of cultivation and production to the naked owner for fruits pending at the beginning of the usufruct, he should pay such expenses to a third person who may have incurred them, under the provisions of the last    TOELNTINO | PROPERTY | AUF  –  SOL 2014 Page 3 | Bantay paragraph of this article, and under the general rule in article 443, to which this article merely provides an exception in the case of the naked owner. ART. 568: LEASE BY OWNERS : a lease executed by the owner before the creation of the usufruct is not extinguished by such usufruct. LEASE BY USUFRUCTUARY : the rents derived from the lease of properties in usufruct are civil fruits, and under ART. 569 they accrue from day to day.   The usufructuary is entitled to receive such rents only up to the time of the expiration of the usufruct, if the lease still subsists after the termination of the usufruct.   Thus, if the lease is for five years, and the usufruct terminates after the lease has been in force only two years, the usufructuary shall be entitled only to the rents for those two years; the rents for the remaining period of the lease will belong to the owner. ART. 569: ART. 570: ART. 571: ART. 572: EFFECT OF TRANSFER OF RIGHT : the transfer or lease of the usufruct does not terminate the relation of the usufructuary with the owner.   The usufructuary and his security continue to be liable in favor of the owner, for the fulfillment of the former's obligations, because these obligations are personal and cannot be extinguished by change of debtor without the consent of the creditor or owner.   The usufructuary will be liable to the owner for damages caused by the fault or negligence of the transferee or the lessee.   The usufruct does not terminate upon the death of the transferee, but it terminates upon the death of the usufructuary who has made the transfer. ALIENATION OF THING IN USUFRUCT : the usufructuary not being an owner, cannot alienate or dispose of the objects included in the usufruct.   Thus, he cannot renounce a servitude in favor of the tenement in usufruct; neither can he mortgage or pledge the thing, even if they constitute stocks or bonds.   The right of usufruct, however, is sometimes converted into a right of ownership, and the usufructuary may dispose of the things in the following cases: (1) When the things are consumable (ART. 574), (2) When the things by their nature are intended for sale, such as the merchandise in a commercial establishment, and (3) When the things, whatever their nature, are delivered under appraisal as equivalent to their sale; but this does not refer to the obligatory routine appraisal of movables in the making of the inventory under ART. 583. SALE OF FUTURE CROP : the usufructuary may sell a future crop.   If the usufruct terminates before the harvest, what are the legal consequences of such sale? If the sale is considered valid, the owner is entitled to receive the price from the vendee. If the price has been paid in advance to the usufructuary, he or his estate must deliver it to the owner.   The owner, however, may refuse to recognize the sale, which would be void as to him. o  The sale of a future crop is a sale of property not belonging to the usufructuary; it is void unless ratified by the owner. o  The only recourse of the vendee in this case is to recover from the usufructuary or his estate the amount that he has paid.   DE BUEN thinks that this sanction is too harsh. o  He suggests that a more equitable solution is to apply by analogy the provisions of ART. 568, dividing the price of the sale between the usufructuary and the owner in proportion to the length of possession of each in the agricultural year, but keeping the sale as valid. o  The provisions of ART. 567, PAR. 2, however, are clear and definite; the fruits growing at the time the usufruct terminates belong to the owner. o  The provisions of ART. 568, therefore, cannot be applied. ALIENATION OF LEGAL USUFRUCT : VALVERDE believes that o VALVERDE MANRESA, MORELL, CAMPUZANO, SPANISH SC and CASTAN Only voluntary usufructs can be alienated under this article, because legal usufructs are created by law for particular persons in view of certain relations and therefore cannot be enjoyed by others who do While the usufruct of the surviving spouse under the old Civil Code could be alienated, that of the parents over the property of unemancipated children could not be transferred because it    TOELNTINO | PROPERTY | AUF  –  SOL 2014 Page 4 | Bantay not have such relations. is affected by important obligations in favor of said children. *** The usufruct of the surviving spouse having been abolished by the present Code, it seems that now there can be no conflict of views; the legal usufruct of the parents cannot be alienated. ART. 573: NATURE OF DETERIORATION : in the natural use of' things, there may occur certain defects calling for repairs for their preservation, independent of the deterioration produced by age and time which slowly and without appreciable effects changes the aspect of the things from day to day.   It is to this latter kind of deterioration that the present article refers. LIABILITY TO INDEMNIFY : there are some things which deteriorate by use and become almost completely unserviceable, such as clothes and furniture; but even in such cases, it is sufficient if the usufructuary returns them in the condition in which they may be found at the time of the expiration of the usufruct.   The law renders the usufructuary liable only when he causes deterioration by his fraud or negligence.   Although there is no express provision on the matter, if the usufructuary does not return the things upon the expiration of the usufruct, he should pay an indemnity equivalent to the value of the things at the time of such expiration. ART. 574: USUFRUCT OVER CONSUMABLE THINGS : this special kind of usufruct, improperly called QUASI-USUFRUCT, is in reality converted into a simple loan.   It has been included in this part of the Code, because universal usufructs may often include consummables.   Usufructs over consummables exclusively may be very rare, but they can be constituted, and it is to them that the last part of ART. 562 refers when it provides, “un less the title constituting it or the law otherwise provides,” in connection with the obligation of the usufructuary to preserve the form and the substance of the thing in usufruct.   Thus, a sum of money can be the subject of usufructs.   The usufruct in this particular case is not upon the consummable things themselves which are delivered to the usufructuary, but upon the sum representing their value or upon a quantity of things of the same kind and quality. o  The usufructuary becomes the owner of the things in usufruct such as a sum of money or a quantity of liquids or grain; the grantor becomes merely a creditor entitled to the return of their value or of things of the same quantity and quality, according to the circumstances. ART. 575: ART. 576: ART. 577: ART. 578: ART. 579: RIGHTS OF USUFRUCTUARY : whenever the usufructuary can remove the improvements without injury to the property in usufruct, he has a right to do so, and the owner cannot prevent him from doing so even upon payment of their value.   This right, however, does not involve an obligation; hence, if the usufructuary does not wish to exercise it, he cannot be compelled by the owner to remove the improvements.   In the exercise of the right granted by this article, the usufructuary may demolish or destroy the improvement, such as a building, provided he leaves the land as it was before the construction of such improvement. SC OF SPAIN MANRESA The usufructuary who plants trees on the land in usufruct cannot cut and remove them, because such improvements cannot be removed without injury to the things. He CORRECTLY disagrees with this holding, because although the cutting of the trees may injure such trees, it will not injure the land which is the thing given in usufruct and to which the last part of the present article refers.   The right of the usufructuary to remove improvements can be enforced only against the owner, but not against a purchaser in good faith to whom a clean title has been issued. WHY NO INDEMNITY : if the improvements made by the usufructuary were subject to indemnity, we would have a dangerous and unjust situation in which the usufructuary could dispose of the owner's funds, by compelling him to pay for improvements which perhaps he would not have made.
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