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This article was originally published on June 1, 2022 and has been updated to reflect recent legal developments.

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

AT A GLANCE:

A usufructuary has several obligations under the law, beginning even before entering into the enjoyment of the property and continuing throughout the duration of the usufruct.

Under the Civil Code of the Philippines, a usufructuary is bound by specific obligations aimed at preserving the property while allowing the enjoyment of its fruits. These obligations arise even before the usufructuary begins using the property and continue for the duration of the usufruct.

The principle is reflected in Articles 581–602 of the Civil Code of the Philippines, which govern the usufructuary’s obligations. In National Housing Authority v. Court of Appeals, G.R. No. 148830, April 13, 2005, the Supreme Court stated that a 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

Duties Before Entering Upon the Enjoyment of the Property

Under Article 583, the usufructuary, before entering upon the enjoyment of the property, is obliged:

1. To make, after notice to the owner or his legitimate representative, 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 imposed upon him in accordance with this Chapter

Exceptions

However, pursuant to Article 584, the obligation to give security 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, except when the parents contract a second marriage. 

When a usufructuary may be excused

Under Article 585e, 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.

Duties During the Usufruct

Once the usufruct is in effect, the usufructuary must:

• The usufructuary shall take care of the things given in usufruct as a good father of a family. (Article 589)

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

• If the usufruct be constituted on a flock or herd of livestock, 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. (Article 591)

• The usufructuary is obliged to make the ordinary repairs needed by the thing given in usufruct. (Article 592)

• The usufructuary is obliged to notify the owner when the need for extraordinary repairs is urgent. (Article 593)

Financial and Legal Obligation

The usufructuary is also responsible for financial and legal matters concerning the property:

• The payment of annual charges and taxes and of those considered as a lien on the fruits, shall be at the expense of the usufructuary for all the time that the usufruct lasts. (Article 595)

• 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. (Article 597)

• 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. (Article 598)

• 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.  (Article 599)

• 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. (Article 601)

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

A usufruct balances the right to enjoy property with a duty to preserve it. By understanding the obligations under the Civil Code and adhering to the duties of care, notification, and financial responsibility, usufructuaries can exercise their rights responsibly while safeguarding the interests of the property owner.

Related Articles:

• RIGHTS OF A USUFRUCTUARY
• ALLOWING ONE TO ENJOY ANOTHER’S PROPERTY
• CONTINUING ANIMOSITY AS A GROUND FOR TERMINATING A USUFRUCT

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