Photo from Unsplash | Julia Kicova

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:

Article 565 provides that 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 Civil Code shall be observed.

Maintaining and preserving another person’s property may not always be done with the same degree of care as when one maintains his or her own. This is precisely why the law carefully defines the rights and limitations of a usufructuary.

To recall, n Mercedes Moralidad vs. Spouses Diosdado Pernes and Arlene Pernes, G.R. No. 152809, August 3, 2006, the Supreme Court explained that usufruct, in essence, is nothing else but simply allowing one to enjoy another’s property. It is also defined as the right to enjoy the property of another temporarily, including both the right to use and the right to fruits, with the owner retaining the right to dispose or the power to alienate the same.

After understanding the concept of usufruct, we now examine the rights granted to a usufructuary.

Chapter 2, Title VI of the Civil Code of the Philippines lays down the governing provisions. Article 565 provides that 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 Civil Code shall be observed. 

Rights of the Usufructuary

Under the Civil Code of the Philippines, the usufructuary is entitled to the following rights:

1. Right to Fruits (Article 566 – 570)

a. All Fruits (Article 566): The usufructuary shall be entitled to all the natural, industrial 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 considered a stranger. 

b. Fruits at the Beginning and End of Usufruct (Article 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 usufruct, from the proceeds of the growing fruits, the ordinary expenses of cultivation, for seed, and other similar expenses incurred by the usufructuary.

c. Leased Property (Article 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.

d. Civil Fruits (Article 569 – 570):

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

ii. Whenever a usufruct is constituted on the right to receive a rent or periodical pension, whether in money or in fruits, or in the interest 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 character.

In either case they shall be distributed as civil fruits, and shall be applied in the manner prescribed in the preceding article. (Article 570)

2. Right to Accession and Inherent Benefits (Article 571)

The usufructuary shall have the right to enjoy any increase which the thing in usufruct may acquire through accession, the servitudes established in its favor, and, in general, all the benefits inherent therein.

3. Right to Personally Enjoy the Thing (Article 572)

The usufructuary may personally enjoy the thing in usufruct, lease it to another, or alienate his right of usufruct, even by a gratuitous 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.

4. Usufruct Over Things That Gradually Deteriorate (Article 573 – 577)

1. Things that Gradually Deteriorate (Article 573): Whenever the usufruct includes things which, without being consumed, gradually deteriorate through wear and tear, the usufructuary shall have the right to make use thereof in accordance with the purpose 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.
2. Over Consumable Things (Article 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.
3. Over Fruit-Bearing Trees and Shrubs (Article 575-576):
   1. The usufructuary of fruit-bearing trees and shrubs may make use of the dead trunks, and even of those cut off or uprooted by accident, under the obligation to replace them with new plants. (Article 575)
   2. 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 disposal of the owner, and demand that the latter remove them and clear the land. (Article 576)
4. Woodland (Article 577): The usufructuary of woodland may enjoy all the benefits which it may produce according to its nature.

5. Right to Bring an Action (Article 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 enforcement of the action he acquires the thing claimed, the usufruct shall be limited to the fruits, the dominion remaining with the owner.

6. Right to Make Improvements (Articles 579–580)

1. 1. The usufructuary may make on the property held in usufruct 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. (Article 579)
   2. The usufructuary may set off the improvements he may have made on the property against any damage to the same.  (Article 580)

7. Owner’s Right to Alienate (Article 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.

8. Usufruct Over Property Held in Common (Article 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-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 usufructuary.

For a better understanding, let us take the case of Anulina L. Vda. De Bogacki vs. Hon. Sancho Y. Inserto et. al, G.R.No. L-39187 January 30, 1982.

In this case, the mother had a usufruct over one-sixth (1/6) of the property owned by her daughter. Due to a misunderstanding, the daughter left their home. Thereafter, the mother took exclusive possession of the entire property and collected rentals without sharing them with her daughter.

As a result, the daughter filed an action in court seeking the division of the property.

The court ordered that the mother was entitled to receive only one-sixth (1/6) of whatever rentals were collected from the property and directed her to turn over to the daughter the remaining five-sixths (5/6), including the amounts previously collected in excess of her share. 

When the mother failed to remit the amounts she had unduly received, the daughter moved for the sale of the mother’s usufructuary rights. 

The mother opposed, arguing that her usufructuary rights arose from parental authority and were necessary for the performance of her obligations toward her child. The court granted the motion for the issuance of a writ of possession filed by the mother. 

Hence, the daughter sought for the annulment of said order in favor of the mother. 

Is there an abuse of discretion in the levy and sale on execution of the petitioner’s usufructuary rights and the issuance of the writ of possession?

The Supreme Court held that such a petition is without merit. 

The Court had ruled that the usufruct of a widow may be transferred, assigned or otherwise disposed of by her as she may please, like any other hereditary property, and hence, an interest in real property which can be sold upon execution.

The usufruct granted in this case cannot be alienated or transferred to third persons because it arises from parental authority and is necessary to enable the parents to carry out their obligations to the incompetents under their authority. 

But, upon emancipation of the child or loss of parental authority, as in the case of the private respondent who has already attained the age of majority, is married, and living independently of the petitioner, the usufruct is extinguished.

RELATED ARTICLES:

• Allowing One To Enjoy Another’s Property
• OBLIGATIONS OF THE USUFRUCTUARY
• CONTINUING ANIMOSITY AS A GROUND FOR TERMINATING A USUFRUCT

Click here to subscribe to our newsletter

Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.

All rights reserved.