BLOQUE IV: REALIZACIÓN DE
3.3.2. Pilotaje y validación del cuestionario definitivo
Q: What if the damages exceed the value of the improvements?
A: The usufructuary is liable for the difference as indemnity.
Q: What if the improvements exceed the amount of damages?
A: He may remove the portion of the improvements representing the excess in value if it can be done without injury; otherwise, the excess in value accrues to the owner.
Q: Why do improvements accrue to the owner?
A: Because there is no indemnity for improvements.
Q: What are the obligations of the usufructuary?
A:
1. Before the usufruct a. Make an inventory b. Give security
2. During the usufruct
a. Take care of property
b. Replace the young of animals that die or are lost or become prey when the usufruct is constituted on a flock or herd of livestock;
c. Make ordinary repairs
d. Notify the owner of urgent extra‐
ordinary repairs
e. Permit works & improvements by the naked owner not prejudicial to the usufruct
f. Pay annual taxes and charges on the fruits
g. Pay interest on taxes on capital paid by the naked owner
h. Pay debts when usufruct is constituted on the whole patrimony
i. Secure the naked owner’s/court's approval to collect credits in certain cases
j. Notify the owner of any prejudicial act committed by 3rd persons k. Pay for court expenses and costs
3. At the termination
a. Return the thing in usufruct to the naked owner unless there is a right of retention
b. Pay legal interest for the time that the usufruct lasts
c. Indemnify the naked owner for any losses due to his negligence or of his transferees
Note: If the animals all perish w/o fault but due to contagious disease / uncommon event –deliver remains saved. If the young of animals perished in part due to accident, usufruct continues on remaining portion. If the usufruct is constituted on sterile animals, they are considered as if fungible and have the obligation to replace same kind and quality.
OBLIGATIONS BEFORE THE USUFRUCTT Q: What are the effects of failure to post a bond or security?
A:
1. The owner shall have the following options:
a. receivership of realty;
b. sale of movables;
c. deposit of securities; or d. investment of money; or
e. retention of the property as administrator.
2. The net product shall be delivered to the usufructuary;
3. The usufructuary cannot collect credit due or make investments of the capital without the consent of the owner or of the court until the bond is given.
Q: When may the usufructuary be exempt from the obligation to give security?
A: When: SIR
1. No one will be Injured by the lack of the bond;
2. The donor (or parent) Reserved the usufruct of the property donated;
3. The usufruct is Subject to caucion juratoria where:
a. The usufructuary: takes an oath to take care of the things and restore them to its previous state before the usufruct is constituted.
b. The property subject to such cannot be alienated or encumbered or leased.
Reason: because this would mean that the usufructuary does not need the property if the thing or property can be alienated.
Q: What is caucion juratoria?
A: The usufructuary, being unable to file the required bond or security, files a verified petition in the proper court asking for the delivery of the house and furniture necessary for himself and his family without any bond or security. (Art. 587) Q: When does the usufructuary start to have a right to the proceeds and benefits after the security has been given?
A: He shall have a right to all the proceeds and benefits from the day on which he should have commenced to receive them. (Retroactivity) (Art.
588, NCC)
Q: What are ordinary repairs?
A: Such as are required by the wear and tear due to the natural use of the thing and are indispensable for its preservation. (Art. 592, NCC) Note:
GR: Usufructuary has no liability when the thing deteriorates due to wear and tear. He is obliged to return the thing in such state.
XPNs: when there is fraud or negligence
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Q: What are extraordinary repairs?
A:
1. Those required by the wear and tear due to the natural use of the thing but not indispensable for its preservation.
2. Those required by the deterioration of or damage to the thing caused by exceptional circumstances and are indispensable for its preservation.
Q: Who pays for extraordinary repairs?
A: Depends on the kind of extraordinary repairs:
(Art. 594, NCC)
1. If made by the owner ‐ he can make them but to his expense and he shall have the right to demand from the usufructuary the payment of legal interest on the amount expended during the duration of the usufruct.
2. If made by the usufructuary –
GR: the usufructuary may make them but he is not entitled to indemnity because they are not needed for the preservation of the thing.
XPN: He shall have the right to demand the payment of the increase in value at the termination of the usufruct provided that:
1. He notified the owner of the urgency of the repairs
2. The owner failed to make repairs notwithstanding such notification 3. The repair is necessary for the
preservation of the property.
Q: Does the usufructuary have a right of retention even after the termination of the usufruct?
A: Yes, until he is reimbursed for the increase in value of the property caused by extraordinary repairs for preservation.
Q: How is the increase in value determined?
A: It is the difference between the value of the property before the repairs were made and the value after the repairs have been made.
U N I V E R S I T Y O F S A N T O T O M A S F a c u l t a d d e D e r e c h o C i v i l
ACADEMICS CHAIR: LESTER JAY ALAN E. FLORES II
VICE CHAIRS FOR ACADEMICS: KAREN JOY G. SABUGO & JOHN HENRY C. MENDOZA VICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE
VICE CHAIRS FOR LAY‐OUT AND DESIGN: EARL LOUIE M. MASACAYAN & THEENA C. MARTINEZ
D. RIGHTS OF THE OWNER
Q: What are the rights of a naked owner and the limitations imposed upon him?
A:
Rights Limitations
Alienation Can alienate the thing in usufruct Alteration Cannot alter the form
and substance Enjoyment
Cannot do anything prejudicial to the
usufructuary
Construction and Improvement
Can construct any works and make any improvement provided it does not diminish the value or the usufruct or prejudice the rights of
the usufructuary.
Q: What is the effect of the death of the naked owner on the usufruct?
A: It does not terminate the usufruct. His rights are transmitted to his heirs.
Q: Is renunciation an assignment of right?
A: No, it is really abandonment by the usufructuary of his right and does not require the consent of the naked owner but it is subject to the rights of creditors.
Q: What is the obligation of the owner if the property held in usufruct is expropriated for public use?
A: The owner is obliged to:
1. either replace it; or
2. pay legal interest to usufructuary of the net proceeds of the same.
Q: What happens when a part of the thing subject of the usufruct is lost?
A: The remaining part shall continue to be held in usufruct.
Q: Can usufruct be constituted in favor of a town, corporation or association?
A: Yes, but it cannot be for more than 50 years.
Q: A usufruct is constituted on an immovable where a building is erected, and the building is destroyed, what will happen?
A: Usufructuary will have the right to make use of the land and materials.
Q: An insurance covering the object of usufructuary was obtained, who gets the proceeds?
A: If both of them paid premium: both will share in the insurance proceeds. If it was only the owner who paid, then proceeds will go to him alone.
Q: What is the effect of improper use of the thing by the usufructuary?
A: The owner may demand the delivery of and administration of the thing with responsibility to deliver net fruits to usufructuary.
Q: On 1 January 1980, Minerva, the owner of a building granted Petronila a usufruct over the property until 01 June 1998 when Manuel, a son of Petronila, would have reached his 3oth birthday. Manuel, however, died on 1 June 1990 when he was only 26 years old.
Minerva notified Petronila that the usufruct had been extinguished by the death of Manuel and demanded that the latter vacate the premises and deliver the same to the former. Petronila refused to vacate the place on the ground that the usufruct in her favor would expire only on 1 June 1998 when Manuel would have reached his 30th birthday and that the death of Manuel before his 30th birthday did not extinguish the usufruct.
Whose contention should be accepted?
A: Petronila’s contention is correct. Under Article 606 of the Civil Code, a usufruct granted for the time that may elapse before a third person reaches a certain age shall subsist for the number of years specified even if the third person should die unless there is an express stipulation in the contract that states otherwise.
In the case at bar, there is no express stipulation that the consideration for the usufruct is the existence of Petronila’s son. Thus, the general rule and not the exception should apply in this case. (1997 Bar Question)
Q: What are considered special usufructs?
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U N I V E R S I T Y O F S A N T O T O M A S F a c u l t a d d e D e r e c h o C i v i l
ACADEMICS CHAIR: LESTER JAY ALAN E. FLORES II
VICE CHAIRS FOR ACADEMICS: KAREN JOY G. SABUGO & JOHN HENRY C. MENDOZA VICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE
VICE CHAIRS FOR LAY‐OUT AND DESIGN: EARL LOUIE M. MASACAYAN & THEENA C. MARTINEZ
A: These are usufruct on:
1. Pension or income (Art. 570, NCC) 2. Property owned in common (Art. 582,
NCC)
3. Cattle (livestock) (Art. 591, NCC) 4. On Vineyards and woodland
(Arts 575‐576, NCC)
5. Right of action (Art. 578, NCC) 6. Mortgaged property (Art. 600, NCC) 7. over the Entire patrimony (Art. 598,
NCC)
8. things which Gradually deteriorate (Art. 573, NCC)
9. Consumable property (Art. 574, NCC)
E. EXTINCTION/TERMINATION
Q: How is usufruct extinguished?
A: PLDT‐ERM
1. Acquisitive Prescription
Note: the use by a third person and not the non‐use by the usufructuary 2. Total Loss of the thing
Note: if the loss is only partial, the usufruct continues with the remaining part.
3. Death of the usufructuary; unless a contrary intention appears.
Reason: Usufruct is constituted essentially as a lifetime benefit for the usufructuary or in consideration of his person.
4. Termination of right of the person constituting the usufruct
5. Expiration of the period or fulfillment of the resolutory condition
6. Renunciation by the usufructuary.
Note: it partakes the nature of a condonation or donation, it must comply with the forms of donation.
7. Merger of the usufruct and ownership in the same person who becomes the absolute owner thereof. (Art. 1275, NCC)
IX. EASEMENTS
A. CHARACTERISTICS
Q: What is an easement or servitude?
A: It is an encumbrance imposed upon an immovable for the benefit of:
1. another immovable belonging to a different owner; or
2. for the benefit of a community or one or more persons to whom the encumbered estate does not belong by virtue of which the owner is obliged to abstain from doing or to permit a certain thing to be done on his estate.
(Arts. 613‐ 614, NCC)
Q: Distinguish Dominant Estate from Servient Estate.
DOMINANT ESTATE SERVIENT ESTATE