RECTORÍA GENERAL
2 TÉCNICAS DE LIMPIEZA Y MANEJO DE SUSTANCIAS
Rights of the usufructuary as to the thing and its fruits (RISERI-CR)
1. To Receive the fruits of the property in usufruct and half of the hidden treasure he accidentally finds on the property
(Arts. 566, 438, NCC)
2. To enjoy any Increase which the thing in usufruct may acquire
through accession (Art. 571, NCC)
3. To personally Enjoy the thing or lease it to another (Arts. 572-
577, NCC) generally for the same or shorter period as the
usufruct
4. To make such Improvements or expenses on the property he
may deem proper and to remove the improvements provided no damage is caused to the property (Art. 579, NCC)
5. To Set-off the improvements he may have made on the
property against any damage to the same (Art. 580, NCC) 6. To Retain the thing until he is reimbursed for advances for
extraordinary expenses and taxes on the capital (Art. 612,
NCC)
7. To Collect reimbursements from the owner for indispensable
extra ordinary repairs, taxes on the capital he advanced, and damages caused to him
8. To Remove improvements made by him if the same will not
injure the property
Q: 120-hectares of land from the NHA property were reserved for the site of the National Government Center. 7 hectares from which were withdrawn from the operation. These revoked lands were reserved for the Manila Seedling Bank Foundation, Inc. (MSBF). However, MSBF occupied approximately 16 hectares and leased a portion thereof to Bulacan Garden Corporation (BGC). BGC occupies 4,590 sqm. Implementing such revocation, NHA ordered BGC to vacate its occupied area. BGC then filed a complaint for injunction. Has BGC any right over the leased premises?
A:A usufructuary may lease the object held in usufruct. The owner
of the property must respect the lease entered into by the usufructuary so long as the usufruct exists. MSBF was given a usufruct over only a 7-hectare area. NHA cannot evict BGC if the 4,590 square meter portion MSBF leased to BGC is within the 7- hectare area held in usufruct by MSBF. However, the NHA has the right to evict BGC if BGC occupied a portion outside of the 7- hectare area covered by MSBF's usufructuary rights (NHA v. CA,
G.R. No. 148830, Apr. 13, 2005).
Rights of the usufructuary as to the usufruct itself (ARC)
1. To Alienate or mortgage the right of usufruct (Art. 572, NCC)
2. In a usufruct to Recover property/real right, to bring the action and to oblige the owner thereof to give him the proper authority and the necessary proof to bring the action (Art.
578, NCC)
3. In a usufruct of part of a Common property, to exercise all the
rights pertaining to the co-owner with respect to the administration and collection of fruits or interests.
Exercise acts of ownership by a usufructuary
GR: A usufructuary cannot exercise acts of ownership such as
alienation or conveyance.
XPNs: When what is to be alienated or conveyed is a: (CIA)
1. Consumable’
2. Property Intended for sale;
3. Property which has been Appraised when delivered.
NOTE: If it has not yet been appraised or if it is not a consumable: return the
Rights of the usufructuary as to advances and damages
To right to be:(ITD)
1. Reimbursed for Indispensable extraordinary repairs made by
him
NOTE: The reimbursement shall be in the amount equal to the
increase in value of the property (Art. 594, NCC)
2. Reimbursed for Taxes on the capital advanced by him (Art.
597, par. 2, NCC)
3. Indemnified for Damages caused by usufructuary to the
naked owner (Art. 581, NCC)
Rights of a usufructuary on pending natural and industrial fruits
Fruits
Growing: Rights of the usufructuary
At the beginning of the usufruct
Not bound to refund to the owner the expenses of cultivation and production
At the termination
of the usufruct
Belong to the owner but he is bound to reimburse the usufructuary of the ordinary cultivation expenses (Art. 545, NCC) out of the fruits received
(Art. 443, NCC)
NOTE: Civil fruits accrue daily, stock dividends and cash dividends are
considered civil fruits.
When the expenses of cultivation and production exceeds the proceeds of the growing fruits
If the expenses exceed the proceeds of the growing fruits,the owner has no obligation to reimburse the difference (Art. 567,
NCC).
Lease, Alienation and Encumbrance of the property subject to usufruct
The usufructuary, not being the owner of the thing subject to usufruct, cannot alienate, pledge or mortgage the thing itself. However, the usufurctuary may lease it to another alienate, pledge or mortgage his right of usufruct, even by 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 (Art. 572, NCC).
Transfer of the Usufruct
The transferee can enjoy the rights transferred to him by the usufructuary until the expiration of the usufruct. Transfer of usufructuary rights, gratuitous or onerous, is co-terminous with the term of usufruct.
When the thing subject to usufruct is mortgaged by the naked owner
If the thing subject of usufruct is mortgaged by the owner, the usufructuary has no obligation to pay mortgage. But if the same is attached, the owner becomes liable for whatever is lost by the usufructuary.
Liability of a usufructuary
The usufructuary may be liable for the damages suffered by the naked owner on account of fraud committed by him or through his negligence.
However, the usufructuary is not liable for deterioration due to:
1. Wear and tear
2. A fortuitous event
Rights and obligations of the usufructuary with respect to consumable things
The usufructuary shall have the right to make use of the consumable thing. At the termination of the usufruct, the usufructuary has the obligation to:
1. If the thing has been appraised, pay its appraised value;
2. If the thing has not been appraised:
a. Return the same quantity and quality; or
b. Pay its current price at such termination.
Offsetting of damages and improvements introduced by the usufructuary
If the damages exceed the value of the improvements, the usufructuary is liable for the difference as indemnity.
If the improvements exceed the amount of damages, the usufructuary 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. Obligations of the usufructuary
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
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. Effects of failure to post a bond or security
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.
Effects of failure to give security
1. On the rights of the naked owner
a. May deliver the property to the usufructuary
b. May choose retention of the property as administrator
c. May demand receivership or administration of the real
property, sale of movable, conversion or deposit of credit instruments or investment of cash or profits
2. On the rights of the usufructuary
a. Cannot posses the property until he gives security
b. Cannot administer property
c. Cannot collect credits that have matured nor invest
them except the court or naked owner consents d. May alienate his right to usufruct.
Exemption of usufructuary from the obligation to give security
Usufructuary may be exempt from the obligation to give security 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.
Caucion juratoria – “by virtue of a promise under oath”
The usufructuary, being unable to file the required bond or security, may file a verified petition in the proper court asking for the delivery of the house and furniture necessary for himself and his family so that he and his family be allowed to live in a house included in the usufruct and retain it until the termination of the usufruct without any bond or security.
The same rule shall be observed with respect to implements, tools and other movable property necessary for an industry or vocation in which he is engaged (Art. 587).
Right to proceeds
After the security has been given by the usufructuary shall have a right to all the proceeds and benefits from the day on which he should have commenced to receive them (Art. 588, NCC).
Ordinary repairs
It includessuch 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.
XPN: when there is fraud or negligence
Extraordinary repairs
It includes:
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.
Liability for extraordinary repairs
The liability for extraordinary repairs depends on who made the 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.
Right of retention of the usufructuary
The usufructuary has a right of retention even after the termination of the usufruct until he is reimbursed for the increase in value of the property caused by extraordinary repairs for preservation.
Determination of increase in value
The increase in value is the difference between the value of the property before the repairs were made and the value after the repairs have been made.