Obligations of the Usufructuary
At the Beginning of the Usufruct
At the Beginning of Usufruct
Art. 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.
At the Beginning of Usufruct
1. To make an inventorya) Appraisal of the movablesb) Description of the condition of the immovables
2. To give security / bond
At the Beginning of Usufruct
• Not Requisite to Right
– Merely to the entry upon possession and enjoyment of the property
– If not complied with, usufruct will still commence but Art. 586 will apply (on failure to give security)
Making of Inventory
• Sufficient that the owner is notified in making the inventory
• Owner does not attend but discovers omissions/mistakes: May ask for a correction but has the burden of proof
• Expenses borne by the usufruct• May be in a private document
Giving of Security
• For fulfillment of ALL obligations imposed upon him as usufructuary
• May be personal bond, pledge, or mortgage
General Exemptions
1. Waived by owner2. Exemption by title3. Where usufructuary asks to be relieved, and
no one will be injured thereby (Art. 585)– If naked owner refuses to grant exemption
requested, a judicial declaration may be obtained
Additional Exemptions
A. Making of Inventory1. Title already makes an inventory
B. Giving of Security1. Usufruct is reserved by donor (Art. 584)• Donor who has reserved the property donated; or• Parents who are usufructuaries of their children’s property, except when
parents contract a second marriage2. Usufructuary takes possession under a caucion juratoria (Art. 587)• Exceptional circumstance permitted as a matter of common humanity
where a person and his family in need of shelter is allowed to enjoy the use of the property
• Cannot alienate right nor lease property• Made by taking an oath to fulfill properly the duties of a usufructuary
Effect of Failure to Comply
• Effect of Failure to Make Inventory– Argentine Code: Prima facie presumption that the
properties were received in good condition– Sanchez Roman: The same as that of the failure to
give security, hence Art. 586 also applicable• Effect of Failure to Give Bond– Art. 586 lists the potestative rights of the owner– Usufructuary who does not possess property may
alienate his right without prejudice to the right of the transferee to give the required security
Art. 586. Should the usufructuary fail to give security in the cases in which he is bound to give it, the owner may demand that the immovables be placed under administration, that the movables be sold, that the public bonds, instruments of credit payable to order or to bearer be converted into registered certificates or deposited in a bank or public institution, and that the capital or sums in cash and the proceeds of the sale of the movable property be invested in safe securities.
The interest on the proceeds of the sale of the movables and that on public securities and bonds, and the proceeds of the property placed under administration, shall belong to the usufructuary.
Furthermore, the owner may, if he so prefers, until the usufructuary gives security or is excused from so doing, retain in his possession the property in usufruct as administrator, subject to the obligation to deliver to the usufructuary the net proceeds thereof, after deducting the sums which may be agreed upon or judicially allowed him for such administration.
Effect of Filing a Bond
• Art. 588: Usufructuary entitled to all the benefits
• Accruing from the time he should have begun to receive them– Retroactive effect
Obligations of the Usufructuary
During the Usufruct
During the Usufruct
1. To take care of the thing like a good father of a family
2. To undertake ordinary repairs3. To notify owner of need to undertake
extraordinary repairs4. To pay for annual charges and taxes on the
fruits
During the Usufruct
5. To notify owner of any act detrimental to ownership
6. To shoulder the costs of litigation regarding the usufruct
7. To answer for fault or negligence of alienee, lessee, or agent of usufructuary
Take Care of the Thing
• Requisites for bringing action (Art. 589):1. Damage suffered by the property2. Through fault/negligence of the usufructuary
It is not necessary to wait for the termination of the usufruct to bring an action to recover the proper indemnity
• Effect of failure (Art. 610)– By bad use of the thing, causing considerable injury to
the owner• Entitles owner to demand delivery and administration of
the thing• Does not extinguish usufructuary
Undertake Ordinary Repairs (Art. 592)
• Requisites of Ordinary Repairs:1. Deteriorations or defects arise from the natural use
of the thing2. Repairs necessary for the preservation of the thing
• Usufructuary bound to pay only for the repairs made during the existence of the usufruct– If defects existed already at the time the usufruct
began, owner has obligation
Undertake Ordinary Repairs (Art. 592)
• Effect of RenunciationA. Defects caused by fault of the usufructuary• Cannot exempt himself by renunciation
B. Defects caused by ordinary use• May exempt himself from making repairs after
returning the fruits received during the time the defects took place
C. Defects after renunciation• To be repaired at the expense of owner
Notify Owner of Need to Undertake Extraordinary Repairs (Arts. 593-594)
• Kinds of defects/deteriorations requiring extraordinary repairs1. Caused by exceptional circumstances W/N
necessary for preservation2. Caused by natural use, but are not necessary for
its preservation
Notify Owner of Need to Undertake Extraordinary Repairs (Arts. 593-594)
• To be borne by the owner– But usufructuary may not compel owner• Usufructuary also not bound to make such repairs
– If need for repairs is urgent (required for preservation), usufructuary must notify owner
– Where owner makes repairs:• He may collect from the usufructuary the legal interest on the
amount invested while usufruct lasts
– Where owner does not make repairs:• Usufructuary may make them
– Only when necessary for preservation– Entitled to indemnity
Pay for the Annual Charges and Taxes on the Fruits
• Expenses Affecting Fruits– Cultivation, gathering of fruits, feeding cattle, etc.
• To be paid only when they can be considered as a lien upon the fruits
• Include only those levied upon the persons in possession or enjoyment thereof
• Charges for the first and last years divided with owner in proportion to the periods of possession
Pay for the Annual Charges and Taxes on the Fruits
Illustrative Case: Board of Assessment Appeals of Zamboanga del Sur v. Samar Mining Company, Inc., 37 SCRA 734, Feb. 27, 1971
BOAA v. Samico
• Facts:
Obligations of the Usufructuary
At the Time of the Termination of the Usufruct
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