Usufruct

Full ownership = Naked ownership +
Usufruct
Naked ownership = Full ownership -
Usufruct
Usufruct = Full ownership - Naked

General Rule:
The usufructuary is bound to preserve the
form and substance of the thing in usufruct.
This is to prevent extraordinary exploitation,
prevent abuse of property and prevent
impairment.
In case of an abnormal usufruct, whereby
the law or the will of the parties may allow the

1. To Receive the fruits of the property in usufruct and half of the hidden
treasure he accidentally finds on the property (NCC, Articles 566 and
438)
2. To enjoy any Increase which the thing in usufruct may acquire
through accession (NCC, Art. 571);
3. To Retain the thing until he is reimbursed for advances for
extraordinary expenses and taxes on the capital (NCC, Art. 612);
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 (NCC, Art. 579);
5. To Collect reimbursements from the owner for indispensable extra
ordinary repairs, taxes on the capital he advanced, and damages caused
to him;
6. To Remove improvements made by him if the same will not injure the
property;

Belong to the owner but he is bound to
reimburse the usufructuary of the
ordinary cultivation expenses (NCC, Art.
545) out of the fruits received (NCC, Art.
443). The right of innocent third parties
should not be prejudiced

The usufructuary cannot:
1. Sell, pledge or mortgage the property itself
because he is not the owner;
2. Sell future crops (growing crops at the
termination of the usufruct belong to the owner);
and
3. Lease the thing for a period longer than the
term of the usufruct without the consent of
owner
Exception: lease of rural lands which subsist

1. The usufructuary may construct and make
improvements on the property as he may deem proper;
2. Limitation: provided he does not alter its form and
substance;
3. Removal: usufructuary may generally remove
provided no injury is made on the principal even against
the will of the naked owner. If he has chosen not to
remove he cannot be compelled to remove them; and
4. Indemnity: no right to be indemnified if the
improvements cannot be removed. He may however set-

Requisites before set-off can be made:
1. Damage must have been caused by the
usufructuary;
2. Improvements must have augmented
the value of the property; and
3. Notice of intention to set-off

GR: A usufructuary cannot exercise acts
of ownership such as alienation or
conveyance.
XPNs: When what is to be alienated or
conveyed is a:
1. Consumable;
2. Property intended for sale; or
3. Property which has been appraised
when delivered (NCC, Art. 574)

The usufructuary can use (even for
firewood, though he is NOT the
naked owner) the following:
a. Dead trunks; and
b. Those cut off or uprooted by
accident.
BUT he must REPLACE them with
new plants (for indeed, he was not
the naked owner).

a. Of periodical pension, income,
dividends(NCC, Art. 570);
b. Of woodland(NCC, Art. 577);
c. Of right of action to recover real
property, real right, or movable
property(NCC, Art.578);
d. Of part of property owned in
common(Art.582);
e. Of the entire patrimony of a
person(NCC,Art. 598);

This is not a common or frequent usufruct
because:
a. Natural resources (including forest or
timber lands) belong to the State (Regalian
Doctrine under Art. XII, Sec. 3 ofthe 1987
Philippine Constitution);
b. A license is generally essential if one
desires to gather forest products(Revised
AdministrativeCode, Sec. 47)

1. To collect reimbursement from the owner:
a. For indispensable extraordinary repairs made by the
usufructuary (NCC, Art. 593);
b. For taxes on the capital advanced by the usufructuary
(NCC, Art. 597);
c. For damages caused by the naked owner;
d. For payment of increase in value of the immovable by
reason of repairs provided the owner is notified of the urgency
of such repairs but the latter failed to make said repairs
despite the notification, and the repair is necessary for the
preservation of the property (NCC, Art. 594).
2. To retain the thing until reimbursement is made

1. Before the usufruct
a. Make an inventory; and
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 extraordinary repairs;
e. Permit works & improvements by the naked owner not prejudicial to
the usufruct;
f. Pay annual taxes and charges on the fruits;
3. After the usufruct
a. Return the thing in usufruct to the naked owner unless there is a right
of retention;

1. To make reimbursement for advances
of the usufructuary (NCC, Art. 597);
2. To cancel the security, upon discharge
of the usufructuary’s obligations (NCC,
Art. 612);
3. To respect leases of rural lands by the
usufructuary for the balance of the
agricultural year (NCC, Art. 572)

1. AcquisitivePrescription;
2. Total Loss of the thing;
3. Death of the usufructuary;
4. Termination of right of the person constituting
the usufruct;
5. Expiration of the period or fulfilment of the
resolutory condition;
6. Renunciation by the usufructuary; and
7. Merger of the usufruct and ownership in the
same person who becomes the absolute owner

a. Annulment of the act or title constituting the
usufruct;
b. Rescission;
c. Expropriation;
d. Mutual withdrawal;
e. Legal causes for terminating legal usufruct; or
f. Abandonment or dissolution of juridical entity
(e.g.corporation) granted with usufruct before
the lapse of the period.

Usufruct

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Usufruct