property possession and usufruct

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POSSESSION Concept: The holding of the thing or the enjoyment of a right with the intention to possess in one’s own right. Elements: 1. there must be holding or control of a thing or right; exception: those cases mentioned in ART.537. 2. the holding or control must be with intention to possess. 3. it must be in one’s own right. v possession is characterized by two relations: 1. the possessor’s relation to the property itself; 2. the possessor’s relation to the world v form or degrees of possession 1. possession without any title whatever – mere holding or possession without any right or title at all e.g. thief, squatter; 2. possession with a juridical title – possession is predicated on a juridical relation existing between the possessor and the owner of the thing but not in the concept of owner e.g. lessee, usufructuary, agent, pledgee, trustee; 3. possession with a just title – possession of an adverse claimant whose title is sufficient to transfer ownership but is defective e.g when the seller is not the true owner or could not transmit his rights thereto to the possessor who acted in good faith; 4. possession with a title in fee simple – possession derived from the right of dominion or possession of an owner note: THIS IS THE HIGHEST DEGREE OF POSSESSION v nature of possession 1. as an act – it is simply the holding of a thing or the enjoyment of a right with the intention to possess one’s own right; 2. as a fact – when there is holding or enjoyment, then possession exists as a fact; it is the state or condition of a person having property under his control; 3. as a right – refers to the right of a person to that holding or enjoyment to the exclusion of all others having better right than the possessor; it may be : -jus possidendi or right to possession which is incidental to and included in the right of ownership; -jus possessionis or right of possession independent of and apart from the right of ownership *possession as a fact: 1. a possessor has a right to be respected in his possession, and should he be disturbed therein, he shall be protected in or restored to said possession; 2. possession is not a definitive proof of ownership nor is non – possession inconsistent therewith; possession, however, may create ownership either by occupation or by acquisitive prescription v classes of possession 1. possession in one’s own name or in the name of another; 2. possession in the concept of owner or possession in the concept of the holder; 3. possession in good faith or possession in bad faith v extent of possession 1. actual possession – is the occupancy in fact of the whole or at least substantially the whole;

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Page 1: Property Possession and Usufruct

POSSESSION Concept: The holding of the thing or the enjoyment of a right with the intention to possess in one’s own right. Elements:1.        there must be holding or control of a thing or right;

exception: those cases mentioned in ART.537.2.        the holding or control must be  with intention to possess.3.        it must be in one’s own right. v      possession is characterized by two relations:1.        the possessor’s relation to the property itself;2.        the possessor’s relation to the world v      form  or degrees of possession1.        possession without any title whatever – mere holding or possession without

any right or title at all  e.g. thief, squatter;2.        possession with a juridical title – possession is predicated on a juridical

relation existing between the possessor and the owner of the thing but not in the concept of owner e.g. lessee, usufructuary, agent, pledgee, trustee;

3.        possession with a just title – possession of an adverse claimant whose title is sufficient to transfer ownership but is defective  e.g when  the seller is not the true owner or could not transmit his rights thereto to the possessor who acted in good faith;

4.        possession with a title in fee simple – possession derived from the right of dominion or possession of an owner   note: THIS IS THE HIGHEST DEGREE OF POSSESSION

v      nature of possession1.        as an act – it is simply the holding of a thing or the enjoyment of a right with

the intention to possess one’s own right;2.        as a fact – when there is holding or enjoyment, then possession exists as a

fact; it is the state or condition of a person having property under his control;3.        as a right – refers to the right of a person to that holding or enjoyment to the

exclusion of all others having better right than the possessor; it may be :-jus possidendi or right to possession which is incidental to and included in the right of ownership;-jus possessionis  or right of possession independent of and apart from the right of ownership

 *possession as a fact:

1.        a possessor has a right to be respected in his possession, and should he be disturbed therein, he shall be protected in or restored to said possession;

2.        possession is not a definitive proof of ownership nor is non – possession inconsistent therewith; possession, however, may create ownership either by occupation or by acquisitive prescription

 v      classes of possession 1.        possession in one’s own name or in the name of another;2.        possession in the concept of owner or possession in the concept of the

holder;3.        possession in good faith or possession in bad faith v      extent of possession 1.        actual possession – is the occupancy in fact of  the whole or at least

substantially the whole;2.        constructive possession- is occupancy of part in the name of the whole under

such circumstances that the law extends the occupancy to the possession of the whole

 *DOCTRINE OF CONSTRUCTIVE POSSESSION

-          possession in the eyes of the law does not mean that a man has to have his feet on every square meter of ground before it can be said that he is in possession;

-          the general rule  is that the possession and cultivation of a portion of a tract of land under claim of ownership of all is constructive possession;

-          the exception is in relation to the size of  the tract in controversy with reference to the portion actually in possession of the claimant

 note: the doctrine does not apply where the possession is wrongful or the part allegedly constructively possessed is in the adverse possession of another ART.524NAME UNDER WHICH POSSESSION MAY BE EXERCISED 1.        in one’s own name: the fact of possession, and the right to such possession

are found in the same person such as the actual possession of an owner or a lessor of land;

2.        in the name of another: the one in actual  possession is without any right of his own, but is merely an instrument of another in the exercise of the latter’s  possession, such as the possession of an agent, servant or guard; it may be:

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-voluntary as when exercised by virtue of an agreement;-necessary or legal as when exercised by virtue of law, such as the possession in behalf of incapacitated person

 ART.525CONCEPT IN WHICH POSSESSION MAY BE HAD v      2 concepts:1.        possession in the concept of owner:-takes place when the possessor of a thing or right, by his actions ,is considered or is believed by other people as the owner, regardless of  the good or bad faith of the possessor;-it is possession under a claim of owership or title by one who is the owner himself or one who is not the owner but claims to be and acts as the owner; 2.        possession in the concept of holder:-takes place when the possessor of a thing or right holds it merely to keep or enjoy it, the  ownership pertaining to another person;-it is possession not under  claim of ownership, the possessor acknowledging in another a superior right which he believes to be of ownership, whether this be true or not;  *possession in concept of both owner and holder or in  neither:-distinction must be borne in mind between possession of the thing itself and possession of the right to keep or enjoy the thing;-rights are possessed in the concept of owner ART.526POSSESSOR IN GOOD FAITH AND POSSESSOR IN BAD FAITH DEFINED 1.        possessor in good faith is one who is not aware that there exists in his title or

mode of acquisition any flaw which invalidates it;2.        possessor in bad faith is one who possesses in any case contrary to the

foregoing  e.g. he is aware that there exists in his title or mode of acquisition a flaw which invalidates it

 note: the distinction between the two kinds of possession is important principally in connection with the receipt of fruits and the payment of expenses and improvements and the acquisition of ownership by prescription under art. 1127; 

-the distinction is immaterial in the exercise of the right to recover under art. 539 which speaks of every  possessor; -the good or bad faith is necessarily personal to the possessor but in the case of a principal and any person represented by another, the good or bad faith of the agent or legal representative will benefit or prejudice him for whom he acts ·         requisites for possession in good faith or in bad faith1.        the possessor has a title or mode of acquisition;2.        there is a flaw or defect in said title or mode;3.        the possessor is unaware or aware of the flaw or defect or believes that the

thing belongs or does not belong to him *”mistake upon a doubtful or difficult question of  law” may be the basis of good faith;-the phrase refers to honest error in the application of  the law or interpretation of doubtful or conflicting legal provisions or doctrines;-it is different from ignorance of the law;-ignorance of the law may only be a basis of good faith in exceptional circumstances ART.527PRESUMPTION OF GOOD FAITH -the provision does not say that good faith exists, but it is presumed;-it is just because possession is the outward sign of ownership e.g of the presumption:-defendant’s  possession of personal property alleged to have been stolen will be presumed to have been acquired in good faith until that presumption is overcome by satifactory evidence;-a purchaser of property at  a public auction by the sheriff is a possessor in good faith  although ejected therefrom by a subsequent judgment in favor of the real owner in the absence of proof of bad faith ART.528CESSATION OF GOOD FAITH DURING POSSESSION -possession which begins in good faith is presumed to continue  in good faith until the possessor acquires knowledge of the facts showing a defect or weakness in his title 

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*bad faith begins or good faith is interrupted from the time the possessor becomes aware that he possesses the thing improperly or  wrongfully NOT from the time possession was acquired;

-          in the absence of other facts showing the possessor's knowledge of defect in his title, good faith is interrupted from the receipt or service of judicial summons;

-          a possessor in good faith is entitled to the fruits only so long as his possession is not legally interrupted, and so long as his possession is not legally interrupted, and such interruption takes place upon service of judicial summons

 ART.529CONTINUITY OF THE CHARACTER OF THE POSSESSION -the character of the possession is presumed to continue until the contrary is proved·         other presumptions affecting possession:

-          uninterrupted possession of hereditary property (art.533 par.1);-          possession with just title (art.541);-          possession with movables with real property (art.542);-          exclusive possession of common property (art.543);-          continuous possession (art.544);-          uninterrupted possession (art.561);-          possession during intervening period (art. 1138 [2])

 ART.530OBJECT OF POSSESSION 1.        must be susceptible of being appropriated;2.        need not be susceptible of prescription      

CHAPTER 2ACQUISITION OF POSSESSION

 ART.531WAYS OF ACQUIRING POSSESSION 1.        by the material occupation or exercise of a right;

2.        by  the subjection of the thing or right to our will;3.        by proper acts and legal formalities established for acquiring such right of

possession v      material occupation or exercise of a right

 1.        with respect to things – law requires material occupation as one of the modes

of acquiring possession;-          does not have the juridical and technical sense under art. 712 for

purposes of  acquiring ownership, but in its general  and material sense or usual and common meaning

 2.        with respect to rights – such rights are intangible and cannot  logically be

occupied, what is required is the exercise of a right *the material occupation of a thing as a means for acquiring possession may take place not only by actual delivery but also by constructive delivery;*it includes;                -tradicion brevi manu which takes place when one already in possession of a thing by a title other than the ownership continues to possess the same under a new  title, that of ownership;                -tradicion constitutum possessorium which happens when the owner continues in possession of the property alienated not as owner but in some other capacity v      subject to the action of will-occupation has the effect of subjecting things to the action of the possessor’s will; the same is true of proper acts and legal formalities;-the law contemplates a distinct cause of acquiring possession and not merely an effect; it refers to the right of possession than to possession as a fact; *2 kinds of  constructive delivery:                -tradicion longa manu which is effected by the mere consent or agreement of the parties;                -tradicion simbolica which is effected by delivering an object v      proper acts and legal formalities-refers to acquisition by virtue  of a just title; ART. 532BY WHOM POSSESSION ACQUIRED 

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1.        personally or by the same person who is to enjoy it;2.        thru an authorized person or by his legal representative or agent;3.        thru an unauthorized person or by any person without any power or authority

whatever v      acquisition of possession through another 

-          possession acquired by a person personally or thru another, may be exercised by him in his own name  or in that of another;

-          if a person authorized to acquire possession for another acted beyond his powers, the principal is not bound unless the latter ratifies the act of acquisition; the exception is when  a person voluntarily manages the property or business of another; in such case, the stranger’s possession take effect even without ratification by the owner of the property or business

 ART.533ACQUISITION OF POSSESSION THROUGH SUCCESSION 

-          the rights to the succession are transmitted from the moment of the death of the decedent;

-          the effects of the acceptance or repudiation retroact to the moment of the death of the decedent;

-          if the inheritance is accepted, the possession of the hereditary property is deemed transmitted by operation of law to the heir without interruption and from the moment of  the decedent’s death

-          - if the inheritance is validly renounced, the heir is deemed never to have possessed the same

 ART.534EFFECTS OF BAD FAITH OF DECEDENT ON HEIR 

-          the heir shall not suffer the consequences of the wrongful possession of the latter because bad faith is personal to the decedent and is not transmitted to the heirs;

-          the heir suffers the consequences of ssuch possession only from the moment he becomes aware of the flaws affecting the decedent’s title

 ART.535ACQUISITION AND EXERCISE OF RIGHTS OF POSSESSION BY MINORS AND INCAPACITATED PERSONS 

1.        possession by persons without capacity – refers to unemancipated minors and other persons who have no capacity to act as ;

2.        possession of incorporeal things;3.        acquisition of possession by material occupation – as a general rule,

acquisition of possession “by the action of our will” and “by the proper acts and legal formalities” is not applicable to incapacitated persons;

4.        exercise of rights of possession through legal representatives – once possession of a thing is acquired by such persons, there is born the right of possession of their legal representatives

 ART.536RECOURSE TO THE COURTS - the above provision applies to one who believes himself the owner of real property, if he takes justice in his own hands, he is a mere    intruder and can be compelled to return the property in an action for forcible entry ART. 537ACTS WHICH DO NOT GIVE RISE TO POSSESSION -such acts do not affect possession; the true possessor is deemed to have enjoyed uninterrupted possession 1.        force or intimidation, as long as there is a possessor who objects thereto-rule does not apply if possessor makes no objection, withdraws his objection, or takes no action whatsoever after initially objecting to the deprivation;2.        acts merely tolerated, which do not refer to all kinds of tolerance on the part of

the owner or possessor  in view of the use of the word “merely”;3.        acts executed clandestinely and without the knowledge of the possessor,

which mean that the acts are not public and unknown to the possessor or owner ART. 538POSSESSION AS A FACT AT THE SAME TIME IN TWO DIFFERENT PERSONALITIES 

-          “personalities” as used in the provision is not synonymous to “persons”;-          possession as a fact may exist at the same time in two or more distinct

personalities but, as a general rule, the law will recognize only one as the actual or real possessor; the exception is provided in cases of    co – possession (art.484)

 v      preference of possession:

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 1.        the present or actual possessor shall be preferred;2.        if there are two possessors, the longer in possession;3.        if the dates of possession are the same, the possessor with a title;4.        if all the above are equal, the fact of possession shall be judicially determined,

and in the meantime ,the thing shall be placed in judicial deposit 

CHAPTER 3EFFECTS OF POSSESSION

 ART.539RIGHTS OF EVERY POSSESSOR v      whether in the concept of the owner or holder, the ff are his rights:1.        right to be respected in his possession;2.        right to be protected in or restored to said possession by legal means should

he be disturbed therein;3.        right to secure from a competent court in an action for forcible entry  the 

proper writ to restore him in his possession v      remedies of persons deprived of possession1.        forcible entry or unlawful detainer;2.        accion publiciana;3.        accion reinvindicatoria;4.        replevin or manual delivery of personal property ART. 540POSSESSION AS BASIS FOR ACQUIRING OWNERSHIP 1.        as holder – cannot be the basis of prescription nor possession acquired

through force or intimidation, merely tolerated, or which is not public and unknown to the present possessor;

 2.        as equitable mortgage – where the contract entered into was judicially

declared to be actually an equitable mortgage rather than a contract of sale of a parcel of land, “constructive possession” over the land cannot ripen into ownership as  it cannot be said to have been acquired and enjoyed it the concept of owner;

 3.        as  claimant under a possessory information title; 

4.        as claimant under a certificate of title – the rule is well settled that mere possession cannot defeat the title of a holder of a registered Torrens title to real property; but the true owner of the property may be defeated by an innocent purchaser for value notwithstanding the fraud employed by the seller in securing title;

 5.        as possessor of forest land – cannot ripen into private ownership; 6.        as possessor of a different kind of land – since the subject lot is a different

kind of land, the possession no matter how long will not  confer possessory rights over the same

 *tax declarations, assessments, or payment of tax do  not prove ownership of the property nor are even sufficient to sustain a claim for possession over a land, they are merely an indicum of a claim of ownership  ART. 541POSSESSOR IN CONCEPT OF OWNER PRESUMED WITH JUST TITLE -the “just title” does not always mean a document or a written instrument;-the possessor may prove his title by witness;-actual or constructive possession under claim of ownership raises the disputable presumption of ownership *burden of proving just title1.        the onus probandi is on the plaintiff who seeks the recovery of property;2.        a  person who is not, in fact, in possession cannot acquire a  prescriptive right

to  a land by the mere assertion of a right therein *different kinds of title1.        the just title presumed by the provision is title which by itself is sufficient to

transfer ownership without need of possessing the property for the period necessary for acquiring title by prescription;

-the presumption of just title does not apply in acquisitive prescription; 2.        for purposes of prescription, there is just title  when the adverse claimant

came into possession  of the property thru one of the modes recognized by law for the acquisition of ownership or other real  rights;

 3.        a colorable title is one which a person has when he buys a thing in good faith,

from one who is not the owner but whom he believes is the owner; 

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4.        it is to be distinguished from putative title, being one which a person believes he has but in fact he has not   because there was no mode of acquiring ownership

 ART.542POSSESSION OF REAL PROPERTY PRESUMED TO INCLUDE MOVABLES -the provision refers to material possession only of things; rights are not covered;-the possession may be in the concept of owner or holder, in one’s own name or in another’s, or in good faith or bad; ART. 543EXCLUSIVE POSSESSION OF PREVIOUS CO –OWNER DEEMED CONTINUOUS -the provision speaks of co –possession of a thing, not of co –ownership;-the effects of the division retroact to the commencement of the co – possession, but the division shall be without prejudice to the rights of creditors v      interruption in possession of the thing 

-          both the benefits and the prejudices that might have taken  place during the co –possession shall attach to each of the co –participants;

-          prescription obtained by a co – pocessor or co –owner shall benefit the others;

-          interruption in the possession of the whole or part of a thing shall be to the prejudice of all  possessors;

-          possession is interrupted for purposes  of prescription either naturally (when through any  cause it should cease for more than one year) or civilly (when the interruption is produced by judicial summons to the possessor; in civil interruption, inly those possessors served with judicial summons are affected)

 note: according to the above provision, interruption must refer to the whole thing itself or part of it and not to a part or right of a co – possessor;-in a co – possession, there is only one thing and many possessors, if the right of a co –possessor is contested, he alone shall be prejudiced; with respect to the thing , the prejudice shall be against all;-the reason behind this is that the thing being undivided, it would be unjust to make the injury to fall on only one co-possessor although only the possession of a part of the thing may have been interrupted ART. 544

RIGHT OF POSSESSOR IN GOOD FAITH TO FRUITS RECEIVED 

-          the  fruits of a thing generally belong to the owner but a possessor in good faith is entitled to the fruits received until good faith  ceases and bad faith begins

 note: the right of the possessor in good faith is limited to the fruits, referring to natural, industrial, and civil fruits; other things belong to the owner of the land; but the possessor in good faith is liable for reasonable rents being civil fruits, from the time of the interruption of good faith v      when fruits considered received 1.        in the case of natural and civil fruits – considered received from the time they

are gathered or severed;-          fruits gathered before legal interruption belong to the possessor in good

faith;-          if the fruits are still ungathered or unharvested, art. 545 applies

 2.        in case of civil fruits – their accrual, NOT their actual receipt, shall determine

when they are considered received at the time that good faith is legally interrupted;-          they are deemed to accrue daily and belong to the possessor in good faith

in that proportion ART. 545PROPORTIONATE DIVISION OF FRUITS AN EXPENSES 

-          the article does not apply when the possessor is in bad faith, the fruits are civil, or fruits are natural or industrial but they have been gathered or severed when good faith ceases

-          a possessor in bad faith has no right whatsoever to the fruits gathered or pending except necessary expenses for gathered fruits;

-          the article does not apply to civil fruits which are produced daily;-          with respect to fruits already gathered at the time good faith ceases, art.

544 applies v      sharing of expenses and charges: 

-          if there are pending natural and industrial fruits at the time good faith ceases, the two possessors shall share in the expenses of cultivation and the charges in proportion to the time of possession;

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-          under art. 545, the expenses are not shared in proportion to what each receives from the harvest; in certain cases, unjust enrichment may result

 v      option of the owner 

-          the  owner or new possessor who recovers possession has the option to either:

1. pay the possessor in good faith indemnity for his cultivation expenses and charges and his share in the net harvest or;

2. to allow instead the possessor in good faith to finish the cultivation and gathering of the growing fruits in lieu of said indemnity

 ·         refusal of the possessor in  good faith for any reason whatsoever to accept the

concession forfeits his right to be indemnified in any manner v      where there are no fruits or fruits less than expenses 

-          the rule in art. 545 that the expenses shall be borne in proportion to the period of possession cannot apply;

-          if the fruits are merly insufficient, the same should be divided in proportion to their respective expenses;

-          if there are  no fruits, each should bear his own expenses subject to the rights of the possessor in good faith to be refunded for necessary expenses under art.546, unless the owner or new possessor exercises his option as mentioned above

 ART. 546GENERAL RULES AS TO EXPENSES 1.        possessor in good faith entitled to many rights;2.        possessor in bad faith generally without rights; v      NECESSARY EXPENSES 

-          are those incurred for the preservation of the thing; seeks to prevent the waste, deterioration or loss of the thing;

-          GOOD FAITH: if possessor is in good faith, he shall be entitled to be refunded;

-          he may retain the thing until he is reimbursed therefor;-          during period of retention he cannot be obliged to pay rent or damages for

refusing to vacate premises forhe is merely exercising hs right of retention

which has the character of a real right registrable as an encumberance on the certificate of title;

 -          BAD FAITH: if the possessor is in bad faith, he is entitled only  to a refund

without right of retention ·         a possessor whether in good faith or bad faith, is not granted the right of

removal with respect to necessary expenses as they affect the existence or substance of the property itself

 v      USEFUL EXPENSES 

-          are expenses which add value to a  thing, or augment its income, or introduce improvements thereon or increase its usefulness to the possessor, or better serve the purpose for which it was intended;

-          GOOD FAITH: if the possessor is in good faith, he has also the right of reimbursement and retention, as with regard to necesary expenses, or he may remove them provided  such can be done without damage to the principal thing;

-          the rights of the possessor in good faith are subject to the superior right of a prevailing party to exercise his option either to pay the amount of the expenses or the increase in the value of the thing

 -          BAD FAITH: if the possessor is in bad faith, he has no right whatsoever,

neither refund nor retention nor removal, regarding useful expenses; 

-          Useful expenses incurred during the period of retetion by a  possessor in good faith are to be considered in bad faith;

   ART. 547REMOVAL OF USEFUL IMPROVEMENTS 1.        possessor in good faith – right of removal is subject to 2  conditions:

-          the removal can be done without damage or injury to the principal thing;-          the prevailing party does not choose to keep the improvements by

refunding the expenses incurred or paying the increase in value which the thing may have acquired by reason thereof

·         if the two conditions are present, the prevailing party cannot refuse the possessor’s right to remove but he cannot compel him to remove; the right is purely potestative; if the first condition is not present and the prevailing party

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does nor choose to reimburse the possessor in good faith, the latter has no right to remove

 2.        possessor in bad faith – he cannot remove the useful improvement even if

removal is possible without injury to the principal thing; the rule is different with respect to improvements for pure luxury or mere pleasure (art.549)

 ·         the useful improvements must have been attached to the  principal thing in a

more or less permanent way that their removal would necessarily cause some damage or injury to the thing;

·         the damage must be substantial  or one that will cause diminution in the value of the property

 note: injuries which only need ordinary repairs are not covered and the possessor may remove the improvements; the repairs are at the expense of the possessor since it is he who is benefitted by the removal ART. 548EXPENSES FOR PURE LUXURY OR MERE PLEASURE 

-          are expenses not necessary for the preservation of a thing nor do they increase its productivity although they add value to the thing, but are incurred merely to embellish the thing and for convenience or  enjoyment of particular possessors

 1. GOOD FAITH – if the possessor is in good faith, he is not entitled to refund but may remove the ornaments on 2 conditions:                -the principal thing suffers no damage or injury thereby;                -the successor in possession does not prefer to refund the amount expended3.        BAD FAITH – the possessor in bad faith has the same rights above but the

owner or lawful possessor is liable only for the value of the ornaments, in case he prefers to retain them, at the time he enters into possession

 note: neither the possessor in good faith nor the possessor in bad faith is entitled to reimbursement for luxurious expenses unless the prevailing party decides to keep the improvements ART. 549RIGHTS AND LIABILITIES OF  POSSESSOR IN BAD FAITH 1.        FRUITS: he is entitled to the fruits;

a.        he must reimburse the value of fruits received subject to art. 443;b.        he has no right whatsoever with respect to pending fruits (art. 449);c.        he must reimburse the value of fruits which the legitiamate possessor could

have received subject to art. 443;2.        NECESSARY EXPENSES: he is only entitled to reimbursement without right

of retention’3.        USEFUL  EXPENSES: he is entitled to refund and forfeits the improvements;

no right of removal;4.         LUXURIOUS EXPENSES: he is not entitled to refund; he loses the

improvements but he is granted the limited right of removal;5.        CHARGES: he shall share them with the owner or lawful possessor in

proportion to the time of their possession;6.        DETERIORATION OR LOSS: he is always liable, whether due to his fault or

negligence, or due to a fortuitous event ART.550COSTS OF LITIGATION OVER PROPERTY 

-          shall be borne by the possessor of the propery because they redound to his benefit, the court action being necessary to maintain his possession;

-          “every possessor”  refers really to any possessor; it does not include the prevailing party who succeeds in the possession

 ART.551IMPROVEMENTS CAUSE BY NATURE OR TIME 

-          the provision covers all the natural accessions which must follow the ownership of the principal thing, and generally, all improvements that are not due to the will of the possessor

ART.552LIABILITY FOR LOSS OR DETERIORATION 1.        possessor in GOOD FAITH:

a. before receipt of judicial summons, a possessor in good faith is presumed to continue in the same character;

-          he is not liable to the owner for damages caused to the property even if due to his fault or negligence;

b. after receipt of judicial summons, his good faith is converted into bad faith 2.        possessor in BAD FAITH:

-he is liable whether or not the loss or deterioration occurred before or after receipt of judicial summons and whether or not due to a fortuitous event

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 ART.553IMPROVEMENTS WHICH HAVE CEASED TO EXIST 

-          having ceased to exist, the owner or lawful possessor who came too late cannot benefit from them;

-          but he is liable for necessary expenses even if the thing for which they were incurred no longer exists;     necesary expenses are not considered improvements

 ART.554PRESUMPTION OF POSSESSION DURING INTERVENING PERIOD 

-          the provision contemplates a situation where a present possessor is able to prove his possession of a property at a prior period but not his possession during the intervening period;

-          he is presumed to have the property continuously without interruption, unless the contrary is proved

 ART.555MODES OF LOSING POSSESSION 

-          the provision applies both to real and personal property except no. 4 which obviously refers to real property

  v       by abandonment

-          the voulutary renunciation of all rights which  a person has over a thing thereby allowing a third person to acquire ownership or possession thereof by means of occupancy;

-          abandoner may be the owner or a mere possessor, but the latter obviously cannot abandon ownership which belongs to another;

-          since abandonment involves the renunciation of  property right, the abandoner must have a right  to the thing possessed and the legal capacity to renounce it;

-          there must be an intention to abandon (spes recuperandi is gone and the animus revertendi is finally given up;

-          by voluntary abandonment,  thing becomes without an owner or possessor and is converted into res nullius and may thus be acquired by a third person by occupation;

-          abandonment which converts the thing into  res nullius, ownership of which may be acquired by occupation can hardly apply to land, as to which said mode of acquisition is not available

 v      by assignment

-          is understood to mean the complete transmission of the thing or right  to another by any lawful manner;

-          it may either be onerous or gratuitous;-          the effect is that he who was the owner or possessor is no longer so

 v      by destruction, total loss, or withdrawal from commerce 

-          a thing is lost when it perishes, or goes out of commerce, or disappears in such a way tht its existence is unknown, or cannot be recovered

 v      by  possession of another  for more than one year

-          this refers to possession de facto and not de  jure v      by recovery by lawful owner or possessor 

-          recovered in an reinvindicatory action or  in an action to recover the better right of possession

 ART. 556LOSS OF POSSESSION OF MOVABLES 1.        the possession of movables shall be deemed lost when they cease to be

under the control of the possessor;2.        possession is not lost by the mere fact that the possessor does not know for

the time being the precise whereabout of a specific movable when he has not given up all hope of finding it

 ART. 557LOSS OF POSSESSION OF IMMOVABLES AND REAL RIGHTS WITH RESPECT TO THIRD PERSONS 

-          third persons are not prejudiced except in accordance with the provisionss of  the mortgage law and registration law

 ART. 558POSSESSORY ACTS OF A MERE HOLDER 

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-the possessor referred in this provision is the same possessor mentioned in art. 525;-acts relating to possession of a mere holder do not bind or prejudice the possessor in the concept of owner unless said acts were previously authorized or subsequently ratified by the latter;-possession may be acquired for another by a stranger provided there be subsequent ratification ART. 559RIGHT OF POSSESSOR WHO ACQUIRES MOVABLE CLAIMED BY ANOTHER v      if the acquisition was in good faith, below are the rules: 1.        possession equivalent to a title DOCTRINE OF IRREINVINDICABILITY provides that possession of a movable is presumed ownership; it is equivalent to a title; no further proof is necessary 

-          the rule is necessary for the purposes of  facilitating transactions on movable property which are usually done without special formalities;

-          the possessor’s title is however not absolute; it is equivalent to title but not title itself; it is merely presumptive because it can be defeated by the true owner

 2.        where owner or possessor has lost or has been unlawfully deprived of a

movable 

-          right of ownership, a real right;-          it is however necessary in order that the owner of a chattel may contest

the apparent title of the possessor that he present adequate proof of the loss or illegal deprivation;

-          the legitimate owner or possessor should avail himself of the proper remedy of replevin under the Rules;

-          non – payment of price by transferor only creates a right to demand payment or to rescind the contract, or to criminal prosecution in the case of bouncing checks

 3.        where the property was acquired at a public sale – the owner cannot recover

without reimbursing the price paid therefor;4.        the rule is that no one can give what he has not; sale is a derivative mode of

acquiring ownership and the vendee gets only such rights the  vendor had; 

*the ff are some exceptions:-          where the owner of the movable is, by his conduct, precluded from

denying the seller’s authority to sell;-          where the law enables the apparent owner to dispose of the movable as if

he were the true owner thereof;-          where the sale is sanctioned by statutory or judicial authority

 ART. 560POSSESSION OF ANIMALS *animals may be:

-          wild;-          domesticated;-          domestic or tame

 ART. 561LAWFUL RECOVERY OF POSSESSION UNJUSTLY LOST 

-          the article applies both to possession in good faith as well as to possession in bad faith, but only if beneficial to the possessor;

-          the recovery of possession must be according to law, that is ,through legal means or by requesting the aid of competent authorities;

-          otherwise, the benefit of continuous and uninterrupted possession during the intervening period cannot be invoked

  

TITLE VI  USUFRUCT 

CHAPTER 1USUFRUCT IN GENERAL

 ART. 562USUFRUCT DEFINED 

-          a real right , of a temporary nature, which authorizes its holder to enjoy all the benefits which result from the normal enjoyment of  another’s property, with the obligation to return, at the designated time, either the same thing, or, in special cases, its equivalent

 v      characteristics:1.        it is a real right;2.        it is of temporary duration;

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3.        it is transmissible;4.        it may be constituted on real or personal property, consummable or non –

consummable, tangible or intangible, the ownership of which is vested on another

 v      classification1.        as to whether or not impairment of object is allowed:

-          normal;-          abnormal

 2.        as to origin:

-          legal;-          voluntary;-          mixed

 3.        as to number of usufructuaries:

-          simple;-          multiple which may either be :

-simultaneous;-successive

4.        as to terms ot conditions:-          pure;-          with a term or period;-          conditional

5.        as to quality or kind of object:-          of things;-          of  rights

6.        as to quantity or extent of object-          total;-          partial

7.        as to extent of owner’s patrimony;-          universal;-          particular

 v      impairment of object of usufruct is allowed into:1.        normal – that which involves non – consumable things which the usufructuary

can enjoy without altering their form or substance, though they may deteriorate or diminish by time or by the use to which they are applied; it is also known as perfect or regular ususfruct;

2.        abnormal – that which involves things which would be useless to the usufructuary unless they are consumed or expended

 

  *DISTINGUISHED FROM LEASE 1.        as to nature of right – usufruct is always a real right, lease is generally a 

personal right;2.        as to creator of right – in usufruct, the person creating it should be the owner

or his duly authorized agent, while in lease, the lessor may not be the owner;3.        as to origin – usufruct may be created by law, contract, or will of the testator

or by prescription, while lease is generally created by contract;4.        as to extent of enjoyment – usufruct covers all the fruits and all the uses and

benefits of the entire property, while lease generally refers to certain uses only;5.        as to cause – usufruct involves a more or less passive owner who allows the

usufructuary to enjoy the object given in usufruct, while lease involves a more active owner or lessor who makes the lessee to enjoy;

6.        as to repairs and taxes – the usufructuary pays for ordinary repairs and taxes  on the fruits, while in lease, the lessee is not generally under obligation to undertake repairs or pay taxes

 ART. 563CREATION OF USUFRUCT v      usufruct may be classified according to how it is created into:1.        legal – created by law or declared by law;2.        voluntary – created by the will of the parties;3.        mixed – that acquired by prescription;   it is mixed because both the law and

the volition of the person(usufructuary) participate in its creation ART. 564KINDS OF USUFRUCT DEFINED 1.        as to extent of object:

-          total – constituted on the whole of a thing;-          partial – constituted only on a part of a thing;

 2.        as to number of beneficiaries:

-          simple – there is only one usufructuary;-          multiple – there are several usufructuaries, and the latter may be:

-simultaneously;-successive

3.        as to effectivity or extinguishment:-          pure – no term or condition;

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-          with a term;-          conditional

4.        as to subject matter:-          over things;-          over rights

 ART. 565RULES GOVERNING USUFRUCT

-          art. 563;-          arts. 566 – 612

         

CHAPTER 2RIGHTS OF THE USUFRUCTUARY

 ART.566RIGHTS OF THE USUFRUCTUARY v      classifications of the rights of the usufructuary 1.        as to the thing and its fruits a.        to receive the fruits of the property in usufruct and half of the hidden treasure

he accidentally finds in the property;b.        to enjoy any increase which the thing in usufrucyt may acquire through

accession;c.        to personally enjoy the thing in usufruct or lease it to another;d.        to make on the property in usufruct such improvements or expenses he may

deem proper and to remove the improvements provided no damage is caused to the property;’

e.        to set – off the improvements he may have made on the property against any damgae to the same;

f.          to retain the thing until he is reimbursed for advances for extraordinary expenses and taxes on the capital;

 

2.        as to the usufruct itself a.        to alienate the right of usufruct except parental usufruct;b.        in a usufruct to recover property or a real right, to bring the action and to

oblige the owner thereof to give him proper authority and necessary proof;c.        in  a usufruct pf 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 from the property;

 3.        as to advances and damages a.        to be reimbursed for indespensable extrsordinary repairs made by him in an

amount equal to the increase in value which the property may have acquired by reason of such repairs;

b.        to be reimbursed for taxes on the capital advanced by him;c.        to be indemnified for damages caused to him by the naked owner; v      right of usufructuary to fruits a.        he has the right to receive all the fruits except where the usufruct is

constituted only on a part of the fruits of a thing or where there is an agreement to the contrary;

b.        the naked owner retains and can exercise all rights as owner over the property limited only by the right of enjoyment of the usufructuary

 ART.567RIGHTS OF THE USUFRUCTUARY TO PENDING NATURAL AND INDUSTRIAL FRUITS -the provision does not apply to civil fruits for they accrue daily 1.        fruits growing at the beginning of usufruct belong to the usufructuary who is

not bound to refund to the owner the expenses of cultivation and production incurred ;

2.        fruits growing at the termination of the usufruct belong to the owner but he is bound to reimburse the usufructuary the ordinary cultivation expenses out of the fruits received

 note: the rights of third persons are protected ART. 568 in relation to ART. 569LEASE BY THE USUFRUCTUARY

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 -          the usufructuary may lease the property in usufruct to another;-          if the usufructuary should expire before the termination of the lease, the

usufractuary or his heirs and the successors are entitled only to the rents corresponding to the duration of the usufruct;

-          the rents for the remaining period of the lease belong to the owner; ART.570USUFRUCT CONSTITUED ON  CERTAIN RIGHTS 

-          because civil fruits accrue daily, they belong to the usufructuary in proportion to the time the usufruct lasts;

-          payments and benefits accrue after the termination of the usufruct belong to the owner;

-          the date when the benefits accrue determines whether they should belong to the usufructuary or the owner;

-          the article applies whether or not the date of the distribution of benefits is fixed

 ART. 571EXTENT OF THE RIGHTS OF THE USUFRUCTUARY 

-          the usufructuary is generally entitled to all the benefits that the thing in usufruct can give including any increase by accession and servitudes established in its favor;

-          the reason is that usufruct covers the entire jus fruendi and jus utendi ART. 572TRANSACTIONS BY THE USUFRUCTUARY *the usufructuary may primarily enjoy the thing in usufruct, that is , to possess the thing, use it, and receive its fruits 

-          but legal usufruct of the parent over his or her unemancipated children cannot be alienated, pledged or  mortgaged for the right is personal and intransmissible burdened as it is by important obligations of the parent for the benefit of the children;

-          a usufruct given in consideration of the person of the usufructuary to last during his lifetime is also personal and ,therefore, intransmissible

 

*as a rule, all contracts entered into by the usufructuary shall terminate upon the expiration of the usufruct or earlier, except rural leases which continue during the agricultural year ART. 573USUFRUCT ON THINGS WHICH GRADUALLY DETERIORATE 

-          the provision gives an instance of abnormal usufruct because in the enjoyment of the property the usufructuary cannot preserve its form or substance;

-          here, the thing gradually deteriorates through wear and tear, that is, by normal use

 1.        the usufructuary is not responsible for the deterioration due to wear and tear

nor is he required to make any repairs to restore it to its former condition;2.        the usufructuary is liable for damage suffered by the thing by reason of his

fraud or negligence although such liability may be set – off against the improvements he may have on the property;

3.        the usufructuary does not answer for deterioration due to fortuitous event; he is however obliged to make the ordinary repairs needed by the thing

 ART. 574USUFRUCT ON CONSUMABLE THINGS 

-          the provision speaks of another instance of abnormal usufruct because the thing in usufruct cannot be used without being consumed;

-          the usufructuary shall have the right to make use of the consumable thing;-          at the termination of the usufruct, he must:

1.        pay its appraised value;2.        if there was no appraisal made, either:

-return the same quantity and quality or;-pay its current price at such termination

 ART. 575  in relation to ART. 576USUFRUCT ON FRUIT – BEARING TREES AND SHRUBS 

-          the usufructuary has no obligation to replace with new plants, the dead trees or shrubs already existing at the beginning of the usufruct;

-          under art. 576, if replacing the trunks could not be “too burdensome,” the usufructuary must replace them, whether or not he makes use of them; the disposition of trunks is his responsibility

 

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ART. 577USUFRUCT ON WOODLAND AND NURSERIES 1.        the usufructuary may fell or cut trees as the owner was in the habit of doing or

in accordance with the customs of the place as to manner, amount and season; in any case he must not prejudice the preservation of the land;

2.        in nurseries, the usufructuary may make the necessary thinnings in order that the remaining trees may properly grow

 ART. 578USUFRUCT OF JUDICIAL ACTION TO RECOVER 

-          the provision applies if the purpose of the action is to recover real property or personal property;

-          under the Rules of Court, every action must be brought in the name of the real party in interest; hence, the action may be instituted in the name of the usufructuary

 ART. 579WHERE USEFUL OR LUXURIOUS IMPROVEMENTS ARE MADE BY THE USUFRUCTUARY 

-          the usufructuary has the right to make improvements, useful or luxurious, on the property held in usufruct as he may deem proper

 ·         rules:1.        in the exercise of the right, he must not alter the form or substance of the

property;2.        he may remove the improvements only if it is possible to do so without

damage to the property;3.        he has no right to be indemnified for the improvements if he does not exercise

his right to remove;4.        if the improvements cannot be removed without damage, he may se – off the

same against any damage caused by him to the property;5.        if the usufructuary does not wish to exercise his right of removal, the owner

cannot compel him to remove the improvements;6.        if the usufructuary wishes to exercise his right of removal, the owner cannot

prevent him by offering to reimburse him;7.        the usufructuary’s right to remove the improvements includes the right to

destroy them provided no damage is caused to the property;8.        the right to remove is enforceable only against the owner, but not against a

purchaser in good faith to whom clean title has been issued

 ART. 580RIGHT TO SET – OFF  IMPROVEMENTS 

-          the article presupposes that the improvements have increased the value of the property and the damage to the same was caused through the fault of the usufructuary;

-          if the damage exceeds the value of the improvements, the usufructuary is liable for the difference as indemnity;

-          if the value exceeds the damage, he may remove the portion of the improvements representing the excess in value if this can be done without injury to the property; otherwise the excess in value accrues to the owner;

  ART. 581RIGHTS AND OBLIGATIONS OF THE NAKED OWNER 1. he may alienate the property in usufruct because the title remains vested in

him;2. he cannot, however, alter the form and substance of the property or do

anything thereon which may cause a diminution in the value of the usufruct or be prejudicial to the rights of the usufructuary

 ART. 582USUFRUCT OF  PART OF COMMON PROPERTY ·         a co – owner of property has full ownership of his part and, he may, therefore,

alienate, assign, mortgage, or give it in usufruct without the consent of the others except when personal rights are involved

 1.        in case a co – owner gives the usufruct of his share to a person, the

usufructuary shall exercise all the rights pertaining to the co –owner regarding the administration and the collection of the fruits or interest from the property;

2.        the usufructuary shall be bound by the partition made by the owners of the undivided property although he took no part in the partition but the naked owner to whom the part held in usufruct has been allotted must respect the usufruct;

3.        the right of the usufructuary is not affected by the division but is limited to the fruits of said part allotted to the co – owner

 CHAPTER 3

OBLIGATIONS OF THE USUFRUCTUARY 

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ART. 583·         classifications of  obligations of the usufrcutuary 1.        those before the usufruct begins:a.        to make an inventory of the property;b.        to give security 2.        those during the usufruct: a.        to take care of the property;b.        to replace with the young thereof animals that die or are lost in certain cases

when the usufruct is constituted on the flock or herd of livestock;c.        to make ordinary repairs;d.        to notify the owner of urgent extraordinary;e.        to permit works and improvements by the naked owner not prejudicial to the

usufruct;f.          to pay annual taxes and charges on the fruits;g.        to pay interest on taxes and charges on the fruits;h.        to pay debts when the usufruct is constituted on the whole of a patrimony;i.          to secure naked owner’s or court’s approval to collect credits in certain cases;j.          to notify the owner of any prejudicial act committed by third persons;k.        to pay for court expenses and costs regarding usufruct 3.        those at the termination of the usufruct a.        to return the thing in usufruct to the naked owner unless there is a right of

retention;b.        to pay legal interest for the time that the usufruct lasts, on the amount spent

by the owner for extraordinary repairs and the proper interest on the sums paid as taxes by the owner;

c.        to indemnify the naked owner for any losses due to his negligence or of his transferees

  ART. 584WHEN OBLIGATION TO MAKE SECURITY NOT APPLICABLE ·         the provision contains the legal exceptions to the obligations of the

usufructuary to give security in two cases;·         the exceptions are clearly justified;·         “second marriage” includes any subsequent marriage;

·         the donor or the parents are not exempted from the obligation of making an inventory9

 ART. 585WHEN THE OBLIGATION TO MAKE AN INVENTORY OR TO GIVE SECURITY EXCUSED 1.        where the naked owner renounces or waives his right to the inventory or

security;2.        where the title constituting the usufruct relieves the usufructuary from the

obligation;3.        where the usufructuary asks that he be exempted from the obligation and no

one will be injured thereby ART. 586EFFECTS OF FAILURE TO GIVE SECURITY 1.        on rights of owners:

 -          entitles the naked owner for his protection to demand that immovables be

placed under the administration or receivership, movables sold, credit instruments be converted into registered certificates or deposited, and cash and profits be invested but the interest on the proceeds of sale of movables and credit instruments placed under administration shall belong to the usufructuary;

-          the naked owner gets the proceeds of the sale of movables and credit instruments

 2.        on the rights of the usufructuary:

 -          until he gives proper security, the usufructuary cannot enter upon the

possession and enjoyment of the property;-          under art. 599, he may not collect matured credits nor invest capital in

usufruct without the consent of the owner or judicial authorization;-          the failure to give security, however, does not extinguish the right of

usufruct, hence, the usufructuary may alienate his right  to the usufruct ART. 587SWORN UNDERTAKING IN LIEU OF SECURITY 

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-          the provision applies when the usufructuary who is under obligation to give security cannot afford to do so and no one is willing to give security for them

 ·         humane considerations;·         the usufructuary must first ask the naked owner to grant him the rights

mentioned, and should the latter refuse, he may resort to the courts ·         with respect to articles with artistic or sentimental value, the owner may

demand their delivery to him if he gives security to the usufructuary for the payment of the legal interest on their appraised value

 ART. 588RETROACTIVE EFFECT OF GIVING SECUIRTY 

-          the articke applies where the usufructuary who is required to give security gives the security after the commencement of the usufruct;

-          failure to give  the needed security may deprive the usufructuary of the right to enjoy the possession of the property in usufruct;

-          however, once the security is given, he is entitled to all the proceeds and benefits of the usufruct accruing from the day on which he should have commenced to receive them

 ART. 589OBLIGATION TO TAKE CARE OF THE PROPERTY 

-          this is an obligation of the usufructuary during the usufruct;-          it includes the making of ordinary repairs needed by the thing given in

usufruct; ART. 590LIABILITY FOR FAULT OR NEGLIGENCE OF SUBSTITUTE -the liability of the usufructuary is founded on his duty to preserve the form and substance on the thing in usufruct ART. 591USUFRUCT ON A FLOCK AND HERD OF LIVESTOCK 1.        usufructuary has the duty to make replacements although  the death of the

animals is due to natural causes;

2.        under par. 2 there is no duty to replace provided the usufructuary is without fault;

3.        if the animals are sterile, nad ,therefore, they cannot be replaced by the young thereof, the usufruct shall be treated as  constituted on fungible things, in such case art. 574 applies

 ART. 592OBLIGATION TO MAKE ORDINARY REPAIRS 1.        the usufructuary is bound to make the repairs referred to without the necessity

of demand from the owner;2.        the usufructuary is not liable for deterioration resulting from wear nad tear not

due to his fault or negligence unless the deterioration could have been prevented or arrested by ordinary repairs and he failed to make them without valuid reason

 ART. 593 in relation to ART. 594DUTY OF OWNER TO PAY FOR EXTRAORDINARY REPAIRS ·         the law does not impose an obligation on the naked owner or the usufructuary

to make extraordinary repairs on the property in usufruct; it is optional for them to make such repairs or not

 *the ff are extraordinary repairs: 1.        those required by the wear and tear due to the natural use of the thing but not

indespensable for its preservation; 2.        those required by the deterioration of or damage to the thing caused by

exceptional circumstances but not indispensable for its preservation; 3.        those required by the deterioration of or damage to the thing caused by

exceptional circumstances and are indispensable for its preservation ·         payment for extraordinary repairs:

-          the rules depend on the kind of extraordinary repairs in the same sequence above

 ·         the usufructuary, like  a possessor in giid faith, has the 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

 ART. 595

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CONSTRUCTIONS, IMPROVEMENTS, AND PLANTINGS BY OWNER 

-          any increase in the value of the usufruct due to the improvements will inure to the benefit of the usufructuary  for he is entitled to the use and fruits of the property;

-          the owner has no right to demand legal interest on his expenses because they were voluntarily incurred by him;

-          the owner may even alienate his property or make changes thereon as long as he does not impair the right of the usufructuary

 ART. 596 in relation to ART. 597LIABILITY FOR CHARGES AND TAXES

 1.        expenses affecting fruits:

-          usufructuary must pay the annual charges and taxes which are imposed and, therefore, are a lien upon the fruits during the term of the usufruct;

2.        land taxes;3.        taxes levied on the capital:

-          must be paid by naked owner but he has the right to demand from the usufructuary the proper interest on the sums paid

 ART. 598WHERE USUFRUCT COVERS ENTIRE PATRIMONY 

-          the provision applies to a universal usufruct or one which covers the entire patrimony of the owner,a nd at the time of its constitution, by donation or any other acts inter vivos;

 1.        where there is a stipulation for the payment by the usufructuary of the debts of

the owner, the former is liable only for debts contracted by the latter before the constitution of the usufruct;

2.        in the absence of a stipulation, the usufruct shall be responsible only when the usufruct was created in fraud of creditors which is always presumed when the owner did not reserve sufficient property to pay his debts prior to the creation of the usufruct

 ART. 599USUFRUCT ON MATURED CREDITS 1.        if the usufruct has given sufficient security, he may claim matured credits

forming part of the usufruct, collect them, and use and invest with or without interest the capital collected in any manner as he ma ydeem proper;

 2.        if he has not given security, or that given is not sufficient, or he has been

excused from giving security, he may collect the credits and invest the capital which must be at interest, with the consent of the naked owner or approval of the court

 ART. 600USUFRUCT OF MORTGAGED IMMOVABLES 

-          under this provision, the usufruct is particular, constituted by will or by acts inter vivos, whether by onerous or gratuitous title;

-          if the usufruct is universal, the liability of the usufructuary to pay for the mortgage is governed by art. 598;

-          since the mortgage is on the property itself, the debt must be paid by the owner;

-          the usufructuary may mortgage his right of usufruct which is a real right ART. 601OBLIGATION TO NOTIFY OWNER OF PREJUDICIAL ACTS BY THIRD PERSONS 

-          the article speaks of any act which may be prejudicial to the “rights of ownership”, not merely of the “naked ownershio”

 ART. 602OBLIGATION TO PAY FOR JUDICIAL EXPENSES AND COST 

-          since the expenses, costs and liabilities mentioned are incurred in connection with litigation over the possession, use and enjoyment of the thing in usufruct affecting the rights of the usufructuary, it is just that they are borne by him;

-          if the litigation involves only the naked ownership, the owner should assume them

  

CHAPTER 4EXTINGUISHMENT OF USUFRUCT

 ART. 603MODES OF EXTINGUISMENT OF  THE USUFRUCT 1.        by death of the usufructuary;2.        by the expiration of period or fulfillment of condition;

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3.        by merger;4.        by renunciation;5.        by the loss of the thing;6.        by termination of right of owner;7.        by prescription;8.        other causes – such as emancipation of the child ·         a usufruct is not extinguished by bad use of the thing in usufruct ART. 604EFFECT OF PARTIAL LOSS

-          to extinguish a usufruct, the loss must be total, except as provided in articles 607 to 609;

-          if the loss is only partial, the usufruct continues with the remaining part;-          but the partial loss may be so important as to be considered a total loss; it

is of the courts to determine the question in case of disagreement ART. 605USUFRUCT IN FAVOR OF JURIDICAL OR NON- JURIDICAL ENTITIES 1.        fifty year limitation;2.        limitation not applicable to trusts ART. 606USUFRUCT  WITH DURATION DEPENDENT ON AGE OF A THIRD PERSON *the exception to the above rule is  when the usufruct has been expressly granted only in consideration of the existence of a third person  ART. 607WHERE USUFRUCT ON LAND AND BUILDING, AND BULIDING DESTROYED 1.        usufruct o land and materials of building:

-          destruction of the building terminates the usufruct on the building but not the usufruct on the land;

2.        right granted as a temporary measure:-          to keep the usufruct alive until the building is reconstructed or replaced;

3.        where insurance received by the naked owner:-          payment of legal interest on insurance received if it has not been used in

the construction of another building during the while period of the usufruct but he may, if he so desires, relieve himself of this encumberance by turning over

the money to the usufructuary so that he may use it subject to the obligation to return the amount to the naked owner after his death as provided in art. 612

 ·         where usufruct on building only and it is destroyed 

-          same rule applies although the usufruct does not cover the land for the simple reason that the use of the  building necessarily involves the use of the land

 ART. 608PAYMENT OF COST OF INSURANCE ·         neither the owners nor the usufructuary is under the obligation to insure the

property in usufruct;·         should they do so:1.        the usufructuary shares with the owner in insuring the property, the

usufructuary shall continue to enjoy the new building constructed, or if the owner do not wish to rebuild, the usufructuary shall receive the legal interest on the insurance proceeds which go to the owner;

 2.        the usufructuary refuses to contribute to the insurance, and so the owner pays

it alone, the owner gets the full insurance indemnity in case of loss, the right of the usufructuary being limited to the legal interest on the value of the land and the materials

 ·         the article is silent where the usufructuary alone pays the insurance or, where

both share in the payment thereof, as to the proportion of their contribution to the insurance

 ART. 609 in relation to ART. 610EXPROPRIATION OF THE THING IN USUFRUCT 

-          does not extinguish the usufruct; the articl allows the substitution of the thing by an equivalent thing;

-          if the thing expropriated is for public use, the naked owner is given the option to replace it with another thing of the same value and of similar conditions;

-          or to pay the usufructuary the legal interest on the amount of indemnity for the whole period of the usufruct; in the latter case, the owner shall give security for the payment of the interest

 

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·         if bad use causes considerable injury to the owner, not to the thing itself, the owner is given the right provided in art. 610

 ART. 611USUFRUCT IN FAVOR OF SEVERAL PERSONS 

-          usufruct is not extinguished until the death of the last survivor;-          as the usufruct continues, the rights of any  usufructuary who dies shall

accrue to the surviving usufructuaries ·         exception: when the title constituting the usufruct provides otherwise as where

the usufruct is constituted in a last will and testament and the testator makes a contrary provision

 -          the article applies whether the usufuct is constituted simultaneously or

successively  ART. 612OBLIGATION OF USUFRUCTUARY TO RETURN THE THING UPON TERMINATION OF USUFRUCT