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LAW ON PROPERTY_ABELLA_LECTURE_AUDIO

USUFRUCT
Usufruct-(Use of Fruits), generally speaking, it involves fruits.
How usufruct created? 1. By Law, 2. By agreement of the parties and by testamentary provision
1. By Law- The minor may have usufruct, but the parents may enjoy usufruct of such property.
But this provision was already non-existent in the NCC. In the family code, such income or
fruits shall belong to the minor.
2. By Agreement of the owner and the usufructuary. What are the obligations of the
usufructuary before entering upon a usufruct? 1. To make an inventory or list of the thing
hell be receiving in usufruct, 2. Provide securities or put up collateral. Now, the list or
inventory is very necessary so that there will be no dispute as to how many would be
received in the usufruct. Because at the end of the usufruct shall be returning the things in
usufruct. The securities could be dispensed with. The owner may waive the requirement
about security.
3. Who bears the depreciation or ordinary wear and tear of the usufruct? Basically, the owner.
4. In case of improvement, the same shall be pertain to the owner.
5. What should be the obligation of the usufructuary at the end of the usufruct? To return the
thing in usufruct in the condition that the things he received as providing for ordinary wear
and tear.
6. If there would be a charge or a tax or charge on the principal thing, who bears the tax? It
belongs the owner, in the absence of any agreement to the contrary.
7. Now, who benefits from the fruit? The Usufructuary and since the usufructuary is to be
benefited, then the relevant taxes shall be for the usufructuary.
8. A usufruct is not necessarily one that bears fruits. It could be constituted on a woodland. It
can also be constituted over paintings and sterile animals.
9. If you are the usufructuary of the sterile animal, what may you do in that sterile animal? Can
be used in the domestic services. If the animal could no longer serve due to old age or ill, the
sterile animal can be consumed. At the end of the usufruct, what do you deliver to the
owner? Deliver to the owner of the same kind and quality.
10. Usufruct over a woodland or copse. What benefit can you get from mahogany trees? The
usufructuary may cut off branches and sell it, but not the body of the mahogany trees.
11. Usufruct over a herd of animal. Example. I have the 100 heads of goats and used as usufruct
by A for the latter to enjoy the benefit of it, like kid of the goat which eventually born.
Likewise the milk that the goats can produce. At the end of the usufruct, how many heads
should be returned? Still 100 heads. What if there is one head lacking? Question: At the end
of the usufruct, how many heads of goats should be delivered to the owner? Still 100 heads
because the one being lost due to natural cause or due to the rapacity of beast of prey is
required to be replaced.
12. What if the usufruct is a flock of birds or chicken, 100 heads? After receiving it, there is an
epidemic occurred, and 95 heads died, thus 5 heads left. At the end of the usufruct, what do
you do? Return what remains of the animals.
13. If the usufruct is over the house and lot, you can only lend the house but not the lot thereon,
so that when the house and lot was expropriated, usufructuary contract automatically
ceases, but the just compensation must be deposited to the bank, so that the earnings of
interest could be enjoyed by the usufructuary.
14. Are the rights of usufructuary transferrable? Yes, unless otherwise stated in the contract.
And the transfer could be by onerous and gratuitous title.
15. How may a usufruct may be extinguished? 1. Expiration of the stipulated term, 2.
Accomplishment of purpose, 3. Loss of the thing in usufruct, 4. Acquisition of property. 5.
Abandonment
16. If the owner dies, is the usufruct extinguished? Answer: In the absence of any agreement to
the contrary, NO. But if the usufructuary dies, usufruct is extinguished. Reason: usufruct was
created for the benefit of the usufructuary. Without the benefactor, it automatically
extinguished.
17. If usufruct was created in favor of three persons, by collecting the 30,000 monthly rent of a
leased premises, how much of three receive its share? Answer: 10,000 each. After a few
months, one died. Q: How much of remaining usufructuary receive? 15,000 each. Now, only
one remained. How should he receive? Full amount of 30,000. Reason. Usufruct continuous
in favor of the surviving usufructuary. Take note that it is in the absence of agreement to the
contrary.

CO-OWNERSHIP

1. When is there co-ownership?


There is co-ownership when a thing is owned by a two or more persons who have an
undivided interest.
2. How is ownership created? 1. By agreement 2. Succession
3. What are the basic rules about co-ownership?
1. Every co-owner shall be entitled to enjoy the property owned and common.
2. No co-owner may alter the property owned and common without the consent of
the others.
3. Co-owners should contribute pro rata to the expenses and charges for the
preservation in proportion to their holdings. Any agreement to the contrary is
void.
Question: May any of the co-owners sell his undivided interest in the property owned and common?
Yes. Provided that the co-owner shall offer to transfer that undivided interest to the other co-
owners or co-owner. Pre-emptive right of the co-owners must be observed. Upon learning of the
offer, the co-owner, within 30 days, may exercise their right of pre-emption. If in case one of the co-
owners was able to sell it without informing other co-owner, the party bought the property, so that
he may register the same, he shall have to submit to the register of deeds the sworn declaration of
the co-owner who sold to him the undivided interest stating that the seller/co-owner initially
offered such property to the other co-owners but the latter refused.
All will have a copy of original duplicate title. He who ever lost the title must have the burden of
going to court to order register f deeds to issue a new one.

In relation to rules on co-ownership, we have certain rules about who bears expenses of structures
belonging to different co-owners.

Who bears expenses of structures belonging to different co-owners?


Example:
The parents assigned the whole old house to the 4 children occupying each floor of the old
house. The parents occupied the ground floor. Eldest occupied the second floor, second child
occupied the other side of the second floor. Third child occupied third floor. Fourth Child occupied
the fourth floor. Per unit, each will bear the cost of repairs. How about the roof? All the co-owners
shall have to contribute for the repair of the roof. How about the pillars? For all. How about the
stairs; Ground Floor to the second floor? The occupant of the second and 3 rd floors. What about the
maintenance of the stairs from the second floor to the 3 rd floor? Only those at the 3rd floor, as far as
the Civil Code is concerned.
Now, Condominium is different.