PROPERTY LAW l Atty.

Bathan-Lasco l Tanya de la Cruz Ibanez JD2 407

Take note: In both cases, the possession of the owner or holder is by

TITLE V. POSSESSION virtue of his right as such owner or holder. Strictly, the agent has no
possession in law because it is not by virtue of his own right.
CHAPTER 1: POSSESSION AND KINDS THEREOF
RELATIONS CREATED BY POSSESSION
Possession is characterized by two relations:
Art 523. CONCEPT OF POSSESSION
1. The possessor’s relation to the property itself – The
CONCEPT OF POSSESSION possessor exercises some degree of control more or less
Possession is the holding of a thing or the enjoyment of a right with effective over the subject.
the intention to possess in one’s own right.
2. The possessor’s relation to the world – The possessor must
Take note: The intention to possess is presumed from the fact of have the ability to exclude others from his possession
possession.
Take note: A customer who holds and examines a piece of jewelry in
OWNERSHIP AND POSSESSION DISTINGUISHED the presence of the seller may be said to have only custody, not
possession, because he lacks full control over it and has also no intention
to exclude others.
Ownership Possession
FORMS OR DEGRESS OF POSSESSION

Confers certain rights to the owner, The holding of a thing or the 1. Possession without any title whatever – mere holding or
among which are the right to enjoy enjoyment of a right; to possession without any right or title at all (ex. Thief or squatter)
the thing owned and the right to actually and physically occupy
exclude other persons from a thing with or without right 2. Possession with a juridical title – possession is predicated
possession thereof. on a juridical relation existing between the possessor and the
owner of the thing but not in the concept of owner (ex. Lessee,
usurfructuary, agent, trustee, pledgee, depositary)
A person may be declared owner
but he may not be entitled to Possession may be had in one 3. Possession with a just title – possession of an adverse
possession: of two ways: claimant whose title is sufficient to transfer ownership but is
defective (ex. When the seller is not the true owner or could not
(1) Possession may be with another (1) Possession in the concept transmit his rights to the possessor who acted in good faith)
as a lessee or tenant of an owner
(2) A person may have 4. Possession with a title in fee simple – possession derived
improvements thereon of which he (2) Possession of a holder from the right of dominion or possession of an owner. This is the
may not be deprived without due highest degree of possession.
hearing
(3) He may have other valid NATURE OF POSSESSION
defenses to resist surrender of Possession may be viewed as an act, as a fact/condition, or as a right.
possession
1. As an act – simply the holding of a thing, or the enjoyment of
a right with the intention to possess in one’s own right
Possession is not a definite proof of ownership, neither is non-
possession inconsistent with ownership. 2. As a fact – when there is holding or enjoyment, then possession
exists as a fact. A state or condition of a person having property
under his control, with or without a right.
ELEMENTS OF POSSESSION
3. As a right – right of a person to that holding or enjoyment to
1. There must be holding or control of a thing or right the exclusion of all others having better right than the possessor.
2. The holding or control must be with intention to possess
3. It must be in one’s own right a) Jus possidendi – right to possession which is incidental
to and included in the right of ownership
There must be holding or control of a thing or right b) Jus possessionis – right of possession independent of
Possession always implies the element of occupation, whether in one’s and apart from the right of ownership
own name or in that of another.
POSSESSION AS A FACT
Take note: There should be occupancy, otherwise there is no
possession. Benefits to possessor
The fact of possession gives rise to certain rights and presumptions.
Yu v. Pacleb a) Right to be respected in his possession and should he be
Possession always implies the element of corpus or occupation, whether disturbed, he shall be protected in or restored to said
in one’s own name or in that of another. But it is necessary that there possession
should be such occupancy or there is no possession. b) He has in his favor the presumption that his possession is
lawful
The holding or control must be with intention to possess
Possession must involve a state of mind on the part of the possessor As proof of ownership
whereby he intends to exercise a right of possession, whether the right Possession is not a definitive proof of ownership nor is non-possession
be legal or otherwise. inconsistent therewith. However, possession may create ownership
either by occupation or acquisitive prescription.
It must be in one’s own right
Possession may be held by a person in his own name or in that of CLASSES OF POSSESSION UNDER THE CIVIL CODE
another (i.e. by an agent in the name of the principal)
1. Possession in one’s own name or in the name of another
1. Possession may be in the concept of owner or a holder of the 2. Possession in the concept of owner or in concept of holder
thing (ex. Lessee) with ownership pertaining to another 3. Possession in good faith or possession in bad faith
2. Possession is exercised by the owner or holder, as principal,
through his agent. EXTENT OF POSSESSION
Possession may also be actual or constructive

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1. Actual possession – occupancy in fact of the whole or at least The one in actual possession is without any right of his own, but is
substantially the whole; Acts of dominion over the land in such merely an instrument of another in the exercise of the latter’s
a nature as a party would naturally exercise over his property. possession, such as the possession of an agent, servant, or guard.

2. Constructive possession – occupancy of part in the name of Possession in another’s name may be:
the whole under such circumstances that the law extends the
occupancy to the possession of the whole. 1. Voluntary – when exercised by virtue of an agreement

DOCTRINE OF CONSTRUCTIVE POSSESSION 2. Necessary or legal – when exercised by virtue of law (ex.
possession in behalf of incapacitated persons and juridical
Possession does not mean that a man has to have actual or physical entities
occupation on every square meter of ground for him to be considered
in possession. 3. Physical or material – when the possessor is a mere
custodian or keeper of the property or funds received and has
General rule: Possession and cultivation of a portion of a tract of land no independent right or title to retain or possess the same as
under claim of ownership of all is constructive possession of all. against the owner (ex. Possession of money received by a
teller for the bank)
Hence, where A took possession of the land by planting coconuts and
other fruit trees and 2 years later, constructed a building thereon, it is 4. Juridical – when the possession gives the transferee a right
immaterial that the building was unfinished and that he left the place over the thing over which the transferee may set up against
and visited only intermittently. It is sufficient that the possessor was the owner. (ex. Possession of an agent who receives the
able to subject the property to the action of his will. proceeds of sales of goods delivered to him in agency by his
principal)
Qualification to the rule
Relating to the size of the tract in controversy with reference to the Take note:
portion actually in possession of the claimant.  An agent can assert against his principal an independent right to
retain the money or goods received as when the principal fails to
a) Mere planting of a sign or symbol of possession cannot justify reimburse him for advances he made and indemnify him for
a Magellan-like claim of dominion over an immense tract of damages suffered without his fault.
territory
b) Mere cultivation of a land does not constitute possession  A teller of a bank who misappropriates the money is liable for
under a claim of ownership qualified theft and not Estafa because being a mere bank
c) Mere fact of declaring uncultivated land for taxation purposes employee, his possession is the possession of the bank. Hence,
and visiting it every once in a while has been held not to his possession is not juridical.
constitute acts of possession
d) Doctrine does not apply where the possession is wrongful or
when it is in the adverse possession of another Art 525. CONCEPT IN WHICH POSSESSION MAY BE HAD

Sarmiento v. Lesaca Article 525. The possession of things or rights may be had in one of
The doctrine of constructive possession does not apply where the two concepts: either in the concept of owner or in that of the holder of
possession is wrongful or the part allegedly constructively possession is the thing or right to keep or enjoy it, the ownership pertaining to another
in the adverse possession of another. person.

POSSESSION AND OCUPATION IN REGISTRATION CASES CONCEPT IN WHICH POSSESSION MAY BE HAD
Before one can register his title over a parcel of land, the applicant must
show that: Concept does not mean the opinion, attitude or belief of the possessor,
but of others, generally formed in view of the circumstances which
1. He, by himself or through his P-I-I has been in open, precede and accompany possession.
continuous, exclusive and notorious possession and
occupation of the property under a bona fide claim of 1. Possession in the concept of owner – when the possessor of
ownership since June 12, 1945 a thing or right, by his actions, are considered or believed by other
2. The land is alienable and disposable land of the public domain people as the owner, regardless of his good or bad faith.

Republic v. Jacob a) Possession under a claim of ownership or title by one

Actual possession of a land consists in the manifestation of dominion of who is the owner himself
such a nature as a party would naturally exercise over his own property. b) Possession under a claim of ownership or title by one
A mere casual cultivation of portions of land by claimant does not who is not the owner but claims to be and acts as the
constitute sufficient basis for a claim of ownership. Such possession is owner
not exclusive and notorious as to give rise to a presumptive grant from
the State. The applicant is burdened to offer proof of specific acts of 2. Possession in the concept of holder – when the possessor of
ownership to substantiate the claim over the land. The good faith of the a thing or right holds it merely to keep or enjoy it, the ownership
person consists in the reasonable belief that the person from who he pertaining to another person.
received the property was the owner thereof and could transfer
ownership. Carlos v. Republic
It is possession not under a claim of ownership, the possessor
524. NAME UNDER W/C POSSESSION MAY BE EXERCISED acknowledging in another a superior right which he believes to be of
ownership, whether this be true or not or his belief be right or wrong.
(Ex. Usurfructuary, depositary, lessee, pledgee, bailee)
Article 524. Possession may be exercised in one’s own name or in that
of another. POSSESSION IN CONCEPT OF BOTH OWNER AND HOLDER OR
IN NEITHER
NAME UNDER WHICH POSSESSION MAY BE EXERCISED
1. It is possible that a person may exercise possession both in the
In one’s own name concept of owner and in the concept of holder. However,
The fact of possession and the right to such possession are found in the distinction must be made between possession of the thing itself
same person, such as the actual possession of an owner or a lessor of and possession of the right to keep or enjoy the thing.
land.
Rights are possessed in the concept of owner. Thus, the lessee
In the name of another possesses the thing leased in the concept of holder, and the right
of lease in the concept of owner.

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If the thing is subleased, the sub-lessee possesses the right in the 3. Where he was aware that a litigation concerning the land was
concept of holder. still pending when he acquired interest in the land.
4. Where purchaser believed that the seller was the owner of the
2. The agent, parent, guardian, administrator and other legal land sold despite the fact that the Torrens title shows that
representatives possess neither in the concept of owner nor in the another owns the same.
concept of holder. They possess in the name of another.
Heirs of T. de Leon Vda De Roxas v. CA
Art 526. POSSESSR IN GOOD FAITH AND IN BAD FAITH Where the land sold is in the possession of a person other than the
vendor, the purchaser must go beyond the COT and make inquiries
concerning the rights of the actual possessor. Failing in this, purchaser
POSSESSOR IN GOOD FAITH AND BAD FAITH cannot invoke good faith and cannot acquire a better right than his PII.
Possession, depending on the manner it has been acquired, may be
either in good faith or in bad faith. Good faith is always presumed, and Benin v. Tuazon
upon him who alleges bad faith on the part of the possessor rests the The mere fact that the land is peaceably possessed by a person other
burden of proof by clear and convincing evidence. than the seller does not make the buyer one in bad faith where he relied
in good faith for value upon the certificate of title of the seller.
 Possessor in good faith – one who is not aware that there exists
a title or mode of acquisition any flaw which invalidates it. TRANSACTIONS INVOLVING PROPERTY COVERED BY A COT

 Possessor in bad faith – one who possesses in any case contrary General Rule: Where there is nothing in the COT to indicate any cloud
to the foregoing (i.e. he is aware that there exists in his title a or vice, the purchaser is not required to explore further than what the
flaw which invalidates it) Torrens title upon its face indicates. (Mirror principle)

When distinction important Exception: The mirror principle does not apply to banks or financial
1. Receipt of fruits institutions. Before approving a loan, banks should send representatives
2. Payment of expenses and improvements to the premises of the land offered as collateral.
3. Acquisitive prescription
MISTAKE UPON A DOUBTFUL QUESTION OF LAW
When distinction immaterial Mistake upon a doubtful or difficult question of law may be the basis of
In the exercise of the right to recover under Article 539 which speaks of good faith.
every possessor.
Refers to an honest error in the application of the law or interpretation
Art 539 – A possessor deprived of his possession through forcible entry of doubtful or conflicting legal provisions or doctrines. It is different from
may secure a writ of preliminary injunction to restore him his possession. ignorance of law.

Where possession in name of another Art 527. PRESUMPTION OF GOOD FAITH

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 PRESUMPTION OF GOOD FAITH
him for whom he acts. Good faith is always presumed, and upon him who alleged bad faith on
the part of a possessor rests the burden of proof. He who alleges bad
REQUISITES FOR POSSSESSION IN G/B FAITH faith must prove with clear and convincing evidence.

1. The possessor has a title or mode of acquisition Instances of presumption

2. There is a flaw or defect in said title or mode 1. Defendant’s possession of personal property alleged to have
3. The possessor is unaware or aware of the flaw or defect or been stolen will be presumed to have been acquired in good
believes that the thing belongs or does not belong to him faith until that presumption is overcome.
2. A purchaser of property at a public auction by the sheriff is a
Po Lam v. CA possessor in good faith in the absence of proof to the
A purchaser cannot be considered as being “aware of a flaw which contrary.
invalidates his acquisition of the thing” where the alleged flaw, the notice 3. The nullity of the greater part of the possessor’s title is not
of lis pendens, was already being cancelled at the time of the purchase. sufficient argument to prove that he knew of the defect in his
mode of acquisition of a tract of land from his vendor and
CONCEPT OF GOOD FAITH overcome the presumption of good faith in his possession.

A question of intention ascertained by outward acts

Art 528. CESSATION OF GOOD FAITH DURING POSSESSION
Honesty of intention, honest lawful intent – which constitutes good faith.
It implies a freedom from knowledge and circumstances which out to
put a person on inquiry. CESSATION OF GOOD FAITH DURING POSSESSION
Possession which begins in good faith is presumed to continue in good
Good faith is not a tangible fact but rather a state or condition of mind faith until the possessor acquires knowledge of facts showing a defect
which can only be ascertained by actual or fancied tokens or signs. or weakness in his title.

Negrete v. CFI Marinduque Commencement of bad faith

Essence Bad faith begins from the time the possessor becomes aware that he
The essence of good faith lies in honest belief in the validity of one’s possesses the thing wrongfully.
right, ignorance of a superior claim and absence of intention to
overreach another, or to defraud or to seek an unconscionable Interruption of good faith
advantage. Good faith is interrupted from the receipt or service of judicial summons.

CONCEPT OF BAD FAITH Suobiron v. CA

Does not simply connote bad judgment or negligence – it imputes a Whether or not a possessor be in good faith, from the service of judicial
dishonest purpose to do wrong or cause damage. It contemplates a summons, there exists an act which the possessor knows that his right
state of mind affirmatively operating with furtive design or some motive is not secure, that someone disputes it, and that he may yet lose it; and
or self-interest for ulterior purpose. if the court orders that restitution be made, that time determines all the
legal consequences of the interruption, the time when the possession in
Instances of bad faith god faith ceases to be so before the law.
1. Defendant had always believed that the land did not belong
to them. Maneclang v. Baun
2. Where one purchased a land and on the COT of which, an The filing of a case alleging bad faith on the part of the vendee gives
adverse claim was previously annotated. cause for cessation of good faith.

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continues to possess the same under a new title, that of

ownership. (ex. Lessee who buys the land leased)
Art 529. CONTINUITY OF THE CHARACTER OF POSSESSION b. Tradicion constitutum possessorium – when the owner
continues in possession of the property alienated not as
owner but in some other capacity. (owner sells land and
CONTINUITY OF THE CHARACTER OF POSSESSION becomes a lessee thereof)
The character of possession is either in good faith or in bad faith,
depending on whether or not the possessor is aware that there exists in SUBJECT TO THE ACTION OF THE WILL
his title or mode of acquisition any flaw which invalidates it. This The occupation has the effect of subjecting things to the action of the
character is presumed to continue until the contrary is proved. possessor’s will.

Take note: This rule embodies principle – that no one can, by his sole Two kinds of constructive delivery:
will nor by the mere lapse of time, change the cause of his possession.
a. Tradition longa manu – effected by the mere consent or
PRESUMPTION ON THE CONTINUANCE OF POSSESSION agreement of the parties (ex. Vendor merely points to the
There are other presumptions affecting possession aside from those thing sold which shall thereafter be at the control and disposal
already mentioned, namely: of the vendee)

1. Uninterrupted possession of hereditary property b. Tradition simbolica – by delivering an object such as a key
2. Possession with just title where the thing sold is stored or kept, symbolizing the placing
3. Exclusive possession of common property of the thing under the control of the vendee.
4. Continuous possession
5. Uninterrupted possession PROPER ACTS AND LEGAL FORMALITIES
6. Possession during intervening period Refers to acquisition by virtue of a just title such as when property is
transmitted by succession, donation, contract or execution of a public
Art 530. OBJECT OF POSSESSION instrument; or when possession is given by the sheriff to the purchaser
at public auction or pursuant to a writ of execution or a writ of
possession.
OBJECT OF POSSESSION
Only things and rights which are susceptible of being appropriated may Take note: An execution of a sale through a public instrument shall be
be the object of possession. equivalent to the delivery of the thing, except where the purchaser
cannot have the enjoyment and make use of the thing sold because the
Must be susceptible of being appropriated same is prevented by another.
The thing or right must be susceptible of being appropriated. Hence,
only property may be the object of possession. Art 532. BY WHOM POSSESSION ACQUIRED

Need not be susceptible of prescription

Appropriability is broader than “within the commerce of men”. There are BY WHOM POSSESSION ACQUIRED
things which can be susceptible of appropriation but the object of
possession cannot be the object of prescription. Possession may be acquired:
1. Personally or by the same person who is to enjoy it
a) With respect to res nullius (property without owner) – can be 2. Through an authorized person or by his legal representative
possessed because they are capable of being appropriated but or agent
they cannot be acquired by prescription which presupposes 3. Through an unauthorized person or by any person without
prior ownership in another. any power whatever

b) Property of public dominion – cannot also be the object of General rule: If the person acted without authority, the possession
prescription but may be the object of possession. shall not be considered as acquired until the alleged principal ratifies the
act.
CHAPTER 2: ACQUISITION OF POSSESSION
Exception: When a person voluntarily manages the property of
business of another (negotiorum gestio) – gestor’s possession takes
Art 531. WAYS OF ACQUIRING POSSESSION effect even without ratification by the owner of the property.

WAYS OF ACQUIRING POSSESSION Art 533. ACQUISITION OF POSSESSION THRU SUCCESSION

To be considered in possession, one need not have actual or physical
occupation of a thing at all times.
ACQUSITION OF POSSESSION THRU SUCCESSION
Three ways of acquiring possession: The rights to the succession are transmitted from the moment of the
1. By the material occupation or exercise of a right death of the decedent.
2. By the subjection of the thing or right to our will
3. By proper acts and legal formalities established for acquiring The inheritance may be accepted or repudiated and the effects of the
such right of possession same retroact to the moment of death of the decedent.

MATERIAL OCCUPATION OR EXERCISE OF RIGHT Inheritance accepted – possession of the hereditary property is
deemed transmitted by operation of law to the heir without interruption
1. With respect to things – occupation in its general and and from the moment of death of the decedent.
material sense or usual and common meaning; possession as
a fact. Inheritance repudiated – the heir is deemed to have never possessed
the same.
2. With respect to rights – what is acquired is the exercise of
a right since rights are intangible and cannot logically by Take note; If decedent died with no heirs, the State shall be deemed to
occupied. have been in possession from the time of his death.

Material occupation by delivery

Art 534. EFFECTS OF BAD FAITH OF DECEDENT ON HEIR
The material occupation of a thing as a means of acquiring possession
may take place not only by actual delivery but also by constructive
delivery. EFFECTS OF BAD FAITH OF DECEDENT ON HEIR
If the decedent was in bad faith, the heir shall not suffer the
a. Tradition brevi manu – takes place when one already in consequences of his wrongful possession because bad faith is personal
possession of a thing by a title other than ownership to him and is thus not transmitted to the heirs.

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Acts merely tolerated – it is not merely silence or inaction. It means

permission, express or tacit, by virtue of which the acts of possession
Time when heir can suffer the consequences of bad faith are performed.
From the moment he becomes aware of the flaws affecting the
decedent’s title. Acts executed clandestinely and without the knowledge of the
possessor – the acts are not public and unknown to the possessor or
Hence, a wife who succeeds he deceased husband in the possession of owner.
land, without knowledge of any defect in her husband’s title thereto, is
presumed to be a possessor in good faith and may acquire title by POSSESSSION BY MERE TOLERANCE
prescription by virtue of such possession. But, the effects of her good
faith should be counted only from the date of her husband’s death. Nature of possession
Possession of another by mere tolerance is not unlawful. Neither is it
Illustration adverse, hence, no matter how long, cannot ripen to ownership. The
H died on Feb 2011 after possessing in bad faith a land for 6 years. W mere silence or failure to take any action will not be construed as
harvested fruits valued at P20k at the time of H’s death and 30k on July abandonment.
2011 when T brought an action to recover the property.
Effect of demand to vacate
W must reimburse the P30k, minus the necessary expenses because H Possession by tolerance becomes illegal when upon demand to vacate
was in bad faith. However, W is not liable for damages. The 20k need by the legal owner, the possessor refuses to do so. Possessor is bound
not be reimbursed because W was a possessor in good faith. by an implied promise to vacate upon demand, and failing which, the
proper remedy is a summary action for ejectment against hm.
Art 535. ACQUISITION AND EXERCISE OF RIGHTS OF
Period for filing action for unlawful detainer
POSSESSION BY MINORS AND INCAPACITATED PERSONS
One year to be counted from the date of last demand.

POSSESSION BY MINORS AND INCAPACITATED Arambulo v. Gungab

Minors and incapacitated persons may acquire the possession of things, The one year period for filing an action for unlawful detainer is counted
but they need the assistance of their legal representatives in order to from the date of the demand, and when several demands are made,
exercise the rights which from the possession arise in their favor. from the last letter of demand.

Possession by persons without capacity Bernachea v. CA

1. Unemancipated minors The one year period is a prescriptive period as well as a jurisdiction
2. Spendthrifts requirement.
3. Deaf-mutes who cannot read and write
4. Those under civil interdiction Right of owner to receive compensation
In the absence of proof of any contractual basis for a person’s
Possession of corporeal things possession, the only legal implication is that the possession of the
Things are limited to corporeal things only. Rights are not included. subject property is by mere tolerance of the owner. Where the
possession of the property is by mere tolerance, the owner has no right
Acquisition of possession by material possession to receive any payment from the possessor. (Llobrera v. Fernandez)
Refers principally but not exclusively to material occupation. Hence,
other modes of acquisition are not applicable to incapacitated persons. POSSESSORY ACTIONS INVOLVING PUBLIC LANDS
Courts have jurisdiction over possessory actions involving public lands
Exercise of rights of possession through legal representatives to determine the issue of physical possession in ejectment cases, as well
Once possession is acquired, there is born the right of possession. In as better right of possession in accion publiciana.
the exercise of this right, they need the assistance of their legal
representatives. Actions for possession raised before the courts are proceedings discrete
from the administration, disposition and alienation of public lands which
should be threshed out in the Land Management Bureau.
Art 536. RECOURSE TO COURTS

Art 538. POSSESSION AS A FACT IN 2 DIFF PERSONALITIES

RECOURSE TO COURTS
Every possessor has a right to be respected in his possession. The lawful
possessor may use such force as may be reasonably necessary to repel POSSESSION AS A FACT IN TWO DIFFERENT PERSONALITIES
invasion or usurpation of his property. Possession as a fact cannot be recognized at the same time in two
different personalities, except in the case of co-possession.
If the person in possession refuses to deliver the property, the one who
believes himself to be entitled to it, however well-founded his belief may Take note: The word “personalities” is not synonymous to persons. In
be, cannot take the law into his own hands and must seek the aid of the co-ownership, there are two or more persons, but only one personality.
competent court.
Preference of possession
Villafuerte v. CA In case a dispute arises regarding the fact of possession, the order of
A person’s arbitrary conduct of fencing his property under the claim that preference is as follows:
he owns the same violated the law and circumvents the procedure which 1. The present or actual possessor shall be preferred
should be obtained before the court. 2. If there are two possessors, the longer in possession
3. If the dates of possession are the same, the possessor with a
title (i.e. right or document evidence his right to possess)
Art 537. ACTS WHICH DO NOT GIVE RISE TO POSSESSION
4. All things being equal, it shall be judicially determined, and in
the meantime, the thing shall be placed in judicial deposit.
ACTS WHICH DO NOT GIVE RISE TO POSSESSION
The following acts do not affect possession. The true possessor is
deemed to have enjoyed uninterrupted possession.

1. Force of intimidation
2. Acts merely tolerated
3. Acts executed clandestinely and without the knowledge of the
possessor

Force of intimidation – as long as there is a possessor who objects

thereto. Does not apply if the possessor makes no objection.

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USUFRUCT V. LEASE
TITLE VI. USUFRUCT
Usufruct Lease
CHAPTER 1. USUFRUCT IN GENERAL
As to nature
of right Always a real right Generally a personal right
Art 562. DEFINITION OF USUFRUCT

As to the Person creating the Lessor may not be the

USUFRUCT DEFINED creator of usufruct should be the owner as when he is a
Right to enjoy the property of another with the obligation of preserving right owner or his duly sub-lessor or he is only a
its form and substance, unless the title constituting it or the law authorized agent usurfructuary
otherwise provides.

Another definition As to origin May be created by law, Generally created by

contract, will of the contract
It is a real right of temporary nature which authorizes the holder to enjoy
testator, prescription
all the benefits which result from the normal enjoyment of another’s
property, with the obligation to return either the same thing or its
As to extent Covers all the fruits and Generally refers to certain
equivalent, at the designated time.
of enjoyment all the uses and benefits uses only (i.e. to those
of the entire property stipulated)
Includes both the:
1. Right to use
Involves a more or less
2. Right to the fruits passive owner who Involves a mere active
As to cause allows the usufructuary owner or lessor who
Simplest definition: to enjoy the object given makes the lessee to enjoy
Allow one to enjoy another’s property. in usufruct

CHARACTERISTICS
Usufructuary pays for Lessee is not generally
As to repairs under obligation to
1. It is a real right of use and enjoyment (whether registered or not) ordinary repairs and
and taxes undertake repairs or pay
taxes on the fruits
2. It is of temporary duration taxes
3. It is transmissible
4. It may be constituted on real or personal property, consumable
or non-consumable, tangible or intangible – ownership of which Art 563. CREATION OF USUFRUCT
is vested in another

TN: A person cannot create a usufruct over his own property and at the HOW IS USFRUCT CREATED
same time retain ownership over the same. To be a usurfructuary of
one’s property is a contradiction in terms and a conceptual absurdity. 1. Legal – created by law or declared by law, such as the usufruct
of the parents over the property of their unemancipated children
CLASSIFICATIONS
2. Voluntary – created by will of the parties (i.e. donation, last will)
As to whether or not impairment of object is allowed:
A. Normal 3. Mixed – that acquired by prescription (i.e. where one believing
B. Abnormal himself the owner of the property of an absentee, in his will, gave
the usufruct of the property to his wife and the naked ownership
As to origin: to his brother)
A. Legal
B. Voluntary Art 564. KINDS OF USUFRUCT
C. Mixed

As to number of usufructuaries: KINDS OF USUFRUCT

A. Simple Usufruct may be constituted on the whole or a part of the fruits of the
B. Multiple thing, in favor of one or more personas, simultaneously or successively,
 Simultaneous and in every case from or to a certain day, purely or conditionally. It
 Successive may also be constituted on a right, provided it is not strictly personal or
intransmissible.
As to terms of conditions:
A. Pure As to extent of object
B. With a term or period
C. Conditional CHARACTERISTICES
CLASSIFICATIONS
As to quality or kind of object: USUFRUCT V. LEASE
A. Of things HOW CREATED
B. Of rights KINDS

As to extent of owner’s patrimony:

A. Universal
B. Particular

IMPAIRMENT OF OBJECT OF USUFRUCT

Whether or not impairment of the object held in usufruct is allowed.

1. Normal usufruct – involves non-consumable things which

the usufructuary can enjoy without altering their form or
substance, though they may deteriorate or diminish by time
of by the use to which they are applied. (Ex. House, land,
furniture)
2. Abnormal usufruct – involves things which would be
useless to the usufructuary unless they are consumed or
expended. (Ex. Money, liquor, grain)

6|U N I V E R S I T Y O F S A N C A R L O S