HEMEDES VS. CA G.R. No. 108472 October 8, 1999 Facts: The disagreement concerns a matter of ownership of an unregistered USUFRUCT AGREEMENT This AGREEMENT entered into and entered into on this ____ day by ____, 20 __, in San Fernando City, Philippines, within and between this ______ day: ALARM DISTRIBUTION PACIFIC INC. a well-organized and progressively existing company under the laws of the Philippines, with its registered office and registered office at _Dist.____ CONSIDERING that the grantor accepts the offer of the beneficiary, provided that the company assumes all the obligations of a usufructuary to the extent that they are compatible with this contract. SO NOW, for and taking into account the above premises, the parties hereby agree as follows: 1. RIGHT OF USE The Licensor hereby grants the Company the right to cancel lot __, Blk No. ____ Dist. ____ and the structure built on it. This right of use includes the right to make the necessary improvements to accommodate office spaces for the exclusive use of the Company. 2. OWNERSHIP OF IMPROVEMENTS Upon expiration of this Agreement, all improvements to the property will belong to the Grantor. 3.

DURATION OF USUFRUCT The Company`s right to use the property expires on December 31, 2014. 4. OBLIGATIONS OF THE COMPANY The Company hereby undertakes: a. Preserve the form and content of the property, unless this is necessary for the accommodation of its offices. This clause should not be interpreted as an impossible obligation. It is understood that this obligation will be respected as long as at least one floor of the structure is intended for residential purposes with all the necessary amenities and with unhindered access for entrances and exits. b. Take care of all necessary and extraordinary expenses and repairs of the property and improvements made by the company.

c. Payment of all taxes, fees, privileges on the property existing at the time of performance of this Agreement and those that may accrue during this period AND upon its expiration, including transfer and property taxes. 5. TOTAL CONSIDERATION No other consideration is due, unless subsequently agreed. 6. BREACH OF CONTRACT In the event of a breach of contract by one party, the other party has the right to terminate the contract. TO TESTIFY, the parties hereby write down their names at the above-mentioned place and date on this document, which consists of three pages. ________ « 2. On expiry of the period for which it was established or by fulfilling any condition laid down in the title giving rise to the usufruct; In addition, article 603 of the new Civil Code stipulates that the usufruct ceases in the event of renunciation of the usufruct or termination of the right of the person constituting the usufruct. This provision is quoted below: “(6) By terminating the right of the person constituting the usufruct;” (3) By merging the usufruct and the ownership of the same person; In 2010, I wrote to my best friend Gerald that he could use my land in the province to build their home since I was working abroad. When I decided to sell said property, I wrote another letter to Gerald informing him of my plan and that he had to return it. But he refused to hand over the property and vehemently refused to leave it.

He told me that he was already the new owner of the property based on the letter I sent him. What can I do about it? The contract you have with Gerald is a usufruct contract. Article 562 of the new Civil Code clearly provides that “the right of usufruct confers the right to enjoy the property of others with the obligation to preserve its form and substance, unless the title of which it is held or the law provides otherwise”. “(1) Death by usufruct, unless clearly stated otherwise; Editor`s note: Dear PAO is a daily column of the Office of the Prosecutor. Questions to Chef Acosta can be sent to [email protected]. In addition, in the Mercedes Moralidad case, the Supreme Court ruled against spouses Diosdado Pernes and Arlene Pernes (GR 152809, August 3, 2006) in the pen of Associate Judge Cancio Garcia: If you apply the above in your current situation, you have only given Gerald a right to advantageous use of your land and built your house on it. However, this does not mean that you are already giving it said property. Therefore, you can repossess your land at any time. We hope we have been able to answer your questions. This advice is based solely on the facts you have told and our appreciation of them. Our opinion may differ if other facts are changed or elaborated. “Usufruct is essentially nothing more than just allowing you to enjoy someone else`s property.

It is also defined as the right to temporarily enjoy the property of others, including jus utendi and jus fruendi, with the owner retaining jus disponendi or the power to dispose of the same. `It is common ground that, in a document of 21 July 1986, the applicant stated, inter alia, her intention to give the defendants and their other relatives the right to use and enjoy their property. Nor can there be any dispute that the respondents have the right to build their own house on the property and to remain there for as long as they wish. (emphasis added). . . .