Legal Definitions - usufruct

Usufruct is a legal right that allows a person to use and enjoy the benefits of someone else's property, without actually owning that property. The individual who holds this right is called the usufructuary. While the usufructuary can derive income or enjoyment from the property, they have a responsibility to maintain it and ensure its value is not diminished, except for natural wear and tear or depletion.

In modern civil law, usufructs are often categorized into two types:

• Perfect Usufruct: This applies to property that can be used without being consumed or fundamentally changed. The usufructuary must preserve the original nature of the property and return it in essentially the same condition at the end of the usufruct period.
• Imperfect Usufruct (or Quasi-Usufruct): This applies to property that is consumed or used up through its use, such as money, food, or raw materials. In such cases, the usufructuary is obligated to return an equivalent value, quantity, or quality of the property to the owner at the end of the usufruct.

Here are some examples to illustrate the concept of usufruct:

• Example 1 (Perfect Usufruct - Real Estate):

  An elderly woman, Mrs. Chen, owns a beautiful country house. She wants her grandson, David, to be able to live there and enjoy it for a few years while he finishes his studies, but she doesn't want to give up ownership. She grants David a usufruct, allowing him to live in the house, use its garden, and enjoy the peace it offers. David must maintain the property, pay utilities, and ensure it remains in good condition, but he cannot sell it, mortgage it, or make major structural changes. Mrs. Chen remains the legal owner. This illustrates a perfect usufruct because the house itself is not consumed by David's use; he simply enjoys its benefits while preserving its original nature.

• Example 2 (Imperfect Usufruct - Consumable Goods):

  A small family-owned vineyard is passed down through generations. The will of the late owner grants a local culinary school a usufruct over a specific quantity of the vineyard's annual grape harvest for five years. The school can use these grapes to make wine for educational purposes or to sell for fundraising. Since the grapes are consumed in the winemaking process, the agreement specifies that at the end of each year, the school must deliver an equivalent value in cash or an agreed-upon quantity of their own finished wine to the vineyard owners. This is an imperfect usufruct because the grapes are consumed through use, requiring the usufructuary (the culinary school) to return an equivalent value or quantity.

• Example 3 (Perfect Usufruct - Income-Generating Asset):

  Mr. and Mrs. Lee own a small apartment building. They decide to move abroad but want their adult daughter, Sarah, to benefit from the property's income without giving her full ownership yet. They grant Sarah a usufruct over the building for ten years. Sarah is entitled to collect the rental income from the apartments and use it as she sees fit. However, she is responsible for maintaining the building, paying property taxes, and ensuring its value is preserved. She cannot sell the building or take out a mortgage on it, as her parents retain legal ownership. This demonstrates a perfect usufruct where Sarah benefits from the income generated by the property, but the property itself remains intact and owned by her parents.