Understanding Usufruct: Temporary Property Rights Explained

A usufruct is a legal right granted to an individual or party that allows for the temporary use and benefit from someone else’s property. This concept is rooted in many mixed and civil law jurisdictions and the person who holds this right is called a usufructuary.

A usufruct marries two specific property rights: usus and fructus. Usus refers to the right to directly use something without causing damage or altering it, whereas fructus denotes the right to enjoy the fruits or profits from the property, such as by leasing it, selling crops, or charging admission.

Usufruct is typically conferred for a specific period. This arrangement allows the usufructuary to manage or benefit from a property, especially in cases where the property owner cannot do so, often due to ill health. Still, the usufructuary is not permitted to damage, destroy, or transfer ownership of the property, as they do not possess the third property right, abusus, which includes consuming, destroying, or transferring the property.

How a Usufruct Works

In a usufruct arrangement, a person or group can utilize and benefit from another’s property without owning it. Usufruct agreements outline the extent of these rights and typically come in two forms: perfect and imperfect.

In a perfect usufruct, the usufructuary can use and profit from the property, provided they do not make significant changes. For instance, if a business owner becomes incapacitated and grants usufruct to a relative, the relative can manage but not sell or extensively modify the business.

Conversely, in an imperfect usufruct, the usufructuary may have the authority to make alterations to the property. For example, if a landowner grants usufruct for agricultural use, the usufructuary is permitted to cultivate crops and make necessary improvements to the land. However, these improvements revert to the owner or their estate once the usufruct ends.

Usufruct is recognized in a select number of jurisdictions within North America, such as Louisiana. As a practical illustration, a party holding usufruct over a real estate property may use or rent it out, retaining the rental income, without needing to share with the actual owner while the usufruct period remains active.

Usufruct Example

Consider the case of Bert, who has been granted usufruct of Helen’s property—a bed and breakfast with a spacious yard. Helen’s ill health prevents her from managing the property and running the business. During the usufruct term, Bert manages and operates the business on Helen’s behalf. Upon Helen’s passing, the estate is settled, and the property is distributed according to her will or as per the law.

Related Terms: abusus, estate, real property, lease agreement.

References

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