Category: Property, Ownership and Its Modifications
GABOYA V. CUI
38 SCRA 85
Don Mariano sold his three lots prodiviso to his three children. One of his children, due to lack of funds, wasn’t able to purchase part of the land. This reverted back to the father. As part of the sale, the father reserved for himself the usufruct of the property. He co-owned the land with his children then. A building was then constructed in a portion of the land, wherein rentals was given to the father. Thereafter, the two children who were co-owners obtained a loan, secured by a mortgage, with authority of the father, to construct a commercial building. The father alleges that since he has usufruct over the land, he has usufruct or share in the rentals earned through the constructed building.
The reserved right of vendor on a parcel of land doesn’t include rentals from the buildings subsequently constructed on the vacant lots, but that it did entitle the usufructuary to a reasonable rental for the portion of the land being occupied by the building.