ESTABLISHMENT AND DURATION OF USUFRUCT
Usufruct is created by the will of the parties, either through a contract or a testamentary disposition. It may also be acquired through adverse possession, provided all legal requirements for acquiring ownership are met.
It is essential to note that usufruct is a temporary right. If granted to a natural person, it terminates upon their death. For legal entities, the maximum duration is thirty years, ensuring that the right does not extend indefinitely.
WHAT ASSETS CAN BE SUBJECT TO USUFRUCT IN BOLIVIA?
LEGAL TRANSFER OF USUFRUCT RIGHTS IN BOLIVIA
The usufructuary may transfer their right, either in whole or in part, unless explicitly prohibited by the original agreement. This transfer must be formally notified to the property owner. Until such notification is made, the usufructuary remains jointly liable with the transferee.
The legal effects of the usufruct are primarily governed by the original agreement between the parties. If no specific terms are established, current legislation applies to ensure legal certainty and continuity.
RIGHTS AND RESPONSIBILITIES OF THE USUFRUCTUARY
The usufructuary has the right to use and benefit from the asset, provided they respect its intended economic use. This includes the use of accessories and attachments. They must act diligently and responsibly, in accordance with the standard of a “good family man.”
Additionally, the usufructuary is entitled to both natural fruits (such as crops) and civil fruits (such as rent), as established by law. Fruits pending at the beginning of the usufruct belong to the usufructuary, while those remaining at its end belong to the property owner, who must reimburse the production costs based on their value.
USUFRUCT AND IMPROVEMENTS: WHEN IS COMPENSATION GRANTED IN BOLIVIA?
If the usufructuary makes useful improvements, they are entitled to compensation at the end of the usufruct. The compensation is limited to the lesser of the investment cost or the increase in the asset’s value. Luxury improvements are not compensated, although they may be removed if this does not alter the property’s original condition.
A usufructuary of rural property may obtain concessions for natural resources like salt or lime. If the usufruct includes forests, regular logging may be carried out in compliance with forest law. Rules also exist for the use and replenishment of trees and livestock, ensuring preservation of the asset’s value.
USUFRUCT OF CONSUMABLE GOODS IN BOLIVIA: RIGHTS AND DUTIES
When the usufruct covers consumable goods, the usufructuary becomes their temporary owner and must either return their value or replace them in equal quantity and quality. In the case of deteriorable goods, they must be returned in their existing state unless damage was caused by the usufructuary’s fault.
The usufruct of commercial or industrial businesses requires the usufructuary to keep the business operational, maintain inventory, and safeguard the company’s credit. Upon termination, the difference in value compared to the initial inventory must be compensated.
INVESTMENT OF CAPITAL SUBJECT TO USUFRUCT
Collecting capital assets requires joint participation of both the property owner and the usufructuary. Once collected, the funds must be invested profitably, with the usufruct applying to the new investment. In case of disagreement, a judge will determine the investment’s destination.
In conclusion, usufruct in the Plurinational State of Bolivia is designed as a balanced legal right that allows for the temporary use of another’s assets under clear conditions. It is broadly applicable in family, agricultural, and commercial contexts, ensuring both the enjoyment of the asset and the protection of ownership rights.
Our law firm offers specialized legal advice on the establishment, administration, and termination of usufructs. We ensure that your rights and obligations are fully protected. If you require legal guidance in this area, do not hesitate to contact us.
Frequently Asked Questions (FAQs)
What types of assets can be subject to usufruct?
Both movable and immovable assets may be subject to usufruct, including properties, vehicles, and businesses.
Can a usufruct be sold?
Yes, the usufructuary may transfer their right unless the contract forbids it. The transfer must be formally notified to the owner.
What happens if the usufructuary dies?
If the usufructuary is a natural person, the usufruct automatically terminates upon their death.
Can the usufructuary make improvements?
Yes, and they may be entitled to compensation for useful improvements once the usufruct ends.
Who is entitled to the fruits at the beginning and end of the usufruct?
Fruits at the beginning belong to the usufructuary. At the end, they belong to the owner, who must reimburse production costs.
- Ministry of Justice. (2005). Civil Code of the Plurinational State of Bolivia.
- Political Constitution of the Plurinational State of Bolivia.
- Rodríguez, J. (2019). Real Rights in Bolivian Civil Law. La Paz: Editorial Jurídica.
The content of this article does not reflect the technical opinion of Rigoberto Paredes & Associates and should not be considered a substitute for legal advice. The information presented herein corresponds to the date of publication and may be outdated at the time of reading. Rigoberto Paredes & Associates assumes no responsibility for keeping the information in this article up to date, as legal regulations may change over time.
