ARTICLE
4 August 2022

What Is A Usufruct And Why Is It Important?

SI
SchoemanLaw Inc.
Contributor
SchoemanLaw Inc. logo
SchoemanLaw Inc Attorneys, Conveyancers and Notaries Public, based in Cape Town, is a boutique law firm offering its clients access to high quality online legal documents and agreements, together with a wide range of legal services. The firm has an innovative and entrepreneurial mind-set that distinguishes it from other law firms. We apply our first-hand understanding of the challenges facing entrepreneurs (regardless of their business size) to develop proven, practical solutions incorporating legal compliance, risk aversion and business sense. We achieve this by offering clients tailored, yet holistic support comprising of legal gap analysis, the construction of tailored legal solutions and the practical implementation thereof through training and automation.
Many South Africans who own property want to ensure that the rights of their loved ones are protected concerning the property. They want to ensure their loved ones have control of the property...
South Africa Real Estate and Construction
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Many South Africans who own property want to ensure that the rights of their loved ones are protected concerning the property. They want to ensure their loved ones have control of the property, enjoy the benefits of the property, and reduce the possibility of any disputes. Various mechanisms can be used to ensure this. One of the most commonly used mechanisms is personal servitudes like a usufruct.

What Are Personal Servitudes?

Although personal servitudes are commonly used in wills concerning properties, many property owners and testators don't know what they are, or the impact servitudes may have on their loved ones. Personal servitudes establish the right to enjoy and use the property of another person. The personal servitude which we are focusing on is a usufruct, its importance and the implications of its use.

Usufruct

A usufruct provides the holder of the right to use the property of another person and consume, alienate or take any fruits that come from the property itself or anything that may be ancillary to the property, such as equipment or furniture. Ultimately, the holder of this right, also known as the usufructuary, is entitled to all the advantages, profit or utility the property produces. Furthermore, the usufructuary must use the property in the manner as its intended use and is bound to maintain the property without compensation.

Although a usufructuary may not alienate the property, they may confer the right to the use and enjoyment of the property to another through sale, loan or lease for the period that the usufruct has been granted. A usufruct is usually lifelong and expires on the death of the usufructuary; however, they are sometimes granted for a fixed term; and the owner of the property cannot do anything that infringes on the usufructuary's rights.

This provides certainty regarding who has control over the property and who holds ownership, who enjoys certain benefits and what each party's rights are in terms of the property. It should be noted that to give effect to a usufruct, the title deed must be endorsed at the deeds office.

Conclusion

In conclusion, when used correctly, this mechanism can create certainty and be beneficial for your loved ones; however, it can also place a severe burden on them when misused. Therefore, it is crucial to know what it entails, the effect thereof and to make sure that you are not acting in a manner that can be detrimental to loved ones. Consult with a legal professional before having any legal documentation drafted.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

ARTICLE
4 August 2022

What Is A Usufruct And Why Is It Important?

South Africa Real Estate and Construction
Contributor
SchoemanLaw Inc. logo
SchoemanLaw Inc Attorneys, Conveyancers and Notaries Public, based in Cape Town, is a boutique law firm offering its clients access to high quality online legal documents and agreements, together with a wide range of legal services. The firm has an innovative and entrepreneurial mind-set that distinguishes it from other law firms. We apply our first-hand understanding of the challenges facing entrepreneurs (regardless of their business size) to develop proven, practical solutions incorporating legal compliance, risk aversion and business sense. We achieve this by offering clients tailored, yet holistic support comprising of legal gap analysis, the construction of tailored legal solutions and the practical implementation thereof through training and automation.
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