Antichresis

ANTICHRESIS (ARTICLES 2132-2139) Art. 2132. By the contract of antichresis the creditor acquires the right to receive the fruits of an immovable of his debtor, with the obligation to apply them to the payment of the interest, if owing, and thereafter to the principal of his credit. (11! Defnition o Antichresis - Creditor c!"ires the ri#ht to recei$e the r"its o n i%%o$&'e o his de&tor ith the o&'i#tion to **'+ the% to the *+%ent o the interest i oin# nd thereter to the *rinci*' o his credit, &'i#tions o  Creditor - *+ the t.es nd chr#es on the 'nd - **'+ the re%ins or e.cess o the r"its to the *+%ent o interests nd then c*it' - cnnot c!"ire onershi* o$er the i%%o$&'e &ec"se o non-*+%ent o the de&t or 'on ithin the sti*"'ted *eriods %/in# '' sti*"'tions to the contrr+ n"'' nd $oid, 0 The contrct herein is  $'id contrct o %ort##e ith the ri#ht o "s"r"ct nd not o ntichresis 'c $s, Co"n#co cts4 S*o"ses e.ec"ted in $or o Co"n#co  *"&'ic deed herein the+ c/no'ed#ed to &e cts4 inde&ted to deendnt nd to #"rntee the *+%ent o the 'on the+ con$e+ed in $or o Co"n#co &+ + o frst %ort##e 5 *rce's o 'nd ith the ri#ht o "s"r"ct o$er the 'nds,  6ers  6e rs ter the ido o7ered o7ered to redee% the *ro*ert+ *ro*ert+ to hich deendnt deendnt re"sed on the the #ro"nd tht the *eriod o rede%*tion hd 'red+ e.*ired, He'd4 There is no *ro$ision in the contrct %/in# it the o&'i#tion o the %ort##ee to **'+ the r"its o the *ro*ert+ there&+ co$ered to the *+%ent o the *rinci*' o the 'on nd the interest thereon, It doesn8t e$en contin n+ sti*"'tion o the %o"nt o interest to &e *id, It co"'d not &e %ot &e inerred thereore thereore tht the intention o the *rties s to enter into  contrct o ntichresis, hen  contrct o 'on it sec"rit+ does not sti*"'te the *+%ent o interest &"t *ro$ides or the de'i$er+ to the creditor &+ de&tor the re't+ constit"ted constit"ted s sec"rit+ or the *+%ent thereo in order tht the creditor %+ d%inister the s%e nd $i' hi%se' o its r"its itho"t sttin# tht sid r"its re to &e **'ied to the *+%ent o interest i n+ nd terrds to tht o the *rinci*' o  the credit the contrct sh'' &e considered to &e one o %ort##e nd not o ntichresis, The contrct herein is  $'id contrct o %ort##e ith the ri#ht o "s"r"ct nd not o ntichresis, 0 As  %ort##ee in *ossession his ri#hts nd o&'i#tions re si%i'r to those o n ntichretic creditor, Die#o $s, ernndo cts4 Deendnt ernndo e.ec"ted  deed o %ort##e in $or o the *'inti7 o$er to *rce's o cts4 'nd to sec"re  'on o 2::: itho"t interest *+&'e ithin 5 +ers, The *ossession o the %ort##ed *ro*erties ere t"rned o$er to the %ort##ee, The deendnt h$in# i'ed to *+ the 'on ter 5 +ers the *'inti7 %de se$er' de%nds "*on the deendnt or *+%ent hich ere "nheeded, 'inti7 f'ed this ction or orec'os"re o %ort##e, Deendnt r#"ed tht the tr"e trnsction s one o ntichresis nd tht s *'inti7 hd recei$ed se$er' c$ns o *'+ ro% the %ort##ed *ro*erties $'"ed t ;2:: his de&t hd 'red+ &een *id, Iss"e4 N the contrct is one o %ort##e or o ntichresis He'd4 It is not n essenti' re!"isite o  %ort##e tht *ossession o the %ort##ed *re%ises &e retined &+ the %ort##or, To To &e n ntichresis it %"st &e e.*ress'+ #reed &eteen the creditor nd

the de&tor tht the or%er h$in# &een #i$en *ossession o the %ort##ed *ro*erties is to **'+ their r"its to the *+%ent o the interest is to **'+ their r"its to the *+%ent o the interest i oin# nd thereter to the *rinci*' o his credit< so tht i  contrct o 'on ith sec"rit+ does not sti*"'te the *+%ent o interest &"t *ro$ides or the de'i$er+ o %ort##ed *ro*ert+ to creditor in order tht the 'tter %+ #ther their r"its itho"t sttin# tht sid r"its re to &e **'ied to the *+%ent o interest i n+ nd terrds tht o the *rinci*' the contrct is  %ort##e nd not n ntichresis,  The contrct thereore thereore is  tr"e %ort##e nd nd not n ntichresis, ntichresis, This conc'"sion hoe$er does not %ent tht the *'inti7 h$in# recei$ed the r"its o sid *ro*erties i'' &e ''oed to **ro*rite the% or hi%se' nd not &e re!"ired to cco"nt or the to the deendnt, The tr"e *ossession or one ho hs '"''+ c!"ired ct"' or constr"cti$e *ossession o the *re%ises %ort##ed to hi% stndin# "*on his ri#hts s  %ort##ee nd not c'i%in# "nder nother tit'e or the *"r*ose o enorcin# his sec"rit+ "*on s"ch *ro*ert+ or %/in# its inco%e he'* to *+ the de&t, As s"ch %ort##ee in *ossession his ri#hts nd o&'i#tions re si%i'r to those o n ntichretic creditor, creditor,  The ri#hts nd o&'i#tions o&'i#tions o n ntichretic ntichretic creditor re4 re4 1, i the %ort##ee c!"ires *ossession in n+ '"' %nner he is entit'ed to retin s"ch *ossession "nti' the inde&tedness is stisfed nd the *ro*ert+ redee%ed, 2, tht the non-*+%ent o de&t ithin the ter% does not $est onershi* in the creditor 3, tht the #ener' d"t+ o the %ort##e in *ossession tords the *re%ises is tht o the ordinr+ *r"dent oner 5, tht he %"st cco"nt or the rents nd *rofts o the 'nd or its $'"e or *"r*oses o "se nd occ"*tion n+ %o"nt th"s re'i=ed #oin# tords the dischr#e o the %ort##e de&t ;, i he re%ins in *ossession ter the de&t is stisfed he &eco%es  tr"stee or the %ort##or s to the e.cess o the rents nd *rofts o$er s"ch de&t >, the %ort##or cn on'+ enorce his ri#hts to the 'nd &+ n e!"it&'e ction or cco"ntin# nd to redee% In the *resent cse the *rties h$in# #reed tht the 'on s to &e itho"t interest nd the **e''nt not h$in# e.*ress'+ i$ed his ri#ht to the r"its o the %ort##ed *ro*erties d"rin# the creditor8s *ossession the 'tter 'i/e n ntichretic creditor %"st cco"nt or the $'"e o the r"its recei$ed &+ hi% nd ded"ct it ro% the 'on o&tined &+ the **e''nt,

Art. 2133. "he actual mar#et value of the fruits at the time of the application thereof to the interest and principal shall be the measure of such application. (n! Art . 213 $. "he amou nt of the princ ipa l and of the interest shall be specifed in writing%% otherwise, the c ontract of antichre sis shall be void . (n! writing Art. 213&. "he creditor, unless there is a stipulation to the contrary, is obliged to pay the ta'es and charges upon the estate. e is als o bound to bea r the e'p enses ne cessary for its preservation and repair. "he sums spent for the purposes stated in this article shall be deducted from the fruits. (1??2) 0 The ntichretic creditor is o&'i#ed to *+ the t.es nd chr#es "*on the estte Art. 213). "he debtor cannot reacq uire the en*oymen t of the immovable with out +rst having totally paid what he owes the creditor. But the latter latter,, in order to e'empt himself from the obligations imposed upon him by the preceding article, may always compel the debtor to enter again upon the en*oyment of the property, e'cept when there is a stipulation to the contrary. (1??3) contrary.  (1??3)

Art. 213. "he creditor does not acquire the ownership of the real estate for nonpayment of the debt within the period agreed upon.

1, Accessor+ contrct

very stipulation to the contrary shall be void. But the creditor may petition the court for the payment of the debt or the sale of the rea l property. /n this case, the 0ules of ourt on the foreclosure of mortgages shall apply. (1$a!

3, De' on'+ ith i%%o$&'e *ro*ert+

0 In the e$ent tht the ntichretic creditor does not #et r"its ro% the *ro*ert+ nd the de&t is not *id the creditor %+ &rin# n ction or *+%ent o the 'on nd h$e the *ro*ert+ so'd on e.ec"tion to re'i=e *+%ent, Art. 213. "he c ontracti ng parties may s tipulate tha t the intere st upon the debt be compensat ed with the fruits of the property which is the ob*ect of the antichresis, provided that if the value of the fruits should e'ceed the amount of interest allowed by the laws against usury, the e'cess shall be applied to the principal. (1&a!

2, or%' contrct - it %"st &e in ritin#< *rinci*' o&'i#tion nd interest

5, Re' ri#ht ;, Re' contrct >, Cn #"rntee '' /inds o $'id o&'i#tions,

It is not essenti' tht the 'on sho"'d ern interest in order tht i t cn &e #"rnteed ith  contrct o ntichresis, Antichresis is s"sce*ti&'e o #"rnteein# '' /inds o o&'i#tions *"re or condition', (Javier vs. Valliser, No. 2648-R,  April 29, 1950; Sta. Rosa vs. Noble, 5 !.". 2#241$

Art. 213. "he last paragraph of Article 2&, and Articles 2 to 21 are applicable to this contract. (1)a! De'i$er+ o the *ro*ert+ to the creditor is re!"ired on'+ in order tht the creditor %+ recei$e the r"its nd not or

0 It is the essence o ntichresis tht the de&tor cnnot reco$er the eno+%ent o the 'nd in$o'$ed itho"t frst *+in# the creditor in "'',

the $'idit+ o the contrct,

ANTICHRESIS 0 The creditor c!"ires the ri#ht to recei$e the r"its o n i%%o$&'e o his de&tor ith the o&'i#tion to **'+ the% o the *+%ent o the interest i oin# nd thereter to the *rinci*' o his credit 0 Arrn#e%ent tht the r"its i'' &e "sed to 'i!"i+ the *rinci*' o&'i#tion 0 Doesn@t crete  'ien &"t on'+ the #rnt o the "se o the r"its  THERE IS N NEED T TRANSER SSESSIN, RBITS,

ow is a contract of antichresis be validly established4  The %o"nt o the *rinci*' nd o the interest sh'' &e s*ecifed in ritin# < otherise the contrct o ntichresis sh'' &e $oid, (Art, 2135 CC)

HAT IS ESSENTIAL IS THE RANT  THE BSE  THE ow should the amount of payment in antichresis be determined4

ADDITINAL ENEIT IN HAIN A CNTRACT  ANTICHRESIS  The ct"' %r/et $'"e o the r"its t the ti%e o the **'iction thereo to theinterest nd *rinci*' sh'' &e the 0 In the &sence o  contrct o ntichresis the de&tor co"'d "st iss"e  s*eci' *oer o ttorne+ in $or o the creditor or the co''ection o the r"its o the i%%o$&'e, 0 The ddition' &eneft is tht t the i'"re o the de&tor to *+ the *rinci*' o&'i#tion the creditor %+ h$e the *ro*ert+ s"&ect o ntichresis orec'osed EASBRE  ALICATIN  RBITS T INTEREST AND RINCIAL 0 "st &e **rised t their ct"' %r/et $'"e t the ti%e o **'iction R  CNTRACT 0 The %o"nt o the *rinci*' nd interest sh'' &e s*ecifed in ritin# 0 therise the contrct is $oid DEABLT RBLES T E LLED (TAFE NTE S THAT 6B ILL FN HEN T T BT  THE RBLES) 1, The creditor d$nces or the t.es chr#es s e'' s the necessr+ e.*enses or the *reser$tion o the *ro*ert+ 2, The ' "ses the ter% Gd$nces s the r"its o the i%%o$&'e %+ &e **'ied to the e.*enses nd chr#es, I the creditor doesn@t nt to d$nce he %+ "st s"rrender the i%%o$&'e to the de&tor 3, The de&tor %+ not rec!"ire the eno+%ent o the thin# "nti' "'' *+%ent o the o&'i#tion, 5, The creditor doesn@t c!"ire onershi* o the i%%o$&'e or non*+%ent o the de&t ithin the *eriod #reed "*on, E$er+ sti*"'tion to the contrr+ is $oid, The creditor %+ *etition the co"rt to orec'ose the *ro*ert+,

%es"re o s"ch **'iction, (Art, 2133 CC)

5hat are the obligations of the creditor4 1,) The creditor "n'ess there is  sti*"'tion to the contrr+ is o&'i#ed to *+ the t .es nd chr#es "*on the estte, 2,) He is 'so &o"nd to &er the e.*enses necessr+ or its *reser$tion nd re*ir,  The s"%s s*ent or the *"r*oses stted in this rtic'e sh'' &e ded"cted ro% the r"its, (Art, 213; CC) 3,) To **'+ the r"its recei$ed or the *+%ent o the o"tstndin# interest i n+ nd thereter to the *rinci*' o  his credit,

ow can the creditor be e'empted from the obligations imposed by Art. 213&, 4  The creditor %+ e.e%*t hi%se' ro% the to o&'i#tions i%*osed &+ Art, 213; &+ co%*e''in# the de&tor to enter #in "*on the eno+%ent o the *ro*ert+ e.ce*t hen there is  sti*"'tion to the contrr+, (Art, 213> CC)

 THERE IS SSIILIT6 T HAE ALTERNATIE ARRANEENTS R RECLSBRE, haracteristics of antichresis

an the debtor reacquire the en*oyment of the immovable4

 The de&tor cnnot rec!"ire the eno+%ent o the i%%o$&'e itho"t frst h$in# tot''+ *id ht he oes the

No, His *ossession o the *ro*ert+ is not i n the conce*t o n oner &"t t ht o  %ere ho'der d"rin# the e.istence o 

creditor,

the contrct (Ra%ire& vs. 'ort o) Appeals, ".R. No. *-8185, Septe%ber 24, 1986$.

"t the 'tter in order to e.e%*t hi%se' ro% the o&'i#tions i%*osed "*on hi% &+ the *recedin# rtic'e %+

Antichresis vs. contract of sale with a right of repurchase

'+s co%*e' the de&tor to enter #in "*on the eno+%ent o the *ro*ert+ e.ce*t hen there is  sti*"'tion to

1) Antichresis is n ccessor+ contrct heres s'e ith ri#ht o re*"rchse is  *rinci*' nd inde*endent

the contrr+, (Art, 213> CC)

contrct, 2) In the frst there is no trnser o the tit'e o$er the *ro*ert+ ro% the de&torto the creditor heres in the second

 The *ro*ert+ de'i$ered stnds s  sec"rit+ or the *+%ent o the o&'i#tion othe de&tor in ntichresis, Hence the de&tor cnnot de%nd its ret"rn "nti' the de&t is tot''+ *id,

there is  trnser o the tit'e o$er the *ro*ert+ ro% the $endor  retro to the $endee  retro 'tho"#h condition', 3) In the frst i the de&tor i's to *+ his de&t t he creditor cnnot **ro*rite the *ro*ert+ or dis*ose o it heres in the second s soon s there is  conso'idtion o tit'e in the $endee  retro he %+ dis*ose o it s &so'"te

 The de&tor cn on'+ de%nd the ret"rn o the *ro*ert+ ter h$in# "''+ *id his o&'i#tions to the creditor, It is not

oner,

ir or the creditor to re#in the *ossession o the *ro*ert+ hen his de&t hs not &een "''+ *id, Bnti' there is "''

5) In the frst i the de&tor i's to *+ his de&t ithin the ti%e #reed "*on the creditor does not c!"ire the

*+%ent o the o&'i#tion the *ro*ert+ sh'' stnd s sec"rit+ thereor, (c*in'c $s, "tierre= Re*ide No, 1?;5

onershi* o the *ro*ert+ heres in the second i the $endor  retro does not redee% the *ro*ert+ ithin the ti%e

Se*te%&er 2: 1922 53 hi' :)

#reed "*on the $endee  retro irre$oc&'+ c!"ires &so'"te onershi* thereo, Antichresis vs. pledge 1) Antichresis is  consens"' contrct heres *'ed#e is  re' contrct,

6ay the creditor acquire ownership of the real estate for non-payment of debt4  The creditor does not c!"ire the onershi* o the re' estte or non-*+%ent o the de&t ithin the *eriod #reed "*on, E$er+ sti*"'tion to the contrr+ sh'' &e $oid, (A rt, 213 CC)

2) In the frst the s"&ect %tter is  re' *ro*ert+ heres in the second the s"&ect %tter is  *erson' *ro*ert+, 3) In the frst the re!"ire%ent tht the contrct %"st &e in ritin# is essenti' or $'idit+ heres in the second the re!"ire%ent tht the contct %"st &e in *"&'ic instr"%ent is %ere'+ or the *"r*ose o &indin# third *ersons, 5) In the frst t he orec'os"re in cse o non-*+%ent o de&t is s  r"'e "dici' 'tho"#h the *rties %+ #ree to

5hat is the remedy of the creditor in case of non-payment of his credit4

%/e it e.tr"dici' heres in the second the s'e in cse o non-*+%ent o the de&t is '+s e.tr"dici',

 The creditor %+ *etition the co"rt or the *+%ent o the de&t or the s'e o there' *ro*ert+, In this cse the R"'es o Co"rt on the orec'os"re o %ort##es sh'' **'+, (Art, 213 CC)

Antichresis vs. real estate mortgage 1) In ntichresis the creditor c!"ires the ri#ht to recei$e the r"its o the *ro*ert+ &"t ith the o&'i#tion to

1, Action or co''ection

**'+ the% to the *+%ent o the interestnd thereter

2, etition or the *"&'ic s'e o the *ro*ert+

estte %ort##e the creditor does not c!"ire s"ch ri#ht,

to the *rinci*' o his credit heres in re'

2) In the frst the creditor s  r"'e is in *ossession o the *ro*ert+ heres in the second the de&tor is '+s in /nterest be compensated with the fruits

*ossession o the *ro*ert+,

 The contrctin# *rties %+ sti*"'te tht the interest "*on the de&t &e co%*ensted ith the r"its o the *ro*ert+

3) In the frst the re!"ire%ent tht the contrct %"st &e in ritin# is essenti' or $'idit+ heres in the second

hich is the o&ect o the ntichresis *ro$ided tht i the $'"e o the r"its sho"'d e.ceed the %o"nt

the re!"ire%ent tht the contct %"st &e re#istered in the Re#istr+ o ro*ert+ is %ere'+ or the *"r*ose o &indin#

ofnterest ''oed &+ the 's #inst "s"r+ the e.cess sh'' &e **'ied to the *rinci*', (Art, 213? CC)

third *ersons, 5) In the frst there is n o&'i#tion o the creditor to *+ t.es nd chr#es "*on the *ro*ert+ s e'' s the

/s prescription as a mode of acquiring ownership available to the creditor in antichresis4

e.*enses necessr+ or its *reser$tion nd re*ir heres in the second s"ch o&'i#tion is not i%*osed "*on the creditor,

;) In the frst orec'os"re in cse o non-*+%ent o de&ts is  r"'e "dici' 'tho"#h the *rties %+ #ree to %/e

It is s"&%itted tht the contrct in this cse is   t+*e o e!"it&'e %ort##e &ec"se 'tho"#h it 'c/s so%e o the

it e.tr-"dici' heres in the second the orec'os"re %+ &e "dici' or e.tr-"dici' t the o*tion o the creditor,

or%'ities re!"ired &+ ' ne$erthe'ess it shos the intention o the *rties to chr#e re' *ro*ert+ s sec"rit+ or the *+%ent o  de&t nd contins nothin# tht is contrr+ to ' (Art, 1>:2 CC), Strict'+ s*e/in# it cnnot &e

A obtains a loan of 7& from B and delivers to the latter a piece of coconut land as security for the

considered  contrct o ntichresis &ec"se it 'c/s the re!"isite re#rdin# the o&'i#tion o the creditor to **'+ the

payment of the loan. /n the deed e'ecuted, A agreed that B would avail of the fruits of the land during

r"its recei$ed &+ hi% to the *+%ent o the interest i oin# nd thereter to the *rinci*' o his credit, (Art, 1232

the time that the loan remains unpaid, without saying that the value of said fruits should be applied to

CC) In s*ite o the ct tht it is  t+*e o e!"it&'e %ort##e here the %ort##ee is in *ossession it hs &een he'd

the interest or the capital of the loan. 5hat is the nature of the contract between the parties4

&+ the S"*re%e Co"rt hoe$er tht the ri#hts nd o&'i#tions o the *rties re si%i'r nd in %+ res*ect identic' ith those in  contrct o ntichresis,