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1162). In addition, the usufructuary is obliged to leave such quantity of the produce of the property, in particular seeds, hay and fertilisers as is required for an orderly cultivation of the property until the next harvest. However, to the extent that he/she had not received such items at the inception of the usufruct, he/she shall have a claim against the nude owner for compensation in respect of the items he leaves on the land (Civil Code, art. 1163).

The usufructuary has the right to collect the fruits of the property, including civil fruits such as the proceeds of a lease entered into by him/ her (Civil Code, art. 961). Where the usufruct comes to an end during the term of the lease, certain provisions on lease are applied by analogy (Civil Code, art. 1164). These provisions (Civil Code, arts. 614–16 and 618) deal with the continuation of the lease as well as the prepayment, assignment or attachment of the relevant rent when an alienation of the leased land takes place during the term of the lease.82 The only lease that will survive the expiry of the usufruct will be a lease prepared in a deed which bears a certified date (Civil Code, art. 614).83 In such an event the nude owner will, by analogy, be subrogated to the rights and obligations flowing from the lease subject to any agreement to the contrary in the lease.

Hungary

On the basis of a lease, the tenant may use the property in a proper manner and in a way prescribed by the contract (Civil Code, § 425(1)). Under an income-producing lease, the tenant can use the property and collect its natural and civil fruits according to the rules of ordinary management (Civil Code, § 453). The concepts of proper use and ordinary management certainly do not cover the cutting of fruit trees, decorative trees or shrubs, but will cover the cutting of plantations for timber if they are cut regularly according to the rules of ordinary management. By analogy to usufruct, the principle of ordinary management also applies to the opening of mines or quarries and the working of existing mines or quarries.

Again, Civil Code, § 125(2), pertaining to usufruct, applies by analogy to income-producing leases. The tenant will not be allowed to harvest standing crops on termination of the lease, but can claim a portion of the fruit in kind corresponding with his/her labour used and expenses incurred in the production of the crop.

82 See Case 2. 83 Balis, Property, p. 374.

The tenant (B) is only allowed to sub-let the farm under certain conditions and with the permission of the landlord.84 If the farm is sub-let, the tenant is entitled to the proceeds resulting from the sublease. The sub-let of the farm does not create a legal relationship between the principal landlord and the sub-tenant. Hence, if the principal lease expires six months before maturity of the sub-lease, while the proceeds of the latter become due on an annual basis, the principal landlord will not be entitled to the rent of the sub-lease, nor will he/she be obliged to continue the lease. At the same time, the sub-landlord will breach the contract concluded with the sub-tenant since the sublease is terminated before its term expired. Accordingly, the subtenant may terminate the sub-lease as a result of the tenant’s breach of contract and claim damages.

The usufructuary and the usuary are entitled to possess and use the property and to collect its fruits. They must, however, exercise their rights according to the standards of ordinary management. Accordingly, the usufructuary and the usuary are not entitled to cut fruit trees, decorative trees or shrubs. They may, however, fell plantations for timber if the regular cutting of the plantation is in accordance with ordinary management and the custom of the locality.

As regards mines and quarries, the Civil Code, § 96 provides that ownership of the land does not cover underground resources or natural sources of energy, which are exclusively state property (Civil Code, § 172(1)). Hence, neither the usufructuary nor the usuary is entitled to open new mines on the property without a concession from the State. Since the usufructuary must exercise his/her right according to the principle of ordinary management, he/she will not be allowed to apply for a concession from the State to open new mines or quarries, but will be allowed to work existing mines.

The usufructuary will not be allowed to harvest standing crops after the termination of the usufruct, but under Civil Code, §125(2) he/she is allowed to claim a portion of the fruit in kind (Civil Code, § 125(2)), corresponding to the labour used and expenses incurred in the production of the crop. Consequently, the usufructuary is entitled to a portion of the harvest up to the extent of his/her labour and the money invested in the cultivation of the crop. Since the usuary is not entitled to collect fruits except for domestic consumption, he/she will not be allowed to do any of the above.

84 See Case 9.

Under a usufruct, natural and civil fruits belong to the usufructuary for the duration of his/her right (Civil Code, art. 984). This means that the usufructuary may cultivate the land for the production of fruits and that all fruits, however produced, belong to him/her. However, the usufructuary cannot change the economic destination of the land and must return the property without impairment of its substance in the same condition as at the inception of the usufruct.

If groves or rows of trees suitable for periodic trimming for firewood or with tall trunks destined for the production of wood are part of the property included in the usufruct, the usufructuary can proceed with normal cutting, taking care to maintain the original density of the groves or rows, and providing, if necessary, for their restoration. In respect of the manner, extent, sequence and time of cutting, the usufructuary is bound to conform to the usual practice of the region as well as to statutes and regulations applicable to forests (Civil Code, art. 989). Although the usufructuary is in principle not allowed to remove fruit or ornamental trees, he/she becomes the owner of trees that perish, are uprooted or damaged by accident. In such a case the usufructuary is, however, under an obligation to replace the trees (Civil Code, art. 991).

In Italy, mines are part of the patrimony of the State (Civil Code, art. 826). The usufructuary can, however, obtain a concession for mining exploration and operation on the land. In such a case, he will be liable to compensate the owner for the damage on expiry of the usufruct (Civil Code, art. 987). The usufructuary is allowed to exploit any quarries already opened and in operation at the beginning of the usufruct, but he does not have the power to open new quarries without the consent of the owner (Civil Code, art. 987). Provided that the quarries are open and in operation at the beginning of the usufruct, the usufructuary can exploit them more intensively than before.88

The usufructuary can let the land (Civil Code, art. 999). Leases concluded by the usufructuary which have not come to an end at the time the usufruct expires continue for the term agreed upon, provided that the lease has been created with a certified date prior to the termination of the usufruct. Such leases are, however, not allowed to persist for more than five years after the termination of the usufruct.

Since ‘natural and civil fruits belong to the usufructuary for the duration of his/her right’ (Civil Code, art. 984), and ‘civil fruits are those that are derived from the thing as compensation for the

88 See Cass. Civ. 30/07/1951 n. 2258.