Conditions and Limitations on the Use of Another Person’s Property
Usufruct is a right granted for the lifetime of an individual or for a defined period not exceeding the person’s lifetime, allowing the usufructuary to use another person’s property and to collect its fruits, products, and income.
Usufruct may be established for the benefit of one or several persons (either jointly or with individual shares). Any non-consumable movable or immovable object subject to ownership may be the object of a usufruct.
The usufructuary has the right to use the object as specified, or, if not specified, as a diligent owner would according to its intended use. The fruits, products, and income derived from the usufruct object belong to the usufructuary.
The usufructuary is not allowed to transform or otherwise significantly alter the object of usufruct without the owner’s permission, or – in cases established by Lithuanian law – without a court decision. The usufructuary is obligated to maintain and repair the object of usufruct as needed to ensure its proper condition. If the object is damaged, requires exceptional repairs, faces unforeseen dangers, or if third parties claim rights to it, the usufructuary must immediately notify the owner.
The usufructuary is liable for the deterioration of the object due to improper use. If the usufructuary fails to fulfill essential obligations, the court in the Republic of Lithuania may appoint an administrator upon the owner’s request.
Usufruct ends:
- By renunciation;
- Upon the death of the usufructuary, dissolution of a legal entity holding the usufruct, or after thirty years for legal entities;
- When the term expires or a dissolving condition occurs;
- When the usufructuary becomes the owner of the object;
- Upon the destruction of the object;
- Due to the object’s deterioration;
- By the expiry of the limitation period;
- By court decision.
After the usufruct ends, the usufructuary must return the object in the condition it was received, considering normal wear and tear, unless otherwise agreed upon. The usufructuary may retain improvements if they can be separated and do not damage the object. Otherwise, the usufructuary may claim reimbursement for improvements – but only up to the increase in value – and only if the improvements were made with the owner’s consent.