LAW REPORT: VALIDITY OF AN USUFRUCT FOR NINETY YEARS IN FAVOR OF JOINT-STOCK COMPANY IN CHILEAN LAW

This law report provides an opinion on the following issues: the scope of application of the prohibition established in the final paragraph of article 770 of the Chilean Civil Code to establish usufructs that exceed 30 years; and the possibility of constituting a usufruct for a company for a period of 90 years over real estate. It is concluded that said prohibition established in article 770 is only applicable to corporations and foundations, and not for a joint-stock company; further, that a usufruct constituted for a period of 90 years in favor of a stock company over a real estate is perfectly valid in accordance to Chilean law, especially given that in our law it is possible that there are usufructs for more than 90 years, as well as other figures that allow the use and/or enjoyment of a thing to be transferred for 90 or more years and that have been used in practice without their terms having been considered excessive.