Marguerite holds a usufruct over a duplex in New Orleans. She leases both units to tenants and collects rent each month. Under the Louisiana Civil Code, how should the rental income be treated?
Correct Answer
C) The rental income belongs to Marguerite as civil fruits of the property she holds in usufruct
Under Louisiana Civil Code Article 551, fruits of the property — including civil fruits such as rents, interest, and revenues — belong to the usufructuary during the period of the usufruct. Because Marguerite holds the usufruct, she is entitled to collect and keep all rental income generated by the duplex. This is one of the core economic benefits of holding a usufruct.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
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