Explanation of Article 696
The article clarified the most prominent characteristic of the rights of use and habitation, which is that these rights cannot be transferred to others, whether for compensation such as leasing, or without compensation such as lending. The reason for the non-transferability is that these rights are established to meet the needs of the beneficiary and their family only, not others. For example, if the owner of a car grants someone the right to use it, the holder of the right of use cannot transfer this right to others, and any transfer issued by the holder of the right of use or habitation is void because it is an unlawful act on a subject that cannot be transferred.
The article also clarified that the rights of use and habitation can be transferred in two cases. The first case is if there is an explicit condition in the deed establishing the right of use or habitation that allows the holder of the right to transfer it to others. In this case, the holder of the right may transfer the right, observing the limits mentioned in the condition. For example, if the owner of the item allows the holder of the right to transfer the right to others without compensation, they cannot transfer it for compensation. If they are allowed to transfer it for a period not exceeding a month, they cannot exceed that period.
It is noted that the article stipulated that the condition allowing the transfer must be explicit. The implication of the term "explicit" is that if the condition is not explicit, it is not considered, even if the circumstances suggest it. The condition allowing the transfer does not need to be at the beginning of the right of use or habitation. For instance, if the owner, during the right of habitation, permits the holder of the right to transfer it to others, the condition is valid because it becomes part of the deed establishing the right.
The second case is if there is a necessity that requires the transfer of the right of use or habitation to alleviate hardship and embarrassment for the holder of the right and their family. The right of habitation may be transferred if there are strong justifications for it, such as if someone bequeaths a right of habitation to a person and their family, and then the house becomes severely cramped for them, or if the holder of the right moves to another country and does not have sufficient financial means to provide alternative housing.
Related To
Article 696
The right of use and the right of habitation may not be assigned to a third party, except pursuant to an explicit condition set out in the document establishing the right, or when necessary.