2009 beda property-memaid

7/29/2019 2009 Beda Property-Memaid

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42 |2009 CENTRALIZED BAR OPERATIONS San Beda College ofLaw

PROPERTY - All things which are, or may be, theobject of appropriation (Art. 414, NCC)

Thing and Property Distinguished

THING PROPERTY

includes bothappropriable and non-appropriable objects

things which aresusceptible of appropriation andwhich are alreadypossessed and found

in the possession ofman

Note: Strictly speaking, thing is NOTsynonymous with property. HOWEVER, theNew Civil Code uses these termsinterchangeably.

Requisites/Characteristics: (USA)

1. utility ability to serve as a means to satisfyhuman needs

2. substantivity or individuality separate andautonomous existence

3. appropriability even if not yet actuallyappropriated (Reyes-Puno, p.1)

CLASSIFICATION OF PROPERTY

Kinds of Properties:

1. Immovable or real (Art. 415)2. Movable or personal (Arts. 416, 417)

The human body, whether alive or dead, isneither real nor personal property, for it is noteven property at all, in that it generally cannot

be appropriated. Under certain conditions, thebody of a person or parts thereof may be thesubject matter of a transaction (See RA No.349, RA No. 7170, RA No. 7719).

Parties to a contract may treat as personalproperty that which by nature is real property;and it is a familiar phenomenon to see thingsclassed as real property for purposes oftaxation which on general principle might beconsidered personal property (Standard OilCo. vs. Jaranillo GR No. 20329, March 16,1923).

IMMOVABLE PROPERTIES

Categories: (NIDA)

1. Real by nature it cannot be carried fromplace to place (pars. 1 & 8, Art. 415)

2. Real by incorporation attached to animmovable in a fixed manner to be an integralpart thereof(pars. 13 Art. 415)

3. Real by destination placed in an immovablefor the utility it gives to the activity carried

thereon (pars. 47 and 9 Art. 415)4. Real by analogy it is so classified byexpress provision of law (par. 10, Art. 415)

Types of Immovable Properties (Art. 415)1. Land, buildings, roads and constructions

of all kinds adhered to the soil

Where a building is sold to be demolishedimmediately, it is to be regarded asmovable because the subject matter ofthe contract is really the materials thereof.

Buildings are immovables byincorporation. Hence, their adherence to

EXECUTIVE COMMITTEE:HERBERT CALVIN ABUGAN overall chair and chair academics operations, MANOLO ADEL SANTOS chair hoteloperations, GRACE SARAH TRIA vice chair for operations, JUAN CARLOS NUESTRO vice chair for academics, MAEANGELIE ETANG vice chair for secretariat, KRISTINE ANNABELLEE HIPOS vice chair for finance, EIREENE XINA ACOSTAvice chair for edp, ACE JELLO CONCEPCION vice chair for logistics

CIVIL LAW:FRANCESCA LOURDES SENGA subject chair, SHEENA MARIE ABELLA assistant subject chair, ACE ARVIN GANDO edp,FRANCESCA LOURDES SENGA persons and family relations, CRISCELYN CARAYUGAN property, MA. PELISA CORAZONPARIDO and MARY IVY ANNE GALANG wills and succession, MARIA DANIAFLOR BERAMO and COLLEEN INFANTEobligations and contracts, MARY IVY ANNE GALANG sales and lease, EVA CHRISTINE NAPARAN partnership, agency andtrust, KATHERINE ANN ASILO credit transactions, SHEENA MARIE ABELLA torts and damages, JAN PEARL PORTUGALland titles and deeds, JAN MANUELLE REYES conflict of laws

MEMBERS:Aldren Abrigo, Lloyd Elgene Apostol, Joanna Arellano, Jonathan Bajeta, Paul Isaac Barrameda, Barbara Jeniffer

Bautista, Arlene Borja, Leana BlascoKeith Francis Briones, Angelita Calalang, Uelah Cangco, Kristine Paula Chu, Benedicto Claravall, Diane Therese Dauz,Herbert Davis, Riyah Lalaine Domingo, Ana Ofloda delos Reyes, Ramona Di ozo, Clarissa Enano-Caenano, Carla Esplana, Diana Fajardo, Leoponville Ndota Wambui Gitau, Kristine Carmela Gonzales, Daisy Joy Jalova, Roehl Joson,Jackie Lamug, Flocerfina Lloren, Jerome Matas, Herbert Matienzo, Charlene Clara, Mendoza, Kristel Concepcion Ona,Joanna Marie Paguio, Patricia Salang, Christine Santos, Rio Rose Santos, Charlotte Sayson, Mary Meilani Suyat, JezreelCaridad Taguba, Florence Tolentino, Philip Torres, Gilda Villanueva, Joan Grace Wilson, Joshua Villena, Raul Canon,Deogracias Natividad


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the land must be permanent andsubstantial. Portable structures are notimmovables.

A building is an immovable even if noterected by the owner of the land. Theonly criterion is union or incorporationwith the soil. (Ladera vs. Hodges CA-GRNo. 8027-R, September 23, 1952).

A building is real property thus, its sale asannotated in the Chattel MortgageRegistry cannot be given the legal effectof registration in the Registry of RealProperty (Leung Yee vs. StrongMachinery Co. GR No. L-11658 February15, 1918).

2. Trees, plants, and growing fruits When trees are cut or uprooted,

incorporation ceases and they becomemovables; timber is still integral part of animmovable property when it constitutesthe natural product of the latter.

For purposes of attachment, execution,and the Chattel Mortgage Law, growingcrops have the nature of personalproperty (Sibal vs. Valdez GR No. L-27352, August 4, 1927).

3. Everything attached to an immovable in afixed manner

The attachment need not be made by theowner.

The breakage or injury, in case ofseparation, must be substantial.

The fact that the machineries were boltedor cemented on real property mortgageddoes not make them ipso factoimmovable under Art. 415 (3) and (5) asthe parties intent has to be looked into.Even if the properties appear to beimmovable by nature, nothing prohibits

the parties from treating them as chattelsto secure an obligation under the principleof estoppel (Tsai vs. CA, GR No. 120098,October 2, 2001).

4. Statues, reliefs, paintings, or other objectsfor use or ornamentationRequisites:a. Placed by the owner or by a tenant as

agent of the ownerb. With the intention of attaching them

permanently, even if adherence will notinvolve breakage or injury

5. Machinery, receptacles, instruments, orimplements for an industry or worksRequisites:

a. The machinery, etc. must be placed bythe owner of the tenement or his agent

b. The industry or works must be carried on

in a building or on a piece of landc. The machinery, etc. must tend directly to

meet the needs of the said industry orworks

Movable equipments, to be immobilized incontemplation of law, must be essential andprincipal elements of an industry or works(Mindanao Bus Co. vs. City Assessor andTreasurer GR No. L-17870, September 29,1962).

Machinery, movable in nature, becomesimmobilized when placed on a plant by the

owner of the property but not so when placedby a tenant, usufructuary or a person havingonly a temporary right unless such personacted as agent of the owner (Davao SawmillCo. vs. Castillo GR No. 40411, August 7,1935).

There are 2 views on the effect of the temporaryseparation of movables from the immovables towhich they are attached:

a. They continue to be regarded asimmovables.

b. Fact of separation determines thecondition of the object (supported byParas and Tolentino)

If the machine is still in the building, but is nolonger used in the industry, the machinereverts to the condition of a chattel. On theother hand, if still needed for the industry, butseparated from the tenement temporarily, theproperty continues to be an immovable(Paras, p.20).

6. Animal houses, pigeon houses, beehives,

fish ponds, etc.Requisites:a. Placed by the owner, or by a tenant as

agent of the owner, with the intention ofpermanent attachment

b. Forms a permanent part of theimmovable

7. Fertilizer

Actually used means that it has beenspread over the land.

8. Mines, quarries and slag dumps

They are considered as realty only if thematter remains unsevered from the soil.Once severed, they become personalty.

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San Beda College of Law MEMORY AID IN CIVIL LAW| 44

9. Docks and Structures

Vessels are considered personal propertyunder the Civil Law as well as under thecommon law, although occasionally

referred to as a peculiar kind of personalproperty. (Phil. Refining Co., Inc. vs. JarqueGR No. 41506, March 25, 1935).

10. Contracts for Public works, and servitudesand other real rights

A personal right is always regarded aspersonal property. The exception is in thecase of contracts for public works whichare considered as real property.

MOVABLE PROPERTIES

Tests:

1. By exclusion: all not included in Art. 4152. By description: an object is movable if:

a. It can be transported from placeto place;b. Without substantial injury to theimmovable to which it is attached.

3. Real Property considered as personalproperty by special provision of law.

Kinds of Movable Properties (ASFTOS):

1. Those movables susceptible of appropriationwhich are not included in the preceding article

2. Real property which by any special provision

of law is considered personalty3. Forces of nature which are brought under

control by science

4. In general, all things which can betransported from place to place withoutimpairment of the real property to which theyare fixed (Art. 416)

5. Obligations and actions which have for theirobject movables or demandable sums

6. Shares of agricultural, commercial andindustrial entities, although they may havereal estate (Art. 417)

Classifications of Movables:1. By Nature:

a. Consumable - cannot be usedaccording to its nature without it beingconsumed.

b. Non-consumable - any other kindof movable property (Art. 418).

2. By Intention:

a. Fungible - replaceable by anequal quality and quantity, either bynature of things or agreement.

b. Non-fungibles - irreplaceable

because identical objects must bereturned.

Note: The New Civil Code, in many instances,uses the terms consumable and fungibleinterchangeably.PROPERTY IN RELATION TO WHOM IT

BELONGS (Arts. 419425)Property is either of:1. public dominion2. private ownership

I. Property of Public Dominion

Concept: It does not import the idea ofownership. It is not owned by the state but simplyunder its jurisdiction and administration for thecollective enjoyment of people. The ownership ofsuch properties is in the social group, whethernational, provincial or municipal.

Purpose: To serve the citizens and not the stateas a juridical person.

Kinds:

1. For public use may be used by anybody2. For public service may be used only by

authorized persons3. For the development of national wealth

The charging of fees to the public doesnot determine the character of the property,whether it is of public dominion or not. Art.

420 defines property of public dominion asone intended for public use. Even if thegovernment collects toll fees, the road is stillintended for public use if anyone can use itunder the same terms and conditions as therest of the public (MIIA vs. CA, GR No.155650, July 20, 2006).

Characteristics: (OI-PAE)

1. Outside the commerce of man2. Inalienable, but when it is no longer needed

for public use or service, it may be declaredpatrimonial property.

3. Cannot be acquired by prescription4. Not subject to attachment or execution5. Cannot be burdened with easements

Note: They CANNOT be registered under the landregistration law and be the subject of a Torrenstitle. The character of public property is notaffected by possession or even a Torrens Title infavor of private persons (Palanca vs.Commonwealth, GR No. 46373, Jan. 29, 1940).

As property of public dominion, the Roppongilot is outside the commerce of man. The fact

that it has not been used for a long time doesnot automatically convert it to patrimonialproperty. The conversion happens only if theabandonment is definite and upon a formal


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declaration on the part of the government towithdraw it from public use (Laurel vs. GarciaGR No. 92013, July 25, 1990).

The Executive and possibly the LegislativeDepartments have the authority and thepower to make the declaration (Natividad vs.Director of Lands 37 O.G. 2906).

II. Property of Private Ownership

Kinds:

1. Property owned by the state and its politicalsubdivisions in their private capacity and isknown as patrimonial property (Art. 421-424)

2. Property belonging to private persons (Art.425)

Patrimonial Property of the State1. Property of the State owned in a private or

proprietary capacity

2. Property of public dominion, when no longerintended for public use or public service, shallform part of the patrimonial property

3. The state has the same rights over this kindof property as a private individual in relationto his own private property

Property of Political Subdivisions

1. Property for public use consist of roads,streets, squares, fountains, public waters,promenades and public works for publicservice paid for by the LGUs.Note: The enumeration in Art. 424 are notexclusive.

2. Patrimonial Property all other propertiespossessed by LGUs without prejudice toprovisions of special laws

Note: Arts. 423 and 424 speak of property forpublic use, indicating that property for public

service is patrimonial. However, the SupremeCourt, in Province of Zamboanga Del Norte vs.City of Zamboanga (GR No. L-23922, June 30,1969), categorically stated that this court is notinclined to hold that municipal property held anddevoted to public service is in the same categoryas ordinary private property. Theclassification ofmunicipal property devoted for distinctlygovernmental purposes as public, under the Lawof Municipal Corporations, should prevail over theCivil Code in this particular case. The Law ofMunicipal Corporations was considered as aspecial law in the context of Art. 424 of the NCC.

Properties of public dominion devoted topublic use are outside the commerce of menand cannot be disposed of or leased by theLGU to private persons. LGUs have no

authority to control or regulate the use ofpublic properties unless specific authority isvested upon them by Congress (Macasiano

vs. Diokno GR N. 97764, August 10, 1992).

The rights to enjoy, dispose, and recover a thingwithout further limitations than those establishedby law or the will of the owner.

SUBJECT-MATTER (Art. 427)1. thing - usually refer to corporeal property2. right - whether real or personal, are classified

as incorporeal property

RIGHTS INCLUDED:1. Right to enjoy: (PUFA)

a. to possess (jus possidendi)b. to use (jus utendi)c. to the fruits (jus fruendi) andaccessions

d. to abuse (jus abutendi)2. Right to dispose: (DATE)

a. to destroyb. to alienatec. to transformd. to encumber

3. Right to vindicate: (PR)a. pursuitb. recovery

4. Right to exclude: (ER)

1. to enclose, fence and delimit2. to repel intrusions even with force

CHARACTERISTICS: (GEEPI)

1. General the right to make use of all thepossibilities or utility of the thing owned,except those attached to other real rightsexisting thereon.

2.Elastic power/s may be reduced andthereafter automatically recovered upon thecessation of the limiting rights.

3. Exclusive there can only be one ownershipover a thing at a time. There may be two ormore owners but only one ownership.

4. Perpetuity ownership lasts as long as thething exists. It cannot be extinguished by nonuser but only by adverse possession.

5. Independence it exists without necessity ofany other right.

LIMITATIONS: (GOSIP)

1. General limitations imposed by the State for

its benefit2. Limitations imposed by the owner himself3. Specific limitations imposed by law

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OWNERSHIP


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4. Inherent limitations arising from conflict withother rights

5. Limitations imposed by the party transmittingthe property either by contract or by will

DE FACTOCASE OF EMINENT DOMAIN

Expropriation resulting from the actions ofnature as in a case where land becomes partof the sea. The owner loses his property infavor of the state without any compensation.

When the sea moves towards the estate andthe tide invades it, the invaded propertybecomes foreshore land and passes to therealm of the public domain (Republic vs. CA,GR No. 100709, November 14, 1997).

PRINCIPLE OF SELF-HELP (Art. 429)

The owner or lawful possessor of a thing hasthe right to exclude any person from theenjoyment and disposal of the property by theuse of such force as may be necessary torepel or prevent actual or threatened unlawfulphysical invasion or usurpation of hisproperty.Requisites: (RONA)

1. reasonable force2. owner or lawful possessor is the person

who will exercise

3. no delay in ones exercise

4. actual or threatened physical invasion orusurpation

DOCTRINE OF INCOMPLETE PRIVILEGE ORSTATE OF NECESSITY (Art. 432)General rule: A person cannot interfere with theright of ownership of another.

Exception: Doctrine of Incomplete Privilege orState of Necessity

Requisites: (ID)

1. Interference necessary to avert animminent and threatened danger

2. Damage to another much greater thandamage to property

LEGAL REMEDIES TO RECOVERPOSSESSION OF ONES PROPERTY:1. Personal Property

Replevin a remedy for the recovery ofpossession of personal property which isgoverned by Rule 60 of the Rules of Court

2. Real Propertya. Accion interdictal: A summary action to

recover physical or material possessionof property.

It must be brought in the propermunicipal trial court or metropolitantrial court within one year from thetime the cause of action arises.

i. Forcible entry (detencion):An action for recoveryof material possession of real property when aperson originally in possession was deprivedthereof by force, intimidation, strategy, threat or

stealth.ii. Unlawful Detainer (desahuico): An action forrecovery of possession of any land or building bya landlord, vendor, vendee, or other personagainst whom the possession of the same wasunlawfully withheld after the expiration ortermination of the right to hold possession, byvirtue of any contract.

Forcible Entry and Unlawful DetainerDistinguished

FORCIBLE ENTRYUNLAWFULDETAINER

As to when possession became unlawful

Possession of thedefendant is unlawfulfrom the beginning as

he acquires possessionby force, intimidation,strategy, threat orstealth

Possession isinceptively lawful butbecomes illegal from

the time defendantunlawfully withholdspossession after theexpiration or termination of his rightthereto.

As to the necessity of demand

No previous demand forthe defendant to vacateis necessary

Demand isjurisdictional if theground is nonpayment of rentals orfailure to comply with

the lease contractAs to necessity of proof of prior physical

possession

Plaintiff must prove thathe was in prior physicalpossession of thepremises until he wasdeprived thereof by thedefendant

Plaintiff need not havebeen in prior physicalpossession

As to when the 1 year period is counted from

1 year period isgenerally counted from

the date of actual entryon the land

1 year period iscounted from the date

of last demand or lastletter of demand


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b. Accion publiciana: An ordinary civilproceeding to recover the better right ofpossession of property and is resorted to

when the dispossession has lasted formore than 1 year.

The issue involved is notpossession de facto but possessionde jure of realty independent of thetitle.

Must be brought in the properregional trial court within a period of10 years from the time the cause ofaction arises.

c. Accion reivindicatoria: An action torecover real property based onownership. The object is the recovery of

dominion over the property as owner. Must be brought in the properregional trial court within a period of10 years from the time the cause ofaction arises.

Requisites:i. The thing must be corporeal,

concrete, and determinateii. Proof of identity

iii. Proof of title (Reyes-Puno, p.24)

SURFACE RIGHTS (Art. 437)The owner of parcel of land is the owner of itssurface and everything under it.

Limitations:Horizontally: extends up to the boundariesVertically: extends below the surface and aboveit to the extent required by the economic interestof or utility to the owner, in relation to theexploitation that may be made of the propertyAirspace: the owner cannot complain of thereasonable requirements of aerial navigation

HIDDEN TREASURE (Arts. 438 & 439)

Any hidden or unknown deposit of money, jewelryor other precious objects, the lawful ownership ofwhich does not appear

General rule: It belongs to the owner of the land,building or other property on which it is found.

Exceptions: The finder is entitled to provided:1. Discovery was made on the property of

another, or of the state or any of its politicalsubdivisions;

2. The finding was made by chance;3. The finder is not a coowner of the property

where it is found;4. The finder is not a trespasser;5. The finder is not an agent of the landowner;

6. The finder is not married under the absolutecommunity or the conjugal partnership system(otherwise his share belongs to the

community).

It is necessary that no known owner appears.Hence, that money found in a library, whenthe books were delivered to the legatees in atestamentary proceeding, could not beconsidered a treasure because it was shownthat the library had been used by the testatorand that money consisted, in greater part, ofthis kind in circulation during the life of thetestator (1 Capistrano 394).

ACCESSION (Arts. 440 475)

The right by virtue of which the owner of a thingbecomes the owner of everything that is producedthereby or which is incorporated or attachedthereto, either naturally or artificially.

ACCESSORIES - things joined to or included withthe principal thing for the latters embellishment,better use, or completion

Classifications:

1. Accession Discreta the right pertaining tothe owner of a thing over everything producedthereby

Fruits - all periodical additions to a principalthing produced by forces inherent to the thingitself

Requisites:a. increase or addition to the originalthingb. at repeated intervalsc. by inherent forces

Kinds of Fruits

a. natural fruits spontaneousproducts of the soil, the young and otherproducts of animalsb. industrial fruits those producedby lands of any kind through cultivation orlaborc. civil fruits rents of buildings,price of leases or lands and the amountof perpetual or life annuities or othersimilar income

Bonus to planters for the riskundergone in mortgaging property is NOTa civil fruit of the mortgaged property

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(Bachrach Motor Co. vs. Talisay-SilayMilling Co. GR No. 35223, September 17,1931).

General rule: To the owner of the principalbelongs the natural, industrial, and civil fruit.Exceptions:If the thing is: (PULA)

a. in possession of a possessor ingood faith;

b. subject to a usufruct;c. leased or pledged; ord. in possession of an antichreticcreditor

General rule: Expenses of production,gathering and preservation (whether more orless than the value of the fruits) must be

borne by the receiver of the fruits.

Exception: The rule does NOT always applyto pending fruits.

2. Accession Continua the right pertaining tothe owner of a thing over everything that isincorporated or attached thereto eithernaturally or artificially; by external forces.

a. With respect to real propertyi. accession industrial

building, planting, sowing

ii. accession natural alluvium, avulsion, change of

course of rivers, formation ofislands

b. With respect topersonal propertyi. adjunction or conjunctionii. commixtion or confusioniii. specification

Basic Principles: (GONE BAD)

1. He who is in good faith may be heldresponsible but will not be penalized.

2. To the owner of a thing belongs the extension

or increase of such thing.3. Bad faith of one party neutralizes the bad

faith of the other.

4. There should be no unjust enrichment at theexpense of others.

5. Bad faith involves liability for damages.6. Accessory follows the principal.7. Accession exists only if the incorporation is

such that separation would either seriouslydamage the thing or diminish its value.

Right of Accession With Respect To Real

Property

Accession IndustrialTable of Rights and Obligations:

LANDOWNER(LO)

BUILDER,PLANTER,

SOWER (B,P,S)

OWNER OFTHE

MATERIALS(OM)

Good Faith

Acquireimprovementsand pay to B, P,S indemnity;subsidiarilyliable to ownerof materialsa. sell land to Bor P except ifthe value of theland isconsiderablymoreb. rent to S

(448, 546, 455)

Good Faith

Right of retention for necessary anduseful expensePay value of materials toowner of materials

Good Faith

Collect value ofmaterialsprimarily from B,P, S; subsidiarilyfrom land ownerif B, P, SinsolventRemove only if

without injury(455, 447)

Good FaithAcquireimprovementsand payindemnity to B,P, SA. Sell to B, Pexcept if thevalue of land isconsiderablymore, forcedleaseWithoutsubsidiaryliability for costof material

Good FaithRight of retention for necessary anduseful expensesKeep building,planting or sowing w/oindemnity toowner of materials andcollect damages(546, 449)

Bad FaithLose themwithout right toindemnity (449)

Good FaithOption to:Acquireimprovementw/o payingindemnity andcollectdamages, orDemolition orrestoration, andcollectdamages, or

Sell to B, P orrent to S, andcollect damagesPay necessaryexpenses to B,P, S (449, 450,451)

Bad FaithRecovernecessaryexpenses forpreservationLoseimprovementsw/o right toindemnity fromLO (452) unlessthe LO sellsland

Bad FaithRecover valuefrom B, P, S (asif both acted ingood faith)If B, P, Sacquiresimprovements,removematerials if w/oinjury (447)No action versus

LO

Bad Faith{Same as though all acted in good faith (453)}

Bad FaithAcquireimprovementsafter payingindemnity and

damages to B,P, SSubsidiarilyliable to owner

Good FaithRemoveimprovements inany eventBe indemnified

for damages

Good FaithRemovematerials if w/oinjuryCollect value of

materials,primarily from B,P, S; subsidiarilyfrom LO (447,


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of materials(454, 447, 455)

455)

Bad Faith

Acquireimprovementsafter indemnityto B, P, S;subsidiarilyliable to ownerof materialsa. Sell to B, Pexcept: if thevalue isconsiderablymoreb. Rent to S(453, 448, 546,

548, 455)

Bad Faith

Right of retention fornecessaryexpensesPay value of materials toowner of materials andpay himdamages (546,447)

Good Faith

Collect value ofmaterialsprimarily form B,P, S; subsidiarilyfrom LO2. Collectdamages3. If B, P, Sacquiresimprovementsremovematerials in anyevent (447, 455)

Good FaithOption to:Acquire w/opayingindemnity andcollect damagesSell to B, P andrent to S andcollect damagesDemolish or restore andcollect damagesPay necessaryexpenses to B,P, SSubsidiarilyliable to ownerof materials(449, 450, 451)

Bad FaithRecovernecessaryexpenses (452,443)Loseimprovementsw/o right of retention fromLO (452) unlessLO sells theland

Good FaithCollect value ofmaterials anddamages fromB, P, S andsubsidiarily fromLORemovematerials in anyevent if B, P, Sacquiresimprovements

Bad FaithAcquireimprovements &pay indemnity &damages to B,P, S (454,447)

Good FaithIndemnity fordamagesRemoveimprovements inany event(454,447)

Bad FaithNo indemnity;lose materials(449)

Article 448:

Application:

Applies only when the builder, planter orsower believes he has the right to build, plantor sow because he thinks he owns the land orbelieves himself to have a claim of title(Morales vs. CA, GR No. 126196, January28, 1998).

When the co-ownership is terminated by apartition and it appears that the house of anerstwhile co-owner has encroached upon aportion pertaining to another co-owner which

was however made in good faith, then theprovisions of Art. 448 should apply todetermine the respective rights of the parties

(Ignao vs. Intermediate Appellate Court GRNo. 72876, January 18, 1991).

Does not apply where ones interest in the

land is merely that of a holder such as a merelessee under a rental contract (Balucanag vs.Francisco GR No. L-33422, May 30, 1983),an agent, or a usufructuary (Macasaet vs.Macasaet GR No. 154391, September 30,2004).

The provision on indemnity in Art. 448 may beapplied by analogy considering that theprimary intent of the law is to avoid a state offorced coownership especially where theparties agree that Arts. 448 and 546 areapplicable and indemnity for theimprovements may be paid although they

differ as to the basis of the indemnity. It is thecurrent market value of the improvementswhich should be made the basis ofreimbursement to the builder in good faith(Pecson vs. CA, GR No. 94033, May 29,1995).

Options of the landowner:

The owner of the land shall have the right toappropriate as his own the building, plantingor sowing, after payment of the necessaryand useful expenses. The owner of the landmay also oblige the builder, planter or sowerto pay the price of the land. If the ownerchooses to sell his land, the builder, etc. mustpurchase the land; otherwise, the owner mayremove the improvements thereon. Thebuilder, etc. is not obliged to purchase theland if its value is considerablymore than thebuilding. In such case, the builder, etc. mustpay rent. If the parties cannot come to termsover the conditions of the lease, the courtmust fix the terms thereof. (Ballatan vs. CA,GR No. 125683, March 2, 1999).

The landowner may not refuse both to pay for

the building and to sell the land and insteadseek to compel the owner of the building toremove the building from the land. He isentitled to such removal ONLY when, afterhaving chosen to sell the land, the other partyfails to pay for said land (Ignacio vs. HilarioGR No. L-175, April 30, 1946).

Should no other arrangement be agreedupon, the owner of the land does notautomatically become the owner of theimprovement (Filipinas Colleges, Inc. vs.Timbang GR No. L-12812, September 29,1959).

Right to choose:

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It is theownerof the land who must exercisethe option because his right is older andbecause, by the principle of accession, he isentitled to the ownership of the accessory

(Bernardo vs. Bataclan GR No. 44606,November 28, 1938).

The so-called workable solution, as providedin the case of Grana vs. CA (GR No. L-49219, April 18, 1988) is one where the Courtorders the owner of the land to sell to thebuilder, etc. the part of the land intrudedupon, and thereby depriving him of his right tochoose, because it would be impractical tochoose the first alternative for the wholeimprovement might be rendered useless.

Accession natural

1. Alluvion or Alluvium(Art. 457-458)Increment which lands abutting riversgradually receive as a result of the current ofthe waters

Accretion - the process by which a riparianland gradually and imperceptibly receivesaddition made by the water to which the landis contiguous

Requisites of alluvion or accretion:

a. the deposit or accumulation of

soil or sediment must be gradual andimperceptible (increase must becomparatively little)b. the accretion must result from theeffects or action of the current of thewaterc. that the land where accretiontakes place is adjacent to the bank of theriver

Accretions belong to the riparianowners upon whose lands the alluvialdeposits were made (Agustin vs.Intermediate Appellate Court GR Nos.66075-76, July 5, 1990).

Reasons for the rule:a. To compensate the owner for losses which they may suffer by erosion.b. To compensate them for theburdens of legal easements, which areimposed upon themc. Because it is the owner of thecontiguous land who can utilize theincrement to the best advantage

d. Because this is the only feasiblesolution, since the previous owners canno longer be identified.

An alluvion is automaticallyowned by the riparian owner from themoment the soil deposit can be seen butthe additional area does not automatically

become registered land just because thelot which receives such accretion iscovered by a Torrens title. The riparianowner must register the additional area(Heirs of E. Navarro vs. IntermediateAppellate Court GR No. 68188, October13, 1997).

Failure to register the acquiredalluvial deposit by accretion subjects saidaccretion to acquisition thru prescriptionby third persons (Reynante vs. CA, GRNo. 95907, April 8, 1992).

A riparian owner cannot acquire

the addition to his land caused by specialworks (e.g., dikes) expressly intended byhim to bring about accretion (i.e., forreclamation purposes) and not to protecthis property from the destructive force ofthe waters of the river (Republic vs. CA,GR No. L-43105, August 31, 1984).

In the absence of evidence thatthe change in the course of the river wassudden, the presumption is that thechange was gradual and was caused byalluvium and erosion (Payatas-EstateImprovement Co. vs. Tuason GR No. L-30067, March 23, 1929).

2. Avulsion(Art. 459)The transfer of a known portion of land fromone tenement to another by the force of thecurrent. The portion of land must be suchthat it can be identified as coming from adefinite tenement.

Requisites:

a. the segregation and transfer mustbe caused by the current of a river, creekor torrentb. the segregation and transfer mustbe sudden or abruptc. the portion of land t ransportedmust be known or identified

Note: The owner must remove (not merelyclaim) the transported portion within two yearsto retain ownership.

Art. 460 applies only to uprootedtrees. If a known portion of land with

trees standing thereon is carried away bythe current to another land, Art. 459govern and the 2 year period applies.


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In case of uprooted trees, theowner retains ownership if he makes aclaim within 6 months. This does not

include trees which remain planted on aknown portion of land carried by the forceof the waters. In the latter case, the treesare regarded as accessions of the landthrough gradual changes in the course ofadjoining stream (Payatas-EstateImprovement Co. vs. Tuason GR No. L-30067, March 23, 1929).

Alluvium and Avulsion Distinguished

ALLUVIUM AVULSION

gradual and

imperceptible

sudden or abrupt

processsoil cannot be identified identifiable and

verifiable

belongs to the owner ofthe property to which itis attached

belongs to the ownerfrom whose property itwas detached

3. Change of Course of Rivers(Art. 461462)Requisites: (NAPA)

a. There must be a natural changein the course of the waters of the river;otherwise, the bed may be the subject of

a State grant (ReyesPuno, p.54).b. The change must be abrupt orsudden

c. The change must be permanent;the rule does not apply to temporaryoverflowing

d. There must be abandonment bythe owner of the bed i.e. a decision not tobring back the river to the old bed.(ReyesPuno, p.53).

Once the river bed has beenabandoned, the owners of the invaded

land become owners of the abandonedbed to the extent as provided by Art. 462.No positive act is needed on their part, asit is subject thereto ipso jure from themoment the mode of acquisition becomesevident.

It does not apply to cases wherethe river simply dries up because thereare no persons whose lands are occupiedby the waters of the river.

4. Formation of Islands (Arts. 463465)

Rules on Ownership:a. If formed by the sea:i. within territorial waters State

ii. outside territorial waters to the firstoccupant

b. If formed in lakes, or navigable or

floatable rivers Statec. If formed on nonnavigable o r nonfloatable rivers:i. if nearer to one margin or bank to

the nearer riparian ownerii. if equidistant from both banks to the

riparian owners, by halves

There is no accession whenislands are formed by the branching of ariver; the owner retains ownership of theisolated piece of land.

Right of Accession With Respect To PersonalProperty

Basic Principle: Accession exists only ifseparation is not feasible. Otherwise, separationmay be demanded.

Kinds:

1. Adjunction/ conjunction (Arts. 466-471): Theunion of two movable things belonging todifferent owners, in such a manner that theycannot be separated without injury, therebyforming a single object

Requisites:a. the two things must belong todifferent ownersb. that they form a single object, orthat their separation would impair theirnature

Kinds:a. inclusion or engraftment

b. soldadura or solderingi. ferruminacion if both the accessory

and principal objects are of the samemetal

ii. plumbatura if the accessory andprincipal objects are of differentmaterials

c. escritura or writingd. pintura or paintinge. tejido or weaving

Tests to determine principal in adjunction:

a. the rule of importance andpurpose (Art. 467)b. that of greater value if they are

of unequal valuesc. that of greater volume if theyare of equal values

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d. that of greater merits take intoconsideration all pertinent provisionsapplicable as well as the comparativemerits, utility and volume

Rules on Who is Entitled:a. Adjunction in good faith by eitherowner:General rule: Accessory follows theprincipalExceptions: If the accessory is muchmore precious than the principal, theowner of the accessory may demand theseparation even if the principal sufferssome injury

b. Adjunction in bad faith by the

owner of the principalOptions of the owner of the accessory:i. to recover the value plus damagesii. to demand separation plus damages

c. Adjunction in bad faith by theowner of the accessoryi. he loses the accessoryii. he is liable for damages

When separation of things allowed:i. separation without injuryii. accessory is more precious than the

principaliii. owner of the principal acted in badfaith

2. Mixture (Arts. 472-473): Union of materialswhere the components lose their identity

Kinds:a. Commixtion mixture of solidsb. Confusion mixture of liquids

Rules:a. By the will of both owners or by

accident: each owner acquires an interestin proportion to the value of his materialb. By one owner in good faith: applyrule (a)c. By one owner in bad faith:i. he loses all his rights to his own

materialii. he is liable for damages

3. Specification(Art. 474): The transformation ofanothers material by the application of labor.The material becomes a thing of differentkind. Labor is the principal

Rules:

a. Owner of the principal(worker)ingood faith:i. maker acquires the new thingii. he must indemnify the owner of the

materialException: if the material is morevaluable than the resulting thing, theowner of the material has the option:i. to acquire the work, indemnifying for

the labor, orii. to demand indemnity for the materialb. Owner of the principal (worker) inbad faith, the owner of the material hasthe option:i. to acquire the result without indemnityii. to demand indemnity for the material

plus damages

c. Owner of the material in bad faithi. he loses the materialii. he is liable for damages

Indemnity of the material, how paid(Art 471):a. The delivery of the same quality,kind and quality; orb. The payment of the value, as per expert appraisal.

In determining the value,sentimental value must be taken intoaccount.

Adjunction, Mixture and SpecificationDistinguished

ADJUNCTION MIXTURESPECIFICATIO

N

Involves atleast 2 things

Involves atleast 2things

May involve onething (or more)but form ischanged

Accessoryfollows theprincipal

Co-ownershipresults

Accessoryfollows theprincipal

Things joined

retain their nature

Things

mixed or confusedmay eitherretain or lose their respectivenatures

The new object

retains or preserves thenature of theoriginal object.

QUIETING OF TITLE (Arts. 476481)

Cloud on titleA semblance of title, either legal or equitable, or a

claim or a right in real property, appearing insome legal form but which is, in fact, invalid orwhich would be inequitable to enforce


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Action to quiet titleAn action to remove cloud or to quiet title is aremedy or proceeding in equity, the purpose of

which is the declaration of the invalidity of a claimon a title or the invalidity of an interest in propertyadverse to that of the plaintiff, and thereafter tofree the plaintiff and those claiming under himform any hostile claim thereon.

General rule: Only real property could be thesubject matter of quieting of title.

Exception: Certain personal properties likevessels may be the object of quieting of title.

Nature:

Actions for quieting of title are neither suits in remnor suits in personam. They are suits against aparticular person in respect to the res and thejudgment will apply only to the property in dispute.They are suits quasi in rem (Realty SalesEnterprises, Inc. vs. Intermediate Appellate CourtGR No. L-67451, September 28, 1987).

Requisites: (LCD-R)

1. plaintiff must have a legal or equitable title to,or interest in the real property which is thesubject matter of the action;

2. there must be a cloud in such title;

3. such cloud must be due to some instrument,record, claim, encumbrance or proceedingwhich is APPARENTLY VALIDbut is in truthinvalid, ineffective, voidable or unenforceable,and is prejudicial to the plaintiffs title; and

4. plaintiff must return to the defendant allbenefits he may have received from the latter,or reimburse him for expenses that may haveredounded to his benefit.

Classes:

1. Remedial (Action to quiet title) - the action

may be brought to remove a cloud or quiettitle to real property or an interest therein (Art.476 par. 1)

2. Preventive (Action quia timet) - to prevent afuture cloud (doubt) from being cast upon thetitle to real property or an interest therein (Art.476 par. 2).

Prescriptive Period:1. plaintiff in possession imprescriptible

2. plaintiff not in possession 10 (ordinary) or30 years (extraordinary)

The action to quiet title does NOT apply:1. to questions involving interpretation of

documents

2. to mere written or oral assertions of claims,EXCEPT:

a. if made in a legal proceeding

b. if it is being asserted that theinstrument or entry in plaintiffs favor isnot what it purports to be

3. to boundary disputes4. to deeds by strangers to the title UNLESS

purporting to convey the property of theplaintiff

5. to instruments invalid on their face6. where the validity of the instrument involves

pure questions of law

Duty of plaintiff to restore benefits andexpenses(Art. 479):

1. Restoration is required whenever thecomplainant is shown to be morally bound toreimburse the defendant

2. Even if the debt is not enforceable by reasonof the statue of limitations, payment may berequired by the court

Reason:He who seeks equity must do equity.

RUINOUS BUILDINGS AND TREES INDANGER OF FALLING (Arts. 482483):

As to buildings:

The complainant must show that his propertyis adjacent to the dangerous construction, ormust have to pass by necessity in theimmediate vicinity.

Lack of knowledge of the falling condition ofthe structure will not excuse the owner fromliability.

If the damage is caused by defects in theconstruction, then the builder is responsiblefor the damages.

As to trees:

The fall of the tree, occasioned by the inactionor negligence of the owner, someone hasbeen hurt, the owner of the tree is liable fordamages under the law on quasi-delict (Art.2191, par. 3).

That form of ownership which exists whenever anundivided thing or right belongs to differentpersons.

By the nature of coownership, a coownercannot point to any specific portion of the

property owned in common as his ownbecause his share in it remains intangible andideal (Avila et al. vs. Sps. Barabat GR No.141993, May 17, 2006).

53

CO- OWNERSHIP


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The possession of a coowner is like that of atrustee and shall not be regarded as adverseto the other coowner but in fact beneficial toall of them (Salvador vs. CA, G.R. No.

109910, April 5, 1995)

REQUISITES:1. Plurality of owners2. The object of ownership must be a thing or

right which is undivided3. Each coowners right must be limited only to

his ideal share of the physical wholeCHARACTERISTICS:(PSNCLG)

1. Plurality of subjects/owners2. there is a single object which is not materially

divided

3. there is no mutual representation by the co

owners4. it exists for the common enjoyment of the co

owners

5. it has no distinct legal personality6. it is governed first of all by the contract of the

parties; otherwise, by special legal provisions,and in default of such provisions, by theprovisions of Title III on coownership

SOURCES: (C2LOST)

1. Contract2. Chance

3. Law4. Occupation5. Succession6. Testamentary disposition or donation inter

vivos

COOWNERSHIP AND PARTNERSHIPDISTINGUISHED

COOWNERSHIP PARTNERSHIPCan be createdwithout the formalitiesof a contract

Can be created onlyby contract, expressor implied

Has no juridical orlegal personality

Has juridicalpersonality distinctfrom the partners

Purpose is collectiveenjoyment of the thing

Purpose is to obtainprofits

Coowner candispose of his shareswithout the consent ofthe others with thetransfereeautomaticallybecoming a coowner.

A partner, unlessauthorized, cannotdispose of his shareand substitute anotheras a partner in hisplace.

There is no mutualrepresentation.

A partner cangenerally bind thepartnership.

Distribution of profitsmust be proportionalto the respectiveinterests of the co

owners

Distribution of profitsis subject to thestipulation of theparties

A coownership is notdissolved by thedeath or incapacity ofa coowner.

Death or incapacitydissolves thepartnership

No public instrumentneeded even if realproperty is the objectof the coownership

May be made in anyform except when realproperty is contributed

An agreement to keepthe thing undivided fora period of more than10 years is void.

There may beagreement as to adefinite term withoutlimit set by law.

RULES:

I. Rights of each coowner as to the thingowned in common:(USBRAPLDP)

1. To use the thing owned in commonLimitations:a. use according to the purpose for

which it was intendedb. interest of the coownership must not

be prejudicedc. other coowners must not be

prevented from using it according totheir own rights

2. To share in the benefits and charges inproportion to the interest of each.

Any stipulation to the contrary is void.

3. To the benefits of prescription:prescription by one coowner benefits all.

4. Repairs and taxes: to compel the othersto share in the expenses of preservationeven if incurred without prior notice.

The coowner being compelled mayexempt himself from the payment oftaxes and expenses by renouncinghis share equivalent to such taxesand expenses. The value of theproperty at the time of therenunciation will be the basis of theportion to be renounced.

5. Alterations: to oppose alterations madewithout the consent of all, even ifbeneficial.Alteration is an act by virtue of which acoowner changes the thing from thestate in which the others believe it shouldremain, or withdraws it from the use towhich they desire it to be intended.

6. To protest against seriously prejudicial

decisions of the majority7. Legal redemption: to be exercised within

30 days from written notice of sale of an


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undivided share of another coowner to astranger

8. To defend the coownerships interest in

court9. To demand partition at any time

Partition is the division between 2 ormore persons of real or personal propertywhich they own in common so that eachmay enjoy and possess his sole estate tothe exclusion of and without interferencefrom others. The purpose of partition is toseparate, divide and assign a thing heldin common among those to whom itbelongs. (Avila vs. Sps. Barabat GR No.141993, March 17, 2006).

General rule: Partition is demandable byany of the coowners as a matter of rightat any time.

Exceptions: (SCLUPA)

a. When there is a stipulationagainst it; but not to exceed 10 years.

b. When the condition of indivisionis imposed by the donor or testator;but not to exceed 20 years.

c. When the legal nature of thecommunity prevents partition.

d. When partition would render thething unserviceable.e. When partition is prohibited bylaw

f. When another coowner haspossessed the property as exclusiveowner for a period sufficient toacquire it by prescription.

II. The following questions are governed bythe majority of interests:1. ManagementActs of Management (Castan)

a. Those that do not involve analterationb. Are renewable from time to timec. Do not bind the community for along time in the future

d. Do not give rise to a real rightover the thing owned in common (Reyes-Puno. p.73).e. Expenses to improve or embellishare decided by the majority

Minority may appeal to the courtagainst the majoritys decision if the same

is seriously prejudicial.2. Enjoyment3. Improvement or embellishment

III. Rights as to the ideal share of each coowner:1. Each has full ownership of his part and of

his share of the fruits and benefits2. Right to substitute another person in its

enjoyment, EXCEPT when personalrights are involved

3. Right to alienate, dispose or encumber4. Right to renounce part of his interest to

reimburse necessary expenses incurredby another coowner

5. Transactions entered into by each coowner only affect his ideal share.

Even if a co-owner sells the wholeproperty as his, the sale will affectonly his own share but not those of

the other co-owners who did notconsent to the sale. This is becausethe sale or other disposition affectsonly his share and the transferee getsonly what would correspond to hisgrantor in the partition of the thingowned in common. Since a co-owneris entitled to sell his undivided share,a sale of the entire property by oneco-owner without the consent of theother co-owners is notnull and void.Only the rights of the co-owner-sellerare transferred, thereby making the

buyer a co-owner of the property(Bailon-Casilao vs. CA, GR No. L-78178, April 15, 1988).

A co-owner cannot acquire by prescription theshare of the co-owners, absent any clearrepudiation of the co-ownership. In order thatthe title may prescribe in favor of a co-owner,the following requisites must concur: (1) theco-owner has performed unequivocal acts ofrepudiation amounting to an ouster of theother co-owners; (2) such positive acts ofrepudiation have been made known to theother co-owners; and (3) the evidence thereofis clear and convincing (Robles vs. CA, GRNo. 123509, March 14, 2000).

The act of executing the affidavit of selfadjudication did not constitute sufficient act ofrepudiation. In fact, there was bad faith of thecoheir in feigning sole ownership of theproperty to the exclusion of the other coheirs. (Galvez vs. CA, GR No. 157954, March24, 2006).

The Torrens title does not furnish a shield forfraud. Thus, where one registered the

property in question in his name in fraud ofhis coheirs, prescription can only be deemedto have commenced from the time the latter

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discovers the fraudulent act (Adille vs. CA,GR No. L-46484 January 29, 1988).

Under the law, anyone of the coowners maybring an action in ejectment (Art. 487). This

can be done without joining all other coowners because the suit is presumed to havebeen filed for the benefit of his coowners.But if the suit is for the benefit of the plaintiffalone who claims to be the sole owner andentitled to the possession of the litigatedproperty the action should be dismissed and itwill not prosper especially so that there isevidence of coownership of the property,and there is no showing that they waived theirrights (Baloloy vs. Hular GR No. 159723.September 9, 2004).

EXTINGUISHMENT OF COOWNERSHIP(CALSTEP)

1. consolidation or merger in one coowner2. acquisitive prescription in favor of a third

person or a coowner who repudiates the coownership

3. loss or destruction of property coowned4. sale of property coowned5. termination of period agreed upon by the co

owners

6. expropriation7. judicial or extrajudicial partition

CONDOMINIUM ACT (RA 4726)

Condominium - an interest in real propertyconsisting of a separate interest in a unit in aresidential, industrial or commercial building andan undivided interest in common, directly orindirectly, in the land on which it is located and inother common areas of the building.

Any transfer or conveyance of a unit or anapartment, office or store or other spacetherein, shall include transfer or conveyanceof the undivided interest in the common areas

or, in a proper case, the membership orshareholdings in the condominiumcorporation: Provided, however, that wherethe common areas in the condominiumproject are held by the owners of separateunits as coowners thereof, no condominiumunit therein shall be conveyed or transferredto persons other than Filipino citizens orcorporations at least 60% of the capital stockof which belong to Filipino citizens, except incases of hereditary succession.

General rule: Common areas shall remain

undivided, and there shall be no judicial partitionthereof

Exceptions:

1. When the project has not been rebuilt orrepaired substantially to its state prior to itsdamage or destruction 3 years after damageor destruction which rendered a material part

thereof unfit for use;2. When damage or destruction has rendered or more of the units untenantable and that thecondominium owners holding more than 30%interest in the common areas are opposed torestoration of the projects;

3. When the project has been in existence formore than 50 years, that it is obsolete anduneconomic, and the condominium ownersholding in aggregate more than 50% interestin the common areas are opposed torestoration, remodeling or modernizing;

4. When the project or a material part thereof

has been condemned or expropriated and theproject is no longer viable, or that thecondominium owners holding in aggregatemore than 70% interest in the common areasare opposed to the continuation of thecondominium regime;

5. When conditions for partition by sale set forthin the declaration of restrictions dulyregistered have been met.

WATERS (Arts. 502-518)

Laws Governing Waters:1. Civil Code of the Philippines2. Special Law of Waters of August 3, 18663. The Irrigation Acts, Act 2152 and its

amendments4. Water Power Act No. 40625. Art. XIII of the Philippine Constitution

Classification

1. Waters public per se (water is the principal);the bed follows the character of the water

2. Waters public or private according to their bed

(water is accessory to bed)3. Waters public by special provision

MINERALS (Art. 519)

Laws Governing Minerals:1. Before 1902: R.D. sobre Mineria 18672. Between 1902-1906: The Philippine Bill of

1902 and Legislative Acts3. After the Advent of the Commonwealth: Art.

XIII of the Philippine Constitution and CA No.137

4. Present: Mineral Resources DevelopmentDecree of 1974 (P.D. 463) and the Civil Codeof the Philippines

SOME SPECIAL PROPERTIES


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Minerals all inorganic substances found innature, whether in solid, liquid, gaseous, or any

intermediate state, with the exception of soilwhich supports the organic life, and of ordinaryearth, gravel, sand, and stone which are used forbuilding or construction purposes

TRADEMARK AND TRADE NAMES (Arts. 520-523)

Laws Governing Trademarks and Tradenames:

1. Intellectual Property Code (RA 8293)2. Civil Code of the Philippines

CONCEPT:

1. As an act the holding of a thing or theenjoyment of a right with the intention topossess in ones own right

2. As a fact when there is holding orenjoyment

3. As a right the right of a person to holding orenjoyment to the exclusion of all othershaving better right than the possessor

a. jus possidendi- right to possession whichis incidental to or included in the right ofownership

b. jus possessionis right of possessionindependent from the right of ownership

REQUISITES:

1. occupancy, apprehension, or taking of a thingor right (possession in fact);

2. deliberate intention to possess (animuspossidendi)

An insane or demented personCANNOT acquire possession as they areincapable of understanding the import of

their actions.

3. by virtue of ones own right in his own nameor in that of another.

DEGREES:

1. possession without any title whatsoever -mere holding without any right at all (ex. thiefor squatter)

2. possession with juridical title - predicatedon juridical relation existing between thepossessor and the owner (ex. lessee,usufructuary, depositary, agent, pledgee and

trustee)

3. possession with just title the possessionof an adverse claimant whose title is sufficient

to transfer ownership but is defective (ex.when the seller is not the true owner or couldnot transmit his rights thereto to a possessor

who acted in GF)4. possession with a title in fee simple -

derived from the right of dominion orpossession of an owner; the highest degreeof possession

CLASSES:

1. In ones own name where possessorclaims the thing for himself

2. In the name of another for whom the thingis held by the possessor

3. In the concept of owner possessor ofthing or right, by his actions, is considered orbelieved by others as the owner, regardlessof good or bad faith of the possessor

Possessor in the concept of anowner is presumed with just title. (Art.541)

4. In the concept of holder possessor holdsit merely to keep or enjoy it, the ownershippertaining to another person; possessoracknowledges in another a superior rightwhich he believes to be ownership; cannot

acquire ownership by prescription None of these holders may asserta claim of ownership for himself over thething but they may be considered aspossessors in the concept of owner, orunder claim of ownership, with respect tothe right they respectively exercise overthe thing.

5. In good faith possessor is not aware thatthere is in his title or mode of acquisition adefect that invalidates itRequisites:a. Ostensible title or mode of acquisition

b. Vice or defect in the titlec. Possessor is ignorant of the vice or defect

and must have an honest belief that thething belongs to him

Gross and inexcusable ignoranceof the law may not be the basis of goodfaith, but possible excusable ignorancemay be such basis (Kasilag vs. RoqueGR No. 46623, December 7, 1939).

6. In bad faith possessor is aware of theinvalidating defect in his own title.

Only personal knowledge of theflaw in ones title or mode of acquisitioncan make him a possessor in bad faith. Itis not transmissible even to an heir.

57

POSSESSION


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Possession in good faith ceasesfrom the moment defects in his title aremade known to the possessor

EXTENT OF POSSESSION:1. Actual possession occupancy in fact ofthe whole or at least substantially the wholeproperty

2. Constructive possession occupancy ofpart, in the name of the whole, under suchcircumstances that the law extends theoccupancy to the possession of the wholeDoctrine of constructive possession possession in the eyes of the law does notmean that a man has to have his feet onevery square meter of ground before it can besaid that he is in possession (Ramos vs.

Director of Lands GR No. 13298, November19, 1918).

PRESUMPTIONS IN FAVOR OF POSSESSOR:

1. of good faith (Art. 527)2. of continuity of initial good faith (Art. 528)3. of enjoyment in the same character in which

possession was acquired until the contrary isproved (Art. 529)

4. of noninterruption in favor of the presentpossessor(Art. 554)

5. of continuous possession by the one whorecovers possession of which he waswrongfully deprived (Art. 561)

6. of extension of possession of real property toall movables contained therein (Art. 542)

OBJECT OF POSSESSION:General rule: All things and rights susceptible ofbeing appropriated (Art. 530)

Exceptions:1. Res communes2. Property of public dominion3. Discontinuous servitudes

4. Nonapparent servitudesACQUISITION OF POSSESSION (Arts. 531-538)

Manner of acquiring possession:1. Material occupation of the thing or exercise of

a right2. Subjection to our will3. Proper acts and legal formalities established

for acquiring such right

Special Cases of Acquisition of Possession:

1. Acquisition through another person.Where possession is acquired, not by an

agent or representative but by a strangerwithout agency, possession is not acquireduntil the act is ratified(Art. 532).

2. Acquisition by Succession Mortis Causa

a. Time of Acquisition. If the inheritance isaccepted, the estate is transmittedwithout interruption from the death of the

predecessor. But the heir who repudiatesis deemed never to have acquiredpossession (Art. 533).

b. Effect of Bad Faith of the decedent. Onewho succeeds by hereditary title shall notsuffer the consequences of the wrongfulpossession of the decedent unless it isshown that he had knowledge of thedefects affecting it; but the effects ofpossession in good faith shall not benefithim except from the death of thedecedent (Art. 534).

CONFLICTS BETWEEN SEVERALCLAIMANTS:General rule: Possession cannot be recognizedin two different personalities

Exception: In case of copossession when thereis no conflict

Criteria in Case of Dispute:1. present/actual possessor shall be preferred2. if there are two possessors, the one longer in

possession3. if the dates of possession are the same, the

one with a title4. if all the above are equal, the fact of

possession shall be judicially determined, andin the meantime, the thing shall be placed injudicial deposit

Possession cannot be acquired throughforce or violence. To all intents andpurposes, a possessor, even if physicallyousted, is still deemed the legalpossessor(Caquea vs. Bolante GR No.137944, April 6, 2000).

A person who believes himself entitled tothe possession of property may not takethe law into his hands (Bishop of Cebuvs. Mangaron, G.R. No. 1748, June 1,1906) or else he will be made to sufferthe consequences of his lawlessness(Santiago vs. Cruz GR No. L-31919,March 24, 1930).

EFFECTS OF POSSESSION (Arts. 539-561)POSSESSOR IN

GOOD FAITHPOSSESSOR IN BAD

FAITHFruits gathered

to possessor to owner Cultivation Expenses of gathered fruits

not reimbursed topossessor

reimbursed topossessor

Fruits pending and charges


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prorated according totime

to owner

Production expenses of pending fruits

indemnity pro-rata topossessor (ownersoption)in money, orby allowing fullcultivation andgathering of all fruits

no indemnity

Necessary expensesreimbursed topossessor; retention

reimbursed topossessor; no retention

Useful expensesreimbursed topossessor (owners

option)initial costplus valuemay remove if noreimbursement, and nodamage is caused tothe principal by theremoval

no reimburse-ment

Ornamental expensesreimbursement atowners option:removal if no injury, orcost without removal

owners option:removal, orvalue at time of recovery

Taxes and charges (i. on capital, ii. on fruits andiii. charges)

taxes and chargesi. charged to

ownerii. charged to

possessoriii. prorated

taxes and chargesi. charged to ownerii. charged to owneriii. to owner

Improvements no longer existingno reimbursement no reimburse-ment

Liability for accidental loss or deteriorationonly if acting withfraudulent intent or

negligence, aftersummons

liable in every case

Improvements due to time or natureto owner or lawfulpossessor

to owner or lawfulpossessor

Necessary expenses made for thepreservation of the thing

Useful expenses add value to property orincrease the objects productivity

Ornamental/luxury expenses add value to the

thing only for certain persons in view of theirparticular whims; neither essential forpreservation nor useful to everybody in general

LOSS OF POSSESSION (Art. 555)

General Causes:1. By the will of the possessor

a. Abandonmentb. Transfer or conveyance

2. Against the will of the possessora. Eminent domainb. Acquisitive prescriptionc. Judicial decree in favor of one who has a

better rightd. Possession of another for more than one

year

This refers to possession defacto where the possessor loses the

right to a summary action; but he maystill bring action publiciana orreivindicatoria.

e. By reason of the objecti. destruction or total loss of the thingsii. withdrawal from commerce

Acts NOT Constituting Loss of Possession(Arts. 537538)1. Acts executed by stealth and without

knowledge of the possessor2. Acts merely tolerated either by the possessor

or by his representative or holder in his name

unless authorized or ratified3. Violence4. Temporary ignorance of the whereabouts of

movable property

The possessor who recovers possessionis considered as having had uninterruptedpossession despite these acts of violence,stealth and tolerance; but he must recoverpossession by due process, and nototherwise (Arts. 561, 536, 539)

POSSESSION OF MOVABLES (Art. 559):

Theory of Irrevindicability - Possession in goodfaith of a movable is presumed ownership. It isequivalent to title. No further proof is necessary(Aznar vs. Yapdiangco, G.R. No. L-18536, March31, 1965). The rule isnecessary for purposes offacilitating transactions on movable propertywhich are usually done without special formalities(Sotto vs. Enage, 43 O.G. 5075 [1947]).

Requisites:1. possession is in good faith2. the owner has voluntarily parted with the

possession of the thing3. possessor is in the concept of owner

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Exceptions to the Theory of Irrevindicability:

1. where the owner or possessorlosta movable2. where the owner or possessor has been

unlawfully deprived ofa movable

General rule: One who has lost or has beenunlawfully deprived of a movable may recover itfrom whoever possesses it withoutreimbursement. The owner of the thing mustprove: (1) ownership of the thing, and (2) loss orunlawful deprivation; or bad faith of thepossessor.

Exceptions:1. Where the owner acts negligently or

voluntarily parts with the thing owned, hecannot recover it from the possessor.

2. If the possessor of the movable acquired it ingood faith at a public sale, the owner cannotobtain its return without reimbursing the pricepaid therefor.

Public sale one where there has been a publicnotice of the sale in which anyone is allowed tobid for the object he desires to buy.

POSSESSION OF ANIMALS (Art. 560):

Wild Animals living in a state of nature

independently of and without the aid and care ofman; considered possessed only while they areunder mans control

Domesticated/ Tamed Animals - wild or savageby nature but have been subdued and becameaccustomed to live in a tamed condition;considered possessed if they habitually return tothe premises of their possessor

Domestic/ Tame animals live, born and rearedunder the control and care of man

Gives the right to enjoy the property of anotherwith the obligation of preserving its form andsubstance, unless the title constituting it or thelaw otherwise provides.

CHARACTERISTICS:1. real right2. of temporary duration3. to derive all advantages from the thing due to

normal exploitation4. may be constituted on real or personal

property, consumable or nonconsumable,tangible or intangible, the ownership of whichis vested in another

5. transmissible

KINDS OF USUFRUCTUARY ACCORDING TOORIGIN:

1. Legal created by law such as usufruct ofthe parents over the property of theirunemancipated children

2. Voluntary created by will of the partieseither by act inter vivos such as donation orby act mortis causa such as in a last will andtestament

3. Mixed acquired by prescription such aswhen believing himself to be the owner of theproperty of an absentee, gave in his will theusufruct of the property for the requisiteprescriptive period to his wife, whopossessed it in good faith as usufructuary,

and naked ownership to his brother

RULES GOVERNING USUFRUCT:Governed primarily by the title creating it, or in theabsence thereof, by Articles 566-612 of the CivilCode.

NORMAL USUFRUCT AND ABNORMALUSUFRUCT DISTINGUISHED

NORMAL USUFRUCTABNORMALUSUFRUCT

that which involves non-consumable thingswhich the usufructuarycan enjoy withoutaltering their form orsubstance, though theymay deteriorate ordiminish by time or use

that which involvesthings which would beuseless to theusufructuary unlessthey are consumed orexpended, such asmoney, grain, liquors,etc.

GENERAL RULE: Usufructuary is bound topreserve the form and substance of the thing inusufruct.

EXCEPTION: Abnormal usufruct whereby the lawor the will of the parties may allow themodification of the substance of the thing.

USUFRUCT AND LEASE DISTINGUISHED

USUFRUCT LEASE

Always a real right Generally a personalright

Person creating theusufruct should be theowner or his dulyauthorized agent

Lessor may not be theowner

May be created by law,by contract, by will ofthe testator, or by

Generally created bycontract

USUFRUCT


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prescription

As a rule, usufructcovers all the fruits andall the uses and benefitsof the entire property.

Lease generally refersto uses only

Involves a more or lesspassive owner whoallows the usufructuaryto enjoy the object givenin usufruct

Lease involves a moreactive owner or lessorwho makes the lesseeto enjoy

Pays for ordinary repairsand taxes on the fruits

Lessee is not generallyunder obligation toundertake repairs orpay taxes

SPECIAL USUFRUCTS:

1. of pension or income (Art. 570)2. of property owned in common (Art. 582)3. of cattle (livestock)(Art. 591)4. on vineyards and woodlands (Art. 575576)5. on a right of action (Art. 578)6. on mortgaged property (Art. 600)7. over the entire patrimony (Art. 598)8. over things which gradually deteriorate (Art.

573)

9. of consumable property (Art. 574)

RIGHTS OF THE USUFRUCTUARY1. As to the thing and its fruits

a. To receive and benefit from the fruitsb. To enjoy any increase through

accessions and servitudesc. To the half of the hidden treasure he

accidentally findsd. To lease the thing, generally, for the

same or shorter period as the usufruct.e. To improve the thing without altering its

form and substance

f. Right to setoff the improvements he mayhave made on the property against anydamage to the same

g. To retain the thing until he is reimbursedfor advances for extraordinary expensesand taxes on the capital

h. To collect reimbursements from theowner for indispensable extraordinaryrepairs, taxes on the capital he advanced,and damages caused to him.

i. To remove improvements made by him ifthe same will not injure the property

2. As to the usufruct itselfa. To mortgage the right of usufruct except

parental usufructb. To alienate the usufruct

3. At the expiration of the usufruct:a. to collect reimbursement from the owner:

i. for indispensable extraordinary repairs made bythe usufructuary

ii. for taxes on the capital advanced by theusufructuary

iii. for damages caused by the usufructuaryb. to retain the thing until reimbursement is

madec. to remove improvements made by him,

but without injuring the property

In a usufruct, only the jus utendi and jusfruendi over the property are transferred tothe usufructuary. The owner of the property

maintains the jus disponendior the power toalienate, encumber, transform, and evendestroy the same (Hemedes vs. CA, GR No.107132, October 8, 1999).

Under the Massachusetts Rule, a stockdividend is considered part of the capital andbelongs to the remainderman; while under thePennsylvania Rule, all earnings of acorporation, when declared as dividends inwhatever form, made during the lifetime of theusufructuary, belong to the latter. ThePennsylvania Rule is more in accord with ourlaws than the Massachusetts Rule (Bachrach

vs. Seifert and Elianoff, GR No. L-2659,October 12, 1950).

Corollary to the right to all the rents, tochoose the tenant, and to fix the amount ofthe rents, a usufructuary of the rents has theright to choose himself as the tenant,provided that the obligations he has assumedtowards the owner of the property are fulfilled(Fabie vs. Gutierrez David, GR No. L-123,December 12, 1945).

OBLIGATIONS OF THE USUFRUCTUARY

1. Before exercising the usufruct:a. To make an inventory of the propertyb. To give a bond, EXCEPT

i. when no prejudice would resultii. when the usufruct is reserved by the donor or

parents

iii. in cases of caucion juratoria where theusufructuary, being unable to file the requiredbond or security, files a verified petition in theproper court asking for the delivery of the houseand furniture necessary for himself and his familywithout any bond or security.

1) takes an oath to take

care of the things and restorethem2) property cannot bealienated or leased because this

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would mean that the usufructuarydoes not need it

Effects of failure to post bond:

a. owner shall have the following options:i. receivership of realty, sale of movables, deposit ofsecurities, or investment of money; OR

ii. retention of the property as administratorb. the net product shall be delivered to the

usufructuaryc. usufructuary cannot collect credits due or

make investments of the capital withoutthe consent of the owner or of the courtuntil the bond is given

2. During the usufruct:a. To take care of the property

b. To replace with the young thereof animalsthat die or are lost in certain cases whenthe usufruct is constituted on flock or herdof livestock

c. To make ordinary repairsd. To notify the owner of urgent extra

ordinary repairse. To permit works and improvements by

the naked owner not prejudicial to theusufruct

f. To pay annual taxes and charges on thefruits

g. To pay interest on taxes on capital paid

by the naked ownerh. To pay debts when the usufruct isconstituted on the whole patrimony

i. To secure the naked owners or courtsapproval to collect credits in certain cases

j. To notify the owner of any prejudicial actcommitted by third persons

k. To pay for court expenses and costsregarding usufruct

3. At the termination of the usufruct:a. To return the thing in usufruct to the

owner unless there is a right of retention

b. To pay legal interest on the amount spentby the owner for extraordinary repairs ortaxes on the capital

c. To indemnify the owner for any lossesdue to his negligence or of his transferees

RIGHTS OF THE OWNER DURING THEUSUFRUCT:1. He retains title2. He may alienate the property, but he may not:

a. alter the form or substance of thethingb. do anything prejudicial to the

usufructuary3. He may construct buildings, make

improvements and plantings, provided:

a. the value of the usufruct is notimpairedb. the rights of the usufructuary arenot prejudiced

OBLIGATIONS OF THE OWNER AT THEEXPIRATION OF THE USUFRUCT:1. to make reimbursement for advances of the

usufructuary2. to cancel the bond, upon discharge of the

usufructuarys obligations3. to respect leases of rural lands by the

usufructuary for the balance of the agriculturalyear

EXTINGUISHMENT OF USUFRUCT (PT2DERM)

1. Prescription2. Termination of right of the person constituting

the usufruct3. Total loss of the thing4. Death of the usufructuary, unless contrary

intention appears

5. Expiration of the period or fulfillment of theresolutory condition

6. Renunciation of the usufructuary7. Merger of the usufruct and ownership in the

same person

Encumbrance imposed upon an immovable forthe benefit of a community or one or morepersons or for the benefit of another immovablebelonging to a different owner.

EASEMENT AND SERVITUDE DISTINGUISHED

EASEMENT SERVITUDE

Origin

English law Roman law

Recipient of Benefit

always real may be real orpersonal (broader)

CHARACTERISTICS:1. It is a real right but will affect third persons

only when duly registered.2. It is enjoyed over another immovable, never

on ones own property3. It involves two neighboring estates (in case of

real easements).4. It is inseparable from the estate to which it is

attached, and, therefore, cannot be alienatedindependently of the estate.

5. It is indivisible for it is not affected by thedivision of the estate between two or morepersons.

EASEMENT OR SERVITUDE


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6. It is a right limited by the needs of thedominant owner or estate, withoutpossession.

7. It cannot consist in the doing of an act unlessthe act is accessory in relation to a realeasement.

8. It is a limitation on the servient owners rightsof ownership for the benefit of the dominantowner; and, therefore, it is not presumed.

CLASSIFICATION:1. As to recipient of benefit:

a. Real/Predial when the easement is infavor of another immovable

b. Personal when it is in favor of acommunity or of one or more persons

i. Public if it is vested in the public at large or insome class of indeterminate individuals

ii. Private if it is vested in a determinate individualor certain persons2. As to its source:

a. Voluntary when the easement isestablished by the will or agreement ofthe parties or by a testator

b. Legal when it is imposed by law eitherfor public use or in the interest of privatepersons

c. Mixed when it is created partly by willor agreement and partly by law

3. As to its exercise:

a. Continuous Easements those the useof which is, or may be, incessant withoutthe intervention of any act of man

b. Discontinuous Easements thosewhich are used at intervals and dependupon the acts of man

4. As to the indication of their existence:

a. Apparent Easements those which aremade known and are continually kept inview by external signs that reveal the useand enjoyment of the same

b. Nonapparent Easements thosewhich show no external indication of theirexistence

5. As to duty of servient owner

a. Positive the servient owner must allowsomething to be done in his property ordo it himself; also called servitudes ofintrusion and or/service

b. Negative the servient owner mustrefrain from doing something which hecould lawfully do if the easement did notexist

EASEMENT AND LEASE DISTINGUISHEDEASEMENT LEASE

Real right, whether Real right only when it

registered or not is registered, or whenits subject matter is realproperty and the

duration exceeds oneyear

Imposed only on realproperty

May involve either realor personal property

There is a limited rightto the use of realproperty of another butwithout the right ofpossession

Limited right to both thepossession and use ofanothers property

EASEMENT AND USUFRUCT DISTINGUISHEDEASEMENT USUFRUCT

Imposed only on real

property

May involve either real

or personal propertyLimited to particular orspecific use of theservient estate

Includes all the usesand the fruits of theproperty

A nonpossessory rightover an immovable

Involves a right ofpossession in animmovable or movable

Not extinguished by thedeath of the dominantowner

Extinguished by thedeath of theusufructuary

MODES OF ACQUISITION:(PDFAT)

1. by prescription of 10 years (continuous and

apparent easements)a. Positive servitude - countedfrom the day their exercise commences.

b. Negative servitude - countedfrom the formal prohibition to the servientowner to do any act opposed to theservitude (Art. 621). There must be anotarized document.

2. by deed of recognition3. by final judgment4. by apparent sign established by the owner of

two adjoining estates, unless:

a. there are contrary stipulations orb. the sign is effaced

5. by title

DOMINANT OWNER

Rights:1. To exercise all the rights necessary for the

use of the easement2. To make on the servient estate all the works

necessary for the use and preservation of theservitude

3. To renounce the easement if he desires to

exempt himself from contribution to necessaryexpenses

4. To ask for mandatory injunction to preventimpairment of his use of the easement

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Obligations:1. Cannot render the easement or render it

more burdensome

2. Notify the servient owner of works necessaryfor the use and preservation of the servitude3. Choose the most convenient time and

manner in making the necessary works as tocause the least inconvenience to the servientowner

4. Contribute to the necessary expenses if thereare several dominant estates

SERVIENT OWNER

Rights:1. To retain ownership and possession of the

servient estate2. To make use of the easement, unless there isagreement to the contrary

3. To change the place or manner of theeasement, provided it be equally convenient

Obligations:1. Cannot impair the use of the easement2. Contribute to the necessary expenses in case

he uses the easement, unless there is anagreement to the contrary

EXTINGUISHMENT OF EASEMENTS (REMAIN

BREW)1. Redemption agreed upon2. Expiration of the term or fulfillment of the

resolutory condition

3. Merger of ownership of the dominant andservient estate

4. Annulment of the title to the servitude5. Permanent impossibility to use the easement6. Nonuser for 10 years

a. discontinuous: counted f rom theday they ceased to be usedb. continuous: counted from the dayan act adverse to the exercise takesplace

7. Bad condition when either or both estatesfall into such a condition that the easementcould not be used

8. Resolution of the right to create the servitude,(i.e. in case of pacto de retro, when theproperty is redeemed)

9. Expropriation of the servient estate10. Waiver by the dominant owner

LEGAL EASEMENTS

Kinds of Legal Easements:1. Public legal easements those for public or

communal use, governed primarily by speciallaws and by the Civil Code

2. Private legal easements those for theinterest of private persons or for private use;governing law:

a. primarily by the agreement of the

interested parties;b. in the absence thereof, by theprovisions of general or local laws andordinances; andc. in default of (a) and (b), by theCivil Code

I. Easement Relating To Waters (Art. 637):Lower estates must receive waters which arenaturally and without intervention of mandescend from higher estates including earthor stones carried with them (Art. 637)

Limitations:1. Dominant owner must notincrease the burden but he may erectworks to avoid erosion.

2. The servient owner must notimpede the descent of the water(but mayregulate it).

II. Easement On Riparian Property (Art. 638)

III. Easement On Dam Or Weir(Art. 639)

IV. Easement For Watering Cattle (Art. 640):This is a combined easement for drawing ofwater and right of way

Requisites:a. must be imposed for reasons of public

useb. must be in favor of a town or villagec. indemnity must be paid

V. Easement of Aqueduct (Arts. 643646)

From a forced easement, by

virtue of which the owner of an estatewho desires to avail himself of water forthe use of said estate may make suchwaters pass through the intermediateestate with the obligation of indemnifyingthe owner of the same and also theowner of the estate to which the watermay filter or flow

Requisites:1. dominant owner must prove that he has

the capacity to dispose of the water2. that the water is sufficient for the intended

use3. that the course is most convenient, andleast onerous to the 3rd person

4. payment of indemnity


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VI. Easement For The Construction of A StopLock or Sluice Gate (Art. 647)

VII.Easement of Right of Way (Arts. 649657):The right granted to the owner of an estatewhich is surrounded by other estatesbelonging to other persons and w

2009 beda property-memaid

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