LAWPROP Reviewer

PROPERTY AND THINGS Property - anything that may be the object of appropriation, which may be either an immovable/real property or movable/personal property (Art. 414) Latin word: proprius May not necessarily be owned. Requisites: USA 1. 2. 3.

Utility - ability to satisfy human wants Substantivity or individuality - ability of having existence apart from any other thing Appropriability - the susceptibility of being possessed by man

Thing vs. Property As used in the Civil Code, the word "thing" is synonymous with the word "property." But "thing" is broader in scope as it includes both appropriable and non-appropriable objects (planets, stars, moon, etc.). 

Classification of Things o res nullius (belonging to no one)  have not yet been appropriated  fish in the ocean  wild animals o res communes (belonging to everyone)  air, wind, sunlight o res alicujus (belonging to someone)  tangible or intangible things owned privately  book  shares of stock  parcel of land o res derelictae (abandoned)

The Human Body, Property or Not? Tolentino's opinion:   

Living human body is not a thing. Some parts may be considered as things when separated from it such as hair/teeth. Corpse o becomes a thing although not susceptible of appropriation and commerce because of it is contrary to public morality. o There is a right of possession over it recognized in the nearest relative/spouse for burial. o cannot be a subject matter of a contract, otherwise, contract is VOID o gratuitous disposition - Donation 1

IMMOVABLE AND MOVABLE PROPERTY IMMOVABLE PROPERTY The law does not define immovable property, they are merely enumerated. Academic Classification of Real Properties 1. Real property by nature (trees and plants) 2. Real property by incorporation (building) 3. Real property by destination or purpose (machinery placed by owner of a tenement on it for direct use to an industry to be carried on therein) 4. Real property by analogy (like the right of usufruct, or a contract for public works, or easements and servitudes, or "sugar quotas") Art. 415 The following are immovable property: (1) Land, buildings, roads and constructions of all kinds adhered to the soil. BUILDING    

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A building is always an immovable property whether constructed on a land belonging to another and regardless of the nature of the materials used in constructing the same. It must be more of less a permanent structure and not merely superimposed (barong-barong, not immovable) or merely attached to the soil. Can be a separate subject of contracts Parties to a contract may regard the building as movable property so that a building may be the subject of a chattel mortgage. o Such agreement is valid only between contracting parties. o Null and void in so far as third parties are concerned even if he is aware of the property being regarded as chattel mortgage. A third party's knowledge will NOT make it a valid agreement. o In case of a dispute in the property between X and Y (contracting parties) and M who is a third party. M has a better right. o In Standard v. Jaranillo 44 Phil. 631, it was held that the deed may be registered in the chattel mortgage registry. The registrar's duty is ministerial in nature. o However, a building is a real property and the mere fact that the parties dealt with it as a personal property and registered it as a chattle mortgage does not change its character as a real property. Once a house is demolished, its character as immovable ceases (Bicerra v. Teneza, 6 SCRA 649).

Questions: 

Chair attached to the soil. Is it automatically immovable property? o To be considered a construction adhered to the soil, it must have some degree of permanence. o Perimeter fence made of wood / bamboo shoots - No permanence o Concrete perimeter fence - With permanence 2

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o intent to permanently annex the same (Paras, p. 18) What if a concrete building is attached and moved? o Still immovable

(3) Everything attached to an immovable in a fixed manner, in such a way that it cannot be separated therefrom without breaking the material or deterioration of the object. ATTACHMENTS TO IMMOVABLE 2 objects 1 is necessarily immovable Examples: Those attached to an immovable in a fixed manner and are immovables:  

Paint Tiles

Those attached to an immovable that are movables:  

Blackboard Platform

Injury or breakage or deterioration in case of separation MUST BE SUBSTANTIAL. Questions: 

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Properties attached to immovable are temporarily removed, but there is intention to replace them, should they be considered real or personal property? o Personal property because the incorporation has ceased. Electricity is movable property. What about electric wires underground? o They are immovable under paragraph 3.

(5) Machinery, receptacles, instruments, or implements intended by the owner of the tenement for an industry or works which may be carried on in a building or a piece of land, and which tend directly to meet the needs of the said industry or works. (2) Trees, plants, and growing fruits, while they are attached to the land or form an integral part of an immovable. (4) Statues, reliefs, paintings, or other objects for use or ornamentation, placed in buildings or on lands by the owner of the immovable in such a manner that it reveals the intention to attach them permanently to the tenements.

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(6) Animal houses, pigeon-houses, beehives, fish ponds or breeding places of similar nature, in case their owner has placed them or preserves them with the intention to have them permanently attached to the land, and forming a permanent part of it; the animals in these places are included; (7) Fertilizer actually used on a piece of land; (8) Mines, quarries, and slag dumps, while the matter thereof forms part of the bed, and waters either running or stagnant; (9) Docks and structures which, though floating, are intended by their nature and object to remain at a fixed place on a river, lake, or coast. (10) Contracts for public works, and servitudes and other real rights over immovable property. MACHINERIES 3 Elements 1. Placed by the owner/agent (Davao Sawmill v. Castillo, 61 Phil 709) o But NOT when so placed by a tenant, a usufructuary, or person having only temporary right, UNLESS such person acted as agent of the owner. o One having a temporary right to possession or enjoyment of the land cannot be deprived of the machinery, which is personal by nature, by immobilizing it to become the property of another. 2. Placed where industry/work is carried on in building or piece of land and tend directly to meet needs of said industry/work (Theory of adaptability) 3. Essential and principal element in the industry and not merely incidental o Those incidental include cash registers, calculators, etc. in hotels, restaurants because these businesses can continue their functions without these equipment. o Delivery trucks of businesses - movable o Repair / service shop of transportation business - incidentals (Mindanao Bus v. City Assessor, 6 SCRA 197) EXCEPTION: Machines and equipment installed by a tenant/lessee on a leased land may be classified as immovable property for taxation purposes. Caltex v. BAA, 114 SCRA 297 The machines and equipment - underground tanks, elevated tank, elevated water tanks, water tanks, etc. - installed by Caltex on leased land, are classified as real properties for realty taxation purposes. MERALCO v. CBAA, 114 SCRA 273 Storage tanks are not embedded in the land but they may be considered as improvements on the land. It is undeniable that the two tanks have been installed with some degree of permanence as receptacles for the considerable quantities of oil needed by Meralco for its operations.

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Chattel Mortgage  

Makati Leasing & Finance Corp v. Wearever Textile Mills Wearever Textile Mills loaned from MLFC. A textile mill with cement base was used as collateral for loan obligation It is a more or less permanent structure because removing it will cause damage to the ground. It is an immovable property. But it was regarded as chattel mortgage (movable property). Wearever is bound by estoppel. It is a valid chattel mortgage between the contracting parties.

FLOATING STRUCTURES FELS Energy, Inc. v. Province of Batangas, 516 SCRA 186 (2007) Art 415 (9) of the New Civil Code provides that "[d]ocks and structures which, though floating, are intended by their nature and object to remain at a fixed place on a river, lake, or coast" are considered immovable property. Thus, power barges are categorized as immovable property by destination, being in the nature of machinery and other implements intended by the owner for an industry or work which may be carried on in a building or on a piece of land and which tend directly to meet the needs of said industry or work. Questions:  

Building belongs to Landowner (LO) and is leased by lessee (A). It is a printing ship with different properties inside: 1. Printing machine with cement base reinforced by nuts and bolts  It is a principal element in the business but it is assumed that it was installed by the A, the lessee. Therefore, Paragraph 5 pertaining to machineries DOES NOT APPLY.  Paragraph 3 pertaining to everything attached to immovable in a fixed manner may apply.  IMMOVABLE 2. Freezer attached by nuts and bolts to cement base  Paragraph 3 pertaining to everything attached to immovable in a fixed manner may apply.  IMMOVABLE 3. LED TV attached on top with nuts a bolts  Paragraph 3 pertaining to everything attached to immovable in a fixed manner DOES NOT APPLY. The TV can be easily removed.  MOVABLE 4. Chairs bolted to the ground/floor  Paragraph 3 pertaining to everything attached to immovable in a fixed manner DOES NOT APPLY. The chairs can be easily removed.  MOVABLE 5. Laptops and computers  It is assumed that it was installed by the A, the lessee. Therefore, Paragraph 5 pertaining to machineries DOES NOT APPLY.  Paragraph 3 pertaining to everything attached to immovable in a fixed manner DOES NOT APPLY. 5

 MOVABLE 6. Guard house beside the building temporarily attached to metal square plates  Paragraph 1 pertaining to constructions of all kinds adhered to the soil DOES NOT APPLY because it is not embedded on the soil and is a temporary structure.  MOVABLE 7. Gate embedded to the ground (6ft)  Paragraph 1 pertaining to constructions of all kinds adhered to the soil may apply.  IMMOVABLE

MOVABLE PROPERTY Art. 416 is not really a definition. It just characterizes and describes while 415 enumerates immovable property. Art. 416 The following things are deemed to be personal property: 1. 2. 3. 4.

Those movables susceptible of appropriation which are not included in the preceding article; Real property which by any special provision of law is considered as personalty; Forces of nature which are brought under control by science; and In general, all things which can be transported from place to place without impairment of the real property in which they are fixed.

General Test   

Whether it can be carried from place to place Whether the change of location can be carried without injury to real property/immovable property to which it may be in the meantime attached Not enumerated in Art. 415

Forces of nature and electricity US v. Carlos, 21 Phil 543 Carlos was charged with theft but contends that he cannot be charged because electricity is immovable. However, electricity is considered as personal property under Art. 416(3) of the Civil Code, which enumerates "forces of nature which are brought under the control by science. Interest in Business personal property since it is capable of appropriation and not included in the enumeration of real properties (Paragraph 1) Vessels For all purposes of law, vessels shall continue to be considered personal property (Art. 585, Code of Commerce). 6

Questions: 

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What about electricity lines under the ground? o In the case of Capital Wireless Inc. v. Provincial Treasurer of Batangas, electric lines and communication cables may be classified under the term "machinery" as real property. o Also for purposes of taxation What about international long distance calls? o In the case of PLDT v. Alvarez, those are personal properties.

PROPERTY OF PUBLIC DOMINION AND PRIVATE PROPERTY Property Classified According to Ownership 1. Public Capacity 2. Private Capacity State may own properties both in public capacity (properties of public dominion) and in private capacity (patrimonial property). Art. 420 3 Kinds of Property of Public Dominion 1. Public Use - roads, canals, rivers, torrents, ports, and bridges, banks, shores, roadsteads, and others of similar character o similar character:  public streams  natural beds of rivers  river channels  waters of rivers  creeks 2. Public service - national government buildings, army rifles, army vessels (may be used only by duly authorized persons) 3. Development of National Wealth - natural resources

Public Dominion ownership by the State ownership by the public in general 1. Outside the commerce of man 2. Cannot be titled 3. Not susceptible of ownership by means of prescription (only private property can be acquired by prescription) 4. Beyond execution of garnishment o judgment debtor; properties belonging to judgment debtor attach them then are sold at an execution sale o proceeds - used as payment for judgment awarded 7

Art. XII Sec. 3 Const. Lands of Public Domain Asia's Next Top Model (LOL!!!) Agricultural Lands (may be alienated) 

RA No. 6657 is one that is devoted to agricultural activity

National Parks Timber / Forest Lands Mineral Lands The classification of land is descriptive of its legal nature or status and does not have to be descriptive of what the land actually looks like. Alienable 

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Best proofs in registration proceedings that a land is alienable and disposable are a certification from the CENRO or Provincial Environment and Natural Resources Office (PENRO) and a certified true copy of the DENR's original classification of the land. To prove that the land subject of the application for registration is alienable, the application must establish the existence of a positive act of the government such as a Presidential Proclamation or an Executive Order, Administrative Order, or an administrative action, investigation reports of the Bureau of Lands investigators, and legislative act or statute.

Categories of Alienable and Disposable Lands of the State 1. Patrimonial lands of the State 2. Lands of public domain (but only agricultural) Questions: 

May private corporations acquire alienable lands of the public domain? o No, except by lease. Alienable lands are reserved in favor of Philippine citizens who are natural persons o Private corporations may acquire private lands but NOT alienable public lands

Private Properties exact opposite of public dominion Regalian Doctrine Art XII, Sec. 2 Const. All mineral land and other natural resources found either in public or private lands are owned by the State.

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dictates that all lands of the public domain belong to the State, that the State is the source of any asserted right to ownership of land and charged with the conservation of such patrimony there is no such thing as land belonging to no one

Jura Regalia - State is the original proprietor of all land and, as such, is the general source of all private titles. Art. 421 All other property of the State, which is not of the character stated in the preceding article, is patrimonial property. Patrimonial Property Those properties that the state possess in its private capacity    

Doctrine of non-suability of the state o unless the State enters into a contract in its private capacity Treated like private property Not devoted to public use, public service, or development of national wealth May be acquired by private individual or corporation through prescription

Art. 422 Property of public dominion, when no longer intended for public use or for public service, shall form part of the patrimonial property of the State.      

Mere non-use will NOT automatically convert property to patrimonial property Mere possession or occupation will not convert a public land into a patrimonial/private property Art. 422 is not a self-executing act Positive act declaring the land as alienable and disposable is required. Absence of incontrovertible evidence to prove that the property is alienable and disposable, it must still be considered as inalienable lands of the public domain Burden of proof in overcoming the presumption of State ownership is on the person applying for registration / claiming ownership

Laurel v. Garcia  

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“positive act” is needed; EO of Aquino is not a positive act Roponggi property is not a patrimonial property o The fact that the Roponggi site has not been used for a long time for actual Embassy service does not automatically convert it to patrimonial property. o Abandonment of the intention to use the Roponggi property for public service and to make it patrimonial property under Art. 422 must be definite. Abandonment cannot be inferred from non-use alone. CARP Law does not authorize the Executive Department to sell the property. It just enumerates possible sources of future funding to augment Agrarian Reform Fund. Roponggi property is outside the commerce of man. 9

DENR v. Mayor Yap (Boracay Case)

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Proclamation 1064 – Arroyo, forest reserves --> Boracay Boracay land is property of public domain o Even if you are occupying it since time immemorial, it cannot be private property o It is outside the commerce of man. o There is no prescription Other justifications of claimants: Marcos Decree, Procalamtion 1801 o Classifying Boracay as tourist area o Not enough to convert land To convert property of public dominion to alienable or patrimonial property, there should be a DECLARATION that the land is alienable and disposable so that it can be acquired as private property. Likewise, in Laurel v. Garcia, 1.) EO of Aquino and 2.) CARP Law are not positive acts declaring the land alienable. Art. 422 is NOT a self-executing provision. There must be a positive act.

Chavez v. PEA     

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Chavez, former Solicitor General opposing the government of Fidel V. Ramos Opposing transaction between FVR (PEA) and AMARI (corporation) PEA (Public Estates Authority) – supervision of reclaimed areas in Manila Bay (site of MOA) PEA entered into a Joint Venture Agreement (JVA) with AMARI to develop reclaimed areas into commercial and residential lands Chavez: JVA is contrary to provisions of the constitution o Part of the consideration: AMARI will acquire a percentage of the property (ownership) o Private corporations (both domestic and foreign) CANNOT acquire ownership of public dominion. Ruling: It is unconstitutional Once a property of public domain is made alienable or disposable (ONLY agricultural lands may be alienated), it is reserved in favor of Philippine citizens who are NATURAL persons. No aliens, EXCEPT only by way of legal succession or if the acquisition was made by a former natural-born citizen (Art XII, Secs. 7 and 8) Corporations are only allowed to LEASE, 50 years, renewable

Cruz v. DENR (IPRA Case) 

Indigenous Peoples Rights Act (IPRA) o Indigenous Peoples (IPs) – people who maintained distinct cultures and traditions; not integrated into the mainstream; with distinct concept of ownership (common ownership) o Ancestral Domain – nobody can take claim of sole private ownership, limited private ownership for IPs (residential, farm lots) o IPRA formalizes the IPs ownership of the land 10

o o  

Certificate of Ancestral Domain Title (CADT) Established the National Commission on Indigenous Peoples (NCIP) Justice Isagani Cruz questioned the constitutionality of the IPRA Justice Puno: Ancestral domain and lands are private property.

Military Reservation becomes inalienable and outside the commerce of man Foreshore Lands Foreshore and submerged areas irrefutably belong to the public domain and were inalienable UNLESS reclaimed, classified as alienable land open to disposition and further declared no longer needed for public service. Friar Lands private property Note: Property of the Catholic Church has a separate classification of its own. OWNERSHIP It is the independent right of a person to exclusive enjoyment and control of a thing or a right including its disposition and recovery subject only to the restrictions or limitations established by law and the rights of others. Your right ends when the right of others starts. Exercise your right so long as you're not going to injure others. Limitations 1. 2. 3. 4. 5. 6. 7. 8.

Benefit of the state (Police power, taxation (levy, distraint), eminent domain) Specific limitations imposed by law (servitude and easements) Specific limitations imposed by party transmitting ownership (will, contract) Limitations imposed by owner himself (voluntary servitude, mortgage, pledges) Inherent limitations arising from contracts with other similar rights (contiguity of property) Owner cannot make use of a thing which shall injure or prejudice rights of third person Acts in state of necessity True owner must resort to judicial process when thing is in possession of another, law creates a disputable presumption of ownership to those in actual possession

Kinds of Ownership 1. Full ownership - all rights of an owner 2. Naked ownership - the right to the use and the fruits has been denied o Naked ownership + usufruct = full ownership 3. Sole ownership - ownership vested in only one person 4. Co-ownership - ownership vested in two or more owners 11

Attributes of ownership 1. 2. 3. 4. 5.

jus possidendi - right to possess jus utendi - use jus fruendi - fruits jus abutendi - consume (and also transform or abuse) jus disponendi - dispose o DATE  Destroy  Alienate  Transform  Encumber 6. jus vindicandi - recover 7. jus accesionis - accessories Surface Right of an Owner if a person owns a piece of land, it is understood that he also owns its surface, up to the boundaries of the land, with the right to make thereon allowable constructions, plantings, and excavations, subject to: 1. 2. 3. 4. 5.

servitudes or easements special laws - Mining Law ordinances reasonable requirements of aerial navigation principles on human relations and prevention of injury to rights of 3rd persons

Questions: 

You put an electric perimeter fence with warning around your house. A kid accidentally threw a ball inside your compound. He tried to climb up the fence and was injured. There was nobody around and he cannot read. Are you liable? o Case to case basis o If there is a local ordinance and you violated it you are liable. Otherwise, you may not be liable. o You can do anything with your property subject to the limitations of the law. o If its an attractive nuisance, you are liable for the injury of the kid. o Warnings are valid defense.

Real right - jus in re  

power of a person to obtain certain financial / economic advantages over a SPECIFIC THING enforceable against the whole world

Personal right - jus in personam  

right directed to a person power to demand from another 12

If seller failed or refused to deliver car you have paid for (full price), your have a personal right against the seller and once it is delivered, you have a real right over the thing. Recovery of Ownership Art. 434 In an action to recover, the property must be identified, and the plaintiff must rely on the strength of his title and not on the weakness of the defendant’s claim. Prove two things: 1. identity of the land claimed 2. his title thereto Proofs of ownership:     

Transfer certificate of title Tax declarations Official receipt Deed of sale Certificate of registration

Recovery of Property 

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Personal Property o Replevin/Manual Delivery  used when you are the owner already  If there is doubt on who the owner is, CANNOT be exercised  On the other hand, specific performance is a remedy when there is no delivery despite demand and you are not yet the owner of the property Real Property o Forcible Entry/Unlawful Detainer (accion interdictal)  faster and easier  ejectment

Forcible entry is a summary action to recover material or physical possession of real property when a person originally in possession was deprived thereof by FISTS: 1. 2. 3. 4. 5.

Force Intimidation Strategy Threat Stealth

Forcible entry is ILLEGAL FROM THE VERY BEGINNING 

Action must be brought 1 year from dispossession or in the case of strategy or stealth, 1 year from the time of discovery 13

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1 year from demand - vacate

Unlawful Detainer is LAWFUL IN THE BEGINNING AND BECAME UNLAWFUL LATER ON  

1 year - expiration of lease rental How to settle: o Katarungan Pambarangay Law (natural persons)  No lawyer is allowed  same barangay  Settle amicably, 2 meetings, mandatory except in the case of corporations  If boundary line is just adjacent to each other, still under barangay proceedings  Certificate to file action is given by barangay if NO agreement is reached  MTC summary proceedings (60-90 days)  Judge shall be charged administratively if no decision  No trial proceedings o

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Accion Publiciana - Recovery of Possession  can still be filed after the lapse of 1 year prescriptive period  RTC in regular proceedings  Issue is who has the right to possess, not own Accion Reivindicatoria - Recovery of Ownership  Civil proceedings - proper RTC  Dispute on land  Long-term lease

Principle/Doctrine of Self-Help right to counter force with force in the defense of property To justify 1. Defending must be the owner or the lawful possessor 2. Reasonableness of the force 3. Must be exercised only at the time of an actual or threatened dispossession or immediately thereafter 4. The person against whom force is employed has acted or is acting unlawfully

Art. 429- force may be used even without such threatened bodily danger provided that defense and not vengeance is involved. Use of a hand gun against a robber who already drove away may be excessive. Doctrine of Incomplete Privilege / State of Necessity Art. 432 14

The owner of a thing has no right to prohibit the interference of another with the same, if the interference is necessary to avert an imminent danger and the threatened damage, compared to the damage arising to the owner from the interference, is much greater. The owner may demand from the person benefited indemnity for the damage to him. Requisites from Justifying Circumstances Art. 11 of RPC paragraph 4 1. That the evil sought to be avoided actually exists 2. That the injury feared be greater than that done to avoid it 3. That there be no other practical and less harmful means of preventing it

Hidden Treasure Art. 438 Hidden treasure belongs to the owner of the land, building, or other property on which it is found. Nevertheless, when the discovery is made on the property of another, or of the State or any of its subdivisions, and by chance, 1/2 thereof shall be allowed to the finder. If the finder is a trespasser, he shall not be entitled to any share of the treasure. If the things found be of interest to science or the arts, the State may acquire them at their just price, which shall be divided in conformity with the rule stated. Art. 439 Requisites of Hidden Treasure 1. Hidden and unknown deposit (finding it would indeed be a discovery) 2. Consists of money, jewelry, or other precious objects (does not include minerals) 3. Their lawful ownership DOES NOT appear.  

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If deliberately hidden, it is not a hidden treasure as long as owner can prove his ownership. If true owner has forgotten where he kept the same and has given up hope of ever recovering it, the object may now be appropriated by another since it has already become abandoned property. If the ownership is known and the owner is already dead, property must go the the owner's rightful heirs. If laborers were employed precisely to look for the treasure, they will get nothing insofar as the treasure is concerned.

By chance  

By good luck implying that one who intentionally looks for the treasure is embraced in the provision It is extremely difficult to find hidden treasure without looking for it deliberately.

Questions: 15

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A believing B's land contained hidden treasure, asked B's permission to look for it. B gave his permission and A discovered the treasure. How much should A get? o A should get 1/2 even if the finding was a result of deliberate hunt. It would be presumptuous to conclude that the landowner intended to renounce all his rights. o The same applies even if A used a mechanical device to track the treasure. A hired B to dig a deep well on the property of A. B accidentally dug up a box. It contains precious objects and jewelries, gold bars, coins, etc. At the bottom of the box is an inscription: Property of X. Who owns the property? o Property is not a hidden treasure because lawful ownership appears. X owns the property. If hidden treasure was found through a map received or based on a tip, is Art. 438 still applicable? What about treasure hunt or a map inherited from previous generations? o Depends on the definition of by chance. There are two interpretations. o But it is deemed that the Code Commission meant deliberate hunt to be covered by "by chance" according to Paras.

SUMMARY Is it a hidden treasure based on Art. 439? YES   

Discovered by chance or good luck and finder is not trespasser? o Apply Art. 438 Discovered by chance but trespasser? o Art. 438 not applicable Not discovered by chance? o Art. 438 not applicable

NO 

Art. 438 not applicable

Provided it is found by chance: Owner = Finder 100% Owner /= Finder 50% each  

Except if the finder is a trespasser 0% and 100% for owner Except if it is of interest to arts and sciences, government may exercise eminent domain and exchange it for a just price.

Accession Art. 440 The right of an owner of a thing, real or personal, to become the owner of everything which is produced thereby, or incorporated or attached thereto, either naturally or artificially. 16

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accession discreta o products or fruits of a thing o young of animals or fruits of a tree accession continua o those incorporated or attached  real property  accession industrial ex. buildings, plants  accession natural ex. alluvion, avulsion  personal property  conjunction/adjunction  commixtion/confusion  specification

Fruits   

natural fruits - spontaneous products of the soil, the young of animals and other products of the soil industrial fruits - Those produced by land of any kind through cultivation or labor civil fruits - the rents of buildings, price or lease of land and other property and other similar income

ACCESSION FOLLOWS THE PRINCIPAL The owner of the land owns the building, fruits, and improvements or repairs made thereon. The landowner is further presumed to have made the works, sowing, and planting on the land unless the contrary is proved.

Art 447 The owner of the land makes plantings, constructions, or works with the materials of another Rights and obligations of landowner Landowner acted in good faith:  

He becomes owner of the materials but he must pay for their value. EXCEPTION: when it can be removed without destruction to the work made or to the plants, the owner of the materials can remove them.

Landowner acted in bad faith: 

He becomes owner of the materials but he must: o pay for their value 17

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o pay for damages EXCEPTION: when the owner of the materials decides to remove them whether or not destruction would be caused and there will still be damages

Rights and obligations of owner of the materials Landowner acted in good faith:  

He is entitled to reimbursement. He is entitled to removal if no substantial injury will be caused (limited right of removal)

Landowner acted in bad faith:  

He is entitled to reimbursement and damages (if he prefers not to remove materials). He is entitled to ABSOLUTE right of removal and damages regardless if there will be damage.

BAD FAITH = DAMAGES Note: Party in bad faith may claim reimbursement for necessary expenses (always reimbursable) and the expenses for gathering and preserving the fruits, if any. BUILDERS OF GOOD FAITH Art. 448     

applies when the builder believes that he is the owner of the land or that by some title he has the right to build thereon or that at lease he has a claim of title thereto applies to both private and public land IMMOVABLE PROPERTY does not apply to buildings or improvements that are transferable in nature. If it is transferable, there is no accession and the builder must remove the construction. The proper remedy of the landowner is an action to eject the builder from the land (Alviola v. CA).

The owner of the land on which anything has been built, sown, or planted in good faith, shall have the right to 1. appropriate as his own the works, sowing, or planting, after payment of the indemnity provided for in Art. 546 and 548 o buy the improvements o if landowner chose this but he cannot pay, the builder has a right of retention until the landowner is fully paid of the current fair market value 2. or to oblige the one who built or planted to pay the price of the land and the one who sowed, the proper rent o sell the land 18

EXCEPTION: if the value of the land is considerably more than that of the building or trees, the builder/planter cannot be obliged to buy the land. He shall pay reasonable rent, if the owner of the land does not choose to appropriate the building or trees after proper indemnity. Parties shall agree to terms of lease. In case of disagreement, the court shall fix the terms thereof. Remedies if builder cannot pay value of a land which is NOT considerably higher than the value of improvement 1. assume lessor-lessee relation 2. landowner may file an action for recovery of land 3. have the improvements removed at the expense of the builder o remotion - demolition

No. 1 remedy is not the forced lease referred to in the exception above. If the value of land is considerably higher than improvement, there will be forced lease. Court shall fix the rent if the parties cannot agree. Right of choice always belongs to the landowner      

Landowner's right is older and by principle of accession, he is entitled to ownership of the accessory thing Good faith of builder is immaterial, the option still belongs to the landowner Right of choice will never shift. Landowner cannot refuse to exercise his options and compel builder to remove the improvements. Landowner cannot change his option once made because a contract is perfected once it is communicated to the builder. Court cannot dictate, only the landowner can decide.

Good faith is always presumed.  

You can still be considered in good faith even if you are negligent. Persons who occupy land by virtue of tolerance of the owners are not possessors in good faith.

Payment Amount to be refunded to the builder should be the current fair market value. Right of retention  

Applicable if landowner cannot pay immediately But not applicable to properties of public dominion because public interest is involved.

Builder in bad faith

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



A builder in bad faith is not entitled to anything and is liable for damages. But he is entitled to reimbursement for (a) necessary expenses and (b) expenses for the production, gathering, and preservation of fruits. Landowner can also compel builder of bad faith to buy land even if it is considerably higher in value than improvement.

BF + BF = GF The rights of one and the other shall be the same as though both had acted in good faith. It is understood that there is bad faith on the part of the landowner whenever the act was done with his knowledge and without opposition on his part. ALLUVION AND ACCRETION Accretion - process whereby the soil is deposited along the banks of the rivers. Alluvion / Alluvium - the increment which lands abutting rivers gradually receive Alluvion must be the exclusive work of nature. Art. 457 To the owners of lands adjoining the banks of rivers belong the accretion which they gradually receive from the effects of the current of the waters. Riparian owner  Riparian - rivers  Owns a land situated on the bank of a river  Also embraces littoral owners, owners of land bordering the shore of the sea, or lake or other tidal waters.  The littoral is the coastal region including both the land along the coast and the water near the coast of the shore zone between high and low watermarks. Requisites 1. The deposit must be gradual and imperceptible. 2. The alluvion must be the result of the action of the current of the waters of the river, lake, like Laguna de Bay. o NOT by sea o NOT man-made 3. The land must be adjacent to the bank of the river. Riparian owner automatically acquires the accretion. No need to apply for title. Presumption is that the change was gradual and caused by alluvion in the absence of proof as to whether the change is by accretion or avulsion. AVULSION Whenever the current of a river, creek or torrent segregates from an estate on its bank a known portion of land and transfer it to another estate. 20

Owner should recover: 1. Within two years for the estate 2. Within 6 months for the uprooted trees owner shall pay for expenses incurred in gathering them or putting them in a safe place Otherwise, they shall belong to the owner of the land upon which they have been cast. He will own it by right of accession. Transfer by earthquake There is no opinion by SC But Tolentino said yes, it may apply.

ALLUVION

AVULSION

deposit of soil is gradual

Sudden and abrupt process may be seen

soil cannot be identified

Identifiable and verifiable

belongs to he owner of property ti which it is attached

belongs to owner from whose property it was detached

no prescription; automatic ownership without need of applying for title

owner should recover within 2 years for the estate and 6 months for the trees

RIVERS AND ISLANDS Rivers owned by state whether navigable or non-navigable (floatable / non-floatable)   

running water river bed river bank

If dried up - still owned by the state Art. 461 River beds which are abandoned through the natural change in the course of the waters ipso facto belong to the owners whose lands are occupied by the new course in proportion to the area lost. However, the owners of the lands adjoining the old bed shall have the right to acquire the same by paying the value thereof, which value shall not exceed the value of the area occupied by the new bed.

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Questions: 

A and B's property are adjacent to old river bed that is now dried up. A new river bed is formed that split B's property into 3 lots. Who will acquire ownership of the new river bed? o NRB - State o B can acquire old river bed o A may acquire ownership too by paying if B chooses to sell it o Excess land in ORB will belong to the state o If ORB > NRB, State will not pay B. It is part of the risk of being a riparian owner.

Islands General Rule - State owns the islands If formed - sea, lake, navigable, or floatable rivers - State If formed in non-navigable / non-floatable river:   

riparian owner owner of the land along the nearer margin and no specific acts of possession is required if equidistant, divided between the two riparian owners longitudinally in halves

ADJUNCTION, MIXTURE, SPECIFICATION Art. 466 Whenever two movable things belonging to different owners are, without bad faith, united in such a way that they form a single object, the owner of the principal thing acquires the accessory, indemnifying the owner thereof of its value. Accessory ----> principal Adjunction/Conjunction   

Process by which two movable things belonging to different owners are united in such a way that they form a single object. May be done in good faith or bad faith It is material to know good faith or bad faith

Example: A varnishes his chair with the varnish of B. Gold ring is attached to diamond Art. 467 The principal thing - that to which the other had been united as an ornament or for its use or perfection Gold ring + diamond Diamond is merely an accessory to the gold ring even if it is of greater value Importance and purpose Intention of the parties If Art. 467 cannot determine which is the accessory: Test to Determine Principal and Accessory 22

1. 2. 3. 4.

Value Volume Merits (combined consideration of utility and volume) The court will determine all things being equal

Special Rule:  

In painting and sculpture, writing, printed matter, engraving and lithographs, the board, metal, stone, canvas, paper or parchment shall be deemed the accessory thing. What has been written / printed is of greater importance

Art 469 If the things united can be separated without injury, their respective owners may demand their separation. EXCEPTION: Nevertheless, in case the thing united for the use, embellishment, or perfection of the other (ACCESSORY), is much more precious than the principal thing, the owner may demand its separation even though the thing to which it has been incorporated may suffer some injury. Para. 1 - applicable only to soldering and inclusion Bad Faith - Owner of Accessory  

made the incorporation in bad faith, he shall lose the thing incorporated damages

Bad Faith - Owner of Principal 



Owner of accessory may choose: o Owner of principal paying the owner of accessory the value of the accessory  Delivery of thing equal in kind and value  Or payment of price as appraised by experts  Sentimental value must be considered o The accessory be separated even if it will destroy the principal thing Damages in both choices

Note: If either one of the owners made the incorporation with the knowledge and without objection of the other - good faith Mixture Combination or union of materials where the respective identities of the component elements are lost.  

Commixtion - solids Confusion – liquids

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Rules for Mixture 1. Mixture is cause by one owner in good faith or by will of both owners, or by chance (accident) or by a common agent o Co-ownership o Each owner acquiring an interest or right proportional to the value of his material 2. Mixture is made by one owner in bad faith then o he loses his material (in favor of the other) o damages BF + BF = GF Note: If there is negligence - culpa aquiliana; indemnify for damages Specification   

Giving new form to another's material through application of labor In general, accessory follows the principal rule applies here. example: baking a cake with flour of another; using the cloth of another to make a suit

Rules for Specification 1. Worker (principal) - Good faith o appropriate the new thing and indemnify for the materials o you can get the thing but you need to pay for the material used o EXCEPTION: material used is more precious than the new thing formed o  

the owner may get the new thing but pay for the work/labor or the owner may demand indemnity for the material 2. Worker (principal) - Bad faith - the owner of the material may: o appropriate the work without paying for the labor o demand indemnity plus damages o EXCEPTION: The option of appropriation is not available if the value of the resultant work is more valuable for artistic or scientific reasons. Sentimental value is considered in the preceding articles.

ADJUNCTION/CONJUNCTION

MIXTURE

SPECIFICATION

involves at least 2 things

involves at least 2 things

may involve 1 thing only may be more but form is changed

as a rule, accessory ---> principal

as a rule, co-ownership

as a rule, accessory ---> principal 24

things joined retain their nature

things mixed/confused may either retain or lose their natures

the new object retains or preserves the nature of the original object

QUIETING OF TITLE Quieting of Title   

prevent or remove cloud from being cast upon title to real property or any interest therein normally for lands the cloud which is apparently valid but in truth is invalid, ineffective, voidable, or unenforceable must be due to: o PRICE (list is exclusive) o Proceeding  reconstitution of title  you lost your title and somebody filed for another title so there are 2 titles o Record  recorded with Register of Deeds o Instrument  mortgage, deed of sale discontinued o Claim o Encumbrance  any right or interest that exists in someone other than the owner of an estate an d that restricts or impairs the transfer of the estate or lowers its value

  

Boundary dispute or ejectment is not a proper case for quieting If your case is not premised on PRICE, there is no basis to file for quieting of title. If M occupied X's lot without X's consent, it is a case of forcible entry only (FISTS)

Prescription  

If plaintiff is in possession, it is imprescriptible. If not, 10 years from knowledge of PRICE. o As property owner, you should be vigilant enough in checking your property especially if you are not in possession.

CO-OWNERSHIP  

When the ownership of an individual thing or right belongs to different persons Form of trust and every co-owner is a trustee for the others. Before the partition of a land or thing held in common, no individual or co-owner can claim title to any definite portion thereof.

Property relation of a man and woman living as husband and wife / adulterous relationship 

Co-ownership applies to man and woman cohabitating 25



Does not apply if one of the parties is legally married to another at the time of the cohabitation

Exercise of rights     



acts of administration and acts of ownership both owners may simultaneously exercise their right you cannot prevent other co-owners in exercising their right exercise of right of 1 co-owner --> exercise of right in behalf of other co-owners each co-owner may use the thing owned in common provided it is in accordance with the purpose it is intended and in such a way as to not injure the interest of the co-ownership or prevent others from exercising their rights the purpose may be changed by agreement, express or implied

Can co-owner sell entire property?     

NO. His right is only to the extent of his own. It is valid but will only affect his own share (ideal share/interest) Also called PRO INDIVISO right No claim of specific portion because there is no partition yet so you cannot sell a specific portion A sale of the entire property by one without consent of others is NOT null and void; buyer is made co-owner of the property.

Note: if it is a conjugal property (husband and wife) and 1 spouse sells the property, sale is VOID. Can you lease the property owned in common? 

Yes.

Mortgage  

Co-owner does not lose part of his ownership when his share is mortgaged without his consent and knowledge. Mortgage of inherited property is not binding against co-heirs who never benefited.

Is it possible to convert property from agricultural to commercial lot because it will generate more income?  

In cases of alteration, there should be unanimous consent. If government may take property due to non-conversion and yet one co-owner still disagrees, the remedy is to go to court.

Note: Sale of a portion is an alteration. There should be unanimous consent. May repairs for preservation be undertaken by one of the co-owners even without the consent of the other co-owners? 

Yes, the co-owner need only if practicable, first notify the other co-owners. 26



Lack of notice will not exempt others from contributing. Co-owner may compel other co-owners to contribute for expenses for the preservation of the right owned in common.

What about expenses for improvement or embellishment?  

Matter of administration Needs consent of majority of the co-owners

Right of redemption Only when co-ownership exists Questions:   

 

A, B, C, D, E own a beach house A, B, C, D are abroad and E is in the Philippines The property is already dilapidated and E took it upon himself to improve the beach house: 1. changed the roof 2. steel post reinforced by concrete 3. painted the house green 4. put up a wall in front to protect it from the waves 5. swimming pool 6. chairs and benches near the pool 7. put up a perimeter wall and gate for security 8. landscaping with plants E decided to rent out the property as a resort. Are those above mentioned reimbursable? o 1, 2, 4 necessary expenses - reimbursable o 3, 5, 6 useful - majority consent, acts of administration o 7 - necessary because used for protection o 8 - luxurious

Necessary expenses  

NO right of removal Always reimbursable even to a party in bad faith or even if no consent

Useful (increase value) and Luxurious (decorate, embellish) expenses  

Limited right of removal - can only remove if it will not cause damage Optional reimbursement

Failure to reimburse or cannot get consent of one co-owner to repair property 

Go to court as remedy

Legal or juridical dissolution of the co-ownership

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



When thing owned in common is indivisible, the property may be alloted to one of the coowners who shall indemnify the others or sold at a public auction and proceeds distributed among co-owners, if they cannot agree that it be alloted to one. Physically divisible but dividing will render it useless/impractical o 50 sqm lot divided between 10 heirs o Same as above o May be assigned to one co-owner and others shall be paid o If nobody is interested, it may be sold at a public auction and proceed will be divided.

Partition     

May be exercise anytime Separate, divide, assign a thing held in common No particular mode; judicially or mere agreement (extrajudicial) No need to be in writing Agreement to keep the thing undivided: o Co-ownership -10 years, renewable to another 10 years o Inheritance or donation with condition of co-ownership - 20 years maximum

Repudiation of 3rd parties    

General rule: Cannot oppose You cannot repudiate (disregard the partition) EXCEPTION: (1) If there is already an opposition and partition proceeded and (2) if it was made in fraud of creditors to escape liability If (1) will result to damage/prejudice to 3rd party, he may go to court.

Repudiation of Co-owner  

General rule: Prescription will not arise against a co-owner. EXCEPTION: acquisitive prescription is possible in case of repudiation but the following must concur:  o



performed unequivocal acts of repudiation amounting to an ouster of the cestui que trust or the other co-owners o that such positive acts of repudiation have been made known to other co-owners o evidence that is clear and convincing exercise as a repudiation of the other owners Repudiation means disregarding co-ownership and regarding property as one's own o E acquired Transfer Certificate Title in his name and cancelled co-ownership o Sale of property owned it common  If nobody questions the sale, VALID  If 10 years ended without question, VALID o Conversion of property's purpose o Prescription will arise after the lapse of 10 years from issuance of title  Then E has successfully repudiated and will become sole owner

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POSSESSION Possession Holding of a thing or enjoyment of a right  

concept of owner concept of holder

Acquired by   

material occupation of thing or exercise of right subjection of the thing/right to the action of our will proper acts and legal formalities established for acquiring such right

If you are in possession, presumption is you are the rightful possessor. Anyone who has a claim against your possession must establish that you do not have the right to possess. It must be proven in court even if there is a title. Possession in good faith is always presumed. The moment you are informed of the flaw, good faith ceases. Improvements    

Same as co-ownership Necessary - preservation, prevention of waste, deterioration or loss of the thing Useful - add value or augment its income Luxurious - only for embellishment, convenience or enjoyment of particular possessors

Prescription 

A possession in the concept of an owner may ripen into ownership o 10 years - good faith o 30 years - bad faith

Untitled Lands Posession must be OCEN    

Open Continuous (10-30 years) o if you left/abandoned property, no. of years accumulated will be disregarded Exclusive Notorious

Tacking of Possession  

You may "tack" predecessos-in-interest's possession to yours in case you inherited the property If they are in bad faith, you will not inherit it o EXCEPTION: if you are aware of the flaw, you are also in bad faith 29

Possession by Tolerance  

Possession by tolerance as in the case of squatters will never ripen to ownership. Bad faith

Delivery of Possession Mere execution of a deed of sale in a public document is equivalent to delivery DOCTRINE OF IRREVINDICABILITY Art. 559 FOR MOVABLES ONLY The possession of movable property in good faith is equivalent to a title. One in possession is deemed the lawful owner so you have to prove otherwise. "Nevertheless, one who has lost any movable or has been unlawfully deprived thereof may recover it from the person in possession of the same. If the possessor of a movable lost or of which the owner has been unlawfully deprived, has/acquired it in good faith at a public sale, the owner cannot obtain it without reimbursing the price paid therefore." Summary of Recovery or Non-Recovery Principle (a) owner may recover without reimbursement  

possessor in bad faith possessor in good faith if owner had lost the property or had been unlawfully deprived of it and the acquisition was through a private person o Loss of Property  Art. 1189: it is understood that the thing is lost when it perishes, or goes out of commerce, or disappears in such a way that its existence is unknown or it cannot be recovered o Unlawful deprivation  robbery - with violence or force upon things  theft - taking of property without consent  swindling (estafa) - defraud another causing him to suffer damage  abuse of confidence  false pretense / fraudulent acts

(b) owner may recover but should reimburse 

possessor in good faith and acquired property at a public sale or auction

(c) owner cannot recover, even if he offers to reimburse, whether or not there is loss or unlawful deprivation 



possessor in good faith and acquired property by purchase from a merchant's store, or in fairs, or markets in accordance with the Code of Commerce and special laws (Art. 1505). o legitimate stores, not reputed to be selling stolen items the owner by his conduct precluded from denying seller's authority to sell (estoppel) 30



holder of negotiable document

EDCA v. Santos 



 

In EDCA v. Santos, there is no unlawful deprivation when the seller was paid by a check that was dishonored/bounced by an impostor buyer. Cruz being an impostor or the bounced check is not unlawful deprivation. The transaction between EDCA and Cruz is still a valid sale even if there is misrepresentation. EDCA is just considered an unpaid seller. o Remedies:  file case to collect payment from Santos  file criminal case (BP 22) There is transfer of ownership in the sale between EDCA and Cruz and the subsequent sale between Cruz and Santos. (ACTUAL DELIVERY OF THE THING) Therefore, Santos is the rightful owner and EDCA cannot recover because there is NO unlawful deprivation.

Dizon v. Suntay    

Suntay entered into a sale on commission with Clarita Sison for a ring. Clarita through connivance with Melia Sison, the niece of her husband, pawned the ring to Dizon's pawnshop. Suntay demanded for the consideration but Sison just gave Suntay the pawnshop ticket. There is unlawful deprivation through estafa. Suntay may recover ring from Dizon without reimbursement.

Questions: 

What if Sison entered into a sale with Dizon as agreed upon through their contract of agency. Sison, however, ran away and did not give the payment to Suntay. Is there unlawful deprivation? o No. The sale between Sison and Dizon is valid. Sison complied with the contract with Suntay. There is no robbery, theft, nor estafa. Suntay's remedy is to go after Sison and NOT Dizon.

Prescriptive period for recovery 4 years - Good faith 8 years - Bad faith Art. 719. Whoever finds a movable, which is not treasure, must return it to its previous possessor Unknown - deposit it with the mayor of the city or municipality where the finding has taken place. o o o

finding - publicly announced by the mayor for 2consecutive weeks EXCEPTION: If the movable cannot be kept without deterioration, or without expenses sold at public auction eight days after the publication. Prescription of 6 months from publication in favor of finder but finder will reimburse expenses

31