Notes on Fundamentals of Property Ownership

01 December 2012

Prepared by: Fatima O. Dalangin

Notes on Fundamentals of Property Ownership I.

Steward Concept of Ownership - Ownership carries with it a social obligation. - Owners are obliged to use their properties to promote not only their interest but also the general welfare . Thus, he must exercise the right of ownership to benefit not only himself but society as well. - Right to abuse property is not functioned. - When a person’s landholding exceeds the requirements of his needs, or their utilization is not conducing to general welfare, the State may exercise its power to regulate and control ownership.

II.

Right to Own Land - Governed by 1987 Constitutionand Article XII: National Economy and Patrimony

NOTE: the 1987 Constitution emphasizes the stewardship concept of property ownership where the owner, recognizing the primacy of the state under REGALIAN DOCTRINE , exercises the right of ownership - Section 2. All lands of the public domain , waters, minerals, coal, petroleum, and other mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural resources are owned by the State . With the exception of agricultural lands, all other natural resources shall not be alienated . The exploration, development, and utilization of natural resources shall be under the full control and supervision of the State. The State may directly undertake such activities, or it may enter into co-production, joint venture, or production-sharing agreements with Filipino citizens, or corporations or associations at least sixty per centum of whose capital is owned by such citizens. Such agreements may be for a period not exceeding twentyfive years, renewable for not more than twenty-five years , and under such terms and conditions as may be provided by law. In cases of water rights for irrigation, water supply fisheries, or industrial uses other than the development of water power, beneficial use may be the measure and limit of the grant. The State shall protect the nation’s marine wealth in its archipelagic waters, territorial sea, and exclusive economic zone, and reserve its use and enjoyment exclusively to Filipino citizens. The Congress may, by law, allow small-scale utilization of natural resources by Filipino citizens, as well as cooperative fish farming, with priority to subsistence fishermen and fishworkers in rivers, lakes, bays, and lagoons. The President may enter into agreements with foreign-owned corporations involving either technical or financial assistance for large-scale exploration, development, and utilization of minerals, petroleum, and other mineral oils according to the general terms and conditions provided by law, based on real contributions to the economic growth and general welfare of the country. In such agreements, the State shall promote the development and use of local scientific and technical re sources.

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Section 3. Lands of the public domain are classified into agricultural, forest or timber, mineral lands and national parks.   Agricultural lands of the public domain may be

further classified by law according to the uses to which they may be devoted. Alienable lands of the public domain shall be limited to agricultural lands . Private corporations or associations may not hold such alienable lands of the public domain except by lease, for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and not to exceed one thousand hectares in area. Citizens of the Philippines may lease not more than five hundred hectares, or acquire not more than twelve hectares thereof, by purchase, homestead, or grant. -

Section 7. Save in cases of hereditary succession, no private lands shall be transferred or conveyed except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain.

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Section 8 . Notwithstanding the provisions of Section 7 of this Article, a natural-born citizen of the Philippines who has lost his Philippine citizenship may be a transferee of private lands, subject to limitations provided by law. RA 7042 (as amended by RA 8179) o Foreign Investment Act  Specifies entitlement and conditions for land acquisition for investment   purposes Batas PambansaBilang 185 o Guidelines on land ownership by former Filipinos for purposes of  residences

NOTES: - Transferee - The acquisition or transfer of private land refers to either voluntary or involuntary sale, devise or donation. Involuntary sale includes sales on tax delinquency, foreclosures, and executions of judgment.

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Qualifications of Former Filipinos Both laws define former Filipinos as citizens of the P hilippines from birth without having to perform any act to acquire or perfect their Philippine citizenship, who lost said Philippine citizenship, and who have the legal capacity to enter into a contract under Philippine laws

Particulars

Provision under BP 185

Size/Area of Coverage

• URBAN LAND: maximum of 1,000 sq. meters • RURAL LAND: maximum of one hectare

Provisions under RA 7042 as amended by RA 8179 URBAN LAND: maximum of 5,000 sq. meters •RURAL LAND:  maximum of three hectares

Land Acquisition for Both Spouses

• either of the spouses may avail of the privilege • in case both spouses wish to acquire lands for this purpose, the total area acquired should not exceed the maximum allowed

• either of the spouses may avail of the privilege • in case both spouses wish to acquire lands for this purpose, the total area acquired should not exceed the maximum allowed

Additional Land Acquisition

Limits to Acquisition of Land

Use of Land

In case he/she already owns urban or rural lands for residential purposes, he/she may acquire additional urban or rural lands, which when added to those he/she presently owns shall not exceed the authorized maximum area

In case he/she already owns urban or rural lands for business purposes, he/she may acquire additional urban or rural lands, which when added to those he/she presently owns shall not exceed the authorized maximum area

A person may acquire not more than two (2) lots which should be situated in different municipalities or cities anywhere in the Philippines, provided that the total area of these lots do not exceed 1,000 sq. meters for urban land or one (1) hectare for rural land for use as residence. An individual who has already acquired urban land shall be disqualified from acquiring rural land and vice versa.

A person may acquire not more than two (2) lots which should be situated in different municipalities or cities anywhere in the Philippines, provided that the total area of these lots do not exceed 5,000 sq. meters for urban land or three (3) hectares for rural land for business purposes. A transferee who has already acquired urban land shall be disqualified from acquiring rural land and vice versa. However, if the transferee has disposed of his/her urban land, he/she may still acquire rural land and vice versa, provided that this will be used for business.

For residence purposes

A transferee of residential land acquired under Batas PambansaBlg. 185 may still avail of the privilege granted under this law. Section 5 of Rule XII specifically states that “the land should be primarily, directly, and actually used in the performance or conduct of the owner’s

business

or

commercial

activities  in the broad areas of agriculture, industry and services including the lease of land, but excluding the buying and selling thereof”.

Special Requirements

The transferee should submit to the Register of Deeds of the province or city where the property is located a sworn statement stating the following: a. date and place of birth;

In addition to the usual registration requirements pertinent to the conveyance of real estate, the transfer contemplated shall not be recorded unless the transferee submits to the Registry of Deeds of the province or city where the land is situated, the

b. names and addresses of his/her parents, spouse, and children, if any; c. area, location, and mode of acquisition of landholdings in the Philippines, if any d. his/her intention to reside permanently in the Philippines; e. date he/she lost his/her Philippine citizenship f. country of which he/she is presently a citizen

Violations and Penalties 

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Violations through: misrepresentation in the sworn statement acquisition of land through fraudulent means failure to reside permanently in the land acquired within two (2) years from its acquisition, except when such failure is caused by force majeure shall be penalized by the following:  forfeiture of such lands and their improvements to theNational Government through escheat proceedings by the representative of the Solicitor General  permanent disqualification from availment of the privilege under this Act

following: a. certification of business registration  issued by the Bureau of Trade Regulation and Consumer Protection of the DTI; b. sworn stating statement  information required under Batas Pambansa 185; c. certification from assessor of municipality or province where the property is situated that the subject land for transfer is an urban or rural area; d. if an agricultural land is acquired, a certification from the Department of Agrarian Reform  that the land is a retained area of the transferor e. affidavit of the transferee attesting that his/her total landholding inclusive of the land to be acquired does not exceed the 5-hectare limit

NOTE: What is Urban Land? Land located in urban areas. Shall include the following: o All municipal jurisdictions (cities, provincial capitals) have a population density of at o least 1000 person per square kilometre Poblaciones or central districts with at least 500 persons per square kilometre o Barangays with at least 1000 inhabitants in which the occupation is predominantly other o than fishing or farming Poblaciones or central districts regardless of population size which have the following: o Street pattern  At least 6 establishments (commercial, manufacturing, recreational and/ or  personal services) At least three of the following:  Town hall, church or chapel with reliqious services at least once a  month Public plaza or cemetery  Market place where trading activities where held at least once a week  Public building (schools, hospitals, health center, library, puericultural)  GENERAL RULE ON OWNERSHIP OF LANDS Corporations or Partnerships at least 60% of the capital of which is owned by Filipinos are  entitled to acquire land in the Philippines Presidents, managers, or persons in charge of corporations, associations or partnerships o violating the provisions shall be criminally liable in lieu thereof

Only Filipino Citizens o By Birth (Natural Born  – one who is citizen from birth without having to perform an act to acquire or perfect his citizenship) o Naturalization Process Republic Act 9139 (The Administrative Naturalization Law of 2000)  Commonwealth Act No. 473 (Revised Naturalization Law)  Republic Act 9139 Commonwealth Act 473 a. Not less than 18 years old at the filing of a. Not less than 21 years old at the filing of Qualifications: petition petition b. Must be born in the Philippines and b. Must have resided in the Philippines for residing therein since birth a continuous period of not less than 10 c. GMC and believes in the underlying years principles of the Constitution, and must c. GMC and believes in the underlying have conducted himself in proper principles of the Constitution, and must irreproachable manner during his entire have conducted himself in proper period in the Philippines in his relation irreproachable manner during his entire with the duly constituted government as period in the Philippines in his relation well as with the community in which he with the duly constituted government as is living well as with the community in which he d. Must receive his primary and secondary is living education in any public/private d. He must have enrolled his minor educational institution duly recognized children of school age in any by DECS, where Philippine history, public/private schools recognized by the 

government and civics are taught and prescribed as part of school curriculum and where enrolment is not limited to any race or nationality; Provided, that his minor children of school age must be enrolled in the same school e. Must have known trade, business, profession or lawful occupation, from which he derives income sufficient for his support and if he is married and or has dependents, also that of his family. Provide, however, that this shall not apply to applicants who are college degree holders but are unable to practice their profession because they are disqualified to do so by reason of their citizenship f. Must be able to read, write, speak Filipino or any of the dialects of the Philippines g. Must have mingled with the Filipinos and evinced a sincere desire to learn and embrace the customs, traditions and ideals of the Filipino people

Office of Private Education of the Philippines, where the Philippine history, government and civics are taught/prescribed as part of the school curriculum, during the entire period of the residence in the Philippines e. Must own real estate in the Philippines worth not less than 5k or must have some known lucrative trade, profession or lawful occupation f. Must be able to speak and write in English or Spanish and any one of the principal Philippine languages

a.

Special Qualifications

b.

c. d. e.

Disqualifications

a.

Those opposed to organized government or affiliated with any association or group of persons who uphold and teach doctrine opposing all organized governments b. Those defending or teaching necessity of or propriety of violence, or personal assault or assassination for the success or predominance of their ideas

a.

b.

Having honourably held office under the Government of the Philippines or under that of any of the provinces, cities, municipalities or political subdivisions Established a new industry or introduced a useful invention in the Philippines Being married to a Filipino woman Having been born in the Philippines Been engaged as a teacher in the Philippines in a public or recognized private school not established for the exclusive instruction of children of a particular nationality or race for a period of not less than 2 years Those opposed to organized government or affiliated with any association or group of persons who uphold and teach doctrine opposing all organized governments Those defending or teaching necessity of or propriety of violence, or personal assault or assassination for the success or predominance of their ideas

c.

Petition for Citizenship

Polygamists or believers in the practice of polygamy d. Those convicted of crimes involving moral turpitudes e. Those suffering from mental alienation and incurable contagious diseases f. Those, who during their residence in the Philippines, have not mingled socially with the Filipinos, or who have not evinced a sincere desire to learn and embrace the customs, traditions and ideals of the Filipinos g. Citizens or subjects with whom the Philippines is at war, during the period of such war h. Citizens or subjects of a foreign country whose laws do not grant Filipinos the right to be naturalized citizens or subjects thereof

c.

1. Shall file with the Special Committee on Naturalization 5 copies, legibly typed and signed, thumb-marked and verified by him, with the latter’s passport sized photograph attached to each copy of the petition, and setting forth the following: - Petitioner’s name and surname, and any other name he used or by which he is known - Present and former places of residence - Place and date of birth, names and citizenship of his parents and their residences - Trade, business, profession or occupation, and if married, also that of his spouse - If married: date and place of his marriage, name, date of birth and birthplace, citizenship and residence of spouse - If annulled: date of decree of annulment of marriage and the court which granted the same - If has children: name, date and birthplace and residences of children

1.

d. e. f.

g.

h.

Polygamists or believers in the practice of polygamy Those convicted of crimes involving moral turpitudes Those suffering from mental alienation and incurable contagious diseases Those, who during their residence in the Philippines, have not mingled socially with the Filipinos, or who have not evinced a sincere desire to learn and embrace the customs, traditions and ideals of the Filipinos Citizens or subjects with whom the Philippines is at war, during the period of such war Citizens or subjects of a foreign country other than the United States, whose laws do not grant Filipinos the right to be naturalized citizens or subjects thereof Shall file with the competent court, a petition in triplicate, accompanied by 2 photographs of the petitioner, setting forth the following: - Name and surname - Present and former places of residence - Occupation - Place ad date of his birth - Single or married and the father of children - Name, age, birthplace and residence of the wife and each of the children - Approximate dater of his arrival in the Philippines - Name of the port of debarkation, and if he remembers it, the ship on which he came - Declaration that he has the qualifications required and that he is not disqualified for naturalization - That he has complied with the requirements - He will reside continuously in the Philippines from the date of the filing of the petition up to the time of his admission to Philippine citizenship

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Declaration that the petitioner possesses all the qualifications and none of the qualifications under this Act - A declaration that the petitioner shall never be a public charge - A declaration that it is the petitioner’s true and honest intention to acquire Philippine citizenship and to renounce absolutely and forever any prince, potentate, State or sovereign, and particularly the country of which the applicant is a citizen or subject 2. The application shall be accompanied by: - Duplicate original or certified photocopies of petitioner’s birth certificate - Duplicate original or certified photocopies of petitioner’s alien certificate of registration and native born certificate of residence - Duplicate original or certified photocopies of petitioner’s marriage certificate, if married, or the death certificate of his spouse, if widowed, or the decree annulling his marriage, if such was the fact. - Duplicate or certified photocopies of birth certificates, alien certificate of registration or native born certificate of residence if any, of petitioner’s minor children - Affidavit of financial capacity by the petitioner, and sworn statements on the GMC of the petitioner by at least 2 Filipino citizens of good reputation in his place of residence stating that they have personally known the petitioner for at least a period of 10 years and that said petitioner has in their own opinion all the qualifications necessary to become citizen of the Philippines and is not in any way disqualified - Medical certificate that he is not a user of prohibited drugs or

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Petition must be signed by the applicant in his own handwriting and be supported by the affidavit of at least 2 credible persons, stating that they are citizens of the Philippines and they personally know the petitioner to be a resident of the Philippines for the period required and a person of good repute and morally irreproachable, and that the said petitioner has in their own opinion all the qualifications necessary to become a citizen of the Philippines and is not in any way disqualified. Shall set forth the names and the post-office addresses of such witnesses as the petitioner may desire to introduce at the hearing of the case Certificate of arrival, and the declaration of intention must be made part of the petition.

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otherwise a drug dependent and that he is not afflicted with AIDS School diploma and TOR in the schools he attended in the Philippines. Should he have minor children, a certification that his children are enrolled in a school where Philippine history, government and civics are taught and are part of the curriculum Income tax return for the past three years, if gainfully employed

Citizenship Retention and Re-acquisition Act of 2003 (RA 9225) Natural-born citizenship by reason of their naturalization as citizens of a foreign  country are deemed to have re-acquired Philippine citizenship upon taking the oath of allegiance to the Republic (Retention of Philippine Citizenship) Unmarried child, whether legitimate, illegitimate or adopted, below 18yo, of  those who re-acquire Philippine citizenship shall be deemed citizens of the Philippines ( Derivative Citizenship) Those who retain or re-acquire Philippine citizenship shall enjoy full civil and   political rights (right to own real estate and right to practice one’s profession) Act of Congress Repatriation Jus Soli vs Jus Sanguinis Jus Soli: Right by land  Jus Sanguinis:  right by blood 

EXCEPTIONS TO THE RULE OF RIGHT TO OWN Alien acquisition of real estate in the Philippines is allowed in the following cases: 1. Acquisition before the 1935 Constitution 2. By hereditary succession if the acquire is a legal heir 3. Purchase by aliens of not more than 40% o f the units in a condominium project 4. Purchase by former natural born Filipino citizens a. Batas Pambansabilang 185 b. Foreign Investment Act of 1991 (RA 7042 as amended by RA 8179) 5. Filipina who married an alien re tains her Philippine citizenship (unless by her act o r omission she is deemed under law to have renounced her Philippine citizenship) may therefore still acquire real estate in the Philippines 6. Dual Citizenship Law (Republic Act No. 9225)

CONCEPT OF OWNERSHIP Independent right of a person to the exclusive enjoyment and control of a property including its  disposition and recovery subject only to the restrictions established by law and r ights of others. BUNDLE OF RIGHTS THEORY Fee simple consists of the so called “bundle of rights” which are inherent in or appurtenant to ownership, without any limitations or restrictions other than those imposed by law or contract. Includes the following Right to possess  Right to use and enjoy  Right to the fruits  Right to dispose  Right to recover or vindicate  Right to accession 

LIMITATIONS ON RIGHT OF OWNERSHIP GOVERNMENT OR LEGAL  1. Those imposed in general by the state in the exercise of: a. Power of taxation: power to impose and collect taxes and other charges on its citizens and residents b. Police Power: to impose restrictions on private rights for the safety of public welfare, order and security c. Power of Eminent Domain: to take private property for public use upon payment of just compensation 2. Those imposed by law a. Legal easements:  for the purpose of public use are the interest of private persons b. Requirement of legitimate succession c.  Zoning Ordinances: restrictions on the use of land in particular areas or the delineation of allowable uses in particular areas d. Building code: specifications such as height and setbacks i. BP 1096 e. Rent control  f. Urban and agrarian reform g. Subdivision regulations: requirements which may be complied within subdivision projects (open spaces, development specifications, etc) i. PD 957  ii. BP 220 h. Escheat : reversion of private property to the state due to the inestate death of the owner who is not survived by any heir CONTRACTUAL OR VOLUNTARY 1. Those imposed by the grantor of the property on the grantee by contract a. Donation b. Last will c. Usufruct: right to enter the property of another with the obligation of preserving its form and substance; right to enjoy t he fruits of the property

d. Deed/Use Restrictions in Subdivision Contracts 2. Those imposed by the owner himself  a. Voluntary easement: right to established easement which the owner may deem suitable and in the manner and form he deems best b. Lease Contract: temporary surrender of the right to possess, use and enjoy in favour of another person in exchange for appropriate consideration c. Mortgage ESTATE: the totality of assets (real estate + personal properties REAL ESTATE: land and all permanent improvement thereon CLASSIFICATION OF PROPERTY All things which are or may be the object of appropriation are considered either: (1) Immovable or real property; or (2) Movable or personal property

PERSONAL PROPERTY: MOVABLE The following are movable property (1) Those movables susceptible of appropriation which are not included in the preceding article; (2) Real property which by any special provision of law is considered as personal property; (3) Forces of nature which are brought under control by science; and (4) In general, all things which can be transported from place to place without impairment of the real property to which they are fixed The following are also considered as personal property: (1) Obligations and actions which have for their object movables or demandable sums; and (2) Shares of stock of agricultural, commercial and industrial entities, although they may have real estate. Movable property is either consumable or non-consumable. To the first class belong those movables which cannot be used in a manner appropriate to their nature without their being consumed; to the second class belong all the ot hers.

REAL PROPERTY: IMMOVABLE The following are immovable property (1) Land, buildings, roads and constructions of all kinds adhered to the soil; (2) Trees, plants, and growing fruits, while they are attached to the land or form an integral part of an immovable; (3) Everything attached to an immovable in a fixed manner, in such a way that it cannot be separated there from without breaking the material or deterioration of the object;

(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; (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 on a piece of land, and which tend directly to meet the needs of the said industry or works; (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 o f 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.

1. 2. 3. 4.

Classifications: Nature (land, buildings, trees, plants, etc.) **LAND is the first to be listed as immovable property or real property by nature Incorporation (machineries, statues, fish ponds, etc) Destination (mines, fertilizers, quarries, docks, etc) Analogy or Law (servitudes and other real rights over the property)

**NOTE: Whenever the word "muebles," or "furniture," is used alone, it shall not be deemed to include money, credits, commercial securities, stocks and bonds, jewelry, scientific or artistic collections, books, medals, arms, clothing, horses or carriages and their accessories, grains, liquids and merchandise, or other things which do not have as their principal object the furnishing or ornamenting of a building, except where from the context of the law, or t he individual declaration, the contrary clearly appears.

SURFACE, SUBSURFACE AND AIR RIGHT Land, in its legal signification, extends from the surface downwards to the center of the earth and extends upwards indefinitely to the skies. The surface and subsurface of rights of an owner entitle him to construct thereon any works or make any plantations and excavations without detriment to servitudes and special laws. Air right is the right of an owner to use and control the air space over his land subject to the requirements of ae rial navigation, laws, or contract. RIGHT TO HIDDEN TREASURE Hidden treasure belongs to the owner of the land, building, other property on which it is found. When the discovery is made on the property of another, or of the State or any of its subdivisions, and by chance, one-half of the treasure 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 arts, the State may acquire them at their just price, which shall be divided in conformity with the rule above stated. Hidden treasure, for legal purpose, is understood to be any hidden unknown deposit of money, jewelry, or other precious objects, the lawful ownership of which does not appear.

RIGHTS OF ACCESSION 1) In General  – The ownership of property gives the right by accession to everything which is produced thereby, or which is incorporated or attached thereto, whether naturally or ar tificially. 2) With Respect to Produce of Property – To the Owner belongs the: a) Natural fruits – the spontaneous product of the soil b) Industrial fruits  – those produced by land cultivation or labor c) Civil fruits – the rental income of buildings and /or lands 3) With Respect to Immovable Property: a) The owner of the land on which anything has been built, sown or planted in good faith shall have the right: aa) To appropriate as his own the works, sowing or planting after payment of indemnity p rovided by law bb) To oblige the builder or planter to pay the price of the land. However, the builder or planter cannot be obliged to pay for the land if its value is considerably more than t hat of the building or planting. In such case, he shall pay reasonable rent if the owner does not choose to appropriate the building after proper indemnity. The parties shall agree on the terms of the lease and in case of disagreement, the court shall fix the terms thereof. b) The owner of the land on w hich anything has been built, planted or sown In bad faith m ay: aa) Demand the demolition of the work or removal of the planting or sowing at the expense of the builder or planter bb) compel the builder or planter to pay the price of the land and the sower, the proper rent. The landowner is also entitled to damages from the builder planter or sower. cc) To the owners of land adjoining the banks of rivers belong the accretion which they gradually receive from the effects of the current of the water. dd) Whenever a river, changing its course by natural causes, opens a new bed through a private estate, the new bed shall become a public dominion.

CONCEPT OF TITLE - A person is deemed to have title to a property when he can exercise or has the bundle of rights over it. - Evidence or proof of ownership Tax declaration o Realty tax receipt o Deed of sale o Torrens Certificate of Title: best evidence of ownership because it is imprescriptible and o indefeasible. MODES OF ACQUIRING TITLE - Private Grant : voluntary transfer or conveyance of private property by a private owner, such as sale or donation. - Public Grant : acquisition of alienable lands of the public domain by homestead patent, free patent, sales patent, or other gove rnment awards. - Involuntary Grant:acquisition of private party against the consent of the former owners, such as foreclosure sale, execution sale, or tax sale - Inheritance: through hereditary succession - Reclamation: filling of submerged land

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 Accretion: acquisition of more lands adjoining the banks of rivers due to the gradual deposit of soil as a result of the river current Prescription:  acquisition of title by actual, open, continuous, and uninterrupted possession in the concept of owner for the period required by law

OWNERSHIP vs POSSESSION vs OCCUPATION 1. Ownership: bundle of rights without other limitations except those established by late or the owner himself  2. Possession: holding of a thing or enjoyment of a right a. Modes of acquiring i. By material occupation of a thing or the exercise of a right ii. By the face that it is subject to the action of our will iii. By the proper acts and legal formalities established for acquiring such right b. Loss of Possession i. Abandonment of the thing ii. Assignment made to another either by onerous or gratuitous title iii. Destruction of total loss of a thing or because it goes outside the commerce of man iv. Possession of another (by mere tolerance or violence) 1. If the new possession has lasted longer than one year 2. Real right of possession is not lost till after t he lapse of ten years c. Degrees of Holding i. Possession without any title whatsoever (thief or squatter) ii. Possession with juridical title iii. Possession in the concept of an owner (good faith) iv. Possession with a Title in Fee Simple (property ow ner) d. Elements: i. Animus possidendi: intent to possess ii. Animus corpus: a thing or a right that is susceptible to being appropriated 3. Occupation:  act of entering into, and taking over a parcel of land that appears vacant and abandoned. However, ownership of a piece of land cannot be acquired by occupation. ACQUISITION OF LAND OWNERSHIP - DONATION : act of liberality where a person disposes gratuitously of a thing or right in favour of another who accepts it Validity of the donation of an immovable must be made in a public instrument o - SUCCESSION: inheritance, by will or by operation of law - TRADITION : act of delivering the thing sold to the buyer by o Lining over material possession of the thing sold o Symbolic transfer of ownership thereof - STATE GRANT:tenant-farmers became landowners on the own right (ex. Comprehensive Agrarian Reform) - RECLAMATION: For the purpose of developing area into a business or commercial center, resettlement or housing project -  ACCESSION: ownership property gives the owner the right to everything which is: produced thereby (accession discrete) o incorporated or attached thereto (accession continua) o Islands 

Formed by the seas, on lakes and navigable or floatable rivers: belongs to the State Non-navigable and non-floatable rivers: belongs to the owners of the  margins of the banks nearest to re ach them In the change of river beds:  River beds which are abandoned through natural change in the course  of the water belong to the owners whose land are occupied by the new course in proportion to the area lost Owners of the land 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 Whenever a river changing its course by natural causes, opens a new  bed through private estate, this bed shall become o f public domain Whenever a current of river divides itself into branches, leaving a piece  of land or part thereof isolated, the owner of the land retains his ownership. He also attains it if a portion of land is separated from the estate by the current   Alluvium: gives to the owner of a land adjoining the banks of river or sea any accretion which is gradually received from the effects of the currents of water   Avulsion: current of a river, creek or torrent segregates from an estate a known portion of land To which the segregated part belonged to, retains the ownership of it  provided that he removes the same within two years OCCUPATION AND POSSESSION Occupation and possession does not by itself confer ownership o For possession must be peaceful and/or lawful  is “in the concept of an owner” that the continuous and uninterrupted for some  fixed time by law (prescription) 

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NOTE: The peaceful and adverse possession of land that is continuous and uninterrupted for a certain period of time may be converted into ownership of the land.  10years by ordinary prescription (with just title and in goo d faith)  30years by extraordinary prescription (without need of title and good faith)

PROPERTY IN RELATION TO THE PERSON TO WHOM IT BELONGS Property is either of public dominion or of private o wnership. The following things are property of public dominion: (1) Those intended for public use, such as roads, canals, rivers, torrents, ports and bridges constructed by the State, banks, shores, roadsteads, and others of similar character; (2) Those which belong to the State, without being for public use, and are intended for some public service or for the development of the national wealth.

All other property of the State, which is not of the character stated in the preceding article, is patrimonial property. (340a) 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. (341a) The property of provinces, cities, and municipalities is divided into property for public use and patrimonial property. (343)

Property for public use , in the provinces, cities, and municipalities, consist of the provincial roads, city streets, municipal streets, the squares, fountains, public waters, promenades, and public works for public service paid for by said provinces, cities, o r municipalities. All other property possessed by any of them is patrimonial and shall be governed by this Code, without prejudice to the provisions of special laws. Property of private ownership, besides the patrimonial property of the State, provinces, cities, and municipalities, consists of all property belonging to private persons, either individually or collectively.

OWNERSHIP IN GENERAL Art. 427. Ownership may be exercised ove r things or rights. (n) Art. 428. The owner has the right to enjoy and dispose of a thing, without other limitations than those established by law. The owner has also a right of action against the holder and possessor of the thing in order to recover it. (348a) Art. 429. The owner or lawful possessor of a thing has the right to exclude any person from the enjoyment and disposal thereof. For this purpose, he may use such force as may be reasonably necessary to repel or prevent an actual or threatened unlawful physical invasion or usurpation of his property. (n) Art. 430. Every owner may enclose or fence his land or tenements by means of walls, ditches, live or dead hedges, or by any other means without detriment to servitudes constituted thereon. (388) Art. 431. The owner of a thing cannot make use thereof in such manner as to injure the rights of a third person. (n) Art. 432. 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. (n)

Art. 433. Actual possession under claim of ownership raises disputable presumption of ownership. The true owner must resort to judicial process for the recovery of the property. (n) 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. (n) Art. 435. No person shall be deprived of his property except by competent authority and for public use and always upon payment of just compensation. Should this requirement be not first complied with, the courts shall protect and, in a proper case, restore the owner in his possession. (349a) Art. 436. When any property is condemned or seized by competent authority in the interest of health, safety or security, the owner thereof shall not be entitled to compensation, unless he can show that such condemnation or seizure is unjustified. (n) Art. 437. The owner of a parcel of land is the owner of its surface and of everything under it, and he can construct thereon any works or make any plantations and excavations which he may deem proper, without detriment to servitudes and subject to special laws and ordinances. He cannot complain of the reasonable requirements of aerial navigation. (350a) 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, one-half 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 of the arts, the State may acquire them at their just price, which shall be divided in conformity with the rule stated. (351 a) Art. 439. By treasure is understood, for legal purposes, any hidden and unknown deposit of money,  jewelry, or other precious objects, the lawful ownership of which does not appear. (352) Reference: Civil Code of the Philippines; Book II, and Handouts