(REVIEWER) Mickey Ingles Property Notes

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PROPERTY NOTES

PRELIMINARY PROVISIONS Art 414 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.

Rights as property   “property” is sometimes used to denote the thing with respect to which legal relations between persons exist – the res over which rights (particularly ownership) may be exercised – and sometimes to the rights with respect to the thing   either real or property •

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What’s a thing?   any object that exists and is capable of satisfying some human needs   includes both objects that are already possessed or owned and those that are susceptible of appropriation   more comprehensive term (than property), as there are things which are not susceptible of appropriation and they are not included in the concept of property •

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What’s property?   refers to any thing which is already the object of appropriation or found •

What is a real right?   Right or interest belong to a person over a specific thing   Without a definite passive subject against whom such right may may be personally enforced   Jus in re  re    The res res of  of a real right may be o  Personal property (as in pledge and chattel mortgage) o  Real property (easement, real mortgage) o  Either personal or real (as in ownership, possession, usufruct) •

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in the possession of man Requisites of property 1. Utility   Capacity to satisfy some human wants 2. Substantivity   Quality of having existence apart from any other thing 3. Appropriability   Susceptibility of being possessed by man   Res communes or common things are not capable of appropriation in their entirety, although they may be appropriated under certain conditions in a limited way, and thereby become property in law o  Electricity, oxygen, etc •

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Res nullius or a thing may have no owner because it has not yet been appropriated, or because it has been lost or abandoned by the owner. it constitutes property as long as it is susceptible of being possessed for the use of man o  Wild animals, hidden treasure Things cannot be considered considered as property when they are not susceptible of appropriation because of o  legal impossibility (you can’t sell your body while you’re alive, at least not legally) or legally) or o  physical impossibility (you can’t own the moon, at least not yet)  yet)  

 

If the res ofit a right is real property, the right itself is real property; otherwise is real personal property

Classification of real rights based upon dominion 1. Domino pleno – pleno – powers to enjoy a nd to dispose are un ited a. Dominion, civil possession, hereditary right 2. Domino menos pleno – pleno – powers to enjoy a nd dispose are separa ted a. Surface right, usufruct 3. Domino limitado – limitado – powers to enjoy a nd to dispose, thou gh united, are limited a. By a guaranty (mortgage, pledge) b. By a charge (easement) c. By a privilege (pre-emption, redemption) What is a personal right?   Right or power of a person   To demand from another as a definite subject   The fulfillment of the latter’s obligation.   Jus in personam or jus ad rem  rem    Personal right, or right of obligation, has the following elements: 1. Active subject (person in whom the right resides) 2. Passive s subject ubject (person against whom the right is available) 3. Object or prestation or the conduct (to give, to do, or not to do) 4. Juridical or legal tie which binds the parties to the obligation • •

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Mickey Ingles  Ateneo Law 2012, updated: May 15, 2012 Librat: No stamping please! ! 

+  Ad Majore Majorem m Dei Gloriam Gloriam

PROPERTY NOTES

 

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Real Right Definite active subject who has a right against all persons generally as an indefinite passive subject Object is generally a corporeal thing Created by ‘mode’ and ‘title’ Extinguished by the loss or destruction of the thing which it is exercised Directed against the whole world (actio (actio in rem  rem  rd against 3  persons)

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Personal Right Definite active subject and a definite passive subject

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Object always an incorporeal thing Created by ‘title’

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Personal right survives the subject matter

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Directed against a particular person (actio (actio in personam) personam)

What’s the importance of the classification into or immovables?   In private international law, general rule is movables that immovables are governed by the law of the country in which they are located, whereas movables are governed by the personal law of the owner which in cases is the law of his nationality or his domicile   In criminal law, usurpation of property can take place only with real property. On the other hand, robbery and theft can be committed only against personal property   In procedural law, actions concerning real property are brought in the RTC where the property is located, whereas actions involving personal property are brought in the court where either the defendant or plaintiff resides. o  Forcible entry and unlawful detainer for REAL property

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o   Replevin or manual delivery for PERSONAL In contracts, only real property can be the subject matter of real mortgage and antichresis, while only personal property can be the subject matter of mutuum, voluntary deposit, pledge In order that the donation of an immovable may be valid, it must be made in a public instrument. For movables, may be oral or in writing (if more than P5000, need only to be in a private instrument) For prescription (4 and 8 years years for movables; 10 and 30 years for immovables)

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Transactions involving real property must be recorded in the Registry of rd property to affect 3  parties. Not required with personal property, except for chattel mortgage cases. 415 The following are immovable property: Land, buildings, roads, and constructions of all kinds adhered to the soil; Trees, plants, and growing fruits, while they are attached to the land or form an integral part of an immovable; 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; 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; Machinery, receptacles, instruments or implements intended by the owner of the tenement for an industry or works which may be carried on ina building or on a piece of land, and w which hich tend directly to meet the needs of said industry or works; Animal houses, pigeon-houses, beehives, fish ponds or breeding places of similar nature, in cases their owner has placed htem 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; Fertilizer actually used on a piece of land; Mines, quarries, and slag dumps, while the matter thereof forms part of the bed, and waters either running or stagnant; 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; Contracts for public works, and servitudes and other real rights over immovable property.

Classes of immovable or real property (NIDA) 1. By nature (cannot be carried from place to place) 2. By incorporation (attached to an immovable in a fixed manner manner to be an integral part thereof) 3. By destination (placed in an immovable for the utility it gives) 4. By analogy (by express provision of law because it is regarded as united to the immovable property)

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Mickey Ingles  Ateneo Law 2012, updated: May 15, 2012 Librat: No stamping please! ! 

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PROPERTY NOTES

Lands, buildings, roads and constructions of all kinds   Must adhere to the soil   Buildings must be more or less of a permanent structure independent of and regardless of the ownership of the land on which it is erected since the law makes no distinction (so possible to mortgage building even if in the land of another, since it’s separate from the land   Roads, whether public or private, are immovable   Real property treated by the parties as personal property o  A building is by itself an immovable property irrespective of whether or not said structure and the land on which it is adhere to belong to the same owner o  A valid real estate mortgate can be constituted only on the building erected on the land belonging to another o  The parties to a contract of chattel mortgage may, by agreement, treat as personal property that which by nature would be real property (estopped! So they can be subject to a writ of replevin between parties) However, the chattel mortgage is not binding on third "  persons. •

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Statues, reliefs, paintings, or other objects for use or ornamentation   Immovable when: o  Placed on the immovable by the owner of the latter, and o  In such a manner that it reveals the intention to attach them permanently to the tenements   Not necessarily by him personally, can be by his agent   If placed by a person not the owner like a lessee, the object will not attain the character of immovable unless such person acts as an agent of the owner •

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Trees, plants and growing fruits   Immovable while they are: o  Attached to the land, or o  Form an integral part of an immovable   Once cut or uprooted, they become movable   Growing crops or fruits, or ungathered products or fruits, may be treated as personal property for the purposes of attachment, execution and the chattel mortgage law (Sibal v Valdez)   When growing crops are sold and before they are even harvested, the

Machinery, receptacles, instruments, or implements for an industry or works   Immovable only when: o  Placed by the owner of the tenement or his agent o  Industry or works must be carried on in a building or on a piece of land o  Machinery, etc must tend directly to meet the needs of the said industry or works   Machinery which is movable in its nature only becomes immobilized when placed in plant by the owner of the property or plant, but not when so placed by a tenant, a usufructuary, or any person having only a temporary right (Davao (Davao Saw Mill v Castillo)  Castillo)   o  Exception (becomes immovable): 1. Such person acted as the agent of the owner, or 2. Lease agreement states that the machines will pass over to the lessor after the expiration of the lease agreement ( US Valdez case) case)   Must be essential and be principal elements of an industry or works to the business, not merely incidental to business ( Mindanao Bus

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transaction is considered sale of movables because it is a given that they are to be gathered oras harvested for delivery Everything attached to an immovable in a fixed manner   Attachment must be such that o  It cannot be separated from the immovable o  Without breaking the material, or o  Deterioration of the object   If temporarily separated, will still be regarded as immovable if there is an intent to put them back (but there are different opinions to this)   Intent to attach permanently is essential – objects placed by humans with intention to permanent annexation lose their identity as movables •

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Company v Cityregisters, Assessor  )  o  Cash typewriters for hotels, restaurants, theaters are merely incidental, these businesses can continue on without them   them o  Machineries of breweries used in the manufacture of liquor, though movable by nature, are immobilized because they are essential to said industries  industries   For purposes of taxation, it doesn’t matter who placed the machines – the owner or mere lessee, as long as it is essential and principal elements of an industry. The term ‘real property’ may include things which should generally as personal property. It is a familiar phenomenon to see things classified as real property for purposes of

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Mickey Ingles  Ateneo Law 2012, updated: May 15, 2012 Librat: No stamping please! ! 

+  Ad Majore Majorem m Dei Gloriam Gloriam

PROPERTY NOTES

 

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taxation which on general principle might be considered personal property. (Meralco (Meralco v Central Board of Assessment Appeals – in this case, the storage tanks were placed by Meralco, who wasn’t the owner of the land, but it was still considered immovable)   Attachment or incorporation to immovable not essential, since they become immovable because of destination destination,, what is essential is their utility   utility

 Animal houses, pigeo n houses, beehives, fi sh ponds or breedi ng places of similar nature   Considered immovable:  immovable:   o  In case their owner has placed them or preserves them them   o  With the intention to have them permanently attached to the land  land   o  And forming a permanent part of it. it.   o  The animals in these places are included.  included.     Must permanently form part of the land and so intended by the owner   •

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Where it is personal property, the right itself is personal property o  Exception: case of contracts for public works which are considered real property

CHAPTER TWO: MOVABLE PROPERTY Art 416 The following things are deemed to be personal 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 personalty; 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.

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Fertilizers actually used on a piece of land   Immovable when when   o  Actually used on a piece of land  land     Fertilizers kept in a barn are not immovable immovable   •

Art 417 The following are also considered as personal property: 1. Obligations and actions which have for their object movables or demandable sums; 2. Shares of stock of agricultural, commercial and industrial entities, although they may have real estate.

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Mines, quarries and slag dumps   Immovable when when   o  While the matter thereof forms part of the bed bed   o  Meaning, the matter thereof remains unsevered from the soil  soil    Waters, either running or stagnant, are classified as immovables immovables   •

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Classes of movable or personal property 1. Property not included in Art 415 2. Considered personal property by special provision of law 3. Forces of nature brought under control by science 4. In general, all movable things a. Whether the property can be transported or carried from place to place; b.

Docks and structures, though floating   Immovable if   o  Intended by their nature and object  object   o  To remain at a fixed place on o  A river, lake or coasts coasts   •

5. Contracts for public works and servitudes and other real rights over immovables   Where the res of res of a real right is real property, the right itself is real property. So ownership is real property if the thing owned is immovable o  Loan is real property by analogy if secured by a real estate mortgage •

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Whether such change of lacation can be made made without injuring the immovable to which the object may be attached, and c. Whether the object does not fall within any one of the cases in Art 415 Obligations and actions (personal rights, they having a definite passive subject) Shares of stock Other incorporeal personal property a. Intellectual property such as copyrights, patents, etc

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Mickey Ingles  Ateneo Law 2012, updated: May 15, 2012 Librat: No stamping please! ! 

+  Ad Majore Majorem m Dei Gloriam Gloriam

PROPERTY NOTES

Art 418 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 others. Importance of classification:   Consumable goods cannot be the subject matter of a commodatum (unless for mere exhibition)   In a mutuum, the subject matter is money or other consumable thing

What’s dominion? 1. Not owned by the State but simply under its jurisdiction and administration for the collective enjoyment of all the people of the State 2. Purpose is to serve the citizens, not the State as juridical person 3. Rises from the fact that the State is the juridical representative of the social group

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Consumable   Depends on nature of thing itself   Can’t be used in a manner appropriate to their nature without being consumed •

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Depends on the intention or purpose parties Can be substitute substitute by another thing of of thethe s same ame kind, quantity and quality

 

Money, while characterized as a movable, is generic and fungible. (BPI (BPI v Franco)

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Art 420 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 States, 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 Three kinds of public dominion property 1. Intended for public use   Can be used by everybody 2. Not for public use but intended for some specific public service   Only be used by duly authorized people, such as government buildings, etc 3. Intended for the development of national wealth, even if not employed for public use or service   Minerals, coal, oil, forests •

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CHAPTER THREE: PROPERTY IN RELATION TO WHOM IT BELONGS Art 419 Property is either of public dominion or of private ownership Property is either of 1. Public dominion or property owned by the State (or its subdivisions) in its public or sovereign capacity and intended for public use and not for the use of the State as a juridical person 2. Private ownership or property owned by: a. The s state tate in its private capacity; capacity; known as as  patrimonial property b. Private persons, either individually or collectively Property is presumed to be State property in the absence of any showing to the contrary. (Regalian Doctrine)

Charging of fees to the public does not affect the public character of the road or its character as property for public use. What are other property of similar character to those intended for public use? 1. Public streams, river channels, river beds, etc 2. Accretions to the s shores hores of the sea 3. Submerged lands or lands reclaimed from the sea by the government   Mere reclamation of certain foreshore land does not convert these inalienable natural resources of the state into alienable or disposable lands of the public domain.   There must be a law or proclamation officially classifying them such. 4. Lands that disappeared into the sea •

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Mickey Ingles  Ateneo Law 2012, updated: May 15, 2012 Librat: No stamping please! !