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Property Book 2 New Civil Code OWNERSHIP


Thing - broader in scope for it includes both 1) public dominion or ownership (like rivers)
appropriable and non-appropriable objects. 2) private dominion or ownership (like a
There are three kinds of things, depending fountain pen)
on the nature of their ownership: SUBSTITUTION
(a) res nullius (belonging to no one) 1) within the commerce of man (or which may
- These things belong to no one, and be the objects of contracts or judicial
the reason is that they have not yet transactions)
been appropriated 2) outside the commerce of man (like
- i.e. fish still swimming in the ocean, or prohibited drugs)
because they have been abandoned Capability of Substitution:
(res derelictae) by the owner with the 1) fungible (capable of substitution by other
intention of no longer owning them. things of the same quantity and quality)
Other examples include wild animals 2) non-fungible (incapable of such
(ferae naturae), wild birds, and substitution, hence, the identical thing must be
pebbles lying on the seashore given or returned)
(b) res communes (belonging to everyone) ALIENABILITY
- While in particular no one owns 1) present property (res existentes)
common property, still in another 2) future property (res futurae)
sense, res communes are really DEPENDENCE
owned by everybody in that their use 1) Principal
and enjoyment are given to all of 2) Accessory
mankind EXISTENCE
- i.e. air we breathe, the wind, sunlight, 1) present property (res existentes)
and starlight. 2) future property (res futurae)
(c) res alicujus (belonging to someone) NATURE
- These are objects, tangible or intangible, 1) generic (one referring to a group or class)
which are owned privately, either in a 2) specific (one referring to a single, unique
collective or individual capacity. And object)
precisely because they can be owned, MATERIALITY
they really should be considered 1) tangible or corporeal (objects which can be
property. seen or touched, like the paper on which is
- i.e. your book, your shares of stock, your printed a P1,000 Bangko Sentral Note)
parcel of land 2) intangible or incorporeal (rights or credits, like
Property the credit represented by a P1,000 Bangko
- an object, is that which is, or may be, Sentral Note)
appropriated. MOBILITY
- Considered as a subject or course in law, All things which are or may be the object of
property is that branch of civil law which appropriation are considered either:
classifies and defines the different kinds of (1) Immovable or real property; or
appropriable objects, provides for their (2) Movable or personal property.
acquisition and loss, and in general, treats of (Article 414,NCC)
the nature and consequences of real rights. CUSTODY
- involves not only material objects but also 1) in custodia legis (in the custody of the
intangible things, like rights or credits. court)when it has been seized by an
Characteristics of Property officer under a writ of attachment or
(a) utility for the satisfaction of moral or under a writ of execution. (De Leon v.
economic wants Salvador, L-30871, Dec. 28, 1970).
(b) susceptibility of appropriation 2) free property (not in custodia
(c) individuality or substantivity (i.e., it can legis).
exist by itself, and not merely as a part of a
whole). (Hence, the human hair becomes IMMOVABLES
property only when it is detached from the Article 415, NCC
owner.)
Classifications of Property
(1) Land, buildings, roads and constructions of all (1) Those movables susceptible of appropriation
kinds adhered to the soil; which are not included in the preceding article;
(2) Trees, plants, and growing fruits, while they (2) Real property which by any special provision of
are attached to the land or form an integral law is considered as personality;
part of an immovable; (3) Forces of nature which are brought under control
(3) Everything attached to an immovable in a by science; and
fixed manner, in such a way that it cannot be (4) In general, all things which can be transported
separated there- from without breaking the from place to place without impairment of the real
material or deterioration of the object; property to which they are fixed.
(4) Statues, reliefs, paintings, or other objects for (5) Obligations and actions which have for their
use or ornamentation, placed in buildings or object movables or demandable sums; and
on lands by the owner of the immovable in (6) Shares of stock of agricultural, commercial and
such a manner that it reveals the intention to industrial entities, although they may have real
attach them permanently to the tenements; estate.
(5) Machinery, receptacles, instruments or Movable property is either
implements intended by the owner of the Consumable
tenement for an industry or works which may movables which cannot be used in a
be carried on in a building or on a piece of manner appropriate to their nature
land, and which tend directly to meet the without their being consumed
needs of the said industry or works; Non-Consumable
(6) Animal houses, pigeon-houses, beehives, fish to the second class belong all the
ponds or breeding places of similar nature, in others
case their owner has placed them or (ART. 418, NCC)
preserves them with the intention to have
them permanently attached to the land, and Manresas Three Tests
forming a permanent part of it; the animals in (a) If the property is capable of being carried from
these places are included; place to place (test by description);
(7) Fertilizer actually used on a piece of land; (b) If such change in location can be made without
(8) Mines, quarries, and slag dumps, while the injuring the real property to which it may in the
matter thereof forms part of the bed, and meantime be attached (test by description); and
waters either running or stagnant; (c) If finally, the object is not one of those
(9) Docks and structures which, though floating, enumerated or included in Art. 415, then the
are intended by their nature and object to inevitable conclusion is that the property is
remain at a fixed place on a river, lake, or personal property (test by exclusion). (3 Manresa
coast; 46-47).
(10) Contracts for public works, and
servitudes and other real rights over Properties of Public Dominion
immovable property. Those which are intended for public use
Those which belong to the State, without
Classification of Real Property being for public use but are:
(a) Real property by nature (like trees and plants) intended for some public
(b) Real property by incorporation (like a building) service
(c) Real property by destination or purpose (like for the development of
machinery placed by the owner of a tenement national wealth
on it for direct use in an industry to be carried Characteristics of Properties of Public Dominion
on therein) 1. Outside the commerce of man
(d) Real property by analogy (like the right of 2. Cannot be acquired by prescription
usufruct, or a contract for public works, or 3. Cannot be registered under the Land
easements and servitudes, or sugar quotas Registration Law and be a subject of a
under Republic Act 1825 and Executive Order Torrens title
873. (Presbitero v. Fernandez, L-19527, Mar. 4. Cannot be levied upon by execution nor can
30, 1963). they be attached
5. In general, they can be used by everybody
MOVABLES/PERSONAL 6. Maybe a real or personal property
Article 416 and 417, NCC Patrimonial Property
Property owned by the State but which is not RIGHT TO THE FRUITS
devoted to public use, public service or the JUS ABUTENDI
development of national wealth RIGHT TO CONSUME (OR TRANSFORM
Wealth owned by the State in its private, as OR ABUSE)
distinguished from public property JUS DISPONENDI
Maybe acquired through prescription RIGHT TO POSSESS
Property of the State that is no longer for JUS VINDICANDI
public use or public service RIGHT TO RECOVER
Property of Private Ownership Limitations on Ownership
May be patrimonial property of the State, THOSE GIVEN BY THE STATE OR LAW
provinces, cities and municipalities THOSE GIVEN BY THE OWNER OR
All property belonging to private persons, GRANTEE HIMSELF
either individually or collectively THOSE GIVEN BY THE GRANTOR WHO
OWNERSHIP GAVE THE THING TO THE PRESENT
The independent and general right of a person OWNER
to control a thing particularly in his Doctrine of Self-Help
possession, enjoyment, disposition and The owner or lawful possessor of a thing has
recovery, subject to no restrictions except the right to exclude any person from the
those imposed by the State or private enjoyment and disposal thereof. For this
persons, without prejudice to the provisions of purpose, he may use such force as may be
the law. reasonably necessary to repel or prevent an
Kinds of Ownership actual or threatened unlawful physical
Full ownership invasion or usurpation of his property.
Naked ownership Doctrine of State of Necessity
Sole ownership Art. 432. The owner of a thing has no right to prohibit
Co-ownership the interference of another with the same, if the
Full vs. Naked Ownership interference is necessary to avert an imminent danger
FULL OWNERSHIP includes all the rights of and the threatened damage, compared to the damage
an owner arising to the owner from the interference, is much
NAKED OWNERSHIP ownership where the greater. The owner may demand from the person
right to use and the fruits have been denied benefited indemnity for the damage to him.
NAKED OWNERSHIP + USUFRUCT = FULL See Justifying Circumstances (Art. 11, RPC)
OWNERSHIP Disputable Presumption of Ownership
FULL OWNERSHIP NAKED OWNERSHIP Requirements to raise a disputable (rebuttable)
= USUFRUCT presumption of ownership:
FULL OWNERSHIP USUFRUCT = NAKED Actual possession
OWNERSHIP = Claim of ownership
Rights of an Owner Either movable or immovable
RIGHT TO ENJOY Requisites in an action for recovery:
RIGHT TO POSSESS Property must be identified
RIGHT TO USE Owner should rely on the strength of
RIGHT TO THE FRUITS his title
RIGHT TO DISPOSE Rights of Owner on Surface
RIGHT TO CONSUME OR DESTROY Right of ownership of real property includes
OR ABUSE ownership of surface, up to the boundaries of
RIGHT TO ENCUMBER OR the land, with the right to make allowable
ALIENATE constructions, plantings, excavations subject
RIGHT TO RECOVER OR to:
VINDICATE Servitudes & easements
Rights of an owner (Under Roman Law) Special laws - mining law
JUS POSSIDENDI Ordinances
RIGHT TO POSSESS Reasonable requirements of aerial
JUS UTENDI navigation
RIGHT TO USE
JUS FRUENDI
Principles of human relations and the Contract of antchresis
prevention of injury to the rights of 3rd 2. ACCESSION CONTINUA REAL OR
persons PERSONAL PROPERTY
Hidden Treasure Rights of accession to immovables
Hidden and unknown deposit Acession industrial
Consists of money, jewelry or other precious Building
objects Planting
Their lawful ownership does not appear Sowing
Rights of Owner on Hidden Treasure Accession natural
- Belongs to the owner of the land, building, or Alluvium
other property on which it is found Avulsion
- If found by chance on anothers property or Change of course or rivers
the state or any of its subdivisions,
Formation of islands
to the finder, to landowner Rights of accession to movables
None to the finder, if trespasser Adjunction or conjunction
Of interest to science or the arts, state may Inclusion (engraftment)
acquire at a just price Soldadura (attachment)
ACCESSION Tejido (weaving)
- One of the rights of an owner & one of the Pintura (painting)
attributes of ownership Escritura (writing)
- Presupposes a previously existing ownership Mixture
by the owner over the principal Confusion (liquids)
Right to Own Everything Commistion (solids)
Produced thereby or fruits (Acession discreta) Specification
Which is incorporated or attached thereto BASIS
(accession continua) for accession discreta (to the fruits) justice,
CLASSIFICATION OF ACCESSION pure and simple, for one who owns a thing
1. ACCESSION DISCRETA should justly enjoy its fruits;
TO THE OWNER BELONGS THE FRUITS: for accession continua (attachment or
NATURAL FRUITS spontaneous products incorporation) economic convenience is
of the soil the young and other products of better attained in a state of single ownership
animals including those in the womb yet than in a co-ownership. Moreover, natural
unborn justice demands that the owner of the
INDUSTRIAL FRUITS produced by lands of principal or more important thing should also
any kind through cultivation or labor own the accessory.
- CIVIL FRUITS rents of buildings, the price of In general, the right to accession is automatic
leases of lands and other property, and the (ipso jure), requiring no prior act on the part of
amount of perpetual or life annuities or other the owner of the principal.
similar income BASIC PRINCIPLES IN ACCESSION CONTINUA
Rights to the Fruits 1. The owner of the land is the owner of all
- Recipient of fruits produced, gathered & accessions
preserved by 3rd person 2. Union must be in such a manner that
o Obligation to pay only necessary but separation of the principal from accessory
not luxurious expenses would result in substantial injury to either
- Deemed manifest or existing 3. One in good faith may be held responsible
o Annual crops from seedlings but should not be penalized
o Perennial crops when they appear 4. One in bad faith must be penalized
on trees 5. No one should enrich himsdelf unjustly at
o Young of animals or if still in womb the expense of others
o Owner of the mother/female 6. Follow rule in pari delicto both in good
EXCEPTION: faith
Possessor in good faith Rights of an Owner in Accession Industrial
Usufructruary Owner of land owns all that is built, planted or
Lessee get the fruits of the land sown including all other improvements
All works, sowing & planting are presumed to The process whereby the current of a river,
be made by the owner of the land creek or torrent segregates from an estate on
Owner of land who uses materials of another its bank a known potion of land and transfers
becomes owner of the materials - it to another estate
In good faith obliged to pay its value The removal of a considerable quantity of
Exception if materials can be earth upon or annexation to the land of
removed without injury or damage to another, suddenly & by the perceptible action
property then the owner of the of water or force of the river
materials can remove them Owner of trees uprooted may claim them
In bad faith - obliged to pay its value + within 6 months & after payment of necessary
damages expenses for gathering & preservation
Exception if the owner of the otherwise, ownership is transferred to the
materials decides to remove them owner of the land where the uprooted trees
even if the property would be may be cast
destroyed + payment of damages Alluvium vs. Avulsion
If there is a builder/sower in good faith ALLUVIUM AVULSION
Owner has a right to appropriate as
his own the works, sowing & planting THE DEPOSIT OF THE REMOVAL IS
after payment of the indemnity THE SOIL IS A SUDDEN OR
Or oblige the builder to pay for the GRADUAL ABRUPT
price of the land if the price is not PROCESS
considerably more than the price of
the construction or if the price is SOIL CANNOT BE SOIL IS
higher, then require the payment of IDENTIFED IDENTIFIABLE OR
reasonable rent VERIFIABLE
Or oblige the sower to pay the rent IT BELONGS TO IT BELONGS TO
In case there are three parties involved THE OWNER OF THE OWNER
landowner, builder & owner of materials THE PROPERTY FROM WHOSE
In bad faith loses right to be indemnified TO WHICH IT IS PROPERTY IT
& liable for consequential damages ATTACHED WAS DETACHED
In good faith entitled to reimbursement from UNTIL TWO
builder YEARS
Bad faith among landowner, builder & owner
of materials good faith Change of course of rivers
Rights of an Owner in Accession Natural o Ownership of abandoned river beds
To the owners of land adjoining banks of the belongs to the landowners whose
river belong the accretion which they lands are occupied by the new course
gradually receive from the effects of the in proportion to the area lost
current of the waters o Landowners adjoining the old river
Riparian owner owner of the land adjoining bed shall have the right to acquire it by
the river paying the value thereof but which
Alluvium shall not exceed the value of the area
Soil deposited or added to the lands occupied by the new bed
adjoining river banks and gradually New river bed on private estate
received as an effect of the current of o The new bed becomes of public
the waters. dominion
Essential requisites of alluvium River divides itself into branches
The deposit should be gradual & o Landowner becomes owner of the of
imperceptible the isolated property or the separated
Casue is the current of the river property
Current must be that of a river REQUISITES FOR CHANGE OF COURSE OF
River must continue to exist RIVERS TO APPLY:
Increase must be comparatively little 1. The change must be sudden in order that the
Avulsion old river may be identified
2. The changing of the course must be more or SPECIFICATION
less permanent & not merely temporary Giving new form to anothers material thru the
flooding of anothers land application of labor & the material undergoes
3. The change of the river bed must be a natural a transformation or a change of identity
one Rules in specification: worker vs. Owner of
4. There must be definite abandonment by the material
government Worker in good faith
5. The river must continue to exist & must not Appropriates the new thing
completely dry up or disappear Must indemnify cost of materials used
Formation of islands Worker in bad faith
On the sea owned by the state if Owner can appropriate the work
within territorial waters or maritime without paying for labor or
zone Demand indemnity for the material +
High seas owned by the first country damages
to effectively occupy the same RIGHTS OF ACCESSION TO MOVABLE
On lakes, navigable or floatable rivers PROPERTY
owned by the state
ADJUNCTION MIXTURE SPECIFICATION
On non-navigable or non-floatable
rivers
Of nearer in margin to the INVOLVES INVOLVES MAY INVOLVE
bank owner of the nearer AT LEAST 2 AT LEAST 2 ONLY ONE
margin is sole owner THINGS THINGS THING (MAYBE
If equidistant the island shall MORE) BUT
be divided longitudinally in FORM IS
halves among the landowners CHANGED
nearer to the island, each
ACCESSORY CO- ACCESSORY
getting half
FOLLOWS OWNERSHIP FOLLOWS
PRINCIPAL VS. ACCESSORY
PRINCIPAL RESULTS PRINCIPAL
The principal is:
That to which the other has been
united as an ornament or for its use, THE THINGS THE THINGS THE NEW
or perfection JOINED MIXED MAY OBJECT
That of greater value RETAIN EITHER RETAINS OR
That of greater volume THEIR RETAIN OR PRESERVES
That which has greater merits from the NATURE LOSE THEIR THE NATURE
combined consideration of utility and NATURE OF THE
volume ORIGINAL
ADJUNCTION/CONJUNCTION OBJECT
- Process by which two movable things
belonging to different owners are united in CO-OWNERSHIP
such a way that they form a single object Rules of Ruinous Buildings and Trees in Danger
- Kinds of adjunction: of Falling
- Inclusion Any building, wall, column, or any other construction
- Soldering may be same metal or or large tree in danger of falling that may cause
different metals damage to anothers land or to travellers or any public
- Escritura - writing or private road:
- Pintura - painting Obligation of Owner
- Weaving to demolish, fell or remove the structure or
MIXTURE tree
Combination or union of materials where the to execute the necessary work in order to
respective identities of the component prevent it from falling.
elements are lost If Owner Fails to Comply:
Kinds of mixture: Administrative authorities may order demolition at
Conmixtion - solids the expense of owner or take measures to insure
Confusion liquids public safety
Liability for Damages much of his undivided interest as may be equivalent
Co-Ownership to his share of the expenses and taxes but NO
Whenever the ownership of an undivided thing WAIVER shall be made if it is prejudicial to the co-
or right belongs to different persons ownership
The right of common dominion which two or 6) REPAIRS for preservation may be made at the
more persons have in a spiritual or ideal part WILL OF ONE OF THE CO-OWNERS, but he must, if
of a thing which is not physically divided practicable, first notify his co-owners of the necessity
No Co-Ownership for such repairs.
There is no co-ownership when the different 7) Expenses to IMPROVE OR EMBELLISH the thing
positions owned by different people are shall be decided upon by a MAJORITY
already concretely determined and 8) None of the co-owners shall, without the
identifiable, even if not yet technically CONSENT of the others, make ALTERATIONS in the
described thing owned in common, even though benefits for all
Characteristics of Co-Ownership would result therefrom. However, if the WITHOLDING
It is not a juridical person of the consent by one or more of the co-owners is
Possession of a co-owner is like that of a clearly prejudicial to the common interest, the courts
trustee and shall not be regarded as adverse may afford adequate relief.
to the other co-owners but in fact as beneficial 9) Each co-owner shall have the full ownership of his
to all of them part and the fruits and benefits pertaining thereto, and
It cannot sue in court he may therefore ALIENATE, ASSIGN or
Co-owners may only litigate in their individual MORTGAGE it, and even SUBSTITUTE another
capacities person in its enjoyment, except when personal rights
Sources of Co-Ownership are involved. But the effect of the alienation or the
1. LAW mortgage, with respect to the co-owners, shall be
2. CONTRACT limited to the portion which may be allotted to him in
3. CHANCE the division upon the termination of the co-ownership.
4. OCCUPATION Acts of Administration/Management
5. WILL OR SUCCESSION (a) that do not involve an alteration;
Share in Co-Ownership (b) those that may be renewed from time to time;
The share of the co-owners, in the benefits as well as (c) those that have transitory effects, that is, do not
in the charges, shall be proportional to their bind the co-ownership for a long time in the future;
respective interests. (d) those that do not give rise to a real right over the
Any stipulation in a contract to the contrary shall be thing owned in common;
void. (e) those, which even if called an alteration, do not
The portions belonging to the co-owners in the co- affect the substance or nature of the thing);
ownership shall be presumed equal, unless the (f) those for the common benefit of all the co-owners
contrary is proved. and not for only one or some of them.
Right over the thing owned in common Rules of Perpendicular Ownership
1) Each co-owner may USE the thing owned in Whenever the DIFFERENT STORIES of a house
common provided he does so belong to DIFFERENT OWNERS, if the titles of
- in accordance with the purpose for which it ownership do not specify the terms under which they
is intended and, should contribute to the NECESSARY EXPENSES
- in such a way as not to injure the interest of and there exists no agreement on the subject, the
the co-ownership or prevent the other co-owners from following rules shall be observed:
using it according to their rights (1) The main and party walls, the roof and the other
2) The PURPOSE of the co-ownership may be things used in common, shall be preserved at the
changed by agreement, express or Implied. expense of all the owners in proportion to the value of
3) Any one of the co-owners may bring an ACTION the story belonging to each;
for ejectment (2) Each owner shall bear the cost of maintaining the
4) Each co-owner shall have a right to COMPEL the floor of his story; the floor of the entrance, front door,
other co-owners to contribute to the EXPENSES for common yard and sanitary works common to all, shall
preservation of the thing or right owned in common be maintained at the expense of all the owners pro
and tot the taxes rata;
5) Any one of the co-owners may EXEMPT himself (3) The stairs from the entrance to the first story shall
from the obligation to contribute by renouncing so be maintained at the expense of all the owners pro
rata, with the exception of the owner of the ground (b) If this is not agreed upon (as when nobody wants
floor; the stairs from the first to the second story shall to get it, or more than one desire it), there must be a
be preserved at the expense of all, except the owner sale PUBLIC sale, such as an auction or a PRIVATE
of the ground floor and the owner of the first story; sale) where strangers are allowed to purchase.
and so on successively. The procedure applies whether the property is
Partition in Co-Ownership real or personal. (See Garcia de Lara v.
No co-owner shall be obliged to remain in the co- Gonzales de Lara, 2 Phil. 294).
ownership. Each co-owner may demand at any There is no right of legal redemption here for
time the partition of the thing owned in common, the co-ownership has ceased.
insofar as his share is concerned. Effect of Partition
Nevertheless, an agreement to keep the thing The partition of a thing owned in common
undivided for a certain period of time, not shall not prejudice THIRD PERSONS, who
exceeding ten years, shall be valid. This term may shall retain the rights of mortgage, servitude,
be extended by a new agreement. or any other real rights belonging to them
A donor or testator may prohibit partition for a before the division was made. Personal rights
period which shall not exceed twenty years. pertaining to third persons against the co-
Neither shall there be any partition when it is ownership shall also remain in force,
prohibited by law. notwithstanding the partition.
No prescription shall run in favor of a co-owner or Upon partition, there shall be a MUTUAL
co- heir against his co-owners or co-heirs so long ACCOUNTING for benefits received and
as he expressly or impliedly recognizes the co- reimbursements for expenses made.
ownership. Likewise, each co-owner shall pay for
Notwithstanding the provisions of the preceding damages caused by reason of his negligence
article, the co-owners cannot demand a or fraud.
PHYSICAL DIVISION of the thing owned in Every co-owner shall, after partition, be
common, when to do so would render it LIABLE for defects of title and quality of the
unserviceable for the use for which it is intended. portion assigned to each of the other co-
But the co-ownership may be terminated in owners.
accordance with Article 498. How Co-Ownership is Extinguished
The CREDITORS OR ASSIGNEES of the co- 1. judicial partition
owners may take part in the division of the thing 2. extrajudicial partition
owned in common and object to its being effected 3. when by prescription, one co-owner has
without their concurrence. But they cannot impugn acquired the whole property by adverse
any partition already executed, unless there has possession as against all the others, and
been FRAUD, or in case it was made repudiating unequivocally the co-ownership of
notwithstanding a FORMAL OPPOSITION the other
presented to prevent it, without prejudice to the 4. when a stranger acquires by prescription the
right of the debtor or assignor to maintain its thing owned in common
validity.
Partition may be made by AGREEMENT between 5. merger in one co-owner
the parties or by judicial proceedings. 6. loss or destruction
Partition shall be governed by the RULES OF
COURT insofar as they are consistent with this 7. expropriation (here the indemnity will be
Code. distributed accordingly).
Legal Partition in Ownership
Whenever the thing is ESSENTIALLY INDIVISIBLE
and the co-owners CANNOT AGREE that it be
allotted to one of them who shall indemnify the others,
it shall be sold and its proceeds distributed.
Procedure for the Legal Partition
(a) First, give the whole to one co-owner who will
now be required to indemnify the rest.