ARTICLE 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. (333)
as real property those “real rights over
immovable property”
3. in the provision of paragraph 1 of Article 417
of the New Civil Code which classifies as
personal property “obligations and actions
which have for their object movables or
demandable sums.”

PROPERTY, in general; B. CONCEPT OF PROPERTY

- Derived from the Latin word proprius,
meaning belonging to one or one’s own.
- Considered as an object is that which is, or
may be, appropriated.
- Branch of civil law which classifies and
defines the different kinds of appropriable
objects provides for their acquisition and
loss, and in general, treats of the nature and
consequences of real rights
- In our civil code, the concept of property
is not confined to things which are
already appropriated or possessed by
man but also extends to those not yet
appropriated.
- In connection with art. 414, “all things
which are or may be the object of
appropriation”

A. CONCEPT OF THING Classification of Property

- Thing is synonymous with property. 1. Mobility and non-mobility
- Thing is broader in scope for it includes both a. Moveable or personal
appropriable and non-appropriable objects. b. Immovable or real
- Examples: the planets, the stars, the sund 2. Ownership
for example, are things but cannot be a. Public dominion
appropriated, therefore, they are not b. Private dominion
property. 3. Alienability
a. Within the commerce of men
Classification of THINGS: b. Outside the commerce of man
1. Res nullius 4. Existence
- belonging to no one a. Present property
- they have not yet been appropriated. b. Future property
5. Materiality or Immateriality
2. Res communes
a. Tangible or corporeal (objects
- belonging to everyone
which can be seen or touched)
- Their use and enjoyment are given to all
b. Intangible or incorporeal (right or
of mankind
credits)
3. Res alicujus 6. Dependence or Importance
- belonging to someone a. Principal
- Owned privately. b. Accessory
7. Capability of Substitution
While the human person may not be considered as a. Fungible (capable of substitution)
property, his conduct or acts, to a certain extent, may b. Non-fungible (incapable of
give rise to enforceable rights in favor of other person substitution)
if such act or conduct is considered by law as a 8. Nature or Definiteness
source of obligation. a. Generic
b. Specific
Things are objects external to man. But the civil code 9. Custody of the court or free
does not limit it to corporeal objects, it also extends to a. Custodia legis
those which have only intellectual or juridical b. Free property
existence. The concept of things in our Civil Code
embraces both material objects and rights. Not all things may be considered as property.
To illustrate: C. REQUISITES OF PROPERTY (UAS or
1. in Article 414, the law considers all things USA)
susceptible of appropriation as property, 1. Utility for the satisfaction of moral or
which may either be real or personal. economic wants
2. In Articles 415 and 416, on the other hand, 2. susceptibility of appropriation
rights are likewise considered as property. 3. individuality or substantivity (i.e., it can exist
This is exemplified in the provision of by itself, and not merely as a part of a
paragraph 10 of Article 415 which classifies whole). (Hence, the human hair becomes
property only when it is detached from the

Salih, Shella Hannah J.| 2I AY 2020-2021

 owner.) a donation acceptance are be valid; it
required to be in must be in a
Example: when a diamond stone is attached to a ring, writing public
the ring and the stone constitute a single property document
since they now form a single object. However, when Extrajudicial Only movable It cannot
the stone is removed from the ring it will be regarded deposit things may be the
as a separate property from the ring to which it has object of
once been attached. extrajudicial
deposit
It is essential that a thing must be susceptible of Crimes of Only personal can Crime of
appropriation before it can be considered as theft, be object of the usurpation
property. Things which cannot be subjected to human robbery and crimes of theft and can be
control by reason of sheer physical impossibility are usurpation robbery committed
not considered as property. only to a real
property
Examples: the sun, the stars, and the ocean, lightning Determining Can be Real property,
and rain the venue in commenced it must be
remedial law where the plaintiff filed in the
Susceptibility to appropriation v. outside the or the defendant court wherein
commerce of man resides, at the the property
election of the is situated
- Things which are outside the commerce plaintiff
of men may not be the object of contact,
they are not necessarily disqualified
from being considered as property.
- Example: properties of public dominion
It is only the LAW which may consider certain real
pertaining to the State, being outside the
property (like growing crops) as personal property (for
commerce of man, cannot be the object
the purpose of making a chattel mortgage).
of contracts. However, they are
considered property under the Code.

MOVABLE v. IMMOVABLE IMMOVABLE PROPERTY

Art. 415. The following are immovable property:
MOVABLE IMMOVABLE (1) Land, buildings, roads and constructions of all
Rules of Ownership of Real rights kinds adhered to the soil;
acquisitive movables over (2) Trees, plants, and growing fruits, while they are
prescriptio prescribes through immovable attached to the land or form an integral part of an
n uninterrupted are acquired immovable;
possession for 4 by ordinary (3) Everything attached to an immovable in a fi xed
years in good faith prescription manner, in such a way that it cannot be separated
or uninterrupted through therefrom without breaking the
possession for 8 possession of material or deterioration of the object;
years, with any 10 years or (4) Statues, reliefs, paintings or other objects for use
other condition 30 years, or ornamentation, placed in buildings or on lands by
without need the owner of the immovable in such a manner that it
of title or reveals the intention to attach them permanently to
good faith. the tenements;
Propriety of Only movables Only (5) Machinery, receptacles, instruments or
the object of can be the object immovables implements intended by the owner of the tenement for
the contract of the contracts of can be the an industry or works which may be carried on in a
of pledge, pledge and chattel object of a building or on a piece of land, and which tend directly
chattel, mortgage real estate to meet the needs of the said industry or works;
mortgage mortgage (6) Animal houses, pigeon-houses, beehives, fi sh
and real contract. ponds or breeding places of similar nature, in case
estate their owner has placed them or pre-
mortgage serves them with the intention to have them
and real permanently attached to the land, and forming a
estate permanent part of it; the animals in these places are
mortgage included;
Determining Donation exceeds Donation of (7) Fertilizer actually used on a piece of land;
the 5,000, the an immovable (8) Mines, quarries and slug dumps, while the matter
formalities of donation and property may thereof

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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. (334a)
CONCEPT OF IMMOVABLE PROPERTY
- Art. 415 does not define immovable but
enumerates what are considered as
such.
- This word is not used in its etymological
or grammatical meaning but in its
juridical meaning
Kinds of immovable property. (NIDA)
1. Immovable by NATURE
- By their essence of nature are
immovable or cannot be moved from
one place to another
- Examples: trees and plants
2. Immovable by INCORPORATION
- Those which are treated as immovable
by reason of their attachment or
incorporation to an immovable in such
manner as to be an integral part.
- Example: buildings and constructions
adhered to the soil, trees, plants and
fruits.
- The NCC classifies buildings as
immovables, the “building” referred to is
that which substantially adheres to the
land and not one which is merely
superimposed on the soil.
- building treated separately from the land
on which it stood is immovable property
and the mere fact that the parties to a
contract seem to have dealt with it
separate and apart from the land on
which it stood in no wise changed its
character as immovable property.
- The law makes no distinction as to
whether or not the owner of the land
is or is not the owner of the building.
The classification of property into real or personal
is provided for by law and may not, therefore, be
changed by the agreement of the parties. As such,
even if the parties may treat as personal property that
which under the law is a real property, that agreement
does not in any way alter the character of the property
as an immovable or real property.
- To be immovable, the construction must
be attached permanently to the land.
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- The adherence to the solid must not be
of provision or temporary character but
fixed or integral.
- the steel towers constructed by the
Manila Electric Company were not
considered as real properties because
they were “removable and merely
attached to a square metal frame by
means of bolts, which when
unscrewed could easily be
dismantled and moved from place to
place.”
- the pipeline system in question is
indubitably a construction adhering to
the soil. It is attached to the land in such
a way that it cannot be separated
therefrom without dismantling the steel
pipes which were welded to form the
pipeline.
-
3. Immovable by DESTINATION
- Those which are essentially movable,
but by the purpose for they have been
place in an immovable, partake of the
nature of the latter
- Examples: machinery plabed by the
owner of tenement on it for direct use in
an industry to be carried on therein)
Par. 4 “Statues, reliefs, paintings or other objects
for use or ornamentation ...”
- These are real properties by destination.
- REQUISITES must concur:
1. they must be placed in
buildings or on lands by the
owner of the immovable or by
his agent; and
2. the attachment must be
intended to be permanent.
PARAGRAPH 4 v. PARAGRAPH 3
- In par. 4 the incorporation must be
made by the owner of the immovable
either personally or through an agent;
- In par. 3, it is immaterial as to who
makes the incorporation.
- the incorporation in par. 3 must be such
that separation is impossible;
- whereas, in par. 4 separation is
possible without deterioration of the
immovable or destruction of the
material.

Par. 5 “Machineries, receptacles, instruments or
implements ...”
- are essentially movables but by reason
of their purpose — they being destined
for use in the industry or work in the
tenement — they are converted into real
properties.
- REQUISITES:
1. They must be machinery,
receptacles, instruments or
implements;
2. They must be placed by the
owner of the tenement or by
his agent;
3. There must be an industry or
work carried in such building or
on the piece of land; and
4. They must tend directly to
meet the needs of said
industry work.
General Rule: the Supreme Court held that machinery
which is movable by nature becomes immobilized
when placed by the owner of the tenement, property
or plant, but not so when placed by tenant,
usufructuary, or any other person having only a
temporary right, unless such person acted as the
agent of the owner.
Exception: if in the contract of lease it is stipulated
that such machinery, receptacles, instruments or
implements placed there by the lessee will become,
at the termination of the lease, the property of the
lessor for in that case they will be considered as
immovable property since in placing them the lessee
will just be merely acting as an agent of the lessor.
- it is necessary that they must be
“essential” and “principal” elements of
the industry or works without which such
industry or works would be unable to
function or carry on the industrial
purpose for which it was established.
a. Aside from the element of essentiality,
b. paragraph 5 of Article 415 also requires that
the industry or works be carried on in a
building or on a piece of land.
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Par. 6 “Animal houses, pigeon houses”
- are immovable, it requires that they be
placed by the owner of the land in
order to acquire the same nature of
consideration of real property.
- However, these animals will be
considered as personal property under
laws which so provide for them pursuant
to the second paragraph of Article 416
Par. 7 “Fertilizers”
- it must actually be used on the land,
fertilizer kept in the farmhouse are not
immovable.
Par. 8 “Mines,quarries,slag,dumps,waters”
- they are considered immovable
property, once separated they are no
longer mines but minerals and
considered personal.
- Waters referred here are those found in
their natural beds such as flowing
streams, rivers or canals.
Par. 9 “Docks and structures”
- they are considered as immovables as
long as they are intended by their nature
and object to remain at a fixed place.
4. Immovable by ANALOGY or LAW
- Rights as property provided that the
same is patrimonial in nature:
- “patrimonial” owned by the state in its
private capacity.
1. Real Rights- the owner belonging to a
person over a specific thing, it is enforceable
against the whole world (contract)
2. Personal Rights- power belonging to one
person to demand of another, the fulfillment
of a prestation to give, to do or not to do.
(obligation)
Whether a right is personal or real property shall
depend on:
a. whether it is a personal or real RIGHT, and
b. whether the SUBJECT MATTER thereof is a
personal or real property.
- With respect to personal rights, it will
fall under personal property regardless
of the subject matter thereof.
- With respect to real rights - depends on
its subject matter
1. If the subject matter of the real
right is a real property, then
such real right is a real
property.
 2. On the other hand, if the
subject matter of the real right
is a personal property, as in
the case of chattel mortgage,
such real right is classified as
personal property.
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 fi xed.
Art. 417. The following are also considered as
personal property:
(1) Obligations and actions which have for their object
movablesor demandable sums; and
(2) Shares of stock of agricultural, commercial and
industrial enti-
ties, although they may have real estate. (336a)
- Thus, under our law, all properties which
are not real are PERSONAL.
- Hence, while certain property may, by its
nature, be moved from one place to
another, it will not be considered as
movable property if it is classified as
immovable property under the
provisions of Article 415 because of the
purpose for which it has been placed in
an immovable, in which case, it shall
partake of the nature of the latter and
shall be classified as an immovable
property by destination.
- In general, all things susceptible of
appropriation which can be transported
from place to place without impairment
of the real property to which they are
fixed and not included in the
enumeration in Article 415 are classified
as “personal” or “movable” property.
Forces of Nature
- However, paragraph (3) of Article 416
clarifies that if these forces of nature are
brought under the control of man
through the help of science, thereby
becoming appropriable, they are now
considered as property and classified as
personal property. Hence, gas and
electricity are considered personal
property under this provision.
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Chose of Action
- is personal property and it is an
intangible or incorporeal right. A “chose
in action” means, literally, a thing in
action, and is the right of bringing an
action, or a right to recover a debt or
money
Obligation
- creates a personal right on the part of
the creditor to demand for its fulfillment
or performance. The right to demand for
the performance of the obligation is, by
itself, a property.
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 without their being consumed; to
the second class belong all the others. (337)
Classification of Movables
1. Consumable
2. Non-Consumable
- A consumable is a movable which
cannot be used in a manner appropriate
to its nature without itself being
consumed.
- For example, a cigarette cannot be used
in a manner appropriate to its nature,
i.e., for smoking, without itself being
consumed.
- A non-consumable, on the other hand,
is a movable which can be used in a
manner appropriate to its nature without
itself being consumed.
- An example of a non-consumable is
table which can be used in the manner
appropriate to its nature and, yet, it will
not be consumed.
- the basis of the classification of
movables into fungible or non-fungible is
simply the intention of the parties. The
movable is classified as fungible if, by
the intention of the parties, it can be
replaced by another of the same kind;
otherwise, it is a non- fungible.
PROPERTY IN RELATION TO THE PERSON TO
WHOM IT BELONGS
Art. 419. Property is either of public dominion or of
private ownership.
Classifications:
1. Public Dominion
 2. Private Ownership
Patrimonial properties of the State
- are not exactly in the same category as
ordinary private properties. Private
properties can be acquired thru adverse
possession while the adverse
possession of the former cannot ipso
facto ripen into ownership as it is an
iron-clad dictum that prescription can
never lie against the State.
- “iron-clad dictum” – absolute rule
In relation to the State
- its properties are either of public
dominion or patrimonial properties;
In relation to the political subdivisions (provinces,
cities and municipalities)
- their properties are either of public
dominion (for public use) or patrimonial
proper- ties;
In relation to persons and entities other than the State
and its political subdivisions (or private persons,
either individually or collectively),
- their properties are denominated as that
of private ownership
Art. 420. The following things are property of public
dominion:
(1) torrents, ports and bridges constructed by the
State, banks, shores, road- steads, and others of
similar character;
(2) Those which belongs to the State, without being
for public use, and are intended for some public
service or for the development of
the national wealth. (339a)
CLASSIFICATION OF PUBLIC DOMINION
There are three kinds of property of public dominion:
1. those that are intended for public use;
2. those that are intended for some public
service; and
3. those that are intended for the
development of national wealth.
“PUBLIC DOMINION”
- is to be viewed as referring to public
ownership in relation to the properties of
the State intended for public use or for
some public service mentioned in
paragraph numbers (1) and (2) of Article
420.
- Since the ownership of these properties
belong to the public in general and not
to the State, the latter may not make
them the object of commerce unless
they are properly converted into
patrimonial. properties pursuant to the
Salih, Shella Hannah J.| 2I AY 2020-2021
provisions of Article 422 of the New Civil
Code.
Public Ownership v. State Ownership
- In public ownership, not even the State
may make them the object of
commerce. Hence, they cannot be
leased, donated, sold or be the object of
any contract.
- With respect to natural resources, they
are not, however, totally outside the
commerce of man as the Constitution
allows the State to enter into co-
production, joint venture or production-
sharing agreements with private
individuals or corporations for their
exploration, development and utilization.
- With respect to fishponds, for example,
which are likewise owned by the State,
they may be leased although they may
not be alienated.
For a property of the State to fall under public
dominion, it is not necessary that the same be
actually used for some public use or for some
public service.
An intention to devote it to public use is sufficient
and it is not necessary that it must actually be used as
such.
Public Use v. Public Service
- public use which is not confined to
privileged individuals, but is open to the
indefinite public. Public use may be
used indiscriminately by the public.
- While the public service although used
for the benefit of the public, cannot be
used indiscriminately by anyone but only
by those that are authorized by proper
authority.
The “roads” referred to under Article 420(1) of the
New Civil Code are the national highways and roads
constructed and maintained by the national
government through the Department of Public
Worksand Highways. Provincial, city and municipal
roads and streets.
On the other hand, are properties of public dominion
of the local government unit concerned and are
governed by Article 424 of the Civil Code andthe
provisions of the Local Government Code.
The term “ports” in Article 420(1) of the New Civil
Code includes seaports and airports. The MIAA
Airport Lands and Buildings constitute a “port”
constructed by the State. Hence, they are properties
of public dominion and thus owned by the State or the
Republic of the Philippines.
Foreshore lands are part of the public dominion.
Natural lakes and lagoons and their beds belong to
the State and are part of public dominion.
Lakes and lagoons naturally occurring on private
lands also belong to the State. Hence, lakes and
lagoons developed by a private person on private
lands are of private ownership.
The Laguna de Bay has long been recognized as a
lake. As such, the accretion occurring therein, by
mandate of Article 84 of the Spanish Law of Waters of
1866, belongs to the owner of the land contiguous
thereto.
All properties of the State that are devoted or intended
for some public service are likewise part of the
PUBLIC DOMINION.
As earlier explained, these properties cannot be used
indiscriminately by anyone but only by those that are
authorized by proper authority.
Property of public dominion pertaining and/or
belonging to the State refers not only to property
devoted to public use or to some public service, but
also to property devoted to the development of the
national wealth.
This class of property constituted property of public
dominion although employed for some economic or
commercial activity to increase the national wealth.
Under the Regalian Doctrine, all lands not otherwise
appearing to be clearly within private ownership are
presumed to belong to the
State.
Under Section 3 of Article XII of the 1987 Philippine
Constitution, lands of the public domain are classified
into:
1. agricultural
2. forest
3. timber
4. mineral lands
5. national parks.
Mineral and timber or forest lands are not subject
to private ownership unless they are first reclassified
as agricultural lands and so released for alienation.
Agricultural public lands may be defined as those
alienable portions of the lands of the public domain
which are not forest or timber, mineral, or national
parks.
Only agricultural lands are allowed, however, to be
alienated.
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Since property of public dominion is outside the
commerce of man and not susceptible to private
appropriation and acquisitive prescription, the adverse
possession which may be the basis of a grant of title
in the confirmation of an imperfect title under the
Public Land Act refers only
to alienable or disposable portions of the public
domain.
It is only after the Government has declared the land
to be alienable and disposable agricultural lands that
the year of entry, cultivation and exclusive and
adverse possession can be counted for purposes of
an imperfect title.
From the foregoing, it appears that agricultural public
lands are classified as patrimonial property of the
State as soon as they are made available for
alienation or disposition.
Prior to the reclassification of public lands into
agricultural lands and prior to their being made
available for alienation and disposition, they form part
of the property of public dominion,
Characteristics:
1. They are outside the commerce of man
- Properties of public dominion are
outside the commerce of man.
- Being outside the commerce of man, it
cannot be alienated or leased or
otherwise be the subject matter of
contracts.
- Hence, the right of the public to use
public property may not be bargained
away through contract.
- EXCEPTION: With respect to natural
resources, however, the Constitution
allows the State to enter into co-
production, joint venture or production-
sharing agreements with private
individuals or corporations for their
exploration, development and utilization.
2. They Are Not Susceptible To Private
Appropriation and Acquisitive
Prescription
3. They are not subject to attachment and
execution
- Properties of public dominion, being for
public use, are not subject to levy,
encumbrance or disposition through
public or private sale.248 Any
encumbrance, levy on execution or
auction sale of any property of public
dominion is void for being contrary to
public policy.
- Hence, it was held in one case that the
City of Parañaque cannot foreclose and
compel the auction sale of the 600-
 hectare runway of the MIAA for non-
payment of real estate tax since the
Airport Lands and Buildings of MIAA are
properties of public dominion.
4. They cannot be burdened with voluntary
easements
Art. 421. All other property of the State, which is not
of the character stated in the preceding article, is
patrimonial property. (340a)
- All other property of the State, which is
not of the character stated in Article 420
of the New Civil Code, is patrimonial
property.
- It is considered as a property of the
State in what may be called the private
sense.
- It is said that over this kind of property
the State has the same rights and has
the same power of disposition as private
individuals subject, of course, to existing
rules and regulations.
- Examples of Patrimonial Prop:
1. Friar Lands
2. Alienable and disposable lands
of the public domain
3. Lands covered by RA 7227
- It was held in Laurel v. Garcia, that any
conveyance of a real property falling
under the patrimonial property of the
State must be authorized and
approved by a law enacted by the
Congress.
- Hence, in the case of Laurel, the Court
held that even if the Roppongi property
is patrimonial property of the State, then
President Corazon Aquino could not sell
it since there was no law authorizing her
to do so.
- Consequently, unless the law
expressly provides, a patrimonial
property of the State is not subject to
acquisitive prescription.
- An example of a law that allows the
acquisition of patrimonial properties of
the State by way of acquisitive
prescription is Commonwealth Act No.
141 which authorizes confirmation of
imperfect title.
- The adverse possession which may be
the basis of a grant of title in
confirmation of im- perfect title cases,
however, applies only to alienable
lands of the public domain— which
fall under the patrimonial properties of
the State.
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- Property of public dominion, when no
longer intended for public use or for
public service, shall form part of the
patrimonial property ofthe State.
Art. 423. The property of provinces, cities, and
municipalities isdivided into property for public use
and patrimonial property. (343)
Property for public use and patrimonial property.
- The first consists of the provincial roads,
city streets, municipal streets, squares,
fountains, public waters, promenades,
and public works for public service paid
for by said provinces, cities or
municipalities.
- All other property possessed by said
provinces, cities or municipalities is
patrimonial.
- The nature of properties owned by cities
(municipalities and provinces) in this
country is determined by the character
of the use or service for which they are
intended or devoted.
- Properties which are intended for public
use or for some public service are
properties for public use.
All others are patrimonial properties.
It matters not that the property is not actually devoted
for public use or for some public
service.
Art. 424. Property for public use, in the provinces,
cities, and municipalities, consists 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, or 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. (344a)
- The property of provinces, cities and
municipalities for public use is governed
by the same principles as property of
public dominion ofthe same character.
- Hence, the following jurisprudence or
principles are applicable to properties of
the political subdivisions (provinces,
cities and municipalities) for public use:
1. They are outside the
commerce of man.Being
outside the commerce of man,
it cannot be alienated or leased
or otherwise be the subject
matter of contracts.
 2. Local governments have no
authority whatsoever to control
or regulate the use of public
properties, like roads and
streets, unless specific
authority is vested upon them
by Congress.

- Thus, in that case the Supreme Court

held that the withdrawal of an existing
road from public use was valid thereby
converting the withdrawn property into
patrimonial property which can be the
object of an ordinary contract.

- Town or public plazas are properties of

public dominion, to be devoted to public
use and to be made available to the
public in general.

- They are beyond the commerce of man

and so cannot be the subject of lease or
any other contractual undertaking.

PRIVATE OWNERSHIP

Art. 425. 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.

- Private properties may belong to the

State, to provinces, cities and
municipalities or may belong to the
private individuals either individually or
collectively.
- Such properties when they belong to the
State, provinces, cities and
municipalities are called “patrimonial
property;” and when they belong to
private entities or individuals, they are
called “properties of private
ownership.”
- All lands are presumed, however, to be
public lands until the contrary is
established.

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Salih, Shella Hannah J.| 2I AY 2020-2021