PROPERTY refers to things which are capable of satisfying human wants and needs

and are susceptible of appropriation.

Under Philippine law, specifically Article 414 of the New Civil Code, property is
classified into two: immovable or real property and movable or personal property.

The distinction between the two is very important as there are different laws regarding
their acquisition, use, loss, sale, registration, possession and so on.

Immovable Property
What are real properties according to the law?

Art. 415. The following are immovable property:

(1) Land, buildings, roads and constructions of all kinds adhered to the soil;

*These are immovable as they are more or less of a permanent structure independent
and forms an integral part of the land. Land is immovable by nature and by definition.

(2) Trees, plants, and growing fruits, while they are attached to the land or form an
integral part of an immovable;

*Since trees and plants are annexed to the land, they form part of it and may even be
part of the property of the owner of the land in where they are attached. They are
immovable if they are spontaneous products of the soil and incorporated to the land
through cultivation and labor. They may either be immovable by incorporation or by
nature.

(3) Everything attached to an immovable in a fixed manner, in such a way that it cannot
be separated therefrom without breaking the material or deterioration of the object;

*Another thing attached to another principal immovable would also make it immovable if
the permanency of attachment of the thing is almost tantamount to its unification to the
principal immovable that their separation would cause damage and deterioration. This is
another example of immovable by incorporation.

(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;

*It must be noted that these objects must be placed by their owners permanently to the
land or building even if such land or building is not owned by him. The intent of the
owner of the objects must be looked upon so as to know that he wanted to incorporate it
permanently which would make these objects also immovables.

(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;

*For these objects to become immovable, these must be placed by the owner of the
tenement or the property where these objects would be attached and where the industry
or works would be carried. These objects must also be essential to 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;

*The constructions mentioned must be intended by the owner to be permanently a part

of the land. The animals though can be transferred from place to place are also
included.

(7) Fertilizer actually used on a piece of land;

*These are immovable by destination. If they are used, they form part of the land.

(8) Mines, quarries, and slag dumps, while the matter thereof forms part of the bed, and
waters either running or stagnant;

*While these resources remain unsevered, they are considered immovable.

(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;

*It can be inferred in the way they are constructed that they are to stay in fixed place
and as a permanent fixture to their location.

(10) Contracts for public works, and servitudes and other real rights over immovable
property. (334a)

*These are considered real property just because the law said so. Real property itself,
produces real right or real right is always regarded as real property.
 To further understand and better differentiate Real Property  from a personal or
movable property, real property may be immovable by:

1. Immovable by nature or those which cannot be moved from one place such as
those mentioned in Nos. 1 (with respect to lands and roads) and 8 in Art. 415 of the Civil
Code

2. Immovable by incorporation, or those which are attached to an immovable in a

fixed manner as to form an integral part thereof like buildings, walls or fences, trees,
statues, animal houses, it is placed in an immovable for the utility it gives to the activity
carried thereon, such as machinery installed in a building to meet the needs of an
industry in the building, and docks on a river or those mentioned in Nos. 1 (except lands
and roads), 2, 3 and 4 of Art 415.

3. Immovable by destination, or those which are placed in an immovable for the

use, exploitation or perfection of such immovable, such as those mentioned in Nos. 4, 5,
6, 7 and 9 of Art. 415

4. Immovable by analogy, or those which are considered immovable by operation

of law because it is regarded as united to the property such as those mentioned in No.
10 of Art. 415

Movable Property
PERSONAL PROPERTY

As previously mentioned in this post, property in the Philippines is classified by law also

as personal property. To also distinguish a personal from real property, this test can be
employed whether it is personal:

1. By description if the object can be moved one place to another and this will not
cause injury to the immovable to which it may be attached;

2. By exclusion, if it is not included in the enumeration found in Art. 415 of the Civil
Code of the Philippines.

3. By provision of the law, if real property is considered as personalty by special

provision of the law

What are personal properties according to the law?

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;
*By appropriability it means that it can be capable of being possessed by men.
Therefore all other things which are not falling under Art. 415 are considered as
personal property.

(2) Real property which by any special provision of law is considered as personal
property;

*There are properties which by nature are real properties. However, special laws and
judicial decisions may define them in another manner. These will be controlling and will
therefore adopt the status of being a personal property instead

(3) Forces of nature which are brought under control by science; and

*These forces of nature may be for example, electricity, gas, heat, light, oxygen and so
forth which, if controlled by man and became subject of appropriation, will become
personal properties. 

(4) In general, all things which can be transported from place to place without
impairment of the real property to which they are fixed. (335a)

*By nature these things which can be transported from place to place without causing
impairment to where they are previously attached is movable.

Art. 417. The following are also considered as personal property:

(1) Obligations and actions which have for their object movables or demandable sums;
and

*This provision contemplate various contracts which have for their object movable
properties or demandable sums or those amounts which are liquidated or determined.
Being so, the subject matter being movable, it makes the right created therein as
likewise personal right.

(2) Shares of stock of agricultural, commercial and industrial entities, although they may
have real estate. (336a)

*This provision includes all juridical entities although they do not issue shares of stock
which may mean participation or interest in a business. This also recognizes that
although real estate are involved, the law still considers them personal property.
 What are the other classification of personal property?

Art. 418 has further classified movables based on its capability to being used
repeatedly. It can further be classified accordingly:

1. By nature or as to their likelihood of being consumed when it is used according

to their nature as mentioned in Art. 418 of the New Civil Code:

 Art. 418. Movable property is either consumable or nonconsumable. 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. (337)

2. By intention or as to their possibility of being substituted by another property

having the same kind or quality can be either be fungible or being replaceable by an
equal quality and quantity, either by the nature of the substitute or by agreement of the
parties. It is also non-fungibles, in opposite, are irreplaceable because identical objects
must be returned.