PROPERTY

DEFINITION
- Property refers to “all things which are or may be the object of appropriation” (Art. 414)

• CHARACTERISTICS
1. Utility
2. Individuality
3. Susceptibility of appropriation

• CLASSIFICATION
- In general, things are either:
(1) Corporeal or Tangible, or
(2) Incorporeal or Intangible

- Corporeal things may be further classified by reason of:

(1) mobility,
(2) ownership,
(3) definiteness,
(4) existence,
(5) divisibility,
(6) importance,
(7) capability of substitution,
(8) consumability, and
(9) alienability

- The most important classification is based on mobility.

-
REASON: Because different provisions of the law govern the acquisition, possession,
disposition, loss and registration of immovables and movables and stricter formalities are
required by law in transactions involving immovables, e.g. in donations (Art. 749), contribution
of immovables to a partnership (Art. 1771) and antichresis (Art. 2134).

PROPERTY BASED ON MOBILITY

1. IMMOVABLES / REAL PROPERTY

- The list of immovables under Art. 415 is considered exclusive (Standard Oil v. Jaramillo, 44
Phil. 630).
Art. 415 An Immovable by:
1. Land, buildings, roads and Nature and Incorporation
constructions of all kinds adhered to
the soil;
2. Trees, plants, and growing fruits, Incorporation

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 while they are attached to the land or
form an integral part of an
immovable;
3. Everything attached to an immovable Incorporation
in a fixed manner, in such a way that
it cannot be separated therefrom
without breaking the material or
deterioration of the object;
4. Statues, reliefs, paintings, or other Destination
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 Destination
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, Destination
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; (Animals must have intent
to return when outside their breeding
places, e.g. homing pigeons.)
7. Fertilizer actually used on a piece of Incorporation
land;
8. Mines, quarries, and slag dumps, Nature
while the matter thereof forms part
of the bed, and waters either running
or stagnant;
9. Docks and structures which, though Destination
floating, are intended by their nature
and object to remain at a fixed place
on a river, lake, or coast; and

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 10. Contracts for public works, and Analogy
servitudes and other real rights over
immovable property.

2. MOVABLES

- GENERAL TESTS OF MOVABLE CHARACTER - under Art. 416:

(1) whether the object can be carried from place to place;
(2) whether a change of location can be effected without injury to an immovable to which the
object is attached, and
(3) whether the object is included in any of the ten paragraphs of Art. 415.

• Also includes
- Real property which by any special provision of law is considered as personal property
(e.g. growing crops under the Chattel Mortgage Law),
- Forces of nature,
- Obligations and actions which have for their object movables and sums of money, and
(4) shares of stock (Arts. 416-417).

PROPERTY BASED ON OWNERSHIP

1. PROPERTY OF PUBLIC DOMINION

a. Public Use; (roads)
b. Public Service; (government buildings)
c. Development of National Wealth. (forest lands, mines)

Characteristics:
They cannot be:
(1) alienated, leased or otherwise be the subject matter of contracts;
(2) acquired by prescription;
(3) attached nor levied upon by execution;
(4) burdened by any voluntary easement;
(5) registered under the Land Registration Law and be the subject of a Torrens Title.

2. PATRIMONIAL PROPERTY
- Property owned by the State in its private capacity. (friar lands, slaughterhouses, markets,
cemeteries and waterworks; alienable and disposable lands of the public domain.)
- Property of public dominion, when no longer intended for public use or public service, shall
form part of the patrimonial property of the State. (Art. 422)
• Any such conversion happens only if the property is withdrawn from public use by
virtue of a formal declaration on the part of the government.

3. PRIVATE PROPERTY

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- Those belonging to private persons, either individually or collectively, including the
patrimonial property of the State. (Art. 425)

OWNERSHIP

DEFINITION: A relation in private law by virtue of which a thing pertaining to one person is
completely subjected to his will in everything not prohibited by law or the concurrence with the
rights of another.

DISPUTABLE PRESUMPTION OF OWNERSHIP: arises from actual possession under claim of

ownership. The true owner must resort to judicial process for the recovery of the property (Art.
433).

• Modes of Acquiring Ownership

1. Occupation
2. Intellectual creation
3. Law
4. Donation
5. Succession
6. Tradition, as a consequence of certain contracts
7. Prescription

• Kinds of Ownership
1. Full ownership (dominium or jus in re propia)
2. Naked ownership (nuda proprietas)
3. Sole ownership
4. Co-ownership

• Rights of an Owner
1. To the full use and enjoyment of property (Attributes of Ownership under Roman Law)
a. right to possess (jus possidendi)
b. right to use (jus utendi),
c. right to the fruits (jus fruendi)
d. right to accessions (jus accessionis) – not included in Art. 428
e. right to abuse/consume (jus abutendi)
f. right to dispose (jus disponendi),
g. right to recover/vindicate (jus vindicandi)
2. To use force (Doctrine of Self-help)
- the right to use force as may be reasonably necessary to repel or prevent an actual or
threatened unlawful physical invasion or usurpation of one’s property. Note: If
possession is already lost, the owner must resort to judicial process for the recovery of
his property
3. To fence

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 Art. 430 - the right to enclose or fence one’s land, without detriment to
servitudes constituted thereon
4. To construct, plant & excavate
Art. 431 - the right to construct on one’s land and make any plantations thereon and
excavations therein, without detriment to servitudes and subject to special laws and
ordinances, including reasonable requirements for aerial navigation

Recovery of Possession
Kinds of Remedy Definition Prescription
Property
Real Accion Interdictal • summary action to recover 1 year (Art. 1147)
Property physical or material
possession (forcible entry &
unlawful detainer)
• One year or less
Accion Publiciana • plenary action to recover 8 years (Art. 1140)
the right of possession
• More than a year
Accion Reivindicatoria • an action to recover full 30 years (Art. 1141)
ownership
Personal Replevin • an action or provisional 4 years
Property remedy where the
complainant prays for the
recovery of the possession of
personal property

• Limitations on Ownership
1. For the benefit of the State
a. Police Power Art. 436
b. Eminent Domain Art. 435
c. Taxation
d. Regalian Doctrine Art. XII, Sec. 2, 1987 Constitution
2. Imposed by LAW
a. Should not injure the rights of a third person (Art. 431)
b. PRINCIPLE OF STATE OF NECESSITY (Art. 432)12
c. Legal easements (Art. 430, Arts. 637-687)
d. Regulation on ruinous buildings & trees in danger of falling (Arts. 482-483)
e. Reasonable requirements for aerial navigation (Art. 437)
3. Imposed by grantor / transferor
- Donor / testator may prohibit partition for 20 years (Art. 1083)
4. Imposed by the owner on himself
- Mortgages, pledges, lease rights, voluntary easements
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• HIDDEN TREASURE
DEFINITION & REQUISITES: (Art. 439)
(1) a deposit of money, jewelry or other precious objects;
(2) hidden and unknown, and
(3) lawful ownership thereof does not appear

Hidden treasure in another person’s land

• ½ to the owner of the land

• ½ to the finder, provided the following requisites are fulfilled:

(1) What is found is a hidden treasure, as defined by the Civil Code;
(2) The finder is not a trespasser;13 and
(3) The discovery must be by chance 14  [Art. 438]

• If the thing found be of interest to science or the arts, the State may acquire them at their just
price which shall be divided in conformity with the rule stated.

ACCESSION

Definition: The right by virtue of which the owner of a thing becomes the owner of everything
that it may produce or which may be incorporated or attached thereto, either naturally or
artificially (Art. 440).
- The accessory follows the principal (accession cedit principali)

Classifications:

General Classification Specific Classification Definition

Spontaneous products of the soil & the
1. Natural Fruits young & other products of animals (Art.
ACCESSION DISCRETA 442)
Natural Accession Those produced by lands of any kind
(right of ownership to 2. Industrial Fruits through cultivation or labor (Art. 442)
the products of a Refer to rents of buildings, price of
thing) leases of lands & other property & the
3. Civil Fruits amount of perpetual or life annuities or
other similar income (Art. 442)

Accession Industrial Whatever is built, planted or sown on

(Immovables) one’s land (Art. 445)

Whatever is incorporated or attached

to one’s land due to the exclusive work

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 of nature, such as:
Accession Natural • Alluvion (Art. 457),
(Immovables) • Avulsion (Art. 459),
ACCESSION • Change in the course of a river (Art.
CONTINUA 461) and
Artificial Accession • Formation of islands (Art. 465).
(right of ownership
over a thing 1. Adjunction / The union of two movables belonging
incorporated, either Conjunction to different owners, forming a single
naturally or (Movables) object, in such a way that they cannot
artificially, to that usually be separated without injury
which already belongs (Art. 466)
to the owner)
2. Mixture The combination or union of
(Movables) movables/materials belonging to
different owners where their respective
identities are lost (Arts. 472-473)
3. Specification The giving of new form to the
(Movables) movables/materials belonging to
another by the application of labor (Art.
474).

Accession Discreta

• Instances when the owner is not entitled to the fruits:

1. Possession in good faith by another person;
2. Usufruct;
3. Lease of land; and
4. Antichresis.

• Reimbursement, when needed:

- He who receives the fruits has the obligation to pay the expenses made by a third
person in their production, gathering and preservation. Art. 443
(They must have been necessary, and not luxurious nor excessive. Indeed, they must be
commensurate with those ordinarily necessitated by the product)

Accession Continua

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1. RULE WHEN LANDOWNER BUILDS WITH THE MATERIALS OF ANOTHER (ART. 447)
OWNER OF MATERIALS IN GOOD OWNER OF MATERIALS IN
FAITH BAD FAITH

Landowner shall pay the value of

the materials. However, the owner
LANDOWNER IN GOOD of the materials has the right to
FAITH remove them if he can do so
without injury to the work
constructed.
The owner of the materials
loses the materials without
right to indemnity (Art. 449
by analogy)

Landowner shall pay the value of

the materials, plus damages. *Same rule as when both the
Alternatively, the owner of the landowner and the owner of
LANDOWNER IN BAD materials has the right to remove the materials are in good
FAITH them, even though their removal faith*
will cause injury to the work
constructed, plus the right to be
paid damages

2. RULE WHEN ON ONE’S LAND, ANOTHER BUILDS, PLANTS OR SOWS (ARTS. 448-456)
BUILDER/PLANTER/SOWER IN GOOD BUILDER/PLANTER/SOWER IN BAD
FAITH FAITH

The landowner has the following
options:
(1) appropriate as his own the
building, trees or plants, after
LANDOWNER payment of the indemnity Arts. 546
IN GOOD and 548, or
FAITH
(2) oblige the B/P to pay the price of
the land, and the sower, the proper
rent. However, the B/P cannot be
obliged to buy the land if its value is
considerably more than that of the
building or trees. In such case, he shall
pay reasonable rent, based on the
terms agreed upon by the parties or
The b/p/s loses to the landowner
what he built, planted or sown,
without right to indemnity. He shall
moreover pay damages to the
landowner (Arts. 449, 451).
However, he shall be entitled to
reimbursement from the landowner
of the necessary expenses made for
the preservation of the land (Art.
452), without right of retention (Art.
546).
If the landowner does not wish to
utilize the building, trees or plants,
he has the following options: (1)
demand the demolition of the

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 fixed by the court. building, or the removal of the trees
(Art. 448) or plants at the expense of the
b/p/s, or (2) to compel the b/p to
pay the price of the land, and the
sower the proper rent, with
entitlement to damages in either
case. (Arts. 450, 451)
The landowner shall pay the value of
the building, trees or plants, plus
damages. *Same rule as when both the
LANDOWNER Alternatively, the b/p/s has the landowner and the builder /
IN BAD FAITH option to remove the building, trees planter /sower are in good faith*
or plants, even though this would (Art. 453)
cause injury to the land, with the
right to be paid damages.
(Art. 454, in rel. to Art. 447)
• The above rules may be applied to land held in common, upon termination of co-
ownership and good faith is established. It may also apply, by analogy, with respect to
payment of indemnity, when a landowner sells his land but retains any improvement
standing thereon.

3. RULE WHEN ON ONE’S LAND, ANOTHER PERSON BUILDS WITH THE MATERIALS OF YET
ANOTHER PERSON
OWNER OF THE MATERIALS IN GOOD OWNER OF THE MATERIALS
FAITH IN BAD FAITH

LANDOWNER & The builder shall pay the value of the

BUILDER BOTH IN materials, with subsidiary liability on
GOOD FAITH the part of the landowner if the
builder is insolvent.
If the landowner opts to appropriate Owner of the materials will
the building, he shall reimburse the lose them to the landowner /
builder the value of the materials builder, without entitlement
used. to indemnity, plus he needs
LANDOWNER IN The builder shall pay the value of the to pay damages (Arts. 449 &
GOOD FAITH, materials. 451, by analogy)
BUILDER IN BAD If the landowner opts to utilize the
FAITH building and the builder is
insolvent, he shall be subsidiarily
liable for the value of the materials to
the owner thereof.

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 If the landowner opts to demand the
demolition of the building, he is not
liable for the value of the materials
(even subsidiarily).
(Art. 455, in rel. to Art. 450)

ACCESSION NATURAL

1. ACCRETION / ALLUVION

- Increase in the size of one’s land due to the gradual deposit caused by the current of
the waters.

REQUISITES:
(1) that the accumulation of soil or sediment be gradual & imperceptible;
(2) that it be the result of the action of the waters of a river; and
(3) that the land where accretion takes place is adjacent to the bank of the river.

• Accretion can also take place in the lands adjoining the banks of a lake. Hence, the
alluvium deposited on such lands also belongs to the owners thereof.

• The alluvium does not automatically become part of the registered land to which they
have been added. It needs to be registered under the Torrens System, otherwise it can
be acquired by other persons through prescription.

• Effect of increase or decrease of waters to adjoining lands:

• Adjoining lands accidentally inundated by the waters of a pond / lagoon (or of a

lake31) continue to belong to their respective owners. (Art. 458)

• Lands left dry by the natural decrease of the waters of a pond / lagoon (or of a lake) do
not belong to the owners of the lands adjoining such pond / lagoon (or lake) (Art. 458)

FORESHORE LAND: It is land that is adjacent to the sea and alternately covered and
left dry by the ordinary flow of the tides. It belongs to the public domain. The real party-
in-interest for filing a complaint for recovery of its possession is the Republic, through
the OSG.

2. AVULSION

• Dramatic increase in the size of one’s land due to the transfer thereto of a portion of
land forcibly segregated from another estate by the current of a river, creek or torrent.

SEGREGATED LAND: belongs to the land to which it is added, if the owner thereof
does not remove it within 2 years. (Art. 459)

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UPROOTED TREES: belong to the owner of the land upon which they may be cast, if
their owner/s does/do not claim them within 6 months, with payment of the expenses
incurred in gathering or putting them in a safe place. (Art. 460)

3. CHANGE IN THE COURSE OF A RIVER

• ABANDONED RIVER BED: belongs ipso facto to the owners of lands that are
occupied by the new course in proportion to the area lost. However, the owners of the
lands 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. (Art. 461)

• NEW RIVER BED: belongs to the public dominion, even if situated in a private estate
(Art. 462)

• PORTION OF PRIVATE LAND SEGREGATED BY THE CURRENT: ownership

thereof is retained by the owner (Art. 463)

4. FORMATION OF ISLANDS

• If formed on seas within the jurisdiction of the Philippines, lakes and navigable or
floatable rivers – belongs to the State. (Art. 464)

• If formed on non-navigable and non-floatable rivers, belongs to: (1) the owner of land,
adjoining the river, that is nearest to the island; or (2) both owners of the lands on
opposite sides of the river, if the island is in the middle of the river. (Art. 465)

•• The islands must be formed through the successive accumulation of alluvial deposits
and not by avulsion, whereby a portion of a land adjoining a river is forcibly segregated
by the current of the river. The island must be registered; otherwise, it may be acquired
by others through prescription.

ACCESSION WITH RESPECT TO MOVABLES

1. ADJUNCTION / CONJUNCTION
- There is adjunction whenever two movables belonging to different owners are united in such
a way that they form a single object.
CRITERIA TO DETERMINE WHICH IS THE PRINCIPAL:
(1) the thing to which another has been added as an ornament or for that thing’s use or
perfection, and in case this criterion is not applicable,
(2) the thing of greater value; or
(3) the thing of greater volume.

RULES OF ACCESSION (Arts. 466-471)

OWNER OF ACCESSORY OWNER OF ACCESSORY
(OA) IN GOOD FAITH (OA) IN BAD FAITH

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 OWNER OF PRINCIPAL OP acquires the OA loses the accessory,
(OP) IN GOOD FAITH accessory, subject to with payment of damages
indemnification of the to OP
value thereof to the OA.

However, if the things can

be separated without
injury, their respective
owners can demand their
separation.
If the accessory is more
precious or of greater
value than the principal,
OA may demand
separation even if there
would be injury to the
principal thing.
OWNER OF PRINCIPAL OP to pay the value of the *Same rule where both OP
(OP) IN BAD FAITH accessory or suffer its and OA are in good faith.
separation even if there
would be injury, plus
payment of damages.

2. MIXTURE
• The combination or union of movables/materials where their respective identities are
lost.
• If two solids are mixed, the mixture is called COMMIXTION. If two liquids,
CONFUSION.

RULES OF ACCESSION (Arts. 472 & 473)

OWNER 1 IN GOOD OWNER 1 IN BAD FAITH

FAITH

OWNER 2 IN GOOD If both owners are in good Owner 1 loses the thing
FAITH faith (or the mixture is by belonging to him, plus
their will or by chance), co- payment of damages to
ownership is created, with Owner 2.
each owner acquiring a
right to the thing, in
proportion to the part
belonging to him (or in
equal portions if the things

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OWNER 2 IN BAD FAITH
3. SPECIFICATION
• There is specification if a person uses the materials of another in whole or in part to
make a thing of a different kind.
RULES OF ACCESSION (Art. 474)
OWNER OF MATERIALS
(OM) IN GOOD FAITH
USER OF MATERIALS
(UM) IN GOOD FAITH
USER OF MATERIALS
(UM) IN BAD FAITH
are of the same kind &
quantity).
Owner 2 loses the thing *Same rule where both
belonging to him, plus owners are in good faith.
payment of damages to
Owner 1.
OWNER OF MATERIALS
(OM) IN BAD FAITH
UM can appropriate the OM loses his materials,
thing thus created, subject without indemnity, plus
to indemnification of the payment of damages.
value of the materials to (Arts. 449 & 451, by
OM. analogy).
However, if the materials
used are more precious,
OM has the option to: (1)
appropriate the thing thus
created, subject to
indemnification of labor
costs to UM, or (2)
demand the value of the
materials.
OM has the option to: (1) *Same rule where both UM
appropriate the thing thus and OM are in good faith.
created, without payment
of indemnity to UM, or (2)
demand the value of the
materials. UM to pay
damages to OM, in either
case.
However, OM cannot
appropriate the thing thus
created if it is considered
of more value than the
materials, for artistic or
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 scientific reasons.

ACTION TO QUIET TITLE OR TO REMOVE CLOUD THEREON

• To obtain an adjudication that a claim of title to, or an interest in, property adverse to
that of the complainant, is invalid, so that the complainant (and those claiming under
him) may forever afterward be free from any danger of the hostile claim.

NATURE OF THE ACTION: Quasi in rem – action concerning real property that is
enforceable only against the defeated party or his privies.

Requisites:
1. Real Property;
2. Plaintiff title to such real property; and
3. There is a cloud on the title. – There is an outstanding PRICE (proceeding,
record, instrument, claim or encumbrance, which has a pima facie appearance of
validity, but is actually invalid.
Prescription:
In possession – imprescriptible
Not in possession – 10 years from registration of deed of conveyance or issuance of
certificate of title (based on implied trust)

OBLIGATION OF PLAINTIFF, IF ACTION PROSPERED: He must reimburse the

defendant for repairs and improvements made by the latter. (Art. 479)

CO-OWNERSHIP

Goods na ha CANVAS.

xXx

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