Article 415.

The following are immovable property: (Par 1, 3 & 5)

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

 Land is the best example of immovable property.

Nota Bene: A shovelful of land is a personal property since this no

longer adheres to the soil BUT when it is used to cover a
land, it becomes an immovable again.

 Buildings are immovables by incorporation.

 Their adherence to the land must be PERMANENT and

SUBSTANTIAL.
 They are more or less of a permanent structure,substantially adhering
to the land, and not mere superimpositions on the land like
barong-barongs or quonset fixtures PROVIDED there is intent of
permanent annexation.

BASIS:

In Evangelista vs Alto Surety & Ins Co: “The building is immovable property
whether it is erected by the owner, usufructuary, or lessee of the land.”

In Associated Insurance & Surety Co vs Iya: “A building is an immovable

property irrespective of whether or not said structure and the land on which it is
adhered to belong to the same owner. It cannot be divested of its character of
a realty by the fact that the land on which it is constructed belongs to another.”

GENERAL RULE:

In Associated Insurance & Surety Co vs Iya:

“The execution of a chattel mortgage on the building is null and void,

notwithstanding registration in the Chattel Mortgage Registry.”

EXCEPTION:

In Evangelista vs Alto Surety & Ins Co and cited in Navarro vs Pineda:

“A property may have a character different from that imputed to it by the

law, i.e. the parties to a contract may, by agreement, treat as personal property
that which, by nature, would be real property. The view that parties to a deed of
chattel mortgage may agree to consider as a personal property is good only in
so far as the contracting parties are concerned. The same is based on the
principle of estoppel.”

HENCE, a house may be the object of a chattel mortgage contract,

PROVIDED that: 1. The parties to the contract agree
 2. No innocent 3rd parties will be prejudiced.
Nota Bene: Where a building is sold to be demolished immediately, it
is to be regarded as movable because the subject matter
of the contract is really the materials thereof.

 “Constructions of All Kinds”

 The attachment must be more or less PERMANENT (intent to attach

permanently is important)
 In MERALCO Securities Industrial Corp vs Central Board of
Assessment of Appeals,
“It should be attached to the land in such a way it cannot be
separated therefrom without breaking the material or deterioration
of the object.”

Nota Bene: Roads (whether public or private) are immovable. They

are considered integral parts of the land.
Examples: railroads

A wall or a fence is construction by incorporation as long

as there is intent to attach it permanently, although it is
merely made to rest on the land.

(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;

REQUISITES:

 The attachment need not be made by the owner.

 It cannot be separated from the immovable without breaking the material
or deterioration of the object.
 The breakage or injury, in case of separation, must be SUBSTANTIAL.

In MERALCO vs CBAA,

“ 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.”

In TSAI vs CA,

“The fact that the machineries were bolted or cemented on real property
mortgaged does not make them ipso facto immovable under Art 415 (3) and (5)
as the parties’ intent has to be looked into. Even if the properties appear to be
immovable by nature, nothing prohibits the parties from treating them as
chattels to secure an obligation under the principle of estoppel.”
(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;

DEFINITION OF TERMS:

 Machinery- machines and appliances used in industrial arts.

 Equipment- physical facilities available for production, including buildings,
machineries, and tools.
 Implements- pertain to whatever may supply to what is lacking especially
an instrument, tool or utensil.

REQUISITES:

 It must be placed by the owner of the tenement or his agent.

 The industry or works must be carried on in a building or on a piece of
land.
 The machineries must be Essential and principal element of an 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 and not merely
incidental
 They meet the needs of the said industry or works.

In FELS Energy Inc. Vs Province of Batangas,

“The equipment and living quarters of the crew, being permanently

attached to the platform which is also an immovable, are immovables. This is
especially so that they are intended to meet the needs of the business and
industry of the corporation.”

Nota Bene:

Machinery, movable in nature, becomes immobilized when placed on a

plant by the owner of the property but not so when placed by a tenant,
usufructuary or a person having only a temporary right UNLESS:

1. Such person acted as agent of the owner of the land;

2. When the tenant promised to leave the machinery on the tenement at
the end of the lease.

In Board of Assessment Appeals vs Manila Electric Company,

“Poles and steel supports or towers of an electric company are not real
property for the purpose of the real property tax, since they are merely
attached to a square metal frame by means of bolts which could easily be
dismantled and moved from place to place.”
Article 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;

In Sibal vs Valdez, “ Although Art 415 par 2 considers growing crops as

immovable, they are however, recognized as personal property by the Chattel
Mortgage Law for purposes of chattel mortgage contracts.”

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

Examples: electricity, gas, rays, heat, light, oxygen, atomic energy, water
power, etc.

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

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

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

(2) Shares of stock of agricultural, commercial and industrial entities, although

they may have real estate. (336a)

 Demandable sums- amounts which are liquidated and determined.

 Entities- juridical persons such as partnerships, although they do not
issue shares of stocks.
 Stocks: “Participation or interest in a business is a personal property but
interest in the real property of a business entity is a real property.”
Article 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.

BY NATURE: Consumable and Non-consumable

CLASSIFICATION
OF MOVABLES By Intention:
1. Fungible-replaceable by an EQUAL quality
and quantity
2. Non-Fungible-irreplaceable because
identical thing must be returned

ILLUSTRATION:
Rice is by nature consumable but if the parties intended it for display, it
is non-fungible because the identical rice needed be returned. If it is
loaned for consumption, it is both consumable and fungible.

Article 419. “Property is either of public dominion or of private ownership.

(338)”

 Public dominion- owned by the state in its public or sovereign capacity

and intended for public use and for use of the state as a juridical person.
 Private Ownership
 Property owned by the State and its political sibdivisions in
their private capacity and is known as Patrimonial property
 Property belonging to private persons, either individually or
collectively.

Characteristics of Properties of Public Dominion:

1. Outside the commerce of man
2. Cannot be acquired by prescription
3. Cannot be registered or subject of a Torrens title
4. Cannot be levied upon by execution, nor can they be attached
5. Generally, they can be used by everybody
6. Either real or personal property
Article 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 State, 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.
(339a)

Article 421. All other property of the State, which is not of the character stated
in the preceding article, is patrimonial property. (340a)

Patrimonial property – not devoted to public use, public service, or

development of national wealth and is owned by the State in its
private capacity.
Examples:
1. Friar lands
2. San Lazaro Estate
3. Lands obtained in escheat proceedings
4. Municipal owned waterworks system

Nota Bene: Patrimonial properties may be acquired through prescription

Article 422. Property of public dominion, when no longer intended for public
use or for public service, shall form part of the patrimonial property of the State.
(341a)

Article 423. The property of provinces, cities, and municipalities is divided into
property for public use and patrimonial property. (343)

Article 424. Property for public use, in the provinces, cities, and municipalities,
consist 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)

Article 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. (345a)
 OWNERSHIP (ART 427-439)

Article 427. Ownership may be exercised over things or rights. (n)

OWNERSHIP - the independent and general right of a person to the exclusive

enjoyment and control of a thing in his possession, enjoyment, disposition, and
recovery, subject only to the restrictions or limitations established by law and
the rights of others.

KINDS OF OWNERSHIP:
1. Full Ownership (dominium or jus in re propia) - includes all the rights of
the owner
2. Naked Ownership (nuda proprietas) - where the right to the use and the
fruits has been denied

a. Naked ownership + Usufruct = Full ownership

3. Sole Ownership - ownership is vested only in one person

4. Co-Ownership/ Tenancy In Common - ownership is vested in two or more
owners unity of the property, plurality of
the subjects; each co-owner is the owner
of the whole and at the same time, the
owner of an undivided part thereof.

Article 428. The owner has the right to enjoy and dispose of a thing, without
other limitations than those established by law.

The owner has also a right of action against the holder and possessor of the
thing in order to recover it.

Seven Rights Of Ownership

1. Jus Possidendi (right to possess)

a. Right to hold the thing and does not necessarily include the right to
use (e.g. contract of deposit)

2. Jus Utendi (right to use and enjoy)

a. Includes the right to exclude any person from the enjoyment and
disposal thereof
b. Limitation: use in such a manner as not to injure the rights of a third
person

3. Jus Fruendi (right to fruits)

a. Right to the fruits
b. Kinds of Fruits
i. Natural
ii. Industrial
iii. Civil
4. Jus Abutendl (right to consume)
a. Includes the right to transform or abuse by its use
5. Jus Disponendi (right to dispose)
a. Also includes the right not to dispose, or to alienate
6. Jus Vindicandi (right to vindicate or recover)
a. Includes the right of action against the holder and possessor of the
thing in order to recover it
7. Jus Accesionis (right to accessories)

ACTIONS TO RECOVER POSSESSION

MOVABLE PROPERTY: REPLEVIN I MANUAL DELIVERY

1. Both principal and provisional remedy

2. Plaintiff shall state in the affidavit that he is the owner of the property
claimed, particularly describing it or that he is entitled to possession, and that it
is wrongfully detained by the other
3. Plaintiff must also give a bond double the amount of value of the property

Period: 4 or 8 years from the time the possession thereof is lost, in

accordance with Art. 1132

When Replevin Not Allowed:

1. Property is placed In Custodia legis
2. Taken for tax assessment
3. Seized under Writ of execution
4. A machinery and equipment used for an industry and Indispensable for
the carrying on of such industry (Reason: they are considered real
properties)
5. Seized under Preliminary attachment.

IMMOVABLE PROPERTY:
1. Accion lnterdictal
2. Accion Publiciana
3. Accion Reinvindicatoria
4. Writ of Possession- An order directing the sheriff to place a successful
registrant under the Torrens system in possession of the property
covered by a decree of the court

When proper:
a) foreclosure, judicial or extra-judicial, or mortgage. PROVIDED that
the mortgagor has possession and no third party has intervened
b) Ejectment
c) Execution sales
d) Eminent domain proceedings
e)Land registration cases
5. Writ of Demolition - Necessarily issued with writ of possession

Article 429. The owner or lawful possessor of a thing has the right to exclude
any person from the enjoyment and disposal thereof. For this purpose, he may
use such force as may be reasonably necessary to repel or prevent an actual
or threatened unlawful physical invasion or usurpation of his property. (n)

Principle of Self-Help

“The owner, or the lawful possessor, has the right to exclude any person from
the enjoyment and disposal of the property by the use of such force as may be
reasonably necessary to repel or prevent actual or threatened unlawful
physical invasion or usurpation of his property.”

GENERAL RULE: A person cannot interfere with the right of ownership of

another.

EXCEPTION: Doctrine of Incomplete Privilege or State of Necessity (Art

432)

Article 430. Every owner may enclose or fence his land or tenements by
means of walls, ditches, live or dead hedges, or by any other means without
detriment to servitudes constituted thereon.

Article 431. The owner of a thing cannot make use thereof in such manner as
to injure the rights of a third person

Article 432. The owner of a thing has no right to prohibit the interference of
another with the same, if the interference is necessary to avert an imminent
danger and the threatened damage, compared to the damage arising to the
owner from the interference, is much greater. The owner may demand from
the person benefited indemnity for the damage to him. (n)

DOCTRINE OF STATE OF NECESSITY

State of Necessity - the principle that authorizes the destruction of a property

which is lesser in value to avert the danger posed to another property the value
of which is much greater.

Requisites of State of Necessity

1. Interference necessary to avert an imminent danger.

2. Damage to another much greater than damage to property

NOTA BENE:
In case of conflict between the exercise of the right of self-help and a
proper and licit state of necessity, the latter prevails because there is no
unlawful aggression when a person or group of persons acts pursuant to the
right given in a state of necessity.

Article 433. Actual possession under claim of ownership raises disputable

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

Requisites to Raise the Disputable Presumption of Ownership

1. Actual possession of the property
2. Possession is under the claim of ownership

NOTA BENE: Possessor of property has the presumption of title In his favor.

Article 434. In an action to recover, the property must be identified, and the
plaintiff must rely on the strength of his title and not on the weakness of the
defendant's claim. (n)

Judicial Process contemplated For Recovery Of Property:

1. Ejectment suit;or
2. Reinvindicatory action

The person claiming to possess a better right must prove:

1. That he has better title to the property; and
2. Identity of the property

Article 435. No person shall be deprived of his property except by competent

authority and for public use and always upon payment of just compensation.

Should this requirement be not first complied with, the courts shall protect and,
in a proper case, restore the owner in his possession.

Article 436. When any property is condemned or seized by competent

authority in the interest of health, safety or security, the owner thereof shall not
be entitled to compensation, unless he can show that such condemnation or
seizure is unjustified.
Article 437. The owner of a parcel of land is the owner of its surface and of
everything under it, and he can construct thereon any works or make any
plantations and excavations which he may deem proper, without detriment to
servitudes and subject to special laws and ordinances. He cannot complain of
the reasonable requirements of aerial navigation.

Surface Rights - The owner of a parcel of land is the owner of its surface an
everything under it.

NOTA BENE: HORIZONTALLY- extends up to the boundaries

VERTICALLY- extends below the surface and above to it to the

extent required by the economic interest of or utility to the
owner, in relation to the exploitation that may be made of the
property.

Airspace- The owner cannot complain of the reasonable requirements of aerial

navigation.

In NAPOCOR vs Ibrahim,

“The landowner’s right extends to such height or depth where it is possible

for them to obtain such benefit or enjoyment, and it is extinguished beyond
such limit as there would be no more interest protected by law.”

Article 438. Hidden treasure belongs to the owner of the land, building, or
other property on which it is found.

Nevertheless, when the discovery is made on the property of another, or of the

State or any of its subdivisions, and by chance, one-half thereof shall be
allowed to the finder. If the finder is a trespasser, he shall not be entitled to any
share of the treasure.

If the things 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.

Concept of Treasure:
1. Hidden and unknown deposit (such that finding it would indeed be a
discovery)
2. Lawful owner does not appear
3. Consists of Money, jewels, or other precious objects. (not raw materials)
GENERAL RULE: The hidden treasure belongs to the owner of the land,
building, or other property on which it is found.
EXCEPTION:
The finder is entitled to one-half provided:

1. Discovery was made on the property of another, or the

State or any of its political subdivisions;
2. The finding was made by chance
3. The finding is not a co-owner of the property where it is
found;
4. The finder is not a trespasser;
5. The finder is not an agent of landowner,
6. The finder is not married under the absolute community or
the conjugal partnership system

Article 439. By treasure is understood, for legal purposes, any hidden and
unknown deposit of money, jewelry, or other precious objects, the lawful
ownership of which does not appear.