FINALS.PROPERTY.

2B

Question 1
20 Points

Problem No. 1. A is the usufructuary on the land owned by B, with the permission given by A,
C, a

treasure hunter, started digging and by sheer luck, has found a porcelain jar full of gold coins,

precious stones and jewelries which are of value to art. The Japanese Government lay claim as

part of the Yamashita Treasure. 439 566

1a]. Who is entitled to the treasure? Explain your answer. did not ask

permission from him being the lawful owner of the land neither the Japanese Government is the

owner nor has any legal right over the same. Decide, by stating your reason on both claims of B.

1c]. What right does the state or A, the usufructuary over the treasure when it is of value to or
science? Explain

1d]. If B and C are married, do their respective spouses/wives likewise entitled to any share over

their respective shares as owner/finder? Explain

Answer:
1a] The land owner (B) is entitled to one-half of the treasure and the other half of the treasure
belongs to the treasure hunter (C). The usufructuary (A) is not entitled to the treasure, because,
according to the civil code, the latter is considered as a stranger with respect to hidden treasure
since the latter is not the one who found the treasure on the land or tenement.

1b] B is wrong in stating that C is a trespasser, according to the civil code, because A permitted
C to dig on the said land, and A as a usufructuary, covers all the uses and benefits of the entire
property.

B is correct in stating that the Japanese Government is the owner nor has any legal right over the
same, according to the civil code, because the Japanese Government is an owner in bad faith
since they got the yamashita treasure over a war.

1c] A does not have a right but the State, according to the civil code, may acquire the treasure at
their just price, which shall be divided in conformity with the rule stated, since the thing found
has interest to science or arts.
1d] If B and C are married, according to the family code, both of their shares will go straight to
their conjugal property.

Question 2
20 Points

Problem No. 2. A, knowing fully well that he does not own the land nor any authority to use, had

started and completed the construction of a residential house on the land of B who, had seen

and quite aware of but, he [B] did not stop, object nor call A's attention.

2a]. Who between A builder and B as owner of the land is entitled to the house? State the legal

basis.

2b]. Since B does not like the house, can B demand A [builder], to remove, demolish the house

and restore the land to its original condition? State and explain the legal principle applicable in

this case and why?.

2c]. Supposing B chooses to appropriate the house, what is B's obligation to A as builder? What
right does A have over the property if any? Explain

2d]. Supposing the house constructed by A is being leased by D at P5,000.00 per month, who is

entitled to the rent and from what period? Explain, state the legal basis.

Answer:

2a] According to the civil code, since both of them acted in bad faith, it is as if both had acted in
good faith. Therefore, B is entitled to the house upon payment of the proper indemnity to A, or to
compel A to buy the land.

2b] No, B cannot demand A to demolish the house, since both already acted as if they are both in
good faith. According to the civil code, B only has the right to demand from A to demolish the
house if only A is the one who acted in bad faith.

2c] If B chooses to appropriate the house, according to the civil code, the obligation of the latter
is to indemnify A. The right of A over the property is the right of retention for necessary and
useful expense.

2d] A is entitled to the rent leased by D, according to the civil code, by right of retention for
necessary and useful expense until the time A is indemnified by B.
Question 3
20 Points

Problem No. 3. Quieting of title is both substantive and procedural law.

3a]. Is an action for quieting of title proper when the property involved is an untitled property?

Explain

3b]. Does an action for quieting of title prescribes? Explain

3c]. In case of sale, the rule is, ownership transfers only upon delivery. What is the exception
and,

the exception to the exception?

3d]. In case of doubt, whether alluvium or avulsion has taken place, how should it be resolved?

State the rationale of the rule.

Answer:

3a] Yes, the action for quieting of title will prosper since, according to the civil code, as a rule only real
property could be the subject matter of quieting of title, so even if it involves untitled property it is still a
real property.

3b] It depends. If the plaintiff is in possession, according to the civil code, the action for quieting is
imprescriptible, because the owner is given the continuing aid by the court to ascertain and determine
the nature of such claim and its effect on his title. If the plaintiff is not in possession, the action for
quieting will prescribe after ten (10) years if ordinary or thirty (30) years if extraordinary.

3c] Exception: Where goods are shipped, and by the bill of lading the goods are deliverable to order of
the buyer or of his agent, but possession of the bill of lading is retained by the seller or his agent, the
seller thereby reserves a right to the possession of the goods as against the buyer.

Exception to the Exception:

(1) Where delivery of the goods has been made to the buyer or to a bailee for the buyer, in pursuance of
the contract and the ownership in the goods has been retained by the seller merely to secure
performance by the buyer of his obligations under the contract, the goods are at the buyer's risk from
the time of such delivery;

(2) Where actual delivery has been delayed through the fault of either the buyer or seller the goods are
at the risk of the party in fault.

3d] In case of doubt, the court is bound to apply the plain language of a statute. If the language is clear
and unambiguous, it will simply apply the language.
Question 4
20 Points

Problem No. 4. Easement/servitude is a limitation, a burden or encumbrance on one's

proprietary rights

4a]. Personal easement is a servitude upon personal property and real easement is a servitude

upon immovable property, true or false? Explain your answer otherwise, no credit will be given.

4b]. Explain why legal easement is said to be an involuntary easement? Why a road right of way

whether legal or voluntary, cannot be acquired by prescription? Explain

4c]. A donated to his nephew X, a piece of agricultural land who accepted by taking immediate

possession. Two days later, A again donated the usufruct over the same land to Z who likewise

accepted it and communicated his acceptance to A and B. Are both donations to X and Z valid,

void or voidable? Whose donation will be preferred? Explain

4d]. Explain the meaning "that prescription does not run against co-owners in a co-ownership"
and why? Is

there any exception? Does the right of a co-owner to demand partition of the property owned in

common prescribes? Explain. Is an oral partition among co-owners of a real property valid?
Explain.

Answer:

4a] False, according to the civil code, personal easement is a servitude upon personal property because
it is for the benefit of one or more persons or of a community like easement of right of way, while real
easement is a servitude upon immovable property because it is for the benefit of another immovable
belonging to a different owner like easement of water.

4b] Legal Easement is involuntary easement because it is created by law or enforced, not by agreement.

Road right of way cannot be acquired by prescription, whether legal or voluntary, because it is a
discontinuous easement. According to the civil code, an easement which is used at intervals and depend
upon the acts of man is acquired only by title.

4c] Both donation is voidable to X and Z, according to the civil code, whoever registered the title first
has the better right to the donation of the said land.
4d]

Question 5
20 Points

Problem No. 5. Only object which can be appropriated is considered property.

5a]. How does the law classify immovable into four categories?

5b]. What are the three [3] types of accession involving personal property and state the rule in
the

determination of the ownership of the object resulting therefrom?

5c]. X delivered a diamond ring to Y for him to sell on commission basis. Y however, pawned
the

ring and keep the proceeds for his own use and benefit. Five years later, X saw Z wearing the

ring and demanded for its return. Z refused claiming that he acquired it five years ago from a

pawnshop at a public auction sale. Can X demand for its return? Does X have to indemnity Z?

5d]. Is a usufructuary entitled to refund/indemnify for the useful improvements he introduced on

the

property? How about expenses for useful Improvement incurred by the naked owner? Can he

collect it from the usufructuary? Explain and state the reason.

Answer:

5a] Law classifies immovable property into Real Property by Nature, Real Property by Incorporation,
Real Property by Destination & Real Property by Analogy

5b] Adjunction – the union of two movable things belonging to different owners, in such a manner that
they cannot be separated without injury, thereby forming a single object.

Mixture – it takes place when 2 or more thing belonging to different owners are mixed or combined with
the respective identities of the component parts destroyed or lost.

Specification – the transformation of another’s material by the application of labor.

5c] Yes, X can demand Z for the return of the ring by indemnifying the latter, because Z is a buyer in
good faith since the latter bought the ring at a public auction sale. According to the civil code, an owner
who lost or has been unlawfully deprived of a movable, may recover it from the person in possession of
the same.
5d] No, usufructuary is not entitled to refund/indemnity, according to the civil code, usufruct may
introduce improvements for his benefit but does not retain the right to be indemnified for his efforts.
For the naked owner, he is entitled to be refund for his right to the fruits of his improvements. As to
collect from the usufruct the expenses incurred for improvements, according to the civil code, the naked
owner stands to benefit from such improvements and should not collect from the usufruct for such
improvements.