[Title V — Possession] agent or merely an instrument in the exercise of
such possession, e.g., possession by a caretaker.
[Chapter 1: Possession and the Kinds Thereof]
[Chapter 2: Acquisition of Possession]
[Chapter 3: Effects of Possession]
(Arts. 523 - 561, NCC)
Possession, In General
Concept and Requisites:
Possession is the holding of a thing or the enjoyment of a right.
Requisites:
(1) there must be occupancy, apprehension or taking; and
(2) there must be intent to possess (animus possidendi)
Object of possession: Only things and rights which are susceptible
of being appropriated may be the object of possession.
The following cannot be appropriated and hence, cannot be
possessed:
 property of the public dominion,
 common things(res communes) such as sunlight and air, and
 things specifically prohibited by law.
Kinds of Possession:
1. Possession in one's own name and possession in the name
of another
 Possession in another's name
o refers only to the possession by a person without
any right of his own and one which is strictly of an
 Possession in one's own name embraces all kinds of
possession anchored on a juridical title or right, e.g.,
possession by the owner himself, possession by a lessee or
a mere usufructuary.
 If both the fact of possession and the right to such
possession are found in the same person, such possession
is said to be exercised in one's own name.
 If, on the other hand, the right to the possession is in one
person while the fact of possession is in another person and
the latter merely acts in representation of the former, the
latter's possession is said to be exercised in another's
name.
 In this case, the actual possessor (the agent) is not
considered in law as legal possessor because the
possession is not by virtue of his own right.
 As it is, possession may be exercised in ones own name or
in that of another.
 It is not necessary that the owner or holder of the thing
exercise personally the rights of possession. Rights of
possession may be exercised through agents.
 By way of illustration, it is not necessary that the owner of a
parcel of land should himself occupy the property as
someone in his name may perform the act.
 In other words, the owner of real estate has possession,
either when he himself is physically in occupation of the
property, or when another person who recognizes his rights
as owner is in such occupancy.
 This declaration is in conformity with Article 524 of the Civil
Code providing that possession may be exercised in one's
own name or in the name of another.
  Thus, a mere caretaker of a land has no right of possession
over such land.
2. Possession in the concept of owner and possession in the
concept of holder:
 One who possesses as a mere holder acknowledges in
another a superior right which he believes to be ownership,
whether his belief be right or wrong.
 A possessor in the concept of an owner may be the owner
himself or one who claims to be so.
 The concept of owner refers to the opinion or belief of the
neighbors and the rest of the world and not that of the
possessor.
 In the case of possessors in the concept of holder who are
as such by virtue of a juridical title or right, e.g., lessee,
usufructuary, etc., they are considered as possessors in the
concept of holder with respect to the thing itself, but
considered as possessors in the concept of owner with
respect to their right.
Effects of possession in the concept of owner:
1. It raises a disputable presumption of ownership.
2. It creates a disputable presumption that the possessor has
just title, for which he cannot be obliged to show.
3. It may ripen into ownership thru acquisitive prescription upon
compliance with the other requisites mentioned in Article
1118 of the NCC.
3. Possession in good faith and possession in bad faith:
The possessor is considered in good faith if he is not aware that
there exists in his title or mode of acquisition any flaw which
invalidates it; otherwise, he is a possessor in bad faith.
Possession In Good Faith/Possession In Bad Faith
Concept of Possession In Good Faith:
Requisites:
Under Article 526 of the NCC, the following are the requisites for
possession in good faith:
(1) the possessor has a title or mode of acquisition;
(2) there is a flaw or defect in said title or mode which
invalidates it; and
(3) the possessor is unaware of the flaw or defect, or believes
that the thing belongs to him.
 Hence, a person who has no title or mode of acquisition but
whose occupation of the land of another is by reason of the
latter's tolerance or permission cannot be considered a
possessor or builder in good faith. At the same time, the
good faith of the possessor must rest on a colorable right
and must be beyond a mere stubborn belief in one s title
despite judicial adjudication.
 One whose interest is merely that of a holder, such as a
mere tenant, agent or usufructuary, is not qualified to
become a possessor-builder in good faith. A lessee cannot
be said to be a possessor-builder in good faith as he has no
pretension to be owner.
 Being a mere lessee, he knows that his. occupation of the
premises will continue only for the life of the lease.
 Hence, he cannot claim that he is unaware of any flaw in his
title or that he is under the belief that he is the owner of the
subject premises.
 A possessor in good faith is one who is not aware that there
exists in his title or mode of acquisition any flaw which
invalidates it.
  On the other hand, a possessor in bad faith is one in
possession of property knowing that his title thereto is
defective.
Presumption of Good faith:
(a) Good faith is always presumed, and upon him who alleges bad
faith on the part of the possessor rests the burden of proof.
(b) The presumption m favor of the good faith of the possessor,
however, is only juris tantuman may be overcome by proof to the
contrary. If no evidence is presented proving bad faith, the
presumption of good faith therefore remains for it is likewise
presumed that possession continues to be enjoyed on the same
character in which it was acquired, until the contrary is proved.
(c) This presumption in favor of good faith continues to subsist until
facts exist which show that the possessor is already aware that he
wrongfully or improperly possesses the thing.
In other words, every possessor in good faith becomes a possessor
in bad faith from the moment he becomes aware that what he
believed to be true is not so.
Consequently, possession in good faith ceases from the moment
defects in the title are made known to the possessors, by extraneous
evidence or by suit for recovery of the property by the true owner.
(d) Whatever may be the cause or the fact from which it can be
deduced that the possessor has knowledge of the defects of his title
or mode of acquisition, it must be considered sufficient to show bad
faith.
Tacas v. Tobon
 the Supreme Court held that if there are no other facts from
which the interruption of good faith may be determined, and
an action is filed to recover possession, good faith ceases
from the date of receipt of the summons to appear at the trial
and if such date does not appear in the record, that of the
filing of the answer would control.
Effects of Possession (In Good Faith and In Bad Faith): Upon
the Fruits
If Possessor is in Good Faith:
(a) And Fruits Have Already Been Received:
 The possessor in good faith is entitled to the fruits received
by him before his possession is legally interrupted.
 However, the interruption of good faith on the part of the
possessor need not occur by reason of initiation of legal
proceedings.
 Whatever may be the cause or the fact from which it can be
deduced that the possessor has knowledge of the defects of
his title or mode of acquisition, it must be considered
sufficient to show bad faith.
(b) And Fruits are Still Pending:
 If at the time the good faith ceases, there should be pending
natural or industrial fruits, the possessor and the owner shall
have a right to a Part of the net harvest and each shall divide
the expenses of cultivation, both in proportion to the time of
their respective possessions.
 If the owner does not want to pay his share of the expenses
incurred in connection with the cultivation, he may, at his
option, allow the possessor to finish the cultivation and
gathering of the growing fruits (in lieu of his part of such
expenses), in which case, the owner will not have any share
in the harvest.
  If the owner chooses this option and the possessor refuses
to accept the concession u for any reason whatever the latter
shall lose the right to be indemnified in any other manner.
 In other words, the possessor must accept the owner's
choice otherwise he will lose the right to be indemnified and
this rule will apply even if the value of the fruits are less than
the amount of the expenses incurred.
If Possessor is in Bad Faith:
(a) And Fruits Have Already Been Received:
(b) And Fruits are Still Pending
 He will lose the fruits in favor of the legitimate possessor and
he will not be entitled to the reimbursement of the expenses
he incurred in relation to the fruits, including the expenses he
incurred for its production and preservation because these
expenses are reimbursable to the possessor in bad faith only
if the fruits have already been received by the latter.
 However, the possessor in bad faith is still entitled to recover
the necessary expenses incurred by him for the preservation
of the land or the thing which bore the fruit.

 The possessor in bad faith shall have the obligation to Effects of Possession (In Good Faith and In Bad Faith):
reimburse not only the fruits actually received by him but Upon the Expenses Incurred by Possessors
also those which the legitimate possessor could have
received. Kind of Expenses that Possessor may Incur:
 By fruits which the legitimate possessor could have received
is meant all natural, industrial or civil fruits which the owner (a) Necessary Expenses:
could have received had he been in possession and which
 According to Spanish Commentators, necessary expenses
were not so received by the possessor because of the fraud,
are those made for the preservation of the thing or those
abandonment or negligence of the possessor in bad faith.
without which the thing would deteriorate or be lost.

 According to the Supreme Court, on the other hand,
 However, he has the right to recover from the legitimate
necessary expenses are those incurred not for improvement
possessor the expenses mentioned in Article 443 of the NCC
but for the preservation of the thing and are intended not to
— expenses for production, gathering and preservation of
increase the value thereof but to prevent it from becoming
the fruits — upon the latter's receipt of the reimbursement.
useless.
Note that Article 443 will apply regardless of the good faith or
 Following this concept, our Court held that expenses
bad faith of the possessor.
incurred in the repair of a house which is almost in ruins in
 In addition, the said article will apply irrespective of whether
order to preserve it are considered necessary expenses
the amount of the expenses incurred far exceeds the value
while expenses for filling a lot and building a house thereon
of the fruits.
cannot be considered necessary expenses because they do
 Aside from the expenses mentioned in Article 443, the
not in any manner tend to preserve the property.
possessor in bad faith is likewise entitled to reimbursement
for the necessary expenses incurred by him for the
preservation of the land or the thing which bore the fruit.
(b) Useful Expenses:
 Useful expenses are those incurred to give greater utility or
productivity to the property.
 These expenses increase the value of the thing and results
in improvements, called useful improvements.
 Thus, expenses incurred for the construction of a wall
surrounding the estate, the construction of an irrigation
system and the introduction of improvements in an
uncultivated land were classified as useful expenses by our
Court.
 Those incurred for a chapel, an electric system or an
elevator in a building, a fishpond,dining room, kitchen,
closets or bathrooms, are also considered useful expenses.
(c) Ornamental Expenses (or For Pure Luxury):
 Those which do not increase the productiveness of the thing
but merely embellish the same.
 Although expenses for pure luxury also result in
improvements ("ornament"), such improvements, however,
are for the convenience of definite possessors only. In other
words, the resulting benefit or advantage is merely
accidental or for the benefit only of particular persons. In
useful expenses, on the other hand, the resulting benefit is
essential and absolute which is available to all who may
have the thing.
Rights of Possessors Over Necessary Expenses:
(a) As to  Whether in good faith or in bad faith, a
reimbursement: possessor is entitled to the refund of
necessary expenses incurred by him.
(b) As to right of  A possessor in good faith is also entitled
retention: to retain the thing until he has been
reimbursed therefor.
 Note that this right of retention in relation
to necessary expenses is available only to
a possessor in good faith
 A possessor in bad faith has no right of
retention.
(c) Right of  Its object is to guarantee the
retention: reimbursement of the expenses, such as
those for the preservation of the property,
or for the enhancement of its utility or
productivity.
 It permits the actual possessor to remain
in possession while he has not been
reimbursed by the person who defeated
him in the possession for those necessary
expenses and useful improvements made
by him on the thing possessed.
 Accordingly, a possessor (or builder) in
good faith cannot be compelled to pay
rentals during the period of retentionnor
be disturbed in his possession by ordering
him to vacate.
 In addition, the owner of the land is
prohibited from offsetting or compensating
the necessary and useful expenses with
the fruits received by the builder-
possessor in good faith.
 Otherwise, the security provided by law
would be impaired.
 This is so because the right to the
expenses and the right to the fruits both
 pertain to the possessor, making
compensation juridically impossible; and
one cannot be used to reduce the other.
 Pending reimbursement of the amount due him, the
possessor in good faith is likewise entitled to have his right
recorded in the certificate of title as an encumbrance on the
property so that whoever may get the property will be
forewarned of his right to such retention and refund.
Right of Possessors Over Useful Expenses:
 Only the possessor in good faith is entitled
(a) As to to the refund of useful expenses.
reimbursement  Stated otherwise, a possessor in bad faith
: is not entitled to the refund of useful
expenses.
 In making the refund, the owner (or the
person who has defeated the possessor in
good faith in the possession) has the
option:
o (1) to refund the amount of the
expenses; or
o (2) to pay the increase in value which
the thing may have acquired by reason
of the useful expenses.
(b) As to right  Until the possessor in good faith is
of retention: reimbursed the useful expenses in the
manner mentioned above, he also enjoys
the right to retain the property.
(c)  A possessor in good faith is entitled to a
Improvement refund of the useful expenses incurred by
must still exist: him only if the useful improvement is still
existing at the time of the recovery of the
property by the legitimate possessor.
 If the improvements made by the
possessor in good faith have already
ceased to exist at the time the legitimate
possessor recovers possession, the latter
is in no way benefited.
Hence, he cannot be obliged to refund the
expenses incurred by the possessor
(d) As to right  The possessor in good faith may, in lieu of
of removal: reimbursement for the useful expenses,
remove the useful improvement but
subject to compliance with the following
requisites:
o (1) The removal can be done without
damage to the principal thing;
o (2) The owner does not choose to
appropriate the improvements by
refunding to the possessor in good faith
the useful expenses in the manner
discussed above.
 A possessor in bad faith, on the other
hand, has no right to remove the useful
improvements.
 Under Article 547 of the New Civil Code,
only a possessor in good faith may remove
useful improvements if this can be done
without damage to the principal thing and if
the person who recovers the possession
does not exercise the option of
reimbursing the useful expenses.
.
 Rights of Possessors Over Ornamental Expenses:
(a) As to Whether in good faith or in bad faith, a
reimbursemen possessor is not entitled to a refund of the
t expenses incurred by him for pure luxury or
mere pleasure, called “ornamental expenses.”
(b) As to right  Both kinds of possessors are entitled,
of removal however, to a right of removal of the
ornaments with which they embellished the
principal thing provided that such principal
will suffer no injury.
 If the owner, however, exercises his option to
retain possession of the ornaments by
reimbursing the value thereof to the
possessor, the latter’s right of removal may
not be exercised.
 In determining the extent of the value of the
reimbursement, the good faith or bad faith of
the possessor shall be taken into
consideration since the amount of such
reimbursement shall vary depending on the
possessor’s good faith or bad faith. If the
possessor is in good faith, the extent of the
refund shall be the actual amount expended.
 If the possessor is in bad faith, on the other
hand, the extent of the refund shall be limited
to the value of the ornament at the time the
owner enters into the possession of the
property irrespective of the amount actually
spent by the possessor in bad faith.
(c) The same shall inure to the owner following the
Improvement law on accession, without need of indemnifying
by Time or the possessor in good faith
Nature
Effects of Possession (In Good Faith and In Bad Faith):
Upon the Loss of the Property
(a) If Possessor is in Good Faith:
 He is not liable at all for the deterioration or loss of the thing
possessed.
 However, the possessor who is originally in good faith but
becomes in bad faith upon the service of the judicial
summons on him shall be liable for any deterioration or loss
of the thing possessed only if the same is caused by his
negligence or fraudulent acts after the judicial summons.
(b) If Possessor is in Bad Faith:
 He is liable for any deterioration or loss of the thing "in every
case" even when the same is caused by fortuitous event.
Acquisition of Possession
Modes of Acquisition:
(a) By material occupation:
 Applicable only to corporeal objects and not to rights.
 Under mode, minors and other incapacitated persons may
possession; but they need the assistance of their legal
representatives in order to exercise the rights' which from the
possession arise m their favor.
 This mode includes two forms of constructive delivery:
o (1) tradicion brevimanu: and
o (2) tradicion constitutum possessonum.
(b) By exercise of the right:
 Applies only to acquisition of possession over rights and
requires full civil capacity for its acquisition.
(c) By subjecting the thing or right to the action of our will:
 This particular mode does not involve any material
apprehension but connotes a degree of control over the thing
sufficient to subject the same to the action of one's will.
 What is important in this mode is the intention to possess
manifested by certain facts which are present.
 Included in this mode are the two forms of constructive
delivery known as
o tradicion simbolica and
o tradicion longa manu.
 Hence, the symbolical transfer of the goods by means of the
keys to the warehouse where the goods were stored was
sufficient to show that the depositary was legally placed in
possession of the goods.
 Full civil capacity is likewise required under this mode of
acquisition.
(d) By proper acts and legal formalities:
 Refers to any juridical act by which possession is acquired
or to which the law gives the force of acts of possession.
 Hence, possession can be acquired by juridical acts.
 These are acts to which the law gives the force of acts of
possession.
 Examples of these are donations, succession, execution
and registration of public instruments, and the inscription of
possessory information titles.
 The reason for this exceptional rule is that possession in
the eyes of the law does not mean that a man has to have
his feet on every square meter of ground before it can be
said that he is in possession.
 It is sufficient that he is able to subject the property to the
action of his will.
 Hence, in certain instances minors and other incapacitated
persons may acquire possession under this mode in those
acts where they have the necessary capacity, such as in
simple donation and succession; but they shall need the
assistance of their legal representatives in order to exercise
the rights which from the possession arise in their favor.
The Doctrine of Constructive Possession:
Concept:
 The doctrine of constructive possession applies when the
possession is under title calling for the whole.
 As a rule, the possession and cultivation of a portion of a
tract under claim of ownership of all is a constructive
possession of all, if the remainder is not in the adverse
possession of another.
 Stated otherwise, the actual possession of part of the
property is deemed to extend to the whole because
possession in the eyes of the law does not mean that a In.an
has to have his feet on every square meter of ground before
it can be said that he is in possession.
Requisites:
For this doctrine to apply, the following requisites must be present:
(1) the alleged possessor must be in of a portion or part of
property
(2) he is claiming ownership of the whole area
(3) The remainder of the area must not be in the adverse
possession of another person
(4) The area claimed must be reasonable
Transfer of possession through hereditary succession :
 If possession of property is acquired by way of succession,
whether testate or intestate, such possession is deemed
transmitted to the heir without interruption from the moment
 of the death of the decedent but only if the heir accepts the
inheritance.
 If the heir, on the other hand, validly renounces the
inheritance, he will be deemed never to have possessed the
same.
 The rule in this jurisdiction is that only personal knowledge of
the flaw in one's title or mode of acquisition can make him a
possessor in bad faith, for bad faith is not transmissible from
one person to another, not even to an heir.
 Hence, one who succeeds by hereditary title shall not suffer
the consequences of the wrongful possession of the
decedent, if it is not shown that he was aware of the flaws
affecting it.
 However, the effects of possession in good faith shall not
benefit the heir except from the date of death of the
decedent.
Instances When Possession is Deemed Not Acquired
1. If Acquired Through Force or Violence:
 Possession cannot be acquired through force or intimidation
as long as there is a possessor who objects thereto.
 As such, even if a possessor is physically ousted from the
property through the use if force or violence, he is still
deemed the legal possessor in the eyes of the law.
 Elsewise stated, a person in possession cannot be ejected
by force, violence or terror, not even by the owners, and
notwithstanding the actual condition of the title to the
property.
 If such illegal manner of ejectment is employed, the party
who proves prior possession can recover possession even
from the owners themselves.
 The rule in this jurisdiction is that "he who believes that he
has an action or a right to deprive another of the holding of a
thing, must invoke the aid of the competent court, if the
holder should refuse to deliver the thing.
2. If Acquired Through Acts Merely Tolerated:
 Acts which are merely tolerated do not affect possession.
 In other words, persons whose occupation of a property is
by sheer tolerance of its owners are not considered as
possessors in law.
 In the words of the Court, "tolerance in itself does not bear
any legal fruit, and it can easily be supplanted by a sudden
change of heart on the part of the owner.
 Persons who occupy the land of another at the tatter's
tolerance or permission, without any contract between them,
are necessarily bound by an implied promise that they will
vacate the same upon demand, failing in which a summary
action for ejectment is the proper remedy against them.
3. If Acquired Through Clandestine and Unknown Acts:
 Acts which are executed clandestinely and without the
knowledge of the possessor do not affect possession.
 In order for possession to remain unaffected, it is necessary
that the acts executed must be both clandestine and
unknown to the possessor.
 An act is considered to be have been done clandestine if the
same is not done in secret, hidden or concealed.
 If both requisite are satisfied, meaning, the act executed is
both clandestine and unknown to the possessor, the same
does not affect the true possession of the legal possessor
 As a consequence, the legal possessor's possession is not
deemed interrupted for all legal intents and purposes.
In Case of Conflict over Possession De Facto
How to resolve conflict:
 In case of conflict involving the question of possession as a
fact, the following rules of preference shall govern:
(1) The present possessor shall be preferred.
(2) If there are two possessors, the one longer in
possession is preferred.
(3) If the dates of possession are the same, the one who
presents a title.
(4) If all the foregoing conditions are equal, the thing
shall be placed in judicial deposit pending
determination of its possession or ownership through
proper proceedings.
Who is considered as the present possessor:
 In determining who the present possessor is, the precepts
earlier discussed m Section 187 shall be taken into
consideration.
 Hence, if the controversy is between a previous possessor
and the actual possessor who acquires possession through
force, violence, intimidation, clandestine acts not known to
the previous possessor, the previous possessor shall be
deemed as the present possessor because his possession
was not affected.
 Thus, where a dispute over possession arises between two
persons, the person first having actual possession is the one
who is entitled to maintain the action granted by law;
otherwise, a mere usurper without any right whatever, might
enter upon the property of another and, by allowing himself
to be ordered off, could acquire the right to maintain the
action of forcible entry and detainer, however momentary his
intrusion might have been.
Presumption of Continuity of Possession
 If the present possessor can show proof that he was also in
possession of the property at some previous time, his
possession will be presumed to be continuous covering even
the intermediate period
 This presumption, however, is merely disputable and may be
rebutted by proof to the contrary
 If the present possessor, however, succeeds the previous
possessor by hereditary title, his possession is also deemed
continuous and without any interruption from the moment of
the death of the decedent
 Upon acceptance of the inheritance, the possessor shall be
deemed to have possessed the property continuously and
this rule will apply even if he was not in actual possession of
the property at the time of the death of the decedent and
prior to his acceptance.
 In other words, if the possession is transmitted by hereditary
title, the presumption of continuity of possession is one
which is conclusive and may not be overthrown by proof to
the contrary.
Modes of Losing Possession
Voluntary — by reason of the will of the possessor:
1. Abandonment
Requisites:
(1) the spes recuperandi (hope of recovery or recapture) must
be gone; and
(2) the animus revertendi (intent to recover) must be finally
given up.
Certainly, the possessor of a thing cannot be held to have
abandoned I tl the same until at least he has some knowledge of the
loss of its possession or of the loss of the thing.

Reminders:
 As a consequence of the foregoing requisites, there is no
real intention to abandon a property when, as in the case of
a shipwreck or a fire, things are thrown into the sea or on the
highway.
 To be effective, it is necessary that the abandonment be
made by a possessor in the concept of an owner.
2. By Assignment:
Requisites:
For assignment to be validly made, it is necessary that the:
(1) assignor be in the concept of owner and
(2) that he has the capacity to alienate.
3. By Destruction or loss of the things
 As a mode of losing possession, destruction or loss may
either be physical or juridical.
 It is understood that a thing is lost when it perishes, or goes
out of commerce, or disappears in such a manner that its
existence is unknown or cannot be recovered.
 Since the term is also used in a juridical sense, a thing is
also considered lost when it is expropriated by the
government.
Involuntarily — by reason independent of the will of the
possessor
1. By Possession of another
(1) As to Possession De Facto:
 If the possession of another lasts for more than one
year, only possession de facto is lost but not the real
right of possession (possession de jure)
 Hence, forcible entry and unlawful detainer cases
must be filed within a period of one year from
dispossession since both cases involve question of
possession de facto861 and the case must be filed
before the Metropolitan or Municipal Trial Courts.
 On the other hand, if the dispossession lasted for
more than one year, the proper action to be filed is
an accion publiciana
 since the real right of possession (possession
dejure) is not lost until after the lapse of 10 years.
2. As to Possession De Jure:
 Possession de jure, on the other hand, is not lost until after
the lapse of 10 years.
 But take note of the discussions in Section 183 that the legal
possession is not affected by acts which are merely tolerated
and those executed clandestinely and without the knowledge
of the possessor or through violence as long as there is a
possessor who objects thereto.
 In the aforesaid circumstances, only possession as a fact
(possession de facto) is affected but not the real right of
possession.
 As a consequence, the real right of possession may not be
lost through any of said means.
 In paragraph 4 of Article 555, what is lost after the lapse of
10 years is possession de jure, not necessarily the
ownership of the property.
 Ownership and possession are distinct concepts.
  For ownership to be lost through possession by another, it
must be in the concept of an owner, public, peaceful and
uninterrupted.
 If the possession is in this nature, the same shall ripen into
ownership over a real property after the lapse of ten years if
coupled with a just title or good faith on the part of the
possessor.
 If the possession of this nature last for 30 years, ownership
over a real property is also acquired without need of just title
or of good faith.
Rules on Loss of Possession of Movables and Immovables
1. Loss of Possession of Immovables and Real Rights:
 The possession of immovables and of real rights is not
deemed lost, or transferred for purposes of prescription to
the prejudice of third persons, except in accordance with the
provisions of the Mortgage Law and the Land Registration
laws.
2. Loss of Possession of Movables:
a) Abandoned Movables:
 With respect to abandoned movables, the hope of recovery
(spes recuperandi) is already gone and the intent to recover
(animus revertendi) is already given up. Abandonment is a
mode of losing possession.
b) Misplaced or mislaid movables:
 If the movable is simply misplaced or mislaid, hope of
recovery (spes recuperandi)is not yet gone and the intent to
recover (animus revertendi) is not yet given up.
 When a movable is simply misplaced or mislaid, the
possessor does not automatically lose possession because
the movable is still deemed remaining under his control even
though for the time being he may not know its whereabouts.
 The rule with respect to possession of movables is that the
same is not lost so long as the movables remain under the
control of the possessor and they will be deemed remaining
under his control so long as they are not under the control of
another possessor.
c) Lost Movable:
 When a person who finds a thing that has been lost or
mislaid by the owner takes the thing into his hands, he
acquires physical custody only and does not become
vested with legal possession.
 In assuming such custody, the finder is charged with the
obligation of restoring the thing to its owner.
 In other words, the previous possessor retains
ownership over the lost movable.
 The finder, far from becoming owner of the thing found,
is bound to return it to its previous owner, if known, or to
immediately deposit the same with the mayor of the city
or municipality where the finding has taken place, if the
owner is unknown, who is then required to make a
public announcement of such finding for two
consecutive weeks in a manner he deems best.
 If after six months the owner does not appear, the thing
found, or its value, shall be awarded to the finder, with
the obligation to reimburse the expenses incurred in the
publication.
 It is only after compliance with the foregoing rules that
the finder shall acquire ownership of the thing found by
occupation. If the owner appears on time, he retains
ownership but he shall be obliged to pay, as a reward to
the finder, one-tenth of the sum or of the price of the
thing found.
Rules on Possession of Movables
Equivalent to Title
(a) Possession of movables acquired in good faith does not only
create a presumption of ownership but it is already equivalent to title.
The movable property mentioned in Article 559 of the Civil Code
pertains to a specific or determinate thing.
(b) Unlike in the case of immovable property where actual
possession under claim of ownership will only create a disputable
presumption of ownership and that the possessor has a just title,the
possession of movable property acquired in good faith is already
equivalent to a title, thus dispensing with further proof.
Doctrine of Irrevindicability of Movables
Requisites:
a) The movable property must be acquired in good faith
b) The possession must be in the concept of owner.
Consequence:
 If he foregoing requisites are present, the true owner cannot
recover it as a general rule for the title of the present
possessor is valid even against him.
 This is the general rule of irrevindicability
Exceptions to irrevindicability:
 If the owner has lost a movable, or if he has been unlawfully
deprived thereof, he has a right to recover it, not only from
the finder, thief or robber, but also from third persons who
may have acquired it in good faith from such finder, thief or
robber.
 Article 559 of the NCC establishes two exceptions to the
general rule of irrevindicability, to wit, when the owner
o (1) has lost the thing, or
o (2) has been unlawfully deprived thereof.
Rule on recovery of movables which were lost or whose
possession the owner has unlawfully been deprived thereof
Rule in case of loss of movables:
(a) The lost movable can always be recovered from its finder and
the latter is entitled to a reward equivalent to 1/10 of the sum or
price of the thing if he complies with the procedural
requirements of Article 719 of the NCC. The recovery must be
made, however, within a period of six months from the time of
the publication required in Article 719.
(b) If the finder does not comply with the procedural requirements
of Article 719 of the NCC, and appropriates for himself the
movable property he found, he shall be liable for the crime of
theft, in which case, the owner of the movable can recover its
possession without need of paying any indemnity.
(c) If the finder does not comply with the procedural requirements
of Article 719 of the NCC and subsequently transfers
possession of the lost movable in favor of a third person, the
owner of said movable can still recover its possession from such
third person without need of paying any indemnity, even if the
latter may have acted in good faith
However, if the third person has acquired the movable in good
faith at a public sale, its owner may still recover its possession
from said third person but he is required to reimburse the third
person of the price paid therefore.
d) According to Senator Tolentino, the "public sale" referred to in
Article 559 of the NCC which entitles the possessor in good faith
to reimbursement, is one where there has been public notice of
the sale and in which anybody has a right to bid and offer to
buy.
Rule in case of unlawful deprivation:
(a) The term "unlawful deprivation" in Article 559 is not limited to
cases of theft or robbery (or unlawful taking) but includes cases
where there has been abuse of confidence.
(b) But the term "unlawful deprivation" may not be unduly stretched
to cover situations where there is a contract of purchase and sale
between two persons and the buyer therein fails to price but
nonetheless alienates the thing sold in favor of the present
possessor who acted in good faith.
In case of unlawful deprivation, the owner can always recover
possession of his movable from the present possessor without need
of paying any indemnity unless the latter has acquired the movable in
good faith at a public sale.
The owner who recovers, according to law, possession unjustly lost,
shall be deemed for all purposes which may redound to his benefit,
to have enjoyed it without interruption
Instances where the owner may no longer recover possession
of movables which were lost or whose possession he has
unlawfully been deprived of:
(1) If the possessor acquired the thing at a merchant's store, or in
fairs, or in markets in accordance with the Code of Commerce
and special laws;
(2) Where the possessor acquired the thing by sale under statutory
power of sale or under the order of a court of competent
jurisdiction;
(3) When the possessor is a holder in due course of a negotiable
document of title to goods or where the owner is barred by the
principle of negotiable instruments
(4) Where the owner is barred by reason of his own acts or neglect
from denying the seller's title; and
(5) Where the owner can no longer recover the thing from the
possessor by reason of prescription.
Possession Over Animals
3 kinds of animals:
1. Wild Animals
 those which are found in their natural freedom, such as wild
boars and horses roaming the forest.
2. Domesticated or Tamed Animals
 those which were formerly wild but which have formerly wild
but which have been subdued and retained the habit of
returning to the premises of the possessor or owner.
3. Domestic or Tame Animals
 those which are born or reared under the control and care of
man.
When Possession Over Animals is Considered Lost:
1. As to Wild Animals:
 They are considered possessed only while they are under
one's control.
 Once they recover their natural freedom or once they are
restored to their original state of being free, they ceased to
be under one's possession.
2. As to Domesticated Animals:
 In the case of domesticated animals, they will be regarded
as such so long as they retain the habit of returning to the
premises of the possessor.
 Once they lose that habit, they cease to be domesticated
and revert back to their original status of being wild.
  So long as they retain the habit of returning to the premises
of the possessor, the possession thereof is not immediately
lost by the simple fact that the animals are no longer under
the control of the possessor.
 Pursuant to the provision of Article 716 of the NCC, the
possessor or owner of domesticated animals has a period of
20 days counted from the occupation by another person
within which to reclaim them.
 After the expiration of this period, the animals can no longer
be recovered from its present possessor.

3. As to Domestic Animals:

 The rule stated in Article 716 of the NCC finds application

only to domesticated or tamed animals. It does not apply to
domestic or tame animals.
 In the case of the latter, they are considered as personal
property and are, therefore, subject to the rules goveraing
any personal property.
 Hence, the discussions in Sections 187 and 188 are
applicable to domestic or tame animals.