TITLE V.

– POSSESSION

Chapter 1
General Provisions

POSSESSION AND THE KINDS THEREOF

Art. 523. Possession is the holding of a thing or the enjoyment

of a right.

Concept of possession
 Legal definition: the holding of a thing or the enjoyment of a right with
the intention to possess in one’s own right.
 PRESUMPTION under Art. 523
o The fact of possession means there is intention to possess

Ownership v. possession
Ownership Possession
There is ownership when a thing the holding of a thing or the
pertaining to one person is enjoyment of a right; to possess
completely subjected to his will means to actually and physically
in a manner not prohibited by law occupy a thing with or without
and consistent with the rights of right
others.
Ownership confers certain rights to 2 ways of having possession:
the owner, among which are the 1. possession in the concept of
right to enjoy the thing owned and an owner
the right to exclude others from 2. possession of a holder
possession thereof.
Note: an owner may not be entitled to possession

Elements of possession
1. There must be holding or control of a thing or right.
 GR: possession implies occupation (531); there must be
possession in fact
 XPN: Art. 537
2. The holding or control must be with intention to possess.
 Animus possidendi: state of mind whereby possessor intends to
exercise, whether legal or not
 Rebuttable – e.g. insane (incapacitated) – cannot acquire
possession; no animus possidendi
3. It must be in one’s own right.
 In his own name – possessor himself
a. In the concept of owner
b. In the concept of holder with ownership pertaining to
another (e.g. lessee)
 In another’s name – e.g. agent
o Possession is exercised by owner thru his agent
 o Agent has no possession in law because it is not by virtue
of his right

Relations created by possession

1. The possessor’s relation to the property itself
 This assumes that the possessor exercises some degree of
control more or less effective over the object.
2. The possessor’s relation to the world
 The possessor must also have the ability to exclude others from
his possession.

Forms or degrees of possession

1. Possession without any title whatever
 Mere holding or possession w/o any right or title (e.g. thief,
squatter)
2. Possession with a juridical title
 Title predicated on a juridical relation existing between
possessor and owner (e.g. lessee, usufructuary, depositary,
agent, pledgee, trustee)
3. Possession with a just title
 Possession of an adverse claimant whose title is sufficient to
transfer ownership BUT is defective (e.g. when seller is not the
true owner and the buyer is in good faith)
4. Possession with a title in fee simple
 derived from the right of dominion or possession of an owner
 highest degree of possession

Nature of possession
 as an act
o holding of a thing or the enjoyment of a right with the intention
to possess in one’s own right
 as a fact/condition
o the state or condition of a person having property under his
control, with or without right
 benefits to possessor – the fact of possession gives rise
to certain rights and presumptions
 right to be respected in his possession, and should
he be disturbed therein, he shall be protected in or
restored to said possession
 presumption of lawful possession – that he is the
owner or has been given the right of possession by
the owner
 possession is not proof of ownership
 however, possession may create ownership
o by occupation (Art. 712)
o by acquisitive prescription (Art. 1132, 1134,
1137)
 as a right
 o refers to the right of a person to that holding or enjoyment to the
exclusion of all others having better right than the possessor
o it may be:
 jus possidendi – right to possession which is incidental to
and included in the right of ownership
 e.g. owner has right to possess his own property
 jus possessionis – right of possession independent of and
apart from the right of ownership.
 e.g. lessee has right to possess the thing (for a
certain period) even if he’s not the owner

Classes of possession
1. Possession in one’s own name or in the name of another (524)
2. Possession in the concept of owner or possession in the concept of
holder (525)
3. Possession in good faith or possession in bad faith (526)

Extent of possession
1. Actual possession
 occupancy in fact of the whole or at least substantially the
whole
 land: it consists in the manifestation of acts of dominion over it
of such a nature as a party would naturally exercise over his
property
 to possess means to actually and physically occupy a thing with
or without a right
2. Constructive possession
 occupancy of part in the name of the whole under such
circumstances that the law extends the occupancy to the
possession of the whole
 possession is broader than occupation
o it includes constructive possession
o limitation to constructive possession:
 under the Public Land Act, there must be an “open,
continuous, exclusive, and notorious possession
and occupation of agricultural lands of the public
domain under a bona fide claim of acquisition of
ownership”

Doctrine of constructive possession

GR: possession and cultivation of a portion of a tract of land under claim of
ownership of all is constructive possession of all
XPNs: there is no constructive possession in the ff. cases:
a. mere planting of sign or symbol of possession
b. mere cultivation of a land
c. mere fact of declaring uncultivated land for tax purposes and
visiting it every now and then
 d. where possession is wrongful or is in the adverse possession of
another

Concept of possession and occupation in registration cases

 to register title to land of public domain:
o must, by himself, or through his predecessors in interest, have
been open, continuous, exclusive, and notorious possession
and occupation of the subject land under a bona fide claim of
ownership since June 12, 1945 or earlier
o land must be alienable and disposable; actual possession is
required (PD 1529)
 Sec. 14[1] – alienable and disposable public land
 Deals with possession and occupation of public land
in the concept of owner
 To give rise to an imperfect title, the same should
have commenced on June 12, 1945, or earlier
 Sec. 14[2] – patrimonial property
 Involves prescription as a mode of acquiring
ownership of private property
 To claim that possession has ripened to an
imperfect title, the same should have been for the
prescriptive period provided under the Civil Code

Art. 524. Possession may be exercised in one’s own name or in

that of another.

Name under which possession may be exercised

1. in one’s own name

 fact and right of possession are found in the same person

2. in the name of another e.g. thru agent (agent has no right on his own)

 as to voluntariness
Voluntary Necessary / legal
by virtue of an agreement by virtue of law

e.g. possession in behalf of

a) incapacitated persons (Art. 1337, 1329)
b) juridical entities (Art. 46)

 as to extent
Physical/material Juridical
Possessor is a mere Possession gives the
custodian of the property or transferee a right over the
funds received. thing which the transferee
may set up against the owner
He has no independent right
or title to retain or possess e.g. possession of an agent who receives
the proceeds of the sales of goods
 the same as against the
owner
e.g. possession of money received by a
teller for the bank
--- he may be liable for qualified theft as
he has no juridical possession because
he is only an employee of the bank
delivered to him in agency by the principal
(Art. 1915)
--- a sales agent who misappropriates or
fails to return to his principal the proceeds
of things he was commissioned or
authorized to sell is liable for estafa

Art. 525. The possession of things or rights may be had in one of

two concepts: either in the concept of owner, or in that of the holder
of the thing or right to keep or enjoy it, the ownership pertaining to
another person.

Concept in which possession may be had.

 Concept, defined
o the opinion, attitude or belief of others, generally formed in view
of the circumstances which precede and accompany the
possession
o possession in the concept of owner ≠ possession in good faith

In the concept of owner In the concept of holder

a.k.a. “adverse possession”
This takes place when the
possessor of a thing or right,
by his actions, is considered
or is believed by other people
as the owner, regardless of
the good or bad faith of the
possessor.
This takes place when the
possessor of a thing or right
holds it merely to keep or
enjoy it, the ownership
pertaining to another person.

It is possession under a claim It is possession not under a

of ownership or title (en claim of ownership (or not in
concepto de dueño): the concept of owner), the
possessor acknowledging in
a) by one who is the owner another a superior right which
himself or he believes to be of
b) by one who is not the ownership, whether this be
owner but claims to be and true or not or his belief be
acts as the owner. right or wrong.

Possession in concept of both owner and holder OR in neither

1. both owner and holder – e.g. lessee possesses the thing leased in
the concept of holder, and the right of lease in the concept of owner
2. neither – e.g. agent, parent, guardian, administrator only possess in
the name of another
 Art. 526. He is deemed a possessor in good faith who is not
aware that there exists in his title or mode of acquisition any flaw
which invalidates it.

He is deemed a possessor in bad faith who possesses in any

case contrary to the foregoing.

Mistake upon a doubtful or difficult question of law may be the

basis of good faith.

Art. 526 presupposes the existence of a flaw in the title or mode of

acquisition. If there is no flaw, there can be no issue of GF/BF.

Possessor in good faith Possessor in bad faith

one who is not aware that there one who possesses in any case
exists in his title or mode of contrary to the foregoing, i.e., he is
acquisition any flaw which aware that there exists in his title or
invalidates it (Art. 1127, 1128) mode of acquisition a flaw which
invalidates it.
Art. 1127. The good faith of the possessor
consists in the reasonable belief that the person
from who he received the thing was the owner
thereof, and could transmit his ownership.

Art. 1128. The conditions of good faith required for

possession in Arts. 526-529 are likewise
necessary for the determination of good faith in
the prescription of ownership and other real rights.

 When DISTINCTION MATERIAL

o in connection with the receipt of fruits and the payment of
expenses and improvements
o in connection with the acquisition of ownership by prescription
under Article 1127
 When DISTINCTION IMMATERIAL
o exercise of the right to recover under Article 539 which speaks
of every possessor.

Requisites for possession in GF or BF

1. The possessor has a title or mode of acquisition
2. There is a flaw or defect in said title or mode; and
3. The possessor is unaware or aware of the flaw or defect or believes
that the thing belongs or does not belong to him

Concept of GF and BF
Good faith Bad faith
Freedom from knowledge and Imputes a dishonest purpose to do
circumstances which ought to put a wrong or cause damage
person on inquiry
A motive of self-interest or ill-will for
Well-founded belief that the person ulterior purposes
from whom the title was received
was himself the owner of the
property, with the right to convey it.
(PNB v. Militar)

Note: possessor in GF becomes in BF from the moment he becomes

aware that what he believes to be true is in fact untrue

Transactions involving property covered by a certificate of title

GR: No cloud or vice in the ownership of property, or any encumbrance
thereon, exploring beyond the face of the Torrens title is not required.
 if an existing encumbrance or claim is not annotated in the title, the
sale must be given effect
o DOCTRINE: purchaser in good faith for value of property
covered by a clear certificate of title can rest assured that his
title is perfect and incontrovertible
 N/A: banks or financial institutions
o Representatives are sent to the premises of the land offered as
collateral

“Mistakes upon a doubtful or difficult question of law” as basis of GF

 Refers to honest error in the application of the law or interpretation of
doubtful or conflicting legal provisions or doctrines
 Not the same as ignorance of the law

“Ignorance of the law” as basis of GF

 Excusable ignorance based on ignorance of fact
 Difficult to determine; case-to-case basis

Article 527. Good faith is always presumed, and upon him who
alleges bad faith on the part of a possessor rests the burden of proof.

Presumption of GF
 Good faith is presumed, unless the contrary is proven

Article 528. Possession acquired in good faith does not lose this
character except in the case and from the moment facts exist which
show that the possessor is not unaware that he possesses the thing
improperly or wrongfully.

Article 529. It is presumed that possession continues to be

enjoyed in the same character in which it was acquired, until the
contrary is proved.
 Article 530. Only things and rights which are susceptible of
being appropriated may be the object of possession.

Chapter 2
Acquisition of Possession

Article 531. Possession is acquired by the material occupation

of a thing or the exercise of a right, or by the fact that it is subject to
the action of our will, or by the proper acts and legal formalities
established for acquiring such right.

Article 532. Possession may be acquired by the same person

who is to enjoy it, by his legal representative, by his agent, or by any
person without any power whatever: but in the last case, the
possession shall not be considered as acquired until the person in
whose name the act of possession was executed has ratified the
same, without prejudice to the juridical consequences of negotiorum
gestio in a proper case.

Article 533. The possession of hereditary property is deemed

transmitted to the heir without interruption and from the moment of
the death of the decedent, in case the inheritance is accepted.

One who validly renounces an inheritance is deemed never to

have possessed the same.

Article 534. On 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; but the effects
of possession in good faith shall not benefit him except from the date
of death of the decedent.

Article 535. Minors and incapacitated persons may acquire the

possession of things; but they need the assistance of their legal
representatives in order to exercise the rights which from the
possession arise in their favor.

Article 536. In no case may possession be acquired through

force or intimidation as long as there is a possessor who objects
thereto. 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.
 Article 537. Acts merely tolerated, and those executed
clandestinely and without the knowledge of the possessor of a thing,
or by violence, do not affect possession.

Article 538. Possession as a fact cannot be recognized at the

same time in two different personalities except in the cases of co-
possession. Should a question arise regarding the fact of possession,
the present possessor shall be preferred; if there are two possessors,
the one longer in possession; if the dates of the possession are the
same, the one who presents a title; and if all these conditions are
equal, the thing shall be placed in judicial deposit pending
determination of its possession or ownership through proper
proceedings.

Chapter 3
Effects of Possession

Article 539. Every possessor has a right to be respected in his

possession; and should he be disturbed therein he shall be protected
in or restored to said possession by the means established by the
laws and the Rules of Court.

A possessor deprived of his possession through forcible entry

may within ten days from the filing of the complaint present a motion
to secure from the competent court, in the action for forcible entry, a
writ of preliminary mandatory injunction to restore him in his
possession. The court shall decide the motion within thirty (30) days
from the filing thereof.

Remedies of person deprived of possession

1. Forcible entry or Unlawful detainer
a. Main issue is possession de facto
b. Issue on ownership is not entertained unless possession is
under claim of ownership
i. Issue on ownership is resolved only to determine the
issue of priority of possession
c. If plaintiff cannot prove prior physical possession, he has no
right of action for FE and UD even if he be the owner
2. Accion publiciana
3. Accion reivindicatoria
4. Replevin or manual delivery of personal property
5. Writ of preliminary injunction
a. Forcible entry – filed by plaintiff w/in 10 days from filing of
complaint
b. Appeal in unlawful detainer – within 10 days from perfection of
appeal
 6. Immediate execution of judgment for actions for forcible entry and
unlawful detainer

Article 540. Only the possession acquired and enjoyed in the

concept of owner can serve as a title for acquiring dominion.

Article 541. A possessor in the concept of owner has in his favor

the legal presumption that he possesses with a just title and he
cannot be obliged to show or prove it.

Presumption of possession with just title (disputable)

A possessor in the concept of owner is presumed to be with just title. He
cannot be obliged to show or prove it.

Hence:
a. Claim of ownership thru oral contract of sale = written contract
of sale
b. Actual or constructive possession under claim of ownership
raises the presumption of just title

Reason: owner will not have to carry around his titles

Burden of proving just title:

a. on the plaintiff who seeks recovery of property
b. owner who is not, in fact, in possession cannot acquire a
prescriptive right to a land by the mere assertion of a right
therein

Different kinds of title

1. just title – title which, by itself, is sufficient to transfer ownership
without need of possessing the property for the period necessary for
acquiring title by prescription (true and valid title – titulo verdadero y
valido)

Note: Presumption of just title DOES NOT APPLY in acquisitive

prescription. Just title must be proved.

2. colorable title – one which a person has when he buys a thing in good
faith, from one who is not the owner but whom he believes to be the
owner

Note: Acquisitive prescription only requires colorable title, not just

title.

3. putative title – one which a person believes he has but in fact has not
because there was no mode of acquiring ownership
 Article 542. The possession of real property presumes that of
the movables therein, so long as it is not shown or proved that they
should be excluded.

Disputable presumption: movables found in an immovable thing are

presumed to be owned by the possessor of the immovable

Note: this article refers only to material possession of things, NOT rights

Article 543. Each one of the participants of a thing possessed in

common shall be deemed to have exclusively possessed the part
which may be allotted to him upon the division thereof, for the entire
period during which the co-possession lasted. Interruption in the
possession of the whole or a part of a thing possessed in common
shall be to the prejudice of all the possessors. However, in case of
civil interruption, the Rules of Court shall apply.

First part:
Exclusive possession of previous co-owner deemed continuous.
i. Co-possession of a thing or right
o Art. 1091. A partition legally made confers upon each heir the
exclusive ownership of the property adjudicated to him.
ii. Co-possessors constitute one personality
o Personality ceases upon partition
o Personality of each participant begins upon partition
 Effects of partition retroact to the commencement of the
co-possession. Each co-possessor is deemed to have
possessed exclusively and continuously during the
period of co-possession the part assigned to him in the
division.

Illustration
X, Y, and Z have been co-possessors in the concept of owners of a 15-ha.
parcel of land until they divided the property equally on the 8th year. On the
4th year after the division, T claims ownership of the portion allotted to X. X
can assert title by acquisitive (ordinary) prescription through possession of
10 years, for he is deemed to have possessed his portion exclusively and
continuously for a period of 12 years.

Second part:
Interruption in co-possession of the thing
GR: Benefits and prejudices taking place during co-possession attaches to
each of the co-possessors.
i. Manner of interruption
a. Naturally – when through any cause, it should cease for more
than 1 year
b. Civilly – when the interruption is produced by judicial summons
to the possessor
XPN: In civil interruption, only those possessors served with judicial
summons are affected.

Illustration
Same example above; if X, Y, and Z lose possession of the whole land
after 5 years, then their possession shall be reduced by 3 years. The
possession of X, Y, and Z may have been exercised by themselves or
through an agent who takes charge of the cultivation of the property for
them. Now, if for some reason the agent lost possession of three 3 ha. (1/5)
of the land at the end of the 5th year, possession of the remaining 12 ha.
(4/5) continues without interruption. If they have equal shares in the co-
possession, their shares in the remaining portion and the area lost shall
also be in equal shares; if their shares or interests are unequal then they
share in the same proportion. The interruption prejudices all but not that
they should share equally the portion lost.

Note: Interruption refers to thing, NOT right.

If a co-possessor’s right is contested, he alone shall be prejudiced. If the

thing is contested, prejudice will be against all.

Article 544. A possessor in good faith is entitled to the fruits

received before the possession is legally interrupted.

Natural and industrial fruits are considered received from the

time they are gathered or severed.

Civil fruits are deemed to accrue daily and belong to the

possessor in good faith in that proportion.

Right of possessor in good faith to fruits received.

GR: possessor in good faith is entitled to the fruits received until good faith
ceases and bad faith begins
 legal interruption: service of judicial summons to the possessor
 right only pertains to fruits

no complaint
 good faith ceases when
o owner or possessor with a better right comes along
o he becomes aware that what he had taken for granted is at
least doubtful
o he learns the grounds in support of the adverse claim
 effect: possessor in bad faith is not entitled to the fruits
o has the duty to reimburse the fruits received
o including that which the legitimate possessor could have
received. (Art. 549.)
there is complaint
 good faith ceases
o from the time he is summoned to the trial
 Hence, all fruits that the possessor may receive from the time that he
is summoned, or when he answers the complaint, must be delivered
or paid by him to the owner or lawful possessor.

When fruits considered received

1) Natural and industrial fruits
a. from the time they are gathered or severed
b. rules
i. Fruits gathered before legal interruption belong to the
possessor in good faith.
ii. If the fruits are still ungathered or unharvested, Article 545
applies. (see Arts. 443, 449.)
2) Civil fruits
a. Received from accrual
i. They are deemed to accrue daily and belong to the
possessor in good faith in that proportion.

Thus, where the ownership of certain houses in possession of

X was declared by final judgment of the court to belong to Z on
May 21, the rents accrued before May 21 should belong to X
and those accruing beginning May 21, to Z, although the rent
was by the terms of the contract of lease between X and the
lessee payable in advance. Portion of the rent which accrued
before May 21 but received by Z on or subsequent to May 21
belongs to X.

Article 545. If at the time the good faith ceases, there should be
any natural or industrial fruits, the possessor shall have a right to a
part of the expenses of cultivation, and to a part of the net harvest,
both in proportion to the time of the possession.

The charges shall be divided on the same basis by the two

possessors.

The owner of the thing may, should he so desire, give the

possessor in good faith the right to finish the cultivation and
gathering of the growing fruits, as an indemnity for his part of the
expenses of cultivation and the net proceeds; the possessor in good
faith who for any reason whatever should refuse to accept this
concession, shall lose the right to be indemnified in any other
manner.

N/A
1. Possessor is in bad faith
2. Fruits are civil
3. Fruits are natural or industrial but gathered when good faith ceased
Proportionate division of fruits and expenses
1. If at the time of the receipt of judicial summons, X has been in
possession in good faith for 6 months, and the harvest was made 3
months later by Y, the owner, who continues in possession, the
expenses and charges shall be divided by X and Y un the proportion
of 6:3 or 2:1. Thus:
o X = P1,000 and Y = P500
 They shall share the same amount incurred by them.
o X = P500 and Y = P1,000
 X shall reimburse Y P500 out of the net harvest.
Article 546. Necessary expenses shall be refunded to every
possessor; but only the possessor in good faith may retain the thing
until he has been reimbursed therefor.

Useful expenses shall be refunded only to the possessor in

good faith with the same right of retention, the person who has
defeated him in the possession having the option of refunding the
amount of the expenses or of paying the increase in value which the
thing may have acquired by reason thereof.

Article 547. If the useful improvements can be removed without

damage to the principal thing, the possessor in good faith may
remove them, unless the person who recovers the possession
exercises the option under paragraph 2 of the preceding article.

Article 548. Expenses for pure luxury or mere pleasure shall not
be refunded to the possessor in good faith; but he may remove the
ornaments with which he has embellished the principal thing if it
suffers no injury thereby, and if his successor in the possession does
not prefer to refund the amount expended.

Article 549. The possessor in bad faith shall reimburse the fruits
received and those which the legitimate possessor could have
received, and shall have a right only to the expenses mentioned in
paragraph 1 of article 546 and in article 443. The expenses incurred in
improvements for pure luxury or mere pleasure shall not be refunded
to the possessor in bad faith, but he may remove the objects for
which such expenses have been incurred, provided that the thing
suffers no injury thereby, and that the lawful possessor does not
prefer to retain them by paying the value they may have at the time he
enters into possession.

Expenses Possessor in GF Possessor in BF

Necessary Entitled to reimbursement Entitled to reimbursement
expenses
are made for the
preservation of the
Right of retention pending No right of retention; must
thing of those which full reimbursements vacate property (recourse is
seek to prevent the
waste, deterioration, to file collection case)
or loss of the thing, or
those without which
the thing would Liable for damages as
deteriorate or be lost reasonable rent for period
of possession
Useful Owner has 2 options: No rights
expenses
are those which add
value to a thing, or
Option 1: reimbursement of
augment its income either (a) amount spent or
(b) increase in value with
right of retention with full
payment.

Option 2: To allow
possessor to remove
provided no substantial
damage or injury is caused
Luxurious Owner has 2 options: Owner has 2 options:
expenses
are those which are
not necessary for the
Option 1: to allow Option 1: to allow
preservation of a possessor to remove possessor to remove
thing nor do they
increase its ornaments if the principal ornaments if the principal
productivity although suffers no injury suffers no injury
they add value to the
thing, but are
incurred merely to Option 2: to retain the Option 2: to retain the
embellish the thing
and for the ornament by refunding the ornament by refunding the
convenience
enjoyment
or
of
amount spent for the value of the ornament at
particular possessors ornament the time owner enters into
possession (which means
depreciated value)
Deterioratio No liability unless due to Always liable whether
n / loss fraudulent intent or before or after service of
negligence after service of judicial summons, for any
judicial summons cause, even fortuitous
event.

Article 550. The costs of litigation over the property shall be

borne by every possessor.

Article 551. Improvements caused by nature or time shall always

inure to the benefit of the person who has succeeded in recovering
possession.
 Article 552. A possessor in good faith shall not be liable for the
deterioration or loss of the thing possessed, except in cases in which
it is proved that he has acted with fraudulent intent or negligence,
after the judicial summons.

A possessor in bad faith shall be liable for deterioration or loss

in every case, even if caused by a fortuitous event.

Article 553. One who recovers possession shall not be obliged

to pay for improvements which have ceased to exist at the time he
takes possession of the thing.

Article 554. A present possessor who shows his possession at

some previous time, is presumed to have held possession also during
the intermediate period, in the absence of proof to the contrary.

Article 555. A possessor may lose his possession:

(1) By the abandonment of the thing;

(2) By an assignment made to another either by onerous or gratuitous
title;
(3) By the destruction or total loss of the thing, or because it goes out
of commerce;
(4) By the possession of another, subject to the provisions of article
537, if the new possession has lasted longer than one year. But the
real right of possession is not lost till after the lapse of ten years.

Modes of losing possession

1. By abandonment
o Voluntary renunciation of all rights which a person has over a
thing thereby allowing a third person to acquire ownership or
possession thereof by means of occupancy
o Rules:
 Who may abandon?
1. Owner
2. Possessor who has
o a right to the thing possessed
o capacity to renounce
 There must be intention to abandon. There is no
abandonment until:
1. The owner has knowledge of the loss of possession
or of the thing
2. The hope of recovery is gone
3. The intention to return is finally given up
  Effect of abandonment (N/A: land)
1. Thing is converted into res nullius
2. Thing may be acquired by third person by
occupation
2. By assignment
o Complete transmission of the thing or right to another by any
lawful manner (onerous or gratuitous)
3. By destruction, total loss, or withdrawal from commerce
o Intentional or accidental
4. By possession of another for more than 1 year
o Refers to possession de facto
o Applies only to movable property
5. By recovery by lawful owner or possessor
Article 556. The possession of movables is not deemed lost so
long as they remain under the control of the possessor, even though
for the time being he may not know their whereabouts.

Loss of possession of movables

1. When they cease to be under the control of the possessor
a. They have come into the possession of a third person
b. Although they have not been taken by another
i. Possessor does not know of their whereabouts or location
ii. Possessor knows where they are but they cannot be
recovered by fact (necklace dropped at sea) or by law (by
prescription)

Article 557. 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.

Loss of possession of immovables and real rights with respect to

third persons
1. Against a recorded title, ordinary prescription of ownership or real
rights shall not take place to the prejudice of a third person,
except in virtue of another title also recorded and the time shall begin
to run from the recording of the latter.

Article 558. Acts relating to possession, executed or agreed to

by one who possesses a thing belonging to another as a mere holder
to enjoy or keep it, in any character, do not bind or prejudice the
owner, unless he gave said holder express authority to do such acts,
or ratifies them subsequently.

Right of possessor who acquires movable claimed by another

1. If possession acquired in bad faith
 o No right thereto is acquired by the possessor. The property may
be recovered by the true owner or possessor w/o
reimbursement
2. If possession acquired in good faith (Doctrine of irrevindicability)
o Possession in good faith of a movable is presumed ownership.
It is equivalent to title.. No further proof is necessary.
o Possessor’s right is not absolute. It is equivalent to title but not
title itself.
3. Exceptions to doctrine of irrevindicability (here, owner may recover)
o When one has lost the movable, or
o When one has been unlawfully deprived
NOTE: Owner may recover w/o reimbursement. But if thing is
sold at public sale, reimbursement is necessary.
4. Exceptions to exceptions (even when an owner has lost or has been
unlawfully deprived, he still cannot recover)
o When the sale is made at merchant’s stores, fairs or markets
o When the owner of the movable is, by his conduct, precluded
from denying the seller’s authority to sell
o Where the law enables the apparent owner to dispose of the
movables as if he were the true owner thereof
o Where the sale is sanctioned by statutory or judicial authority
o Where the seller has a voidable title, which has not been
avoided at the time of the sale to the buyer in good faith for
value and without notice of the seller’s defect of title
o Where recovery is no longer possible because of prescription
o Where the possessor becomes the owner of the thing in
accordance with the principle of finders keepers

Article 559. The possession of movable property acquired in

good faith is equivalent to a title. Nevertheless, one who has lost any
movable or has been unlawfully deprived thereof, may recover it from
the person in possession of the same.
If the possessor of a movable lost or which the owner has been
unlawfully deprived, has acquired it in good faith at a public sale, the
owner cannot obtain its return without reimbursing the price paid
therefor.

Article 560. Wild animals are possessed only while they are
under one's control; domesticated or tamed animals are considered
domestic or tame if they retain the habit of returning to the premises
of the possessor.

Article 561. One 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.