LECTURE NOTES IN PROPERTY I General Provisions A. Definition: all things which are or may be the object of appropriation (Art. 414, CC) 1. Three characteristics of property: a. Capable of appropriation — can be obtained b. Useful — serves to satisfy human needs c. Has separate or autonomous existence 2. The concept of property extends only to those already possessed by, or found in the possession of man. Things that cannot be subjected to human control by reason of physical impossibility such as the moon, the sun, seas, and oceans are not considered property. Il. Classification of Property A. There are 2 kinds of properties: 1. Immovable or real 2. Movable or personal B. Importance of Classification: there are various legal consequences from the classification of property into movable or immovable: 1. Rules on acquisitive prescription 2. Classification of object as real or personal determines whether contract is pledge, chattel mortgage, or real estate mortgage 3. Formalities of donation 4. Foreclosure rules 5. Crimes of theft or robberywre 6. Actions to recover possession of property 7. Venue of actions involving property C. Classification of immovable property 4. immovable by nature — property is adhered to the soil, so it cannot be moved from place to place (Par. 1 and 8 of Art. 415) « Examples: land, building, roads, and constructions of all kinds that is adhered to the soil, mines, quarries and slag dumps while they are still part of the mine/soil, and waters, either running or stagnant. The building must be a permanent structure, made of strong materials. Those made of light materials such as the “barong-barong” is not considered real property because it not a building under the Civil Code. ® If contracting parties treat the building as chattel in their contract, they are estopped from claiming that it is real property. But third parties are not bound by such agreement, so as to them a chattel mortgage entered into by the parties is void. © Ore extracted from the mine is no longer part of the mine and is personal property. » Waters, with an “s”, is real property. Examples of waters are lakes, ponds, seas.-3- 2. immovable by incorporation —attached or incorporated to an immovable in such a manner as to be an integral part thereof, or cannot be separated therefrom, without breaking the material or deterioration of the object, or substantial damage to the object in case of separation (Par. 1, 2, and 3 of Art. 415) e® Examples: Trees, plants, and growing fruits, while they are attached to the land or form an integral part of an immovable, «The moment trees and plants are uprooted, harvested, or detached from the soil, they become personal property. * Growing crops (also called standing or ungathered crops are real property because they are still attached to the soil. But the sale of growing crops is considered a sale of personal property because it is understood that they are to be harvested. Also, under the Chattel Mortgage Law, growing crops are personal property. 3. immovable by destination — movable property placed in an immovable that partake of the nature of the latter because of the utility or value they add to it (Par. 4, 5, 6, 7, 9 of Art. 415, CC) « Par. 4: statues, reliefs, paintings, or other objects that the owner of the building or land, or his agent, attaches permanently thereto for use or ornamentation. Examples: fixed state in the garden, mural embedded in walls of a building, wall-to-wall carpeting-4- e Par 5: Machinery, receptacles, instruments, or implements that directly meet the needs of any industry or works that are carried out in the building or on land by the owner thereof. Examples: machineries of breweries used in the production of beer © If the lease stipulates that any machineries, etc. placed by the tenant during the lease shall belong to the owner when the lease expires, the tenant acted as agent of the owner when he placed the machineries there and they are deemed immovable. « Cash registers, calculators, computers used by restaurants, hotels, etc. are not real property because restaurants and hotels can continue their business without these implements, e Par. 6 Animal houses, pigeon-houses, beehives, fishponds or breeding places of similar nature, in case their owner has them permanently attached to the land, and forming a permanent part of it; the animals in these places are included. Examples: barns that house cattle and the cattle. « Donation of pigeon house need not be in a public instrument because the pigeon house is detached from the land when delivered to donee. e Sale of animals is considered sale of personal property. ° A birdcage that is carried from place to place is personal property.-5- e Par. 7: Fertilizer actually used on a piece of land © Fertilizers still in their packaging are personal property. e Par. 9: Docks and structures which, though floating, are intended by their nature and object to remain at a fixed place on a river, or coast. ¢ A floating house tied to a shore or bank post and used as residence is real property, since the “waters” ‘on which it floats is immovable. e But if the floating house travels from place to place, then it is a vessel. e Vessels are considered personal property. They may be the subject of a chattel mortgage. But the chattel mortgage of a vessel is recorded in the record of the Collector of Customs at the port of entry. 4.immovable by analogy — regarded as united to the immovable property by express provision of law « Par. 10: contracts for public works, servitudes and other real rights over immovable property * The property referred to here are real rights over real property. e EXAMPLE: The right to perform the contract to build a building.6- D. Kinds of Movable Property (Art. 416, 417) 41. Movables susceptible of appropriation not included in Art. 415. EXAMPLES: mobile phone, guitar, books 2. Real property by which by any special provision of law is considered as personal property. EXAMPLE: growing crops under the Chattel Mortgage Law 3. Forces of nature which are brought under control by science EXAMPLES: electricity, gas, solar power 4. In general, all things which can be transported from place to place without impairment of the real property to which they are fixed EXAMPLE: machinery not attached to land 5. Obligations and actions which have for their object movables or demandable sums EXAMPLE: debt owed to a person 2 Shares of stock of agricultural, commercial and industrial entitles, although they may have real estate EXAMPLES: shares of stock in a corporation as well as stock certificate evidencing ownership; shares of a partner in a partnership, interest in business E, TYPES OF MOVABLE PROPERTY 1. Consumable movable property when used according to its nature is consumed or used up. EXAMPLES: food, money in one’s wallet“T= 2.Non-consumable — any other kind of movable property 3. Fungible movable property is capable of substitution of the same kind, quality, and quantity, either by their nature or by agreement. Examples: vinegar, rice for consumption 4. Non-fungible - incapable of substitution, the identical thing must be given or returned. F. Classification of Property (Art. 419) 1. Property of public dominion © There are 3 kinds of property of public dominion a. For public use — roads, rivers, torrents, ports, constructed by the State, banks, shores, roadsteads, and others of similar character; any one can use them, e.g., Rizal Park b. For public service — not for general use but for some state function; examples: PGH, Camp Crame, Camp Aguinaido c. For the development of national wealth — example: natural resources They pertain to the State which exercises certain juridical prerogatives over them but their conversion to patrimonial property requires a legislative action to change their purpose as such Characteristics of property of public dominion: a. Outside the commerce of man b. Cannot be acquired by prescription-8- c. Cannot be registered under the land registration laws d. Cannot be levied upon in execution nor attached 2. Property of private ownership — consists of: a.Patrimonial property of the State, provinces, cities, and municipalities b. All property belonging to private persons, either collectively or individually 3. Classification of Property of the State — 2 kinds a. Property of public dominion b. Patrimonial property of the State consists of all the property of the State not devoted to public use, public service or the development of national wealth 4. Classification of Property of Provinces, Cities and Municipalities — 2 kinds a. Property for public use - consist of provincial roads, city/municipal streets, the squares, fountains, public waters, promenades, and public works for public service paid for by said provinces, cities or municipalities b. Patrimonial - all other property possessed by any of them, without prejudice to provisions of special laws-9- 5. Characteristics of patrimonial property of the State a. Owned by the State in its private or proprietary capacity b.May be acquired by private individuals or corporations through prescription c. May be the object of an ordinary contract Mm. OWNERSHIP A. Definitions: 1. Ownership — independent and general right of a person to control a thing 2. Title - that which constitutes a just cause of exclusive possession or which is the foundation of ownership B. Kinds of ownership: 4. Full—includes all rights of the owner 2. Naked — right to use and fruits has been denied 3. Sole — vested in one person 4. Common — vested in two or more persons; one property, several owners C. Bundle of rights of owner 1. Actions to recover ownership and possession of real property and its distinctions a. accion interdictal- summary action to recover physical possession and not ownership-10- 1. forcible entry — action to recover the matetialiphysical possession that was lost due to FISTS (Force, Intimidation, Strategy, Threat, or Stealth); possession of defendant was unlawful from the beginning; plaintiff must allege and prove that he was in prior possession; the right to bring action prescribes in 1 year after actual entry 2. unlawful detainer — possession by a landiord, vendor, vendee or other person is, being unlawfully withheld after the expiration of the right to hold possession by virtue of a contract; possession was lawful in the beginning; no need for prior possession; one year prescriptive period counted from last demand b. accion publiciana —plenary action to recover better right of possession when dispossession has lasted for more than a year; prescriptive period: 10 years ©. accion reinvindicatoria —action to recover ownership Requisites: identity of property; plaintiff’ title Prescriptive period: 10 years (ordinary prescription — requires good faith and just title) 30 years (extraordinary prescription)-11- 2.Action for recovery of possession of movable property ~ replevin (Rule 60, Rules of Court) Replevin, also known as “claim and delivery,” is an action to recover personal property that was wrongfully taken or detained. Unlike other forms of legal recovery, replevin seeks the return of the actual thing itself, as opposed to money damages (the more commonly-sought after remedy). D. QUIETING OF TITLE (Art. 477, 478, 479) 1. Requisites - two indispensable requisites must concur, namely: (1) The plaintiff or complainant has a legal or an equitable title to or interest, in the real property subject of the action; and (2) The deed, claim, encumbrance, or proceeding claimed to be casting cloud on his title must be shown to be in fact invalid or inoperative despite its prima facie appearance of validity or legal efficacy.” NOTES: (1) Instrument, record, claim, encumbrance or proceeding must be valid and binding on its face but in truth and in fact, is invalid, ineffective, voidable or unenforceable; contract upon which the defendant relies has been extinguished or terminated, or has prescribed. (2) Plaintiff must return benefits received from the defendant.-12- (3) Legal title denotes registered ownership, while equitable title means beneficial ownership. In the absence of such legal or equitable title, or interest, there is no cloud to be prevented or removed. 2. DISTINCTIONS BETWEEN QUIETING TITLE AND REMOVING/PREVENTING A CLOUD [Senne or tTE REMOVING/PREVENTING | A CLOUD ON TITLE Purpose is to put anendto _ Intended to procure the vexatious and troublesome cancellation, delivery, litigation over the property release of an instrument, involved \ encumbrance or claim, which constitutes a cloud on plaintiffs title and which may be used to injure or vex him | in his enjoyment of the | | property; removal of a | | possible basis for a future | | hostile claim Remedial action: involvinga _| Preventive action: removes. | present adverse clai cloud that may be used for future actions. 3. _ Prescription/non of action - Imprescriptible, if plaintiff is in possession; if not, the action prescribes within the period for filing accion publiciana or accion reinvindicatoria.-13- E. Distinction between real and personal rights 1. 1. Real right — power of a person to obtain certain financial or economic advantages over a specific thing; a power enforceable against the whole world; created directly over a thing; extinguished by loss or destruction; examples: ownership, servitudes or easements, mortgage of real property, possession in the concept of an owner Personal rights — power of a person to demand from another person, the fulfillment of a prestation to give, ‘to do, or not to do; the right to do a thing; example: power to demand the performance of an obligation against the obligor F. Modes of acquiring ownership (Art. 712) Occupation: the acquisition of ownership by seizing corporeal things that have no owner, made with the intention of acquiring them, and accomplished according to legal rules. Reduisites of occupation: (1)There must be seizure of a thing (brought into actual possession or control of the person professing to acquire it) (2) The thing must be corporeal personal property. (3) The thing must be appropriable by nature (one that can be seized or apprehended) (4) The thing must be without owner (res nullius; never had an owner or has no owner at the time of occupation. (6) There must be an intention to appropriate it.-14- (6)Requisites and conditions laid down by law must be complied with (See Art. 713) Things appropriable by nature that are without an owner, animals that are the object of hunting and fishing, hidden treasure, and abandoned movables, are acquired by occupation. (Art. 713, CC) * The ownership of a piece of land cannot be acquired through occupation. (Art. 714, CC) There are special laws that regulate the right to hunt and fish. * The owner of a swarm of bees may pursue them to another's land indemnifying the landowner for the damage. If the owner does not/ceases to pursue them within 2 consecutive days, the landowner may claim the bees. The owner of domesticated animals should claim them within 20 days to be counted from their occupation by another: if the period expires, the person who caught the animals shall own them. Pigeons and fish who travel from their breeding places to another one belonging to a different person shall belong to the latter, provided they have not been enticed to migrate to the new breeding place by fraud. Intellectual creation — Intellectual Creation: Now governed by the Intellectual Property Code (R.A. 8293, as amended by R.A. 10372) and the TRIPS Agreements ~15- (Agreement on Trade-Related Aspects of Intellectual Property Rights) administered by the World Trade Organization. Tradition — as a consequence of certain contracts; Ownership of the thing sold is acquired by the vendee from the moment of delivery, or in any other manner signifying an agreement that possession is transferred. (Art. 1497, CC) « Kinds: (1) _ Real or actual — consists in placing the thing sold in the control and possession of the vendee (San Lorenzo Development Corp. v. CA, G.R. No. 124242, January 21, 2005); (2) Legal or constructive: (a) Symbolical tradition - e.g. delivery of the keys of the place; execution of public instrument (b) Traditio longa manu — by mere consent or agreement of the contracting parties, if the thing sold cannot be transferred to the possession of the vendee at the time of the sale (Art. 1499, CC); (c) Traditio brevi manu - if the vendee already had possession of the object even before the sale (ibid); (d) Traditio constitutum possessorium — the seller remains in possession of the property in a different capacity. (San Lorenzo Development Corp. v. CA, supra)- 16- (3) Quasi-tradition — delivery of rights, credits, or incorporeal property by placing titles of ownership with a lawyer, or allowing the buyer to make use of the rights (Art. 1501); and (4) By operation of law. 4. Law - accession, fruits naturally falling on adjacent land 5. Donation — gratuitous conveyance of property to another 6. Succession - inheritance 7. Prescription G. Limitations of Ownership 1. Doctrine of State Necessity: Art. 432. Requirements a. Interference of another with his property is necessary to avert an imminent damage b. Threatened damage is much greater than damage to owner's property c. Compensation is to be paid to owner by those benefited by the interference Exception: if injury was caused by the owner 2. In the exercise of the State's power of eminent domain - State may expropriate property for public use subject to the payment of just compensation. 3. In the exercise of police power: 1. Property may be condemned or seized by competent authority- for health, safety or security reasons -owner not entitled to compensation, unless he can show that the condemnation/seizure is unjustified 2. Ruinous buildings and walls, columns, or other construction in danger of falling down -owner obliged to demolish it or it would be demolished at his expense 3 . Large tree in danger of falling that would cause damage to land or building or another or to travellers - owner obliged to fell it and remove it or this shall be done at his expense H. ACCESSION 1. Right to hidden treasure Art. 438 a. Treasure is defined as any hidden and unknown deposit of money, jewelry, and other precious objects, the lawful ownership of which does not appear. b. General rule: Hidden treasure belongs to the owner of the land, building or other property on which it is found. c. Exception: Finder is entitled to % the value of the treasure if: i, Found by chance on the property of another, or of the state or any of its subdivisions ii, Finder is not a trespasser. ili, Finder is not an agent of the owner or co-owner of the land or tenement on which it is found. (Note: IF the finder is one of the spouses in a ACP or CPG regime the % goes to the property regime of the spouses. 2. Rules of accession A. For immovable property (1) Industrial accessions to real property- 18- General rules: a. Whatever is built, planted or sown on the land of another and the repairs made thereon, belong to the owner of the land, subject to the provisions of this Code. b. All works, sowing, and planting are presumed made by the owner and at his expense, unless the contrary is proved. First case: Landowner is the builder/planter/sower but uses the materials of another Good faith of landowner — belief that the land belongs to him and he does not know that he does not have the right to use the materials; in bad faith, if he makes use of the land or materials that he knows belong to another Good faith of the owner of materials — did not know that another was using his materials, or after he came to know, he informed the landowner of his ownership and made the necessary prohibition; in bad faith, if he allows another to use his materials without informing the latter of his ownership So LANDOWNER 1S OWNER OF THE MATERIALS |__ BUILDER/PLANTER/SOWER Good Faith Good Faith Will do what the Owner of the 1, Limited right of removal (may materials will opt to do remove if there would be no injury to work built, or without plantings destroyed); or 2. To be paid the value of the [__ materialsBad Faith Good Faith 1. To be paid for value of materials Pay indemnity and damages, plus damages; or depending on option chosen by 2. Has absolute right of removal of | ___ work constructed plus damages _| Good Faith Bad Faith To acquire improvements wio Loses right to materials without paying indemnity indemnity plus damages (hidden | defects, inferior materials) _ Bad Faith { Bad Faith } Second case: Builder/planter/sower builds, plants or sows on another's land using his own materials In applying Art. 448, the landowner, if in good faith, should be given first option because he is the owner of the land, especially if he is dealing with a person in bad faith. The landowner is in good faith: 1. He is ignorant of the builder/planter/sower’s act. 2. When he came to know, he expressed his objection. 3. Or he believed that the builder/planter/sower has a right ‘to construct, plant or sow on his land. Otherwise, the tandowner is in bad faith. Jurisprudence has come out with a limited and expanded definition of builder in good faith: Limited definition: At the time of the building, the builder/planter/sower believed in good faith that he was the owner of the land because he had a title or a mode of acquisition in his favor that turns out to be invalid by he was at that time, ignorant of such flaw or defect.<20)~ Expanded definition: At the time of the building, the builder knew that he was not the owner, but the landowner expressly consented to the building. NOTE: Both the landowner and the builder are in bad faith, it at the time of the building, the builder knew that he was not the owner; at the same time, the landowner knew that the builder was building on his land but he did not interpose any objection nor expressly consent thereto. In this case, since both are in bad faith, they shall be treated as if both are in good faith under Art. 448. LANDOWNER "| BUILDER/PLANTERISOWER IS THE OWNER OF MATERIALS: Good Faith: Good Faith 1. May acquire the improvement | The option belongs to the Landowner by paying for materials; or, 2. May obligate builder to buy the land of collect rent from planter/sower. However, if land is more valuable than the improvement, b/p/s cannot be Tequired to buy land, instead, to require rent from bipis. Bad Faith | Good Fai 4. Remove the materials plus Pay damages demanded by the damages; or, builder/sower/planter 2. Demand payment for materials plus damages-21- Good Faith | Bad Faith Options: 1. Appropriate works without 1. Buy the land regardless of value indemnity plus damages; or, plus damages, if LO takes this 2. Demolish the works plus option. damages; or, 2. Pay for damages in every case. 3. Compel the BIP/S to buy the land regardless of its value plus damages Obligations: 1. Landowner must pay for the necessary expenses if he appropriates 2. if Landowner gets the fruits, he must pay P/S expenses for their production, gathering and preservation **If landowner does not want to pay for the above, landowner may choose to allow bip/s to do the harvesting and gathering of the fruits and keep them Bad Faith Bad Faith If both are in bad faith, treat each as | If both are in bad faith, treat each as if it in good faith. | in good faith. 3" Case: Builder/planter/sower builds, plants or sows on another's land using materials owned by a third person= 22 1, Ifthe option is with LO (to buy improvement or sell the land), the LO cannot refuse the option. He may be compelled by the court to exercise the option. 2. If LO buys improvement from B/P/S, he must pay its value. B/P/S can retain land until he is paid, 3. [FLO opts to buy land, B/P/S may sue to compel him to pay. Obligation becomes civil — debt. 4, There is no transfer of ownership of improvement till LO pays. 5. Ortiz v. Kayanan: (1) B/P/S in bad faith once he receives judicial summons; (2) B/P/S retains land until he is reimbursed for necessary and useful expenses, but fruits received since then must be given to LO; (3) BIP/S may get reimbursed by deducting value of fruits he receives from time his good faith ceases from his expenses. 6. If LO opts to sell land, price will be based on prevailing market value at time of payment. 7. If LO chooses to sell land and B/P/S unable or unwilling to pay, LO. has 3 options: (1) assume lessor-lessee relationship; (2) have improvements removed and in the meantime demand rent; or (3) sell land and improvement at public auction; the proceeds applied to value of land first. 8.LO cannot compel sower to buy land. LO can either buy the improvement or demand rental. 9. If value of land is greater than the value of improvement, LO can choose only between buying the improvement or demanding rent.= 2 B. Natural Accessions to Real Property (Art. 457-465) 4. Alluvion or accretion — owners of lands adjoining the banks of river own the accretion Requisites for alluvion to exist: 4. deposit of soil is gradual and imperceptible 2. deposit made by action of water currents of the river (exclusive work of nature) 3. land where soil is deposited adjacent to the river 4. deemed to exist when the deposit of sediment has reached a level higher than the highest level of the water during the year Effect: land automatically owned by riparian owner, but must be registered so he would acquire title. Rationale: to offset the owner's loss from the possible erosion of his land due to current of the river and to compensate him for legal easements on his land. Notes: 4. If deposit is made by an action of the sea — the State owns the deposit. 2. If man-made, deposit remains part of public dominion 2. Avulsion — process by which a known portion of land is segregated from one estate by the forceful current of the ‘iver, creek or torrent, and is transferred to another Requisites: 1. Segregation and transfer is abrupt and sudden 2. Caused by the current of the river, etc. 3. Portion of land is identifiable or known-24- Can also apply to sudden transfer by other forces of nature such as land transferred from a mountain slope due to an earthquake. 3. Change of river's course — natural change in the course of the waters of the river causes the abandonment of the riverbeds a. The abandoned riverbeds ipso facto belong to the owners whose lands are occupied by the new course in proportion to the area lost. b. Island formed when a river divides itself into branches — belongs to the landowner where such island was formed as well as the land separated from his estate by the current. c. Island is formed on a sea, lake or navigable or floatable river - State owns it. d. Islands formed through successive accumulation of alluvial deposits in non-navigable rivers (1) Belong to the owner of the margins nearest to the island (2) Ifisland is in the middle of the river — shall be owned by owners of both margins, to be divided longitudinally in halves (3) if istand is nearer to the island than the other — the owner of nearer margin shall be the owner II. Rules for accessions to movables A. Accessions to personal property 1. ADJUNCTION — two movable things belonging to different owners are united in such a way that they form a single object, and each of the things united preserves its own nature. E.g., diamond ring-25- Requisites: 1. The 2 things must belong to different owners. (owner of principal and owner of accessory) 2. They are united to form a single object 3. Separation would impair their nature Kinds of Adjunction: 1.Engraftment 2. Attachment (a) ferruminatio — both things are made of the same metal; (b) plumbatura — different metals 3. Escritura (writing) 4. Pintura (painting) 5. Tejido (weaving) 2. COMMIXTION OR CONFUSION a, COMMIXTION — mixture of solids (e.g., mixture of denorado and organic red rice) b. CONFUSION — mixture of liquids (e.g., Xtra unleaded and XCS gasoline; olive oil and vinegar) Rules: a. If caused by the will of the parties or by chance or by the will of one party who is in good faith — there will be co- ownership based on proportional value (not volume) b. If caused by the will of one owner in bad faith, the owner in bad faith loses the entire thing 3. SPECIFICATION — giving of a new form to another person's material through the application of labor-26- E. CO-OWNERSHIP a. Characteristics of co-ownership 1. More than one owner 2. Object of co-wnership is a thing of right which is physically or materially undivided but each co-owner has an aliquot or fractional share of the thing or right 3. Each fractional share is definite in amount but not physically segregated so cannot be identified 4. As to his fractional share, each co-owner has absolute control but as to the object of the ‘ownership, each co-owner exercises ownership together with the other co-owners 5. No juridical personality of its own but exists for the enjoyment of all co-owners b. Sources of co-ownership 1. Law 2. Contract 3. Chance 4. Occupation 5. Succession cc. Rights of co-owners 1. Touse the thing in common Limitations: use for purposes for which intended; interest of co-ownership not prejudiced; other co- owners free to use property according to their own rights-27- 2. To share in the benefits (fruits) and charges (taxes and expenses in preservation) in proportion to interests of each co-owner (a stipulation in a contract providing otherwise is void); Note: a co-owner may exempt himself from paying the charges by _ renouncing so much of his undivided interest as may be equivalent to his share in expenses to reimburse the co-owner who paid for the expenses; exception: waiver not allowed if prejudicial to co- ownership. 3. To bring an action for eject ment 4. Prescription shall not run against any co-owner as long as he recognizes the co-ownership Note: possession of the entire property by one will not ripen to ownership by acquisitive prescription; unless said co-owner repudiates the co-ownership, then the prescriptive period will begin to run. 5. To make repairs for preservation with prior notice of necessity for repairs to others, if practicable 6. To compel the others to share in the necessary expenses even if incurred without prior notice 7. To oppose alterations made without the consent of all, even if beneficial — alterations require unanimity If opposition is clearly prejudicial, the others may go to court.-28- Note: for administration and better enjoyment of property (embellish or improve it) requires majority vote only (controlling majority); co-owner may apply to the court if decisions of the majority are seriously prejudicial to the co-ownership or if a majority vote could not be reached: court to appoint administrator or order measures as it may deem proper. 8.To exercise legal redemption of the share of a co- owner within 30 days from written notice of sale to stranger 9. To defend the co-ownership's interest in court 10. To demand partition anytime —no co-owner shall be obliged to remain in co-ownership Exceptions: (1) testator/donor may prohibit partition for a period of not more than 20 years; (2) if there is agreement not to partition for 10 years, may be extended by new agreement; (3) a law prohibits partition (family home); (4) legal nature of the thing prohibits partition, @.., party wall; (5) partition renders the property unserviceable —shall be sold and and proceeds distributed unless one of the co-owners gets the property and indemnifies the others for their share Exception to the exception: court orders partition for compelling reasons |. Ways of terminating co-ownership 1. Partition — converts into certain and definite parts the respective shares of the co-owners;-29- Effects of Partition: a. Third parties who have acquired real rights over the property such as easements, mortgage, or pledge belonging to them prior to the partition shall be respected. b. Personal rights belonging to third parties prior to the partition shall remain in force. c. Mutual accounting shall be rendered by co- ‘owners to each other with regard to benefits and expenses. d, Each co-owner shall pay for damages due to his negligence or fraud. e. Each co-owner shall be liable for defects of title and quality of the portion assigned to each of the other co- owner 2. Consolidation- merger of all the interest in one co- owner 3. Destruction or loss of the thing owned in common 4, Prescription-clear repudiation of a co-owner of the co-ownership, made known to the other co-owners, and lapse of the period fixed by law G.POSSESSION POSSESSION: the holding of a thing or the enjoyment of a right, either by material occupation or by the fact of subjecting the thing or the right to the action of our will Requisites: 1. Holding /control or material detention or enjoyment of thing or right 2. Intent to possess the thing or right 3. Possession is by virtue of one’s own right-30- 2 KINDS OF POSSESSION: 1. in the concept of an owner 2. in the concept of a holder NATURE OF POSSESSION: a. Jus possidendi — right to possession which is, incidental to and included in the right of ownership b. Jus possessionis- right of possession independent of and apart from the right of ownership FORMS OF POSSESSION a. possession without title whatsoever (that of a thief) b. possession with a juridical title (lessee, pledgee, depositary) c. possession with just title (buyer in good fitle) d. possession with a title in fee simple (possessor is the legal owner) OBJECTS OF POSSESSION General rule: Only things or rights that are capable of being appropriated may be objects of possession. (Art. 530) Exceptions: 1. res communes 2. property of public dominion 3. discontinuous servitudes 4. non-apparent servitudes-31- WAYS OF ACQUIRING POSSESSION: 1 2. 3, . Material occupation of a thing or exercise of a right subjection of the thing or right to a person's will proper acts and legal formalities established for acquiring it EFFECTS OF POSSESSION Possessor in Good Faith Possessor in Bad Faith Fruits Entitled to fruits received until possession is legally interrupted (i.¢., before receipt of judicial summons) [Pending Fruits | Liable with legitimate | possessor (LP) for expenses of cultivation and share in the net harvest in proportion to time of possession | LP may opt to give PGF right to finish cultivation and gathering of growing fruit, as indemnity for his part of expenses and the net proceeds. If possessor does not accept, loses indemnity. Reimburse to the legitimate possessor the fruits received which he would have received No right to pending fruitUseful expenses expenses Loss or deterioration ‘Ornamental; ‘[Possessor in Good Faith | Possessor in Bad Faith Right of reimbursement with Fight of retention | 4. Limited right to remove useful works (UW) (wio damage to Necessary | expenses -32- EFFECTS OF POSSESSION principal) if the who recovers them b. If owner wants to aid value at time of possession fraud or negligence, judicial summons possession (PRP) does not want to keep 2. If PRP gets the UW: (@) to be refunded the amount of useful expenses ‘or be paid the increase in value w/c thing may have acquired by reason thereof (b) to retain the thing until he is reimbursed Not entitied to refund if ‘owner does not want to acquire ornaments but has limited right of removal omaments, entitled to be Not liable for deterioration or loss, unless he acted with Right of reimbursement with 10 right of retention or sown person May remove omamental works a. Ifthe owner does not want to retain possession of omaments: . Principal thing does not suffer injury acquire deterioration, including those arising from fortuitous event, as insurer of the property after ‘Loses what was built/planted | Liable for any type of loss or |= 33— H.USUFRUCT 1. Definition: Usufruct gives a right to enjoy the property of another with the obligation of preserving its form and substance, unless the title constituting it or the law otherwise provides. (Art. 562) 2. Characteristics: a. It is a real right of use and enjoyment b. Transmissible c. It is of temporary nature or duration d. Constituted on real or personal property, consumable ‘or non-consumable, tangible or intangible 3. Classification a. As to source i. Legal il. Voluntary or conventional ili, Created by the will of the parties inter vivos iv. Created mortis causa v. Mixed b. As to extent i. Asto fruits — total or partial ii. As to object — universal or particular c. As to number of persons enjoying the right i. Simple ii, Multiple a) Simultaneous b) Successive4. Rights and obligations of usufructuary A. Rights (1) (2) 3) (4) (5) (6) @) Right to fruits (natural, civil, or industrial) of the property in usufruct. Right to hidden treasure as a stranger. (Art. 566) Right to increases in the thing held in usufruct through accession, the servitudes established in its favor, and in general, to alll the benefits inherent therein. (Art. 571) Right to personally enjoy it, lease it to another, or alienate or donate his right to usufruct, but all contracts entered into by him, shall terminate upon the expiration of the usufruct, except those of rural lands, which will be considered subsisting during the agricultural season. (Art. 572) Right to return the thing held in usufruct in the condition they were in at the termination of the usufruct, due to wear and tear. Usufructuary not obliged to indemnify the owner for any deterioration through wear and tear, unless the same was due to his fraud or negligence. Right to make use of consumable things in usufruct under the obligation to pay their appraised value at the termination of the usufruct. If the things were not appraised, he shall have the right to return the same quantity and quality, or pay the current price at the time the usufruct ceases.B. Obligations Art. 583. The usufructuary, before entering upon the enjoyment of the property, is obliged: (1) To make, after notice to the owner or his legitimate representative, an inventory of all the property, which shall contain an appraisal of the movables and a description of the condition of the immovables; NOTE: a. The inventory is to be done before the physical possession and enjoyment of the property can be had. There could be usufruct without physical possession. b. As a rule, no form is required except where there are real properties. c. Expenses are to be bome by the usufructuary d. Effect of not making inventory—same as when the security isn’t given . When inventory not required 1. When no one will be injured thereby provided that the naked owner consents 2. In case of waiver by the naked owner or the law or where there is stipulation in contract or will (2) To give security, binding himself to fulfill the obligations imposed upon him in accordance with the Civil Code. NOTE: if the usufructuary fails to give security the usufruct still begins but the naked owner will have the rights granted him under Article 586.- 36 When giving of security may be dispensed with: 4. When no one will be injured thereby; 2. When there is waiver by the naked owner or there is stipulation in a will or contract; 3. When the usufructuary is the donor of the property; 4. Where there is parental usufruct; 5. When there is caucion juratoria, which takes place of the bond, and is made by taking an oath to fulfill properly the duties of a usufructuary but this is available only under conditions prescribed 5. Rights of the naked owner (1) The owner of property the usufruct of which is held by another, may alienate it, but he cannot alter its form or substance, or do anything thereon which may be prejudicial to the usufructuary (Art. 581). NOTE: If the naked owner bequeathes or devises to another the usufruct of a thing through a will, the legatee or devisee must respect the usufruct. (2) Aside from the right of the naked owner to alienate the property, he may also: a. Construct any works thereon; b. Make any improvements; or, c. Make plantings thereon, if rural, but always, such acts must not cause: i. Decrease in the value of the usufruct ii, Or prejudice the right of the usufructuary.-37- 6. Extinction, termination, and extinguishment Art. 603. Usufruct is extinguished: (1) By the death of the usufructuary, unless a contrary intention clearly appears; (2) By the expiration of the period for which it was constituted, or by the fulfillment of any resolutory condition provided in the title creating the usufruct; (3) By merger of the usufruct and ownership in the same person; (4) By renunciation of the usufructuary; (6) By the total loss of the thing in usufruct; (6) By the termination of the right of the person constituting the usufruct; (7) By prescription. 1. DONATION 1. Definition: An act of liberality whereby a person disposes gratuitously of a thing or right in favor of another, who accepts it. (Art. 725, CC) 2. Donation mortis causa v. Donation inter vivos Mortis causa: Donations which are to take effect upon the death of the donor partake of the nature of testamentary provisions, and shall be governed by the rules established in the Title on Succession. (Art. 728, CC) Inter-vivos: When the donor intends that the donation shall take effect during the lifetime of the donor, though the property shall not be delivered till after the donor's death, this ‘shall be a donation inter vivos.-38- The fruits of the property from the time of the acceptance of the donation, shall pertain to the donee, unless the donor provides otherwise. (Art. 729, CC) Donation when perfected: From the moment the donor knows of acceptance by the donee. (Art. 734, CC) Forms of donation: (1) Donations of movable property (a) Value is P5,000 or more () Donation and acceptance — in writing; otherwise, it is void; or (b) Value is less than P5,000: (i) Orally — simultaneous delivery is required (actual of constructive) for validity; acceptance oral or written; or i) In writing — valid, with or without simultaneous delivery. (Art. 748) 2) Donation of immovable property (a) Donation must always be in a public document specifying the property donated and the value of the charges which the donee must satisfy; and b) Acceptance may be made either in: {i) The same deed of donation; (ii) \n a separate public document done during the lifetime of the donor, wherein the donor is notified thereof in an authentic form, and such step is noted in both instruments. (Art. 749, CC)-39- Grounds for revocation of donation: (1) Supervening birth, appearance or adoption of a child (Arts. 760 and 761, CC); (2) Failure to comply with any condition imposed upon the donee (Art. 764, CC); and (3) Acts of ingratitude of the donee, ie.: (a) If the donee commits an offense against the person, honor or property of the donor, his wife or children under his parental authority; (b) If the done imputes any criminal offense or act involving moral turpitude, unless the crime has been committed against the donee himself, his wife or children under his authority; and {c) If he unduly refuses him support when the donee is legally or morally bound to give support to the donor. (Art. 765, CC) Prescriptive periods for revocation (1) For acts of ingratitude — one (1) year from the time the donor had knowledge of the fact and it was possible for him to bring the action. (Art. 769, CC) (2) For supervening birth, survival, or adoption of a child —four (4) years from the birth of the first child, or from his legitimation, recognition or adoption, or from the judicial declaration of his filiation, or from the time information was received regarding the existence of the child believed dead. (Ari. 763, CC)-40 - J. EASEMENT 1. Definitions: a. Easement or servitude — encumbrance imposed upon an immovable for the benefit of another immovable belonging to a different owner b, Dominant estate -- immovable in favor of which an easement is established c. Servient estate -— that which is subject to easement 2. Characteristics a. Areal right but will affect third persons b. Imposable only on another's property c. Involves 2 neighboring estates, the dominant estate to which the right belongs, and the servient estate on which the obligation rests. d. inseparable from the estate to which itis attached, and cannot be alienated independently of the estate e. Indivisible and limited to the needs of the dominant owner or estate; £. Alimitation on the rights of ownership of the owner of the servient estate and therefore it is not presumed. Classification Easement relating to water Easement of right of way Easement of light and view Easement of party wall Drainage of buildings eaogpf, Easement against nuisance -41 - A. Easement relating to water (1) Natural drainage; (2) Drainage of buildings (Right to divert the rain waters from one's own roof to the neighboring estate); (3) Easement on riparian banks for navigation, floatage, fishing, salvage, and towpath (Art. 638, CC) (a) Urban areas — within a zone of three (3) meters; (b) Agricultural areas — twenty (20) meters (c) Forest areas — forty (40) meters (4) Easement of a dam (Art, 639, CC); Requisites a. Authority secured from the DPWH (Art. 38, P.D. 1067); and b. Payment of proper indemnity to owner of servient estate (Art. 639, CC). (5) For drawing water or for watering animals (Art. 640-641, CC); Requisites: (a) It must be imposed only for reasons of public use; (b) it must be in favor of a town or village; and (c) There must be payment of proper indemnity. (Art. 640, CC)-42- (6) Aqueduct (Art. 644, CC); Requisites: (a) Proof that owner of the dominant estate can dispose of the water and that it is sufficient for use intended; (b) Proof that the proposed right of way is the most convenient and least onerous to third persons; and (c) Indemnity to owner of the servient estate. (Art. 643, CC) (7) Construction of a stop lock or sluicegate (Art. 647 8.Easement of right of way The owner of an estate, surrounded by other immovables pertaining to other persons and without adequate outlet to a public highway, is entitled to demand a right of way through the neighboring estates, after payment of the proper indemnity. (Art. 649, CC) Requisites for grant of easement of right of way: (1) The dominant estate is surrounded by other immovables and is without an adequate outlet to a public highway; (2) The dominant estate pays proper indemnity; (3) The isolation was not due to the proprietor’s (dominant estate owner's) own acts; and (4) The right of way claimed is at a point least prejudicial to the servient estate. (Costabella Corp. v. CA, G.R. No. 80511, January 25, 1991)-43- C. Easement of light and view NOTE: The burden of proving the existence of the foregoing pre-requisites lies on the owner of the dominant estate. (Costabella Corp. v. CA, supra) GENERAL RULE: In easement of right of way, that easement where the way is shortest and will cause least prejudice shall be chosen. EXCEPTION: If the two circumstances do not concur in a single tenement, the way where damage will be least shall be used even if not the shortest route. This is so because least prejudice prevails over shortest distance. (Quimen v. CA, G.R. No. 112331, May 29, 1996) Right to make openings in one’s wall to admit light and to make projections (e.g. windows, apertures, balconies) to afford a view upon or towards an adjoining land or tenement. (Arts.669-670, CC) Restrictions: (1) Direct view: Observe distance of two (2) meters between the wall or the projection and the contiguous property. (Art. 670, CC) (2) Side or oblique view: Observe distance of sixty (60) centimeters between the two properties. (Arts. 670- 671, CC) NOTE: The non-observance of the restrictions shall not give rise to prescription. (Art. 670, CC)-44- D. Easement of Party Wall A wall used jointly by two parties under easement agreement, erected upon a line separating two parcels of land, each of which is a separate real estate. (B.P. Big. 220) GENERAL RULE: The easement of party wall is presumed in the following: (1) In dividing walls of adjoining buildings up to the point of common elevation; (2) in dividing walls of gardens or yards situated in cities, towns, or in rural communities; (3) in fences, walls and live hedges dividing rural lands. (Art. 659, CC) EXCEPTION: If there is a title or exterior sign, or proof to the contrary. (Ibid.) NOTE: Party walls should be registered. (Lao v. Heirs of Alburo, G.R. No. L-10372, December 14, 1915) * E. Drainage of Buildings Types: * (1) Easement of drainage of buildings The owner of a building shall be obliged to construct its roof or covering in such manner that the rain water shall fall on his own land or on a street or public place, and not on the land of his neighbor, even though the adjacent land may belong to two or more persons, one of ‘whom is the owner of the roof.-45- * Even if it should fall on his own land, the owner shall be obliged to collect the water in such a way as not to cause damage to the adjacent land or tenement. (Art. 674, CC) + (2) Easement to receive water falling from roofs Easement to receive the water upon his own roof or give it another outlet. (Art. 675, CC) (3) Easement to give outlet to rain water Requisites for establishment of an easement giving outlet to rain water: (a) The yard or court of a house is surrounded by other houses; (b) It is not possible to give an outlet through the house itself to the rain water collected thereon; (c) Outlet must be where egress is easiest and establishing a conduit for the drainage of water; and (d) Payment of proper indemnity.(Art.676, CC) F) Easement Against Nuisance Every building or piece of land is subject to the easement which prohibits the proprietor or possessor from committing nuisance through noise, jarring, offensive odor, smoke, heat, dust, water, glare and other causes. (Art. 682, CC)-46- Extinguishment of Easements: 4) By merger in the same person of the ownership of the dominant and servient estates; 2) By nonuser for ten years; (@) With respect to discontinuous easements, this period shall be computed from the day on which they ceased to be used (b) With respect to continuous easements, from the day on which an act contrary to the same took place. 3)When either or both of the estates fall into such condition that the easement cannot be used; but it shall revive if the subsequent condition of the estates or either of them should again permit its use, unless when the use becomes possible, sufficient time for prescription has elapsed, in accordance with the provisions of the preceding number; 4) By the expiration of the term or the fulfilment of the condition, if the easement is temporary or conditional; 5) By the renunciation of the owner of the dominant estate; and 6) By the redemption agreed upon between the owners of the dominant and servient estates. (Art. 631, CC-47- NUISANCE Any act, omission, establishment, business, condition of property, or anything else which: (1) Injures or endangers the health or safety of others; (2) Annoys or offends the senses; (3) Shocks, defies or disregards decency or morality; (4) Obstructs or interferes with the free passage of any public highway or street, or any body of water; or (5) Hinders or impairs the use of property. (Art. 694, CC) Public nuisance — Affects a community or neighborhood or any considerable number of persons, although the extent of the annoyance, danger or damage upon individuals may be unequal. Private nuisance - Violates only private rights and produces damages to but one or a few persons. (Cruz, et al. v. Pandacan Hiker's Club, G.R. No. 188213, January 11, 2016) * Remedies against a public nuisance: (1) Prosecution under the RPC or a municipal ordinance; (2) Civil action; or (3) Abatement, without judicial proceedings. (Art. 699, ce)- 48 - Doctrine of attractive nuisance ‘One who maintains on his premises dangerous instrumentalities or appliances of a character likely to attract children in play, and who fails to exercise ordinary care to prevent children from playing therewith or resorting thereto, is liable to a child of tender years who is injured thereby, even if the child is technically a trespasser in the premises. (Hidalgo Enterprises, Inc. v. Balandan, et al., G.R. No. L- 3422, June 13, 1952) Nuisance Per Se [Nuisance Per Accidens Nuisance under any and all circumstances [Depends upon certain conditions and circumstances Constitutes a direct menace to public health and safety | May be summarily under the undefined law of necessity {Its existence Is a question of |fact due hearing thereon in a tribunal authorized to decide whether such a thing in law constitute a nuisance