PROPERTY – PREEXAM NOTES
From the lectures of Atty. Ramon Edison Batacan
Legal Bases
 In Laurel v. Garcia, the conversion from public to patrimonial property
can no longer be inferred from the non-use alone of the property for the
purpose to which it is intended.
 In Capitulo v. Aquino, properties which are intended for public use or
for some public service are properties for public use. All others are
patrimonial properties.
Ownership
 According to Justice JBL Reyes, ownership is an independent right of
exclusive enjoyment and control of the thing for the purpose of
deriving therefrom all advantages required by the reasonable needs
of the owner (holder of the right) and the promotion of the general
welfare but subject to the restrictions imposed by law and the right
of others.
Forcible entry vs. Action for unlawful detainer
Forcible entry is a summary action to recover material or physical
possession of real property when the person who originally held it was
deprived of possession, by “force, intimidation, threat, strategy, or stealth.”
An action for unlawful detainer, on the other hand, may be filed when
possession by “a lessor, vendor, vendee, or other person against whom the
possession of any land or building is unlawfully withheld after the expiration
or termination of the right to hold possession, by virtue of any contract,
express or implied.”
Doctrine of Self-Help
 The owner or lawful possessor may use such force as reasonably
necessary to repel or prevent an actual or threatened unlawful
physical invasion or usurpation of his property.
Legal Bases: Page 1
Digests by: John Glenn Lambayon
 However, in German Management & Service, Inc. v. CA, when
possession has already been lost, the owner must resort to judicial
process for the recovery of property. Under 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 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.
State of necessity under Article 432
In order for the interference to be justified under the state of necessity, the
following requisites must be present:
 There must be a situation of grave peril, an actual or imminent danger,
either upon the person of the actor or a third person or their property
 The interference is necessary to avert such danger
 The threatened damage, compared to the damage arising to the owner
from the interference, is much greater
 The state of necessity must not be brought about by the intentional
provocation of the party invoking the same
Burden of proof
 Burden of proof lies on the party who substantially asserts the
affirmative of an issue for he who relies upon the existence of a fact
should be called upon to prove that fact.
Requisites for property to be considered hidden treasure
 The deposit of money, jewelry or other precious objects must be hidden
or unknown
 The lawful ownership of which must not appear
Partus sequitur ventrem
 In case of absence of agreement, the offspring follows the condition of
the mother.
 PROPERTY – PREEXAM NOTES
From the lectures of Atty. Ramon Edison Batacan
Digests by: John Glenn Lambayon

OWNER OF MATERIALS
Good faith Bad faith
Good faith 447: The landowner is exonerated from punitive liability and By analogy, applying 449 and 455, the owner of the
damages. But he must indemnify the owner for the value materials loses his materials without any right
of the materials (no unjust enrichment) whatsoever and is furthermore liable to the landowner
for damages.
Owner of materials: Demand the removal and return of
materials ONLY IF such removal can be done without injury 449: BUILDER IN BAD FAITH loses what is built,
to the work constructed or without the plantings, planted, or sown without right to indemnity
constructions or works being destroyed. Not expressly
provided, but the landowner may choose to return the 455: If owner of materials is a third person in good faith, the
materials if removal is possible without injury… landowner shall answer subsidiarily for their value and only
in the event that the one who mad use of them has no other
448: Landowner has a right to appropriate as his own the property with which to pay.
works, after payment of indemnity (necessary and useful
expenses)
450: IF BUILDER IS IN BAD FAITH, owner of land may
Landowner may oblige builder to buy the land. If the value of demand the demolition of the work, or that the planting or
the land is more than the building or trees, then builder is sowing be removed, in order to replace things in their former
only required to pay reasonable rent if the owner does not condition at the expense of the person who built, planted
LANDOWNER

choose to appropriate the building or trees after proper or sowed.

indemnity.
He may compel the builder or planter to pay the price of
the land, and the sower the proper rent.
451: Landowner is entitled to damages from the builder,
planter or sower, when BUILDER IS IN BAD FAITH
(449) and when landowner chooses demolition or removal
of what was built or planted IN BAD FAITH (450)

452: The builder, planter, sower in bad faith is entitled to

reimbursement for the necessary expenses of preservation of
the land.

Bad faith 447: The owner of materials may remove them in any event, 453: If both acted in bad faith, they shall be considered as
with a right to be indemnified for damages. having acted in good faith. 447 applies.

Without prejudice to the criminal liability of the landowner

for the unlawful taking and use of the materials of another
without the latter’s knowledge or consent.

454: When in builder is in GOOD FAITH, then 447

applies.

Legal Bases: Page 2


What are immovable properties
Article 415. The following are immovable property
Immovable by nature
 Par. 1: Land and roads
 Par. 8. Mines, quarries, and slag dumps, while the matter thereof forms
part of the bed, and waters either running or stagnant
Immovable by incorporation
 Par. 1: Buildings and constructions of all kinds adhered to the soil
 Par. 2. Trees, plants, and growing fruits, while they are attached to the
land or form an integral part of an immovable.
 Par. 3. Everything attached to an immovable in a fixed manner, in such a
way that it cannot be separated therefrom without breaking the material
or deterioration of the object
Immovable by destination
 Par. 4: Statues, reliefs, paintings or other objects for use or
ornamentation, placed in buildings or on lands BY THE OWNER OF
THE IMMOVABLE in such a manner that it reveals the intention to
attach them permanently to the tenements.
 Par. 5: Machinery, receptacles, and instruments or implements intended
by the OWNER OF THE TENEMENT for an industry or works
which may be carried on in a building or on a piece of land, which tend
to directly to meet the needs of the said industry or works.
 Par. 6: Animal houses, pigeon-houses, beehives, fish ponds, or breeding
places of similar nature, in case THEIR OWNER has placed them or
preserves them with the intention to have them permanently attached to
the land, and forming a permanent part of it; the animals in these places
are included
 Par. 7: Fertilizer actually used on a piece of land
 Par. 9 Docks and structures which, though floating, are intended by their
nature and object to remain at a fixed place on a river, lake, or coast.
Immovable by analogy or law
 Par. 10. Contracts for public works, and servitudes, and other real rights
over immovable property.
Status of contract which has for its subject immovable property BUT
what is required by law is a movable, and vice versa.
In case law, the Court has recognized that the parties to a contract may
by agreement treat as personal property that which by nature would be
a real property.
 Applying the doctrine of estoppel, the contract between the parties is
valid. The doctrine not only prohibits a party from assuming inconsistent
positions but also precludes him from repudiating an obligation
voluntarily assumed after having accepted benefits therefrom. To
countenance such repudiation would be contrary to equity and
would put a premium on fraud and misrepresentation.
 However, with respect to third persons, the contract so entered by the
parties will not affect them. Therefore, if the resolution of the case
calls for the application of the law, there is no other conclusion but
to apply the pertinent provisions of the Civil Code.
Classification of property into real or personal property is a question of
law. In Standard Oil v. Jaramillo, the Register of Deeds may not refuse
registration of a chattel mortgage on the pretext that the subject matter
is not a personal property. The duties of the ROD in respect to the
registration of chattel mortgages are of purely ministerial in character.
Legal Bases: Page 3
PROPERTY – PREEXAM NOTES
From the lectures of Atty. Ramon Edison Batacan
Digests by: John Glenn Lambayon
Buildings are always immovable
In PUNZALAN v. LACSAMANA, the Court held that the warehouse
claimed to be owned by Punzalan is an immovable or real property as
provided in Article 415(1) and that buildings are always immovable under
the Code. The Court further ruled that “the prevalent doctrine is that an
action for the annulment or rescission of a sale or real property does not
operate to efface the fundamental and prime objective and nature of the case,
which is to recover said property. It is a real action.”
Actions affecting title to or possession of real property or an interest therein
(real actions) shall be commenced and tried in the proper court that has
territorial jurisdiction over the area where the real property is situated.
On the other hand, all other actions (personal actions) shall be commenced
and tried in the proper courts where the plaintiff or any of the principal
plaintiffs resides or where the defendant or any of the principal defendant
resides.
As a general rule, under Article 415(5), machineries, receptacles,
instruments or implements must be placed by the owner or his agent
If the machineries, etc. is placed by the owner or his agent, the movable
becomes immobilized. However, it does not apply when it is placed by the
tenant, usufructuary, or any other person having only a temporary right,
unless such person acted as the agent of the owner.
In Davao Sawmill v. Castillo, however, when there is a provision in the
lease that the machineries, etc. placed by the lessee will become, at the
termination of the lease, the property of the lessor, then said machineries,
etc. are consider IMMOVABLE. Here, the lessor can be considered as an
agent acting in behalf of the owner.
Hidden treasure
Art. 438. Hidden treasure belongs to the owner of the land, building, or
other property on which it is found. xxx
Art. 439. Hidden treasure is understood to be any hidden and unknown
deposit of money, jewelry, or other precious objects, the lawful ownership of
which does not appear.
Good faith and bad faith
To be deemed a builder in good faith, it is essential that a person asserts title
to the land on which he builds, i.e., it is essential that he be a possessor in the
concept of an owner and that he be unaware that there exists in his title or
mode of acquisition any flaw which invalidates it.
453: xxx there is bad faith on the part of the landowner whenever the
act was done with his knowledge and without opposition on his part.
Effect of declaration of land as alienable and disposable
The land will remain as a property of the public dominion. In case law, the
classification of property as alienable and disposable land of the public
domain does not change its status as property of the public dominion. There
must be an express declaration by the State that the public dominion
property is no longer intended for public service or the development of
national wealth or that the property has been converted into
patrimonial. Without such express declaration, the property, even if
classified as alienable or disposable, remains property of the public
dominion.
Effect of declaration of land as no longer intended for public use or
public service
The declaration that the property is no loner intended for public use or public
service converted the same into patrimonial property provided that such

express declaration was in the form of a law duly enacted by Congress or in
a Presidential Proclamation, in cases where the President was duly
authorized by law.
In case law, when public land is no longer intended for public use, public
service or for the development of the national wealth, it is thereby
effectively removed from the ambit of public dominion and converted
into patrimonial provided that such conversion must be made in the
form of law duly enacted by Congress or by a Presidential
Proclamation, in cases where the President is duly authorized by law to
that effect.
Action for reconveyance /recovery of property
Under Section 47 of PD 1529, no title to registered land in derogation of the
title of the registered owner shall be acquired by prescription or adverse
possession.
The right to recover is equally imprescriptible since possession is a mere
consequence of ownership. (Republic v. Mendoza)
Who is entitled to interest when the amount for just compensation has
been deposited
The right of accession is conferred by ownership of the principal
property.
In Republic v. Holy Trinity Realty Development Corporation, the owner
whose property is sought to be expropriated becomes the owner of the
deposited amount. Any interest, therefore, that accrues to such deposit
belongs to the owner by right of accession.
Legal Bases: Page 4
PROPERTY – PREEXAM NOTES
From the lectures of Atty. Ramon Edison Batacan
Digests by: John Glenn Lambayon
Alluvium
Requisites for alluvium
 That the accumulation of soil or sediment be gradual and imperceptible.
If it is sudden and abrupt, it is considered avulsion.
 That it be the result of the action of the waters of the river
 That the land where the accretion takes place is adjacent to the banks
Legal bases
 Art. 457: To the owners of lands adjoining the banks of rivers belong
the accretion which they gradually receive from the effects of the current
waters.
 Art. 458: The owners of estates adjoining ponds or lagoons do not
acquire land left dry by the natural decrease of the waters or lose that
inundated by them in extraordinary floods.
The right of the owners of the bank adjacent to rivers to the accretion
which they receive by virtue of the action of the waters of the river is
IPSO JURE and there is no need of an action of the owner of the bank
to possess the new addition since it belongs to him by the very fact of
addition.
HOWEVER, The accretion does not automatically become registered
land just because the lot which receives the same is covered by Torrens
Title. THUS, the accretion, which is UNREGISTERED land, to a
registered land does not preclude acquisition by another person through
prescription.
 1118: Possession has to be in the concept of an owner, public, peaceful
and uninterrupted.
 1119: Acts of possessory character executed in virtue of a license or by
mere tolerance of the owner shall not be available for purposes of I
Possession must be in the concept of an owner. Payment of taxes are not
enough to make possession in the concept of an owner. They must
repudiate the possession in the concept of a holder by executing
unequivocal acts of repudiation amounting to the ouster of the owner,
known to the owner, and must be proven by clear and convincing
evidence. Only then would the possession become adverse.
Avulsion
Legal bases:
 Art. 458: Whenever the current of a river, creek, or torrent segregates
from an estate on its bank a known portion of land and transfers it to
another estate, the owner of the land to which the segregated portion
BELONGED retains the ownership to it provided that he removes
the same within 2 years.