PROPERTY
WHAT IS PROPERTY?
 Any physical or real, juridical and legal entity
being capable of becoming the subject matter
or object terminus of a juridical relation
o Object for a validity of contract
o Can be appropriated
 “Proprius”-belonging to one’s own
 ONLY to things which are already possessed
and found in possession of man
WHAT IS A THING?
 Any object that exists and is capable of
satisfying human needs
o Includes those which are already
possessed or owned and those that are
susceptible of appropriation
 Not all kinds of things are property; all kinds
of property are things
REQUISITES OF PROPERTY (U-S-A)
 UTILITY
o It can serve to satisfy humamn needs
 SUBSTANTIVITY
o Has separate or autonomous
existence
 APPROPRIABILITY
o Can be a subject of appropriation
o Not included: those which are not
capable of human control
o Those which are outside the
commerce of man
Article 414. All things which are or may be the
object of appropriation are considered either:
(1) Immovable or real property; or
(2) Movable or personal property. (333)
MOVABLE/ PERSONAL PROPERTY
 Those which can be transferred from one
place to another
 Arts 415-417
 Prescription: 4-8 years
IMMOVABLE/REAL PROPERTY
 Those which cannot be transferred from
place to place without destruction itself
 Arts 418
 Prescription: 10 or 30 years
FROM THE VIEWPOINT OF OWNERSHIP
 Property of public dominion
 Property of private ownership
REAL PROPERTY
Article 415. The following are immovable property:
(1) Land, buildings, roads and constructions of
all kinds adhered to the soil;
(2) Trees, plants, and growing fruits, while they
are attached to the land or form an integral part
of an immovable;
(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;
(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;
(5) Machinery, receptacles, 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, and which tend directly to meet the
needs of the said industry or works;
(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;
(7) Fertilizer actually used on a piece of land;
(8) Mines, quarries, and slag dumps, while the
matter thereof forms part of the bed, and
waters either running or stagnant;
(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;
(10) Contracts for public works, and servitudes
and other real rights over immovable property.
JURIDICAL CLASSIFICATION OF REAL
PROPERTIES
 BY NATURE
o By their nature cannot be moved from on
place to another
o Lands and roads (Par. 1, Art. 415)
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 o Mines, quarries and slug dumps (Par. 8,
Art. 415)
 BY INCORPORATION
o Must be substantial and not provisional
o Separation from the immovable may
cause damage or detetioration
o W/N it will cause damage when removed
o Is the person who introduced it importan?
o Examples:
 Constructions adhered to the soil
(Par. 1, Art. 415)
 Trees, plants and growing fruits
(Par. 2, Art. 415)
 Attached to an immovable in the
manner provided (Par. 3, Art. 415)
 Par. 7
 BY DESTINATION
o Essentially movable, but by the purpose
for which they have been place in an
immovable
o Pars.4-6 and 9 of Art. 415
o KINDS
 Machineries/Equipments
 Ornaments
o ELEMENTS
 Owner introduced it
 Necessary to the trade or industry,
or even if not necessary there is the
intention of attaching the property
permanently
 BY ANALOGY
o Immovable by analogy or law
o Contracts for public works
ARTICLE 415 (1)
 LANDS AND ROADS
o Always immovable (by nature)
 BUILDINGS
o Classified as immovable by its
adherence to the soil
o Adheres to the land and not merely
superimposed in the soil
o Once the house/building is demolished,
it may not be considered as immovable
o DISTINCT from the land on which it is
constructed and therefore can be a
subject of a separate contract
 CONSTRUCTIONS ADHERED TO THE
SOIL
o Must be attached permanently to the
land
o FIXED OR INTEGRAL not temporary
ARTICLE 415 (2)
 TREES AND PLANTS
o While attached, considered as
immovable property
o Immovable due to their incorporation to
the sould or because they form an
integral part
 GROWING FRUITS
o Considered as real as long as they are
ATTACHED TO THE SOIL
o May exceptionally be treated as personal
purusuant to Art. 416(2) – for the purpose
of sale
ARTICLE 415(3)
 Everything attached to an immovable in a
fixed manner
o Immovable by incorporation
o Cannot be separated therefrom without
breaking the material
o Need not to be attached by the owner
ARTICLE 415(4)
 “Statutes, reliefs, paintings or other
objects used for ornamentation”
o REQUISITES:
 Must be placed in the buildings or
on lands by the owner of the
immovable or by his agent
 They are placed there in a manner
that it reveals the attention to be
attached permanently
o AS COMPARED TO PAR. 3
 Incorporation: Par 4-made by
owner; Par 3-immaterial
 Separation: Par 3- impossible;
Par4-possible w/o deterioratin of
the immovable or destruction of the
material
ARTICLE 415(5)
 “Machineries, receptacles, instruments or
implements…”
o REQUISITES:
 Must be machinery, receptacles,
instruments or implements
 Must be placed by the owner of the
tenement or by his agent
 There must be an industry or work
carried in such building or on the
piece of land
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  They must tend directly to the
needs of said industry or work
ARTICLE 415(6)
 “Animal houses, pigeon-houses, etc…”
o Immovable by destination
o Need not to be attached by the owner
o MUST BE ATTACHED TO SOIL and
MUST BE OF PERMANENT
CHARACTER
 Animals included
o Animals inside houses, pigeon houses,
etc are considered as real property
o XPN: Art 416- real property w/c by any
provision of the law is considered as
personal property
 Fish in fish ponds-considered
personal property for purposes of
theft
ARTICLE 415 (7)
 “FERTILIZER”
o Immovable by incorporation
o MUST BE USED ON THE LAND
ARTICLE 415 (8)
 MINES, QUARRIES, SLAG DUMPS
o Immovable property as long as
unsevered from the soil
o Once separated; no longer considered
mindsbut minerals (PERSONAL NA)
 WATERS
o Either runnig or stagnant
o Found in their natural beds
ARTICLE 415 (9)
 DOCKS AND STRUCTURES
o Considered as immovables; though
floating, as long as they are intended
tby their nature and object to remain at
a fixed place on a river, lake or coast
ARTICLE 415(10)
 RIGHTS AS PROPERTY
o Provided it is patrimonial in nature
o Depends on subject matter
o REAL- when it is an action in
rem/against the whole world
o PERSONAL-with a passive subject,
action in personam
TAX x REAL PROPERTY
 Which law shall govern-tax or civ code?
o Real property tax code does not define
what real property is but simply says
the realty tax imposed on real property
PERSONAL PROPERTY
NO PRECISE DEFINITION
 Code simply enumerates what are to be
considered as personal property
 If not included in Art. 415, then it is
considered as personal property
KINDS
 By nature
 By analogy
WHY IS THERE A NEED FOR DISTINCTION
 CREDIT TRANSACTIONS
o If you want to obtain loan and you give
yout house to the creditor as collateral,
that is REAL ESTATE mortgage
o If you give your car as collaterla, that is
CHATTEL mortgage
 CRIMINAL LAW
o Theft is unlawful taking of personal
property with intent to gain
o If real property is taken, it is considered
as unlawful detainer or usurpation
 TAXATION
o Tax on land is REAL ESTATE tax
BY NATURE
Article 416. The following things are deemed to be
personal property:
(1) Those movables susceptible of appropriation
which are not included in the preceding article;
(2) Real property which by any special provision
of law is considered as personalty;
(3) Forces of nature which are brought under
control by science; and
(4) In general, all things which can be
transported from place to place without
impairment of the real property to which they are
fixed. (335a)
ARTICLE 416 (3)
 Forces of nature in their original state are ano
ordinarily subect to appropriation because of
the degree of difficulty in appropriating them
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  However, if these forces are brought under
the control of man through science then it is
considered as personal property
 Example: gas and electricity
ARTICLE 416 (4)
 Vessels
 Machineries for used in an industry which are
not placed on the tenement by the owner and
not attached in a fixed manner
BY ANALOGY
Article 417. The following are also considered as
personal property:
(1) Obligations and actions which have for their
object movables or demandable sums; and
(2) Shares of stock of agricultural, commercial
and industrial entities, although they may have
real estate. (336a)
ARTICLE 417(1)
 PERSONAL RIGHT=PERSONAL PROP
 Every obligation creates a personal right on
part of the creditor to demand for its fulfillment
of performance
 Chose in action- personal property; intagible
right
ARTICLE 417(2)
 Personal property although they may have
real estate
Article 418. Movable property is either consumable
or nonconsumable. To the first class belong those
movables which cannot be used in a manner
appropriate to their nature without their being
consumed; to the second class belong all the
others. (337)
CONSUMABLE v. NON-CONSUMABLE
 Applies only to personal property
 Does not paply to all kinds of personal
property but only those which are corporeal in
nature
 CONSUMMABLE
o Movable which cannot be used in a
manner appropriate to its nature without
itself being consumed
 NON-CONSUMMABLE
o Movable which can be used in a manner
appropriate to its nature without itself
being consummed
HOW TO DETERMINE CONSUMMABILITY
(DEAN LR)
 Is there a reduction or decrease in the
quantity?
 Is there physical destruction of the property?
 Is there deterioation of the thing?
FUNGIBLE and NON-FUNGIBLE
 DIFFERENCE WITH CONSUMMABLES
o Consummables- basis of classification if
the nature of the corporeal object
o Fungible- basis is the intention of the
parties
 FUNGIBLE
o Property that can be replaced by another
property of the same kind or quality
PROPERTY IN RELATION TO THE PERSON
TO WHOM IT BELONGS
Article 419. Property is either of public dominion or
of private ownership. (338)
PRIVATE OWNERSHIP
 Owned by private persons, whether natural or
juridical
 Can be acquired by acquisitive prescription
PUBLIC PROPERTIES
 PUBLIC DOMINION
o Inalienable
o Owned by the government
o Regalian Doctrine
o Outside the commerce of men
 PATRIMONIAL
o Owned by state in its private capacity
o Proprietary
o May be alienated
Article 420. The following things are property of
public dominion:
(1) Those intended for public use, such as roads,
canals, rivers, torrents, ports and bridges
constructed by the State, banks, shores,
roadsteads, and others of similar character;
(2) Those which belong to the State, without
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 being for public use, and are intended for some
public service or for the development of the
national wealth. (339a)
KINDS OF PROPERTY OF PUBLIC DOMINION
PERTAINING TO THE STATE
 For public use
 Intended for public service
 Intended for development of national wealth
PUBLIC OWNERSHIP v STATE OWNERSHIP
 PUBLIC OWNERSHIP
o Owned by the public in general
o Purpose: serve the state as a juridical
purporse
o Intended for the common and public
welfare
o Cannot be appropriated
o Can be used indiscriminately by anyone
 STATE OWNERSHIP
o Properties held by the State under the
regalian doctrine
o Article 12, Sec. 2 of the 1987 Constitution
ARTICLE 420 (1)
 Enumeration of properties of public dominion
intended for public use
 ROADS
o National highways and roads constructed
and maintained by the government
throug the DPWH
o Municipal roads and streets –Art 424
 CANALS
o Artificial waterway, drainigage, irrigation
or navigation
o No private person has a right to usurp
protection of a watercourse unless it shall
have been proved that he constructed
the same within the property of his own
exclusive ownership
 RIVERS
o Includes running water, the bed and the
banks
o Natural bed- the ground covered by its
waters during the highest floods
 PORTS
o Refers to seaports and airports
o MIAA Airport Lands-port constructed by
the State
 SHORES
o Space which is alternatively covered and
uncovered by water with the movements
of the tides
o When the sea advances and private
properties are invaded by the waves, the
properties so invaded become part of the
shore or beach –the pass to the public
domain
 FORESHORE LANDS
o Strip of land that lies between the high
and low watermarks and is alternatively
wet and dry according to the flow of tides
 LAKES
o Part of public domain unless developed
by a private person on private lands
 OTHERS
o Creeks
o Reclaimed lands of public estates
authority
o Military Reservations
ARTICLE 420 (2)
 Cannot be used as anyone, only those
authorized by proper authority
 Example: Roppongi Property in Japan (Phil.
Embassy)
PROPERTY FOR THE DEVELOPMENT OF
NATIONAL WEALTH
 All lands not otherwise appearing to be
clearly within private ownership are
presumed to belong to the state
 NATURAL RESOURCES
o Fishponds
o Watershed Reservation
o Submerged Lands
 LANDS OF PUBLIC DOMAIN
Article 421. All other property of the State, which is
not of the character stated in the preceding article,
is patrimonial property. (340a)
PATRIMONIAL PROPERTY
 Considered as property of the State in a
private sense
 State has the same rights and has the same
power of disposition as private individuals
subject of course to rules and regulations
 Examples
o Friar Lands- lands acquired by the gov’t
from religious corporations or orders
o Alienable and Disposable Lands of public
domain
o Lands Covered by R.R. 7227
 Disposition of Patrimonial Property
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 o Any conveyance of real property falling
under the patrimonial property of the
State must be authorized and approved
by a law enacted by Congress
Article 422. Property of public dominion, when no
longer intended for public use or for public service,
shall form part of the patrimonial property of the
State. (341a)
CONVERSION FROM PUBLIC DOMINION TO
PATRIMONIAL PROPERTY
 Art 422 does not address who has the
authority to effect such conversion and neither
does it set out or refer any procedure for such
conversion
 No specific formula or procedure of
conversion is provided
Article 423. The property of provinces, cities, and
municipalities is divided into property for public use
and patrimonial property. (343)
Article 424. Property for public use, in the
provinces, cities, and municipalities, consist of the
provincial roads, city streets, municipal streets, the
squares, fountains, public waters, promenades, and
public works for public service paid for by said
provinces, cities, or municipalities.
All other property possessed by any of them is
patrimonial and shall be governed by this Code,
without prejudice to the provisions of special laws.
(344a)
CLASSIFICATION OF PROPERTIES OF
POLITICAL SUBDIVISIONS
 FOR PUBLIC USE
o Provincial roads, city, streets, municipal
streets, squares, fountains , public
waters, promenades, and public works
for public service paid for by said
provinces, cities or municipalities
 FOR PATRIMONIAL PROPERTY
o Others not mentioned
PROPERTY FOR PUBLIC USE OF POLITICAL
SUBDIVISIONS
 Governed by the same principles of property
under public domain
o Outside the commerce of man
o Cannot be acquired by prescription
o Not subject to attachment and
execution
o Cannot be burdened by any voluntary
easement
Article 425. Property of private ownership, besides
the patrimonial property of the State, provinces,
cities, and municipalities, consists of all property
belonging to private persons, either individually or
collectively. (345a)
PRIVATE PROPERTY
 May belong to the State, to provinces, cities
and municipalities or may belong to private
individuals
 PATRIMONIAL- private property belonging to
State
 PRIVATE OWNERSHIP-owned by private ppl
Article 426. Whenever by provision of the law, or
an individual declaration, the expression
"immovable things or property," or "movable things
or property," is used, it shall be deemed to include,
respectively, the things enumerated in Chapter 1
and Chapter 2.
Whenever the word "muebles," or "furniture," is
used alone, it shall not be deemed to include
money, credits, commercial securities, stocks and
bonds, jewelry, scientific or artistic collections,
books, medals, arms, clothing, horses or carriages
and their accessories, grains, liquids and
merchandise, or other things which do not have as
their principal object the furnishing or ornamenting
of a building, except where from the context of the
law, or the individual declaration, the contrary
clearly appears. (346a)
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