PROPERTY (Illegal Drugs)

D. Existence
Property – Considered as an object, is that a. Present property
which is, or may be, appropriated. b. Future property - already
belonged to another person
Property Law – is that branch of civil law that
defines and classifies the different kinds of Note: A harvest may be a subject of
appropriable objects, provides for their sale, but not a subject of donation.
acquisition and loss, and in general, treats of
their nature and consequences of real rights. E. Materiality or Immateriality
a. Tangible
THING VS PROPERTY b. Intangible (Shares of Stocks,
rights, credits)
A thing is broader in scope for it includes both F. Dependence or Importance
appropriable and non-appropriable objects. On a. Principal
the other hand, a property is an appropriable b. Accessory
object that could be possessed by a person. G. Capability of Substitution
a. Fungible (Capable of
CLASSIFICATION OF THINGS Substitution)
b. Non-Fungible (Incapable of such
A. Res nullius (belonging to no one) substitution)
Ex: Fish still swimming in the ocean, H. Nature or Definiteness
abandoned objects, wild animals. a. Generic
b. Specific
B. Res communes (belonging to everyone) I. Whether in the Custody of the Court or
Ex: Air, wind, sunlight and starlight Free
a. Custodia Legis (In the custody
C. Res alicujus (belonging to someone) of the court)
Objects that are tangible or intangible, b. “Free” property
which are owned privately, either in a
collective or individual capacity.
Ex: book, shares of stock, parcel of land CHARACTERISTICS OF PROPERTY

CLASSIFICATION OF PROPERTY A. Utility for the satisfaction of moral or

economic wants
A. Mobility and non-mobility B. Susceptibility of appropriation
a. Movable/Personal Property C. Individuality or substantivity (it can
(Car) exist by itself and not merely as a part
b. Immovable/Real Property of a whole.)
(Land)
B. Ownership Article 414. All things which are or may be the
a. Public Dominion (Rivers) object of appropriation are considered either:
b. Private Dominion (Fountain
Pen) 1. Immovable or real property
C. Alienability 2. Movable or personal property
a. Within the commerce of man
(legal properties) Note: The classification of property into
b. Outside the commerce of man immovables or movables does not assume its
importance from the fact of mobility or non-
mobility, but from the fact that different
provisions of the law govern the acquisition,
possession, disposition, loss and registration of
immovables and movables.
Ex. A donation of a real property must be in a
public document, otherwise it will be deemed
as invalid. While the donation of an automobile
only needs a private instrument to perfect the
donation.
RECLASSIFICATION VS CONVERSION
Reclassification - is the act of changing the
current use of a piece of agricultural land into
some other use. (As approved by the
Department of Agrarian Reform.)
Conversion – is the act of specifying how
agricultural lands shall be utilized for non-
agricultural uses such as residential, industrial
or commercial.
THE HUMAN BODY
The human body, whether alive, or dead, is
neither real nor personal property, for it is not
even property at all, in that it generally cannot
be appropriated.
No one can sell his/her body.
ORGAN DONATION ACT – The Organ Donation
Act of 1991 otherwise known as RA 7170.
It is an act that authorizes the legacy or
donation of all or part of a human body after
death for specified purposes.
Who may execute a Legacy?
* Any individual, at least 18 years of age and of
sound mind.
Who may execute a Donation?
- Spouse
- Son or Daughter of Legal Age
- Either parent
- Brother or sister of legal age
- Guardian over the person of the decedent at
the time of his/her death
In particular order of priority
A legacy is executed through a will.
INTERNATIONAL SHARING OF HUMAN
ORGANS OR TISSUES
It shall be made only thru exchange programs
duly approved by the Department of Health.
ORGAN BANK STORAGE FACILITY – refers to a
facility licensed, accredited, or approved under
the law for storage of human bodies or parts
thereof.
Interest in Land – the legal concern of a person
on the thing or property, or in the right to some
of the benefits or uses from which property is
inseparable.
IMMOVABLE PROPERTY
- These are properties which are firmly fixed,
settled or fastened.
CLASSIFICATION OF REAL PROPERTIES
A. Real property by nature (trees and
plants)
B. Real property by incorporation (like a
building)
C. Real property by destination or purpose
(machinery place by the owner of a
tenement on it for direct use in an
industry to be carried on therein)
D. Real property by analogy (right of
usufruct, contract for public works)
Land is the best example of immovable
property. However, a shovelful of land is
considered as a personal property, since this no
longer adheres to the soil.
Buildings are considered as immovable property
provided that it is a permanent structure;
regardless whether or not it is built on one’s
own land or on a rented land.
Q: May a house built on rented land be the
object of a mortgage?
A: Yes, in a real mortgage. It may even be the
subject of a chattel mortgage provided that
these two conditions are present: that the
parties to the contract agree, and that no
innocent third party will be prejudiced.
* A building that is sold or mortgaged and which
would immediately be demolished may be
considered as a personal property and the sale
or mortgage thereof would be a sale of chattel,
or a chattel mortgage respectively, for the true
object of the contract would be the materials
thereof.
Property of incorporation (fences, railroad
tracks, scaffoldings, etc.) are considered as
immovable property given that there is an
intention to permanently annex the same.
TREES AND PLANTS
No matter what their size may be, trees and
plants are considered real property, by nature,
if they are spontaneous products of the soil and
by incorporation if they were planted thru
labor. But if they are detached from the land
they will become personal property. Except for
UPROOTED TIMBER = Timber still plays an
integral part for the timberland.
Trees blown by a typhoon still remain part of
the land upon which they rest.
Separation from the immovable object =
personal property
Q: If an owner succeeded to register a land with
trees and plants. The plants and trees also
became his real property as it was still annexed
to land.
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.
For the incorporated thing to be considered real
property, the injury or breakage or
deterioration in case of separation, must be
substantial.
Example: a fixed fire escape stairway, an
aqueduct.
CHARACTERISTICS
1. Cannot be separated from immovable
without breaking or deterioration.
2. Need not to be placed by the owner.
3. Real property by incorporation.
STATUES, RELIEFS, PAINTINGS OR OTHER
OBJECTS FOR USE OR ORNAMENTATION.
- The objects must be placed by the owner of
the immovable property and not necessarily by
the owner of the object for it to become a real
property; otherwise the object will be a
personal property.
- they are immovable property by destination
NOTE: A picture hanging on the wall is a
personal property.
MACHINERY, RECEPTACLES, INSTRUMENTS
Essential Requisites
A. The placing must be made by the owner
of the tenement, his agent, or duly
authorized legal representative.
B. The industry or works must be carried
on in the building or on the land.
C. The machines must tend directly to
meet the needs of said industry
D. The machines must be essential and
principal elements in the industry, and
not merely incidental.
If the machine is still in the building, but is no
longer used in the industry conducted therein,
the machine reverts to the condition of a
chattel.
If the object was placed by the owner by the
immovable property (warehouse) = real
property.
If the object was placed by the tenant to the
property of the owner = personal property.
If the object was placed by the tenant with an
intention to give it permanently to the owner =
real property.
NOTE: The mortgage of a parcel of land
generally includes all future improvements that
may be found on said parcel.
ANIMAL HOUSES, PIGEON-HOUSES, BEEHIVES,
FISHPOND, BREEDING PLACES OF SIMILAR
NATURE
- The animals inside these ‘houses’ are
also considered as real property. Even if
the animals are temporarily outside, if
there is an intention for it to return, it is
still considered as real property.
Temporary bird cages are considered chattel.
Fertilizers must be spread over the land to be
considered as real property.
A tied floating house is considered to be a real
property because the waters where it floats is
an immovable property.
SESSION NOTES:
NOTE: If a transaction involved a personal
property with a value of 5,000 Pesos or less, the
transaction could be done verbally. If the value
exceeds 5,000 Pesos, the transaction must be in
writing.
Acquisitive prescription - an owner gains
possession of a property over time.
—-------------------------------------------------------------
Trees, plants = personal property because it can
be moved from one place to another.
It is considered by provision of law - or by
attachment.
Can you sell the fruit still attached to the tree?
A. Yes. R- Because you are the owner of the
tree.
Can you mortgage the fruit? A. Yes
How do you mortgage a fruit attached to the
land? It is a chattel mortgage. - Under the law,
fruits are yet to be harvested, could be a valid
subject for a chattel mortgage.
The owner must place the statue/painting, for it
to become a real property. = The personality of
the placer is important. IT MUST ALWAYS BE
THE OWNER.
—-------------------------------------------------------------
Painting on the wall = immovable (because the
removal of it will cause deterioration to the
wall)
Accessory follows the principal = the owner will
be the owner of the wall.
Would that machinery (reserve) be subjected to
Real Property Tax? Yes.
If the machineries are found inside, it is
included to the foreclosure
It will be included if it is existing at the time of
foreclosure.
—-------------------------------------------------------------
Public Sale to be valid = notice and publication.
Absence of which, the sale is null and void.

Ruling of Davao Saw Mill - the lessee acted as
the agent of the lessor.
After acquired property - after the REM, those
properties will be considered as immovable
properties by destination. (considered included
to the REM)
In the event of foreclosure - the after acquired
property will not be included.
For the purpose of classification, vessels are
movable. But as for disposal and acquisition,
they are treated as real properties for their
importance to commerce.
—-------------------------------------------------------------
Art 416. - MOVABLE PROPERTY
The following things are deemed to be personal
property:
(1) Those movables susceptible of
appropriation which are not included in
the preceding article; (a fountain
pen;piano; animals)
(2) Real property which by any special
provision of law is considered as
personal; (growing crops for the
purposes of the chattel mortgage law,
machinery placed on by a tenement by
a tenant)
(3) Forces of nature which are brought
under control by science; (electricity,
gas, light, nitrogen)
(4) In general, all things which can be
transported from place to place without
impairment of the real property which
they are fixed. (a portable radio, a
laptop computer, a diploma hanging on
the wall, machinery not attached to the
land)
THREEFOLD TEST TO DETERMINE WHETHER
PROPERTY IS MOVABLE OR IMMOVABLE
A. If the property is capable of being
carried from place to place.
B. If such change in location can be made
without injuring the real property to
which it may in the meantime be
attached.
C. If finally, the object is not one of those
enumerated or included in Art. 415
Incorporeal Movables (not composed by any
matter)
- Patent, Copyright, Intellectual Property
PERSONAL EFFECTS are personal property, but
NOT ALL PERSONAL PROPERTY ARE
“PERSONAL EFFECTS”.
Art 417. - The following are also considered as
personal property:
(1) Obligations and actions which have for
their object movables or demandable
sums.
(2) Shares of stock of agricultural,
commercial and industrial entities,
although they may have real estate.
A right to collect a debt is a personal property
even if the debt has not yet matured; because a
right to collect in the future is already existing..
Money is a personal property; it is a legal
tender when circulated; but considered as a
merchandise if a person tried to smuggle it.
(could be subject to forfeiture)
—-----------------------------------------------------------
Replevin - an action to recover a property.
The right of the mortgagee is considered as a
real right. Because, his right to file an action
arises from a contract or obligation as a result
of a loan, where it is secured by a real estate
mortgage. Since the land is a real property,
therefore the right will also be deemed a real Who can reclassify these properties for public
right. use? Land Management Bureau

Fungible - may be subjected to substitution.
Entrance fee = right by the property owners
near the beach. The fee is for the right of way.
Zamboanga del Norte VS City of Zamboanga
MNWD - Patrimonial (not for everybody; only
for those who can pay)
Patrimonial Property - Properties of public
dominion which is not anymore intended for
public use

22 SCRA 1335 Patrimonial property = subject to ordinary

contract.

If the property is owned by the municipality Public Use - beyond the commerce of man.
(meaning municipal corporation) in its public
and governmental capacity, the property is
public and Congress has absolute control over Co-Owner = 2 person who is the owner of a
it. But if the property is owned in its private or same property.
proprietary capacity, then it is patrimonial and
Congress has no absolute control. The Basic Right of an owner
municipality cannot be deprived of it without
due process and payment of just compensation =right to possess
=right to the fruits
=right to dispose
ART. 423. The property of provinces, cities,
and municipalities is divided into property for Is an oral sale of a real property
public use and patrimonial property.

ART. 424. Property for public use, in Replevin only works for personal property
the provinces, cities, and municipalities,
consists 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. (Stressed for emphasis).

Torrens System - indivisible title of ownership.

Art. 427 - Ownership may be exercised over
If a river is mistakenly included on a title. things or rights.
Remedy - Action for reversion. To exclude from
a title, properties which form part of the Ownership is the independent and general right
property of the state as a property for public of a person to control a thing particularly in his
use. - Office of the Solicitor General possession,enjoyment, disposition and
recovery, subject to no restrictions except those
imposed by the state or private persons,
without prejudice to the provisions of the law.
KINDS OF OWNERSHIP
A. Full Ownership - includes all rights of
the owner
B. Naked Ownership - the right to use and
the fruits has been denied.
C. Sole Ownership - where the ownership
is vested in only one person.
Rights of an owner UNDER THE CIVIL CODE
- Right to enjoy
- Right to dispose
- Right to recover or vindicate
Rights of Owner Under Roman Law
- Jus Possidendi - Right to Possess
- Jus Utendi - Right to Use
- Jus Fruendi - Right to the Fruits
- Jus Abutendi - Right to Consume
- Jus Disponendi - Right to Dispose
- Jus Vindicandi - Right to Recover
ACTIONS TO RECOVER
Recovery of Personal Property
- Replevin
Recovery of Real Property
- Forcible Entry or Unlawful Detainer
- Accion Publiciana
- Accion Reivindicatoria
- Writ of Preliminary Injunction
- Writ of Possession
Replevin- an action or provisional remedy
where the complainant prays for the recovery
of the possession of personal property.
FORCIBLE ENTRY
- a summary action to recover material
or physical possession of real property
when a person originally in possession
was deprived thereof by FORCE,
INTIMIDATION, STRATEGY, THREAT OR
STEALTH. (FISTS)
The action must be brought within one year
from the dispossession.
One year from the last demand
Assesed value
Jus possidendi - independent right to possess of
not required to become an owner to be a
possessor of a property.
Jus Possidendi vs Jus Possessionis
=======================================
DISPUTABLE PRESUMPTION OF OWNERSHIP
- Still can be defeated by superior
evidence.
Applicable for both personal and real property.
Actual Possession + Claim of Title = Presumption
of Ownership
Would this apply for a lessee? No.
ACTION TO RECOVER
Elements
a. Identity
Tax Declaration - Persuasive evidence of
ownership.
Art. 437 - The owner of a parcel of land is the
owner of its surface and of everything under it,
and he can construct thereon any works or
make any plantations and excavations which he
may deem proper, without detriment to
servitudes and subject to special laws and
ordinances. He cannot complain of the
reasonable requirements of aerial navigation.
SURFACE RIGHT OF A LAND OWNER
Surface Right - if a person owns a piece of land,
it is understood that he also owns its surface,
up to the boundaries of the land, with the right
to make thereon allowable constructions,
plantings and excavations.
Art. 438 - Hidden treasure belongs to the
owner of the land, building, or other property
on which it is found.
Nevertheless, when the discovery is made on
the property of another, or of the State or any
of its subdivisions, and by chance, one-half
thereof shall be allowed to the finder. If the
finder is a trespasser, he shall not be entitled to
any share of the treasure.
If the things found to be of interest to science
or the arts, the State may acquire them at their
just price, which shall be divided in conformity
with the rule stated.
The hidden treasure may be found on:
a. Land
b. Building
c. Or other property
If X finds a hidden treasure in his house, he
alone owns the treasure. If he is married, the
treasure belongs to the conjugal partnership.
Note: For the finder to be entitled to one-half,
the discovery on another’s property must be
“by chance.”
No agreement in the division - “one-half”
agreement.
PROBLEM
PERMITTED TREASURE HUNTING
A believed that B’s land contained hidden
treasure, B gave permission and A discovered
the treasure. How much of the treasure should
go to A?
The treasure must be divided equally.
Equity demands the equal sharing for it cannot
be denied that had the landowner not given his
permission, the treasure would not have been
found; and conversely, had there not been a
seeker of the treasure, the same would not
have been discovered.
TREASURE HUNTING WITH PERMISSION
X is the owner of a land where a hidden
treasure is believed to be buried. Y, who owns a
mechanical device used in detecting hidden
treasure, was given permission by X to use the
device on his land. Y discovered a treasure. To
whom the treasure should belong?
The treasure belongs to BOTH (50-50). This is so
even if the search for the treasure was clearly a
deliberate one. Firstly, it is difficult to find
“hidden” treasure without a hunt for it, for in
many cases the same is buried many feet
beneath the earth. Secondly, what is the use of
asking permission, if after all the treasure would
go, all of it, to the proprietor of the land?
Thirdly, permission is required, otherwise the
finder would generally be a trespasser, who
gets NOTHING
CONJUGAL TREASURE HUNTING
A husband by chance discovered hidden
treasure on the land of his wife. Who owns the
treasure?
A: The half pertaining to the husband as finder
belongs to the conjugal partnership. The half
pertaining to the wife as proprietor also belongs
to the conjugal partnership.
RIGHTS OF A USUFRUCTUARY OVER THE
HIDDEN TREASURE FOUND ON LAND HE IS
USING.
If he found the treasure, he gets half as finder;
but if another person found it, such person gets
half as finder and the naked owner gets the
other half as owner.
The law says: “With respect to hidden treasure
which may be found on the land or tenement,
the usufructuary shall be considered a
stranger.”
THE FINDER IS A PAID LABORER OF THE
LANDOWNER
If the paid laborer discovered the treasure by
chance, he gets half. If he was employed
precisely to look for the treasure, he will get
nothing insofar as the treasure is concerned.
But he will receive his wages or salary.
TREASURE FOUND UNDER GOVERNMENT
PROPERTY
If hidden treasure is found by chance under a
municipal plaza, who owns the treasure?
Half goes to the finder and the other half to the
municipality. However, if the hidden treasure is
scientifically or artistically valuable, the finder's
half has to be given to the municipality or state,
who in turn will give him a just price therefor.
NOTE: A Trespasser is not entitled to any share
of the treasure.
Treasure Hunts A treasure hunt is an express
search for hidden treasure. An owner of land
may for example contract with a group of men
who would look for the treasure. Should
discovery be made, the actual finders will not
necessarily be entitled to half. Instead, they will
be given what has been stipulated in the
contract.
Treasure - any hidden and unknown deposit of
money, jewelry, or other precious objects, the
lawful ownership of which does not appear.
Requisites of Hidden Treasure
a. Hidden and unknown deposit.
b. Consists of money, jewelry or other
precious objects.
c. Their lawful ownership does not
appear.
Doctrine of Ejusdem Generis - the phrase
“other precious objects” should be understood
to refer to those of the same class as money or
jewelry, and should not therefore include
property embedded in the soil, or part of the
soil, like minerals.
Tomb = not included ; Objects inside the tomb =
included (Other Precious Objects)
A lawful ownership must not appear.
If an inherited books contained a money bill, it
is not considered as a hidden treasure, because
its lawful ownership appeared.
If the true owner has not yet abandoned the
property, it is clear that the same cannot be
acquired by “occupation” and cannot properly
be considered “hidden treasure.”
DEATH OF THE LAWFUL OWNER
If the ownership of the treasure is known, but
the owner is already dead, the same will not be
considered “hidden treasure,” and must
therefore go to the owner’s rightful heirs. If the
only legal heir left is the state, the treasure will
appertain to the State’s patrimonial property.

Art. 440 - The ownership of property gives the
right by accession to everything which is
produced thereby, or which is incorporated or
attached thereto, either naturally or artificially.
ACCESSION - is the right of a property owner to
everything which is:
a. Produced thereby
b. or which is incorporated or attached
thereto, either naturally or artificially
which in turn is divided into:
i. Natural Accession
ii. Artificial Accession
Accession is the right of an owner of a thing to
the products of said thing as well as to
whatever is inseparably attached thereto as an
accessory
> regarded as an additional to what said person
already possesses, said additional property
being the result of a natural increase, like land,
by deposit of a river, or houses, when built on
one’s own land; or the young of animals.
CLASSIFICATION OF ACCESSION
1. Natural Fruits
2. Industrial Fruits
3. Civil Fruits
a. Natural Fruits - They are the spontaneous
products of the soil, and the young and other
products of animals. (Art. 442) Examples: trees
that naturally grow. Young and other products
of animals.
b. Industrial Fruits - Industrial fruits are those
produced by lands of any kind through
cultivation or labor. (Art. 442) Examples: corn
and other crops, rice, other products that are a
result of cultivation and intervention of human
labor.
c. Civil Fruits -They are the result of a juridical
relation such as the rents of buildings, the price
of leases of lands and other property and the
amount of perpetual or life annuities or other
similar income. (Art. 442)
Alluvium = slow
Avulsion = fast
Accession is not a mode of acquiring ownership.
Accession presupposes a previously existing
ownership by the owner over the principal. One
of the attributes or characteristics which will
make up the concept of dominion or ownership.
Right to accession is generally automatic.
In general, the right to accession is automatic
(ipso jure), requiring no prior act on the part of
the owner of the principal. (Villanueva v.
Claustro, 23 Phil. 54). A good example is in the
case of a landowner over whose land a river
now flows. He is ipso facto the owner of the
abandoned river bed in proportion to the area
he has lost.
REASON BEHIND ACCESSION
A. Accession Discreta (to the fruits) -
justice, pure and simple, for one who
owns a thing should justly enjoy its
fruits.
B. Accession Continua (Attachment or
Incorporation) - economic convenience
is better attained in a state of single
ownership than in a co-ownership.
NOTE:
A. In an action to recover paraphernal
property of the wife, the intervention of
the husband is not needed, and
therefore the husband is not a
necessary party. Any property aside
from the paraphernal property, the
husband must join in the action first
because he is a co-owner of said fruits
and secondly because he is the
administrator of the conjugal
partnership.
 B. Action to recover a property unlawfully
in the possession of another, damages
may incur.
INSTANCES WHEN OWNER OF LAND DOES NOT
OWN THE FRUITS
A. Possessor in good faith of the land.
B. Usufructuary
C. Lessess gets the fruits of the land.
D. In the contract of antichresis.
By the contract of antichresis the creditor
acquires the right to receive the fruits of an
immovable from his debtor, with the obligation
to apply them to the payment of the interest, if
owing, and thereafter to the principal of his
credit.
BAR QUESTION - To whom does the offspring
of animals belong when the male and female
belong to different owners? The owner of the
female is also considered as the owner of the
young.
If the female animal gave birth while being
leased, the lessee owns the young; given that
the contract of lease is onerous.
If the animal was merely borrowed, the owner
of the young will be the original owner.
ART 443 - He who receives the fruits has the
obligation to pay the expenses made by a third
person in their production, gathering and
preservation.
A is an owner of the land. The land born fruits.
B harvested the fruits in bad faith. With this, A
still owned the fruits but A must reimburse B’s
expenses.
If the planter is in good faith, the fruits belong
to him. No reimbursement is required.
CHARACTERISTICS OF THE EXPENSES
(a) They must have been used for production,
gathering, or preservation, not for the
improvement of the property.
(b) They must have been necessary, and not
luxurious or excessive. Indeed, they must be
commensurate with those ordinarily
necessitated by the product. (See 3 Manresa
187-188)
REASON FOR OVER EXPENSES
(a) the law makes no exception or distinction;
(b) the same thing would have happened had
the owner been also the planter;
(c) he who gets expected advantages must be
prepared to shoulder losses.
ANNUAL CROPS - are deemed existing the
moment their seedlings appear from the
ground, although the grains have not yet
actually appeared.
PERENNIAL CROPS - are deemed to exist only
when they actually appear on the trees.
Note: Young animals are already considered
existing even if still in the maternal womb.
Rules for Civil Fruits as Distinguished from
Natural and Industrial Fruits
(a) Civil fruits accrue daily (Art. 544) and are
therefore considered in the category of
personal property; natural and industrial fruits,
while still growing, are real property.
(b) Civil fruits can be pro-rated; natural and
industrial fruits ordinarily cannot. (See Art. 544)
PRINCIPLES OF ACCESSION CONTINUA
(a) To the owner of the principal (the land for
example) must belong also the accessions, in
accordance with the principle that “the
accessory follows the principal’’ (“accesio cedit
principali’’).
(b) The union or incorporation must, with
certain exceptions, be effected in such a
manner that to separate the principal from the
accessory would result in substantial injury to
either.
(c) He who is in good faith may be held
responsible but he should not be penalized.

(d) He who is in bad faith may be penalized.

(e) No one should enrich himself unjustly at the

expense of another.

(f) Bad faith of one party neutralizes the bad

faith of the other so both should be considered
in good faith.

The owner of the land is also the owner of

whatever is built, planted or sown thereon.

When the costs of the improvement made by

the conjugal partnership and any resulting
increase in value are more than the value of the
property at the time of the improvement, the
entire property of one of the spouses shall
belong to the conjugal partnership, subject to
reimbursement of the value of the property of
the owner-spouse at the time of the
improvement; otherwise, said property shall be
retained in ownership by the owner-spouse,
likewise subject to reimbursement of the cost
of the improvement.
ART 546 - Necessary expenses shall be refunded RIGHTS OF A POSSESSOR AS TO THE
to every possessor; but only the possessor in NECESSARY EXPENSES
good faith may retain the thing until he has
been reimbursed therefore. If in Good Faith
1. Refund
Useful expenses shall be refunded only to the 2. Retain premises till paid
possessor in good faith with the same right of
retention, the person who has defeated him in If in Bad Faith
the possession having the option of refunding 1. Refund but NO RIGHT OF RETENTION
the amount of the expenses or of paying the as penalty.
increase in value which the thing may have
acquired by reason thereof. If the possessor is in good faith, he/she must file
a counterclaim for the refund of necessary and
NECESSARY EXPENSES - Those without which useful expenses.
the thing would physically deteriorate or be
lost; hence, those made for the preservation of USEFUL EXPENSES - Those that add value to the
the thing. property or increase the object’s productivity,
or useful for the satisfaction of spiritual and
EX: religious yearnings, or give rise to all kinds of
A. Incurred for cultivation, production, and fruits.
upkeep.
B. Those made for necessary repairs of a RIGHTS OF A POSSESSOR AS TO THE USEFUL
house. EXPENSES

Ordinary Repairs do not increase the thing’s If in GOOD FAITH

value, rather, they merely prevent the things 1. Right to REIMBURSEMENT of either the
from being useless. amount spent or the increase in value
at OWNER’S OPTION.
Repair - putting back into the condition in which 2. Right of RETENTION till paid
it was originally, and not an improvement in the 3. Right of REMOVAL provided no
condition thereof by adding something new substantial damage or injury is caused
thereto. to the principal, reducing its value
UNLESS the winner chooses to
A house constructed on land possessed by a REIMBURSE
stranger. - NOT NECESSARY
If in BAD Faith
Land taxes are not necessary expenses, for they - NOT ENTITLED TO ANY RIGHT. but can
are needed, not for preservation of the land remove the improvement provided that
itself; but for its continued possession. Failure there will be no injury.
to pay results not in destruction, but forfeiture.
Reason:
Unnecessary improvements on a parcel of land 1. The law OMITS his right to useful
purchased at a sheriff’s auction sale. expenses.
2. Accretions states that a builder in bad
 faith loses whatever is build without
payment of any indemnity.

ALLUVIUM
- It is the soil deposited or added to the
lands adjoining the banks of rivers, and
gradually received as an effect of the
current of waters.
- By law, the accretion is owned by the
owner of the estate fronting the river
bank (riparian owner)

Alluvium VS Accretion
- the process whereby the soil is
deposited while alluvium is the soil
deposited on the estate fronting the
riverbank.

REQUISITES OF ALLUVIUM
- The deposit should be gradual and
imperceptible.
- The cause is the current of the river.
- Current must be that of a river.
- The river must continue to exist.
- The increase must be comparatively
little. Must not exceed over 150%.

Art. 450 - The owner of the land on which
anything has been built, or sown in bad faith
may demand the demolition of the work, or
that the planting or sowing be removed, in
order to replace things in their former condition
at the expense of the person who built, planted
or sowed; or he may compel the builder or
planter to pay the price of the land, and the
sower the proper rent.
Art. 451 - In the cases of the two preceding
articles, the landowner is entitled to damages
from the builder, planter or sower.
Remedies if a person built a house in bad faith
on the land of another person.
- Get the house without paying any
indemnity for its value or expenses.
(Obligation to pay Necessary Expenses
for the preservation of the land.)
- Demand the demolition of the house at
the builder’s expense, PLUS damages.
- Compel the builder to buy the land,
whether or not the value of the land is
considerably more than the value of the
house.
If a buyer introduces improvements on the
property after filing a suit against him for the
annulment of the sale, he becomes a builder in
bad faith without any right to reimbursement.
Gathered and Growing Crops
A planted crops on a land knowing fully well
that the farm doesn’t belong to him.
- If the crops are already gathered, A
must return the value of the crops or
the crops themselves minus the
expenses essential for their production,
gathering and preservation.
- If the crops have not yet been gathered,
the planter can forfeit them in favor of
the owner of the land, without any right
to indemnity. (Due to the principle of
accession.)
Art. 452 - The builder, planter or sower in bad
faith is entitled to reimbursement for the
necessary expenses of the preservation of the
land.
Art. 455. If the materials, plants or seeds
belong to a third person who has not acted in
bad faith, the owner of the land shall answer
subsidiarily for their value and only in the event
that the one who made use of them has no
property with which to pay.
This provision shall not apply if the owner
makes use of the right granted by Article 450. If
the owner of the materials, plants or seeds has
been paid by the builder, planter or sower, the
latter may demand from the landowner the
value of the materials and labor.
PARTIES INVOLVED
- Landowner
- Builder
- Owner of the Materials
Owner of the Materials in Bad Faith
- Loses all rights to be indemnified -
consequential damages if the materials
are of an inferior quality.
IF IN GOOD FAITH
- He is entitled to reimbursement from
the builder principally, since it was the
builder who FIRST made use of the
materials. If the builder is insolvent, the
landowner is subsidiarily liable, if he
makes use of the materials.
Conditions
1. Purchase the land.
2. Demolish the construction, the
landowner does not make use of the
materials, hence, he cannot be held
subsidiarily liable.
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