PROPERTY SYLLABUS Articles 414-763 PROPERTY, OWNERSHIP, AND IT’S MODIFICATION I. A. Classification of Property ‘Where did the word property originate? Latin propius meaning belonging to belonging to one or one’s own Concept of property extended only to those things which are already possessed and found in the possession of man. The concept of property was inseparable from the relation which the object has with the person exercising dominion over it. 2. Is property the same as things? Under the New Civil Code, the word “thing” is used as a synonym for the word "property." However, it must be pointed out that, technically, “thing” is a broader term because it includes both appropriable and non-appropriable objects. The moon and the stars are "things" but they are, technically speaking, not “property” because they are neither capable of appropriation nor are they under the appropriation of men. Forces of nature are generally "things" but, if brought under the control of human beings, they become "property." For example, lightning is a thing until humans capture it to produce electricity in which case it becomes "property. 2. What is the definition of property under the Civil Code? ‘The definition of property under the Code is not confined to things that are already appropriated or possessed by man but also extends to those objects susceptible of appropriation as provided in Article 414. Res nullius-belongs to no one Res commones- belongs to everyone Res alicujus- belongs to someone 4. Requisites: i. Susceptibility to appropriation Not all things may be considered property. Under Article 414, itis essential that a thing must be susceptible of appropriation to be considered property. Thus, things which cannot be subjected to human control due to sheer physical impossibility cannot be considered property. Examples would be the sun, the stars, the oceans and seas, Ordinarily, forces of nature (rain, lightning, sunshine) are not property because of impossibility of appropriation in their diffused state. Once brought under human control through the help pf science, then the same may be considered property. (electricity, electricity from windmills, water, solar energy) Distinction between things and objects outside the commerce of man: Things outside the commerce of man cannot be the object of contracts but they are not necessarily disqualified from being property. Thus, properties of the public dominion belonging to the State are necessarily property but they cannot be made the object of a contract. ii, Utility= usefulness; serves as a means to satisfy human needs iii. Substantivity or individuality=has an autonomous and separate existence atB. Classification of Property 1. Classification of Property tinder Book Il of the Ci 2. Importance of the Classification ill Code ‘The classification of property into immovable and movable is based on the nature of the thing itself. The most important point of this classification is the legal consequences that flow from it. 1. For applying the rules of acquisitive prescription (Aequisitive Prescription is a method of acquiring property by meeting statutory Fequirements of continuous possession; usucaption) a. Ownership over movables: i. Uninterrupted possession for four years in good faith ii, Uninterrupted possession of eight years without need of any condition b. Ownership and other real rights over immovables: i. Ordinary prescription through possession of ten years (Article 1134 Ownership and other real rights over immovable Property are acquired by ordinary prescription through Possession of ten years. ii, Extraordinary prescription: Article 1137. Ownership and other real rights over immovables also prescribe through uninterrupted adverse possession thereof for thirty years, without need of title or of good faith. 2, Indetermining the propriety of the object of the contracts of pledge, chattel mortgage, real estate mortgage: i. Only movables can be the object of the contracts of pledge and chattel mortgage. Only immovables can be the object ofa real estate mortgage contract. Should the parties execute a real estate mortgage over real property, the same is null and void and the registration of the same in the Registry of Property does not validate the same insofar as third parties are concerned. 3. For determining the formalities of a donation: i, If the value of the personal property donated exceeds P5,000.00, the donation and the acceptance must be in writing, otherwise, the donation is void. (Article 748. The donation of a movable may be made orally or in writing. An oral donation requires the simultaneous delivery of the thing or of the document representing the right donated. If the value of the personal property donated exceeds five thousand esos, the donation and acceptance shall be made in writing, Otherwise, the donation shall be void. ji, In order that the donation of an immovable may be valid, the donation and acceptance of the same must be in a publicinstrument, (Article 749. In order that the donation of an immovable may be valid, it must be made in a publie document donated and the value of the charges the done must satisfy. ‘The acceptance may be made in the same deed of donation or ion a Separate document, butitshall not take effect unlessitis done during the lifetime of the donor. If the acceptance is made in a separate instrument, the donor shall be notified in an authentic form, and this. ‘step shall be noted in both. instruments, 2|Page4 Inextrajudicial deposit: Article 1966. Only movable things may be the object ofa deposit Article 1967. An extrajudicial deposit is either Voluntary or necessary: 5 In-eases of theft, robbery, and usurpation: i. Only personal property can be the object of theft and robbery. ji, The crime of usurpation defined in Article g12 of the RPC can be committed only with respect to real property 6. For purposes of determining venue in remedial law: i. “If the action affects title to or possession of real property or an interest therein this isa “real action” that must be filed in the proper court wherein the property involved, ora portion thereof is situated. (Rule IV, Section 1 Rules of Civil Procedure, ROC) All other actions referred to as a “personal action” may be ‘commenced and tried where the plaintiff or the defendant resides, at the election of the plaintiff. (Rule IV, Section 2 Rules of Civil Procedure, ROC) II, Immovable Property 1. The law does not give a definition to immovable property 2. Kinds of immovable property- NIDA. Nature Incorporation Destination Analogy or law-par. 10 Article 415: Contraets for publie works and servitude and other real rights over immovable property. (road repair, roof construction) Public servitudes are created in favour of the general public and are not registered in favour of a specific person, legal entity or other immovable Property. An example of such servitude would be a public road A. Real property under Art. 415 (1) 1, Lands and Roads- immovable thus by nature they are considered as immovable or real property +2, Buildings are considered immovable by incorporation -adherence to the soil 1ot one superimposed on the soil -Bicerra vs. Teneza (6 SCRA 649, 1962) Ladera vs. Hodges-(G.R. NO. 8027-R, VOL. 48, NO. 12, 0.G. 5374, SEPTEMBER 23, 1952) ‘3. Buildings are always immovable while there is a holding tothe effect that a building that is merely superimposed on the soil or is sold for immediate demolition may be considered as movable or Personal property the rule only has reference toa true building or one that is not superimposed on the soil. 4. Article 2127 on mortgage extends the effects of the real estate mortgage to accessions and accessories found on the property when the secured obligations become due. ~As a general rule, ownership of the accessions also belong to the mortgagor as the owner of the principal as a requisite of a valid real estate is that the mortgagor be the absolute owner of the encumbered property. A building may be mortgaged apart from the land itself. That would be real estate mortgage of the building and the building would still be 3|Pageconsidered immovable property even if dealt with separately and apart from the land. 5. Building is still considered immovable even if bui another person. on land owned by 6. Doctrine of estoppel- (Navarro vs. Pineda and Tumalad vs. Vicencio) -Chattel mortgage contract was executed between the parties involving a house. Later the mortgagors questioned the validity of the chattel mortgage on the ground that the house is real and not chattel property and chattel mortgage contract can only be executed over personal property. Thus the execution of the chattel mortgage is invalid and a nullity. Doctrine of estoppel not only prohibits a party from assuming inconsistent positions but also precludes him from repudiating an obligation voluntarily assumed after having accepted benefits under it ~The parties are estopped from denying the existence of the chattel mortgage which between them must be upheld. 7- Constructions of all kinds adhered to the soil. + The steel towers or supports in question, do not come within the objects mentioned in paragraph 3, because they do not constitute buildings or constructions adhered to the soil. They are not construction analogous to buildings nor adhering to the soil. As per description, given by the lower court, they are removable and merely attached to a square metal frame by means of bolts, which ‘when unscrewed could easily be dismantled and moved from place to place. They can not be included under paragraph 3, as they are not attached to an immovable in a fixed manner, and they can be separated without breaking the material or causing deterioration upon the object to which they are attached. Each of these steel towers or supports consists of steel bars or metal strips, joined together by means of bolts, which can be disassembled by ‘unscrewing the bolts and reassembled by screwing the same. These steel towers or supports do not also fall under paragraph 5, for they are not machineries, receptacles, instruments or implements, and even if they were, they are not intended for industry or works on the land. Petitioner is not engaged in an industry or works in the land in which the steel supports or towers are constructed. (Board of Assessment Appeals vs. Meralco, 10 SCRA 68) ‘* The pipes are embedded in the soil and are firmly and solidly welded together so as to preclude breakage or damage thereto and prevent leakage or seepage of the oil. The valves are welded to the pipes so as to make the pipeline system one single piece of property from end toend. In order to repair, replace, remove or transfer segments of the pipeline, the pipes have to be cold-cut by means of a rotary hard- metal pipe-cutter after digging or excavating them out of the ground where they are buried. In points where the pipeline traversed rivers or creeks, the pipes were laid beneath the bed thereof. Hence, the pipes are permanently attached to the land. (MERALCO. ‘SECURITIES INDUSTRIAL CORPORATION vs CBAA G.R. ‘No. L-46245 May 31, 1982) For the item attached or incorporated on the property to be considered an immovable, itis not necessary that the same was done by the owner. 4|PageB, Real property under Article 415 (2)- Trees, plants and growing fruits- immovable by incorporation and they form an integral part of the immovable. -once cut or uprooted for firewood, they become movable property, except when the timber constitutes a natural product of the tenement. -Growing fruit-General Rule: Real property while attached to the soil Ungathered fruit is personal property for 1. Sale of whole or part of the crops 2. For purposes of attachment and execution under the Chattel Mortgage Law (Sibal vs. Valdez, 50 SCRA 512) ©, Real property under Article 415 (3)- Everything attached to an immovable in a fixed manner. + Attachment cannot be separated from the immovable with out breaking the material or deterioration of the object. ‘+ Need not be attached by the owner. © Intent of the parties may prevail due to estoppel. Ifthe parties agree to treat them as chattel that intention prevails. D. Real property under Article 415 (4)-Statues, reliefs, paintings or other objects for use or omamentation. ‘+ Real properties by destination + Placed by owner or his agent and placed in a manner that reveals the intention to attach them permanently to the tenement. E. Real property under Article 415 (5)- Machineries, receptacles, instruments or implements. «Immovable by destination «Immovable by reason of their purpose ‘+ They must tend to directly meet the needs of the industry or work. + If the parties treat the machineries as chattels, they are bound by their agreement based on the principle of estoppel (Tsai vs. CA, 366 SCRA 324 (2001) + Davao Sawmill Co. vs. Castillo, 61 Phil 709, machineries were placed by the lessee on the leased premises that was operated as a sawmill ‘© Must be placed by the owner or his agent ‘+ Burgos, Sr. vs. Chief of Staff, AFP 133 SCRA 800 (1984) * They must be Essential and Principal elements of the industry or Works-immobilized by destination + Mindanao Bus Company vs. City Assessor and Treasurer, 6 SCRA 197 (1962) maintenance and repair equipment/rolling equipment repaired or serviced in a shop belonging to another. F. Real property under Article 415 (6)- Animal Houses, Pigeon Houses ete. Immobilized by destination Placed by the owner. ‘¢ _Ifnot placed by the owner, still immovable if construction is attached to the soil and of a permanent character. + Animals inside these structures are also considered immovable except under the second paragraph which provides “real property which by any special provision of law is considered personalty. If stolen, considered personalty under the RPC. 5|PageG. Real i li ae FioPerty under Article 415 (7)- Fertilizers that are actually used * Immovable by destination, 415(4) to 415 (7)-immobilized by destination Be einl Property under Article 415 (8)- Mines, quaries, slag dump, . Considered immovable while the matter remains unsevered from the soil, ‘* Once separated, considered personalty. ~ A place of deposit for the slag or cinder which results from a metallurgical operation or an ore I. Real property under Article 415 (9)- Docks and structures + Power barges (FELS Energy Inc. vs. Province of Batangas, G.R. No. 168557, Feb. 16, 2007) J. Real property under Article 415 (10)- Contracts for publie works and servitudes ~ Rights as property- Real right as opposed toa personal right ~ Real right- enforceable against the whole world ~ Personal right- enforceable against particular person(s) ‘+ Ifthe subject matter of a real right is a real property, then the real right is a real property. A real estate mortgage is a real right and a real property by itself. ‘* If the subject matter of a real right is a personal property, then the real right is a personal property. Example: A chattel mortgage. IIJ. Movable property also known as personal property/personalty 1. No definition under the law ‘2, What things are considered movable property in general? + In general, all things susceptible of appropriation that are not included in Article 415 are classified as “movable”, “personal “property. * Business or interest in business is considered personalty not being included in the enumeration in Article 415. 3. What realty are considered personality by special provision of law. ‘* RPC, animals in animal houses under Article 415 (6) and Article 416 (2) A. Forces of nature- Forces of nature in their original state are not subject of appropriation. ‘+ Article 416(3) Forces of nature brought under the control of man through the help of science like gas and electricity. B. Things which can be transported ‘* All things which can be transported from place to place without impairment of the real property to which they are attached and not included in the enumeration in Article 415 are “personal” or “movable property. 6lPace*B Example. Machineries for use in an industry or works placed by Someone other than the owner, in a fixed manner in the tenement but which can be removed without causing substantial injury to it are considered personal property. C. Obligations and Chose in action The right to bring a lawsuit to recover chattels, money, ora debt tensive term used lo deseribe a property right or th iething thal can only be obtained or enforced through inetion lo chose in passession, which refers | in one person but possession is held b A chose inaction ia compr Fight to possesion of so Tegal aetion Its used in cont eases where tle looney oF proper yanother, ae ‘A chose in action is personal property. Its an intangible or incorporeal right. Every obligation ereates a personal righton the part of the creditor to demand its fillment. The right to demand the performance of the obligation is property. Since the right isa personal right, the right is classified as personal property. Examples of a chose in action are the right of an heir to interest in the estate of h or her decedent; the right to sue for damages for an injury; and the right of an ‘employee to unpaid wages. D. Consumable vs. non-consumable Aconsumable is a movable property which cannot be used in a manner appropriate to its nature without itself being consumed. Non-consumable: a thing (as land, furniture, or shares of stock) that may be enjoyed without altering its substance except for natural deterioration over time. S. Fungible vs. non-fungible- (of goods contracted for without an individual specimen being specified) able to replace or be replaced by another identical item; mutually interchangeable. Consumable distinguished from a fungible- DISTINCTION BETWEEN FUNGIBLE AND CONSUMABLE THINGS ‘+ Whether a thing is consumable or not depends upon its nature. + Whether a thing is fungible or not depends upon the intention of the parties. ‘A consumable is a movable which cannot be used in a manner appropriate to its nature without it being consumed. Corporeal property is a legal right of ownership over material things that a person has E, Shares of stock «They are personal property even if they may be over real estate. IV. PROPERTY INRELATION TO THE PERSON TO WHOM IT BELONGS Public Dominion and Private Ownership “Article 419: Property is either of public dominion or of private ownershi From the viewpoint of ownership, the Civil Code classifies properties: 1. Inrelation to the State: a. Properties of public dominion b. Patrimonial properties 2. Inrelation to the political subdivisions: a, Publiedominion- for public use b. Patrimonial properties 7|Page3. In relation to persons and entities than the State or its political subdivisions: that of private ownership. Quiz 1: Articles 414-465 Quiz 2: Articles 466-519 Quiz g: Articles 520-565 Quiz 4: Article 566-612 Quiz 5: Articles 613-657 Quiz 6: Articles 658-711 Quiz 7: Articles 712-759 Quiz 8: Articles 760-773 8[PageProperty of State 1. Kinds of property of public dominion pr a, ‘Those that are intended for publie use. sme public s tended for s b. Those that are Those intended for the development of 2. “Public Dominion” as referring to public ownersh What isa bundle of rights in a piece of property called? The term “bundle of rights” describes the set of legal rights associated with ownership of real property, ‘The “bundle” is made up of five different rights: the right of possession, the right of control, the right of exclusion, the right of enjoyment and the right of disposition I. Ownership mm. 9|Page