FUNDAMENTALS OF LAND

OWNERSHIP
By Atty. Rex Enrico DV Cruz III
Urban Institute of Real Estate
Classification:
Immovable vs Movable
 Immovable (REAL PROPERTY)
 By Nature – those that cannot be moved from place to place
 By Incorporation – those which are attached to an immovable in such
a manner as to form an integral part thereof
 By Destination – those which are placed in an immovable for the use,
exploitation or perfection of such immovable
 By Analogy – those which are considered immovable by operation of
law
 Movable (PERSONAL PROPERTY)
 When a property is not included in the enumeration of
immovable properties.
Classification:
Public Dominion vs. Private Ownership
 Land of Public Dominion
 Intended for Public Use
 Intended for Public Service
 Intended for the development of the national wealth
 Private Land
 Owned by Private Persons (Private Prop.)
 Owned by the State in its private capacity
 Patrimonial Properties
Regalian Doctrine
 All lands of whatever classification and other natural
resources not otherwise appearing to be clearly within
private ownership belong to the State.
 Unless there is a reclassification of the land as ALIENABLE
or DISPOSSABLE, and subsequently alienated by the State, it
remains part of the PUBLIC DOMAIN.
 Prescription will not run against land of public dominion.
Classification of Public Lands
 Agricultural
 Forest or Timber
 Mineral
 National Parks

All lands of the public domain are owned by the

State. With the exception of agricultural land, all
other natural resources shall not be alienated.
Not Open to Disposition
 Those reserved for public or quasi-public use
 Those appropriated by the Government
 Those private property under the IPRA Law
 Those land of public domain 18* in slope or over
 Submerged Lands
Kinds of Agricultural Land of the
Public Domain
 Agricultural Land
 Residential Land
 Commercial Land
 Industrial Land
 Reclaimed Land
 Foreshore Land
 Marshy Land
Board Question:
 What land of the public domain is alienable and disposable?

A. Forest and Timber Land

B. National Parks
C. Forfeited / Escheated Lands
D. Abandoned private lands
E. Agricultural Lands
Board Question:
 In Philippine laws, the equivalent of real estate is:

A. Personalty
B. Chattel
C. Realty
D. Land
E. Immovable property
Board Question:
 Patrimonial property of the State is that which it owns in
what capacity?

A. Sovereign
B. Ancestral
C. Private
D. Stewardship
E. Public
LAND OWNERSHIP
 The independent right of exclusive enjoyment and control of
a thing for the purpose of deriving therefrom all advantages
required by the reasonable needs of the owner and the
promotion of the general welfare but subject to the
restrictions imposed by law and the rights of others.
Kinds of Land Ownership
 Extent of Ownership
 Full Ownership – all rights of an owner
 Naked Ownership – right to use and fruits belong to another

 Number of Owners
 Sole Ownership – one person
 Co-Ownership – two or more persons
Rights Included in Land Ownership
(Bundle of Rights)
 Right to Use (Jus Utendi)
 Right to Possess (Jus Possidendi)
 Right to the Fruits (Jus Fruendi)
 Right to Abuse/Consume (Jus Abutendi)
 Right to Dispose (Jus Disponendi)
 Right to Vindicate / Recover (Jus Vindicandi)
Board Question
 ENUMERATE AT LEAST FIVE (5) RIGHTS OF REAL
PROPERTY OWNER.

 The bundle of right which is inherent in ownership without

any limitation other than those imposed by law or contract is:
A. Free Estate
B. B. Lease Fee Estate
C. C. Fee Simple
D. Tenancy in Common
E. E. None of the above
Board Question:
 The bundle of rights theory also means:

A. Rights of land beneficiary

B. Rights in fee simple
C. Rights of vendee-a-retro
D. Rights of buyer
E. Rights of vendor
Limitation on Land Ownership
 Inherent Powers of the State
 Police Power
 Power of Taxation
 Power of Eminent Domain
 Imposed By Law
 Easements
 PD 957
 Escheat
 Imposed by Agreement
 Imposed by the Grantor
Board Questions:
 What are the inherent powers of the State?
 Police Power: The right of the State to regulate and
restrict personal property right for a common welfare.
 Power of Taxation: The inherent power of the State to
raise income or revenue to defray necessary
governmental expenses for a public purpose.
 Power of Eminent Domain: The superior right of the
State to take certain properties under certain
condition after payment of just compensation.
Board Question:
 When a property owner dies without any heirs to inherit,
which of the following inherent powers of the state is applied
on the property?
A. Expropriation
B. Escheat
C. Eminent Domain
D. Taxation
E. Police Power
Board Question:
 The inherent rights of the states that restricts rights, except:
A. Eminent Domain
B. Taxation
C. Escheat
D. Expropriation
E. Police Power
Board Question:
 The legal right of the State to acquire property of a decedent
who died without a will and without heirs is referred to as:

A. Dedication
B. Eminent Domain
C. Devise
D. Escheat
E. Police Power
Board Question:

 Which of the following statement is not true:

A. Full ownership equals naked ownership plus usufruct
B. Usufruct equals naked ownership plus full ownership
C. Naked ownership equals full ownership minus usufruct
D. Usufruct equals full ownership minus naked ownership
Board Question:
 True or False. Escheat is the automatic conveyance of the real
property to the State upon the owner’s death due to the
absence of a will, heirs or failure to pay taxes.
 True or False. The State is exercising police power when it
expropriates land for public use upon payment of just
compensation.
 True or False. Eminent domain is the reversion of the
property to the State when there are no qualified heirs.
Board Question:
 _____________ is a reversion of the property to the State
when there are not qualified heirs.

 ______________ is the money paid by the State when a

public agency takes private property and converts it for
public use.
Modes of Acquiring Land Ownership
 Public Grant
 Private Grant
 Involuntary Grant
 Inheritance
 Reclamation
 Accretion
 Adverse Possession or Prescription
Public Grant: Free Patent
 Qualifications - Any Filipino citizen who is an actual occupant
of a residential land may apply for a Free Patent Title under this
Act, provided that in highly urbanized cities the land should not
exceed two hundred (200) square meters; in other cities it should
not exceed five hundred (500) square meters; in first class and
second class municipalities it should not exceed seven hundred
fifty (750) square meters; and in all other municipalities it should
not exceed one thousand (1000) square meters; provided further,
that the land applied for is not needed for public service and/or
public use.
Public Grant: Homestead Patent
 Homestead Patent is a mode of acquiring alienable and disposable lands of
the public domain for agricultural purposes conditioned upon actual cultivation
and residence.
Where should Homestead Application be filed?
A Homestead application should be filed at the DENR-Community
Environment and Natural Resources Office where the land being applied for is
located.
Who are qualified to apply?
1. Citizens of the Philippines.
2. Over 18 years old or head of the family.
3. Not the owner of more than 12 hectares of land pursuant to the 1987
constitution
Public Grant: Sales Patent
 REPUBLIC ACT NO. 730 is an act permitting sale without
public auction of alienable and disposable lands of the public
domain for residential purpose.

The application to purchase the land is called the

Miscellaneous Sales Application and the corresponding patent
is called the Miscellaneous Sales Patent.
Public Grant: Sales Patent
 WHO ARE QUALIFIED TO APPLY?
1. A Filipino citizen of lawful age, married; if single, applicant
must be the head or bread winner of
the family;
2. He is not the owner of a home lot in the municipality/city
where the land applied for is located;
3. He must have occupied in good faith the land applied for and
constructed a house thereon where
he/she and family is actually residing.
Board Question:
 Enumerate and explain the modes of acquiring
ownership of real estate:
 Public Grant – different administrative methods of
acquiring public lands, such, as homestead.
 Private Grant – the execution by the owner of the
appropriate document transferring ownership to
another
 Involuntary Grant – the process by which land is taken
against the consent of the owner.
Board Question:
 Continuation ….
 Inheritance – acquisition of land by virtue of
hereditary succession
 Reclamation – the filling of submerged land by
deliberate act such as the reclamation of Manila Bay.
 Accretion – the process by which soil is deposited to
lands adjoining rivers.
 Adverse Possession or Prescription – the ownership is
acquired through lapse of time
Board Question:
 In case of real property, prescription in good faith is:
A. 5 YEARS B. 15 YEARS C. 30 YEARS D. 50 YEARS E. None
 Filipino citizens can acquire by patent agricultural lands of
the public domain not exceeding:
A. 5 Hec. B. 7 Hec. C. 10 Hec. D. 12 Hec. E. None of the
above
 Ownership of a piece of land can be acquired through any of
the following modes, except:
A. Tradition B. Prescription C. Occupation D. Accretion
E. Succession
Board Question:
 A kind of possession of property that is actual, continuous,
adversarial, visible and is required as an element of
prescription:
A. Adverse possession
B. Possession physical and public
C. Adverse claim
D. Possession without claim of title
E. Possession in good faith
Board Question:
 The voluntary transfer of real estate is:
A. Adverse Possession
B. Quitclaim
C. Alienation
D. Surrender
E. None of the above
Board Question:
 Seizure of property by a court order, usually done to have it
available in the event of adverse judgement on a pending suit:

A. Escheat
B. Forfeiture
C. Foreclosure
D. Attachment
E. Conveyance
Other Important Topics
 RES NULLIUS
 “Everything on earth must have an owner.”
 STEWARDSHIP CONCEPT
 “Social obligation on land ownership.”
 EXTENT OF LAND OWNERSHIP

 DOCTRINE OF SELF-HELP
 HIDDEN TREASURE
 Hidden Treasure – Hidden treasure belongs to the owner
of the land, building, or other property on which it is
found.
 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 thing found be of interest to science or the arts, the State
may acquired them at their just price, which shall be divided in
conformity with the rule stated.

 Note that by treasures, it means any hidden and unknown deposit

of money, jewelry, or other precious objects the lawful ownership
of which does not appear.
 Accession
 The right of a property owner to everything which is:
a. Produced thereby (accession discrete)
b. Or which is incorporated or attached thereto, either naturally
or artificially, which in turn is divided into:
1. Natural accession
2. Articial accession
 Distinction between Alluvion and Avulsion
AVULSION ALUVION

1. sudden or abrupt process may be 1. the deposit of the here is gradual

seen 2. soil cannot be identified
2. soil can be identified or verified 3. belong to the owner of the
3. belong to the owner from whose property to which it is attached.
property it was detached.
 Co-Ownership
 It is that state where an undivided thing or right belongs to two
or one persons.
 It is the right of common dominion which two or more persons
have in a spiritual (ideal) part of a thing which is not physically
divided.
 Usufruct
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.
FO = NO + U
NO = FO – U
U = FO – NO
 Possession
It is the holding of a thing or the enjoyment of a right.
 Easements
 It is un encumbrance imposed upon an immovable for the
benefit of another immovable.
 The immovable in favor of which the easement is established is
called the dominant estate; that which is subject thereto, the
servient estate.
 Right of way:
 The estate is surrounded by other immovable, and without adequate
outlet to a public highway
 Proper of proper indemnity
 Isolation not due to the act of the owner
 ROW is least prejudicial
Board Question:
 Removal of land from one owner to another when a stream
suddenly changes
A. Accretion B. Alluvium C. Avulsion D. Alienation
E. None of the above

 An owner whose land abuts a river

A. Patrimonial Owner B. Land Sub-surface owner
C. Riparian Owner D. Accession Owner E. Seashore Owner
Board Question:
 Easement is to Real Property; Usufruct is to __________
A. Personal Property
B. Real Property
C. Personal or Real Property
D. None of the above
Board Question:
 A principle of ownership which mandates property owners
to use their property in a manner that will promote not only
their interest but also the general welfare:
A. Principle of Social Justice
B. Stewardship Principle
C. Principle of Conformity
D. Principle of Progression
E. None of the above
Board Question:
 True or False. Hidden treasures belong to the government
and not to the owner of the land, building or other property
which it is found.
 True or False. Right of accession is the right of the owner of
everything which is produced, incorporated and attached to
one whether naturally or artificially.
Board Question:
 _____________ is a land formed by accretion.
 _____________ is the increase or addition of land by the
deposit of soil at the bank of rivers.
 _____________ may be described as the accretion which
the lands adjoining the banks of rivers, creeks, torrents or
lakes gradually received from the effects of the current of the
water.
Board Question:
 It is an encumbrance imposed upon an immovable for the
benefit of another immovable belonging to another:

A. Nuisance per accidens

B. Right of Way
C. Private Nuisance
D. Easement
E. None of the above
Board Questions:
 True or False. A parcel of land through which a right of way
is granted in favor of adjoining land is called dominant estate.
ALIEN OWNERSHIP
 General Rule: Cannot acquire land in the Philippines
 Exception:
 BP 185 (March 16, 1982) Former Natural Born Citizen
Maximum 1000 sqm urban land / 1 hec rural land
ResidentialPurpose
 RA 8179 (March 28, 1996) Former Natural Born Citizen
Maximum 5000 sqm urban land / 3 hec rural land
CommercialPurpose
 RA 9225 Aliens who are formerly natural born citizen may re-
acquire Filipino citizenship (dual citizenship)
Board Question:
 As a general rule, only Filipino citizens can acquire real
estate in the Philippines. What are the four (4)
exceptions to the rule?
 Real Estate acquired before the 1935 Constitution
 Real Estate acquired by inheritance
 Lands acquired by former natural born Filipino
citizens
 Condominium units within the 40% limit
Board Question:
 A former natural born Filipino citizen may in addition to
acquiring residential land under BP 185 may still acquire land
for business or other purposes under RA 8179 provided the
area does not exceed:
A. 1 hectare of urban land or 2 hectares of rural land
B. 5,000 sqm of urban land or 3 hectares of rural land
C. 5,000 sqm of urban land or 5 hectares of rural land
D. 1,000 sqm of urban land or 3 hectares of rural land
E. None of the above
Board Question:
 RA 9225 or the Citizenship Retention and Reacquisition Act
provides that natural born citizen of the Philippines, who have
lost their citizenship by reason of their naturalization as citizen
of a foreign country are deemed to have reacquired Philippine
citizenship (who shall thereafter enjoy full civil and political
rights) after compliance with what process:
A. Submission of an affidavit of good faith
B. Taking an oath of allegiance
C. Submitting DOJ with sworn statement of 5 credible Filipino
guarantors
D. Deposit of P1Million with the BID
Board Question:
 A former natural born Filipino citizen can acquire not more
than 5,000 sqm of land in the urban area for business
purposes under:
A. BP 185
B. RA 7042
C. PD 957
D. ACT 2725, AS AMENDED
E. NONE OF THE ABOVE
Board Question:
 Generally, only Filipino citizens and corporations with at least 60%
capital of which is owned by Filipinos are entitled to acquire and own
land in the Philippines. However, aliens can acquire real estate in the
Philippines, in the following cases, except:
A. Acquisition before the 1935 Constitution
B. Acquisition thru hereditary succession
C. Purchase of not more than 40% interest in a condominium
D. Purchase of residential house and lot for family home
E. Purchase by former natural born citizens subject to limitation
Type of Estates
 Freehold Estate
 Fee Simple
 Fee Tail
 Life Estate

 Less Than Freehold Estate

 Estate for years
 Tenancy from period to period
 Tenancy at will