Leal, Patrick Louis V.
-outside commerce of man
JD 2-3 Property
WEEK 1
Classification of property
A. Preliminary provisions
-property is considered as an
object in which or may be appropriated
-defines the different kinds of
appropriable objects, provides for their
acquisition and loss, and treats of the
nature and consequences of real rights
B. Art. 414
-anything which are or may be
the object of appropriation are
considered either: immovable or real
property or movable property or
personal property
C. Thing v. Property
-thing is much broader in scope
like it can be both appropriable and non-
appropriable. Examples are sun,
planets, and stars and since we cannot
appropriate them, they cannot be
considered as property.
-property are things that can be
appropriable. e.g is air is a thing that
cannot be appropriable but if an air is
placed in a container and has been sold
like oxygen tanks it can be considered
as property.
D. Kinds of property A. Mobility and
non-mobility
-movable (car)
-immovable (land)
B. Ownership
-public domain (rivers)
-private domain (fountain pen)
C. Alienability
-within commerce of man
(contracts or judicial transactions)
(prohibited drugs)
D. Existence
-present property (res existentes)
-future property (res futurae)
E. Materiality or Immateriality
-Tangible or corporeal (paper
printen 1k in BSP)
-intangible or incorporeal (rights
or credits- credit represented by the 1k
in BSP)
F. Dependence or Importance
-Principal
-Accessory
G. Capability of substitution
-Fungible-capable of substitution
-Non-fungible- Incapable of
substitution
H. Nature or Definiteness
-generic- group or class
-Specific- Single or unique object
I. Whether in the custody of the court or
free
-in custodia legis-(seized by an
officer via writ of attachment or
execution)
-free property (not in custodia
legis)
Characteristics of property
-utility for the satisfaction of moral
or economic wants
-susceptibility of appropriation
-individuality or substantivity (can
exist by itself-hair becomes property
when it is detached form the owner)
E. Chapter 1- Immovable Property
-firmly fixed, settled or fastened
and in general it is fixed in a definite
place.
-Classified as:
Nature (trees and plants)-Article
415 Paragraph 1 and 8,
Incorporation (building)- Article
415 Paragraph 2,3 and 7,
 Destination or purpose
(machinery placed by the owner)
Article 415 Paragraph 4,5,6 and
9,
Analogy (right of usufruct or
contract for public works) Article
415 Paragraph 10
F. Article 415
-(1) land (kahit magka-
earthquake immovable parin) shovel of
land (personal property)
-(2) buildings (dapat adhered and
not superimposed) (dismantled house
and pieces of materials are personal
properties.
G. R.A. 7170 - Organ Donation Act of
1991
-an act authorizing the legacy or
donation of all or parts of a human body
after death for specified purposes
-at least 18 and up with sound
mind\
-spouse, son/daughter, parent,
brother/sister, guardian over decedent
H. Chapter 2- Movable Property
-Movable property also known as
personal property has various kinds
such as in paragraph 1 of article 416
examples are fountain pen, guitar and
animals; Paragraph 2 are growing crops
for the purpose of the chattel mortgage
law; Paragraph 3 of article 416 are
electricity, gas, light and nitrogen; and
Paragraph 4 machinery not attached to
land nor needed for the carrying on of
an industry. (Paras, 2021) In a case of
Sibal v Valdez where the question lies
whether or not a sugarcane which is a
growing crop a real or personal property.
it states there that all though growing
fruits are ordinarily real property under
the civil code but it must be regarded as
personal property for purposes of the
chattel mortgage law because the right
on the growing crop is a mobilization by
anticipation and rendering the crop
movable.
I. Articles 416-418
Art. 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
personal property.
(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.
-determining whether movable or
immovable property. Manresa
mentioned three tests to determine
either test by description. example:
capable of being carried from place to
place or change in location without
insuring the real property or test by
exclusion e.g the object is not one of
those enumerated or included.
-a patent, copyright and the right
to an invention are personal property
-personal effects include only
tangible property
Art. 417. The following are also
considered as personal property:
(1) Obligations and actions which have
for their object movables or demandable
sums; and
-Talks about right to collect by
judicial action is also a personal
property.
-Promissory note is a personal
property.(2) Shares of stock of
agricultural, commercial, and industrial
entities, although they may have real
estate.
-Shares of stock in a gold mining
corporation is considered personal
property
-A share in a partnership
considered personal property and half-
interest in a drugstore business is
personal property.
Art. 418. Movable property is either
consumable or no consumable. 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.
J. Classes of Movable Property
According to their nature:
-Consumable- this cannot be
used according to its nature without its
being consumed. examples are food like
sisig, sinigang and other consumable
goods.
-non-consumable- any other kind
of movable property. examples are
coins, money,
According to the intention of the parties:
-non-fungible are identical thing
be returned in an example stated in the
book of paras is if a person borrow a
sack of rice not for consumption but for
display.
-fungible on the other hand is that
an agreed equivalent be returned and
example of this is if a person borrowed a
vinegar to its neighbor then it should be
returned in a same quality.
K. Importance of Classification
-According to Paras, the
distinction between immovables and
movables is important not because of
their mobility or immobility but rather
because different legal provisions apply
to their acquisition, possession,
disposition, loss, and registration. For
instance, if real property, such as land,
is donated, the instrument must be
public; otherwise, the alienation will not
be enforceable even between the
parties to the transaction.
L. Property in relation to the person to
whom it belongs.
M. Arts. 419-425
Art. 419. Property is either of public
dominion or of private ownership.
-Dominio publico
-Propiedad privado (they may
own properties both their public capacity
and in private capacity)
Art. 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 being for public use, and
are intended for some public service or
for the development of the national
wealth.
Art. 421. All other property of the State,
which is not of the character stated in
the preceding article, is patrimonial
property.
-Patrimonial property is a
property of the state but which is not
devoted to public use, public service or
the development of the national wealth.
In a case of sanchez v Municipality of
asingan, wherein the plaintiff
constructed in a patrimonial lot like
stores and buildings but was later then
ejected and this was an example of
patrimonial property.
-friar lands, the san Lazaro
estate, properties obtained by the
government in escheat proceedings.
(when no other legal heir of a decedent)
or those inherited by or donated to the
government and a municipal-owned
waterworks system.
-may be acquired by private
individuals or incorporation through
prescription.
Art. 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.
-In a case decided by the
supreme court they said that only the
executive and possibly the legislative
departments have the authority and
power to make the declaration that any
land so gained by the sea is not
necessary for the purposes of public
utility, or for the establishment of special
industries or for coast guard service.
Art. 423. The property of provinces,
cities, and municipalities is divided into
property for public use and patrimonial
property.
-Reclaimed lands-does not fall
under the category of natural resources
which under the constitution are
inalienable; it is a statutory law which
determines the status of reclaimed land.
Art. 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.
-political subdivisions have
various kinds of properties and can be
classified as property for public use.
Example of which is a public street
wherein it is outside commerce of man
and not subject for any other contract
and patrimonial property.
-the classification is needed for
us to know that these properties came
from the state and if there are absences
when It comes to proof of the said
ownership then it is presumed that they
are really came from the state.
Art. 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.
-Collective ownership- refers to
ownership by private individuals as co-
owners, or by corporations,
partnerships, or other juridical persons.
examples of which are foundations,
charities, and such.
-if a private land was built in a
military zone that doesn’t mean that it
will be a public domain. (Inchausti and
co. v. commanding general)
-aliens cannot acquire private or
public lands except hereditary
succession.
-Zonal Valuation was established
with objective of having an efficient tax
administration by minimizing the use of
discretion in determining tax based part
of the admin on one hand and taxpayer
on the other hand. (there must be official
zoning map or it will be considered void)
N. Regalian Doctrine
 -Jura Regalia or regalian doctrine
is a legal concept first introduced into
the Philippines from the west by Spain
through the laws of the indices and the
royal cedulas, all lands of the public
domain belong to the state. meaning
that all lands not own by a private
person are presumed belong to the
state.
O. Property of Public Dominion
-Public dominion as stated in
Paras book, means ownership by the
state in that the state has control and
administration. meaning public in
general. examples of which is a town
plaza or park for the use of general
public.
Three kinds of property of public
dominion
-For public use- like roads,
canals, TPLEX and NLEX.
-For public service- like national
government buildings, army rifles, army
vessels (may be used only by duly
authorized persons)
-For the development of national
wealth- like our natural resources like
water, soil, fuel, forest.
There are also that are state in
paragraph one “and others of similar
characters.”
-Examples in the book of paras
are public streams, natural beds of
rivers, river channels, waters of rivers
and creeks. (Creeks are public domain
as stated in Maneclang et al vs IAC
because it is an arm extending from
private river and not susceptible for
private appropriation)
-There are also instances that a
private land or a house that was invaded
by waters and forms part of the sea and
was converted to a shore or beach,
these cases are called natural
expropriation. Since the private owner
here loses his property in favor of the
state.
-Shores are properties of the
public domain intended for public use.
-Navigable rivers are public
domain
Characteristics of properties of public
domain
-they are outside the commerce
of man.
-they cannot be acquired by
prescription. Even a city or municipality
cannot acquire them by prescription as
against the state.
-they cannot be registered under
the land registration law.
-cannot be levied upon by
execution nor can they be attached.
-for public use. Can be used by
everybody.
-they can either be real or
personal property.
In a case of Republic v. Animas, Forest
lands as such cannot be registered. The
mere fact that a person has title over the
land is unavailing. The doctrine of
indefeasibility does not apply here or
third party may be able to challenge
your title over the land you purchased.
Public lands were regarded as the
national domain under legislative power
of congress that has not been subjected
to private right or for public use.
P. Property of Private Ownership
-Other properties are those
belong to private persons; individually or
collectively. It carries the presumption
that the land had never been part of the
public domain or that it had been private
property even before the Spanish
conquest.
-During Japanese occupation
private lands do not belong to its private
owner but it was for the Philippine
government which emerged as victor.
WEEK 2
Classification of Property Based on
Ownership
A. Chapter 1 – Ownership in General
(Arts. 427 – 439)
Art. 427. Ownership may be exercised
over things or rights.
-Ownership was defined in paras
book as an independent and general
right of a person to control a thing
particularly in his possession,
enjoyment, disposition, and recovery,
subject to no restrictions.
Kinds of ownership
-Full ownership (Dominium or jus
in re propia)- all rights of the owner.
-Naked ownership (Nuda
proprietas)- right to the use and the
fruits has been denied.
-Usufructuary’s right (jus in re
aliena)- right over a thing owned by
another.
-Sole ownership- ownership
based only on one person
-Co-ownership (or tenancy in
common)- vested in two or more owners
Possessory Information
-Informacion possessoria- duly
recorded in the registry of property is
prima facie evidence that the registered
possessor is also the owner of the land
involved.
Art. 428. The owner has the right to
enjoy and dispose of a thing, without
other limitations than those established
by law.
The owner has also a right of action
against the holder and possessor of the
thing in order to recover it.
Rights of an owner under civil code
Right to enjoy
-The right to possess (jus
possidendi)-if I sell what I own, I am duty
bound to transfer its possession,
actually or constructively, to the buyer.
-The right to use (jus
utendi)-right to exlude any
person, as a rule from the
enjoyment and disposal thereof.
-The right to the fruits (jus
fruendi)-
Right to Dispose (jus disponendi)-
a husband cannot ordinarily donate
property of considerable value to his
wife as long as the marriage lasts
-Right to consume or
destroy or abuse (jus abutendi)-Can
burn his own house and not damaging
others, can spend all his wealth but
must leave for his own support
-Right to encumber or
alienate
Right to recover or vindicate (jus
vindicandi)
Actions to recover
Recovery of Personal property
-proper action is “replevin”
rule 60 ROC-recovery of the possession
(hiniram na driller ng kapitbahay)
Recovery of Real property
-forcible entry (kulang
lease bayad tapos used force para
makatawd) or unlawful detainer
(Squatter occupies land)
 -plenary action-to recover
the better right of possession (can be
used after 1yr has lapsed, recission of
contract)
-reivindicatory action-
action to recover ownership over real
property
-writ of preliminary mandatory
injunction and
-writ of possession
Art. 429. The owner or lawful possessor
of a thing has the right to exclude any
person from the enjoyment and disposal
thereof. For this purpose, he may use
such force as may be reasonably
necessary to repel or prevent an actual
or threatened unlawful physical invasion
or usurpation of his property.
Doctrine of self help
-Article speaks of the principle of
self-help, namely, the right to counter, in
certain cases, force with force (I can
defend my car from being stolen by any
means necessary)
Art. 430. Every owner may enclose or
fence his land or tenements by means of
walls, ditches, live or dead hedges, or by
any other means without detriment to
servitudes constituted thereon.
-Fencing of land or tenements- A
person has no right to prevent the
outflow of the water of someone’s
estate. While he had the right to fence
his estate, still he should not impair the
servitudes or burdens constituted
thereon. (lunod v. meneses)
Art. 431. The owner of a thing cannot
make use thereof in such manner as to
injure the rights of a third person.
-No injury to rights of third
persons- one of bases of police power
and a just restriction on the right to
ownership. Example is that you cannot
play electric guitar at night while your
neighbor is sleeping.
Art. 432. The owner of a thing has no
right to prohibit the interference of
another with the same, if the
interference is necessary to avert an
imminent danger and the threatened
damage, compared to the damage
arising to the owner from the
interference, is much greater. The owner
may demand from the person benefited
indemnity for the damage to him.
-This article refers to a state of
necessity as said in the principle of self-
help mentioned in the preceding
chapter. Example is that one is driving
with due care who saw an animal going
straight at him and the other would be a
bicycle passing by, the owner of the
animal, if he should happen to cause
destruction he has no right to interfere.
Art. 433. Actual possession under claim
of ownership raises disputable
presumption of ownership. The true
owner must resort to judicial process for
the recovery of the property.
Disputable presumption of ownership
There are said to be two disputable
presumptions of ownership:
A. Actual possession and
B. Claim of ownership
This applies to both immovable and
movable property.
 -Article 433 and 541 are similar in
a way that it talks about the concept of
owner has in his favor the legal
presumption that he possesses with a
just title and he cannot be obliged to
show or prove it.
-The owner has to resort to
judicial process to recover his property
only if the possessor does not want to
surrender the property to him after
proper request or demand has been
made.
Art. 434. In an action to recover, the
property must be identified, and the
plaintiff must rely on the strength of his
title and not on the weakness of the
defendant's claim.
Requisites in an action to recover
(based in the case of del valle v
meralco):
A. Property must be identified.
-must determine first the
boundaries of the land sought must be
proved this is because if the person fails
to specify which portion of a parcel of
land is the portion he is supposed
B. Reliance on title of the plaintiff
(because either might not be the owner)
Art. 435. No person shall be deprived of
his property except by competent
authority and for public use and always
upon payment of just compensation.
Should this requirement be not first
complied with, the courts shall protect
and, in a proper case, restore the owner
in his possession.
Eminent Domain - superior right of the
State to own certain properties under
certain conditions; a limitation on the
right of ownership; may be exercised
even over private properties of cities and
municipalities, and even over lands
registered with a Torrens title.
- the right of the State to acquire
private property for public use upon
payment of just compensation. (Cooley)
- Inherently possessed by the
national legislature, the power of
eminent domain may be validly
delegated to local governments, other
public entities and public utilities.
- Eminent domain or
expropriation is based on the need for
human progress and community welfare
or development.
- Eminent domain refers to the
right, expropriation usually refers to the
procedure, thru which the right is
exercised.
Essential Requisites of Eminent Domain
(a) taking by competent authority
(b) observance of due process of law
(c) taking for public use
(d) payment of just compensation.
The right to expropriate is not an
inherent power in a municipal
corporation, and before it can exercise
the right, some law must exist conferring
the power upon it. If a law grants it,
whether wisely or not, it must be given
effect, provided that all other
requirements of the law are complied
with.
Art. 436. When any property is
condemned or seized by competent
authority in the interest of health, safety
or security, the owner thereof shall not
be entitled to compensation, unless he
can show that such condemnation or
seizure is unjustified.
 -Based on police power, meaning
that salus populi est suprema lex which
means that the welfare of the people is
the supreme law of the land. Police
power can refer not merely to
condemnation and seizure but also to
total destruction itself provided that.
A. the public interest is served
and;
B. the means used are not unduly
harsh, abusive or oppressive.
-Abatement of nuisances it is to
exercise police power whether public or
private, whether per se or per accidens.
A. Public nuisance- which affects
the community or number of people
B. Private nuisance- which is not
public
C. nuisance under
circumstances
D. certain circumstances, like a
factory, situated in a residential district.
-City of Manila can exercise
police power by enacting ordinances
prohibiting the sale of fresh meat outside
city markets.
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 landowner
meaning that if a person owns a piece of
land it is understandable that he owns
its surface, up to the boundaries of the
land such as plantings and excavations
subject to:
a. servitudes or easements
b. special laws
c. ordinances
d.reasonable requirements
of aerial navigation
e. principles on human
relations. E.g yung tinayo mong
something nakaharang sa view ng
neighbor
-Regalian doctrine all lands
belong to the state. Unless alienated in
accordance with law, it retains its basic
rights over the same as dominus.
(Director of lands management bureau
v. CA)
Art. 438. Hidden treasure belongs to the
owner of the land, building, or other
property on which it is found.
all
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 be of interest to
science of the arts, the State may
acquire them at their just price, which
shall be divided in conformity with the
rule stated.
-If a person finds any hidden
treasure in his house, he alone owns the
treasure. If he is married, the treasure
belongs to the conjugal partnership.
-Conjugal- finder 50 and
proprietor also belongs to the conjugal
partnership.
Art. 439. By treasure is understood, for
legal purposes, any hidden and
unknown deposit of money, jewelry, or
other precious objects, the lawful
ownership of which does not appear.
Requisites in the definition of hidden
treasure
-hidden and unknown deposit.
-consists of money, jewelry, or
other precious objects.
-their lawful ownership does not
appear.
Ejusdem Generis-other precious objects
should be understood for those same
class as money or jewelry but not
property imbedded in the soil or like
minerals
If the treasure is known like pag
binigyan ka ng libro na may laman na
100,000 sa may ari dapat yon.
B. Chapter 2 – Rights of Accession
(Art. 440-475)
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
-Defined as the right of a property
owner to everything which is:
a. produced thereby
(accession discreta)
b. incorporated or attached
thereto, either naturally or artificially
(accession continua or accession non-
interrumpida)
1. natural accession
(accession natural)
2. artificial
accession (accession artificial or
accession industrial)
Reasons behind accession:
1. (Accession discreta-to the fruits) for
one who owns a thing should justly
enjoy its fruits
2. (Accession continua- attachment or
incorporation)- economic convenience is
better attained in a state of single
ownership than in co-ownership.
SECTION 1. - Right of Accession with
Respect to What is Produced by
Property
Art. 441. To the owner belongs:
(1) The natural fruits;
(2) The industrial fruits;
(3) The civil fruits.
Accession Discreta- right to ownership
of fruits produced by our property
Rent is a civil fruit belongs to the owner
of the property producing it by right of
accession. (PNB v. Maranon)
Art. 442. Natural fruits are the
spontaneous products of the soil, and
the young and other products of
animals.
Industrial fruits are those produced by
lands of any kind through cultivation or
labor.
Civil fruits are 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.
Natural, Industrial and Civil fruits
Natural Fruits
 a. spontaneous products of soil
like herbs, common grass.
b. Young and other products of
animals like chicks and
chicken
Industrial fruits- those produced by lands
of any kind thru cultivation or labor
a. Lanzones and bananas
b. Palay and corn
*offspring of animals but the general rule
is that female is considered the owner
as they are more onerous than men
animals.
Civil fruits are consists of:
a. Rent of buildings
b. Price of leases
c. The amount of perpetual or
life annuities or other similar
income (pension payment)
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.
Duty of recipient of fruits to reimburse
necessary expenses. (if a person who is
not the owner and planted and
harvested a crop in bad faith, the owner
will still be the one who should be
entitled of the crop harvested)
Art. 444. Only such as are manifest or
born are considered as natural or
industrial fruits.
With respect to animals, it is sufficient
that they are in the womb of the mother,
although unborn.
(1) Crops
Two kinds of crops:
(1) Annual Crops like cereals, grains,
rice corn and sugar.
(2) Perennial Crops like oranges,
apples, mangoes and coconuts.
(2) Animals are considered existing even
if still in the maternal womb.
(3) Rules for civil fruits as distinguished
from natural and industrial
-civil fruits accrue daily personal if
growing real property
-civil fruits can be pro-rated; while
natural and industrial cannot.
SECTION 2. - Right of Accession with
Respect to Immovable Property
Art. 445. Whatever is built, planted or
sown on the land of another and the
improvements or repairs made thereon,
belong to the owner of the land, subject
to the provisions of the following
articles.
-accession continua
-pag mas mataas binayad sa renovation
sa conjugal and hm yung sa asawa yun
ang ibibigay tapos kung mas mataas
yung value ng land kesa sa renovation
si asawa lang ang owner.
Art. 446. All works, sowing, and planting
are presumed made by the owner and at
his expense, unless the contrary is
proved. (rules on evidence and
substantive law)
-the works were made by the owner
-expenses made by the owner
Art. 447. The owner of the land who
makes thereon, personally or through
another, plantings, constructions or
works with the materials of another,
shall pay their value; and, if he acted in
bad faith, he shall also be obliged to the
reparation of damages. The owner of
the materials shall have the right to
remove them only in case he can do so
without injury to the work constructed, or
without the plantings, constructions or
works being destroyed. However, if the
landowner acted in bad faith, the owner
of the materials may remove them in
any event, with a right to be indemnified
for damages.
- (Good Faith) if not landowner’s
materials used, he must pay for the
value.
-(Bad Faith) the landowner becomes the
owner but must pay for value and
damages.
Art. 448. The owner of the land on which
anything has been built, sown or planted
in good faith, shall have the right to
appropriate as his own the works,
sowing or planting, after payment of the
indemnity provided for in Articles 546
and 548, or to oblige the one who built
or planted to pay the price of the land,
and the one who sowed, the proper rent.
However, the builder or planter cannot
be obliged to buy the land if its value is
considerably more than that of the
building or trees. In such case, he shall
pay reasonable rent, if the owner of the
land does not choose to appropriate the
building or trees after proper indemnity.
The parties shall agree upon the terms
of the lease and in case of
disagreement, the court shall fix the
terms thereof.
-applies only when the builder, planter or
sower believes he has the right to build,
plant or sow.
-A built a house on lot of B in good faith
what are B’s rights?
a. appropriate for himself after
paying for proper indemnity.
b. to compel A to buy the land
unless land is much more pricey than
the house build (rent should be paid)
Art. 449. He who builds, plants or sows
in bad faith on the land of another, loses
what is built, planted or sown without
right to indemnity.
-this article applies in a case of
planting or sowing only to growing or
standing crops not to gatherd crops
which are governed by the preceding
article (Art. 443)
-possessor and builder of bad faith.
Example is if the sale is void both seller
and buyer are in bad faith (pari delicto)
and the possessor had improvements
after the pendency of the case for
recovery.
Art. 450. The owner of the land on which
anything has been built, planted 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.
-The said landowners can of course,
select instead a demolition of said
improvement under the said article
Art. 451. In the cases of the two
preceding articles, the landowner is
entitled to damages from the builder,
planter or sower.
-If acted in bad faith: (1) get the house
without paying any indemnity for its valie
or expense but with obligation to pay
necessary expenses (2) demand
demolition (3) compel the builder to buy
the land.
Art. 452. The builder, planter or sower in
bad faith is entitled to reimbursement for
the necessary expenses of preservation
of the land.
-reimbursement for necessary expenses
to preserve the land.
Art. 453. If there was bad faith, not only
on the part of the person who built,
planted or sowed on the land of another,
but also on the part of the owner of such
land, the rights of one and the other
shall be the same as though both had
acted in good faith.
It is understood that there is bad faith on
the part of the landowner whenever the
act was done with his knowledge and
without opposition on his part.
-if both acted in bad faith it neutralizes
and can be considered in bad faith.
Example is that A builds a house on the
lot of B in bad faith without B rejecting it.
Either B can have the house upon
payment of indemnity or compel B to
buy the land.
Art. 454. When the landowner acted in
bad faith and the builder, planter or
sower proceeded in good faith, the
provisions of article 447 shall apply.
-if the landowner is in bad faith
and the builder is in goodfaith it will
direct to article 447 that landowner will
pay for the value of the house plus
damages because of his bad faith and
the builder if he prefers to demolish it,
still the landowner will still be liable for
damages.
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.
-This article will apply if there are 3
parties are involved
Rights if the owner of the material:
if bad faith- he loses all rights to
be indemnified and can be liable for
consequential damages.
If good faith- he is entitled to
reimbursement from the builder. If
insolvency, landowner can be
subsidiarily liable.
If bad faith among 3 parties- all must
considered to have acted in good faith.
Art. 456. In the cases regulated in the
preceding articles, good faith does not
necessarily exclude negligence, which
gives right to damages under article
2176.
-good faith and negligence can co-exist
and may be subject to pay damages
according to article 2176
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 of the
waters.
Forms of accession Natural
a. Alluvium (457)
b. Avulsion (459)
c. Change of course of rivers
(461-462
d. Formation of islands (464-
465)
Alluvium is the soil deposited or added
to the lands adjoining the banks of
rivers, and gradually received as an
effect of the current of the waters.(it will
always be with the riparian owner) pag
close yung river with a high wall that is
not alluvium and cannot be give him the
ownership
Art. 458. The owners of estates
adjoining ponds or lagoons do not
acquire the land left dry by the natural
decrease of the waters, or lose that
inundated by them in extraordinary
floods.
-this article applies when the estate
adjoins a pond and or a lagoon. He will
be the owner but may lose it based on
prescription.
Art. 459. 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 of it, provided that he
removes the same within two years.
-Avulsion is the process whereby 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.
-difference with alluvium (1) suddent or
abrubt instead of gradual (2) soil can be
idenfied and (3) belongs to owner from
whose property it was detached anod
not to where it is attached.
-must claim within 2yrs
Art. 460. Trees uprooted and carried
away by the current of the waters belong
to the owner of the land upon which they
may be cast, if the owners do not claim
them within six months. If such owners
claim them, they shall pay the expenses
incurred in gathering them or putting
them in a safe place.
-Rule on uprooted tree is that when it is
detached from A going to B, A is still the
owner provided that A must claim it
within 6mos from the time it was
detached.
Art. 461. River beds which are
abandoned through the natural change
in the course of the waters ipso facto
belong to the owners whose lands are
occupied by the new course in
proportion to the area lost. However, the
owners of the lands adjoining the old
bed shall have the right to acquire the
same by paying the value thereof, which
value shall not exceed the value of the
area occupied by the new bed.
-when there is a change of course when
it comes to the riverbed the property in
which the river changes into will be the
owner of the said riverbed. Because of
the loss they had for the land.
Art. 462. Whenever a river, changing its
course by natural causes, opens a new
bed through a private estate, this bed
shall become of public dominion.
-if the riverbed changes its course to a
private estate it will become a public
domain.
Art. 463. Whenever the current of a river
divides itself into branches, leaving a
piece of land or part thereof isolated, the
owner of the land retains his ownership.
He also retains it if a portion of land is
separated from the estate by the
current.
-if the river dives itself into branches the
owner will still remain the owner of the
portion which being isolated (no physical
move) or separated (there is physical
move)
Art. 464. Islands which may be formed
on the seas within the jurisdiction of the
Philippines, on lakes, and on navigable
or floatable rivers belong to the State.
Art. 465. Islands which through
successive accumulation of alluvial
deposits are formed in non-navigable
and non-floatable rivers, belong to the
owners of the margins or banks nearest
to each of them, or to the owners of both
margins if the island is in the middle of
the river, in which case it shall be
divided longitudinally in halves. If a
single island thus formed be more
distant from one margin than from the
other, the owner of the nearer margin
shall be the sole owner thereof.
-if islands formed by unidentifiable
accumulated deposits
a. if formed on the sea
-(inside eez)- STATE-patrimonial
property
-if outside eez- nearest country
b. if formed lakes or navigable
floatable rivers-STATE
c. if forme non-navigable or non-
floatable rivers
-NEARER-one bank sole owner
-EQUIDISTANT-two bank-HALF
Section 3. — RIGHT OF ACCESSION
WITH RESPECT TO MOVABLE
PROPERTY
Art. 466. Whenever two movable things
belonging to different owners are,
without bad faith, united in such a way
that they form a single object, the owner
of the principal thing acquires the
accessory, indemnifying the former
owner thereof for its value.
-Adjunction is the process by virtue of
which two movable things belonging to
different owners are united in such a
way that they form a single object.
Kinds of adjunction
a. Inclusion-sapphire set on a
right
b. Soldering- joining legs made
of lead to a body also made of
lead.
a. Ferruminatio-same
metal
b. Plumbatura-different
metal
c. Escritura- writing
d. Pintura- painting
e. Weaving
Example is that A used the varnish of B
for A’s table. A is the owner of the table
but must pay for indemnity to B.
Art. 467. The principal thing, as between
two things incorporated, is deemed to be
that to which the other has been united
as an ornament, or for its use or
perfection.
Art. 468. If it cannot be determined by
the rule given in the preceding article
which of the two things incorporated is
the principal one, the thing of the greater
value shall be so considered, and as
between two things of equal value, that
of the greater volume.
In painting and sculpture, writings,
printed matter, engraving and
lithographs, the board, metal, stone,
canvas, paper or parchment shall be
deemed the accessory thing.
Tests to determine the principal and the
accessory.
a. Which the other has been united
as an ornament, use or perfection
b. Greater value
c. Greater volume
d. Greater merits
Art. 469. Whenever the things united
can be separated without injury, their
respective owners may demand their
separation.
Nevertheless, in case the thing united
for the use, embellishment or perfection
of the other, is much more precious than
the principal thing, the owner of the
former may demand its separation, even
though the thing to which it has been
incorporated may suffer some injury.
-no real accession this applies only to
soldering and inclusions.
-the owner of such can ask for
separation.
Art. 470. Whenever the owner of the
accessory thing has made the
incorporation in bad faith, he shall lose
the thing incorporated and shall have
the obligation to indemnify the owner of
the principal thing for the damages he
may have suffered.
If the one who has acted in bad faith is
the owner of the principal thing, the
owner of the accessory thing shall have
a right to choose between the former
paying him its value or that the thing
belonging to him be separated, even
though for this purpose it be necessary
to destroy the principal thing; and in both
cases, furthermore, there shall be
indemnity for damages.
If either one of the owners has made the
incorporation with the knowledge and
without the objection of the other, their
respective rights shall be determined as
though both acted in good faith.
-in case of bad faith, example I
will lose all the rights on the varnish
used on my brothers chair and will pay
for the damages.
-used lead for soldering will pay
for damages or be asked to remove the
lead and pay for damages
Art. 471. Whenever the owner of the
material employed without his consent
has a right to an indemnity, he may
demand that this consist in the delivery
of a thing equal in kind and value, and in
all other respects, to that employed, or
else in the price thereof, according to
expert appraisal.
How is Indemnity Paid?
By either:
(a) Delivery of an item that
is equal in kind and value
(quantity, quality) is option
(b) paying the price
determined by professionals.
Sentimental value must be taken
into account (Article 475).
-The rule only applies if the owner's
consent has not been obtained.
- The right to indemnity is only
applicable if the content was used
without
owner's approval. The principal or the
substance could have accessory.
Art. 472. If by the will of their owners two
things of the same or different kinds are
mixed, or if the mixture occurs by
chance, and in the latter case the things
are not separable without injury, each
owner shall acquire a right proportional
to the part belonging to him, bearing in
mind the value of the things mixed or
confused.
Art. 473. If by the will of only one owner,
but in good faith, two things of the same
or different kinds are mixed or confused,
the rights of the owners shall be
determined by the provisions of the
preceding article.
If the one who caused the mixture or
confusion acted in bad faith, he shall
lose the thing belonging to him thus
mixed or confused, besides being
obliged to pay indemnity for the
damages caused to the owner of the
other thing with which his own was
mixed.
- Mixture - the union of two or
more components when each The
identity of the individual pieces are
forgotten. [Vs., as opposed to
Additionally, there is more
interpenetration or disintegration in
mixture the items that were blended.
Two different types of mixture
When mixing solids, there is step
(a) COMMIXTURE.
(b) CONFUSION (if fluids are
combined).
Blending Guidelines
(a) If one owner acted in GOOD
FAITH or if the combination was caused
by the either by joint agreement
amongst the owners, by accident, or by
a common
agent, which leads to CO-OWNERSHIP,
with each owner receiving an a right or
interest corresponding to his material's
value.
Example (a): If accidentally mixing A's
palay with B's rice, A and In proportion
to the value of the mixture, B are now
co-owners. their individual materials.
(a) If just one owner created the mixture
in BAD FAITH, then —
1) He no longer has access to his
material in favour of the other;
2) and is accountable for harm. (This is
to punish him for acting in bad faith.)
- When the items that have been
jumbled up or confused are the exact
same type, number, and quality, even
dividing the mixture into two equal
portions will suffice. parts.
- In the event that a party's
negligence resulted in a mixture.
 - The negligent person is
responsible for his culpa aquiliana and
must provide indemnification. for harms.
(Art. 2176). Keep in mind that good faith
is not always exclude carelessness. (Art.
456).
Art. 474. One who in good faith employs
the material of another in whole or in
part in order to make a thing of a
different kind, shall appropriate the thing
thus transformed as his own,
indemnifying the owner of the material
for its value.
If the material is more precious than the
transformed thing or is of more value, its
owner may, at his option, appropriate
the new thing to himself, after first
paying indemnity for the value of the
work, or demand indemnity for the
material.
If in the making of the thing bad faith
intervened, the owner of the material
shall have the right to appropriate the
work to himself without paying anything
to the maker, or to demand of the latter
that he indemnify him for the value of
the material and the damages he may
have suffered. However, the owner of
the material cannot appropriate the work
in case the value of the latter, for artistic
or scientific reasons, is considerably
more than that of the material.
- In the event that a party's negligence
resulted in a mixture.
- SPECIFICATION is the process of
giving another person's work a new form
through the labor application. The
substance is altered or changed in some
way.
identity.
- Guidelines for Specifications
- If the primary (worker) is acting in good
faith:
1) He adopts the novel idea;
2) But he has to pay for the materials as
well. If the component (accessory) is
more valuable than the new, then
The owner of the material has a choice if
something exists or is more value.
1) to obtain the new item while paying
for the labour;
2) or to request material indemnification.
- Should the WORKER be acting
in bad faith, the material's owner is
Consequently, he —
1) may use the work without
compensating the labourer;
2) Or he can ask for
compensation for the content as well as
damages.
If the amount of the option for
appropriation exceeds the resultant work
is more valuable for artistic or scientific
reasons.
Art. 475. In the preceding articles,
sentimental value shall be duly
appreciated.
C. Civil fruits – stock dividends
As defined, civil fruits consist of:
(a) rent of buildings;
(b) price of leases (rentals) of
lands and other property (even if
personal property);
(c) the amount of perpetual or life
annuities or other similar income (but
not a bonus granted as a reward or as a
compensation to a person who
mortgaged and thus risks his land to
secure another’s indebtedness).

D. Accession Discreta (right to the
fruits)
- is defined as the right to the
ownership of fruits produced by our
property.
the owner of land owns the fruits. In the
following cases, it is not the owner who
owns the fruits, but somebody else:
-possessor in good faith of the
land (he owns the fruits already
received)
-usufructuary
-lessee gets the fruits of the land
-antichresis (the creditor acquires
the right to receive the fruits of the
property, but with the obligation to apply
them to the payment of the interest and
thereafter to the principal of his credit)
E. Accession of Immovable Property
-Accession Continua or industrial like
building, planting and sowing. The
difference is that in planting it gives rise
to the seed and sowing is without
replanting it will still grow.
*Note that this is only applies if you the
owner of the land is known*
-The accessory does not lead but
follows its principal.
-The accessory follows the nature of that
to which it relates
-The land is the principal, abd whatever
is built on it becomes accessory.
E.g Naipamana ng parents ni wife sa
kanya yung bahay. Owner is wife and
not for conjugal because the accessory
follows the principal.
F. Accession of Movable Property
With respect to movable property in
accession there are usually three types.
a. Adjunction (466)
b. mixture
c. specification
G. Doctrine of Self-Help
-Article speaks of the principle of
self-help, namely, the right to counter, in
certain cases, force with force (I can
defend my car from being stolen by any
means necessary)
H. Hidden Treasure (See R.A. 4846, as
amended by P.D. 374 –Cultural
Properties Preservation and
Protection Act)
Section 10:
Without prior registration of the items
with the National Museum and a written
permit from the Director of the National
Museum, it shall be unlawful to export or
cause to be taken out of the Philippines
any of the cultural properties defined in
Section 3 of this Act: Provided, however,
that in the granting or the withholding of
the permit, the provisions of Section
Seven of this Act shall have been
satisfied.
Section 11:
Without a formal export certification from
the nation of origin, no cultural property
may be imported.
Section 12:
Without the previous written consent of
the Director of the National Museum, it
is forbidden to explore, excavate, or
make diggings on archaeological or
historical sites with the intention of
obtaining objects having cultural or
historical significance. Without the
supervision of an archaeologist who has
been certified as such by the Director of
the National Museum, or of another
person who the Director deems
competent to supervise the work, no
excavation or digging shall be allowed.
Upon project completion, the
archaeologist shall deposit with the
Museum a catalogue of all materials
found thereon, as well as a description
of the archaeological context in line with
accepted archaeological practices.
When excavation workers come across
any buried cultural property, they must
immediately halt their work and report
the discovery to the director of the
National Museum, who will then take the
necessary action to have it investigated
and ensure that it is removed properly
and safely, with the owner's knowledge
and consent. The suspension won't be
lifted unless the National Museum's
director gives his or her permission.
Only the National Museum or any
institution legally approved by the
Director of the National Museum may
conduct any explorations, excavations,
or diggings on public or private land for
archaeological or historical reasons.
I. Chapter 3 – Quieting of Title (Arts.
476-481)
Art. 476. Whenever there is a cloud on
title to real property or any interest
therein, by reason of any instrument,
record, claim, encumbrance or
proceeding which is apparently valid or
effective but is in truth and in fact invalid,
ineffective, voidable, or unenforceable,
and may be prejudicial to said title, an
action may be brought to remove such
cloud or to quiet the title.
An action may also be brought to
prevent a cloud from being cast upon
title to real property or any interest
therein.
- Code Commission Statement
Explaining the Rea son for the
Chapter on Title Quieting
- In American law, this is a well-
established remedy. The reason behind
this is that Equity comes to the relief of
those who would suffer if the instrument
(as described above) failed.
Art. 476) were strictly enforced. He is
morally and legally entitled.
to a rid of the shade or doubt about his
title. Contrary to this,
The respondent has no legal or moral
justification for keeping the instrument.
in opposition to the petitioner's title.''
- Types of Action Mentioned
- Remedial — (activity to clear the cloud
or quiet the title). (Article 476, par.
1).
- Preventive — (activity to avoid a cloud
or doubt in the future — actio quia)
timet).
- The 'Cloud' exists.
- The title has a "cloud" (or doubt)
because:
(a) of an instrument (deed,
contract, or record) or record or claim
encumbrance or process.
(b) which appears to be legitimate
or effective.
(c) BUT is, in reality, invalid,
ineffectual, voidable, or unenforceable.
unenforceable, extinguished (or
cancelled), or banned by
prescription for the extinct. (Arts.476-
478).
(d) AND may be detrimental to
the title. (Art. 476).
Justifications for Allowing the Action
(a) litigation avoidance (eventual
litigation);
(b) the safeguarding of true title
and possession;
(c) the advancement of right and
justice.
Art. 477. The plaintiff must have legal or
equitable title to, or interest in the real
property which is the subject matter of
the action. He need not be in
possession of said property.
Art. 478. There may also be an action to
quiet title or remove a cloud therefrom
when the contract, instrument or other
obligation has been extinguished or has
terminated, or has been barred by
extinctive prescription.
Art. 479. The plaintiff must return to the
defendant all benefits he may have
received from the latter, or reimburse
him for expenses that may have
redounded to the plaintiff's benefit.
Art. 480. The principles of the general
law on the quieting of title are hereby
adopted insofar as they are not in
conflict with this Code.
Art. 481. The procedure for the quieting
of title or the removal of a cloud
therefrom shall be governed by such
rules of court as the Supreme Court
shall promulgated.
J. Chapter 4 – Ruinous Buildings and
Trees in Danger of Falling (Arts. 482-
483)
Art. 482. If a building, wall, column, or
any other construction is in danger of
falling, the owner shall be obliged to
demolish it or to execute the necessary
work in order to prevent it from falling.
If the proprietor does not comply with
this obligation, the administrative
authorities may order the demolition of
the structure at the expense of the
owner, or take measures to insure public
safety.
-The complainant who brings the
case must either have his property or
not bring the action. near to the
hazardous construction, or must pass
due to necessity in the immediate
vicinity.
Art. 483. Whenever a large tree
threatens to fall in such a way as to
cause damage to the land or tenement
of another or to travelers over a public or
private road, the owner of the tree shall
be obliged to fell and remove it; and
should he not do so, it shall be done at
his expense by order of the
administrative authorities.
- Damages liability:
- Collapse - engineer, architect, or
builder
- Collapse as a result of whole or partial
damage; no repairs were done
- owner; the state may compel him to
dismantle or perform essential repairs.
to keep it from falling
- If no action is taken, the government
will do it at the owner's expense.
WEEK 3
Co-ownership
A. Arts. 484-501
Art. 484. There is co-ownership
whenever the ownership of an undivided
thing or right belongs to different
persons.
In default of contracts, or of special
provisions, co-ownership shall be
governed by the provisions of this Title.
Co-ownership is the possession of an
undivided thing or right by two people.
or more people. (Art. 484). A co-
ownership is neither a legal person nor a
legal entity.
Any type of legal personhood is granted.
As a result, it cannot sue in court. Co-
Of course, owners may sue in their
individual capacity.
(4) Different Types of Co-Ownership
a. The subject of discussion
a. Undivided ownership of
something
b. Co-ownership of an undivided
right (such as a leasing right inherited
from a parent) parent who has passed
away).
b. Source
a. Contractual co-ownership (a
ten-year commitment not to divide)
permissible — Art. 494)
b. Co-ownership that is not
contractual (if the source is not a
contract).
c. The rights of co-owners
a. Tenancy in common
(sometimes known as ownership in
common or simply co-ownership) as
envisioned in Art. 484).
b. Joint tenancy (sometimes
referred to as joint ownership).
Co-ownership Characteristics
a. There must be multiple
subjects or owners.
b. There is a single physical
whole that has been partitioned into
IDEAL (undivided) shares.
c. Each IDEAL share has a fixed
quantity but is not physically present.
isolated from the others.
d. In terms of the physical whole,
each co-owner must respect each other.
other in the general use, enjoyment, or
preservation of physical completeness.
[As a result, a co-owner cannot sell a
definite (with).[Boundaries] are a
property feature. The interests of others
must be considered. It should not be
overlooked. (Art. 486).
Art. 485. The share of the co-owners, in
the benefits as well as in the charges,
shall be proportional to their respective
interests. Any stipulation in a contract to
the contrary shall be void.
The portions belonging to the co-owners
in the co-ownership shall be presumed
equal, unless the contrary is
proved. (393a)
Art. 486. Each co-owner may use the
thing owned in common, provided he
does so in accordance with the purpose
for which it is intended and in such a
way as not to injure the interest of the
co-ownership or prevent the other co-
owners from using it according to their
rights. The purpose of the co-ownership
may be changed by agreement, express
or implied. (394a)
Art. 487. Any one of the co-owners may
bring an action in ejectment.
WHY? The assumption is that the case
brought by one was legitimate.
on behalf of EVERYONE.

Actions Involved in 'Ejectment'
(a) forcible entry;
(b) unlawful detainer;
(c) accion publiciana;
(d) accion reivindicatoria;
(e) quieting of title;
(f) replevin.
Art. 488. Each co-owner shall have a
right to compel the other co-owners to
contribute to the expenses
preservation of the thing or right owned
in common and to the taxes. Any one of
the latter may exempt himself from this
obligation by renouncing so much of his
undivided interest as may be equivalent
to his share of the expenses and taxes.
No such waiver shall be made if it is
prejudicial to the co-ownership. (395a)
contribute to the necessary expenses
and there exists no agreement on the
subject, the following rules shall be
observed:
(1) The main and party walls, the
roof and the other things used in
common, shall be preserved at
the expense of all the owners in
proportion to the value of the
story belonging to each;
of
(2) Each owner shall bear the
cost of maintaining the floor of his
story; the floor of the entrance,
front door, common yard and
sanitary works common to all,
shall be maintained at the
expense of all the owners pro
rata;

Art. 489. Repairs for preservation may
be made at the will of one of the co-
owners, but he must, if practicable, first
notify his co-owners of the necessity for
such repairs. Expenses to improve or
embellish the thing shall be decided
upon by a majority as determined in
Article 492. (n)
Number of Co-owners Who Must
Consent
(a) Repairs, ejectment action — ONE.
(Art. 489).
(b) Alterations or acts of OWNERSHIP
— ALL. (Art. 491).
(c) All others, like useful improvements,
luxurious embellishments,
administration and better enjoyment —
FINANCIAL MAJORITY (not
numerical). (Art. 492 and Art.489).
Art. 490. Whenever the different stories
of a house belong to different owners, if
the titles of ownership do not specify the
terms under which they should
(3) The stairs from the entrance
to the first story shall be
maintained at the expense of all
the owners pro rata, with the
exception of the owner of the
ground floor; the stairs from the
first to the second story shall be
preserved at the expense of all,
except the owner of the ground
floor and the owner of the first
story; and so on successively.
Parallel Co-Ownership
- This is not your typical situation
of co-ownership in which all the floors
and Everything else is shared by all co-
owners. Here is an example of
"perpendicular co-ownership" refers to
who owns which stories. people who are
not the same. Because there is some
unity in the group, this is still co-
ownership. property use or
embellishment, particularly in the main
and Common walls, roof, stairs, and so
on. In our country, this is unusual.

-If the various units are all on the same
plane, as in a row of one-story flats
the ground — the co-ownership is
known as a horizontal co-ownership.
- A mix of perpendicular and horizontal
co-ownership.
can result in a situation quite similar to
that of a condominium that may be in
existence the shape of a structure with
numerous stories, each story being by
It is separated into different units, each
of which is owned by a different person.
Take note of Each unit cannot be
regarded jointly owned.
A condominium corporation can be
formed under the Condominium Law.
established — to look after common
property, such as the common staircase
[Common halls, for example].
Art. 491. None of the co-owners shall,
without the consent of the others, make
alterations in the thing owned in
common, even though benefits for all
would result therefrom. However, if the
withholding of the consent by one or
more of the co-owners is clearly
prejudicial to the common interest, the
courts may afford adequate relief.
An alteration is a change:
(a) which is more or less
permanent;
(b) which changes the use of the
thing; and
(c) which prejudices the condition
of the thing or its enjoyment by the
others. [Alteration is an act of
ownership;
(d) may be material or
metaphysical (change in use); and gives
rise to a real right over the property
owned in common.
An alteration is illegal when made
without the express or implied consent
of the other co-owners.
Effects of an Illegal Alteration
(a) The co-owner responsible
may lose what he has spent;
(b) Demolition can be compelled;
(c) He would be liable for losses
and damages;
(d) BUT whatever benefi ts the
co-ownership derives will belong to it;
(e) In case a house is constructed
on common lot, all the co-owners will
be entitled to a proportionate share of
the rent. (It is wrong to give all to the
person.
Art. 492. For the administration and
better enjoyment of the thing owned in
common, the resolutions of the majority
of the co-owners shall be binding.
There shall be no majority unless the
resolution is approved by the co-owners
who represent the controlling interest in
the object of the co-ownership.
Should there be no majority, or should
the resolution of the majority be
seriously prejudicial to those interested
in the property owned in common, the
court, at the instance of an interested
party, shall order such measures as it
may deem proper, including the
appointment of an administrator.
Whenever a part of the thing belongs
exclusively to one of the co-owners, and
the remainder is owned in common, the
preceding provision shall apply only to
the part owned in common.
Acts of Administration or Management
(ALL REQUISITES MUST CONCUR)
They are those:
(a) that do not involve an
alteration;
(b) those that may be renewed
from time to time;
(c) those that have transitory
effects, that is, do not bind the co-
ownership
for a long time in the future;
(d) those that do not give rise to a
real right over the thing owned in
common;
(e) those, which even if called an
alteration, do not affect the substance or
nature of the thing;
(f) those for the common benefit
of all the co-owners and not for only one
or some of them.
Art. 493. Each co-owner shall have the
full ownership of his part and of the fruits
and benefits pertaining thereto, and he
may therefore alienate, assign or
mortgage it, and even substitute another
person in its enjoyment, except when
personal rights are involved. But the
effect of the alienation or the mortgage,
with respect to the co-owners, shall be
limited to the portion which may be
alloted to him in the division upon the
termination of the co-ownership. (399)
Art. 494. No co-owner shall be obliged
to remain in the co-ownership. Each co-
owner may demand at any time the
partition of the thing owned in common,
insofar as his share is concerned.
Nevertheless, an agreement to keep the
thing undivided for a certain period of
time, not exceeding ten years, shall be
valid. This term may be extended by a
new agreement.
A donor or testator may prohibit partition
for a period which shall not exceed
twenty years.
Neither shall there be any partition when
it is prohibited by law.
No prescription shall run in favor of a co-
owner or co-heir against his co-owners
or co-heirs so long as he expressly or
impliedly recognizes the co-ownership.
Object of Partition
- BOTH real and personal
properties. Partition has for its purpose
the separation, division, or assignment
of things held in common, among the
people to whom they may belong.
- When a Co-owner May Not
Successfully Demand a Partition (BAR)
- If by agreement (for a period not
exceeding 10 years), partition is
prohibited.
- A new agreement may prolong
the term, but only after the original
period has expired; otherwise, the law's
aim
would be crushed.
- When a donor or testator forbids
partition (for an indefinite period of time).
more than twenty years) — from whom
the land was inherited.
- When legal partition is banned
(as in the case of the conjugal division)
Except in specific cases, partnership
property).
- When a physical partition would
make a property unusable, but In this
instance, the property could be assigned
to one of the co-owners. else it will be
auctioned and the earnings divided to
the others. (Art. 498).
- When the common property's
legal nature does not
 - permit partitioning (as in the
case of party walls).
Art. 495. Notwithstanding the provisions
of the preceding article, the co-owners
cannot demand a physical division of the
thing owned in common, when to do so
would render it unserviceable for the use
for which it is intended. But the co-
ownership may be terminated in
accordance with Article 498. (401a)
Art. 496. Partition may be made by
agreement between the parties or by
judicial proceedings. Partition shall be
governed by the Rules of Court insofar
as they are consistent with this Code.
• Classification of the Various Kinds of
Partition
(a) Cause:
1) extrajudicial (or conventional)
2) judicial (when court approval is
sought or when partition is made by the
court)
(b) Permanence
1) provisional or temporary
2) permanent
C. Subject matter
1) partition of real property
2) partition of personal property
D. Forms and solemnities
1) partition in a judicial decree
2) partition duly registered in the
Registry of Property
3) partition in a public instrument
4) partition in a private instrument
5) oral partition
Art. 497. The creditors or assignees of
the co-owners may take part in the
division of the thing owned in common
and object to its being effected without
their concurrence. But they cannot
impugn any partition already executed,
unless there has been fraud, or in case
it was made notwithstanding a formal
opposition presented to prevent it,
without prejudice to the right of the
debtor or assignor to maintain its
validity. (403)
Art. 498. Whenever the thing is
essentially indivisible and the co-owners
cannot agree that it be allotted to one of
them who shall indemnify the others, it
shall be sold and its proceeds
distributed. (404)
Art. 499. The partition of a thing owned
in common shall not prejudice third
persons, who shall retain the rights of
mortgage, servitude or any other real
rights belonging to them before the
division was made. Personal rights
pertaining to third persons against the
co-ownership shall also remain in force,
notwithstanding the partition. (405)
Art. 500. Upon partition, there shall be a
mutual accounting for benefits received
and reimbursements for expenses
made. Likewise, each co-owner shall
pay for damages caused by reason of
his negligence or fraud. (n)
Art. 501. Every co-owner shall, after
partition, be liable for defects of title and
quality of the portion assigned to each of
the other co-owners.
How Co-ownership Is Extinguished
(a) judicial partition
(b) extrajudicial partition
(c) when by prescription, one co-
owner has acquired the whole property
by adverse possession as against all the
others, and repudiating
unequivocally the co-ownership of the
other
(d) when a stranger acquires by
prescription the thing owned in common
 (e) merger in one co-owner
(f) loss or destruction
(g)expropriation (here the
indemnity will be distributed accordingly.
B. Co-ownership v. Partnership
- Partnership can only be formed by
agreement; co-ownership can come
from a variety of sources.
- The goal of a partnership is to make
money; co-ownership is the communal
enjoyment of something.
- A partnership has legal identity distinct
from people, although co-ownership
does not.
- Partnerships can be formed for a
period of more than ten years, but not in
co-ownership.
- Partners are not permitted to transfer
rights without the permission of their co-
partners.
- Partnership terminates when a partner
dies, not co-ownership.
- Profit distribution in partnerships can
be specified; this is not adjustable in co-
ownership but is determined by ideal
share/interest.
C. Co-ownership v. Easement
- An easement is a real right on
another's property, corporeal and
immovable, in which the owner of the
latter is required to refrain from doing or
permitting someone else to do or
something to be done on his property for
the advantage of another person or
tenement.
- An easement offers certain
usage rights without granting ownership,
whereas co-ownership involves many
parties sharing ownership of the
property itself.
- An easement is a non-
possessive right that allows one person
(the easement holder) to utilise the
property of another person for a defined
purpose. It does not confer ownership or
possession of the property, but rather a
limited use or access privilege, whereas
co-ownership refers to numerous
individuals jointly owning a property.
-Each co-owner owns a portion of
the property and may possess, use, and
administer it collectively or individually
based on their respective ownership
percentages.
- There is a split of rights in an
easement between the property owner
(servient estate) and the easement
holder (dominant estate). The estate
owner retains ownership but offers the
dominant estate owner specific usage
rights. Each co-owner has a direct
ownership interest in the entire property,
not just certain usage rights, in co-
ownership. Co-owners have a vested
stake in the company as a whole.
property that can be owned and used
jointly or independently.
- In an easement, the owner of
the servient estate keeps control over
the property and can continue to use it
for their own purposes, subject to the
constraints given by the easement
agreement, but in a co-ownership, they
share control and use it for their own
purposes. Co-ownership agreements or
legal provisions of the Civil Code control
their property management tasks, as
well as their individual rights and
responsibilities.
- Easements can be cancelled in
certain circumstances, including as
abandonment, merging of ownership, or
when they are no longer required for
their intended purpose.
Co-ownership can be terminated
through partition, sale of shares, or other
means.
a co-owner's share, or by mutual
agreement among co-owners.
- Easement rights are frequently
non-transferable, which means that the
easement holder cannot readily sell or
transfer their easement rights to another
party.
Subject to legal and contractual
requirements, rights can normally be
transferred or sold to another party.
- To summarize, easement and
co-ownership are distinct legal notions
that involve different property rights,
control, and ownership systems.
Easement offers specified usage rights
without ownership, whereas co-
ownership involves many parties sharing
ownership of the property itself.
D. Limitations on co-owner’s right to
use
Right to Use Property Owned in
Common
- This article grants each co-owner the
right to use the property for the purpose
intended (said purpose being alterable
by express or implied agreement). BUT
—
(a) the interest of the co-
ownership must not be injured or
prejudiced;
(b) and the other co-owners must
not be prevented from using it.
E. Renunciation by a co-owner of his
share in the co- ownership
- A co-owner may free himself
from this need to compensate by
RENOUNCING (giving up a portion of
his undivided share for the benefit of the
others). be equal to his share of the
expenses and taxes.
- The relinquishing party does not
have to give up his full interest in the co-
ownership.
- The renunciation cannot be
carried out if the co-ownership is
prejudiced.
F. Partition
Effects of Partition
(a) mutual accounting for benefits
received. (Art. 500).
(b) mutual reimbursement for
expenses. (Art. 500).
(c) Indemnity for damages in
case of negligence or fraud. (Art. 500).
(d) reciprocal warranty for:
1) defects of title (or
eviction);
2) quality (or hidden
defects). (Art. 501).
NOTE: If there is a contrary stipulation
or if the eviction is due, there is no
warranty.
Due to the fault of a co-owner, I was
evicted. (See Arts. 1092-1093).
E. each former co-owner is deemed to
have had exclusive possession of the
part. allotted to him for the entire period
during which the co-possession lasted.
(Art. 543).
F. partition confers upon each, the
exclusive title over his respective share.
(See Art. 1091).
G. The Condominium Act
- When Does Ownership Take Place?
The buyer of a condominium unit gains
ownership of the unit only after paying
the full purchase price.
- 'Separate Interest' - Ownership of a Those without which the thing would
condominium unit is the owner's physically deteriorate or be lost., hence
"separate interest," which automatically those made for the preservation of the thing.
makes him a shareholder in the
condominium. POSSESSOR IN BAD FAITH
GOOD FAITH
Possession

Presumption That possessor has a just Right to retain the No right to retain.
title: premises until paid.
Necessary expenses refunded
(a)One must be in possession (actual or
constructive) (b)The possession must be in
the concept of owner. Useful (Gastos Utiles)

LEGAL POSSESSO POSSESSO Those that add value to the property or

OWNER/POSSESS R IN GOOD R IN BAD
OR FAITH FAITH increase the object’s productivity and
usefulness for the satisfaction of
religious/spiritual yearnings or gives rise to
FRUITS Entitled to 1. reimburse all kinds of fruits.
RECEIVED fruits fruits
/ received received/
GATHERE while which legal
D possession Possessors POSSESSOR IN BAD FAITH
is in good
faith before it
could have
received 2.
GOOD FAITH(IN
was legally be CONCEPT OF AN
interrupted. reimbursed
of the OWNER)
expenses in
their Refunded with the Not refunded.
production,
gathering,
useful expenses
and (amount spent or
preservation
PENDING A.1.be liable for A.1. Have a Has no right increase in value at
FRUITS right to a
part of the
whatsoever
as to the
the option of the
expenses pending owner).
cultivation in fruits
proportion to the time expenses Right to retain the No right to retain.
of their possession cultivation
and to a part premises until paid.
2.share in the net
of the net
harvest both
Right to remove Owner gets the
harvest in proportion in proportion improvements improvements
to the time of their to the time of
possession the provided no
B 1.may allow
possession
B. 1. If
substantial damage
possessor in good possessor in is made to the
faith to finish the good faith
cultivation and refuses to premises UNLESS
gathering of the
growing fruits, as an
accept this
concession,
the owner
indemnity for his part he loses the reimburses him
of the expense of right to be
cultivation and the indemnified
net proceeds in any other
manner
CHARGES Share in proportion to
the time of their DAMAGE
possession

Means substantial one that reduces the

value of the property, thus a slight injury
curable by an ordinary repair does not
Expenses defeat the right of removal, but the repairs
Necessary (Gastos Necesarios)
should be chargeable to the possessor, for value which
it is he who benefits by the removal and the owner/legal
object removed. possessor could
have received with
Rights of a possessor (in the concept of due care/diligence
Owner) with respect to luxurious or MINUS necessary
ornamental expenses. expenses for
cultivation,
Pure Luxury or mere pleasure gathering, and
harvesting.
Those that add value to the thing only for
certain determinate persons in view of their
particular whims. They are neither essential PRO RATING of NO RIGHT to
for preservation nor useful to everybody in pending or pending or
general. ungathered fruits ungathered fruits.
pro-rated between
GOOD FAITH BAD FAITH possessor and
owner of expenses,
net harvest, and
Owner has the Owner has the charges.
option to – option to–
• compel the • compel the
possessor to possessor to Neither the possessor in good faith nor
remove remove in bad faith is entitled to:

the improvements; the improvements; (a) Improvements caused by nature (like

or or alluvium)
• retain the 2. retain the (b) Improvements caused by time (like
improvements by improvements by improved flavor of wine)
refunding the
refunding the VALUE AT THE Deterioration or Loss
AMOUNT SPENT. TIME THE OWNER
ENTERS INTO POSSESSOR IN BAD FAITH
POSSESSION. GOOD FAITH

No right to refund/retention Not liable before Liable – whether

May remove improvements, provided no receipt of judicial before or after
SUBSTANTIAL INJURY is made summons. receipt of judicial
summons or
whether due to
Right of possessor (in the concept of fortuitous event or
Owner) to Fruits not.

Good faith Bad Faith

Gathered/severed Return value of After summons:
fruits are his own. gathered/severed
fruits already -Not liable for
received as well as
fortuitous events holder of a
negotiable
-Liable if he acted document of
with negligence or title of the
fraudulent intent goods.

Summary of Recovery or Non-Recovery

Principle (Movable property)
A. Arts. 523-561
Owner may Owner Owner
recover w/o may CANNOT Art. 523. Possession is the holding of a
reimburseme recover recover even thing or the enjoyment of a right.
nt but if he offers
should reimburseme
Art. 524. Possession may be exercised
reimburs nt
e in one's own name or in that of another.

Art. 525. The possession of things or

1. From 1. If 1. If rights may be had in one of two
possessor in possesso possessor concepts: either in the concept of owner,
bad faith; r had acquired or in that of the holder of the thing or
2. From acquired it in good right to keep or enjoy it, the ownership
possessor in the object faith by pertaining to another person.
good faith if in good purchase
the owner faith at a from a Art. 526. He is deemed a possessor in
had lost the PUBLIC merchant’s good faith who is not aware that there
property or SALE or store, or in exists in his title or mode of acquisition
been AUCTIO fairs, or
any flaw which invalidates it.
unlawfully N. markets in
deprived of it. accordance
with the Code He is deemed a possessor in bad faith
of Commerce who possesses in any case contrary to
and special the foregoing.
laws;
Mistake upon a doubtful or difficult
2. If owner is question of law may be the basis of
by his good faith.
conduct is in
estoppel; -Mistake on a Doubtful or Difficult
3. If Question of Law — It is true that
possessor
“ignorance of the law excuses no one”
had obtained
the goods but error in the application of the law,
because he in the legal solutions arising from such
was an application, and the interpretation of
innocent doubtful doctrine can still make a person
purchaser for a transgressor, violator, or possessor in
value and
good faith. For indeed, ignorance of the
law may be based on an error of fact.
Art. 527. Good faith is always presumed,
and upon him who alleges bad faith on
the part of a possessor rests the burden
of proof.
Art. 528. Possession acquired in good
faith does not lose this character except
in the case and from the moment facts
exist which show that the possessor is
not unaware that he possesses the thing
improperly or wrongfully.
Art. 529. It is presumed that possession
continues to be enjoyed in the same
character in which it was acquired, until
the contrary is proved.
Some Presumptions Regarding
Possession
(a) GOOD FAITH — “Good faith
is always presumed.’’ (Art. 527).
(b) CONTINUITY OF
CHARACTER OF POSSESSION
(whether in good
faith or bad faith — “It is presumed that
possession continues to be enjoyed in
the same character in which it was
acquired, until the contrary is proved.’’
(Art. 529).
(c) NON-INTERRUPTION OF
POSSESSION — “The pos- session of
hereditary property is deemed
transmitted to the heir without
interruption, and from the moment of the
death of the decedent, in case the
inheritance is accepted. One who validly
renounces an inheritance is deemed
never to have possessed the same.”
(Art. 533).
(d) PRESUMPTION OF JUST
TITLE — “A possessor in the concept of
owner has in his favor the legal
presumption that he possesses with
just title, and he cannot be obliged to
show or prove it.’’ (Art. 541).
(e) NON-INTERRUPTION OF
POSSESSION OF PROP- ERTY
UNJUSTLY LOST BUT LEGALLY
RECOVERED — “One who recovers,
according to law, possession un- justly
lost, shall be deemed for all purposes
which may redound to his benefit, to
have enjoyed it without inter- ruption.”
(Art. 561).
(f) POSSESSION DURING
INTERVENING PERIOD — “It is
presumed, that the present possessor
who was also the possessor at previous
time, has continued to be in posses-
sion during the intervening time,
unless there is proof to the contrary.”
(Art. 1138[2]).
(g) POSSESSION OF
MOVABLES WITH REAL PROPERTY
— “The
possession of real property presumes
that of the movables therein, so
long as it is not shown or proved that
they should be excluded.” (Art.542).
(h) EXCLUSIVE POSSESSION
OF COMMON PROPERTY — “Each
one of the participants of a thing
possessed in common shall be deemed
to have exclusively possessed the part
which may be allotted to him upon the
division thereof, for the entire period
during which the co-possession lasted.”
(Art. 543).
Art. 530. Only things and rights which
are susceptible of being appropriated
may be the object of possession.
-The object of possession may only be
PROPERTY.
-The following cannot be appropriated
and so cannot be possessed: public
dominion property, res communes, and
easements (whether discontinuous or
continuous). Things that are not clearly
prohibited by law.
• Res nullius (abandoned or ownerless
property) can be possessed but not
obtained through prescription.
Prescription requires prior ownership in
another. However, said "res nullius" can
be obtained by employment.
Art. 531. Possession is acquired by the
material occupation of a thing or the
exercise of a right, or by the fact that it is
subject to the action of our will, or by the
proper acts and legal formalities
established for acquiring such right.
Art. 532. Possession may be acquired
by the same person who is to enjoy it,
by his legal representative, by his agent,
or by any person without any power
whatever: but in the last case, the
possession shall not be considered as
acquired until the person in whose name
the act of possession was executed has
ratified the same, without prejudice to
the juridical consequences of
negotiorum gestio in a proper case.
Art. 533. The possession of hereditary
property is deemed transmitted to the
heir without interruption and from the
moment of the death of the decedent, in
case the inheritance is accepted.
One who validly renounces an
inheritance is deemed never to have
possessed the same.
Art. 534. On who succeeds by
hereditary title shall not suffer the
consequences of the wrongful
possession of the decedent, if it is not
shown that he was aware of the flaws
affecting it; but the effects of possession
in good faith shall not benefit him except
from the date of the death of the
decedent.
Art. 535. Minors and incapacitated
persons may acquire the possession of
things; but they need the assistance of
their legal representatives in order to
exercise the rights which from the
possession arise in their favor.
Art. 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 a 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.
Art. 537. Acts merely tolerated, and
those executed clandestinely and
without the knowledge of the possessor
of a thing, or by violence, do not affect
possession.
Art. 538. Possession as a fact cannot be
recognized at the same time in two
different personalities except in the
cases of co-possession. Should a
question arise regarding the fact of
possession, the present possessor shall
be preferred; if there are two
possessors, the one longer in
possession; if the dates of the
possession are the same, the one who
presents a title; and if all these
conditions are equal, the thing shall be
placed in judicial deposit pending
determination of its possession or
ownership through proper proceedings.
Art. 539. Every possessor has a right to
be respected in his possession; and
should he be disturbed therein he shall
be protected in or restored to said
possession by the means established by
the laws and the Rules of Court.
A possessor deprived of his possession
through forcible entry may within ten
days from the filing of the complaint
present a motion to secure from the
competent court, in the action for
forcible entry, a writ of preliminary
mandatory injunction to restore him in
his possession. The court shall decide
the motion within thirty (30) days from
the filing thereof.
Art. 540. Only the possession acquired
and enjoyed in the concept of owner can
serve as a title for acquiring dominion.
Art. 541. A possessor in the concept of
owner has in his favor the legal
presumption that he possesses with a
just title and he cannot be obliged to
show or prove it.
Art. 542. The possession of real
property presumes that of the movables
therein, so long as it is not shown or
proved that they should be excluded.
Art. 543. Each one of the participants of
a thing possessed in common shall be
deemed to have exclusively possessed
the part which may be allotted to him
upon the division thereof, for the entire
period during which the co-possession
lasted. Interruption in the possession of
the whole or a part of a thing possessed
in common shall be to the prejudice of
all the possessors. However, in case of
civil interruption, the Rules of Court shall
apply.
Art. 544. A possessor in good faith is
entitled to the fruits received before the
possession is legally interrupted.
Natural and industrial fruits are
considered received from the time they
are gathered or severed.
Civil fruits are deemed to accrue daily
and belong to the possessor in good
faith in that proportion.
Art. 545. If at the time the good faith
ceases, there should be any natural or
industrial fruits, the possessor shall have
a right to a part of the expenses of
cultivation, and to a part of the net
harvest, both in proportion to the time of
the possession.
The charges shall be divided on the
same basis by the two possessors.
The owner of the thing may, should he
so desire, give the possessor in good
faith the right to finish the cultivation and
gathering of the growing fruits, as an
indemnity for his part of the expenses of
cultivation and the net proceeds; the
possessor in good faith who for any
reason whatever should refuse to accept
this concession, shall lose the right to be
indemnified in any other manner.
Art. 546. Necessary expenses shall be
refunded to every possessor; but only
the possessor in good faith may retain
the thing until he has been reimbursed
therefor.
Useful expenses shall be refunded only
to the possessor in good faith with the
same right of retention, the person who
has defeated him in the possession
having the option of refunding the
amount of the expenses or of paying the
increase in value which the thing may
have acquired by reason thereof.
Art. 547. If the useful improvements can
be removed without damage to the
principal thing, the possessor in good
faith may remove them, unless the
person who recovers the possession
exercises the option under paragraph 2
of the preceding article.
Art. 548. Expenses for pure luxury or
mere pleasure shall not be refunded to
the possessor in good faith; but he may
remove the ornaments with which he
has embellished the principal thing if it
suffers no injury thereby, and if his
successor in the possession does not
prefer to refund the amount expended.
Art. 549. The possessor in bad faith
shall reimburse the fruits received and
those which the legitimate possessor
could have received, and shall have a
right only to the expenses mentioned in
paragraph 1 of Article 546 and in Article
443. The expenses incurred in
improvements for pure luxury or mere
pleasure shall not be refunded to the
possessor in bad faith, but he may
remove the objects for which such
expenses have been incurred, provided
that the thing suffers no injury thereby,
and that the lawful possessor does not
prefer to retain them by paying the value
they may have at the time he enters into
possession.
Art. 550. The costs of litigation over the
property shall be borne by every
possessor.
Art. 551. Improvements caused by
nature or time shall always insure to the
benefit of the person who has
succeeded in recovering possession.
Art. 552. A possessor in good faith shall
not be liable for the deterioration or loss
of the thing possessed, except in cases
in which it is proved that he has acted
with fraudulent intent or negligence,
after the judicial summons.
A possessor in bad faith shall be liable
for deterioration or loss in every case,
even if caused by a fortuitous event.
Art. 553. One who recovers possession
shall not be obliged to pay for
improvements which have ceased to
exist at the time he takes possession of
the thing. (458)
Art. 554. A present possessor who
shows his possession at some previous
time, is presumed to have held
possession also during the intermediate
period, in the absence of proof to the
contrary.
Art. 555. A possessor may lose his
possession:
(1) By the abandonment of the
thing;
(2) By an assignment made to
another either by onerous or
gratuitous title;
(3) By the destruction or total loss
of the thing, or because it goes
out of commerce;
 (4) By the possession of another,
subject to the provisions of Article
537, if the new possession has
lasted longer than one year. But
the real right of possession is not
lost till after the lapse of ten
years.
Art. 556. The possession of movables is
not deemed lost so long as they remain
under the control of the possessor, even
though for the time being he may not
know their whereabouts.
Art. 557. The possession of immovables
and of real rights is not deemed lost, or
transferred for purposes of prescription
to the prejudice of third persons, except
in accordance with the provisions of the
Mortgage Law and the Land
Registration laws.
Art. 558. Acts relating to possession,
executed or agreed to by one who
possesses a thing belonging to another
as a mere holder to enjoy or keep it, in
any character, do not bind or prejudice
the owner, unless he gave said holder
express authority to do such acts, or
ratifies them subsequently.
Art. 559. The possession of movable
property acquired in good faith is
equivalent to a title. Nevertheless, one
who has lost any movable or has been
unlawfully deprived thereof may recover
it from the person in possession of the
same.
Possession of movable acquired in Bad
Faith – not equivalent to title
Possession of movable acquired in
Good Faith:
-Equivalent to title
-Owner may recover:
-if he lost the same or
-he has been unlawfully deprived
-Exception: Possessor
acquired the movable in Good Faith at a
public sale, hence, owner must
reimburse the price paid.
If the possessor of a movable lost or
which the owner has been unlawfully
deprived, has acquired it in good faith at
a public sale, the owner cannot obtain
its return without reimbursing the price
paid therefor.
Art. 560. Wild animals are possessed
only while they are under one's control;
domesticated or tamed animals are
considered domestic or tame if they
retain the habit of returning to the
premises of the possessor. (465)
Art. 561. One who recovers, according
to law, possession unjustly lost, shall be
deemed for all purposes which may
redound to his benefit, to have enjoyed it
without interruption.
B. Kinds of Possession
(Art. 524) Possession in Another’s
Name
(a) Voluntary — as when an agent
possesses for the principal (by
virtue of agreement).
(b) (b) Necessary — as when a
mother possesses for a child still
in the maternal womb.
(c) Unauthorized — (This will
become the principal’s pos-
session only after there has
been a ratification without
prejudice to the effects of
negotiorum gestio.)
C. Acquisition of Possession
(Art. 531) How Is Possession Acquired?
(a) By material occupation
(detention) of a thing or the exercise of a
right (quasi-possession). (This also
includes constitutum possessorium or
traditio brevi manu.)
(a) Constitutum possessorium
exists when a person who possessed
property as an owner, now possesses it
in some
other capacity, as that of lessee or
depositary.
(b) Traditio brevi manu — (the
opposite of constitutum possessorium)
— this exists when a person who
possessed
property not as an owner (like a lessee),
now possesses it as owner.
(c) Traditio longa manu (delivery
by the long hand) — delivery by
consent or mere pointing.
(b) By subjection to our will (this
includes traditio longa manu — by mere
agreement; or by the delivery of keys —
traditio simbolica) (clearly, this does not
require actual physical detention or
seizure).
(c) By constructive possession or proper
acts and legal formalities (such as
succession, donation, execution of
public instruments; or thru the
possession by a sheriff by virtue of a
court order.)
• Essential Requirements for
Possession
(a) the corpus (or the thing physically
detained).
(b) the animus or intent to possess
(whether evidenced expressly or
impliedly).
Constructive Possession of Land
- There is no claim of title if a
whole parcel is owned. unless a portion
of the parcel is in constructive
possession is adversely possessed by
someone else. However, the area must
be within acceptable boundaries —
simply erecting a placard is insufficient.
D. Ownership/Possession since time
immemorial, R.A. 8371, secs. 3 a&b,
7, 8
SECTION 3. Definition of Terms. — For
purposes of this Act, the following
terms shall mean:
a) Ancestral Domains — Subject
to Section 56 hereof, refer to all areas
generally belonging to ICCs/IPs
comprising lands, inland waters, coastal
areas, and natural resources therein,
held under a claim of ownership,
occupied or possessed by ICCs/IPs, by
themselves or through their
ancestors, communally or individually
since time immemorial, continuously to
the present except when interrupted by
war, force majeure or displacement by
force, deceit, stealth or as a
consequence of government projects or
any other voluntary dealings entered
into by government and private
individuals/
corporations, and which are necessary
to ensure their economic, social and
cultural welfare. It shall include ancestral
lands, forests, pasture, residential,
agricultural, and other lands individually
owned whether alienable and
disposable or otherwise, hunting
grounds, burial grounds, worship areas,
bodies of water, mineral and other
natural resources, and lands which may
no longer be exclusively occupied by
ICCs/IPs but from which they
traditionally
had access to for their subsistence and
traditional activities, particularly the
home ranges of ICCs/IPs who are still
nomadic and/or shifting cultivators;
b) Ancestral Lands — Subject to
Section 56 hereof, refers to land
occupied, possessed and utilized by
individuals, families and clans who are
members of the ICCs/IPs since time
immemorial, by themselves or through
their predecessors-in-interest, under
claims of individual or traditional group
ownership, continuously, to the present
except when interrupted by war, force
majeure or displacement by force,
deceit, stealth, or as a consequence of
government projects and other voluntary
dealings entered into by government
and private individuals/corporations,
including, but not limited to, residential
lots, rice terraces or paddies, private
forests, swidden farms and tree lots;
SECTION 7. Rights to Ancestral
Domains.
The rights of ownership and
possession of ICCs/IPs to their ancestral
domains shall be recognized and
protected. Such rights shall include:
a. Right of Ownership. — The
right to claim ownership over lands,
bodies of
water traditionally and actually occupied
by ICCs/IPs, sacred places, traditional
hunting and fishing grounds, and all
improvements made by them at any
time within the domains;
b. Right to Develop Lands and
Natural Resources. — Subject to
Section 56 hereof, right to develop,
control and use lands and territories
traditionally
occupied, owned, or used; to manage
and conserve natural resources within
the territories and uphold the
responsibilities for future generations; to
benefit and share the profits from
allocation and utilization of the natural
resources found therein; the right to
negotiate the terms and conditions for
the
exploration of natural resources in the
areas for the purpose of ensuring
ecological, environmental protection and
the conservation measures, pursuant to
national and customary laws; the right to
an informed and intelligent participation
in the formulation and implementation of
any project, government or private, that
will affect or impact upon the ancestral
domains and to receive just and fair
compensation for any damages which
they may sustain as a result of the
project; and the right to effective
measures by the government to prevent
any interference with, alienation and
encroachment upon these rights;
c. Right to Stay in the Territories.
— The right to stay in the territory and
not to be removed therefrom. No
ICCs/IPs will be relocated without their
free and
prior informed consent, nor through any
means other than eminent domain.
Where relocation is considered
necessary as an exceptional measure,
such relocation shall take place only
with the free and prior informed consent
of the
ICCs/IPs concerned and whenever
possible, they shall be guaranteed the
right to return to their ancestral domains,
as soon as the grounds for relocation
cease to exist. When such return is not
possible, as determined by agreement
or through appropriate procedures,
ICCs/IPs shall be provided in all
possible cases with lands of quality and
legal status at least equal to that of the
land previously occupied by them,
suitable to provide for their present
needs and future development. Persons
thus relocated shall likewise be fully
compensated for any resulting loss or
injury;
d. Right in Case of Displacement.
— In case displacement occurs as a
result of natural catastrophes, the State
shall endeavor to resettle the displaced
ICCs/IPs in suitable areas where they
can have temporary life support
systems: Provided, That the displaced
ICCs/IPs shall have the right to return
to their abandoned lands until such time
that the normalcy and safety of such
lands shall be determined: Provided,
further, That should their ancestral
domain cease to exist and normalcy and
safety of the previous settlements
are not possible, displaced ICCs/IPs
shall enjoy security of tenure over lands
to which they have been resettled:
Provided, furthermore, That basic
services and livelihood shall be provided
to them to ensure that their needs are
adequately addressed;
e. Right to Regulate Entry of
Migrants. — Right to regulate the entry
of
migrant settlers and organizations into
the domains;
f. Right to Safe and Clean Air and
Water. — For this purpose, the ICCs/IPs
shall have access to integrated systems
for the management of their inland
waters and air space;
g. Right to Claim Parts of
Reservations. — The right to claim parts
of the ancestral domains which have
been reserved for various purposes,
except those reserved and intended for
common public welfare and service; and
h. Right to Resolve Conflict. —
Right to resolve land conflicts in
accordance with customary laws of the
area where the land is located, and only
in default thereof shall the complaints be
submitted to amicable settlement and to
the Courts of Justice whenever
necessary.
SECTION 8. Rights to Ancestral Lands.
— The right of ownership and
possession of the ICCs/IPs to their
ancestral lands shall be recognized and
protected.
a) Right to transfer land/property. —
Such right shall include the right to
transfer land or property rights to/among
members of the same ICCs/IPs,
subject to customary laws and traditions
of the community concerned.
b) Right to Redemption. — In
cases where it is shown that the transfer
of land/property rights by virtue of any
agreement or devise, to a non-member
of the concerned ICCs/IPs is tainted by
the vitiated consent of the ICCs/IPs, or
is transferred for an unconscionable
consideration or price, the transferor
ICC/IP shall have the right to redeem
the same within a period not exceeding
fifteen (15) years from the date of
transfer.
E. Effects of Possession
(Art. 539)Right to be Respected in
Possession — General Nature
This article speaks of three (3) important
things:
(a) right of a person to be
respected in his possession (first effect
of possession).
(b) protection in said right or
restoration to said possession thru
legal means. [Under Art. 428 which
speaks of the right of an owner
(and also a possessor) to recover the
property from whoever is holding
the same.
(c) the writ of preliminary
mandatory injunction.
Specific Right to be Respected in
Possession
(a) Reasons for Protection of
Possession:
1) Possession is very
similar to ownership, and as a
matter of fact modifies ownership.
2) Possession almost
invariably gives rise to the pre-
sumption that the possessor is
the owner.
(b) “Every possessor’’ is
protected under Art. 539, whether in the
concept of owner or in the concept of
holder.
(Art. 540) Possession in the Concept of
Owner
- a possessor merely in the concept of
holder cannot acquire property by
acquisitive prescription. (This is because
here the possession, far from being
adverse, recognizes right of ownership
in others.
Possession in the Concept of Holder
- The following cannot therefore acquire
ownership by prescription (as
long as they remain such — mere
possessors in the concept of holder):
(a) Lessees. or those merely
permitted to occupy. The mere fact of
working over a parcel of land without
expressing the concept in which the land
was be- ing worked on is no proof that
the land is owned by the one working
nor proof that the possession is in the
concept of owner. The possession may
have been as mere tenant.
(b) Trustees. These include:
1) parents over the
properties of their unemancipated
minor children or insane children
(Art. 1109);
2) husband and wife over
each other’s properties, as long
as the marriage lasts, and even if
there be a separation of property
which had been agreed upon in a
marriage settlement or by judicial
decree. (Art. 1109).
(c) Antichretic creditors
(d) Agents
(e) Attorneys (regarding their
client’s properties).
(f) Depositaries
(g) Co-owners (unless the co-
ownership is clearly repudiated by
unequivocal acts communicated to the
other co-owners).
(Art. 541) Kinds of Titles
1. True and Valid Title — ‘just title’ in Art
541; It is defined as a title which by
itself is sufficient to transfer ownership
without the necessity of letting the
prescriptive period elapse.
2. Colorable Title — That title where,
although there was a mode of
transferring ownership, still something is
wrong, because the grantor is NOT the
owner.
-Ordinary prescription needs
good faith and just title, hence he may
become owner of the thing by
prescription after 4 years (the thing
being personal property).
-Extraordinary prescription does
not need either good faith or just
title, hence although there may be just
title (titulo colorado), he may get
ownership by prescription only after 8
years.
-In case of real properties, the
prescriptive periods are 10 years and 30
years respectively for ordinary and
extraordinary prescription.
(Art. 542) Applicability of the Article
(a) whether the possessor be in good
faith or bad faith
(b) whether the possession be in one’s
own name or in another’s
(c) whether the possession be in
concepto de dueno or in the concept of
holder. Thus, the lessee of a building is
presumed to be the possessor
of the movables found therein, for he
who needs them is supposed to
have been the one who introduced the
movables into the building.
(Art. 544)
Right of a Possessor in Good Faith to
Fruits Already Received
- First Paragraph: “A possessor in
good faith is entitled to the fruits
received before the possession is legally
interrupted.’’
- Reason for the law: Justice
demands that the fruits be retained by
the possessor who thought that he was
really the owner of the property, and
who, because of such thought had
regulated his daily life, income, and
expenses by virtue of such fruits.
Moreover, the possessor should be
rewarded for having contributed to the
INDUSTRIAL WEALTH, unlike the
owner, who by his presumed
negligence, had virtually discarded his
property.
When Natural and Industrial Fruits are
Considered Received
-Second Paragraph: “Natural and
industrial fruits are considered
received from the time they are gathered
or severed.”
(a) If at the time of legal
interruption, the crops are still
growing, the rule on pending
crops, not that on gathered crops,
should apply. (See Art. 545).
(b) If at the time of legal
interruption, the crops have
already been gathered, but are
sold only after such interruption,
the sale is immaterial, for the law
requires only a gathering or
severance, so Art. 544 applies.
When Civil Fruits Are Deemed to Accrue
- Third Paragraph: “Civil fruits are
deemed to accrue daily and belong to
the possessor in good faith in that
proportion.’’
a. If civil fruits (like rents)
are accrued daily, Art. 545 does
not apply.
b. Actual receipt of the
rents is immaterial; hence, even if
received only, for example, on the
30th of a month, all rents accrued
before the 21st of the month
(date for example of legal
interruption) should belong to the
possessor in good faith.
(Art. 545) This article applies to
PENDING fruits, natural or industrial.
Sharing of expenses and charges:
-The expenses for cultivation shall also
be divided pro rata (2 to 4).
-The law says “the possessor shall have
a RIGHT to a part of the expenses
for cultivation in proportion to the time of
possession. (This may in certain
cases be UNFAIR because although he
may have spent MORE than the
owner, still he will be entitled to a
reimbursement of LESS since his
possession is shorter. The better rule
would be for the expenses to be
borne in proportion to what each
receives from the harvest.) (See Art.
443). Otherwise, unjust enrichment
would result.
-The charges (those incurred because of
the land and the fruits, like
TAXES, or INTEREST on MORTGAGES
are what are referred to as
CHARGES, and not those incurred on or
in them, such as improvements)
are also to be di- vided in proportion to
the time of possession. (Art. 545,
2nd par.)
-NOTE: Art. 545 only applies to a
possessor acting in GOOD FAITH. The
possessor in bad faith has no title to
fruits already collected or fruits yet
pending, except that in the former
instance (gathered fruits), he receives
reimbursement for the necessary
expenses for fruit production, collection,
and preservation.
-The concept of accession applies to
awaiting fruits, and The law stipulates
unequivocally that whomever plants or
sows in BAD FAITH on the whoever
plants or sows on another's land loses
whatever is planted or sowed without
the authority to do so
indemnity. (Art. 449)
Art. 545 applies to pending crops.
- Should the article also apply if the
crops have already been planted but are
not yet visible at the time of the transfer
of possession? The response is YES, as
submitted by the implementation of the
general guidelines outlined in Art. 443
- The possessor's gathering of a portion
of the pending fruits does not always
undermine possession of the land in
another person.
(Art. 546) Necessary Expenses — those
without which the thing would physically
deteriorate or be lost; hence, those
made for the preservation of the thing.
Rights of a Possessor (in the Concept of
Owner) as to the Necessary Expenses
(a) If in good faith — entitled to:
1) refund
2) retain premises till paid
(b) If in bad faith — entitled ONLY to a
refund (no right of RETENTION, as
penalty).
Useful Expenses — those that add
value to the property or increase the
object’s productivity), or useful for the
satisfaction of spiritual and religious
yearnings, or give rise to all kinds of
fruits.
Rights of a Possessor (in the
Concept of Owner) as to the
Necessary Expenses
(a) If in good faith —
entitled to:
1) right to REIMBURSEMENT (of either
the amount spent or the increase in
value — “plus value” — at OWNER’S
OPTION). (Art. 546).
(b) If in bad faith —
1. NOT ENTITLED to any
right regarding the useful
expenses.
(Art. 547) "Damage" here refers to
significant damage that diminishes the
value of the property; consequently, a
minor injury curable by routine repair
does not negate the right of removal;
however, the repairs should be billed to
the possessor, as he benefits from the
removal and the object removed.
(Art. 548) Rights of a Possessor (in the
Concept of Owner) with Reference to
Luxurious or Ornamental Expenses
(a) If in GOOD faith:
- In general, no right of refund or
retention but can remove if no
substantial injury is caused. However,
owner has OPTION to allow:
1) possessor to remove
2) or retain for himself (the
owner) the ornament by
REFUNDING the AMOUNT SPENT.
(Art. 548).
(b) In BAD faith:
- In general, no right of refund or
retention but can remove if no
substantial injury is caused. However,
owner has OPTION to allow:
1) possessor to remove; or
2) retain for himself (the
owner) the ornament by
REFUNDING the VALUE it has at
the TIME owner ENTERS INTO
POSSESSION. (Art. 549).
*The only difference is the amount of the
REFUND if the option is exercised. The
value of the reimbursement if the
possessor is acting in bad faith is
manifestly LESS, because depreciation
has occurred in the meantime.
has taken hold.*
(Art. 549) Right of the Possessor (in the
Concept of Owner) Regarding FRUITS.
(a) If in GOOD faith:
1) Gathered or severed or
harvested fruits are his own. (Art. 544)
2) pending or ungathered fruits —
(pro-rating between possessor and
owner of expenses, net harvest, and
charges). (See Art. 545).
(b) If in BAD faith:
1. gathered fruits — must return
value of fruits already received as
well as value of fruits which the owner or
legitimate possessor (not
the possessor in bad faith) could HAVE
received with due care ordiligence,
MINUS necessary expenses for
cultivation, gather- ing, and harvesting,
to prevent the owner from being unjustly
enriched.(See Arts. 549, 443)
2. pending or ungathered fruits —
no rights at all, not even to expenses for
cultivation because by accession, all
should belong to the owner, without
indemnity. (See Art. 449).
-The possessor who acts in bad faith is
obligated to account for the fruits
obtained or could have received and
must pay damages equal to a
reasonable rent for the length of his
possession.
-The fruits rule does not apply to a
defendant in a forced entrance action
where the recoverable damages are
reasonable remuneration for the use
and occupation of the property. The fair
rental value of the premises.
(Art. 555) Ways of Losing Possession
(a) Thru the Possessor’s Voluntary Will
and Intent
1) Abandonment. (Art. 555)
- voluntary renunciation of
a thing
 - Requisites:
- the abandoner must have
been a possessor in the concept
of owner (either an owner or
mere possessor may respectively
abandon either ownership or
possession).
- the abandoner must have
the capacity to renounce or to
alienate (for abandonment is the
repudiation of a property right).
- there must be a physical
relinquishment of the thing or
object.
- there must be no more
spes recuperandi (expectation to
recover) and no more animus
revertendi (intent to return or get
back).
2) Assignment (onerous or
gratuitous conveyance). (Art. 555).
- the complete (not merely
a limited) transmission of
ownership rights to another
person, onerously (as when a
thing is sold and delivered) or
gratuitously (as in the case of a
donation).
(b) Against the Possessor’s Will
1) possession of another for more than
one year. (Art. 555).
- If a person is not in possession
for more than one year (but less
than 10 years), he loses possession de
facto (pos- session as a fact). This
means that he can no longer bring an
action of forcible entry or unlawful
detainer, since the prescriptive period is
one year for such actions.
- Constructive possession is also
lost BUT he may still institute an
accion publiciana (for the better right of
possession) to recover possession de
jure possession as a legal right, or the
real right of possession.
2) final judgment in favor of another
(with a better right).
3) expropriation
4) prescription in favor of another.
5) recovery or revindication by the
legitimate owner or possessor.
(c) Because of the Object
1) destruction or total loss of the thing.
(Art. 555).
- A thing is lost when it perishes,
or goes out of commerce, or
disappears in such a way that its
existence is unknown, or it cannot
be recovered. (Art. 1189).
- Partial loss in general results
only in the loss of posses- sion of the
part lost, although the rule in obligations
and contracts is that “the courts shall
determine whether, under the
circumstances, the partial loss of the
object of the obligation is so important
as to extinguish
the obligation.” (Art. 1264).
2) going out of commerce. (Art. 555).
3) escaping from possessor’s control of
wild animals. (Art. 560).
(Art. 556) When Possession of
Movables is Lost or Not Lost
- If the possessor has no notion
where the item is located. moveable,
possession is gone, but not when he
knows what it is he may know its broad
location, but not its particular or
definitive location. In the former, he has
lost legal control; in the latter, the object
remains in his possession (rather than in
the possession of another).
(Art. 559) Summary of Recovery or Non-
Recovery Principle
(a) Owner MAY RECOVER WITHOUT
REIMBURSEMENT:
1) from possessor in bad faith.
 2) from possessor in good faith (if
owner had LOST the property or
been unlawfully deprived of it) (the
acquisition being from a private
person). (Art. 559).
(b) Owner MAY RECOVER but should
REIMBURSE:
1) if possessor acquired the
object in good faith at a PUBLIC SALE
or
AUCTION. (Art. 559). [Because the
publicity attendant to a public
sale should have been sufficient warning
for the owner to come forward and claim
the property.
(c) Owner CANNOT RECOVER, even if
he offers to REIMBURSE
(whether or not the owner had lost or
been unlawfully deprived):
1) if possessor had acquired it in
good faith by purchase from a
merchant’s store, or in fairs, or markets
in accordance with the
Code of Commerce and special laws.
2) if owner “is by his conduct
precluded from denying the seller’s
authority to sell. (ESTOPPEL). (Art.
1505).
3) if possessor had obtained the
goods because he was an innocent
purchaser for value and holder of a
NEGOTIABLE document of title
to the goods. (See Art. 1518).
(Art. 560)
-Possession of Wild Animals
-One’s possession of wild
animals is lost when they are under
ANOTHER’S control or under NO
ONE’S control (as when they have
regained their NATURAL FREEDOM
and have become res nullius).
Reason: Possession was only
conceivable when power or force was
wielded over them. When you remove
that control, you instantly remove
possession.
-Domesticated or Tamed Animals
-Wild animals which have
become tame and now generally submit
to man’s control are called
DOMESTICATED and TAMED animals.
Rules:
A. The possessor does not lose
possession of them — AS LONG AS
habitually they return to the possessor’s
premises. (Art. 560).
B. Impliedly, possession of them
is lost if the aforementioned habit has
ceased. (But insofar as OWNERSHIP is
concerned, Art. 716 applies. It says:
“The owner of domesticated animals
may claim them within twenty days, to
be counted from their occupation by
another person. This period having
expired [without the claim having been
made], they shall pertain to him who has
CAUGHT and KEPT them.”).
(Art. 561) Applicability of Article only if
Beneficial
-Art. 561 applies to both good
and bad faith possessors, but only if it is
beneficial to them. As a result, a
possessor in GOOD FAITH, for this
article can be used for prescription
purposes. However, a possessor in BAD
faith is not required to return the fruits
that the owner could have obtained
during the interruption, because
imposing this duty would disadvantage,
rather than benefit, the possessor.