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Introduction composition, he will be the owner of that

composition. (see Art. 721)


MODULE 1
• Succession - Succession is a mode of
Introduction acquisition by virtue of which the property,
What is Property? rights and obligations to the extent of the value
of the inheritance, of a person are transmitted
• Property is defined as anything that is or can through his death to another or others either by
be appropriated. (See Art. 414) his will or by operation of law. (Art. 774)

What does appropriation mean? • Traditio (delivery) – This can be a mode of


acquiring ownership if the delivery is made in
• To make one’s own
consequence of certain contracts. (see Art. 712)
• To subject to ownership
• Occupation - Things appropriable by nature
• This simply means that anything that can be which are without an owner, such as animals
owned, or is already owned is that are the object of hunting and fishing,
hidden treasure and abandoned movables, are
considered “property”. In this definition, it is acquired by occupation. (Art. 713)
clear that ownership (or the
• Law – This simply means that ownership can
possibility of ownership) is material to the be acquired by provision of law. (Ex: Art.438 –
concept of Property. this provision governs ownership of hidden
treasures.)
• Note that all property are things, but not all
things are property. • Donation - Donation is an act of liberality
whereby a person disposes gratuitously of a
Introduction
thing or right in favor of another, who accepts
• Because ownership (or its acquisition) is it. (Art. 725)
material to the definition of what a property is,
• Note that in this subject, we will cover
What are the modes of acquiring ownership Occupation and Donation. The other modes will
under our laws? be covered by your other subjects.

PISTOL-D (Art. 712) Are all things considered property?

• Prescription - By prescription, one acquires • No. Property is defined as anything that is or


ownership and other real rights through the can be appropriated. If a thing is not
lapse of time in the manner and under the appropriated AND it cannot be appropriated,
conditions laid down by law. (Art.1106) then it is not considered property.

• Intellectual Creation – This simply means that • Note that the term property is not limited to
if a composer makes a musical tangible or corporeal things, under our law,
intangible or incorporeal things may be
property.
• Ex: ideas like a musical composition can be cannot be acquired through prescription, while
property. properties of private dominion can be acquired
through prescription.
Classification of Things
As to Existence
• Res nullius – belonging to no one (yet to be
owned) • Present property

Ex: wild animals • Future property

• Res communes – belonging to everyone Example of different rules: under the law on
(cannot be owned donations, future property cannot be donated.

individually) As to Alienability

Ex: air, wind, sunlight • Within the commerce of man

Res alicujus – belonging to someone (already • Outside the commerce of man


subjected to ownership)
Example of different rules: under the law on
Ex: pen, book contracts, if the object of a contract is a thing
that is outside the commerce of man, then the
Classification of Property (and why is it contract will be void.
important) Materiality or Immateriality
Classification of Property • Tangible or corporeal
As to Mobility and Non-mobility • Intangible or incorporeal
• Personal or movables Example of different rules: under the law on
• Real or immovables sales, tangible and intangible properties require
different modes of delivery to transfer
Example of different rules: under the law on ownership.
donation, different formalities are required
Dependence or Importance
for personal property and real property.
• Principal
As to Ownership
• Accessory
• Properties of public dominion
Example of different rules: under the law on
• Properties of private dominion accession, there is a general rule that states
that the accessory follows the principal. It is
Example of different rules: under the law on
material to know which between two attached
prescription, properties of public dominion
properties is the principal and the accessory.

Capability of Substitution
• Fungible • Immovable and movables.

• Non-fungible Why is it important to know whether a


property is real or personal?
Example of different rules: under the law on
usufruct, different rules will govern if the object • It is important to know because different laws
of the usufruct is fungible or non-fungible. govern each kind.

Nature or Definiteness Can the parties decide on the classification of


properties? Can a party decide to classify a
• Generic parcel of land as personal?
• Specific • No. it is the law which dictates the
Example of different rules: under the law on classification of a property and not the will of
obligations, loss of a generic thing will not the parties.
extinguish the obligation to deliver a generic • Note however, that if they do so classify, they
thing. While loss of a specific thing generally are estopped from questioning such erroneous
extinguishes the obligation to deliver that classification.
specific thing.
What is the principle of estoppel?
Whether in custody of the court
• It is a principle which precludes a person from
• Property in custodia legis asserting something contrary to what is implied
• Free property by a previous action or statement of that
person.
• Example of different rules: under the rules of
civil procedure, an action for replevin (recovery Example:
of possession of personal property) cannot be A decided to mortgage his building in favor of B.
used against properties in custodia legis. They agreed to treat the building as personal
Classification of Property as to thus they entered into a chattel mortgage
instead of a real estate mortgage. (in this case,
Mobility the building is still real property, BUT the parties
cannot question the error in the chattel
Module 2.1
mortgage because they are prevented by the
ARTICLE 414. All things which are or may be principle of estoppel)
the object of appropriation are considered
ARTICLE 415
either:
ARTICLE 415. The following are immovable
• (1) Immovable or real property; or
property:
• (2) Movable or personal property.
(1) Land, buildings, roads and constructions of
What are the two kinds of properties all kinds adhered to the soil;
indicated in Art. 414?
(2) Trees, plants, and growing fruits, while they What are the academic classifications of real
are attached to the land or form an integral property?
part of an immovable;
Real property by nature
(3) Everything attached to an immovable in a
fixed manner, in such a way that it cannot be • Properties by their own nature are immovable
separated therefrom without breaking the Ex: Lands.
material or deterioration of the object;
Real property by incorporation
(4) Statues, reliefs, paintings or other objects
for use or ornamentation, placed in buildings • Properties made immovable because they are
or on lands by the owner of the immovable in attached to an immovable
such a manner that it reveals the intention to
Ex: Buildings (attached to the soil)
attach them permanently to the tenements;
What are the academic classifications of real
(5) Machinery, receptacles, instruments or
property?
implements intended by the owner of the
tenement for an industry or works which may Real property by destination
be carried on in a building or on a piece of
land, and which tend directly to meet the • Properties considered immovable because of
needs of the said industry or works; their purpose

(6) Animal houses, pigeon-houses, beehives, Ex: Machineries (Par. 5)


fish ponds or breeding places of similar nature,
Real property by analogy
in case their owner has placed them or
preserves them with the intention to have • Properties considered immovable because of
them permanently attached to the land, and a legal provision
forming a permanent part of it; the animals in
these places are included; EX. Contracts for public works (Par. 10)

(7) Fertilizer actually used on a piece of land; (1) Land, buildings, roads and constructions of

(8) Mines, quarries, and slag dumps, while the all kinds adhered to the soil;
matter thereof forms part of the bed, and
How many real properties are included in par.
waters either running or stagnant;
1 or Art. 415?
(9) Docks and structures which, though
• Two. Lands and constructions of all kinds
floating, are intended by their nature and
(including buildings LOL), adhered to the soil.
object to remain at a fixed place on a river,
lake, or coast; Is land an immovable property?

(10) Contracts for public works, and servitudes • Yes under Art. 415, SO LONG AS it is adhered
and other real rights over immovable property. to the soil. This means that a shovelful of
dirt(soil) is no longer considered real property.
Are buildings immovable property? • In this case however, the principle of estoppel
applies.
• Yes, provided these three elements are
present: Ex: A decided to mortgage his building in favor
of B. They agreed to treat the building as
1. The constructions are more or less personal thus they entered into a chattel
permanent structures mortgage instead of a real estate mortgage.
2. The constructions substantially adheres to Can A and B do this?
the land
• Yes.
3.There is intent of permanent annexation
(intent to attach the construction permanently One element of validity of a chattel mortgage
to the land) is its registration with the registry of property.
Can A and B register their agreement?
Is it required that the one who made the
construction is the owner of the land? • Yes.

• No. There is no such requirement by the law. Can the registrar refuse to register the
agreement on the ground that the property is
• But note that if the construction was not real and not personal?
made by the owner of the land, there can be an
indication that there is no intention of • No. the duty of the registrar is ministerial in
permanent annexation. nature. The registrar cannot refuse to register.
It is not the duty of the registrar to determine
Are Shipping Container Homes considered real the validity of the agreement.
property under Par. 1 of Art. 415?
Will the registration bind third persons?
• No, these container homes are not adhered to
the soil. • No, the Supreme Court has held the mortgage
is still void insofar as third persons are
If the building is already destroyed, are the concerned because the chattel mortgage
materials are considered real property? contains real property.
• No more. It is not among those enumerated • BUT again, as to the parties, they are bound
under Art. 415. by their representations by reason of the
Can parties treat buildings as personal principle of estoppel. This means that the
property? parties cannot question the validity of the
chattel mortgage on the ground that the
• Yes. The parties to a contract involving a building is real property and not personal.
building may stipulate that the building be
treated as personal property. However, such (2) Trees, plants, and …
stipulation will not change the character of the • (2) Trees, plants, and growing fruits, while
building as personal property. It is the law they are attached to the land or form an
which classifies property into real or personal. integral part of an immovable;
Are trees, plants, and growing fruits real • 3) Everything attached to an immovable in a
property? What are the requisites for them to fixed manner, in such a way that it cannot be
be considered real property? separated therefrom without breaking the
material or deterioration of the object;
• Yes, PROVIDED they are attached to the land
OR form an integral part of an immovable. When is a thing attached to an immovable is
also considered an immovable?
• Integral = essential (Ex. In a timber land, even
uprooted timber are considered real property • When the thing is attached to an immovable
because they form an integral part of the in a fixed manner.
immovable timber land.
When is the attachment considered fixed?
• Note that if the trees, plants, and growing
fruits are not attached to the land nor form an • If the attachment is in such a way that it
integral part of an immovable, then they are not cannot be separated therefrom without
real property under Par. 2. breaking the material or deterioration of the
object.
• NOTE however that under the chattel
mortgage law, growing crops are considered • Note that the damage due to the separation
personal property. This simply means that if the must be substantial in order to consider the
subject of a chattel mortgage are growing crops, attached thing as immovable.
they are considered personal property What object?
notwithstanding Art. 415 of the Civil Code.
This is an exception to Art. 415 by provision of • The immovable upon which the thing is
law (chattel mortgage law). attached. (Board of Assessment Appeals v.
Meralco)
• Moreover, sale of growing crops are
considered sale of personal property. Because Is it required that the thing be attached by the
they are sold in the understanding that they are owner of the immovable?
to be gathered.
• No. there is no such requirement. The only
Is it essential that the one who planted the requirement is that the thing is attached in a
trees or growing crops is the owner of the land fixed manner in such a way that it cannot be
for the trees or growing crops to be considered separated therefrom without breaking the
real property? material or deterioration of the object.

• No. there is no distinction provided by the (4) Statues, reliefs, paintings…


law. What is required is that they are attached
• (4) Statues, reliefs, paintings or other objects
to the land or they form an integral part of an
for use or ornamentation, placed in buildings or
immovable.
on lands by the owner of the immovable in such
3) Everything attached to an immovable in a a manner that it reveals the intention to attach
fixed manner…. them permanently to the tenements;
What are the requisites before statues, reliefs, Ex: printers in a printing press business placed
or paintings are considered real property? in a building by the owner.

• It must be placed by the owner of the land, If the machineries are not placed by the
building, or tenement to which it is placed. (or owner, are they considered real property
placed by an agent or a person under the under par. 5?
authority of the owner of the immovable)
• No. for machineries to be considered real
• It must be placed in such a manner as to property under par. 5, it must be placed by the
reveal the intention to attach them owner of the land or the building.
permanently to the tenements.
• Note however that the SC held that if the
Are paintings placed by a tenant in a rented machinery that was placed by a tenant will be
building considered real property? transferred to the owner of the building, then
such machinery is considered as real property.
• No. for paintings to be considered real (in this case, it is as of the tenant is acting as the
property, it must be placed by the owner of the agent of the owner in placing the machinery)
building. If it is placed by a tenant, it is
considered personal property. (unless it will fall If the machines are still placed in a building,
in some other category under Art. 415) but the industry or works is no long pursued,
are the machineries still considered real
(5) Machinery, receptacles, instruments or property?
implements…
• No more. For machineries to be considered
• (5) Machinery, receptacles, instruments or real property, they must tend directly to the
implements intended by the owner of the needs of the industry or work. If there is no
tenement for an industry or works which may longer an industry or work, then this requisite is
be carried on in a building or on a piece of land, not met.
and which tend directly to meet the needs of
the said industry or works; • Note that Machineries are real property by
destination. This means that they are
What are the requisites before machineries considered real property because of their
can be considered as real property? purpose. If the purpose is no longer there, then
• It must be placed on a land or in a building it is no longer considered real property under
Par. 5 of Art. 415.
• It must be placed by the owner (or his agent)
Are Meralco posts considered real property
• The machinery must tend directly to meet the under par. 5 of Art. 415?
need of an industry or work
• No. They are not machineries that are
• The industry or work must be carried on in a intended for an industry carried on in a building
building or on a piece of land or a piece of land.

• The machinery must be essential to the NOTE HOWEVER…


industry and not merely incidental
• Manila Electric Company v. The City Assessor • Under criminal law, only personal property
and City Treasurer of Lucena City (Aug. 5, 2015) can be the subject of theft.

• The SC held in this case that electric posts are (7) Fertilizer actually used on a piece of land;
considered real property for Real Property Tax
purposes because of the provisions contained • (7) Fertilizer actually used on a piece of land;
under the Local Government Code. • Just note that the fertilizers must actually be
• Note that the electric posts are still not used on a piece of land. If it is not yet used,
considered real property under the then they are considered personal property.

Civil Code, but it is now subjected to Real (8) Mines, quarries, and slag dumps….
Property Tax. • (8) Mines, quarries, and slag dumps, while the
(6) Animal houses, pigeon-houses, beehives, matter thereof forms part of the bed, and
fishponds or breeding places of similar waters either running or stagnant;
nature… What are slag dumps?
• (6) Animal houses, pigeon-houses, beehives, • It is the dirt and soil taken from a mine and
fishponds or breeding places of similar nature, piled upon the surface of the ground.
in case their owner has placed them or
preserves them with the intention to have them • Note that everything that is contained in the
permanently attached to the land, and forming slag dump is considered real property until they
a permanent part of it; the animals in these are extracted. As in the case of minerals
places are included; contained in the slag dumps.

• Note that for these animal houses, fishponds, • Waters – these are the waters running or
etc. to be considered real property, it must be stagnant in a mine or quarry. They are
placed by their owner with the intention of considered real property.
permanent annexation. (similar to the
(9) Docks and structure….
requirement of Par. 1, Art. 415)
• (9) Docks and structures which, though
Suppose the animals are temporarily outside
floating, are intended by their nature and object
of the places mentioned in par. 6 Art 415, are
to remain at a fixed place on a river, lake, or
they considered real property?
coast;
• Yes, so long as they have the intention to
Are vessels considered real property under
return.
par. 9 of Art. 415?
• Note however that under criminal law, they
• No. Vessels are not intended by their nature
are considered personal property.
and object to remain at a fixed place on a river,
This means that even if the animals are real lake, or coast.
property under the Civil Code, they can be the
• Note however, that because of the
object of theft.
importance of vessels in commerce, it is
sometimes treated as real property. (It must be What are the tests to determine if a property is
registered and in cases of double sales, it is personal property?
treated as real property.)
Test by description
(10) Contracts for public works…
• If capable of being moved from place to place
• (10) Contracts for public works, and servitudes without injuring the real property to which they
and other real rights over immovable property. are fixed (Par. 4, Art. 416)

• The things referred to under par. 10 are not Test by exclusion


material things but rights.
• If not included under Art. 415 (Par. 1, Art. 416)
• Note however, that for a right to be
considered immovable, it must be right over an • Test by exclusion is controlling.
immovable. If it is a right over a movable (1) Those movables susceptible of
property, then that right is personal and not appropriation which are not included in the
real. preceding article;
• Note: leases that are registered or have a • This is the test of exclusion.
duration for more than a year are
• Note that this is the best way to determine
considered real rights. (if the lease is for exactly whether a property is real or personal. My
one year, then it is a personal right, and thus, suggestion to you is to use this test every time
personal property) you asked to determine whether a certain
ARTICLE 416 property is real of personal.

• ARTICLE 416. The following things are (2) Real property which by any special
deemed to be personal property: provision of law is considered as personalty

(1) Those movables susceptible of Examples:


appropriation which are not included in the • Growing crops under the Chattel Mortgage
preceding article; Law
(2) Real property which by any special • Growing crops under the law on sales
provision of law is considered as personalty;
• Animals in animal houses under Criminal Law
(3) Forces of nature which are brought under
control by science; and (3) Forces of nature which are brought under

(4) In general, all things which can be control by science;


transported from place to place without
• These are forces that are controlled by
impairment of the real property to which they
persons through the use of technology.
are fixed.
Ex: currents of rivers to produce electricity. The Ex: A, B, C, D, and E owns 20 shares each in
electricity produced is considered personal Corp. XYZ. All of the properties of Corp. XYZ
property. consists of lands. Are the shares of stock of all
of them real or personal?
(4) In general, all things which can be
transported from place to place… • The shares of stocks of all of them are
personal property.
• This is the test by description.
• Art. 417 of the Civil Code provides that shares
• Note that this is not a reliable way to classify of stocks are considered personal property
property as personal property. As you should although the entity to which they pertain only
know by now, immovable properties under owns real property.
Art. 415 are not literally “immovable” (animals, • In this case, although Corp. XYZ only owns
machineries, etc.). lands, which are real properties, the shares of
This is the reason why the test by exclusion is stocks of A, B, C, D, and E are still personal
superior to this test. property by express provision of the law.

ARTICLE 417 • Hence, the shares of stocks of all of them are


personal property.
ARTICLE 417. The following are also considered
as personal property: • Note that the phrase “shares of stock” does
not limit the application of Art. 417 (2) to
(1) Obligations and actions which have for corporations. Art. 417 (2) is also applicable to
their object movables or demandable sums; shares of partners in a partnership.
and
ARTICLE 418
(2) Shares of stock of agricultural, commercial
and industrial entities, although they may have • ARTICLE 418. Movable property is either
real estate. consumable or nonconsumable. To the first
class belong those movables which cannot be
Are obligations and actions personal used in a manner appropriate to their nature
property? without their being consumed; to the second
class belong all the others.
• Yes, provided that their object is also
movables or demandable sums. If their object is What are the classifications of personal
real property, then it will fall under Art. 415 property under Art. 418?
(10). – other real rights over immovable
property. • Consumables and non-consumables.

Are shares of stocks in agricultural, What are consumable properties?


commercial, and industrial entities personal • They are movables which cannot be used in a
property? manner appropriate to their nature without
• Yes. their being consumed.
• All the others are non-consumable. • Those intended for public use, such as roads,
canals, rivers, torrents, ports and bridges
What are fungible properties? constructed by the State, banks, shores,
• Fungibles are properties capable of roadsteads, and others of similar character
substitution or replacement. • Those which belong to the State, without
• Fungibility or non-fungibility is based on the being for public use and are intended for some
intention of the parties and not on the nature of public service.
the object. (it relates to the replaceability, not • Those which belong to the State, without
consumability.) being for public use and are intended for
Classification of Property in relation to whom development of the national wealth.
it belongs Characteristics of properties of public domain
Module 2.2 What are the characteristics of properties of
ARTICLE 419 public domain?

ARTICLE 419. Property is either of public 1. Outside the commerce of men


dominion or of private ownership. 2. Cannot be leased, sold, or be the object of a
• Public dominion = owned by the state. [not by contract.
the government; but of course, the government • Except for repairs or improvements
is the machinery that expresses the will of the
state thus it is the government that controls 3. Cannot be acquired by prescription
state property]
4. Properties of public domain cannot by
ARTICLE 420 acquired through prescription no matter the
length of adverse possession.
ARTICLE 420. The following things are
property of public dominion: 5. Cannot be registered under the Land
Registration Law (Torrens System).
(1) Those intended for public use, such as
roads, canals, rivers, torrents, ports and bridges • If erroneously registered, the land remains to
constructed by the State, banks, shores, be property of public dominion.
roadsteads, and others of similar character;
6. Cannot be levied upon execution, nor can
(2) Those which belong to the State, without they be attached.
being for public use, and are intended for some
public service or for the development of the 7. Cannot be attached by persons filing cases
national wealth. against the government/state.

What are the three kinds of properties of • In general it can be used by everybody
public dominion? • Note that this is applicable to Par. 1 of Art.
420.
• They may either be real or personal • ARTICLE 1113 (Civil Code). All things which are
within the commerce of men are susceptible of
• Art. 420 did not restrict properties of public prescription, unless otherwise provided.
dominion to real property.
Property of the State or any of its subdivisions
Personal property can be property of public not patrimonial in character shall not be the
dominion. (Ex. Police cars under Par. 2, Art. 420 object of prescription.
– intended for some public service)
Cannot be registered under the Land
Outside the commerce of men Registration Law (Torrens System).
• This simply means that properties of public Will a private individual who successfully
domain for public use cannot be the object of registers property of public dominion acquire
contracts. ownership over the land?
• In case, they become the subject of a • No. Registration is not a mode of acquiring
contract, the contract will be void. ownership. Moreover, properties of public
• Note that it is not required that the property dominion cannot be registered under the
be of public dominion from the start. It can be Torrens System of Land Registration.
of private ownership (thus may be the object of What is the remedy of the State in this case?
a contract), then converted to public ownership.
In this case, the property will still be outside the • The remedy is an action for reversion of
commerce of men. inalienable public lands which are erroneously
registered in the name of private individuals.
Cannot be acquired by prescription
The registrant is already in possession of the
• Prescription is a mode of acquiring ownership land for 50 years. Can the State still question
through adverse the erroneous registration?
possession for a certain period of time. • Yes. Properties of public domain cannot be
Real property acquired by prescription. No matter how long
the possession of the private individual, if the
• If the possession is in good faith = 10 years land is a property of public domain then the
State can always ask for the reversion of such
• If the possession is in bad faith = 30 years
land.
Personal property
Cannot be levied upon execution, nor can they
• If the possession is in good faith = 4 years be attached.

• If the possession is in bad faith = 8 years • This simply means that in an action against
the State, the complainant or the plaintiff
• In the case of properties of public dominion, it cannot ask the court to attach properties of
cannot be acquired through prescription. public dominion to ensure satisfaction of the
judgment in case it is favorable to the
complainant, or to execute against properties of • (1) Those intended for public use, such as
public dominion. roads, canals, rivers, torrents, ports and
bridges constructed by the State, banks,
In general it can be used by everybody shores,
• Note that this is applicable to properties of roadsteads, and others of similar character;
public dominion intended for public use such as
roads, canals, rivers, torrents, ports and bridges • Note that for these constructions to be
constructed by the State, banks, shores, considered as properties of
roadsteads, and others of similar character.
public domain the following requisites must
• Obviously, it is not applicable to properties of concur:
public dominion intended for some public
service. Not everybody can drive a tank from • It must be intended for public use
the Armed Forces of the Philippines. • It must be constructed by the State
They may either be real or personal • If it is not for public use AND not constructed
• Art. 420 of the Civil Code did not provide for by the State, then it is not public property under
the classification of properties of public par. 1. (Santos v. Moreno)
dominion as to mobility. Thus, as a • All other enumerations are considered
characteristicof properties of public dominion, it properties of the State such as rivers, shores,
can either be real or personal. creeks, etc. Intended for some public service.
There are no restrictions as to classifications in (2) Those which belong to the State, without
relation to mobility. being for public use, and are intended for some
What are the three kinds of properties of public service.
public dominion? • These are properties of the State that are
• Those intended for public use, such as roads, used for some public
canals, rivers, torrents, ports and bridges service.
constructed by the State, banks, shores,
roadsteads, and others of similar character • Note that these properties are not for the use
of all persons. These properties can be used by
• Those which belong to the State, without duly authorized persons. Intended for some
being for public use and are intended for some public service.
public service.
Ex: government buildings, police cars, army
• Those which belong to the State, without rifles.
being for public use and are intended for
development of the national wealth. • Note: not all properties of the State can be
used by all. Only properties falling under par. 1
Those intended for public use can be generally used by all. Intended for
development of the national wealth.
• Those which belong to the State, without Property of the State or any of its subdivisions
being for public use, are intended for the not patrimonial in character shall not be the
development of the national wealth. object of prescription.

• The properties described in the 3rd kind are Can patrimonial properties of the State be
our natural resources. attached or levied?

• SECTION 3, Art XII, 1987 Constitution provides • Yes. Patrimonial properties are not properties
that Lands of the public domain are classified of public dominion. The State owns these
into agricultural, forest or timber, mineral lands, properties in its private capacity.
and national parks.
• Patrimonial properties can be registered
Article 421 under the Torrens System, it can be acquired
through prescription, it can be attached or
• Article 421. All other property of the State, levied upon, and it is within the commerce of
which is not of the character stated in the men.
preceding article, is patrimonial property.
Article 422
What are patrimonial properties of the State?
• Article 422. Property of public dominion,
• All other properties of the State not included when no longer intended for public use or for
under Art. 420. These are properties of the public service, shall form part of the
State that are not for public use, not for public patrimonial property of the State.
service, nor for the development of the national
wealth. Patrimonial properties are those When does a property of public dominion be
properties owned by the State in its private considered patrimonial property?
capacity.
• When the properties are no longer intended
Examples of patrimonial property: for public use or for public service.

• Properties acquired through escheat When are properties for public use or public
proceedings. service no longer intended for such purposes?

• Properties no longer intended for public use • When there is an express declaration from the
or for public service, nor for the development of State that such properties are no longer
the national wealth. (previously properties of intended for public use or public service.
public domain)
• There must be an express declaration (either a
Can patrimonial properties be acquired law or a presidential proclamation) that the
through prescription? property is no longer intended for public use,
not just as practiced. Absent any declaration,
• Yes, as held by the Supreme Court. the property is still considered property of
• ARTICLE 1113. All things which are within the public dominion.
commerce of men are susceptible of • NOTE: implications
prescription, unless otherwise provided.
• still cannot be owned through prescription What are the properties of the LGUs
considered for public use?
• Cannot be registered under the Torrens
System 1. City streets

• Cannot be alienated 2. Municipal streets

Are properties classified as alienable and 3. Squares


disposable considered patrimonial?
4. Fountains
• NO. the mere fact that it is declared as
alienable and disposable does not convert it to 5. Public waters
patrimonial property. Absent any express 6. Promenades
declaration converting it to patrimonial
property will not convert it to patrimonial 7. Public works for public service paid by the
property. LGU concerned.

Article 423 • All other properties are considered


patrimonial WITHOUT PREJUDICE TO THE
• Article 423. The property of provinces, cities, PROVISIONS OF SPECIAL LAWS.
and municipalities is divided into property for
public use and patrimonial property. • Just like the properties of the state intended
for public use, properties of LGUs for public use
• Note the distinction between property of cannot be alienated. It cannot be acquired by
public dominion and properties of provinces, prescription.
cities and municipalities. Properties of these
local government units are not properties of • Patrimonial property can be acquired by
public dominion. prescription.

Article 424 • Patrimonial property of LGU is not immune to


suits regarding these properties. These
• Article 424. Property for public use, in the properties are treated like properties of a
provinces, cities, and municipalities, consist of private corporation. It is within the commerce
the provincial roads, city streets, municipal of men. It can also be registered under the
streets, the squares, fountains, public waters, Torrens System.
promenades, and public works for public
service paid for by said provinces, cities, or Are properties for public service owned by the
municipalities. LGU for public use or patrimonial property?

All other property possessed by any of them is • They are patrimonial property. They are not
patrimonial and shall be governed by this among those enumerated under Art. 424 which
Code, without prejudice to the provisions of defines properties of the LGU for public use.
special laws.
• However, under the Law on Municipal
Corporations, properties for public service of
the LGUs are considered properties for public • Sec. 10; RA. 8179 – former natural born
use, making them not patrimonial in character. Filipinos, who are capacitated to

So what rule do we follow? contract under Philippine Laws. Limit = urban


land – 5000sqm; rural land – 3has.
• Donations to LGUs of lands made into a plaza.
• If the acquisition was before the 1935
• It will form part of the properties for public Constitution.
use. Thus outside the commerce of men.
Private ownership of Aliens regarding lands
Article 425
• In case an alien was able to acquire lands, the
• Article 425. Property of private ownership, remedy is to declare the mode of transfer as
besides the patrimonial property of the State, void. This action is imprescriptible.
provinces, cities, and municipalities, consists of
all property belonging to private persons, ARTICLE 426
either individually or collectively.
• ARTICLE 426. Whenever by provision of the
What are properties of private ownership? law, or an individual declaration, the
expression “immovable things or property,” or
• Those that belong to private persons, either “movable things or property,” is used, it shall
individually or collectively. be deemed to include, respectively, the things
• “either individually, or collectively” = co- enumerated in Chapter 1 and in Chapter 2.
ownership OR juridical entities. Whenever the word “muebles,” or “furniture,”
Can roads be considered properties of private is used alone, it shall not be deemed to include
ownership? money, credits, commercial securities, stocks
and bonds, jewelry, scientific or artistic
• Yes, if privately made. If the government collections, books, medals, arms, clothing,
spent nothing for the construction of the road, horses or carriages and their accessories,
then it is a private road. Note that it must be grains, liquids and merchandise, or other
build on private land. things which do not have as their principal
object the furnishing or ornamenting of a
Private ownership of Aliens regarding lands
building, except where from the context of the
Can aliens own lands here in the Philippines? law, or the individual declaration, the contrary
clearly appears.
• As a general rule, No. It is prohibited by the
Constitution. Ownership in General

What are the exceptions? Module 3.1

The exceptions are: Article 427

• Acquisition through hereditary succession • ARTICLE 427. Ownership may be exercised


(Sec. 5, Art XII, 1987 Constitution) over things or rights.
What is ownership? • Co-ownership = when ownership is vested in
two or more persons
• The independent and general right of a person
to control a thing particularly in his possession, Article 428
enjoyment, disposition, and recovery, subject to
no restrictions except those imposed by the • ARTICLE 428. The owner has the right to
state of private persons, without prejudice to enjoy and dispose of a thing, without other
the provisions of law. limitations than those established by law.

What are the limitations to ownership? • The owner has also a right of action against
the holder and possessor of the thing in order
• Those that are imposed by the State to recover it.

1. Police power Article 428

2. Taxation • What are the rights of the owner under Art.


428?
Those that are imposed by private persons
• The following are the rights of the owner:
• The owner himself in case he enters into a
contract of lease (this is a limitation because if • Right to enjoy
he enters into a contract of lease, his right to
possess the property is limited by himself) • Right to dispose

• The grantor of property may impose certain • Right to recover


limitations Article 428
Those that are imposed by law • The following rights are included under right
Easements to enjoy

Formal requirements to transfer property. (this • Right to possess


is a limitation to the right to dispose) • Right to use
What are the kinds of ownership? • Right to the fruits
• Full ownership = includes all the rights of the • The following rights are included under right
owner to dispose
• Naked ownership = this is the ownership • Right to consume
where the right to the use and to the fruits has
been denied, as when the usufruct is given to • Right to destroy
another.
• Right to abuse
• Sole ownership = there is only one owner
• Right to encumber

• Right to alienate
• Note that the right to recover will be or prevent an actual or threatened unlawful
discussed in the next module. physical invasion or usurpation of the property
(under 429)
• Under Roman Law, owners have the following
rights: Example of limitations to this right:

• Jus possidendi – the right to possess • Imposed by law – some things are declared
illegal and thus cannot be used. It is illegal for a
• Jus utendi – right to use car owner to operate the car if he has no
• Jus fruendi – right to the fruits license.

• Jus abutendi – right to abuse or consume • Imposed by private persons – when the
usufruct is given to another, the owner cannot
• Jus disponendi – right to dispose use the property concerned. (similar in a
contract of lease)
• Jus vindicandi – right to recover
• Right to the fruits
• Jus accesionis – right to the accessories
• 3 kinds of fruits under the Civil Code: (Art.
• Note: Civil Code is basically patterned from
442)
Roman Law
• Natural – are the spontaneous products of the
• Right to possess
soil, and the young and other products of
• It means the right to hold a thing or enjoy a
animals
right.
• Industrial – are those produced by lands of
Example of a limitation to this right:
any kind through cultivation or labor
• Imposed by private persons = lease contract.
• Civil – are the rents of buildings, the price of
The possession is given to another. The owner
leases of lands and other property and the
cannot possess the property unless the
conditions of the lease contract is violated amount of perpetual life annuities or other
similar income
by the lessee. If the owner will forcibly possess
the property, the lessee may file an action to • Note that the owner will own any fruits
recover the possession of the property (based accruing to his property.
on his right to possess the property).
EX: A owns a land, and he plants a tree on the
• Right to use land. The tree is an industrial fruit accruing to
his land. He will then own that tree, because as
• The right to use the thing owned will include
the owner of the land, he has the right to the
the right to exclude any person from the
fruits of such land.
enjoyment and disposal of the thing.
Example of a limitation to this right:
• Under the law, the owner may exercise such
force as may be reasonably necessary to repel
• When an owner gives the usufruct of his out of the property. He must resort to judicial
property to another. A usufruct gives the right process for the recovery of the property.
to enjoy and to the fruits of the property. The
usufructuary will receive the fruits of the • He cannot take the law into his own hands.
property and not the owner. Article 429
• Right to abuse and to consume • ARTICLE 429. The owner or lawful possessor
• This only means that the owner can do of a thing has the right to exclude any person
whatever he wants with the property. from the enjoyment and disposal thereof. For
this purpose, he may use such force as may be
Example of a limitation to this right: reasonably necessary to repel or prevent an
actual or threatened unlawful physical
• Law on Arson – even if an owner has the right invasion or usurpation of his property.
to abuse his property, he cannot simply burn his
house under circumstances which will expose to What is the principle contained under Art. 429
danger the life or property of another. of the Civil Code?

• Right to dispose The principle of self-help. One can use force as


may be reasonably necessary to repel or
• The right to dispose will include the right to prevent an actual or threatened unlawful
donate, sell, pledge, or mortgage the property. physical invasion or usurpation of his property.
Example of limitations to this right : • This principle is similar to the concept of self-
• Husband and wife cannot donate to each defense under criminal laws, but the main
other under the Family Code difference is that under Art. 429 of the Civil
Code force may be used even without
• Law on Donation - Persons who are guilty of threatened bodily danger.
adultery or concubinage (at the time of the
donation) cannot donate to each other • Note that this is only applicable if the invasion
or usurpation is illegal.
• Right to recover
If the invasion or usurpation of the property is
• The owner has the right of action against the by reason of some law, then the owner cannot
holder and possessor of the thing in order to use force to prevent the officer from taking the
recover it. property.

• This right is transmissible to the heirs or Ex: Article 432 of the Civil Code provides that
assignees of the person entitled to it. The owner of a thing has no right to prohibit the
interference of another with the same, if the
• An assignee can file an action to recover a
interference is necessary to avert an imminent
property unjustly taken from his assignor.
danger and the threatened damage…
• NOTE: possession in the concept of an owner
Article 430
raises a disputable presumption of ownership.
The owner cannot simply force the possessor
• ARTICLE 430. Every owner may enclose or Example:
fence his land or tenements by means of walls,
ditches, live or dead hedges, or by any other • In this case, if the only way to prevent the fire
means without detriment to servitudes from spreading is to damage the house of B,
constituted thereon. then B cannot prevent such interference,
because by doing so, it will endanger the
• This is also known as the right to fence. neighborhood and the damage will be greater.

Article 431 Example:

• ARTICLE 431. The owner of a thing cannot • If in case the house of B was damaged, to
make use thereof in such manner as to injure prevent the further spread of the fire, then B
the rights of a third person. can file an action for reimbursement for the
damages caused. B should file this against C,
Article 432 who benefited from the damage caused to B’s
• ARTICLE 432. The owner of a thing has no house.
right to prohibit the interference of another Article 433
with the same, if the interference is necessary
to avert an imminent danger and the • ARTICLE 433. Actual possession under claim
threatened damage, compared to the damage of ownership raises a disputable presumption
arising to the owner from the interference, is of ownership. The true owner must resort to
much greater. The owner may demand from judicial process for the recovery of the
the person benefited indemnity for the property.
damage to him.
• Note: for the presumption of ownership to
Can an owner of a thing prohibit the apply, the following
interference of another with his property?
requisites must be present:
• Yes. Article 429 provides that the owner or
lawful possessor of a thing has the right to • There is actual possession. (holding of a thing
exclude any person from the enjoyment and or enjoyment of a right)
disposal thereof. • There is a claim of ownership. (the possessor
When is an owner not allowed to prohibit the need not wave his claim of ownership like a flag.
interference of another with his property? If he performs acts of ownership, then he is
claiming ownership.)
• If the interference is necessary to avert an
imminent danger and the threatened damage, Article 434
compared to the damage arising to the owner • ARTICLE 434. In an action to recover, the
from the interference, is much greater. (Art. property must be identified, and the plaintiff
432) must rely on the strength of his title and not
• Note that the interference may even cause on the weakness of the defendant’s claim.
the destruction of the property. • In an action to recover:
• The property must be identified • All lands of the public domain, waters,
minerals, coal, petroleum, and other mineral
• The plaintiff must rely on the strength of his oils, all forces of potential energy, fisheries,
title and not on the weakness of the forests or timber, wildlife, flora and fauna, and
defendant’s claim other natural resources are owned by the State.
• Because of the presumption under Art. 433. Right to Recover
Article 435 and 436 Module 3.2
• Eminent domain and Police power. Right to recover
• We will no longer cover Articles 435 and 436 • The owner has the right of action against the
because the concepts involved are already holder and possessor of the thing in order to
covered in your Constitutional Law subjects. recover it.
Article 437 • This right is transmissible to the heirs or
• ARTICLE 437. The owner of a parcel of land is assignees of the person entitled to it.
the owner of its surface and of everything • An assignee can file an action to recover a
under It, and he can construct thereon any property unjustly taken from his assignor.
works or make any plantations and
excavations which he may deem proper, • NOTE: possession in the concept of an owner
without detriment to servitudes and subject to raises a disputable presumption of ownership.
special laws and ordinances. He cannot The owner cannot simply force the possessor
complain of the reasonable requirements of out of the property. He must resort to judicial
aerial navigation. process for the recovery of the property.

• This is also known as “Surface Right” • He cannot take the law into his own hands.

What are the limitations to the landowner’s What are the actions to recover property?
surface rights?
1.Personal property = Replevin
• Servitudes
2. Real property:
• Special Laws
• Action for Ejectment - either forcible entry or
• Ordinances unlawful detainer

• Reasonable requirements of aerial navigation • Accion Publiciana – plenary action to recover


the better right or possession
• Regalian doctrine
• Accion Reivindicatoria – or an action to
What is the Regalian doctrine? (Sec. 2, Art. XII, recover possession based on ownership
1987 Consti.)
• Other remedies:
• Writ of preliminary mandatory injunction under custodia legis or if so seized, that it is
(provisional remedy) exempt from such seizure or custody.

Writ of possession • The actual market value of the property.

Replevin • The applicant must also give a bond.

• Replevin (Rule 60, Rules of Court) • Double the value of the property as stated in
the affidavit.
• Defined as an action or provisional remedy
where complainant prays for the recovery of • In case the adverse party will suffer damages
the possession of personal property. due to the action of the claimant, the bond will
answer for the damages.
• Note that there are two kinds of replevin.
Replevin as an action and replevin as a • The court will then order the sheriff to take
provisional remedy. (a provisional remedy is a such property into his custody. If the property is
prejudgment remedy given by the court to a in a building or enclosure, and not delivered
party pending resolution of the case). upon demand, the sheriff may cause the
building or enclosure to be broken down.
• Subject properties = ONLY PERSONAL
PROPERTY. If the property is real property, • Note: the property will not by delivered to the
replevin is not the proper remedy. claimant for the meantime. It will remain in the
custody of the sheriff until the court will issue
• At the commencement of the action, or at any its judgment determining who is the rightful
time before the other party answers, the possessor of the property concerned.
applicant may apply for an order of the delivery
of such property to him. • Note: the adverse party may give a counter-
bond to prevent the sheriff from taking the
• The applicant must show by his own affidavit property. (double the value of the property as
or that of some other person who personally stated in the affidavit of the claimant. The bond
know that facts: will answer for any damages that may be
• That the applicant is the owner of the caused to the claimant)
property claimed, particularly describing it, OR • Jurisprudence on Replevin:
is entitled to the possession thereof.
• A writ of replevin cannot be directed against a
• That the property is wrongfully detained by lawful possessor. (Chua v. CA)
the adverse party, alleging the cause of
detention thereof according to his best • The contents of the affidavit of merit may be
knowledge, information, and belief. included in the complaint for replevin itself,
provided it is verified. (Citibank v. CA)
• That it has not been distrained or taken for a
tax assessment or fine pursuant to law or seized • A writ of replevin may be served anywhere in
under a writ of execution or preliminary the Philippines (Fernandez v. International
attachment or otherwise placed Corporate Bank)
• When the thing is in official custody of a counted from the date of the discovery of such
judicial or executive officer in pursuance of his strategy or stealth.
execution of a legal writ, replevin will not lie to
recover it. (Factoran v. CA) • Issue involved: mere physical possession of
the property and not ownership.
Ejectment
• Thus, in a case, the Supreme Court held that
2 kinds of ejectment cases: (Rule 70, Rules of an action for forcible entry may prosper even
Court) against the owner of the property.

• Forcible entry Plaintiffs must allege and prove the following:

• Unlawful detainer • That they have prior physical possession of


the property.
• NOTE: both are under the exclusive and
original jurisdiction of the MTC • The complaint must allege that one in physical
possession of a land or building has been
Forcible Entry deprived of said possession by another through
• Forcible entry FISTS.

• Summary action to recover material or • That the action was filed within one year from
physical possession of real property when a the time the owners or legal possessors learned
person originally in possession was deprived of their deprivation of the physical possession
thereof by force, intimidation, strategy, threat, of the property. (need not be alleged but must
or stealth. (FISTS) be proved. Tip: make an allegation to this
effect)
Grounds for an action for forcible entry: FISTS
• “Prior physical possession”
• Force
• Indeed, possession in ejectment cases "means
• Intimidation nothing more than actual physical possession,
not legal possession in the sense contemplated
• Strategy
in civil law." In a forcible entry case, "prior
• Threat physical possession is the primary
consideration.“
• Stealth
• "A party who can prove prior possession can
Period to file for forcible entry: recover such possession even against the owner
himself. Whatever may be the character of his
• The action must be brought within one year
possession, if he has in his favor prior
from the dispossession.
possession in time, he has the security that
• Note: if the dispossession was caused by entitles him to remain on the property until a
strategy or stealth, the one-year period is person with a better right lawfully ejects him.“
• "The party in peaceable, quiet possession shall • The compromise agreement, even if
not be thrown out by a strong hand, violence, confirmed by the court, will not be tantamount
or terror." to an adjudication as to the ownership of the
property. (as a rule, it is beyond the jurisdiction
Tax declarations as proof of prior possession: of the court in an ejectment suit.)
• Similarly, tax declarations and realty tax Unlawful Detainer
payments are not conclusive proofs of
possession. They are merely good indicia of • Unlawful detainer – the action that must be
possession in the concept of owner based on brought when possession by a landlord, vendor,
the presumption that no one in one’s right mind vendee, or other person of any land or building
would be paying taxes for a property that is not is being unlawfully withheld after the expiration
in one’s actual or constructive possession. or termination of the right to hold possession,
by virtue of a contract, express or implied.
• Allegations of ownership in forcible entry
cases • Prior physical possession is not required in an
unlawful detainer, as compared to forcible
• As a rule, the MTC has no jurisdiction to rule entry.
on issues of ownership in cases for forcible
entry. • The issue is still possession, and not
ownership.
• Allegations of issues on ownership by the
defendant will not deprive the court of its • The action must be brought within one year
jurisdiction. (jurisdiction of the court as to the from the time possession becomes unlawful
subject matter is determined by the allegations
in the complaint, and the law applicable to the • If there is a fixed term, the possession
case.) becomes unlawful from the moment the period
expires.
What should the court do on issues of
ownership? • If the lessee fails to comply with his
obligations, the one-year period is to be
• The Supreme Court has held that “Where the counted from the date of demand to vacate.
issue of ownership is raised by any of the
parties, the courts may pass upon the same in If there is no term
order to determine who has the right to possess • Lease contract without a period (urban) = Art.
the property. The adjudication is, however, 1687
merely provisional and would not bar or
prejudice an action between the same parties If the period for the lease has not been fixed,
involving title to the property.” (2012 case; G.R. it is understood to be from year to year, if the
No. 183822) rent agreed upon is annual;

• In case the parties agreed to enter into a • from month to month, if it is monthly;
compromise in an ejectment suit, and decided
• from week to week, if the rent is weekly; and
to agree on the issue of ownership
• from day to day, if the rent is to be paid daily. • Same rule under forcible entry. The courts
may decide on issues on ownership, but only to
If there is no term determine who has the better right to possess.
• rural land = Art. 1682 The adjudication is provisional and will not
constitute res judicata.
• The lease of a piece of rural land, when its
duration has not been fixed, is understood to Unlawful detainer vs. forcible entry
have been for all the time necessary for the • FE = the possession was unlawful from the
gathering of the fruits which the whole estate beginning
leased may yield in one year, or which it may
yield once, although two or more years may • UD = possession was lawful at the beginning
have to elapse for the purpose. but became unlawful

Note also: • FE = prior possession of the plaintiff is


essential
• Art. 1670. If at the end of the contract the
lessee should continue enjoying the thing • UD = prior possession is not essential
leased for fifteen days with the acquiescence of
the lessor, and unless a notice to the contrary Accion Publiciana
by either party has previously been given, it is • Accion Publiciana – is an ordinary civil
understood that there is an implied new lease, proceeding to determine the better right of
not for the period of the original contract, but possession of realty independently of title. It
for the time established in articles 1682 and refers to an ejectment suit filed after the
1687. The other terms of the original contract expiration of one year from the accrual of the
shall be revived. cause of action or from the unlawful
If there is no term and the possession is by withholding of possession of the realty.
mere tolerance • The objective of the plaintiffs in accion
• By mere tolerance = implied agreement that publiciana is to recover possession only, not
they will vacate upon demand, thus the one- ownership.
year period will be counted from the demand to • When parties, however, raise the issue of
vacate the premises. ownership, the court may pass upon the issue
• Note that the rightful possessor may demand to determine who between the parties has the
the illegal settlers to vacate right to possess the property.

multiple times. In this case, the one-year period • This adjudication, nonetheless, is not a final
is to be counted from the last demand to and binding determination of the issue of
vacate. ownership; it is only for the purpose of
resolving the issue of possession, where the
Issues on ownership: issue of ownership is inseparably linked to the
issue of possession. The adjudication of the
issue of ownership, being
provisional, is not a bar to an action between • It must be brought within 10 years or 30
the same parties involving title to the property. years.
The adjudication, in short, is not conclusive on
the issue of ownership. • ARTICLE 1134. Ownership and other real
rights over immovable property are acquired by
• It must be filed within 10 years from the ordinary prescription through possession of ten
dispossession. years.

ARTICLE 555. A possessor may lose his • ARTICLE 1137. Ownership and other real
possession: rights over immovables also prescribe through
uninterrupted adverse possession thereof for
• (1) By the abandonment of the thing; thirty years, without need of title or of good
• (2) By an assignment made to another either faith.
by onerous or gratuitous title; Writ of Preliminary Mandatory Injunction
• (3) By the destruction or total loss of the • ARTICLE 539. Every possessor has a right to be
thing, or because it goes out of commerce; respected in his possession; and should he be
• (4) By the possession of another, subject to disturbed therein he shall be protected in or
the provisions of article 537, if the new restored to said possession by the means
possession has lasted longer than one year. But established by the laws and the Rules of Court.
the real right of possession is not lost till after • A possessor deprived of his possession
the lapse of ten years. through forcible entry may within ten days from
Accion Reivindicatoria the filing of the complaint present a motion to
secure from the competent court, in the action
• Accion reivindicatoria or accion de for forcible entry, a writ of preliminary
reivindicacion is an action whereby plaintiff mandatory injunction to restore him in his
alleges ownership over a parcel of land and possession. The court shall decide the motion
seeks recovery of its full possession. It is a suit within thirty (30) days from the filing thereof.
to recover possession of a parcel of land as an
element of ownership. The basic question in Writ of Possession
such an action is whether the plaintiff, • A writ of possession is a writ of execution
respondent herein, has presented sufficient employed to enforce a judgment to recover the
evidence to prove his ownership of the possession of land. It commands the sheriff to
properties in question. enter the land and give possession of it to the
• Some experts define Accion Reivindicatoria as person entitled under the judgment.
an action to recover ownership. (however, one • This only means that in cases where a party is
can argue that ownership is not yet lost in an held to be the owner of a property, he need not
accion reivindicatoria, it is only the possession file another action to recover possession (in
of the property) case the property is in the possession of
another). He can file a motion for the issuance • If the objects are deliberately hidden with the
of a writ of execution. intention to recover it, AND if he can prove
lawful ownership, then it is not hidden treasure.
Hidden Treasure
• Even if the lawful owner has died, BUT the
Module 3.3 lawful ownership can still be proved, it is not
Arts. 438 and 439 hidden treasure. The thing must go to the heirs
of the lawful owner.
• ARTICLE 438. Hidden treasure belongs to the
owner of the land, building, or other property Hidden treasure:
on which it is found. • Belongs to the owner of the land, building or
Nevertheless, when the discovery is made on other property on which it is found
the property of another, or of the State or any • If found by a third person = 50% will belong to
of its subdivisions, and by chance, one-half the landowner and 50% will belong to the
thereof shall be allowed to the finder. If the finder.
finder is a trespasser, he shall not be entitled
to any share of the treasure. • If finder is a trespasser, he is not entitled to
any share.
If the things found be of interest to science or
the arts, the State may acquire them at their • If the thing found be of interest to science or
just price, which shall be divided in conformity the arts = the State may acquire them at their
with the rule stated. just price. The price will be divided according to
the shares of the landowner and the founder, if
• ARTICLE 439. By treasure is understood, for applicable.
legal purposes, any hidden and unknown
deposit of money, jewelry, or other precious Meaning of “by chance”
objects, the lawful ownership of which does
not appear. • It means that the hidden treasure was found
by good luck.
• Definition of hidden treasure = any hidden
and unknown deposit of money, jewelry, or • This does not mean that there was no
other precious objects AND the lawful intention to find the hidden treasure.
ownership of which does not appear. Finder
Things to remember: • GR: he is entitled to 50% of the hidden
• It must be “hidden” treasure.

• If it is NOT “money, jewelry, or other precious • If he is a trespasser, he is not entitled to any


objects…” then it is not hidden treasure share. He is a trespasser if he had no permission
to enter the property.
• If the lawful ownership appears, it is not
hidden treasure • If the finder is a paid laborer specifically
engaged to find the treasure, then he is entitled
to his wages, and not to the 50%. (he is merely • ARTICLE 441. To the owner belongs:
the agent of the owner of the property)
• (1) The natural fruits;
• If the finder is a usufructuary, he is considered
a stranger, and he is entitled to 50% of the • (2) The industrial fruits;
hidden treasure, and not to 100%. (naked • (3) The civil fruits.
owner get 50%; usufructuary gets 50%)
Article 442
• If the finder OR owner is married, the share
becomes conjugal property. (Art. 117 of the • ARTICLE 442. Natural fruits are the
Family Code.) spontaneous products of the soil, and the
young and other products of animals.
Ownership – Right of Accession
• Industrial fruits are those produced by lands
with Respect to What is Produced of any kind through cultivation or labor.
by the Property • Civil fruits are the rents of buildings, the
Module 4.1 price of leases of lands and other property and
the amount of perpetual or life annuities or
Article 440 other similar income.

• ARTICLE 440. The ownership of property • Natural fruits = spontaneous products of the
gives the right by accession to everything soil, and the young and other products of
which is produced thereby, or which is animals.
incorporated or attached thereto, either
naturally or artificially. • Industrial fruits = produced by lands of any
kind through cultivation or labor.
Accession: right of owner to everything which
is: • Civil fruits = the rents of buildings, the price of
leases of lands and other property and the
• Produced thereby (produced by his property) amount of perpetual or life annuities or other
similar income.
• Incorporated or attached thereto
(incorporated or attached to his property) • Natural fruits:

• Either naturally or artificially • Spontaneous products of the soil = no human


intervention
• Accession is not a mode of acquiring
ownership. (not among PISTOLD) • Young and other products of animals:

• Accession presupposes a previously existing • Young of animals = even if done with human
ownership by the owner of the principal. intervention (artificial insemination)
Accession is a right included in ownership.
• Other products of animals = even if acquired
Article 441 through human labor.
• Young of animals; the male and female belong • If the planter is in good faith, the rights will be
to different owners: discussed under Art. 447.

• No law addressing this issue. If the parties • ARTICLE 544. A possessor in good faith is
have an agreement, their agreement governs. If entitled to the fruits received before the
there was no agreement between the owners, possession is legally interrupted.
the young belongs to the owner of the female
parent. • Natural and industrial fruits are considered
received from the time they are gathered or
• NOTE: if the property was leased, the lessee severed.
will own the young. Lessees are entitled to the
fruits. Same rule in the case of a usufructuary. • Civil fruits are deemed to accrue daily and
belong to the possessor in good faith in that
• Industrial fruits = produced by lands of any proportion.
kind through cultivation or labor.
Article 444
• It must be produced by lands. Not the product
of those produce. • ARTICLE 444. Only such as are manifest or
born are considered as natural or industrial
• Civil fruits = the rents of buildings, the price of fruits.
leases of lands and other property and the
amount of perpetual or life annuities or other • With respect to animals, it is sufficient that
similar income. they are in the womb of the mother, although
unborn.
Article 443
Plants:
• ARTICLE 443. He who receives the fruits has
the obligation to pay the expenses made by a • Annual crops = manifest when their seedlings
third person in their production, gathering, and appear from the ground
preservation. • Perennial crops = manifest when they appear
• Under this provision, the owner of the land on trees
will own the fruits, but he must pay the planter • Animals = it is sufficient that they are in the
for the expenses mentioned. womb, although unborn.
• Note that this applies only to a planter or Rules on civil fruits:
sower in bad faith AND when the fruits are
already harvested. • Civil fruits accrue daily

• If the planter is in good faith, he will own the • Civil fruits can be pro-rated (based on period)
fruits. (Art. 544)
Ownership – Right of Accession –
If the crops are not yet gathered, then:
Immovables
• If the planter is in bad faith, he loses his right
Module 4.2
to the crops without indemnity. (Art. 449)
Art. 445 • Bad faith = if he is aware that there exists in
his title or mode of acquisition any flaw which
Whatever is built, planted or sown on the land invalidates it.
of another and the improvements or repairs
made thereon, belong to the owner of the • Note: if both parties are in bad faith, they are
land, subject to the provisions of the following both considered in good faith. (the bad faith of
articles. one party, cancels the bad faith of the other)

Art. 446 • Note: Good faith is always presumed.

• All works, sowing, and planting are presumed I. LO is in Good faith and the OM is in GF.
made by the owner and at his expense, unless
the contrary is proved. The LO must pay the OM for the value of the
materials used.
Art. 447
The OM has the limited right of removal. (he
Parties under Art. 447: may remove what is built if it will not cause
damage to the thing built)
• Landowner
• In case OM removes the construction or
• Owner of the materials plantings, LO will no longer pay the OM.
• Case covered by Art. 447: II. LO is in BF and OM is in GF
• Landowner builds something to his own land - LO is in bad faith if he knows that he does not
using the materials owned by another. own the materials, and he still makes use of it.
• The rights of the parties will depend if they - OM has the absolute right of removal. (he may
are in good faith or in bad faith. remove, even if it will cause damage)
Scenarios: - OM may demand the value of the materials.
I. LO is in GF; OM is in GF - OM is entitled to damages in either case.
II. LO is in BF; OM is in GF III. LO is in GF and OM is in BF
III. LO is in GF; OM is in BF - OM is in bad faith if he is aware that LO is
IV. LO is in BF; OM is in BF using his material and yet he does not inform
the LO of his ownership over the materials.
Definition of good faith and bad faith
- OM loses his right to the materials
• Good faith = not aware that there exists in his
title or mode of acquisition any flaw which - LO is entitled to consequential damages if the
invalidates it. materials are of an inferior quality.

IV. LO is in BF and OM is in BF

- both are to be considered in GF.


Art. 448 - 454 the value of the building. In this case, B may be
required to pay rents. (in case of disagreement,
Parties under Arts. 448 - 454: the courts may fix)
• Landowner - If LO opts to appropriate, B has the right of
• Builder, planter, sower retention over the property until LO pays the
value. If LO has not decided yet, same rule
Cases covered: applies.

• A Builder builds on the land of another. - If LO decided to sell the land to B and B fails to
pay:
• The rights of the parties will depend if they
are in good faith or in bad faith. • LO may remove the building.

Scenarios: • LO may file for a case for collection of sum of


money.
I. LO is in GF; B is in GF
- NOTE: the choice is generally irrevocable.
II. LO is in BF; B is in GF
II. LO in GF and B in BF
III. LO is in GF; B is in BF
• B loses what is built.
IV. LO is in BF; B is in BF
• LO may appropriate without payment.
I. LO in GF and B in GF
• LO may demolish, at the expense of B.
- the right is given to the LO. (he is the owner of
the principal property) • LO may compel B to buy the land, and the
sower the proper rent. (no qualification as to
- The LO may appropriate the works. In this case
the price of the land and the building)
he must pay the B the amount of the necessary
expenses, useful expenses, and luxurious • LO is entitled to damages in any case.
expenses.
• B is entitled to reimbursement for the
• Necessary expenses = for preservation of the necessary expenses of preservation of the land.
property
III. LO in BF and B in GF
• Useful = adds value to the property
- treat the B as OM and apply number II under
• Luxurious = for pleasure. Required only if the Art. 447.
LO will not remove the ornaments. (he may
remove if it will not cause any damage) IV. LO in BF and B in BF

- LO may require B to buy the land OR pay rents - both are considered in GF.

- Note: The LO cannot oblige B to buy the land if Art. 455


the value of the land is considerably more than
• Similar to Arts. 448-454 but the owner of the rights are governed by Art. 1678, one-half
materials is a different person. reimbursement of useful improvements and if
refusal by lessor to reimburse, absolute right of
• Case covered: A builder builds on the land of removal. (Sulo sa Nayon Inc. v. Nayong Pilipino
another, using the materials of a third person. Foundation, 20 January 2009)
(3 parties involved)
• ARTICLE 1678. If the lessee makes, in good
Parties under Art. 455: faith, useful improvements which are suitable
• Landowner to the use for which the lease is intended,
without altering the form or substance of the
• Builder property leased, the lessor upon the
termination of the lease shall pay the lessee
• Owner of the Materials
one-half of the value of the improvements at
The rights of LO and B are determined under that time. Should the lessor refuse to reimburse
Arts. 448-454. said amount, the lessee may remove the
improvements, even though the principal thing
• The rights of OM depends on the rights of LO may suffer damage thereby. He shall not,
and B, and whether he is in GF or in BF. however, cause any more impairment upon the
property leased than is necessary.
I. OM in BF
• With regard to ornamental expenses, the
• He loses all rights to the materials
lessee shall not be entitled to any
• He is liable to consequential damages if reimbursement, but he may remove the
materials are of an inferior quality. (to the party ornamental objects, provided no damage is
who will acquire the building) caused to the principal thing, and the lessor
does not choose to retain them by paying their
II. OM in GF value at the time the lease is extinguished.

• OM is entitled to reimbursement from B. If B • Article 1678 does not apply to one whose
is insolvent, LO is subsidiarily liable. (only if LO possession is by mere tolerance of the
appropriates) landowner. (Aquino v. Aguilar, 29 June 2015).

• If LO opts to destroy the building, or sell the • Dep Ed a BGF although a possessor by
land to B (in case LO is in GF and B is in BF) LO tolerance where LO allowed construction of
cannot be held subsidiarily liable. school on his property. (Dep. of Education v.
Casibang, 27 January 2016).
• If B pays OM, B may demand from LO the
value of the materials and labor. BUT only if LO • Petitioner’s possession of the land was by
appropriates. (and B is in GF) mere tolerance of the respondents. One whose
stay is merely tolerated becomes a deforciant
Some cases on Accession Industrial
occupant the moment he is required to leave.
• Art. 448 does not apply to a lessee since he is He is bound by his implied
aware that land does not belong to him. His
promise that he will vacate upon demand. Art. 457
Petitioner is also not a builder in good faith.
Considering that he occupies the land by mere • To the owners of lands adjoining the banks of
tolerance, he is aware that his occupation of the rivers belong the accretion which they
same may be terminated by the respondents at gradually receive from the effects of the
anytime. (Del Rosario v. Manuel, G.R. 153652, current of the waters.
16 Jan. 04). • Soil deposited along river banks is called
• Art. 448 does not apply to co-owners as a co- “alluvium”
owner who builds on the co-owned property • The process is called “accretion”
does not build on the property of another. If
however there has been a partition, and the • The owner of the lands adjoining the banks of
portion on which the Building stands is rivers is called “riparian owner”
allocated to a co-owner other than the Builder,
Requisites for 457 to apply:
then Art. 448 may be applied. (Del Campo v.
Abesia). 1. The deposit should be gradual and
imperceptible
• Buyer who bought not from the owner but
from an agent is not a builder in good faith if 2. The cause is the current of the river (if caused
the SPA is defective and he did not make the by artificial means, the land will not belong to
proper inquiries. The principal’s cedula was not the owner of the land)
indicated in the acknowledgment portion of the
SPA. (Heirs of Sarili v Lagrosa, 15 Jan 2014). 3. The current must that be of the river

• In case of a narrow encroachment of an • if a lake, creek, stream = Spanish law of waters


adjoining registered land, the encroacher is still apply – it will belong to the owner adjoining
a builder in GF. (Technogas Phils. Mfg. Corp. v. such bodies of water.
CA, 10 Feb 97)
• If the sea, the land belongs to the State
• If the landowner elects to sell the lot, the fair
• The river must continue to exist. (if not, Art.
market value of the land is to be reckoned at
461 applies. Abandoned River Beds)
the time that the landowner elected the choice,
and not at the time that the property was • The increase must be comparatively little.
purchased by the landowner. (Roxas v. Our
Lady’s Foundation, Inc., 6 March 2013) • Accretion on a sea bank = owned by the State.

Accession Natural (immovables) Rule IRT Torrens Title:

• Alluvium (Art. 457) • The alluvium automatically belongs to the


riparian owner BUT it is not automatically
• Avulsion (Art. 459) registered under the Torrens System.

• Change of course of rivers (Arts. 461-462) • Until registered, it will be considered


unregistered land, susceptible to
• Formation of islands (Arts. 464-465)
acquisitive prescription (10 or 30 years.) known portion of land and transfers if to
another estate, the owner of the land to which
X, is the registered owner of a parcel of land the segregated portion belonged retains the
located beside a river. After 10 years, the ownership of it, provided that he removes the
current of the river deposited soil to the land same within two years.
of X. The land area of the deposited soil is
around 50sqm. Y, who is the neighbor of X • This process is called avulsion (sudden
planted on said 50sqm and built a house on segregation of known portion of land)
top of that land. After 50 years, Y claims
ownership over the alluvium. Is Y the owner of • Avulsion = the process whereby the current of
the land, considering that X had a certificate of a river, creek, or torrent segregates from an
title over the parcel of land to which the soil estate on its bank a known portion of land and
was deposited? transfers it to another estate.

• Yes, Y is the owner. Although alluviums are What are the distinctions between alluvium
automatically owned by the registered owner, it and avulsion?
is not automatically covered by the certificate of Alluvium (accretion) vs. Avulsion
title, thus it can be acquired by third persons
through acquisitive prescription. • Gradual deposit of the soil – sudden process
of segregating land
Art. 458
• Soil cannot be identified – land can be
• The owners of estates adjoining ponds or identified
lagoons do not acquire the land left dry by the
natural decrease of the waters, or lose that • Belongs to owner of the property to which it is
inundated by them in extraordinary floods. attached – belongs to the owner from whose
property it was detached (unless he fails to
• This does not cover the case of alluvium. In remove within 2 years).
case of soil deposits, apply the Spanish Law of
Waters. This article applies to the natural If the owner does not remove the land within
decrease of the waters or increase of waters in 2 years, who will own the segregated land?
extraordinary flood.
• If the owner does not remove within 2 years,
(the consideration is the WATER not the SOIL) the owner of the land where the soil was
attached will be the owner.
• Art. 458 does not cover lakes. It only covers
lagoons and ponds. What happens if the owner claims the land
within 2 years but fails to remove the same
• Lakes are covered by the Spanish Law of within 2 years?
Waters
• If the owner does not remove within 2 years,
Art. 459 the owner of the land where the soil was
• Whenever the current of a river, creek or attached will be the owner.
torrent segregates from an estate on its bank a
• Note: in the absence of proof that the change Suppose A claimed the trees, but he failed to
in the course of the river was sudden, the remove them from the property of B. B
presumption is that the change was gradual and claimed ownership over the trees because of
was caused by alluvium and erosion. the failure of A. after 10 years, A wants to
recover the trees, B claims that he is now the
Art. 460 owner of the trees. Who is the owner of the
• ARTICLE 460. Trees uprooted and carried trees?
away by the current of the waters belong to • If not claimed within 6 months, ownership is
the owner of the land upon which they may be transferred. IF claimed but not removed, may
cast, if the owners do not claim them within six be acquired through acquisitive prescription.
months. If such owners claim them, they shall (considered personal property if no longer
pay the expenses incurred in gathering them or attached to the soil)
putting them in a safe place.
• Compensation
• Uprooted trees = belong to the owner of the
land upon which they may be cast, IF the • If the owner of the land to which the trees are
owners do not claim them within six months. casted into incurred expenses for the gathering
or preservation of the trees, then he is entitled
• IF such owners claim them, they shall pay the to compensation.
expenses incurred in gathering them or putting
them in a safe place. Art. 461

During a typhoon, a portion of land of A was • River beds which are abandoned through the
suddenly segregated from his estate and was natural change in the course of the waters ipso
transferred to the other side of the river and facto belong to the owners whose lands are
was attached to the land of B. The segregated occupied by the new course in proportion to
land contained 5 mango trees. the area lost.

Who owns the land? • However, the owners of the lands adjoining
the old bed shall have the right to acquire the
Who owns the trees? same by paying the value thereof, which value
• Note: 460 only applies to uprooted trees. If shall not exceed the value of the area occupied
the trees are transferred together with the land, by the new bed.
then Art. 459 applies. • Art. 461 covers the natural change in the
During a typhoon, 10 trees of A were suddenly course of the river, resulting in the
segregated from his estate and was transferred abandonment of the old river bed.
to the other side of the river and was attached Requisites:
to the land of B.
• The change of the course must be sudden in
Who is the owner of the trees? order that the old river bed may be identified
• The changing of the course must be more or • The new bed is considered property of public
less permanent dominion.

• The change must be a natural one. • 1967 case = the river banks are also
considered property of public dominion.
• There must be a definite abandonment by the
government. (the government may take steps • If the new bed is abandoned, apply Art. 461.
to bring back the river to its old course.
• If the river goes back to its old course, the
• The river must continue to exist. (if the river owner of the land originally flooded will recover
completely dries up, then the old bed will ownership of the land. Applying Art. 461.
belong to the State [public dominion])
Art. 463
Ipso facto = by the mere fact.
• River divides itself into branches leaving a
• The owners whose land is now occupied by piece of land isolated = the owner of the land
the river need not do anything to acquire retains his ownership. If a portion of land is also
ownership over the old bed. separated from the estate by the current, he
also retains his ownership.
• “in proportion to the area lost”:
1st part = isolation = the land did not move.
• if only one owner, he will acquire the old bed Waters surrounded the land.
to the extent of the land he lost.
2nd part = separation = the land moved and was
• If there are two or more owners, then they surrounded by waters.
will acquire the old bed in proportion to the
area they lost. The old bed will be divided and Art. 464
the shares of the owners will be determined.
• Islands which may be formed on the seas
• However… The owners of the lands, adjoining within the jurisdiction of the Philippines, on
the old bed shall have the right to acquire the lakes, and on navigable rivers belong to the
same by paying the value thereof. State.

• The value shall not exceed the value of the Art. 465
area occupied by the new bed.
• Islands which through successive
• This right is given in the interest of agriculture. accumulation of alluvial deposits are formed in
To allow the owner of the adjacent land to non-navigable and non-floatable rivers, belong
cultivate the old bed. to the owners of the margins or banks nearest
to each of them, or to the owners of both
Art. 462 margins if the land is in the middle of the river,
• Whenever a river, changing its course by in which case it shall be divided longitudinally
natural causes, opens a new bed through a in halves. If a single island thus formed be
private estate, this bed shall become of public more distant from one margin than from the
dominion. other,
the owner of the nearer margin shall be the • 3. Specification – giving of a new form to
sole owner thereof. another’s material through application of labor.

Arts. 464-465 Arts. 466-472

• Islands formed on: • Adjunction – 2 movables belonging to


different owners are united in such a way that
• Seas they form a single object; rules:
• Lakes • Generally two objects are involved. We have
• Navigable rivers to determine as between the two which is the
principal object and the accessory.
• Belong to the state.
• ART. 467. The principal thing = that to which
• Non-navigable rivers: the other has been united as an ornament, or
for its perfection.
• Nearer margin
• ART. 468. If it cannot be determined with
• In the middle? Divide longitudinally in halves.
Art. 467:
New island between the old island and the
• That which has greater value is the principal.
river bank?
• If the objects have equal value, that which
• Same rule. Nearer margin. If in the middle
has greater volume.
divide longitudinally in halves.
• Special rule: In painting and sculpture,
Ownership – Right of Accession –
writings, printed matter, engraving and
Movables lithographs, the board, metal, stone, canvas,
paper, or parchment shall be deemed the
Module 4.3 accessory.

Right of Accession – Movables Arts. 466-472

What are the three types of accession with • ART. 466: rights of owners of the movables to
respect to movable property? the new movable.

• 1. Adjunction – 2 movables belonging to • Two movables are united without bad faith –
different owners are united in such a way that the owner of the principal thing acquires the
they form a single object. accessory, indemnifying the former owner
thereof for its value.
• 2. Mixture – combination or union of
materials. Here the respective identities of the • Owner of the accessory is entitled to the value
components are lost. of the accessory.

• Commixtion = solids

• Confusion = liquids
• He may demand that this consist in the paint, he wanted to remove his paint off the
delivery of a thing equal in kind and value, and car. Can B legally do this?
in all other respects, to that employed; OR
• No, by its nature, the paint cannot be
• He may demand the price thereof. (Art. 471) separated without causing injury to the car, the
principal object.
• BUT: Art. 469:
Suppose B demanded that A replace the paint
• if the things united can be separated without used by A with the same brand of paint and
injury, their respective owners may demand with the same amount as to that used by A.
their separation. Can B legally do this?
• If the accessory is MUCH MORE precious than • Yes, B is entitled to indemnity for the paint
the principal, then the owner of the accessory used by A, and he can demand it in the form of
may demand its separation even if it will cause a replacement for the paint used.
injury to the principal thing. (but not cause the
destruction of the principal thing) Suppose A was aware that B owned the paint,
but still continued to use it. Can B demand the
If owner of the accessory is in bad faith: removal of the paint this time?
• He shall lose the thing incorporated • Yes, if the owner of the principal is in bad
• Shall have the obligation to indemnify the faith, the owner of the accessory can demand
owner of the principal object for the damages the separation even if it will cause the
he may have suffered. destruction of the principal object.

If the owner of the principal is in bad faith: Suppose B was aware that A was using his
paint but he did not prevent A from using such
• Owner of the accessory can choose between: paint, is B entitled to indemnity for the value
of the paint?
• Require the owner of the principal to pay the
value of the accessory • No, if the owner of the accessory is in bad
faith, he shall lose his right to the thing
• Require separation of the things, even if it will
incorporated.
cause the destruction of the principal.
Three objects?
• And he is entitled to damages in either case.
• Determine the true principal, all others are
• If both in BF then apply Art. 466 and Art.
considered accessory.
469.
• If two objects can be considered principals,
then determine, as between them
• A painted his car with B’s paint believing that
which is the principal and the accessory.
it was his own paint. B was unaware of this
activity. When B discovered that A used his Arts. 472 and 473
• Mixture – combination or union of materials. • Rice,
Here the respective identities of the
components are lost. • Palay or other grains.

• Commixtion = solids • Examples of confusion:

• Confusion = liquids • Water

• Two things are mixed: • Gasoline

• (1) by the will of their owners, • Alcohol

• (2) by chance and it cannot be separated Art. 474


without injury, or • Specification – giving of a new form to
• (3) by will of only one owner in good faith: another’s material through application of labor.
The material undergoes a transformation or
• The owners shall acquire a right proportional change of identity.
to the part belonging to him, bearing in mind
the value of the things mixed. (co-ownership • In this case, labor is considered the principal
results) object.

If one party is in BF: If the person who use the materials is in GF:

• The one who acted in BF shall lose the thing • He shall appropriate the thing thus
belonging to him; AND transformed as his own; AND

• He is liable for indemnity for the damage • He shall indemnify the owner of the material
caused to the owner of the other thing with for its value. (apply Art. 471)
which his own was mixed. • BUT: if the material is more precious than the
Two parties in BF: transformed thing:

• Treat them in GF, apply Art. 472. (considered • Owner of the materials may appropriate but
mixed by the will of the parties) he must pay for the value of the work

• If the parties gave their common consent? • Or demand indemnification from the person
who transformed the thing.
• Their agreement should govern their rights.
If the person who employed the materials was
• If one party is negligent (even if in GF), he is in BF:
liable for his negligence.
• The owner of the materials shall have the
• Note that in case of a mixture, there results a right to appropriate the work to himself without
co-ownership over the new object. paying anything; OR

Examples of commixtion: • Demand the person who employed the


materials to pay indemnity for the
value of the materials plus damages. • Which is apparently valid or effective

• HOWEVER: the owner of the materials cannot • But it is in truth and in fact invalid, ineffective,
appropriate the work in case the value if the voidable, or unenforceable (was already
work for artistic or scientific reasons, is extinguished or has already prescribed [Art.
considerably more than that of the materials. 478])
(so he can only demand for the value of the
materials plus damages) • And may be prejudicial to said title

Art. 475 • “Title” does not mean a certificate of title. It


refers to the right of a person over property.
• ARTICLE 475. In the preceding articles,
sentimental value shall be duly appreciated. • Note: When an instrument is not valid on its
face, then the remedy of quieting of title does
Quieting of Title not apply.

Module 5 • In one case, the Supreme Court held that


when one is disturbed in his rights of property
Art. 476 over an immovable by the unfounded claim of
• ARTICLE 476. Whenever there is a cloud on others, he has the right to ask from the
title to real property or any interest therein, by competent courts:
reason of any instrument, record, claim, • That their respective rights be determined
encumbrance or proceeding which is
apparently valid or effective but is in truth and • To make the one who has no rights respect
in fact invalid, ineffective, voidable, or and not disturb the other
unenforceable, and may be prejudicial to said
title, an action may be brought to remove such Reasons for allowing the action:
cloud or to quiet the title. • Prevention of future litigation
• An action may also be brought to prevent a • Protection of the true title and possession
cloud from being cast upon title to real
property or any interest therein. • Promotion of right and justice

Two kinds of Quieting of Title: • The courts will determine the rights of the
parties, thus will close the issue as
• Action to remove doubt on the title over real
property (remedial) to the title over the property created by the
PRICE.
• Action to prevent a doubt from being cast
upon the title over real property (preventive) Some cases: existence of a cloud:

Existence of cloud over title is: • An agent with the written authority of the
principal to sell the latter’s
• By reason of a proceeding, record, instrument,
claim, or encumbrance (PRICE)
property, sold the same after the principal’s • The plaintiff must return to the defendant all
death. (antedated the sale) benefits he may have received from the latter,
or reimburse him for expenses that may have
• If the signature is forged redounded to the plaintiff’s benefit.
• A contract by an incapacitated person Art. 480
(voidable)
• The principles of the general law on the
As to prescription: quieting of title are hereby adopted insofar as
• If the plaintiff is in possession = they are not in conflict with this Code.
imprescriptible. The plaintiff may wait until his Art. 481
possession is disturbed or his title is attacked
before taking steps to vindicate his right. • The procedure for the quieting of title or the
removal of a cloud therefrom shall be
• If the plaintiff is not in possession = 10 or 30 governed by such rules of court as the
years. Supreme Court shall promulgate.
• Note: even if the action is brought within the • Governed by Rule 63 of the Rules of Civil
prescriptive period, the action may not prosper Procedure.
due to laches, if no reasonable explanation is
offered to explain the delay in the assertion of
the right.

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.

• Legal title = belongs to the registered owner

• Equitable title = belongs to the beneficial


owner (In case the property is actually owned
by a person other than the registered owner)

Art. 478

• ARTICLE 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

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