PROPERTY (DEFINITION):

- according to Article 414 of the Civil Code, all things which are or may be the object of
appropriation, is a property (movable and immovable).

THING (DEFINITION):
- is broader since it includes both appropriable and non-appropriable objects.

When a thing that is beyond the commerce of man (not considered as property) is included in
a contract, the stipulation or the portion which included that thing, is VOID.

CHARACTERISTICS of properties of PUBLIC DOMINION: OCCCGT

1. Outside the commerce of man.
2. Cannot be acquired by prescription.
3. Cannot be registered under the Land Registration Law and be subject of a Torrens Title.
4. Cannot be levied upon by execution, nor can they be attached.
5. Generally, can be used by everybody.
6. They may either be real or personal.

CLASSIFICATIONS of PROPERTY: MOMADWENC

(A) MOBILITY and NON-MOBILITY
1) Movable or Personal Property (like a car)
2) Immovable or Real Property (like land)

(B) OWNERSHIP
1) Public dominion or ownership (like rivers)
2) Private dominion or ownership (like a fountain pen)

(C) MATERIALITY OR IMMATERIALITY

1) Tangible or Corporeal (objects which can be seen or touched, like the paper on which is
printed a P1,000 Bangko Sentral Note)
2) Intangible or Incorporeal (rights or credits, like the credit represented by a P1,000
Bangko Sentral Note)

(D) ALIENABILITY
1) Within the commerce of man (or which may be the objects of contracts or judicial
transactions)
2) Outside the commerce of man (like prohibited drugs)

(E) DEPENDENCE OR IMPORTANCE

1) Principal
2) Accessory

(F) WHETHER IN THE CUSTODY OF THE COURT OR FREE

1) In custodia legis (in the custody of the court) — when it has been seized by an offi cer
under a writ of attachment or under a writ of execution. (De Leon v. Salvador, L-30871,
Dec. 28, 1970).
2) “Free’’ property (not in “custodia legis’’).

(G) EXISTENCE
1) Present Property (res existentes)
2) Future Property (res futurae)

[NOTE: Both present and future property, like a harvest, may be the subject of sale but
generally not the subject of a donation.].

(H) NATURE OR DEFINITENESS

1) Generic (one referring to a group or class)
2) Specific (one referring to a single, unique object)

(I) CAPABILITY OF SUBSTITUTION

1) Fungible (capable of substitution by other things of the same quantity and quality)
2) Non-fungible (incapable of such substitution, hence, the identical thing must be given or
returned)
IMPORTANCE OF CLASSIFICATION OF A PROPERTY:
- The classification of property into immovables or movables does not assume its importance
from the fact of mobility or non-mobility, but from the fact that different provisions of the
law govern the acquisition, possession, disposition, loss, and registration of
immovables and movables.

ARTICLE 415
(Immovable Property)

ART. 415. THE FOLLOWING ARE IMMOVABLE PROPERTY:

1) Land, buildings, roads and constructions of all kinds adhered to the soil;
2) Trees, plants, and growing fruits, while they are attached to the land or form an integral part
of an immovable;
3) Everything attached to an immovable in a fixed manner, in such a way that it cannot be
separated therefrom without breaking the material or deterioration of the object;
4) Statues, reliefs, paintings, or other objects for use or ornamentation, placed in buildings or
on lands by the owner of the immovable in such a manner that it reveals the intention to
attach them permanently to the tenements;
5) Machinery, receptacles, instruments or implements intended by the owner of the tenement
for an industry or works which may be carried on in a building or on a piece of land, and
which tend directly to meet the needs of the said industry or works;
6) Animal houses, pigeon-houses, beehives, fish ponds or breeding places of similar nature,
in case their owner has placed them or preserves them with the intention to have them
permanently attached to the land, and forming a permanent part of it; the animals in these
places are included;
7) Fertilizer actually used on a piece of land;
8) Mines, quarries, and slag dumps, while the matter thereof forms part of the bed, and waters
either running or stagnant;
9) Docks and structures which, though floating, are intended by their nature and object to
remain at a fixed place on a river, lake, or coast;
10)Contracts for public works, and servitudes and other real rights over immovable property.

Paragraph 5:

Essential requisites for machinery to be considered as an immovable or REAL PROPERTY BY

DESTINATION OR PURPOSE:
1. The placing must be made by the owner of the tenement, his agent, or duly authorized
legal representative.
2. The industry or works must be carried on in the building or on the land.
3. The machines, etc., must tend directly to meet the needs of said industry or works.
(ADAPTABILITY).
4. The machines must be essential and principal elements in the industry, and not merely
incidental.

Paragraph 5 refers to real property by destination or purpose Effect of Separation:

If it is still in the building but not used for the industry, it reverts to mere chattel. But if it still
needed, although separated temporarily, it continues to be an immovable.

CLASSIFICATION OF REAL PROPERTIES: NIDA

1) IMMOVABLE BY NATURE, or those which cannot be moved from place to place, such as
those mentioned in Nos. 1 and 8 in Article 415 (trees, if they are spontaneous products of
soil; lands, roads, mines and quarries as well as sewers, regardless of any consideration);

2) IMMOVABLE BY INCORPORATION, or those which are attached to an immovable in such

a manner as to form an integral part thereof, such as those mentioned in Nos. 1 (buildings
and other structures adhered to the soil except land and roads), 2 (if they were planted
through labor, 3 and 4 of Article 415 (those attached to an immovable in a fixed manner,
irrespective of ownership);
 3) IMMOVABLE BY DESTINATION, or those which are placed in an immovable for the use,
ornamentation, exploitation or perfection of such immovable, such as those mentioned in
Nos. 4, 5, 6, 7 and 9 of Article 415 (and machineries and other implements);

4) IMMOVABLE BY ANALOGY, or those which are considered immovables by operation of

law, such as those mentioned in No. 10 of Article 415 (real rights over immovable, right of
usufruct, easements or servitudes).

ARTICLE 416
(Movable Property)

THE FOLLOWING THINGS ARE DEEMED TO BE PERSONAL PROPERTY: TRIF

(1) Those movables susceptible of appropriation which are not included in the preceding article;
(2) Real property which by any special provision of law is considered as personalty;
(3) In general, all things which can be transported from place to place without impairment of the
real property to which they are fixed; and
(4) Forces of nature which are brought under control by science.

OTHER INCORPOREAL MOVABLES.

- A Patent, A Copyright, The Right to An Invention — these are intellectual properties
which should be considered as personal property.

TESTS TO DETERMINE WHETHER PROPERTY IS MOVABLE OR IMMOVABLE: 3-I

1) If the property is capable of being carried from place to place. (Test by Description 1)
2) If such change in location can be made without injuring the real property to which it
may in the meantime be attached. (Test of Description 2)
3) If finally, if the object is not one of those enumerated or included in Art 415. (Test by
Exclusion)

Article 419 - Property is either of public dominion or of private ownership.

PROPERTY CLASSIFIED ACCORDING TO OWNERSHIP:

(a) public capacity (dominio publico)
(b) private capacity (propiedad privado)

Article 420 - The following things are property of public dominion:

1) Those intended for public use, such as roads, canals, rivers, torrents, ports and bridges
constructed by the State, banks, shores, roadsteads, and others of similar character;
2) Those which belong to the State, without being for public use, and are intended for some
public service or for the development of the national wealth.

PROPERTIES OWNED BY THE GOVERNMENT:

1. Property of Public Dominion
2. Patrimonial Property

‘PUBLIC DOMINION’ - means the ownership by the State; that the State has control and
administration; ownership of the public in general that not even the State or subdivisions thereof may
make them the object of commerce as long as they remain properties for public use. Such is the
case, for example, of a river or a town plaza.
WHAT ARE PROPERTIES OF THE PUBLIC DOMINION? 3-T
1. Those intended for public use (Par. 1) - may be used by anybody; Property for public
use, in the provinces, cities and municipalities, such as provincial roads. City streets,
municipal streets, squares, and public works for public service paid for by the said
provinces, cities and municipalities.
2. Those intended for the development of national wealth - like our natural resources.
3. Those intended for public service (Par. 2) - such as the national government buildings,
army rifles army vessels, etc. (may be used only by duly authorized persons).

PATRIMONIAL PROPERTY - is the property of public dominion it owns but which is no longer
intended to public use, public service, or the development of the national wealth. It is wealth owned
by the State in its private, as distinguished from its public, capacity. (Article 422)

Patrimonial properties may be acquired by private individuals or corporations thru prescription

(10 years). (Art. 1113).

CEBU OXYGEN AND ACETYLENE CO., INC. vs. BERCILLES

L-40474, Aug. 29, 1975

FACTS:
The City Council of Cebu, in 1968, considered as an abandoned road, the terminal portion of one of
its streets. Later it authorized the sale thru public bidding of the property. The Cebu Oxygen and
Acetylene Co. was able to purchase the same. It then petitioned the RTC of Cebu for the registration
of the land. The petition was opposed by the Provincial Fiscal (Prosecutor) who argued that the lot is
still part of the public domain, and cannot therefore be registered.

ISSUE:
May the lot be registered in the name of the buyer?

RULING:
Yes, the land can be registered in the name of the buyer, because the street has already been
withdrawn from public use, and accordingly has become patrimonial property or a property in their
private capacity. The lot’s sale was therefore valid.

MUN. OF CAVITE vs. ROJAS

30 Phil. 602

The municipal council withdrew and excluded for public use a part of the plaza in order to
lease the same for the benefit of defendant. The court held the lease was null and void because
streets and plazas are outside the commerce of man and are for public use. In allowing the lease, the
municipality exceeded its authority. The lessee must vacate and must be reimbursed if he did not get
any benefit out of the lease.

CAPISTRANO, et al. vs. MAYOR, et al.

CA 44 O.G. 2798
If a plaza is illegally leased to private individuals, the lease is void, and any building on said plaza
built by the “lessee” such as a restaurant, may be demolished.

THREE FUNDAMENTAL RIGHTS APPERTAINING TO OWNERSHIP

OWNERSHIP REALLY CONSISTS OF THREE FUNDAMENTAL RIGHTS: DUF
(a) Jus Disponendi (right to dispose)
(b) Jus Utendi (right to use)
(c) Jus Fruendi (right to the fruits)

[NOTE: The combination of the latter two (jus utendi and fruendi) is called USUFRUCT (from the term
“usufructus”). The remaining right (jus disponendi) is really the essence of what is termed “naked
ownership.”].
RIGHTS OF AN OWNER UNDER THE CIVIL CODE
Under Art. 428, the owner has:
(a) the right to enjoy
(b) the right to dispose
(c) the right to recover or vindicate.

The right to enjoy includes:

(a) the right to possess
(b) the right to use
(c) the right to the fruits.

The right to dispose includes:

(a) the right to consume or destroy or abuse
(b) the right to encumber or alienate.

The Seven Attributes of Ownership/Rights of an Owner under ROMAN LAW PUFAADV

(a) Jus Possidendi — the right to possess. It is different from ownership (judgment of ownership
does not include the right to possess except when claim of possession is based upon the claim
of ownership).
(b) Jus Utendi — the right to use and enjoy, it may also include the right to exclude any person
from enjoyment and disposal of the thing (relate to Civil Code, Arts. 429 and 431).
(c) Jus Fruendi — the right to the fruits (natural, industrial, and civil). Possessor in good faith
(CC, Art. 544), usufructuary (CC, Art. 566), lessee of agricultural (Art. 1676) and antichretic
creditor (CC, Art. 432) are entitled to the fruits even if they are not the owner.
(d) Jus Abutendi — the right to consume (and also to transform or abuse) subject to the
provisions of law (e.g. disposition of wealth to the prejudice of others)
(e) Jus Accessiones — the right to accessories.
(f) Jus Disponendi — the right to dispose
(g) Jus Vindicandi — the right to recover or the right of action against the holder and possessor
of the thing or right in order to recover it

TWO REQUIREMENTS TO RAISE A DISPUTABLE PRESUMPTION OF OWNERSHIP AC

(a) Actual Possession; and
(b) Claim Of Ownership.

Thus, a tenant, who admits his tenancy, cannot be presumed to be the owner. The article
applies to both movable and immovable property.

RECOURSE TO JUDICIAL PROCESS

The true owner has to resort to judicial process to recover his property, only if the possessor
does not want to surrender the property to him, after proper request or demand has been
made. Article 433 of the Civil Code (Supia v. Quintero, 59 Phil. 312).

RIGHT OF OWNERSHIP NOT ABSOLUTE

There are limitations which are imposed for the benefit of humanity, and which are based on
certain legal maxims, such as the following:
(a) The welfare of the people is the supreme law of the land.
(b) Use your property so as not to impair the rights of others. “Sic utere tuo ut alienum non
laedas.’’ “The owner of a thing cannot make use thereof in such a manner as to injure the
rights of a third person.’’ (Art. 431).
THE LIMITATIONS ON OWNERSHIP SOP
(a) Those given by the State or the Law.
— police power, power of taxation, power of eminent domain
— the legal easement of waters, the legal easement of right of way.

(b) Those given by the owner (or grantee) himself.

—when the owner leases his property to another, said owner in the meantime cannot
physically occupy the premises; when the owner pledges his personal property, he has in the
meantime to surrender its possession.

(c) Those given by the person (grantor) who gave the thing to its present owner.
— the donor may prohibit the donees from partitioning the property for a period not exceeding
twenty (20) years.

THE ROLE OF THE INIHERENT POWERS OF THE STATE TO LIMITATIONS OF OWNERSHIP

‘POLICE POWER’ - is the right of the State to regulate and restrict personal and property rights for
the common weal. (Director of Lands v. Abella, 54 Phil. 455).

‘POWER OF TAXATION’ - is the inherent power of a State to raise income or revenue to defray
necessary governmental expenses for a public purpose.

‘POWER OF EMINENT DOMAIN’ - the right of the State to acquire private property for public use
upon payment of just compensation.

DOCTRINE OF ‘SELF-HELP’ - The owner has the right to exclude any person from the enjoyment
and disposal of the property by use of such force as may be necessary to repel or prevent actual or
threatened unlawful physical invasion or usurpation of his property; the right to counter, in certain
cases, force with force. Basis for this Doctrine: THE CONCEPT OF SELF-DEFENSE

REQUISITES: ROAD
1. There is reasonable force or unlawful aggression.
2. The owner or lawful possessor is the person who will exercise.
3. There is actual or threatened physical invasion or usurpation; and
4. There is no delay in one’s exercise of the Doctrine. (i.e. at the time if an actual or threatened
dispossession, or immediately after the dispossession. Once delay has taken place, even if
excusable, the owner or lawful possessor must resort to judicial process for the recovery of the
property (CC, Arts. 433, 536; DE LEON, Property)

Correlation: Art. 11 of RPC on self defense includes not only defense to a man’s person, but also
that of his rights to property. Thus, the doctrine of self-help can be applied in criminal law.

TREASURE - is understood, for legal purposes, any hidden and unknown deposit of money, jewelry,
or other precious objects, the lawful ownership of which does not appear. ARTICLE 439

OTHER PRECIOUS OBJECTS - should be understood to refer to those of the same class as money
or jewelry, and should not therefore include property imbedded in the soil, or part of the soil, like
minerals.
REQUISITES IN THE DEFINITION OF HIDDEN TREASURE HCT
(a) Hidden and unknown deposit (such that finding it would indeed be a discovery).
(b) Consists of money, jewelry or other precious objects.
(c) Their lawful ownership does not appear.

WHO IS THE OWNER OF A TREASURE FOUND IN YOUR LAND

- The owner of the property because of the owner’s Right by Accession. The Accessories of the
land follows the Principal (the land itself). So, if you own the Principal, you also own the
Accessories because you own the surface of the land, above and below it.

ACCESSION - is the right of a property owner to everything which is produced thereby or which is
incorporated or attached thereto, either naturally or artificially.

FRUITS INCLUDED IN ACCESSION: NIC

1) Natural Fruits
2) Industrial Fruits
3) Civil Fruits