Property Thing - anything which can or cannot be appropriated

Kinds:

1. Res nullius - thing belonging to no one

2. Res alicujus - thing belonging to someone

3. Res communes - thing belonging to everyone

4. Res derelicta - abandoned thing

Property - thing which can be appropriated

Requisites:

1. Utility - capability to satisfy human wants

2. Substantivity - capability to stand on its own

3. Appropriability - capability to be possessed/appropriated

Classifications:

1. According to mobility: (Article 414)

a. Immovable/real property

(1) By nature

(2) By incorporation

(3) By destination

(4) By analogy

The following are immovable property: (Article 415)

(1) Land, buildings, roads, and construction of all kinds adhered to the soil

If a building is an object of a chattel mortgage, it is considered personal property, but only by

the parties.

(2) Trees, plants, and growing crops which are attached to the land or form an integral part of an

immovable

(3) Properties attached to an immovable which will cause deterioration if removed

(4) Statues, reliefs, paintings, or other objects for use or ornamentation which are placed in

buildings/land by the owner of the immovable and reveal the intention of permanent attachment

(5) Machineries which:

(a) Were placed by the owner of the land/his agent;

(b) Were placed at the workplace; AND

(c) Are essential/principal to the business

(6) Animal houses which are intended to be permanently attached to the land, including the animals

(7) Fertilizer used on land

(8) Mines, quarries, and slag dumps, and waters

(9) Floating docks and structures which are intended to remain at a fixed place

(10) Contracts for public works and servitudes, and other real rights over immovable property

b. Movable/personal property

The following are movable property: (Articles 416-417)

(1) Any property which does not fall under Article 415

(2) Obligations and actions which have movables as their objects

2. According to ownership: (Article 419)

a. Public (Article 420)

(1) For public use

(2) For public service

(3) For development of national wealth

Regalian doctrine - states that all lands of public domain are owned by the State

Kinds of Lands:

(1) Agricultural

(2) Timber/forest lands

(3) Mineral lands

(4) National parks

Section 2, Article XII of the 1987 Constitution: The State owns ALL mineral lands.

b. Private

Patrimonial property - property of the State in its private capacity (Article 421); public properties no

longer intended for public use or for public service (Article 422)

Alienable and disposable properties can only be acquired by natural Filipinos.

Foreigners can acquire buildings and accessions, but NOT land.

3. According to alienability:

a. Within the commerce of man (can be the object of a contract)

b. Outside the commerce of man (cannot be the object of a contract)

4. According to existence:

a. Present

b. Future

5. According to materiality:

a. Corporeal (objects which can be seen or touched)

b. Incorporeal (objects which cannot be seen or touched; e.g. rights/credits)

6. According to dependence:

a. Principal

b. Accessory

7. According to capability of substitution:

a. Fungible (can be replaced)

b. Non-fungible (cannot be replaced)

8. According to nature:

a. Generic

b. Specific

9. According to custody of the court:

a. In custodia legis (seized by an officer; under the custody of the court)

b. Free property

Ownership Ownership - independent right of a person to have exclusive enjoyment to a thing or right (Article 427)

Bundle of Rights: (Article 428)

1. Jus utendi - right to use

2. Jus abutendi - right to abuse

3. Jus disponendi - right to dispose

4. Jus fruendi - right to the fruits

5. Jus accessionis - right to the accessories

6. Jus vindicandi - right to recover

7. Jus possidendi - right to possess

Limitations:

1. Limitations set by law (e.g. eminent domain - right of the State to own private properties beneficial for

public use)

2. Limitations set by the owner

3. Limitations set by the grantor (person who gave the thing to its present owner)

4. Rights of others

Self-help - right to use force to repel a threatening unlawful physical invasion or usurpation of ones property (Article

429)

State of necessity - doctrine where one is allowed to interfere in anothers property to prevent greater damage (Article

432)

Owner of property may demand from the person benefited indemnity for damages.

Surface right - right for owners of properties to also own everything on its surface, and everything under it (Article 437)

Hidden treasure - deposit of money, jewelry, or any precious object hidden and unknown (Article 438)

If founder of hidden treasure is different from the owner, and finds it by chance, owner and founder receive

equal shares of hidden treasure. If founder is a trespasser, owner receives hidden treasure in full.

If hidden treasure is of interest to science or the arts, the State may acquire it at its just price.

Accession - any addition to a property by production, incorporation, or attachment

Kinds of Fruits: (Articles 441-442)

1. Natural - spontaneous products of the soil, and the young and other products of animals

2. Industrial - produced by lands through cultivation or labor

3. Civil - rents of buildings, prices of leases, and life annuities or other similar income

Articles 445-446: Any addition found in a land is presumed to be owned by the land owner.

If land owner uses materials of another: (Article 447)

Owner of materials is willing to sell

Owner of materials is NOT willing to sell

Land owner is in good faith Land owner shall pay for materials Owner of materials is entitled to

limited right of removal (provided no substantial injury is caused)

Land owner is in bad faith Land owner shall pay for materials

and damages

Owner of materials is entitled to absolute right of removal (whether substantial injury is caused or not)

If a builder builds on the land of another: (Articles 448-451)

1. In good faith, land owner may:

a. Buy the building at current market value; or

b. Sell the land (price should not be considerably higher than the building and the trees)

If land owner decides to buy the building, builder can exercise his right of retention (right to reside in

the building) until he is fully paid.

2. In bad faith, land owner may:

a. Acquire the building without payment and demand payment for damages; or

b. Sell the land (with no limitations on the price to be paid) and demand payment for damages; or

c. Demand demolition of the building and payment for damages

If land owner is yet to make a decision, he CANNOT collect rentals.

Riparian owner - owner of a land adjacent to a body of water (strictly a river; Article 457)

Kinds of Soil Deposit:

1. Alluvium - gradual and unidentifiable deposit; belongs to owner of property it is attached to

When is it alluvium?

a. Gradual and imperceptible deposit

b. Caused by the current

c. Current must be that of a river

d. River is still existing

e. Increase of land is comparatively little

2. Avulsion - sudden and identifiable deposit; belongs to owner of property it was detached from (Article 459)

Article 458: Owner of land adjoining a pond or lagoon does not acquire land left dry by the natural decrease of

the waters nor lose land inundated by floods.

Article 461: If land owner loses land due to change of course of river, he will own a portion of the abandoned

river bed in proportion to the land lost.

Article 462: The State owns the new river bed.

Who owns an island (formed by unidentifiable accumulated deposits):

1. Formed on sea?

a. Within territorial jurisdiction? State

b. Outside territorial jurisdiction? First country to occupy island

2. Formed on lakes/navigable or floatable rivers? State

3. Formed on non-navigable and non-floatable rivers? Owner of property nearer to the island

What if two properties of different owners are equidistant? Each takes one-half to be divided

longitudinally.

Adjunction - union of two different movables into a single object (Article 466)

If owner of principal acted... If owner of accessory acted...

In good faith Owner of principal acquires accessory but

pays owner of accessory Owner of principal acquires accessory

but pays owner of accessory

In bad faith

Owner of accessory can...

Owner of principal acquires accessory and may demand payment for damages

Sell accessory to owner of principal and demand

payment for damages; OR

Exercise absolute right

of removal and demand payment for

damages

What is the principal?

1. Object INTENDED to be the principal

2. If both were, the object of greater VALUE

3. If both are of equal value, the object of greater VOLUME

4. If both are of equal volume, the object of greater MERITS (to be decided by the Court)

Mixture - union of materials wherein their respective identities are lost (Article 473)

Kinds:

1. Commixtion - mixture between solids

2. Confusion - mixture between liquids

Who owns the thing?

1. Mixture in good faith - both

2. Mixture in bad faith - owner in good faith (owner in bad faith is liable for damages)

If both acted in bad faith, they are both considered in good faith.

Specification - one object is turned into a new object (Article 474)

If the new thing is more valuable than materials..

If materials are more valuable than the new thing...

And worker is in good faith

Worker owns new thing and is liable for payment of materials

Owner of materials can...

Acquire the new thing but pay for the work; OR

Demand indemnity from the worker for the

materials

And worker is in bad faith

Owner of materials can...

Acquire the new thing without paying for the work (unless work is more valuable than materials); OR

Demand indemnity from the worker for the materials and damages

Quieting of title - removal of a cloud on title (disturbance/doubt); involves real property (Article 476)

There is a cloud on title because of a/an:

1. Proceeding;

2. Record;

3. Instrument;

4. Claim; or

5. Encumbrance

Action to quiet title:

1. Does not prescribe (if plaintiff is IN POSSESSION of the property)

2. Prescribes in 10 years (if plaintiff is NOT IN POSSESSION of the property)

To file an action, plaintiff must present: (Article 477)

1. Legal title; or

2. Equitable title

Co-ownership Co-ownership - ownership of an undivided thing or right between two or more persons (Article 484)

Co-ownership arises:

1. By law

2. By contract

3. By chance

4. By occupation or occupancy

5. By succession or will

A co-owner CANNOT sell his share of a co-owned property, UNLESS:

1. There was CONSENT from the co-owners; or

2. The property is ALREADY DIVIDED.

Co-owner can exercise his right of ownership over the property, provided he: (Article 486)

1. Does NOT cause injury against co-owners interest

2. Does NOT prevent co-owners to use the property

3. Uses the property for its intended purpose

Three Types of Expenses:

1. Necessary - preserves the property; ALWAYS reimbursable (Article 489)

Co-owner who has made the necessary expense has NO RIGHT OF REMOVAL.

2. Useful - increases the propertys value

which is

APPARENTLY VALID

but is IN FACT

INVALID and MAY

BE PREJUDICIAL to

said title

3. Luxurious - beautifies the property

Article 492: Useful or luxurious expenses shall be decided by the FINANCIAL MAJORITY of the co-

owners.

If a co-owner makes a useful/luxurious expense without the consent of his co-owners, but does not get

indemnified by the co-owners for said expense, he has LIMITED RIGHT OF REMOVAL.

Alteration - change, more or less permanent, in how the thing is being used, which prejudices its condition or enjoyment

by others

Article 491: Alteration requires the consent of ALL CO-OWNERS.

Partition - separation of a co-owners share from a co-owned property

Article 494: Partition can be exercised at any time. It CANNOT be demanded though if there is an agreement

(not exceeding 10 years, but may be extended only after the expiration of the original period) to keep the thing

undivided.

Article 495: Partition CANNOT be made on PHYSICALLY INDIVISIBLE objects or IF IT RENDERS THE THING

USELESS.

Third parties may oppose partition, but CANNOT nullify partition, UNLESS:

1. Co-owners themselves nullify partition; or

2. Partition will prejudice third parties (Article 499)

Juridical dissolution - procedure for dividing physically indivisible objects where the whole is either given to one co-

owner who will indemnify the rest, or, if no one co-owner is agreed upon, sold and its proceeds distributed (Article 498)

When can a co-owner claim sole ownership of a co-owned property?

1. Co-owner must notify other co-owners;

2. Evidence of repudiation and knowledge of other co-owners must be clear and convincing; AND

3. Other requirements of prescription are present

Possession Possession - holding of a thing or enjoyment of a right (Article 523)

Classifications:

1. In ones own name or anothers (Article 524)

2. In the concept of owner or concept of holder (Article 525)

3. In good faith (non-awareness of a flaw which invalidates his title) or bad faith (Article 526)

How is possession acquired? (Article 531)

1. By material occupation/exercise of a right

2. By subjection to our will

3. By proper acts and legal formalities

In cases of conflict, who possesses the thing? (Article 538)

1. The PRESENT possessor

2. If both are present, the one LONGER in possession

3. If both began to possess at the same time, the one who has a title

4. If both have a title, the Court will determine

Article 559: One who has lost any movable or has been unlawfully deprived thereof may recover it from the

person in possession of the same.

Article 1505: Owner cannot claim a stolen movable from a person who has acquired the same at public sale,

or at a merchants store, fair, or market.

Usufruct

Usufruct - gives a right to enjoy anothers property while preserving the form and substance of the property (Article

562)

Right to usufruct includes the right to use and right to fruits.

The usufructuary (one who has the right to usufruct) is NOT ALLOWED to convert the thing in usufruct.

Article 572: Contracts entered into during the usufruct period will end as the period of usufruct ends.

Abnormal usufruct - usufruct on an object that deteriorates because of normal use (Article 573)

An owner cannot be the usufructuary of his own property.

Usufruct is temporary, transmissible, and deals with either real or personal property.

Article 581: Owner cannot alter his property while it is under a contract of usufruct.

What are the obligations of the usufructuary? (Article 583)

1. Before the usufruct?

a. To make an inventory

b. To give security

Caucion juratoria - promise under oath at Court in lieu for a security to take care of the property (Article

587)

These may not be necessary depending upon the naked owner.

2. During the usufruct? To preserve the form and substance of the property

Who is liable for: (Articles 592-593)

1. Ordinary repairs (wear and tear due to the natural use of the thing)? Usufructuary

2. Extraordinary repairs? Owner

When can the usufructuary make extraordinary repairs? (Article 594)

1. If usufructuary has notified owner of the need to repair;

2. Repair must be urgent;

3. Owner failed to make repairs; AND

4. Repair is needed for preservation

How is usufruct extinguished? (Article 603)

1. Death of usufructuary

If the owner dies, heirs of the owner become the owners.

2. Expiration of the period

3. Merger of usufruct and ownership

4. Renunciation of the usufructuary

5. Total loss of the thing

6. Termination of the right of the person constituting the usufruct

7. Prescription

Article 607: If there is usufruct on land where a building is constructed, and the latter is destroyed, the

USUFRUCTUARY prevails for the use of the land.

If there is usufruct on only the building, and it is also destroyed, the OWNER prevails for the use of the land.

Easements and Servitudes Easement - encumbrance imposed upon an immovable in favour of another immovable (Article 613)

Dominant estate - immovable which benefits from the easement

Servient estate - immovable upon which the easement is paced

Servitude - broader English term for easement

Classifications of Easements: (Articles 615-616)

1. Apparent (readily seen) or non-apparent (show no external indication of existence)

2. Continuous (used incessantly or continuously) or discontinuous (depend on human intervention)

3. Positive (imposes the servient owner to allow something to be done on his property) or negative (prohibits

the servient owner from doing something)

Articles 617-618: Easements are inseparable/indivisible.

How are easements: (Articles 619-622)

1. Established?

a. By law

b. By will of the owners

2. Acquired?

a. By title

b. By prescription of 10 years (for continuous and apparent easements ONLY)

Prescription starts from establishment (if positive) or from the time formal prohibition was made (if

negative).

What are the different legal easements? (Article 634)

1. Easements relating to waters

a. Natural drainage (Articles 637 and 674)

b. Easement on riparian banks (Article 638)

c. Easement of a dam (Articles 639 and 647)

d. Easement for drawing water (Articles 640-641)

e. Easement of aqueduct (Articles 643-646)

2. Right of way - easement by which one person or a particular class of persons is allowed to pass over

anothers land (Article 649)

Easement of right of way is APPARENT AND DISCONTINUOUS. Therefore, it CANNOT be acquired by

prescription.

An owner of a piece of land has the right to demand a right of way through the neighboring estates,

after payment of proper indemnity, UNLESS isolation of his property was caused by his own acts.

If a piece of land is: (Articles 652-653)

Acquired by sale, exchange, or

partition Acquired by donation

Estate of the grantee/donee is enclosed by estate of the grantor/donor

Payment for right of way is NOT needed

Payment for right of way is needed

Estate of the grantor/donor is enclosed by estate of the grantee/donee

Payment for right of way is needed

Payment for right of way is NOT needed

How is a right of way extinguished? (Article 655)

(1) Opening of a new road

(2) Abutting (dominant estate joins another estate which has access to public highway)

3. Party wall - wall at the dividing line of estates (Article 658)

It is NOT a party wall if: (Article 660)

a. It has a window/opening

b. It tapers on one side

c. It is on the boundaries of one estate

d. It bears the burden of the binding beams, floors, and roof frame of one building, but not of other

buildings

e. It is constructed in such a way that the coping sheds the water upon only one estate

f. It has stepping stones on only one side

g. Lands enclosed by fences adjoin lands which are not

4. Light and view

How are easements of light and view acquired?

Provides direct view Provides side/oblique view

Positive easement 10 years after establishment

Negative easement 10 years after formal prohibition

AND must be 2 METERS from estate which can be viewed

10 years after formal prohibition AND must be 60 CENTIMETERS

from estate which can be viewed

Article 673: If an easement of light and view is already acquired, the servient owner CANNOT construct

buildings which will obstruct its view, unless it is 3 METERS away from the boundary line.

Trees CANNOT be planted: (Article 679)

1. LESS THAN 2 METERS from boundary line (for tall trees)

2. LESS THAN 50 CENTIMETERS from boundary line (for small trees/shrubs)

Lateral support - support from the sides

Subjacent support - support above the supporting land

Nuisance Nuisance - anything which hinders enjoyment of property (Article 694)

Kinds of Nuisances: (old classification)

1. Per se - always a nuisance

2. Per accidens - nuisance because of the location

Kinds of Nuisances: (Article 695)

1. Public - affects a community

2. Private - any nuisance which is not public

Attractive nuisance - dangerous instrumentality likely to attract children at play

Article 698: Lapse of time cannot legalize any nuisance.

Remedies against a Public Nuisance: (Article 699)

1. Criminal case

2. Civil case

3. Abatement without judicial proceedings

Article 700: The district health officer shall make sure that one or all of the remedies against a public nuisance

are availed of.

Requisites for Abatement: (Article 704)

1. Must be demanded first upon the owner of the property

2. Said demand was rejected

3. Abatement must be approved by the district health officer

4. Value of destruction must not exceed P3000

Acquisition of Ownership

Modes of Acquiring Ownership: (Article 712)

1. Original modes (owner is the first owner)

a. Occupation (Article 713)

Property to be acquired by occupation must be res nullius/res derelicta.

Article 716: Domesticated animals may be claimed within 20 DAYS from their occupation.

Article 719: Lost movable (not treasure) shall be delivered to the owner. If unknown, finder shall

deposit it with the mayor to be publicly announced within 2 weeks (8 days if movable cannot be

kept without deterioration.)

If after 6 months, the owner still has not appeared, thing is awarded to the finder.

If owner appears in time, he shall pay the finder one-tenth of the lost movables value.

b. Intellectual creation (Article 721)

2. Derivative modes (somebody else was the owner before)

a. Succession

b. Donation

c. Prescription

(1) Acquisitive - acquisition of a property/right by the lapse of a period

(2) Extinctive - loss of property/right by the lapse of a period

d. Law

e. Tradition (delivery)

(1) Actual (physical delivery)

(2) Constructive

Donation Donation - gratuitous disposition of a thing/right (Article 725)

Donation is a form of a contract.

Requisites of a Contract:

1. Consent

2. Object

3. Cause/consideration

Kinds of Contracts:

1. Consensual - requires consent for validity

2. Formal - requires the right form for validity

3. Real - involves real property

Article 726: Services which do not constitute demandable debts can serve as the cause/consideration of a

contract of donation.

Kinds of Donations:

1. Simple - liberality as cause/consideration

2. Remuneratory/compensatory - to reward services

3. Modal - donation with a burden less than the value

4. Onerous - donation with a burden equal to the value

The first two follow rules on donation (require the right form for validity); the last two follow rules on

contract (mere consent makes the donation valid)

Other Classifications of Donations:

1. Inter vivos - donation which takes effect during the lifetime of the donor

2. Mortis causa - donation by reason of death

Article 727: Donations with illegal/impossible conditions are disregarded.

Stages of a Contract:

1. Negotiation

2. Perfection

Article 734: Donation is perfected when donor knows of the acceptance.

3. Consummation

Who CANNOT donate? (Article 735)

1. Minors

2. Incapacitated persons/imbeciles

3. Persons who are deaf/mute/who do not know how to read and write

4. Prodigality

5. Civil interdiction

Twin Capacities for a Donor:

1. Must be able to enter into a contract

2. Can dispose of contract

Article 737: Donors capacity is determined at the perfection of the contract.

Who CANNOT receive donations? (Articles 738 and 743)

1. Specially disqualified persons

2. Incapacitated persons

Donations are VOID if constituted: (Articles 739-740)

1. By persons who are guilty of adultery/concubinage

2. By persons who are guilty of the same criminal offense

3. To a public officer or his/her spouse, descendants, and ascendants

4. To persons incapable to succeed by will (if donations is mortis causa)

If the same thing is donated to 2/more persons, who owns the thing? (Article 744)

1. Person who first REGISTERED it in good faith (if immovable property)

2. Person who first POSSESSED it in good faith (if movable property/all donees have registered the immovable

property)

3. If all donees possessed it at the same in good faith, person with the OLDEST TITLE

Article 746: Acceptance must be made during the lifetime of the donor and of the done (except for donations

mortis causa.)

Donation of a movable: (Article 748)

1. Worth more than P5000 - must be made IN WRITING

Acceptance must also be made in writing.

2. Worth at most P5000 - may be made either orally or in writing, but there must be SIMULTANEOUS DELIVERY

of either the thing/document representing the right donated

Acceptance may also be made either orally or in writing.

Requisites for a Last Will and Testament:

1. 3 witnesses

2. Attestation clause

Article 749: Donations regarding immovable property must be made in a public instrument. Acceptance must

also be in a public instrument.

Article 753: Donation to several persons jointly is understood to be in equal shares.

There is NO RIGHT OF ACCRETION (right to acquire share refused by another donee) unless stated

otherwise.

In donations to husband and wife, there is right of accretion unless stated otherwise.

Article 754: Donor is liable for hidden defects/eviction if donation is modal/onerous.

Reversion - thing goes back to the donor (Article 757)

When can reversion be established?

1. If it is in favour of only the donor

2. If it is in favour of a third person AS LONG AS the donor, done, and third person are all LIVING at the

PHYSICAL/MECHANICAL GIVING OF THE PROPERTY

Revocation - making a donation void

When can a donor revoke his donation? (Articles 760, 764-765)

1. Birth, appearance, or adoption of a child

2. Non-compliance of a resolutory condition

Article 768: Donee shall return the fruits of the thing if the donation was revoked because of non-

compliance with the condition.

3. Ingratitude of the donee

a. Donee commits an offense against donor, his property, his wife, or his children

b. Donee accuses or becomes a witness against donor of criminal offense or any act involving moral

turpitude (acts causing moral injury), UNLESS act was committed against the done, his wife, or his

children

c. Donee unjustifiably refuses to give financial support to the donor

Reduction - reducing the thing donated

When can a donor reduce his donation?

1. Donor donated without reserving sufficient support for himself

2. Donor donated more than what he can give by will (this is called an inofficious donation)

3. Donor donated without reservation for payment of debts

4. Birth, appearance, or adoption of a child

When will the right to revoke/reduce prescribe?

1. Ingratitude - 1 year

2. Inofficious donation - 5 years

3. Others - 4 years

Prescription Laches - negligence to perform a right within a reasonable time

There is NO prescription between: (Article 1109)

1. Husband and wife

2. Parents and children

3. Guardian and ward

Interruption - stops the course of the prescription period and all its acquired rights/benefits

Kinds of Interruption:

1. Natural

2. Civil

How to Interrupt Extinctive Prescription:

1. Filing of case

2. Written extra-judicial demand

3. Written acknowledgment

Source: Paras, E. L. (2008). Civil Code of the Philippines annotated (16th ed.). Manila, Philippines: Rex Book Store.