up 2008 civil law (property)

8/12/2019 UP 2008 Civil Law (Property)

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PROPERTY CIVIL LAW

1 U P L AW U P B A R O P S 2 0 0 8 Page35 of325

Property

TABLE OF CONTENTS

I. Classification 36II. Ownership 41

III. Accession 42

IV. Quieting of Title 48

V. Ruinous Buildings and Tress in Danger of Falling 49

VI. Co-Ownership 49

VII. Condominium Law (Act. No. 4726) 55

VIII. Possession 57

IX. Usufruct 63

X. Easements 65

XI. Legal Easements 70

XII. Voluntary Easements 77XIII. Nuisance 78

XIV. Registry of Property 80

XV. Different Modes of Acquiring Ownership 80

XVI. Prescription 81

XVII. Tradition 82

XVIII. Lease 83

XIX. Donation 89


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PROPERTY CIVIL LAW

PROPERTY

I. CLASSIFICATION

CLASSIFICATION as to mobilityArt. 414 (1) Immovable or real property(2) Movable or personal property

Art. 415. Immovables : MADAMS CFLAT

1. Land, buildings, roads,

constructions adhered to soil;

2. Trees, plants, growing fruits--attached to land/form integralpart of immovable

3. Everything attached to

immovable in fixed manner--

cannot be separated withoutbreaking / deterioration

4. Statues, reliefs, paintings,objects for ornamentation inbuildings / on lands

a. by the owner of

immovableb. manner reveals intention

to attach

permanently5. Machinery, receptacles,

instruments, implements

intended by owner for anindustry; works whichmay be carried on inbuilding or on a piece of land,

and tend directly to meet theneeds of industry or works

6. (6) Animal houses, pigeon-

houses, beehives, fish ponds,

breeding places in caseowner placed / preserves

them with intention to be

permanently attached to land,AND form permanent part of it

--animals are included7. Fertilizer actually used on a piece

of land8. Mines, quarries, slag dumps,

while matter their matter forms

part of the bed, and watersrunning or stagnant

9. Docks and structures which,

though floating, are intended by

their nature and object to remainat a fixed place on a river, lake,or coast;

10. Contracts for public works, andservitudes and other realrights over immovable

property.

Classification:1. immovables by nature - (1) and (8)

2. immovables by incorporation- (2) (3)

(7)

3. immovables by destination- (4) (5)

(6) (9) and object to remain at a fixed

place on a river, lake, or coast4. immovables by analogy or by law-(10)

Art. 416. Personal Property(Movables):

FLONTS(1)Those movables susceptible of

appropriation Not included in thepreceding article;

(2)Real property which by law is

considered as personal property;(3)Forces of nature which are brought

under control by science;(4) all things which can be transported

from place to place without impairmentof the real property to which they

are fixed.

Machinery which is movable innature only becomes immobilized

when placed in a plant by the owner

of a property or plant, NOT whenplaced by a tenant, usufructuary etc.

unless acting as an agent of theowner.

(Davao Sawmill v. Castillo, 1935)

.a building is an immovable

property, irrespective of whether or

not said structure and the land onwhich it is adhered belong to the

same owner. (Lopez v. Orosa) Since only personal properties could

be the subject of a chattel mortgage,the execution and registration of the

chattel mortgage and the foreclosure

of the house are null and void.(Associated Insurance & Surety

Co. v. Iya 1958 ) It is undeniable that parties to a

contract may treat as personalproperty that which by nature would

be real property; and for purposes oftaxation, what is naturally personal

property may be classed as real

property. If the properties subject tothe chattel mortgage are indeed not

personal properties, the mortgagewould be ineffective as against third

parties, but this is for the courts todetermine and not by the register of

deeds. (Standard Oil vs. Jaramillo

1923) Re: building under chattel mortgage-

- separate treatment by the partiesof a building from the land on which

it stands does not change theimmovable character. An inscription

of a deed of sale of real property in

the chattel mortgage registry cannotbe given the legal effect of aninscription in the registry of real


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PROPERTY CIVIL LAW


property. (Leung Yee v. Strong

Machinery, 1981)

Where chattel mortgage isconstituted on machinerypermanently attached to the ground,

machinery is personal property and

mortgage is not null and void,regardless of who owns the land. It

is undeniable that the parties to acontract may by agreement treat as

personal property that which by itsnature would be real property, as

long as no interest of third parties

may be prejudiced thereby. (MakatiLeasing and Finance Corp v.

Wearever Textile Mills 1983)

Differences between Real Rights andPersonal Rights

Kinds of rights considered as property(a) Real (jus in re)power belonging to

a person over a specific thing. It

gives direct and immediate juridical

power over a thing susceptible ofbeing exercised against a

determinate person and the wholeworld.

(b) Right of obligation or Personal (jusad rem)rights belonging to one

person to demand of another as a

definite passive subject, thefulfillment of a prestation to give, to

do, or not to do.

Real rights arises from(OPLUMEPARP)

1. Ownership

2. Possession3. Lease

4. Usufruct5. Mortgage

6. Easement7. Pledge

8. Antichresis9. Redemption

10. Preemption

Real Rights Personal Rights

(1) One definiteactive subject

and the rest of

the world aspassive

(2) Object is a

corporeal thing.

(3) Real right affectsthe thing

directly.

(4) The creation ofthe juridicalrelation is by

(1) There i s adefinite active

and passive

object.(2) Object is an

intangible

thing.

(3) Personalaffects the

thing directly

through theprestation of

the debtor.

(4) Creation ofthe juridicaltitle is by title

mode and title.

(5) Extinguished by

the loss ordestruction of

the thing.

(6) Gives rise to realactions against3rd persons

alone.(5) Not

extinguished

by the loss ordestruction of

the thing.

(6) Producesonly personalactions against

definite

debtor.

Classification of Movables

(a) Consumables includes those

movables which cannot be used in amanner appropriate to their naturewithout their being consumed

(b) Non-consumable- includes allothers

Classification According to

Ownership

a) Public Dominion 420

i. intended for public useii. intended for public service of state,

provinces, cities & municipalities

Characteristics:i. outside the commerce of men

ii. cannot be acquired throughprescription

iii. not subject to attachment &

executioniv. cannot be burdened by voluntary

easement

* Art. 424. Property for public use, inthe provinces, cities, and municipalities,

consist of: (RSS FW P3)

Roads, Streets, Squares, Fountains,Public Waters, Promenades, Public

Works for public service paid for by the

local governmentAll other property possessed by any ofthem is patrimonial.

b) Private Ownership 421i. patrimonial property of state,

provinces, cities, municipalities

-exist for attaining economic ends

of state-property of public dominion when

no longer intended for public

use/service declared patrimonial

ii. property belonging to private

persons individually or

collectively


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PROPERTY CIVIL LAW

Cases

Churches and other consecrated

objects are outside the commerce ofman (Barlin vs. Ramirez, 1907)

Reclaimed land is public property. In

case of gradual erosion by the ebb

and flow of the tide, private propertymay become property of the public

domain, where it appears that theowner abandoned it or permitted it

to be destroyed. When they stay inthat condition until reclaimed by

filling in done by the government,

they continue to be governmentproperty after reclaiming. Immediate

possession by the former owner doesnot confer on him ownership of the

lots, because, as they wereconverted into property of the public

domain, no private person couldacquire title except in the form andmanner established by law.(Government of the Philippine

Islands v. Cabangis)

The sale to private parties of a public

road which has been validly closed

by the city government is valid. Basis: Art 422 CC (Cebu Oxygen andAcetylene v. Bercilles, 1975)

The attachment of the municipal

trucks, police cars, police station andmarket stalls is void because the

properties levied upon are exemptfrom execution. Property for public

use of the municipality is not withinthe commerce of man so long as it is

used by the public. (Vda. De

Tantoco vs. Municipal Council ofIloilo)

Under the law on MunicipalCorporations, however, to be

considered public property, it isenough that property be held and

devoted for governmental purposes.(Province of Zamboanga delNorte v. City of Zamboanga,1967)

ACTIONS FOR THE RECOVERY OF IMMOVABLEPROPERTY

FORCIBLE ENTRY ORUNLAWFUL

DETAINER

PLENARY ACTION

TO RECOVER POSSESSION

(ACCION

PUBLICIANA)

ACTION TO RECOVER

POSSESSION BASED ONOWNERSHIP

(ACCION

REINVINDICATORIA)

FORCIBLE ENTRYUNLAWFUL ENTRY

Possession unlawful

from time of entry.Prior physical

possession is

INDISPENSABLE.Decision here is res

judicata only as to

possession.PRESCRIPTIVE PERIOD1 year period starts

from last demand to

vacate.Possession was lawfulat first but later

became illegal, i.e.

defendant withholdspossession after

expiration of his right.

Prior physicalpossession is NOTREQUIRED.

A civil proceeding torecover the better

right of possessionexcept in cases of

forcibleentry/unlawful

detainer.

Also used to refer toan ejectment suit

filed after the

expiration of 1 yearfrom the unlawfulwithholding of

possession of the

realty.

An action to seek therecovery of ownership,

necessarily including thejus utendiand jus fruendi.


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WHENAPPLICABLE

1. Whendispossession is

by any means

other than thosementioned in

SEC 1 RULE 70

RoC2. When, although

any of the

special

circumstances ispresent, wherethe 1 year

prescriptive

period forbringing an

action for forcible

entry or unlawfuldetainer hasexpired

ISSUE Physical/material

possession (possession

de facto) (i.e. NOT civilpossession orpossession de jure,

which arises from theownership or is one ofthe attributes of

ownership), of which a

person 1) has been

deprived or 2) againstwhom it has been

withheld by any of the

means/circumstancesmentioned in RULE 70

Possession de jure

of realty

independent of thetitle and restitutionof possession.

This action is distinctand different froman action for

recovery of title or

ownership.

A judgmentrendered here is

conclusive only as to

the question of possession, but not

as to the question of

ownership.

Ownership, recovery of the

dominion over the property

as owner.If the issue of possessionhas already been decided,

this is the only action thatcan be filed.

WHO MAYINSTITUTE

1. A person deprivedof the possession of

any land or buildingby force,

intimidation, threat,strategy, or stealth

(forcible entry underRULE 70) ;

2. A landlord, vendor,

vendee, or otherperson against

whom thepossession of any

land or building is

unlawfully withheldafter the expiration/termination of the

right to hold

possession by virtueof any contract,

express or implied

(unlawful detainer);or

3. The legal

representatives/

assigns of any suchlandlord, vendor,

An owner who isdispossessed by

means other thanthose mentioned in

RULE 70 RoC, orwhen the possession

of land is due totolerance of theowner.

It is not necessaryto wait until the

expiration of 1 yearbefore

commencement of

action.It can also be filedafter the expiration

of the 1 year period

if no action forforcible entry or

unlawful detainer

has been filed duringthat time, otherwise,barred.

Legal owner or one withthe better right over the

property.In an action for

reconveyance, what issought is the transfer of

the property which hasbeen wrongfully/erroneously registered in

another persons name, to:1) its rightful and legal

owner; or 2) to one withthe better right


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PROPERTY CIVIL LAW

vendee or otherperson

WHAT HASTO BEALLEGED

1. Prior possession defacto

2. Undue deprivation

thereof

When the complaintfails to aver acts

constitutive of forcible

entry/unlawful detainer(how he wasdispossessed), the

remedy should beeither accion publicianaor accion

reinvindicatoria.

In an ejectment suit,issue of ownership canbe passed upon by the

court only bydetermining the issueof possession de facto.

An action for ejectment

is merely a quietingprocess. If plaintiff hasin his favor priority in

time, he has thesecurity that entitleshim to remain in the

property (even against

the owner himself) until

he is lawfully ejected bya person having a

better right by an

accion publiciana oraccion reinvindicatoria.

For an action toreconveyance to prosper,the property should not

have passed into the hands

of an innocent purchaserfor value.

WHERE

FILED

MTC

Summary In nature

these cases involve adisturbance of social

order which must beabated as promptly as

possible without anyundue reliance on

technical andprocedural rules

RTC

Prescriptive Periods:

1. 4 yearsif based onfraud from date of

issuance of certificate of title

over property2. 10 yearsif based

on implied orconstructive trust

3. Imprescriptible

when plaintiff is inpossession of

property4. 30 years (without

prejudice to what is

established for theacquisition of ownership and other

real rights by

prescription-ART1141)if real

actions over

immovables


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PROPERTY CIVIL LAW


II. OWNERSHIP

Art. 427. Ownership may be exercised

over things or rights.

Ownership is subject to restrictions

imposed by:1. LAW and2. RIGHTS of others

Attributes of Ownership (UFADVPA)

1. Jus possidendi- right to possess2. Jus Utendi (right to use)right to

enjoy by receiving the thing that

it produces.

3. Jus abutendiright to enjoy by

consuming the thing by its use4. Jus Disponendithe right todispose or encumber, transform,

and even destroy the thingowned.

5. Jus Fruendi right to receive

fruits

6. Jus vindicandiright to excludefrom the possession of the thingowned by any other person to

whom the ownership has nottransmitted such thing, by theproper action for restitution, with

the fruits, accessions, andindemnification for damages.

7. jus accessionis- right to theaccessories

Other specific rights: (HARJEES)8. Right to Exclude: Doctrine of Self-Help (429)

Elements:a) Person exercising rights is owner

or lawful possessor

b) There is actual or threatened

unlawful physical invasion of hisproperty (not available tosquatters)

c) Use force as may be reasonablynecessary to repel or prevent it-Available only when possession

has not yet been lost, if already

lost resort to judicial process-May be exercised by 3rd person negotiorum gestio

- Art. 431. cannot make use

thereof in such manner as to injure therights of a third person.

9. Right to Enclose or Fence withoutdetriment to servitudes constitutedthereon (430)A person cannot enclose his tenement

and construct a fish pond that will

obstruct the natural flow of waters fromthe upper tenements to the injury of the

owners of such tenements. (Lunod v.

Meneses)

10. Right to Receive Just Compensationin case of Expropriation (435)exception 436: when any property is

condemned or seized by competent

authority in the interest of health, safetyor security

11. Right to Space and SubsoilThe right of the owner extends to the

space and subsoil as far as necessary forhis practical interests or to the point

where it is possible to assert his

dominion and there is the possibility ofobtaining some enjoyment or benefit.

Beyond these limits, he would have nolegal interests.

12. Right to Hidden Treasure (if foundon his property)

a) hidden and unknown movablesconsist of money or preciousobjects

b) owner is unknown

c) If treasure is found by a stranger

by chance belongs to finder;the finder must not be trespasser

be entitled to a share. Discovery by chance

When there is no purpose or intentto look for the treasure.

13. Right to accession

14. Right to recovery or possession/ownership

Actions for possession:1. movable replevin (return of a

movable)2. immovable

a) forcible entry

b) unlawful detainerc) accion publiciana

d) accion reinvindicatoriae) Writ of Possession -- the original

registered owner is entitled to awrit of possession against the

parties who appear and answer inthe land registration proceedings

and against all those who, having

been served with process, do notappear or answer.

f) Writ of injunction

May be used to prevent or

restrain acts of trespass or illegalinterference by others of his

possession of the property.

Requisites in an action to recover

(a) Identity of the property(b) Strength of plaintiffs title/ Better

Title

Limitation of Real Right of

Ownership(1) For the benefit of the state and for

public interest (Police power,

eminent domain, taxation)


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PROPERTY CIVIL LAW

(i) Expropriation for public use(ii) Military requisitions

(iii) Zonification laws(iv) Public or government monopolies(v) Law on water and mines(vi) Public health and safety

(vii)Public easements

(2) Legal servitudes and VoluntaryServitudes

(3) Limitations imposed by partytransmitting property

(i) Either by contract or last will or

donations(ii) Stipulation on inalienability

(4) True Owner Must Resort to Judicial

Process(5) It is unlawful to exercise the right of

ownership in such a manner as to haveno other effect than to injure a thirdperson without benefit to the owner.

(a) Act in State of Necessity

The law permits the injury ordestruction of things belonging to

others provided this is necessaryto avert a greater danger or

dangers.

Different from concept of self-

help; the purpose is to protect

the actor himself or anotherperson at the expense of the

owner of the property who has nopart in the state of necessity.

(b) Liability of Proprietors under

Article 2191, for damagegs

caused by exposion of machinery,

excessive smoke, falling of trees,emanations from canals

(c) Fortified places or Fortresses-must comply with special laws

and regulations(d) Easement of Aqueduct- must

observe proper distances and

prevent damage to neighboringtenements

(e) Planting of Trees(f) Easements

(g) Lateral and Sub-adjacentSupport

- Cannot commit crime in theexercise of ownership (People

vs Segovia, 1958)- Can file action for recovery of

possession even if one has neverpossessed the land; action is

plenary action for recovery of

possession (De La Paz vs.Panis, 1995)

III. ACCESSION

Art. 440. The ownership of property

gives the right by accession toeverything which is produced thereby, orwhich is incorporated or attached

thereto, either naturally or artificially.

General Principles of Accession

(1) Accessory follows the principal

(2) No unjust enrichment (Art. 443)(3) All works, sowing, and planting

are presumed made by owner & athis expense, unless otherwise proved

(Art. 446)

(4) Accessory incorporated toprincipal such that it cannot be

separated without injury to workconstructed or destruction to

plantings or construction of works.(5) Bad faith involves liability for

damages

(6) Bad faith of one party neutralizesbad faith of the other (Art. 453).

(7) Ownership of fruits belong to the

principal thing; Exceptions: (PULA)(i) possession in good faith is

entitled to fruits

(ii) usufructuary is entitled to fruits

(iii) lessee is entitled to fruits(iv) antichretic creditor is entitled tofruits

Kinds of Accession

(1) Accession discreta the rightpertaining to the owner of a thing

over everything produced thereby:

(a) Natural fruits, or spontaneous

products of the soil, and the

young and other products ofanimals (Art. 442)

(b) Industrial fruits, or thoseproduced by lands of any kinds

through cultivation or labor (Art.442)

(c) Civil fruits, or rents of buildings,

the price of leases of and otherproperty and the amount ofperpetual or life annuities or

other similar income (Art. 442)

A dividend, whether in cash orstock, is income or fruit and

consequently should go to the

usufructuary, rather than theowner of the shares of stock.

Dividend is declared only out of

the profits of a corporation andnot out of its capital. (Bachrachvs. Seifert).


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PROPERTY CIVIL LAW


A bonus paid by the mortgage-

debtor to another who had

mortgaged his land to secure thepayment of the debtorsobligation to a bank is not a civil

fruit of the mortgaged property.

It is not income delivered fromthe property but a compensation

granted for the risk assumed bythe owner of the property.

(Bachrach vs. Talisay-Silay)

(2) Accession Continua the right

pertaining to the owner of a thingover everything that is incorporated

or attached thereto, either naturallyor artificially.

(a) With regard to immovable

property(a.1) Accession industrial

(BPS)

(i) Building,(ii) Planting, or(iii) Sowing (Arts. 445-456)

(a.2) Accession natural (FACA)

(i) Alluvium(ii) Avulsion

(iii)Change in the course of

river(iv)Formation of islands

(b) With regard to movable property(ACS)(b.1) Adjunction or

conjunction

(i) inclusio or engraftment

(ii) soldaduraor attachment

(a) ferruminatio objects

are of the same metal(b) plumbatura objectsare diff. metals

(iii) tejido or weaving

(iv)pintura or painting

(v) escritura or writing

(b.2) Commixtion or confusion

(b.3) Specification

Accession Industrial

Art. 446 establishes 2 disputablepresumptions regarding BPS:

(a) The works etc. were made by theowner

(b) They were made at the ownersexpense

Exception: When contrary is proven

Right of owner of materials (OM)

1. Right to be indemnified or paid of

value of property by owner ofland

2. Right to remove materials if hecan do so w/o injury to work

constructed if owner has not paid3. Right to damages and demolition

even if with injury to work if owner of land is in bad faith

BUILDING, PLANTING, SOWING

a) BPS / Land-owner +

Owner of Materials 447

- Land-owner GF: took

materials with no

knowledge that itbelonged to a 3rd

person- Land-owner BF: took

materials knowing fullywell that it belonged to

a 3rd person- Owner of Materials GF:

demanded payment /no idea of taking

- Owner of Materials BF:regardless


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PROPERTY CIVIL LAW

Land-owner / BPS (by himself or thru

another)

Owner of Materials

GF: pay value of materials and own thething built

GF: right to be paid value of materialsMay remove materials if can be separated

without injury (no accession) but accession

prevails (hence, most likely only get paid)BF: pay value of materials + damages

GF: right to be paid value of materials +

indemnity or remove materials even with

damage + indemnity

GF: pay value of materials regardless of

bf/gf of OMAnother view: 449 by analogy, no

reimbursement

BF: right to be paid value of materials

Another view: 449 by analogy, loses rightto materials, no reimbursement

BF: (both considered good faith) BF: (both considered good faith)

a) BPS / Owner of Materials + Land-owner

- Land-owner GF: no knowledge of illegal BPS- Land-owner BF: has knowledge of illegal BPS and does not oppose it

453 (2)- BPS/OM GF: s/he does not know that he built on anothers land- BPS/OM BF: has knowledge that he had no right to build, plant or sow

Land-owner BPS / Owner of Materials

GF:options

1. Appropriate works, sowing or planting+ pay indemnity

2. Oblige BP to pay price of land (or pay

rent if land value > building and trees)

or Sower to pay rentRent fixed by agreement of parties; if

not, by court 448

GF

GF: options

1. Appropriate without indemnity 4492. Compel removal without indemnity at

BPSs expense 450

3. Compel BP to pay price of land (noconditions) and Sower, the proper rent

450

Whichever option chosen, entitled toreceive damages 451

BF: loses what is built, planted or sown,with no right to indemnity 449

Still entitled to reimbursement for

necessary expenses of preservation of the

land 452Whichever option chosen, must pay LO

damages451

BF: 447 by analogy 454

Pay value of materials + damages

GF: options (447 by analogy 454)

1. Remove works, sowing or planting evenwith damage

2. Force payment of indemnity

BF: (both considered GF) BF: (both considered GF) 453 (1)

b) BPS + Land-owner + Owner of Materials455


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PROPERTY CIVIL LAW


Land-ownerBPS OM

GFGF (GF) GF

LO appropriates and pays indemnity: OM can proceed against LO only after BPS

refuses/cannot pay, OM cannot remove

LO sells land to BPS: OM can only proceed against BPS

GF BF (GF) GF

LO compels demolition: OM cannot claim from LO, BPS solely liable

LO appropriates and pays indemnity: OM can proceed against LO only after BPSrefuses/cannot pay, OM cannot remove


BFGF (GF) GF

BPS removes even with damage: OM can only go after BPS

BPS forces LO to pay indemnity: OM cant demand removal/return but OM can proceed

against BPS and subsidiarily, the LOBF BF (GF)GF

Similar to GF-GF-(GF)-GFLO appropriates and pays indemnity: OM can proceed against LO only after BPSrefuses/cannot pay, OM cannot remove


GF GF (BF)GF

LO appropriates and pays indemnity: OM can proceed against LO only after BPS

refuses/cannot pay, OM cannot removeLO sells land to BPS: OM can either ask BPS for indemnity + damages or remove

material even with damage

GF BF (BF)GF

LO compels demolition: OM can compel return of material by removing even with

damage + damages or OM can ask for indemnity + damages

LO appropriates: OM cant remove because right of removal applies only to BPS in BF,LO cant be prejudiced; OM only entitled to the value of materials (indemnity) +

damages from LOLO sells land to BPS: OM can compel removal (straightforward 447) or ask BPS for

indemnity + damagesBF GF (BF)

GF

BPS removes even with damage: OM can either compel BPS to pay indemnity or toreturn materials, in both cases + damages

BPS forces LO payment of indemnity: OM cant demand removal/return but OM can

proceed against BPS and subsidiarily, the LO

BF BF (BF)GF

Similar to GF-GF-(BF)-GF

LO appropriates and pays indemnity: OM can proceed against LO only after BPSrefuses/cannot pay, OM cannot remove

LO sells land to BPS: OM can either ask BPS for indemnity + damages or removematerial even with damage


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PROPERTY CIVIL LAW

Cases:

A forced co-ownership occurs when the

BPS has acted in good faith. Owner of theland ihas the right of retention (to pay)

because his right is older and because, bythe principle of accession, he is entitled to

the ownership of the accessory thing.(Bernardo vs. Baticlan)

Since the option to remove or demolishimprovement is given to the LO and it is

limited to paying for the improvement or

selling his land to the BPS, he cannotrefuse to exercise his right of choice and

compel the builder to remove or demolish

the improvement. He is entitled to suchremoval only when after choosing to sellhis land, the other party fails to pay for

the same. (Ignacio vs Hilario)

An order by a court compelling a builder ingood faith to remove is building from land

belonging to another who chooses neitherto pay for such building nor sell the land isnull and void for being offensive to Art.448. (Sarmiento v. Agana)

While a possessor in good faith may retainthe property until he is reimbursed for

necessary and useful expenses, all thefruits he receives from the moment his

good faith ceases must be deferred or

paid by him to the LO. He may, however,secure the reimbursement of his expenses

by using the fruits to pay it off (deduct thevalue of the fruits he receives from thetime his good faith ceases from the

reimbursement due him). (Ortiz vs

Kayanan)

A BPS in good faith does not lose hisrights under Art. 448 merely because of

the fact that some years after acquiringthe property in good faith, helearned

about and aptly recognized the right of

the LO to a portion of the land occupiedby the building. The supervening

awareness does not prejudice its right toclaim the status of a builder in good faith.(Tecnogas Phil. Manufacturing Corp.

vs CA)

The BPS in good faith should not payrentals to the LO spouses. The spouses,

having opted to appropriate the

improvement on the lot, have toreimburse the BPS of the cost of construction of the building (in accordance

with Art 546). The BPS has the right toretain the improvements until he isreimbursed. An implied tenancy or

possession in fact is created pending the

payment of the corresponding indemnity.(Pecson v CA)

Good faith consists in the belief of the

builder that the land he is building on is

his and he is ignorant of any defect or

flaw in his title. And as good faith is

presumed, the LO has the burden ofproving bad faith on the part of the BPS.(Pleasantville Devt. Corp. v CA, 1996)

After the BPS had refused to restore theland to the LO, to the extent that the

latter even had to resort to the presentaction to recover his property, the LO

could no longer be regarded as havingimpliedly assented or conformed to the

improvements thereafter made by

appellant on the premises. (Felices v.Iriola)

(2) Accession in Natural

(i) Alluvium 457 the accretion

which lands adjoining the banks orrivers, lakes, creeks or torrents

gradually receive from the

Requisites of alluvium: (CANG)

(a) The accretion must be gradual

(b) The cause must be the

current of the water

(c) The land where the

accretion takes place must beadjacent to the banks

(d) must be natural*riparian owner owner of the landfronting such riverbanks

The alluvium, though automatically ownedby the riparian owner from the momentthe soil deposit can be seen, is not

automatically registered property, since it

is subject to acquisition throughprescription by 3rd persons. (Grande vsCA)

(ii) Avulsion 459 takes place

whenever the current of a river,lake, creek or torrent segregatesfrom an estate on its bank a known

portion of land and transfers it toanother estate

Distinguished from Alluvium

Alluvium Avulsion

1. Deposit of soil isgradual

2. Deposit of thesoil belongs to the

owner of theproperty where the

same was deposited

3. The soil cannot

be identified

1. Deposit of soil issudden or abrupt

2. The owner of theproperty from which

a part was detachedretains the

ownership thereof(2 yrs)

3. The detached

portion can beidentified


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PROPERTY CIVIL LAW


Requisites of Avulsion (SIC)

(a) The segregation and transfer is

caused by current of water

(b) The segregation and transfer mustbe sudden or abrupt

(c) The portion of land

transported must be known andidentifiable

Rights of the riparian owner

Removal within 2 years

The former owner preserves hisownership of the segregated portion

provided he removes (not merelyclaims) the same within the period of

2 yrs. Art. 460 applies only to uprooted

trees. If a known portion of land with

trees standing thereon is carried awayby the current to another land, Art.

459 governs.

(iii) Change of river beds

that which takes place when a river

bed is abandoned through thenatural change in the course of thewaters (Art. 461)

Requisites for the application of Art.

461:

(a) There must be a change in

the natural course of the waters of

the river.

(b) The change must be abrupt

or sudden.

Right of owner of land occupied by

new river course

1. Right to old bed ipso facto in

proportion to area lost2. Owner of adjoining land to old bed

shall have right to acquire thesame by paying its value value

not to exceed the value of areaoccupied by new bed

3. Formation of island in non-

navigable rivera) owner of margin nearest to

islands formed if nearest to itb) owner of both margins if

island is in the middle (dividedinto halves longitudinally)

(iv) Formation of islandseither on the seas within the

jurisdiction of the Philippines.

On lakes, and on navigable or

floatable rivers (Art. 464) or non-

navigable and non-floatable rivers(Art. 465).

(1) Ownership of islands formed throughalluvion

(a) If formed:

(a.1) on the seas within Phil.

jurisdiction

(a.2) on lakes, and

(a.3) on navigable or floatable waters,the island belongs to the State

(b) If formed in non-navigable and

non-floatable rivers:

(b.1) it belongs to the nearest riparian

owner or owner of the margin orbank nearest to it as he is

considered in the best position to

cultivate and develop the island

(b.2) it is divided longitudinally in

halves, if it is in the middle of theriver

(c) Concept of navigable river A navigable river is one which

forms in its ordinary condition by

itself or by uniting with otherwaters a continuous highway over

with other waters a continuous

highway over which commerce isor may be carried on.

Test: A river is navigable if it is used or

susceptible of being used, in its ordinary

condition, as a highway of commerce, thatis, for trade and travel in the usual and

ordinary modes.Accession Continua-Movable property:

(1) Adjunction or Conjunction thatwhich takes place whenever movablethings belonging to different owners

are united in such a way that they

cannot be separated without injury,thereby forming a single object (Art.466)

Ownership of new object formed byadjunction

Owner of Principal OPOwner of Accessory OA

(a) union in Good Faith OP acquires

accessory, AND pays OA for itsvalue in uncontroverted state.

(b) union in Bad Faith


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PROPERTY CIVIL LAW

-if OA incorporated in BF

1. lose the thing and

2. indemnify OP fordamages-if OP acted in BF

1. OA has right to choose

-payment of value-separation (even if

destroys principal)2. OA indemnified

(c) If OP or OA made theincorporation with the knowledge

and without the objection of the

other, their respective rights shallbe determined as though both

acted in good faith.(d) if involves 3 things Art. 466

should be applied in an equitablemanner. The principal should be

determined and distinguished fromthe others which would beconsidered the accessories.

TEST to determine principal inadjunction:

In order of application, the principal is

that:(a) To which the other (accessory) has

seen united as an ornament or for

its use or perfection (Art. 467)-INTENT

(a) Of greater value, if they areunequal values-VALUE

(a) Of greater volume, if they are of anequal value (Art. 468)-VOLUME

(a) That of greater merits taking into

consideration all the pertinent legalprovision applicable as well as thecomparative, merits, utility and

volume of their respective things.

(3) Specification that which takes place

whenever a person imparts a new

form to materials belonging to anotherperson (Art. 474).

Ownership of the new object inspecification

Person who made Transformation PTOwner of Material OM

(a) If PT is in Good Faith, he shall

1. appropriate thing transformed

as his own2. indemnify owner of material

BUT If material is more precious thantransformed thing OM may

1. appropriate new thing to himself

and indemnify labor OR

2. demand indemnity formaterials

(b) If PT is in Bad Faith,

1. OM shall appropriate work to

himselfWithout paying maker OR

2. demand indemnity for value of

material & damages

BUT If transformed thing is more

valuable than material, owner ofmaterial cannot appropriate

(3) Commixtion or confusion that whichtakes place whenever there is a mixture of

things solid or liquid belonging to differentowners, the mixture of solids being called

commixtion, while that of liquids,confusion (Art. 472).

Rights1. If both owners are in good faith

Each owner shall acquire a right

proportional to the part belongingto him (vis-a-vis the value of thethings mixed or confused)

2. If one owner is in bad faith he

shall lose the thing belonging tohim plus indemnity for damagescaused to owner of other thing

mixed with his thing3. If both in bad faith no cause of

action against each other

IV. QUIETING OF TITLE

It is a remedy or form of proceeding

originating in equity jurisprudence, which

has for its purpose an adjudication that aclaim of title or an interest in property,adverse to that of complainant, is invalid,

so that the complainant and thoseclaiming under him may be forever free

from any danger of the hostile claim.

Requisites(1) There is a cloud on title to real

property or any interest to real

property (Art. 476)

(2) Plaintiff has legal or equitable titleto or interest in the subject/real

property.

(3) Instrument, record, claim,

encumbrance or proceeding must be validand binding on its face but in truth and

in fact invalid, ineffective, voidable orunenforceable; contract upon which

defendant relies has been extinguished orterminated, or has prescribed

(4) Plaintiff must return benefitsreceived from the defendant.


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PROPERTY CIVIL LAW


Differences between action to quiet title, action to remove a cloud, and action toprevent a Cloud

QUIET TITLE REMOVE CLOUD PREVENT CLOUD

Purpose is to put to an end

to vexatious troublesomelitigation over the property

involved

Intended to procure the

cancellation; delivery; releaseof an instrument, encumbrance

or claim, which constitutes aclaim in plaintiffs title, and

which may be used to injure orto vex him in his enjoyment of

his title.

Removal of a possible

foundation for a futurehostile claim.

Remedial action: involving apresent adverse claim

Preventive action: removes cloudwhich may be used for futureactions

Preventive action: to preventa future cloud on the title

Plaintiff asserts his own

estate and declaresgenerally that thedefendant claims some

estate on the land, without

defining it and avers thatthe claim is withoutfoundation and calls on the

defendant to set forth thenature of his claim fordetermination

Declares his own title and also

avers he source and nature ofthe defendants claim, pointsout its defects and prays it be

declared void

Filed against people who haveclaims; claims are moregeneral in nature

Filed against defendant whoasserts claims based on an invalidinstrument (but not apparent)

Prescription of actionImprescriptible

if plaintiff is in possession; if not,

prescribes within period for filing accionpubliciana, accion reivindicatoria.

Notes:An action for reconveyance:

a) Prescribes in 10 years if the

plaintiff is NOT in possession of

the property and if the action forreconveyance is based on an

implied or constructive trust. The

point of reference is the date ofregistration of the deed or thedate of the issuance of the

certificate of title over theproperty.

b) Is IMPRESCRIPTIBLE if theperson claiming to be an owner is

in actual possession of the

property. Here, the right to seekreconveyance in effect seeks to

quiet title. (Olviga v. CA)

It is not necessary that thevendee has an absolute title. An

equitable title is sufficient to

clothe him with personality to

bring an action to quiet title.(Pingol v. CA)

What plaintiff imagined as cloudscast on his title were PRs alleged

acts of physical intrusion and not.an instrument, record, claim,

encumbrance or proceeding

which constitutes or casts a

cloud, doubt, question or shadow

upon the owners title or interestin real property. Clearly, the acts

alleged may be considered

grounds for an action for forcibleentry but definitely not one forquieting of title. (Titong v. CA)

V. RUINOUS BUILDINGS AND

TREES IN DANGER OF FALLING

Liability for damages:1. collapse engineer, architect or

contractor2. collapse resulting from total or

partial damage; no repair made

owner; state may compel him todemolish or make necessary workto prevent if from falling

3. if no action done by

government at expense of owner

VI. CO-OWNERSHIP

Art. 484. There is co-ownershipwhenever the ownership of an undivided

thing or right belongs to differentpersons.


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PROPERTY CIVIL LAW

Characteristics of Co-ownership

(PUSAM)

(1) plurality of owners, but only onereal right of ownership

(2) unity of material of the object of

ownership

(3) recognition of ideal shares or aliquot(4) absolute control of each co-owner

over his ideal share, not over specificportions of the property

(5) mutual respect among co-owners inregard to the use, enjoyment, and

preservation of the property owned

in common.

Differences between co-ownershipand joint tenancy

Co-ownership Joint Ownership

Tenancy inCommon,Ownership in

Common, Co-

dominium

Joint tenancy,Tenancy incommon, Notion of

all-for one, one-

for-all

Civil law origin Common Law/Anglo-American

origin

Each co-ownerowner of his ideal

share

Each joint owner,the surviving joint

owners aresubrogated in his

rights by accretionEach co-ownermay dispose of his

undivided share

without the othersconsent.

Joint owner mustobtain the consent

of all the rest to

dispose of hisshare.

In case there is a

co-owner who is aminor, minority as

a defense againstprescription is

exclusive to him.

The defense of one

joint owner can beused as a defense

by all joint owners.

Differences between partnership

and co-ownership

Ordinary

Partnership

Co-ownership

With legal/juridicalpersonality distinct

from its members

No legalpersonality distinct

from its members

Created only byagreement or

contract to thateffect

created by LAWFOCUS [Law,

Fortuitous Event,Occupancy,

Contract,Succession]

Purpose is to

obtain profit

Purpose is

collectiveenjoyment and to

maintain the unity

and preservation ofthe things owned in

common.

No term set limitset by law

As a rule, anagreement to keepthe ownership formore than 10 years

is void.

Creditors of individual partners

cannot attach andsell on execution

the shares of

partners in thepartnership

Creditors of a co-owner can attach

his shares in theco-owners and sold

on execution

Can be

extinguished by

the death orincapacity of oneparty

Death or incapacity

of a co-owner does

not affect existenceof a co-ownership

There is mutualrepresentation of

the parties

A special authorityis needed for such

representation.

A partner cannot

transfer his rightsto a 3rd person

without theconsent of the

others

A co-owner can

freely dispose ofhis share without

need to ask theconsent of the

other co-owners.

Distribution of

profits can bestipulated upon(profit-sharing)

Profits of a co-

owner depend onhis proportionateshare; profit-

sharing isinvariable (Art.485) not subject to

stipulation

Sources of co-ownership

(1) Law(a) Cohabitation

(i) Between man and woman

capacitated to marry eachother. (Art 147, FC)

(ii) Between man and woman not

capacitated to marry eachother (Art. 148, FC)

(b) Absolute community property

(Art. 90, FC)(c) two or more persons purchase

property and by common consentlegal title is taken in the name of

one of them for the benefit of all,an implied trust is created in

favor of the others in proportion

to each to interest of each. (Art.

1452)

(d) Succession

(i) Intestate succession (1078)(ii) Testateif property is given

to two or more heirs by the

testator


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PROPERTY CIVIL LAW


Redemption done by one of

the co-owners/heirs will benefit

his other co-owner heirs despitethe fact that they did notcontribute to the redemption

money.

(e) Donation

donation to several personsjointly, it is understood to be in

equal shares

no rights of accretion unless the

donor otherwise provides

b ut if donation is made tohusband and wife jointly, there

shall be a right of accretion,unless contrary so provide.

(f) Chance commixtion in good

faith (Art. 472, NCC)(g) Hidden treasure co-ownership

between finder and owner(h) Easement of a party wall

(i) Occupation Harvesting and

fishing(Punsalan et al. v. Boon Liat

et al.)(j) Condominium law

Sec. 6(c) of RA 4726 unlessotherwise provided, common areas

are held in common by the holders of

the units in equal shares, one foreach unit.

(2)Contract

(a) Two or more persons agree tocreate a co-ownershipmaximum

of ten years (494, 2nd par),

extendable by a new agreement.(b) Universal Partnership

(i) Of all present properties (Art.1778-1779, NCC)

(ii) Of profits (Art. 1780,NCC)

(c) Associations and Societies,whose articles are kept secret

wherein anyone of the members

may contact in his own namewith third persons (no juridical

personality)

Rights of each co-owner as to thething owned in common: FRom

CUERPO

(1) proportionate Fruits and benefits

(485)(2) Repairs for preservation (489-490)

(3) Compel contribution (488)(4) Use according to purpose intended

(486)

(5) bring an action for Ejectment (487)(6) legal Redemption (1620)(7) demand Partition and terminate co-

ownership (494-496; 498)

(8) full Ownership of proportion (493)

(1)Right to share in the fruits andbenefits in proportion to his

interest

PROVIDED the charges are borne by

each in the same proportion A contrary stipulation is VOID.

Portions are presumed equal unlesscontrary is proved.

Accretion added to any portion of

land co-owned becomes part of theproperty in co-ownership and should

be divided according to each co-owners proportionate share.

(2)Right to make repairs for

preservation

Necessary expenses- taxes and expenses for the

preservation of the thing which if

not made would endanger theexistence of the thing or reduce

its value or productivity- may be incurred upon the will of

1 co-owner, but if practicable, hemust give reasonable notice to

the other co-owners

Useful expenses

- increase the income of the thingowned in common for the benefit

of all the co-owners- a lone co-owner cannot incur

such expenses without the

consent of the others and thenask reimbursement (resolution of

majority as per Art. 492)- Effect of failure to notify co-

owners even if it was practicableto do so: does not deprive co-

owner of right to reimbursement.He is merely given the burden to

prove the necessity of such

repairs. He will not be fullyreimbursed if others can prove

that i.e., could have hired acontractor who would charge less

(3)Right to compel the other co-

owner to contribute

For:

1. expenses for preservation2. taxes

BUT co-owner has option not tocontribute by renouncing so much of

his undivided interest equal to the

amount of contribution EXCEPT ifwaiver is prejudicial to co-ownership


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PROPERTY CIVIL LAW

(4)Right to use the thing according

to its intended purpose

may be altered by agreement,express or implied, provided:

- without injury or prejudice to

interest of co-ownership; andwithout preventing the use of

other co-owners Any act against the collective

interest is an act against ownershipand the remedies available to owners

in general may by used by the co-

owner

(5)Right of to bring an action inejectment

no need to implead all the other co-

owners as co-plaintiffs because thesuit is deemed to be for the benefitof all: a favorable decision willbenefit everyone but an adverse

decision will not affect them if they

are not parties in the case or theydid not give their consent to the

action BUT action will not prosper if the

action is for the benefit of himselfonly and not for the co-ownership

For title to prescribe in favor of the

co-owner, however, there must be aclear showing that he has repudiated

the claims of the other co-ownersand that they have been

categorically advised of the exclusiveclaim he is making to the property in

question. Only then will the period of

prescription being to run. (Cortes v.Oliva)

(6)Right to exercise legal

redemption

Redemption of the property by a co-owner does not vest in him sole

ownership over said property but will

inure to the benefit of all co-owners.Redemption is not a mode of

termination of relationship.(Mariano v CA)

By the very nature of the right of

"legal redemption", a co-owner's

right to redeem is invoked only afterthe shares of the other co-owners

are sold to a third party or strangerto the co-ownership. The law does

not prohibit a co-owner from selling,alienating or mortgaging his ideal

share in the property held in

common. The law merely providesthat the alienation or mortgage shallbe limited only to the portion of the

property which may be allotted to

him upon termination of the co-

ownership and, as earlier discussed,

that the remaining co-owners havethe right to redeem, within aspecified period, the shares which

may have been sold to the third

party (Reyes vs. JudgeConcepcion)

Art 1621 presupposes that the land

sought to be redeemed is rural. Bothlandsthat sought to be redeemed

and the adjacent lot belonging to the

person exercising the right of redemptionmust be rural. If one or

both are urban, the right cannot beinvoked.(Halili v. CA, 1998)

Art. 1623 requires that the written

notification should come from thevendor or prospective vendor, notfrom any other person. It is thenotification from the seller, which

can remove all doubts as to the fact

of the sale, its perfection, and itsvalidity, for in a contract of sale, the

seller is in the best position toconfirm whether consent to the

essential obligation of selling theproperty and transferring ownership

thereof to the vendee has been

given. (Francisco v. Boiser)

The written notice of sale ismandatory for the tolling of the 30-

day redemption period,notwithstanding actual knowledge of

a co-owner. (Verdad v CA, 1996)

A third person, within the meaning of

Art. 1620 of the Civil Code (on theright of legal redemption of a co-

owner) is anyone who is not a co-owner. (Pilapil v CA)

(7)Right to ask for partition

PARTITION: a division between two

or more persons of real or personalproperty which they own as co-

partners, joins tenants or tenants incommon, effected by the setting

apart of such interests so that they

may enjoy and possess it inseveralty.

Gen rule: A co-owner can always ask

for a partition. There is noprescriptive period.

Exceptions: (PUI SCAN)

1. when partition is generallyProhibited by law

2. when partition would render the

thing Unserviceable, or the thing


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PROPERTY CIVIL LAW


Extinguishment of Co-Ownership

(1) Total destruction of the thing(2) Merger of all the interest in one

person

(3) Acquisitive prescription(a) By a third person

(b) By one co-owner against theother co-owners

Requisites:(i) Unequivocal acts of

repudiation of the rights of

the other co-owners (actsamounting to ouster of other

co-owners)(ii) Open and adverse possession,

not mere silent possession forthe required period of

extraordinary acquisitiveprescription.

(iii)Presumption is thatpossession of a co-owner is

not adverse.

(4) Partition or division(a) Right of Creditors of individual

Co-owners Art. 497 All creditors must be considered

to intervene in the partition ofthe common property.

They must have become creditors

during the co-ownership Co-owner debtors have the duty

to notify the creditors of thepartition

Otherwise partition not bindingon them

They can contest such partition if

they formulate a formalopposition thereto.

(b) Partition may be made:

(ii.) Orally

Valid and enforceable

among the parties. Statute of frauds does not

operate for partition is not

a conveyance of propertybut merely a segregation

and designation of thatpart of the property which

belongs to the co-owners.

(ii.) In writing

(a) Court will justconfirm such

written agreement.

(a) Rules of Court does notpreclude amicable settlementbetween parties.

(b) Two principal issues in anaction for partition:

(b) plaintiff is indeed a

co-owner of the

property(c) how the property is

to be divided

between plaintiff

and defendants. If property cannot be divided

without great prejudice, thecourt may order such

property be assigned to oneco-owner. Such co- owner

will pay the others the value

of their interests.

VII. CONDOMINIUM LAW (ACT NO.

4726)

Concept of condominium Exclusive interest in units plus

undivided interest in common areas.

Partly co-ownership, partly under

individual separate ownership

Each unit belongs separately to oneor more persons

The land and the common areas areof common use by the different

owners and are under co-ownershipeither as contemplated by the Civil

Code or through a corporation.

Not governed by co-ownership asprovided for in the Civil Code.

External surfaces are common areas Beams and posts are common areas

Easement, unless the master deedsays otherwise, is an exclusive

easement.

Interest in the common areas willdepend on interest in the condo

Important documents in buying acondo unit

(i) deed of sale(ii) enabling or master deed

(iii)declaration of restrictions

Sec. 9 The owner of a project shall,

prior to the conveyance of anycondominium therein, register a

declaration of restrictions relating tosuch project, which restrictions shall

constitute a lien upon each condominium

in the project and shall insure to andbind all condominium owners in theproject. Such liens, unless otherwise

provided, may be enforced by any

condominium owner in the project or bythe management body of such project.

The Register of Deeds shall enter and

annotate the declaration of restrictionsupon the certificate of title covering theland included within the project, if the

land is patented or register under the

land included within the project, if the


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PROPERTY CIVIL LAW

land is patented or registered under the

Land Registration or Cadastral Acts.

Method of taxation

Sec. 25. Whenever real property has

been divided into condominiums, eachcondominium separately owned shall be

separately assessed, for purposes of realproperty taxation and other tax

purposes to the owners thereof and thetax on each such condominium shall

constitute a lien solely thereon.

Partition of Common Areas

Sec.7. Except as provided in thefollowing section, the common areas

shall remain undivided, and there shall

be no judicial partition thereof.

(b) Who manages the condominium?(i) condominium corporation

(preferred by law) co-

terminous with the existenceof the condominium

(ii) co-ownership

(iii) association of owners

Rights and Obligations of

Condominium owner

What are the incidents of acondominium grant?(a) The boundary of the unit grant

(i) the interior surfaces of the

perimeter walls, floors,ceilings, windows, and doors

(ii) those which are not part of

the unit bearing walls,

columns, floors, roofs,foundations, and other

common structural elements

of the building; lobbies,stairways, hallways, and other

areas of common use,elevator equipment and

shafts, central heating,central refrigeration, and

central air-conditioning

equipment, reservoirs, tanks,pumps, and other centralservices and faicilities, pipes,

ducts, flues, chutes, conduits,

wires and other utilityinstallations, whereverlocated, except the outlets

thereof when located within

the unit.(b) Exclusive easement for the use of

the air space encompassed by

the boundaries of th unit(i) as it exists at any particulartime

(ii) as the unit may lawfully be

altered or reconstructed from

time to time(iii)such easement shall be

automatically terminated in

any air space upon

destruction of the units torender it untenable

(c) Unless otherwise provided, thecommon areas are held in

common by the holders of units,in equal shares, one for each unit

(d) a non-exclusive ease ment for

ingress, egress, and supportthrough the common areas are

subject to such easements(e) Each condominium unit owner

shall have the exclusive right topaint, repaint, tile, wax, paper, or

otherwise refinish and decoratethe inner surfaces of the walls,ceilings, floors, windows, anddoors, bounding his own unit

(f) Each condominium owner shall

have the exclusive right tomortgage, pledge, encumber his

condominium and to have thesame appraised independently of

the other condominiums but anyobligation incurred by such

condominium owner is personal

to him.(g) Each condominium owner has

also the absolute right to sell ordispose of his condominium

unless the master deed containsa requirement that the property

be first offered to the

condominium owners within areasonable period of time before

the same is offered to outsideparties.

Case

Ownership of a unit, therefore, is a

condition sine qua non to being a

shareholder in the condominiumcorporation By necessary implication,

the "separate interest" in acondominium, which entitles the holder

to become automatically a share holderin the condominium corporation, as

provided in Section 2 of the

Condominium Act, can be no other thanownership of a unit. (Sunset View

Condominium v Judge Campos)


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PROPERTY CIVIL LAW


VIII. POSSESSION

Definition and Concept(1) Possession is the holding of a thing

of the enjoyment (exercise) of a

right (523), whether by material

occupation (de facto possession) orby the fact that the thing or the right

is subjected to the action of our will.(2) It is a real right independent of and

apart from ownership.

Essential requisites of possession

(1) Holding or control of a thing or right(corpus) consists of either:

(a) the material or physicalpossession

(b) subject action of our will-exercise of a right

(c) constructive possession

doctrine of constructive possessionapplies when the possession is under

title calling for the whole, i.e.,

possession of a part is possession ofthe whole.

Constructive possessiona) tradicion brevi manu (one who

possess a thing short of title ofowner lease );

b) tradicion constitutum

possesorium (owner alienatesthing but continues to possess

depositary, pledgee, tenant)

(2) Intention to possess (animuspossidendi)

it is a state of mind whereby the

possessor intends to exercise anddoes exercise a right of possession,

whether or not such right is legal intention may be inferred from the

fact that the thing in question isunder the power and control of the

possessor may be rebutted by contrary

evidence

Cases:

The general rule is that the possessionand cultivation of a portion of a tract of

land under a claim of ownership of all isa constructive possession of all, IF the

remainder is not in the adverse

possession of another. Possession in theeyes of the law does not mean that a

man has to have his feet on everysquare meter of ground before it can be

said that he is in possession. (Ramosv. Director of Lands)

The rule on constructive possession doesnot apply when the major portion of thedisputed property has been in the

adverse possession of homesteaders and

their heirs. It is still part of the public

domain until the patents are issued.

(Director v. CA)

Degrees of holding of possession

(1) Mere holding or possession without

title whatsoever and in violation ofthe right of the owner.

applies to both movables andimmovables

both the possessor and the public

know that the possession is wrongful

there can be no acquisitive

prescription of movables under theNCC (Art. 1133)

(2) Possession with juridical title but

not that of ownership. peaceably acquired

this will never ripen into fullownership as long as there is no

repudiation of concept under which

the property is held (if suchrepudiation is made known to the

owner, then extraordinaryprescription of 30 yrs will apply)

e.g., possession by tenant,depositary, agent, bailee, trustee,

lessee, antichretic creditor

even actual owner may be preventedby law from taking possession

a depositary bank is not a possessorin this degree, since a deposit is

actually a loan to the bank

(3) Possession with just title or title

sufficient to transfer ownership, butnot from the true owner

title deed of sale or contract of sale possession of a vendee from vendor

who pretends to be the owner, i.e.,innocent buyer of stolen goods

good faith of buyer = just title i f in good faith, extraordinary

prescription of 30 years will apply

this degree of possession ripensinteresting full ownership by lapse of

time

(4) Possession with just title from thetrue owner

Transfer of possession transfers

ownership! (possession as anincident of ownership)

Cases of possession

(1) Possession for oneself, or

possession exercised in ones own

name and possession in the name ofanother.

rights of possession may be

exercised through agents


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(a) necessary exercised on behalf

of the conceived child, of juridical

persons, of persons not sui juris,and of the conjugal partnership

(b) voluntary in cases of agents or

administrators appointed by the

owner or possessor

(2) Possession in the concept of anowner and possession in the concept

of a holder with the ownershipbelonging to another

In the Concept of a Holder

such possessor acknowledges in

another a superior right whichhe believes to be ownership,

whether his belief be right orwrong

e.g. tenant, usufructuary, andborrower

In the Concept of Owner

such possessor may be the owner

himself or one who claims to beso

only this class of possession canserve as title for acquiring

dominion

good faith or bad faith is

immaterial except for purposes of

prescription (GF: 10 yrs; BF: 30yrs)

Effects of possession in the concept

of an owner:(1) possession may by lapse of

time ripen into full ownership,

subject to certain exceptions(2) presumption of just title and

cannot be obliged to show orprove it Exception: for

purpose of prescription in Art1131.

(3) possessor can bring allactions an owner can bring to

protect his possession, except

accion reivindicatoria(4) may employ self-help (Art

429)(5) can ask for the inscription of

his possession in the registryof property

(6) has right to the fruits and

reimbursement for expenses(assuming he is a possessor

in GF)(7) upon recovering possession

from unlawful deprivers, candemand fruits and damages

(8) generally, he can do

everything an owner isauthorized to do until he isousted by one who has a

better right (e.g.,

preemption)

(9) possession in GF andpossession in BF

(3) Possession in good faith and

possession in bad faith

possession in good faith ceases fromthe moment defects in the title are

made known to the possessor

when an action is filed to recover

possession, good faith ceases from

the date of the summons to appearat the trial

GF consists in the possessors beliefthat the person from whom he

receive a thing was the owner of thesame and could convey his title

GF is always presumed belief that one is the legal owner

must be based on some title or modeof acquisition, i.e., sale, donation,

inheritance

error in the application of the law, inthe legal solutions that arise form

such application, in the appreciationof the legal consequences of certain

acts, and in the interpretation ofdoubtful provisions or doctrines, may

properly serve as the basis of GF-

mistake upon a doubtful or difficultquestion of law as a basis of good

faith [Art 526 (3)]

Subjects of possession

All rights and things susceptible of

appropriation

Things which cannot be possessed:(1) property of public dominion

(2) res communes(3) easements (discontinuous or

non-apparent)(4) things specifically prohibited by

law res nullius (abandoned or ownerless

property) may be possessed but

cannot be acquired by prescriptionAcquisition of Possession

(1) Ways of acquiring possession

(a) Material occupation of the thing occupation is used in the general

sense, i.e., a means of acquiring

possession of things, not of rights kind of possession acquired is

only the fact of possession, notthe legal right of possession

(i) Doctrine of constructive

possession

(ii) Includes constructivedelivery (equal to materialoccupation in cases where


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occupation is essential to the

acquisition of prescription)

traditio brevi manu

one who possesses a thing

by title other than

ownership continues topossess the same but

under a new title, that ofownership

traditio constitutumpossessorium

owner alienates the thing,

but continues to possessthe same but as that of

depositary, pledge, ortenant

(b) subjection to the action of our

will different from and

independent of juridical actsand legal formalities as it

refers more to the right of

possession that to possessionas a fact

(i) traditio simbolica --effected by delivering some

object or symbol, placingunder the thing under the

control of the transferee, such

as the keys to the warehousecontaining the goods

delivered [Art 1498 (2)](ii) traditio longa manu

effected by the transferorpointing out to the transferee

the things which are being

transacted

(c) proper acts and legal formalities refers to the acquisition of

possession by sufficient title,whether inter vivos or mortis

causa, or lucrative or onerous e.g., donations, succession,

contracts, judicial writs of

possession, writs of executionof judgments, and registration

of public instruments

There was a perfect contract of pledgeand the depositary was placed in the

possession of the goods after the

symbolic transfer by means of deliveryto him of the keys to the warehouse

where the goods were kept. (BancoEspanol Filipino v. Peterson)

(2) By whom possession may be

acquired

(a) by same personElements of personal acquisition

must have the capacity to

acquire possession m ust have the intent to

possess possibility to acquire

possession must be present

(b) by his legal representative

Requisites:

representative or agent has

the intention to acquire thething or exercise the right for

another, and not for himself

person for whom the thing

has been acquired or rightexercised, has the intention ofpossessing such thing orexercising such right

(c) by his agent(d) by any person without any

power whatsoever but subject toratification, without prejudice to

proper case of negotiorum gestio(e) Qualifiedly, minors and

incapacitated persons

refers only to possession ofthings, not of rights, and to

acquisition of possession bymaterial occupation

(3) What do not affect possession

(a) acts merely tolerated

(b) acts executed clandestinely ANDwithout knowledge of owner

(c) acts by violence as long as thepossessor objects thereto (i.e.,

he files a case)

If owner of a tract of land, toaccommodate the public, permits them

to cross his property, it is not his

intention to divest himself of ownershipor to establish an easement. Such

possession is not affected by acts ofpossessory character which are merely

tolerated.(Cuaycong v Benedicto)

As a squatter, she has no possessory

rights over the disputed lot. The Statessolicitude from the destitutes and the

have-nots does not mean that it shouldtolerate usurpations pf property, public

or private. (Astudillo v PHHC)

A possessor by mere tolerance is

necessarily bound by an implied promiseto vacate upon demand. (Peran v CFI)


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(4) Rules to solve conflict of

possession

In case of conflict of possession, thefollowing order of preference must be

followed:

(1) present possessor or actualpossessor

(2) if 2 or more possessors, the onelonger in possession

(3) if dates of possession are thesame, the one who presents a

title

(4) if all the condition are equal, thething shall be placed in judicial

deposit pending determination ofpossession or ownership through

proper proceedings

Preference in case of conflict of ownership (double sales)(1) for immovable property

(a) first who registered his right

in GF in the Registry of

Property(b) if no registration, first who

possessed in GF(c) if no possession, one who

presents the oldest title(2) for movable property: first who

possessed in GF

Effects of Possession

(1) In general, every possessor has a

right tobe respected in his possession; if

disturbed therein, possessor has

right to be protected in or restored tosaid possession (539)

(a) action to recover possession(i) summary proceedings

forcible entry and unlawfuldetainer. Plaintiff may ask for

writ of preliminary mandatoryinjunction may be asked.

Within 10 days from filing of

complaint in forcible entry- the same writ is available in

unlawful detainer actionsupon appeal (Art 1674)

The acquirer and possessor in

good faith of a chattel or movable

property is entitled to berespected and protected in his

possession as if he were the trueowner, until a competent court

rules otherwise. Such possessionin good faith is equivalent to title

and every possessor has a right

to be respected in his possession(Arts 539 and 559). (Yu vHonrado)

(ii) accion publiciana (based on

superior right of possession, not

of ownership)(iii)accion reivindicatoria

(recovery

of

ownership)(iv) action for replevin for

recovery of movable property

(b) Possessor can employ self-help

(2) Entitlement to fruits possessor in

GF/ BF

Possessor in GF is entitled to the

fruits received before the possessionis legally interrupted.

Possessor in BF has no right toreceive any fruits. Those already

gathered and existing will have to bereturned; with respect to those lost,consumed, or which could have beenreceived, he must pay the value.

But the possessor in BF does not

have to pay interest on the value offruits he has to pay, because such

amount is unliquidated.

(3) Reimbursement for expenses (SeeTable below

(4) Possession of movable acquired in

GF (in concept of an owner) isequivalent to title

one who has lost a movable or hasbeen unlawfully deprived thereof

may recover it withoutreimbursement, except if possessor

acquired it at a public sale (559)

3 requisites to make possession ofmovable equivalent to a title:

(1) that the possession is in GF(2) that the owner has voluntarily

parted with the possession of thething

(3) that the possession is in theconcept of an owner

Presumptions in favor of thepossessor

(1) Of good faith until the contrary is

proved(Sideco vs. Pascua)(2) Of continutity of initial GF in

which possession was commenced or

possession in GF does not lose itscharacter

Exception: in the case and from themoment the possessor became aware or

is not unaware of improper or wrongfulpossession.

(3) Of enjoyment of possession in

the same character in which wasacquired until the contrary is proved.


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(4) Of non-interruption of

possession in favor of present

possessor who proves possession at aprevious time until the contrary isproved. (554, 1120-1124)

2 Kinds of Interruption(1) Natural (Art 1122)if

interruption is for more than 1year.

(2) Civil (Art 1123) will start fromthe service of summons but the

proper action must be filed

in case of natural interruption, theold possession loses all its juridical

effects and therefore cannot betacked to the new possession for

purposes of prescription

in case of civil interruption, if

possession is recovered, it can beconnected to the time that haselapsed as if it were continuous andcan be counted in favor of

prescription

(5) Of exclusive possession ofproperty allotted to a participant in a

thing possessed in common for theentire period during which co-

possession lasted;(6) Of continuous possession or non-

interruption of possession of which

he was wrongfully deprived for allpurposes favorable to him (561)

(7) Other presumptions with respect tospecific property rights

(i) Of extension of possession of realproperty to all movables

contained therein so long as it is

not shown that they should beexcluded (Art. 426)

(ii) Non-interruption of possession ofhereditary property (Art. 533,

Art. 1078)(iii)Of just title in favor of possessor

in concept of owner, subject toArt. 1141

Loss of Possession

(1) Abandonment(2) AssignmentWON gratuitously or

onerously(3) Destructionmust be total/goes

out of commerce

(4) Possession of anotherthepossession that is lost here refers

only to possession as a fact (defacto), not the legal right of

possession (de jure)

NOTE: all the other 3 cases of loss of

possession (abandonment, assignment,destruction) refer to loss of possessionde jure (real right of possession) and

therefore cannot be recovered anymore

by any action.

Rules for Loss of MovablesGeneral Rule: possession of personal

property acquired in GF = title therefore

the true owner cannot recover itException: if the true owner

(1) lost the movable or(2) has been unlawfully

deprivedIn either of these, he may recover the

personal property not only from the

finder but also from those who mayhave acquired it in GF from such finder

or thief, without paying for anyindemnity except if possessor acquired it

in public sale but the possessor in GF isentitled to reimbursement.

Wild animals are possessed only whilethey are under one's control;domesticated or tamed animals are

considered domestic or tame if they

retain the habit of returning to thepremises of the possessor. (Art. 560)

(5) Reivindicationthe most natural

mode of losing possession, i.e.,recovery or reivindication of the

thing by the lawful owner


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PROPERTY CIVIL LAW

Effects of Possession in Good Faith or Bad Faith

Good Faith Bad Faith

Fruits

received

Entitled to the fruits while possession

is in GF and before legal interruption

(Art 544)

Must reimburse fruits received or

fruits which legitimate possessor

could have received (549);

Entitled to expenses for production,gathering, and preservation

PendingFruits

Entitled to a part of the expenses ofcultivation and a part of the networkharvest, both proportion to the time of

possession (545)

Owner may indemnify or allow

possessor in GF to finish cultivation

and the fruits will be indemnified forhis cultivation (545)

If possessor refuses concession, no

indemnity (545)

Charges Must share with the legitimate

possessor, in proportion to the time ofpossession

Same as with GF

Necessary

Expenses

Right of reimbursement and retention

in the meantime (545)

Reimbursement only

UsefulExpenses

Owners option to reimburse himeither for expenses or for increase in

value (546)

Retention prior to reimbursement(546)

Limited right of removal (but shouldnot damage principal and owner does

not exercise option of payment of

expenses or increase in value) (547)

No right to reimbursement. He alsocannot remove improvements even

he can do so without injury to the

principal thing

Ornamental

Expenses

Limited right of removal as above

(548)

Limited right of removal (no injury to

thing and lawful possessor does notretain by paying for them) (548)

Deterioration

or Loss

No liability unless due to fraud or

negligence after becoming in BF

Liable WoN due to his fault,

negligence, fortuitous event

Costs of Litigation

Bears cost Bears cost

Effects of Recovery of Possession

Improvements caused by nature or

time shall always insure to thebenefit of the person who has

succeeded in recoveringpossession.(Art. 551).

One who recovers possession shallnot be obliged to pay for

improvements which have ceased

to exist at the time he takespossession of the thing. (Art. 553)

necessary expenses: lawful

possessor or owner has to pay forthem even if the object for whichthey were incurred no longer exist


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IX. USUFRUCT

Definition

USUFRUCT is a real right which gives the

usufructuary- a right to enjoy the property of

another- with the obligation of preserving

its form and substance, unlessthe title constituting it or the law

otherwise provides. (Art.562)

Characteristics1. real right of use and enjoyment

of property owned by another2. of a temporary duration3. transmissible

4. may be constituted on real or

personal property, on tangiblesor intangibles

Rights of Usufructuary:

A. As to the thing and its fruits

1. right to possess and enjoy the

thing itself, its fruits andaccessions (566-567)

2. right to lease the thing (572)

3. right to improve the thing

Right to possess and enjoy the thing

itself, its fruits and accessions Fruits belong to the usufructuary

except when they diminish thesubstance of the thing (e.g.,

minerals in quarries), in which case

they will belong to the usufruct onlywhen the owner has dedicated theproperty to the exploitation of such

products. Dividends from shares are fruits. Rights may be transferred, assigned,

or otherwise disposed of by the

usufructuary; As to hidden treasure, usufructuaryis a stranger, so no right to it

Fruits pending at the beginning ofthe usufruct belong to theusufructuary, with no obligation to

refund the expenses of the owner.

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