LECTURE NOTES IN PROPERTY

I. General Provisions

A. Definition: all things which are or may be the object of appropriation (Art. 414, CC)

1. Three characteristics of property:

a. Capable of appropriation – can be obtained
b. Useful – serves to satisfy human needs
c. Has separate or autonomous existence

2. The concept of property extends only to those already possessed by, or found in
the possession of man.

Things that cannot be subjected to human control by reason of physical

impossibility such as the moon, the sun, seas, and oceans are not considered
property.

II. Classification of Property

A. There are 2 kinds of properties:

1. Immovable or real
2. Movable or personal

B. Importance of Classification: there are various legal consequences from the

classification of property into movable or immovable:
1. Rules on acquisitive prescription
2. Classification of object as real or personal determines determines whether
contract is pledge, chattel mortgage or real estate mortgage
3. Formalities of donation
4. Foreclosure rules
5. Crimes of theft or robbery
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6. Actions to recover possession of property

7. Venue of actions involving property

C. Classification of immovable property

1. immovable by nature – property is adhered to the soil, so it cannot be moved from

place to place (Par. 1 and 8 of Art. 415)

• Examples: land, building, roads, and constructions of all kinds that

is adhered to the soil, mines, quarries and slag dumps while they are still
part of the mine/soil, and waters, either running or stagnant.
 • The building must be a permanent structure, made of strong materials.
Those made of light materials such as the “barong-barong” is not considered
real property because it not a building under the Civil Code.
• If contracting parties treat the building as chattel in their contract, they are
estopped from claiming that it is real property. But third parties are not bound by
such agreement, so as to them a chattel mortgage entered into by the parties is
void.
• Ore extracted from the mine is no longer part of the mine and is personal
property.
• Waters, with an “s”, is real property. Examples of waters are lakes, ponds,
seas.

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2. immovable by incorporation –attached or incorporated to an immovable in such a

manner as to be an integral part thereof, or cannot be separated therefrom, without
breaking the material or deterioration of the object, or substantial damage to the object
in case of separation (Par. 1, 2, and 3 of Art. 415)

• Examples: trees, plants, and growing fruits, while they are attached
to the land or form an integral part of an immovable,

• The moment trees and plants are uprooted, harvested, or detached from
the soil, they become personal property.
• Growing crops (also called standing or ungathered crops are real property
because they are still attached to the soil. But the sale of growing crops is
considered a sale of personal property because it is understood that they are to
be harvested. Also, under the Chattel Mortgage Law, growing crops are
personal property.

3. immovable by destination – movable property placed in an immovable that

partake of the nature of the latter because of the utility or value they add to it (Par. 4, 5,
6, 7, 9 of Art. 415, CC)

• Par. 4: statues, reliefs, paintings, or other objects that the owner of the
building or land, or his agent, attaches permanently thereto for use or
ornamentation. Examples: fixed statue in the garden, mural embedded in
walls of a building, wall-to-wall carpeting
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• Par 5: Machinery, receptacles, instruments, or implements that directly

meet the needs of any industry or works that are carried out in the building or on
land by the owner thereof. Examples: machineries of breweries used in the
production of beer

• If the lease stipulates that any machineries, etc. placed by the tenant
during the lease shall belong to the owner when the lease expires, the tenant
 acted as agent of the owner when he placed the machineries there and they are
deemed immovable.
• Cash registers, calculators, computers used by restaurants, hotels, etc.
are not real property because restaurants and hotels can continue their business
without these implements,

• Par. 6 Animal houses, pigeon-houses, beehives, fishponds or breeding

places of similar nature, in case their owner has them permanently attached to
the land, and forming a permanent part of it; the animals in these places are
included. Examples: barns that house cattle.

• Donation of pigeon house need not be in a public instrument because the

pigeon house is detached from the land when delivered to done.
• Sale of animals is considered sale of personal property.
• A birdcage that is carried from place to place is personal property.

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• Par. 7: Fertilizer actually used on a piece of land

• Fertilizers still in their packaging are personal property.

• Par. 9: Docks and structures which, though floating, are intended by their
nature and object to remain at a fixed place on a river, or coast.

• A floating house tied to a shore or bank post and used as residence is

real property, since the “waters” on which it floats is immovable.
• But if the floating house travels from place to place, then it is a vessel.
• Vessels are considered personal property. They may be the subject of a
chattel mortgage. But the chattel mortgage of a vessel is recorded in the record
of the Collector of Customs at the port of entry.

4.immovable by analogy – regarded as united to the immovable property by

express provision of law

• Par. 10: contracts for public works, servitudes and other real rights over
immovable property
• The property referred to here are real rights over real property.
• EXAMPLE: The right to perform the contract to build a building.

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D. Kinds of Movable Property (Art. 416, 417)

1. Movables susceptible of appropriation not included in Art. 415. EXAMPLES:
mobile phone, guitar, books
 2. Real property by which by any special provision of
law is considered as personal property. EXAMPLE: growing crops under the
Chattel Mortgage Law

3. Forces of nature which are brought under control by science EXAMPLES:

electricity, gas, solar power

4. In general, all things which can be transported from place to place without
impairment of the real property to which they are fixed EXAMPLE: machinery
not attached to land

5. Obligations and actions which have for their object movables or demandable
sums EXAMPLE: debt owed to a person

6. Shares of stock of agricultural, commercial and industrial entitles, although

they may have real estate
EXAMPLES: shares of stock in a corporation as well as stock certificate
evidencing ownership; shares of a partner in a partnership, interest in
business

E. TYPES OF MOVABLE PROPERTY

1. Consumable movable property when used according to its nature is
consumed or used up. EXAMPLES: food, money in one’s wallet

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2. Non-consumable – any other kind of movable property

3. Fungible movable property is capable of substitution of the same kind,
quality, and quantity, either by their nature or by agreement. Examples:
vinegar, rice for consumption
4. Non-fungible - incapable of substitution, the identical thing must be given or
returned.

F. Classification of Property (Art. 419)

1. Property of public dominion
• There are 3 kinds of property of public dominion
a. For public use – roads, rivers, torrents, ports, constructed by the
State, banks, shores, roadsteads, and others of similar character; any
one can use them, e.g., Rizal Park

b. For public service – not for general use but for some state
function; examples: PGH, Camp Crame, Camp Aguinaldo

c. For the development of national wealth – example: natural

resources
 • They pertain to the State which exercises certain juridical prerogatives
over them but their conversion to patrimonial property requires a
legislative action to change their purpose as such

• Characteristics of property of public dominion:

a. Outside the commerce of man
b. Cannot be acquired by prescription

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c. Cannot be registered under the land registration laws

d. Cannot be levied upon in execution nor attached

2. Property of private ownership – consists of:

a. Patrimonial property of the State, provinces, cities, and municipalities

b. All property belonging to private persons, either collectively or

individually

3. Classification of Property of the State – 2 kinds

a. Property of public dominion

b. Patrimonial property of the State consists of all the property of the
State not devoted to public use, public service or the development of
national wealth

4. Classification of Property of Provinces, Cities and Municipalities – 2 kinds

a. Property for public use - consist of provincial roads, city/municipal

streets, the squares, fountains, public waters, promenades, and public
works for public service paid for by said provinces, cities or
municipalities
b. Patrimonial - all other property possessed by any of them, without
prejudice to provisions of special laws

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5. Characteristics of patrimonial property of the State

a. Owned by the State in its private or proprietary capacity

b. May be acquired by private individuals or corporations through
prescription
c. May be the object of an ordinary contract

III. OWNERSHIP

A. Definitions:
1. Ownership – independent and general right of a person to control a thing
 2. Title - that which constitutes a just cause of exclusive possession or which is
the foundation of ownership

B. Kinds of ownership:
1. Full – includes all rights of the owner
2. Naked – right to use and fruits has been denied
3. Sole – vested in one person
4. Common – vested in two or more persons; one property, several owners

C. Bundle of rights of owner

1. Actions to recover ownership and possession of real property and its

distinctions

a. accion interdictal- summary action to recover physical possession and

not ownership

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1. forcible entry – action to recover the material/physical

possession that was lost due to FISTS (Force, Intimidation,
Strategy, Threat, or Stealth); possession of defendant was
unlawful from the beginning; plaintiff must allege and prove that
he was in prior possession; the right to bring action prescribes
in 1 year after actual entry

2. unlawful detainer – possession by a landlord, vendor, vendee

or other person is being unlawfully withheld after the expiration
of the right to hold possession by virtue of a contract;
possession was lawful in the beginning; no need for prior
possession; one year prescriptive period counted from last
demand

b. accion publiciana –plenary action to recover better right of possession

when dispossession has lasted for more than a year; prescriptive period:
10 years

c. accion reinvindicatoria –action to recover ownership

Requisites: identity of property; plaintiff’s title
Prescriptive period: 10 years (ordinary prescription – requires good faith
and just title)
30 years (extraordinary prescription)

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2.Action for recovery of possession of movable property – replevin (Rule

60, Rules of Court)
 Replevin, also known as "claim and delivery," is an action to recover
personal property that was wrongfully taken or detained. Unlike other forms of legal
recovery, replevin seeks the return of the actual thing itself, as opposed to money
damages (the more commonly-sought after remedy).

D. QUIETING OF TITLE (Art. 477, 478, 479)

1. Requisites - two indispensable requisites must concur, namely:

(1) The plaintiff or complainant has a legal or an equitable title to or interest, in the
real property subject of the action; and
(2) The deed, claim, encumbrance, or proceeding claimed to be casting cloud on
his title must be shown to be in fact invalid or inoperative despite its prima facie
appearance of validity or legal efficacy.”

NOTES:
(1) Instrument, record, claim, encumbrance or proceeding must be valid and
binding on its face but in truth and in fact, is invalid, ineffective, voidable or
unenforceable; contract upon which the defendant relies has been extinguished or
terminated, or has prescribed.
(2) Plaintiff must return benefits received from the defendant.

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(3) Legal title denotes registered ownership, while

equitable title means beneficial ownership. In the absence of such legal or equitable title,
or interest, there is no cloud to be prevented or removed.

2. DISTINCTIONS BETWEEN QUIETING TITLE AND REMOVING/PREVENTING

A CLOUD

QUIETING OF TITLE REMOVING/PREVENTING A CLOUD ON

TITLE
Purpose is to put an end to vexatious and Intended to procure the cancellation,
troublesome litigation over the property delivery, release of an instrument,
involved encumbrance or claim, which constitutes
a cloud on plaintiff’s title and which may
be used to injure or vex him in his
enjoyment of the property; removal of a
possible basis for a future hostile claim
Remedial action: involving a present Preventive action: removes cloud that
adverse claim may be used for future actions.

3. Prescription/non of action - Imprescriptible, if plaintiff is in possession; if

not, the action prescribes within the period for filing accion publiciana or accion
reinvindicatoria.
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E. Distinction between real and personal rights

1. Real right – power of a person to obtain certain financial or economic

advantages over a specific thing; a power enforceable against the whole
world; created directly over a thing; extinguished by loss or destruction;
examples: ownership, servitudes or easements, mortgage of real property,
possession in the concept of an owner
2. Personal rights – power of a person to demand from another person, the
fulfillment of a prestation to give, to do, or not to do; the right to do a thing;
example: power to demand the performance of an obligation against the
obligor

F. Modes of acquiring ownership (Art. 712)

1. Occupation: the acquisition of ownership by seizing corporeal things that have no

owner, made with the intention of acquiring them, and accomplished according to
legal rules.

Requisites of occupation:
(1) There must be seizure of a thing (brought into actual possession or
control of the person professing to acquire it)
(2) The thing must be corporeal personal property.
(3) The thing must be appropriable by nature (one that can be seized or
apprehended)
(4) The thing must be without owner (res nullius; never had an owner or has
no owner at the time of occupation.
(5) There must be an intention to appropriate it.
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(6) Requisites and conditions laid down by law must be complied with (See
Art. 713)

• Things appropriable by nature that are without an owner, animals that are
the object of hunting and fishing, hidden treasure, and abandoned movables,
are acquired by occupation. (Art. 713, CC)

• The ownership of a piece of land cannot be acquired through occupation.

(Art. 714, CC)

• There are special laws that regulate the right to hunt and fish.

• The owner of a swarm of bees may pursue them to another’s land

indemnifying the landowner for the damage. If the owner does not/ceases to
pursue them within 2 consecutive days, the landowner may claim the bees.
The owner of domesticated animals should claim them within 20 days to be
counted from their occupation by another; if the period expires, the person
who caught the animals shall own them.
 • Pigeons and fish who travel from their breeding places to another one
belonging to a different person shall belong to the latter, provided they have
not been enticed to migrate to the new breeding place by fraud.

2. Intellectual creation – Intellectual Creation: Now governed by the Intellectual

Property Code (R.A. 8293, as amended by R.A. 10372) and the TRIPS
Agreement
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(Agreement on Trade-Related Aspects of Intellectual Property Rights)

administered by the World Trade Organization.

3. Tradition – as a consequence of certain contracts; Ownership of the thing sold is

acquired by the vendee from the moment of delivery, or in any other manner
signifying an agreement that possession is transferred. (Art. 1497, CC)

• Kinds:

(1) Real or actual – consists in placing the thing sold in the control
and possession of the vendee (San Lorenzo Development Corp. v. CA, G.R.
No. 124242, January 21, 2005);

(2) Legal or constructive:

(a) Symbolical tradition – e.g. delivery of the keys of the place; execution
of public instrument
(b) Traditio longa manu – by mere consent or agreement of the
contracting parties, if the thing sold cannot be transferred to the possession of
the vendee at the time of the sale (Art. 1499, CC);
(c) Traditio brevi manu – if the vendee already had possession of the object
even before the sale (Ibid.);
(d) Traditio constitutum possessorium – the seller remains in possession of
the property in a different capacity. (San Lorenzo Development Corp. v. CA,
supra)

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(3) Quasi-tradition – delivery of rights, credits, or incorporeal property by

placing titles of ownership with a lawyer, or allowing the buyer to make use of
the rights (Art. 1501); and

(4) By operation of law.

4. Law - accession, fruits naturally falling on adjacent land

5. Donation – gratuitous conveyance of property to another
6. Succession - inheritance
7. Prescription

G. Limitations of Ownership
 1. Doctrine of State Necessity: Art. 432.
Requirements:
a. Interference of another with his property is necessary to avert an imminent
damage
b. Threatened damage is much greater than damage to owner’s property
c. Compensation is to be paid to owner by those benefited by the interference
Exception: if injury was caused by the owner

2. In the exercise of the State’s power of eminent domain - State may expropriate
property for public use subject to the payment of just compensation.

3. In the exercise of police power:

1. Property may be condemned or seized by competent authority

- for health, safety or security reasons
-owner not entitled to compensation, unless he can show that the
condemnation/seizure is unjustified

2. Ruinous buildings and walls, columns, or other construction in danger of falling

down
-owner obliged to demolish it or it would be demolished at his expense

3 . Large tree in danger of falling that would cause damage to land or building or
another or to travellers
- owner obliged to fell it and remove it or this shall be done at his expense

H. ACCESSION
1. Right to hidden treasure Art. 438
a. Treasure is defined as any hidden and unknown deposit of money, jewelry, and
other precious objects, the lawful ownership of which does not appear.
b. General rule: Hidden treasure belongs to the owner of the land, building or other
property on which it is found.
c. Exception: Finder is entitled to ½ the value of the treasure if:
i. Found by chance on the property of another, or of the state or any of its
subdivisions
ii. Finder is not a trespasser.
iii. Finder is not an agent of the owner or co-owner of the land or tenement on
which it is found. (Note: IF the finder is one of the spouses in a ACP or CPG
regime the ½ goes to the property regime of the spouses.

2. Rules of accession

A. For immovable property

(1) Industrial accessions to real property
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General rules:
a. Whatever is built, planted or sown on the land of another and the repairs
made thereon, belong to the
owner of the land, subject to the provisions of this Code.
 b. All works, sowing, and planting are presumed made by the owner and at
his expense, unless the contrary is proved.

First case: Landowner is the builder/planter/sower but uses the materials of

another

Good faith of landowner – belief that the land belongs to him and he does not
know that he does not have the right to use the materials; in bad faith, if he
makes use of the land or materials that he knows belong to another
Good faith of the owner of materials – did not know that another was using his
materials, or after he came to know, he informed the landowner of his ownership
and made the necessary prohibition; in bad faith, if he allows another to use his
materials without informing the latter of his ownership

LANDOWNER IS OWNER OF THE MATERIALS

BUILDER/PLANTER/SOWER
Good Faith Good Faith

Will do what the Owner of the materials will 1. Limited right of removal (may remove if
opt to do there would be no injury to work built, or
without plantings destroyed); or
2. To be paid the value of the materials

Bad Faith Good Faith

1. To be paid for value of materials plus
Pay indemnity and damages, depending on damages; or
option chosen by Owner 2. Has absolute right of removal of work
constructed plus damages
Good Faith Bad Faith
To acquire improvements w/o paying Loses right to materials without indemnity plus
indemnity damages (hidden defects, inferior materials)

Bad Faith Bad Faith

Second case: Builder/planter/sower builds, plants or sows on another’s land

using his own materials

In applying Art. 448, the landowner, if in good faith, should be given first option
because he is the owner of the land, especially if he is dealing with a person in bad faith.

The landowner is in good faith:

1. He is ignorant of the builder/planter/sower’s act.
2. When he came to know, he expressed his objection.
3. Or he believed that the builder/planter/sower has a right to construct, plant or
sow on his land.
 Otherwise, the landowner is in bad faith.

Jurisprudence has come out with a limited and expanded definition of builder in good
faith:

Limited definition: At the time of the building, the builder/planter/sower believed in good
faith that he was the owner of the land because he had a title or a mode of acquisition in
his favor that turns out to be invalid but he was at that time, ignorant of such flaw or
defect.

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Expanded definition: At the time of the building, the builder knew that he was not the
owner, but the landowner expressly consented to the building.

NOTE: Both the landowner and the builder are in bad faith, it at the time of the building,
the builder knew that he was not the owner; at the same time, the landowner knew that
the builder was building on his land but he did not interpose any objection nor expressly
consent thereto. In this case, since both are in bad faith, they shall be treated as if both
are in good faith under Art. 448.

LANDOWNER BUILDER/PLANTER/SOWER IS THE OWNER

OF MATERIALS

Good Faith: Good Faith

1. May acquire the improvement by The option belongs to the Landowner
paying for materials; or,
2. May obligate builder to buy the land or
collect rent from planter/sower.
However, if land is more valuable than
the improvement, b/p/s cannot be
required to buy land, instead, to require
rent from b/p/s.

Bad Faith Good Faith:

1. Remove the materials plus damages; or,
Pay damages demanded by the 2. Demand payment for materials plus
builder/sower/planter damages

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Good Faith Bad Faith

Options:
1. Appropriate works without indemnity plus 1. Buy the land regardless of value plus
damages; or, damages, if LO takes this option.
 2. Demolish the works plus damages; or, 2. Pay for damages in every case.
3. Compel the B/P/S to buy the land
regardless of its value plus damages

Obligations:
1. Landowner must pay for the necessary
expenses if he appropriates
2. If Landowner gets the fruits, he must pay
P/S expenses for their production, gathering
and preservation

**If landowner does not want to pay for the

above, landowner may choose to allow b/p/s
to do the harvesting and gathering of the fruits
and keep them

Bad Faith Bad Faith

If both are in bad faith, treat each as if in good If both are in bad faith, treat each as if in good
faith. faith.

3rd Case: Builder/planter/sower builds, plants or sows on another’s land using

materials owned by a third person

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1. If the option is with LO (to buy improvement or sell the land), the LO cannot refuse the
option. He may be compelled by the court to exercise the option.
2. If LO buys improvement from B/P/S, he must pay its value. B/P/S can retain land until
he is paid.
3. If LO opts to buy land, B/P/S may sue to compel him to pay. Obligation becomes civil
– debt.
4. There is no transfer of ownership of improvement till LO pays.
5. Ortiz v. Kayanan: (1) B/P/S in bad faith once he receives judicial summons; (2)
B/P/S retains land until he is reimbursed for necessary and useful expenses, but
fruits received since then must be given to LO; (3) B/P/S may get reimbursed by
deducting value of fruits he receives from time his good faith ceases from his
expenses.
6. If LO opts to sell land, price will be based on prevailing market value at time of
payment.
7. If LO chooses to sell land and B/P/S unable or unwilling to pay, LO has 3 options: (1)
assume lessor-lessee relationship; (2) have improvements removed and in the
meantime demand rent; or (3) sell land and improvement at public auction; the
proceeds applied to value of land first.
8.LO cannot compel sower to buy land. LO can either buy the improvement or demand
rental.
9. If value of land is greater than the value of improvement, LO can choose only between
buying the improvement or demanding rent.
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B. Natural Accessions to Real Property (Art. 457-465)

1. Alluvion or accretion – owners of lands adjoining the banks of river own the
accretion

Requisites for alluvion to exist:

1. deposit of soil is gradual and imperceptible
2. deposit made by action of water currents of the river (exclusive work of
nature)
3. land where soil is deposited adjacent to the river
4. deemed to exist when the deposit of sediment has reached a level higher than
the highest level of the water during the year

Effect: land automatically owned by riparian owner, but must be registered so he would
acquire title.

Rationale: to offset the owner’s loss from the possible erosion of his land due to current
of the river and to compensate him for legal easements on his land.

Notes:
1. If deposit is made by an action of the sea – the State owns the deposit.
2. If man-made, deposit remains part of public dominion

2. Avulsion – process by which a known portion of land is segregated from one estate
by the forceful current of the river, creek or torrent, and is transferred to another
Requisites:
1. Segregation and transfer is abrupt and sudden
2. Caused by the current of the river, etc.
3. Portion of land is identifiable or known
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Can also apply to sudden transfer by other forces of nature such as land transferred
from a mountain slope due to an earthquake.

3. Change of river’s course – natural change in the course of the waters of the river
causes the abandonment of the riverbeds
a. The abandoned riverbeds ipso facto belong to the owners whose lands are
occupied by the new course in proportion to the area lost.
b. Island formed when a river divides itself into branches – belongs to the
landowner where such island was formed as well as the land separated from his estate
by the current.
c. Island is formed on a sea, lake or navigable or floatable river - State owns it.
d. Islands formed through successive accumulation of alluvial deposits in non-
navigable rivers
(1) Belong to the owner of the margins nearest to the island
 (2) If island is in the middle of the river – shall be owned by owners of both
margins, to be divided longitudinally in halves
(3) if island is nearer to the island than the other – the owner of nearer margin
shall be the owner

II. Rules for accessions to movables

A. Accessions to personal property
1. ADJUNCTION – two movable things belonging to different owners are united in
such a way that they form a single object, and each of the things united
preserves its own nature. E.g., diamond ring
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Requisites:
1. The 2 things must belong to different owners. (owner of principal and owner of
accessory)
2. They are united to form a single object.
3. Separation would impair their nature

Kinds of Adjunction:
1.Engraftment
2. Attachment
(a) ferruminatio – both things are made of the same metal;
(b) plumbatura – different metals
3. Escritura (writing)
4. Pintura (painting)
5. Tejido (weaving)

2. COMMIXTION OR CONFUSION

a. COMMIXTION – mixture of solids (e.g., mixture of denorado and organic red rice)

b. CONFUSION – mixture of liquids (e.g., Xtra unleaded and XCS gasoline; olive oil
and vinegar)

Rules:
a. If caused by the will of the parties or by chance or by the will of one party who is in
good faith – there will be co-ownership based on proportional value (not volume)
b. If caused by the will of one owner in bad faith, the owner in bad faith loses the
entire thing.

3. SPECIFICATION – giving of a new form to another person’s material through the

application of labor

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E. CO-OWNERSHIP

a. Characteristics of co-ownership
. 1. More than one owner
 2. Object of co-ownership is a thing of right which is physically or materially
undivided but each co-owner has an aliquot or fractional share of the thing or
right
3. Each fractional share is definite in amount but not physically segregated so
cannot be identified
4. As to his fractional share, each co-owner has absolute control but as to the
object of the ownership, each co-owner exercises ownership together with
the other co-owners
5. No juridical personality of its own but exists for the enjoyment of all co-owners

b. Sources of co-ownership
1. Law
2. Contract
3. Chance
4. Occupation
5. Succession

c. Rights of co-owners

1. To use the thing in common

Limitations: use for purposes for which intended; interest of co-ownership not
prejudiced; other co-owners free to use property according to their own rights

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2. To share in the benefits (fruits) and charges (taxes and expenses in

preservation) in proportion to interests of each co-owner (a stipulation in a
contract providing otherwise is void);

Note: a co-owner may exempt himself from paying the charges by renouncing
so much of his undivided interest as may be equivalent to his share in expenses
to reimburse the co-owner who paid for the expenses; exception: waiver not
allowed if prejudicial to co-ownership.

3. To bring an action for ejectment

4. Prescription shall not run against any co-owner as long as he recognizes the
co-ownership

Note: possession of the entire property by one will not ripen to ownership by
acquisitive prescription; unless said co-owner repudiates the co-ownership, then
the prescriptive period will begin to run.

5. To make repairs for preservation with prior notice of necessity for repairs to
others, if practicable
6. To compel the others to share in the necessary expenses even if incurred
without prior notice
 7. To oppose alterations made without the consent of all, even if beneficial –
alterations require unanimity

If opposition is clearly prejudicial, the others may go to court.

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Note: for administration and better enjoyment of property (embellish or improve

it) requires majority vote only (controlling majority); co-owner may apply to the
court if decisions of the majority are seriously prejudicial to the co-ownership or if
a majority vote could not be reached: court to appoint administrator or order
measures as it may deem proper.

8.To exercise legal redemption of the share of a co-owner within 30 days from
written notice of sale to stranger
9. To defend the co-ownership’s interest in court
10. To demand partition anytime –no co-owner shall be obliged to remain in co-
ownership

Exceptions: (1) testator/donor may prohibit partition for a period of not more than
20 years; (2) if there is agreement not to partition for 10 years, may be extended by
new agreement; (3) a law prohibits partition (family home); (4) legal nature of the
thing prohibits partition, e.g., party wall; (5) partition renders the property
unserviceable –shall be sold and proceeds distributed unless one of the co-owners
gets the property and indemnifies the others for their share

Exception to the exception: court orders partition for compelling reasons

d. Ways of terminating co-ownership

. 1. Partition – converts into certain and definite parts the respective shares of the
co-owners;

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Effects of Partition:
a. Third parties who have acquired real rights over the property such as
easements, mortgage, or pledge belonging to them prior to the partition shall be
respected.
b. Personal rights belonging to third parties prior to the partition shall remain in
force.
c. Mutual accounting shall be rendered by co-owners to each other with regard
to benefits and expenses.
d. Each co-owner shall pay for damages due to his negligence or fraud.
e. Each co-owner shall be liable for defects of title and quality of the portion
assigned to each of the other co-owner

2. Consolidation- merger of all the interest in one co-owner

3. Destruction or loss of the thing owned in common
 4. Prescription-clear repudiation of a co-owner of the co-ownership, made known
to the other co-owners, and lapse of the period fixed by law

G. POSSESSION
POSSESSION: the holding of a thing or the enjoyment of a right, either by material
occupation or by the fact of subjecting the thing or the right to the action of our will

Requisites:
1. Holding /control or material detention or enjoyment of thing or right
2. Intent to possess the thing or right
3. Possession is by virtue of one’s own right
- 30 -

2 KINDS OF POSSESSION:

1. in the concept of an owner

2. in the concept of a holder

NATURE OF POSSESSION:

a. Jus possidendi – right to possession which is incidental to and included in the

right of ownership
b. Jus possessionis- right of possession independent of and apart from the right
of ownership

FORMS OF POSSESSION

a. possession without title whatsoever (that of a thief)

b. possession with a juridical title (lessee, pledgee, depositary)
c. possession with just title (buyer in good title)
d. possession with a title in fee simple (possessor is the legal owner)

OBJECTS OF POSSESSION

General rule: Only things or rights that are capable of being appropriated may be
objects of possession. (Art. 530)

Exceptions:
1. res communes
2. property of public dominion
3. discontinuous servitudes
4. non-apparent servitudes

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WAYS OF ACQUIRING POSSESSION:

1. material occupation of a thing or exercise of a right

 2. subjection of the thing or right to a person’s will
3. proper acts and legal formalities established for acquiring it

EFFECTS OF POSSESSION

Possessor in Good Faith Possessor in Bad Faith

Fruits Entitled to fruits received until Reimburse to the legitimate possessor

possession is legally interrupted the fruits received which he would
(i.e., before receipt of judicial have received
summons)

Pending Fruits Liable with legitimate possessor No right to pending fruits

(LP) for expenses of cultivation and
share in the net harvest in
proportion to time of possession

LP may opt to give PGF right to

finish cultivation and gathering of
growing fruit, as indemnity for his
part of expenses and the net
proceeds. If possessor does not
accept, loses indemnity.

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EFFECTS OF POSSESSION

Possessor in Good Faith Possessor in Bad Faith

Necessary expenses Right of reimbursement with right of Right of reimbursement with no right
retention of retention
Useful expenses 1. Limited right to remove Loses what was built/planted or sown
useful works (UW) (w/o
damage to principal) if the
person who recovers
possession (PRP) does not
want to keep them
2. If PRP gets the UW:
(a) to be refunded the amount
of useful expenses or be paid the
increase in value w/c thing may
have acquired by reason thereof
(b) to retain the thing until he is
reimbursed
Ornamental; expenses a. Not entitled to refund if owner May remove ornamental works
does not want to acquire ornaments a. If the owner does not want to
but has limited right of removal retain possession of ornaments:
b. If owner wants to acquire b. Principal thing does not suffer
ornaments, entitled to be paid value injury
at time of possession

Loss or deterioration Not liable for deterioration or loss, Liable for any type of loss or
unless he acted with fraud or deterioration, including those arising
negligence, after judicial summons from fortuitous event, as insurer of
the property

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H. USUFRUCT
1. Definition:
Usufruct gives a right to enjoy the property of another with the obligation of
preserving its form and substance, unless the title constituting it or the law otherwise
provides. (Art. 562)

2. Characteristics:
a. It is a real right of use and enjoyment
b. Transmissible
c. It is of temporary nature or duration
d. Constituted on real or personal property, consumable or non-consumable,
tangible or intangible

3. Classification
a. As to source
i. Legal
ii. Voluntary or conventional
iii. Created by the will of the parties inter vivos
iv. Created mortis causa
v. Mixed
b. As to extent
i. As to fruits – total or partial
ii. As to object – universal or particular
c. As to number of persons enjoying the right
i. Simple
ii. Multiple
a) Simultaneous
b) Successive

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4. Rights and obligations of usufructuary
A. Rights
(1) Right to fruits (natural, civil, or industrial) of the property in usufruct.
(2) Right to hidden treasure as a stranger. (Art. 566)
(3) Right to increases in the thing held in usufruct through accession, the
servitudes established in its favor, and in general, to all the benefits
inherent therein. (Art. 571)
(4) Right to personally enjoy it, lease it to another, or alienate or donate
his right to usufruct, but all contracts entered into by him, shall
terminate upon the expiration of the usufruct, except those of rural
lands, which will be considered subsisting during the agricultural
season. (Art. 572)
(5) Right to return the thing held in usufruct in the condition they were in
at the termination of the usufruct, due to wear and tear.
(6) Usufructuary not obliged to indemnify the owner for any deterioration
through wear and tear, unless the same was due to his fraud or
negligence.
(7) Right to make use of consumable things in usufruct under the
obligation to pay their appraised value at the termination of the
usufruct. If the things were not appraised, he shall have the right to
return the same quantity and quality, or pay the current price at the
time the usufruct ceases.
-

B. Obligations
Art. 583. The usufructuary, before entering upon the enjoyment of the property,
is obliged:

(1) To make, after notice to the owner or his legitimate representative, an

inventory of all the property, which shall contain an appraisal of the movables
and a description of the condition of the immovables;

NOTE:
a. The inventory is to be done before the physical possession and enjoyment of
the property can be had. There could be usufruct without physical possession.
b. As a rule, no form is required except where there are real properties.
c. Expenses are to be borne by the usufructuary
d. Effect of not making inventory—same as when the security isn’t given
e. When inventory not required
1. When no one will be injured thereby provided that the naked owner
consents
2. In case of waiver by the naked owner or the law or where there is
stipulation in contract or will
 (2) To give security, binding himself to fulfill the obligations imposed upon him
in accordance with the Civil Code.

NOTE: if the usufructuary fails to give security the usufruct still begins but the
naked owner will have the rights granted him under Article 586.
- 36 -

When giving of security may be dispensed with:

1. When no one will be injured thereby;

2. When there is waiver by the naked owner or there is stipulation in a will or

contract;

3. When the usufructuary is the donor of the property;

4. Where there is parental usufruct;

5. When there is caucion juratoria, which takes place of the bond, and is made
by taking an oath to fulfill properly the duties of a usufructuary but this is
available only under conditions prescribed

5. Rights of the naked owner

(1) The owner of property the usufruct of which is held by another, may alienate
it, but he cannot alter its form or substance, or do anything thereon which may be
prejudicial to the usufructuary (Art. 581).
NOTE: If the naked owner bequeathes or devises to another the usufruct of a
thing through a will, the legatee or devisee must respect the usufruct.

(2) Aside from the right of the naked owner to alienate the property, he may
also:
a. Construct any works thereon;
b. Make any improvements; or,
c. Make plantings thereon, if rural, but always, such acts must not cause:
i. Decrease in the value of the usufruct
ii. Or prejudice the right of the usufructuary.

- 37 -

6. Extinction, termination, and extinguishment

Art. 603. Usufruct is extinguished:
(1) By the death of the usufructuary, unless a contrary intention clearly appears;
(2) By the expiration of the period for which it was constituted, or by the fulfillment
of any resolutory condition provided in the title creating the usufruct;
(3) By merger of the usufruct and ownership in the same person;
 (4) By renunciation of the usufructuary;
(5) By the total loss of the thing in usufruct;
(6) By the termination of the right of the person constituting the usufruct;
(7) By prescription.

I. DONATION

1. Definition: An act of liberality whereby a person disposes gratuitously of a thing or

right in favor of another, who accepts it. (Art. 725, CC)

2. Donation mortis causa v. Donation inter vivos

Mortis causa: Donations which are to take effect upon the death of the donor
partake of the nature of testamentary provisions, and shall be governed by the rules
established in the Title on Succession. (Art. 728, CC)

Inter-vivos: When the donor intends that the donation shall take effect during the
lifetime of the donor, though the property shall not be delivered till after the donor's
death, this shall be a donation inter vivos.
- 38 -

The fruits of the property from the time of the acceptance of the donation, shall
pertain to the donee, unless the donor provides otherwise. (Art. 729, CC)

Donation when perfected:

From the moment the donor knows of acceptance by the donee. (Art. 734, CC)

Forms of donation:

(1) Donations of movable property

(a) Value is P5,000 or more
(i) Donation and acceptance – in writing; otherwise, it is void; or
(b) Value is less than P5,000:
(i) Orally – simultaneous delivery is required (actual or constructive) for validity;
acceptance oral or written; or
(ii) In writing – valid, with or without simultaneous delivery. (Art. 748)

2) Donation of immovable property

(a) Donation must always be in a public document specifying the property donated
and the value of the charges which the donee must satisfy; and
b) Acceptance may be made either in:
(i) The same deed of donation;
(ii) In a separate public document done during the lifetime of the donor, wherein
the donor is notified thereof in an authentic form, and such step is
noted in both instruments. (Art. 749, CC)
 - 39 -

Grounds for revocation of donation:

(1) Supervening birth, appearance or adoption of a child (Arts. 760 and 761, CC);

(2) Failure to comply with any condition imposed upon the donee (Art. 764, CC); and

(3) Acts of ingratitude of the donee, i.e.:

(a) If the donee commits an offense against the person, honor or property of the
donor, his wife or children under his parental authority;
(b) If the done imputes any criminal offense or act involving moral turpitude,
unless the crime has been committed against the donee himself, his wife or
children under his authority; and
(c) If he unduly refuses him support when the donee is legally or morally bound to
give support to the donor. (Art. 765, CC)

Prescriptive periods for revocation

(1) For acts of ingratitude – one (1) year from the time the donor had knowledge
of the fact and it was possible for him to bring the action. (Art. 769, CC)

(2) For supervening birth, survival, or adoption of a child – four (4) years from
the birth of the first child, or from his legitimation, recognition or adoption,
or from the judicial declaration of his filiation, or from the time
information was received regarding the existence of the child believed
dead. (Art. 763, CC)

- 40 -

J. EASEMENT

1. Definitions:

a. Easement or servitude – encumbrance imposed upon an immovable for the

benefit of another immovable belonging to a different owner
b. Dominant estate - – immovable in favor of which an easement is established
c. Servient estate - – that which is subject to easement

2. Characteristics

a. A real right but will affect third persons

b. Imposable only on another’s property
c. Involves 2 neighboring estates, the dominant estate to which the right belongs,
and the servient estate on which the obligation rests.
d. Inseparable from the estate to which it is attached, and cannot be alienated
independently of the estate
e. Indivisible and limited to the needs of the dominant owner or estate;
f. A limitation on the rights of ownership of the owner of the servient estate and
therefore it is not presumed.
3. Classification

a. Easement relating to water

b. Easement of right of way
c. Easement of light and view
d. Easement of party wall
e. Drainage of buildings
f. Easement against nuisance
- 41 -

A. Easement relating to water

(1) Natural drainage;

(2) Drainage of buildings (Right to divert the rain waters from one’s own
roof to the neighboring estate);

(3) Easement on riparian banks for navigation, floatage, fishing, salvage,

and towpath (Art. 638, CC)
(a) Urban areas – within a zone of three (3) meters;
(b) Agricultural areas – twenty (20) meters
(c) Forest areas – forty (40) meters

(4) Easement of a dam (Art. 639, CC);

Requisites
a. Authority secured from the DPWH (Art. 38, P.D. 1067); and
b. Payment of proper indemnity to owner of servient estate (Art. 639,
CC).
(5) For drawing water or for watering animals (Art.
640-641, CC);

Requisites:
(a) It must be imposed only for reasons of public use;
(b) It must be in favor of a town or village; and
(c) There must be payment of proper indemnity. (Art. 640, CC)

- 42 -

(6) Aqueduct (Art. 644, CC);

Requisites:
(a) Proof that owner of the dominant estate can dispose of the water and
that it is sufficient for use intended;
(b) Proof that the proposed right of way is the most convenient and least
onerous to third persons; and
(c) Indemnity to owner of the servient estate. (Art. 643, CC)

(7) Construction of a stop lock or sluicegate (Art. 647

B. Easement of right of way

 The owner of an estate, surrounded by other immovables pertaining to other
persons and without adequate outlet to a public highway, is entitled to demand a
right of way through the neighboring estates, after payment of the proper
indemnity. (Art. 649, CC)

Requisites for grant of easement of right of way:

(1) The dominant estate is surrounded by other immovables and is without an
adequate outlet to a public highway;
(2) The dominant estate pays proper indemnity;
(3) The isolation was not due to the proprietor’s (dominant estate owner’s) own acts;
and
(4) The right of way claimed is at a point least prejudicial to the servient estate.
(Costabella Corp. v. CA, G.R. No. 80511, January 25, 1991)

- 43 -

C. Easement of light and view

 NOTE: The burden of proving the existence of the foregoing pre-requisites lies
on the owner of the dominant estate. (Costabella Corp. v. CA, supra)

 GENERAL RULE: In easement of right of way, that easement where the way is
shortest and will cause least prejudice shall be chosen.
 EXCEPTION: If the two circumstances do not concur in a single tenement, the
way where damage will be least shall be used even if not the shortest route. This
is so because least prejudice prevails over shortest distance. (Quimen v. CA,
G.R. No. 112331, May 29, 1996)

 Right to make openings in one’s wall to admit light and to make projections (e.g.
windows, apertures, balconies) to afford a view upon or towards an adjoining
land or tenement. (Arts.669-670, CC)
 Restrictions:
(1) Direct view: Observe distance of two (2) meters between the wall or the
projection and the contiguous property. (Art. 670, CC)
(2) Side or oblique view: Observe distance of sixty (60) centimeters between the
two properties. (Arts. 670-671, CC)

 NOTE: The non-observance of the restrictions shall not give rise to prescription.
(Art. 670, CC)

- 44 -

D. Easement of Party Wall

A wall used jointly by two parties under easement agreement, erected upon a line
separating two parcels of land, each of which is a separate real estate. (B.P. Blg. 220)
  GENERAL RULE: The easement of party wall is presumed in the following:
 (1) In dividing walls of adjoining buildings up to the point of common elevation;
 (2) In dividing walls of gardens or yards situated in cities, towns, or in rural
communities;
 (3) In fences, walls and live hedges dividing rural lands. (Art. 659, CC)
 EXCEPTION: If there is a title or exterior sign, or proof to the contrary. (Ibid.)
 NOTE: Party walls should be registered. (Lao v. Heirs of Alburo, G.R. No. L-
10372, December 14, 1915)

E. Drainage of Buildings

Types:
 (1) Easement of drainage of buildings
The owner of a building shall be obliged to construct its roof or covering in such
manner that the rain water shall fall on his own land or on a street or public place,
and not on the land of his neighbor, even though the adjacent land may belong to
two or more persons, one of whom is the owner of the roof.

- 45 -

 Even if it should fall on his own land, the owner shall be obliged to collect the
water in such a way as not to cause damage to the adjacent land or tenement.
(Art. 674, CC)

 (2) Easement to receive water falling from roofs

Easement to receive the water upon his own roof or give it another outlet. (Art.
675, CC)

(3) Easement to give outlet to rain water

Requisites for establishment of an easement giving outlet to rain water:
(a) The yard or court of a house is surrounded by other houses;
(b) It is not possible to give an outlet through the house itself to the rain water
collected thereon;
(c) Outlet must be where egress is easiest and establishing a conduit for the
drainage of water; and
(d) Payment of proper indemnity.(Art.676, CC)

F) Easement Against Nuisance

 Every building or piece of land is subject to the easement which prohibits the
proprietor or possessor from committing nuisance through noise, jarring,
offensive odor, smoke, heat, dust, water, glare and other causes. (Art. 682, CC)

- 46 -
Extinguishment of Easements:

1) By merger in the same person of the ownership of the dominant and servient
estates;

2) By nonuser for ten years;

(a) With respect to discontinuous easements, this period shall be computed
from the day on which they ceased to be used.
(b) With respect to continuous easements, from the day on which an act
contrary to the same took place.

3) When either or both of the estates fall into such condition that the easement
cannot be used; but it shall revive if the subsequent condition of the estates or
either of them should again permit its use, unless when the use becomes
possible, sufficient time for prescription has elapsed, in accordance with the
provisions of the preceding number;

4) By the expiration of the term or the fulfillment of the condition, if the easement is
temporary or conditional;

5) By the renunciation of the owner of the dominant estate; and

6) By the redemption agreed upon between the owners of the dominant and
servient estates. (Art. 631, CC

- 47-

NUISANCE

Any act, omission, establishment, business, condition of property, or anything else

which:
(1) Injures or endangers the health or safety of others;
(2) Annoys or offends the senses;
(3) Shocks, defies or disregards decency or morality;
(4) Obstructs or interferes with the free passage of any public highway or
street, or any body of water; or
(5) Hinders or impairs the use of property. (Art. 694, CC)

 Public nuisance – Affects a community or neighborhood or any considerable

number of persons, although the extent of the annoyance, danger or damage
upon individuals may be unequal.

 Private nuisance - Violates only private rights and produces damages to but one
or a few persons. (Cruz, et al. v. Pandacan Hiker's Club, G.R. No. 188213,
January 11, 2016)
  Remedies against a public nuisance:
(1) Prosecution under the RPC or a municipal ordinance;
(2) Civil action; or
(3) Abatement, without judicial proceedings. (Art. 699, CC)

- 48 -

Doctrine of attractive nuisance

One who maintains on his premises dangerous instrumentalities or appliances of a

character likely to attract children in play, and who fails to exercise ordinary care to
prevent children from playing therewith or resorting thereto, is liable to a child of tender
years who is injured thereby, even if the child is technically a trespasser in the premises.
(Hidalgo Enterprises, Inc. v. Balandan, et al., G.R. No. L-3422, June 13, 1952)

Nuisance Per Se Nuisance Per Accidens

Nuisance under any and all circumstances Depends upon certain conditions and
circumstances

Constitutes a direct menace to public Its existence is a question of fact

health and safety

May be summarily under the undefined law Cannot be abated without due hearing
of necessity thereon in a tribunal authorized to decide
whether such a thing in law constitute a
nuisance