Salient Points in

Civil Code of the Philippines

Referring to Real Estate Property

Prepared by:
Jalandoon, Jinky May R.
Jumaquio, Michaella Dominique I.
Paghubasan, Rolyn A.
Ramos, Reyven Y.

Prepared to:
Dr. Benedicto L. Avila, PhD

October 20, 2023

REM 101-2 - FUNDAMENTALS OF REAL ESTATE MANAGEMENT / BS REM 3-2

 PRELIMINARY TITLE

CHAPTER 1
Effect and Application of Laws

Article 16. Real property as well as personal property is subject to the law of the country
where it is situated.

However, intestate and testamentary successions, both with respect to the order of
succession and to the amount of successional rights and to the intrinsic validity of
testamentary provisions, shall be regulated by the national law of the person whose
succession is under consideration, whatever may be the nature of the property and
regardless of the country wherein said property may be found. (10a)

This article essentially explains that the laws governing both real property (land and buildings)
and personal property (possessions) are determined by the laws of the specific country where
the property is located. However, when it comes to the distribution of property and assets in
the case of someone passing away without a will (intestate) or with a will (testamentary), the
laws of the country of the deceased person's nationality will be used to decide who inherits the
property, how much they inherit, and whether the terms of the will are legally valid. This
applies regardless of the type of property and regardless of where the property is situated.

BOOK I
PERSONS

TITLE VI
PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

CHAPTER 1
General Provisions

Article 119. The future spouses may in the marriage settlements agree upon absolute or
relative community of property, or upon complete separation of property, or upon any
other regime. In the absence of marriage settlements, or when the same are void, the
system of relative community or conjugal partnership of gains as established in this Code,
shall govern the property relations between husband and wife.

This article outlines the options available to future spouses regarding the property regime they
want to establish for their marriage.
Article 133. Every donation between the spouses during the marriage shall be void. This
prohibition does not apply when the donation takes effect after the death of the donor.

Neither does this prohibition apply to moderate gifts which the spouses may give each
other on the occasion of any family rejoicing.

Article 133 of the Civil Code of the Philippines restricts significant gifts or property transfers
between spouses while they are married, but it allows for exceptions for gifts upon the donor's
death and small presents on family celebrations.

Article 143. All property of the conjugal partnership of gains is owned in common by the
husband and wife.

This means that in a marriage under the conjugal partnership of gains regime, all the property
acquired during the marriage, whether by the husband or the wife, is considered joint or
common property.

Article 160. All property of the marriage is presumed to belong to the conjugal
partnership, unless it be proved that it pertains exclusively to the husband or to the wife.

This article establishes a legal default where property acquired during the marriage is
considered jointly owned, but it allows for exceptions if there is evidence to show that a specific
asset is the exclusive property of one spouse.

Article 179. Upon the dissolution of the conjugal partnership, an inventory shall be
formed, but such inventory shall not be necessary:

(1) If, after the dissolution of the partnership, one of the spouses should have renounced
its effects and consequences in due time; or

(2) When separation of property has preceded the dissolution of the partnership. (1418a)”

Article 179 outlines the requirements for settling the financial aspects of a conjugal partnership
upon its dissolution and the exceptions where the creation of an inventory is not needed.

Article 190. In the absence of an express declaration in the marriage settlements, the
separation of property between spouses during the marriage shall not take place save in
virtue of a judicial order. (1432a)

This article emphasizes that in the absence of a prenuptial agreement or a specific legal order,
property acquired during the marriage is typically subject to the rules of conjugal partnership
or community property, where assets are commonly owned by both spouses. Separation of
property requires a judicial decision to enforce.
Article 212. Should the future spouses agree in the marriage settlements that their
property relations during marriage shall be based upon the system of complete separation
of property, the following provisions shall supplement the marriage settlements.

In essence, this article highlights that if a married couple has chosen the complete separation
of property as their property regime, they should include additional provisions in their
marriage settlement to detail how they will manage their property during the marriage.

Article 213. Separation of property may refer to present or future property or both. It
may be total or partial. In the latter case, the property not agreed upon as separate shall
pertain to the conjugal partnership of gains.

This article explains the flexibility within the separation of property regime, allowing spouses
to define which property will be kept separate (present or future), and whether this separation
will be total or partial.

Article 214. Each spouse shall own, dispose of, possess, administer and enjoy his or her
own separate estate, without the consent of the other. All earnings from any profession,
business or industry shall likewise belong to each spouse.

This article reinforces the idea that, in a complete separation of property regime, spouses
maintain financial independence and control over their personal assets and the income they
earn from their individual endeavours without the need for spousal consent.

BOOK II
PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS

Title I
Classification of Property
Preliminary Provisions

Article 414. All things which are or may be the object of appropriation are considered
either:
(1) Immovable or real property; or
(2) Movable or personal property. (333)
 CHAPTER 1
Immovable Property

ARTICLE 415. The following are immovable property:

A house and lot is a perfect example of a real property (also called immovable property).
They are referred to as immovable because they adhere to the soil. Article 415 of the Civil
Code of the Philippines enumerates other kinds of immovable property.

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

Land is the best example of immovable property. Roads and buildings are attached to the
land so they are likewise immovable.

(2) Trees, plants, and growing fruits, while they are attached to the land or form an
integral part of an immovable;

Trees and plants are actually movable but they are deemed by law immovable as long as they
form an integral part of an immovable. (land or of a building) Growing fruits are logically
immovable while attached to an immovable tree.

(3) Everything attached to an immovable in a fixed manner, in such a way that it cannot
be separated therefrom without breaking the material or deterioration of the object;

(4) Statues, reliefs, paintings or other objects for use or ornamentation, placed in
buildings or on lands by the owner of the immovable in such a manner that it reveals
the intention to attach them permanently to the tenements;

Statues, reliefs, painting and other ornaments are obviously and factually movable. However,
the law looks into the intention of the owner of the immovable who has placed them thereon.
Therefore, ornaments are immovable if the intention is to attach them permanently to the
building or tenements.

(5) Machinery, receptacles, instruments or implements intended by the owner of the

tenement for an industry or works which may be carried on in a building or on a piece
of land, and which tend directly to meet the needs of the said industry or works;

Pieces of machinery, if placed by the owner on an immovable and with the intention of using
them for an industry are deemed by law as immovable. Hence, those machineries in the
factory are deemed immovable by law.

(6) Animal houses, pigeon-houses, beehives, fish ponds or breeding places of similar
nature, in case their owner has placed them or preserves them with the intention to have
them permanently attached to the land, and forming a permanent part of it; the animals
in these places are included;

The law considers as immovable the animals in breeding places.

(7) Fertilizer actually used on a piece of land;

Fertilizer actually applied on a piece of land is immovable. Hence, fertilizers that are not yet
applied are of course, movable.

(8) Mines, quarries, and slag dumps, while the matter thereof forms part of the bed, and
waters either running or stagnant;

The slag dumps must still form part of the bed. Waters either moving or not are immovable.
The -s in waters means that the provision refers to the bodies of water, not just water itself.
Hence, the water in a water bottle is movable.

(9) Docks and structures which, though floating, are intended by their nature and object
to remain at a fixed place on a river, lake, or coast;

Here, the intent by reason of nature and object is what makes the structure immovable. A
house on the sea, though floating, if permanently tethered, is immovable. Remember that the
sea itself is immovable.

(10) Contracts for public works, and servitudes and other real rights over immovable
property. (334a)

It means that the agreements related to construction projects and the rights to use or access
properties are immovable.

CHAPTER 2
Movable Property

ARTICLE 416. The following things are deemed to be personal property:

(1) Those movables susceptible of appropriation which are not included in the preceding
article;

The list is exclusive and those that are not mentioned are classified as personal property
(also called movable property).
(2) Real property which by any special provision of law is considered as personalty;

Real property that is treated as personal property by a specific law.

(3) Forces of nature which are brought under control by science; and

Gravitational force, Weak Nuclear force, Electromagnetic force and Strong Nuclear force.

(4) In general, all things which can be transported from place to place without
impairment of the real property to which they are fixed. (335a)

ARTICLE 417. The following are also considered as personal property:

(1) Obligations and actions which have for their object movables or demandable sums;
and
(2) Shares of stock of agricultural, commercial and industrial entities, although they
may have real estate. (336a)

Movable property is either consumable or non consumable. To the first class belong those
movables which cannot be used in a manner appropriate to their nature without their being
consumed; to the second class belong all the others.

Title II
OWNERSHIP

CHAPTER 1
Ownership in General

Article 428. The owner has the right to enjoy and dispose of a thing, without other
limitations than those established by law.

The owner has also a right of action against the holder and possessor of the thing in
order to recover it. (348a)

Ownership is a right to enjoy and dispose of a thing, without other limitations than those
established by law.

Incidental Rights
● Right to enjoy (includes possession, use, fruit)
 ● Right to dispose (includes the right to destroy or abuse, alienate, transform,
encumber)
● Right to recover

Possession as Part of Ownership

If a court of competent jurisdiction declared that a party is the owner of a property, it follows
that the owner is entitled to possession, the delivery of possession is included. Possession
follows ownership.

Example:
B is the owner of the house. He has the right to:
(a) live in it;
(b) use it;
(c) receive rentals from a tenant in case she lease it;
(d) destroy it;
(e) sell or mortgage or donate or alter it, or;
(f) recover it from anyone who has deprived her of its rightful possession.

Article 429. The owner or lawful possessor of a thing has the right to exclude any person
from the enjoyment and disposal thereof. For this purpose, he may use such force as
may be reasonably necessary to repel or prevent an actual or threatened unlawful
physical invasion or usurpation of his property.

The owner has a right to:

(a)Exclude any person from the enjoyment and disposal of a thing.
(b)Use such force as may be reasonably necessary to prevent actual physical invasion.

Doctrine of ‘Self-Help’
This article speaks of the principle of self-help, namely, the right to counter, in certain cases,
using force.

Article 438. Hidden treasure belongs to the owner of the land, building, or other
property on which it is found.

Nevertheless, when the discovery is made on the property of another, or of the State or
any of its subdivisions, and by chance, one-half thereof shall be allowed to the finder. If
the finder is a trespasser, he shall not be entitled to any share of the treasure.

If the things found be of interest to science or the arts, the State may acquire them at
their just price, which shall be divided in conformity with the rule stated. (351a)

(1) Where Hidden Treasure May Be Found

The treasure may be found on:
A. land
B. building
C. or other property

Instances if a person find a treasure:

(1) Treasure Found on One’s Own Property

A. If finds a hidden treasure in his house, he alone owns the treasure.
B. If he is married, the treasure belongs to the conjugal partnership. (Art. 154).

(2) Treasure Found on Another’s Property; Meaning of “By Chance”

● The finder is entitled to one-half
Note: Permission must be sought, otherwise the finder will be considered a trespasser.

(3) Trespasser
● not entitled to any share of the treasure
Note: A trespasser (one prohibited to enter, or not given authority to enter) who discovers
hidden treasure is not entitled to any share of the treasure.

(4) Treasure is of interest to science or the arts

● The state may acquire them at their just price.

ARTICLE 439. By treasure is understood, for legal purposes, any hidden and unknown
deposit of money, jewelry, or other precious objects, the lawful ownership of which does
not appear. (352)

(1) Requisites in the Definition of Hidden Treasure

A. Hidden and unknown deposit (such that finding it would indeed be a discovery).
B. Consists of money, jewelry or other precious objects.
C. Their lawful ownership does not appear.

Note: “Other precious objects” should be understood to refer to those of the same class as
money or jewelry, and should not therefore include property imbedded in the soil, or part of
the soil, like minerals.

Article 445. Whatever is built, planted or sown on the land of another and the
improvements or repairs made thereon, belong to the owner of the land, subject to the
provisions of the following articles.

Where does the Right of accession to immovable property belong?

 ● Whatever is built, planted or sown on the land of another and the improvements or
repairs made thereon, belong to the owner of the land.

(1) Meaning of ‘Building’

● all kinds of constructions with a roof

Article 457. To the owners of lands adjoining the banks of rivers belong the accretion
which they gradually receive from the effects of the current of the waters. (336)

(1) Forms of Accession Natural

With this article begins accession natural, the principal forms of which are:
A. Alluvium.
● Alluvium (or alluvio) is the soil deposited or added to (accretion) the lands
adjoining the banks of rivers, and gradually received as an effect of the current
of the water.

B. Avulsion
● ‘Avulsion’ is the process whereby the current of a river segregates from an estate
on its bank a known portion of land and transfers it to another estate.
C. change of course of rivers
D. Formation of island

Note: Accretion is the process whereby the soil is deposited, while alluvium is the soil
deposited on the estate fronting the river bank.

Example: Accretions on the bank of a lake, like Laguna de Bay, belong to the owners of the
estate to which they have been added.

Article 462. Whenever a river, changing its course by natural causes, opens a new bed
through a private estate, this bed shall become of public dominion.

(1) Rule if New River Bed is on Private Estate

● The bed becomes property of public dominion

Article 463. Whenever the current of a river divides itself into branches, leaving a piece
of land or part thereof isolated, the owner of the land retains his ownership. He also
retains it if a portion of land is separated from the estate by the current.
(1) Rule if River Divides Itself into Branches
Example: A’s estate adjoins a river, but the river divides itself into branches, thus affecting
A’s property. A however remains the owner of the portion which:
A. may be isolated from the rest (here, the portion has not physically moved, but there is
ISOLATION).
B. or may be separated from the rest (here, the portion has physically moved — hence,
the SEPARATION).

Title V
POSSESSION

CHAPTER 1
Possession and the Kinds Thereof

Article 525. The possession of things or rights may be had in one of two concepts: either
in the concept of owner, or in that of the holder of the thing or right to keep or enjoy it,
the ownership pertaining to another person.

Concept of Owner
Possessor of thing or right, by his actions, is considered or believed by others as the owner,
regardless of good or bad faith of the possessor, recognizing no title of ownership in another

Concept of Holder
Possessor acknowledges in another a superior right which he believes to be ownership

ARTICLE 532. Possession may be acquired by the same person who is to enjoy it, by his
legal representative, by his agent, or by any person without any power whatever; but in
the last case, the possession shall not be considered as acquired until the person in whose
name the act of possession was executed has ratified the same, without prejudice to the
juridical consequences of negotiorum gestio in a proper case. (439a)

Negotiorum gestio is the voluntary management of the property or affairs of another without
the knowledge and consent of the latter.
 Title VI
USUFRUCT

CHAPTER 1
Usufruct in General

Article 562. 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.

In simple terms, it is the right to use another's property while maintaining it’s use and
substance.

ARTICLE 566. The usufructuary shall be entitled to all the natural, industrial and civil
fruits of the property in usufruct. With respect to hidden treasure which may be found
on the land or tenement, he shall be considered a stranger. (471)

Natural fruits are the spontaneous products of the soil, and the young and other products of
animals.
Examples: all trees and plants on lands produced without the intervention of human labor.

Industrial fruits are those produced by lands of any kind through cultivation or labor.
Examples: Vegetables and all products of lands brought about by reason of human labor.

Civil fruits on the other hand, refers to those derived by virtue of a juridical relation.
Examples: Rent of buildings
 Title VII
EASEMENT OF SERVITUDES

CHAPTER 1
Easements in General

SECTION 1
Different Kinds of Easements

Article 613. An easement or servitude is an encumbrance imposed upon an immovable

for the benefit of another immovable belonging to a different owner.

The immovable in favor of which the easement is established is called the dominant
estate; that which is subject thereto, the servient estate. (530)

The article defines a servitude as a burden placed on one property (the servient estate) for
the benefit of another property (the dominant estate) owned by a different person.

Article 649. The owner, or any person who by virtue of a real right may cultivate or use
any immovable, which is 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 neighbouring estates, after payment of the proper indemnity.

Should this easement be established in such a manner that its use may be continuous for
all the needs of the dominant estate, establishing a permanent passage, the indemnity
shall consist of the value of the land occupied and the amount of the damage caused to
the servient estate.

In case the right of way is limited to the necessary passage for the cultivation of the
estate surrounded by others and for the gathering of its crops through the servient
estate without a permanent way, the indemnity shall consist in the payment of the
damage caused by such encumbrance.

This easement is not compulsory if the isolation of the immovable is due to the
proprietor's own acts. (564a)

The article states that if a property is surrounded by others and lacks access to a public road,
the owner has the right to request a right of way through neighbouring properties, provided
they pay compensation. The amount of compensation depends on whether the right of way is
permanent for all the needs of the property or limited to the necessary passage for
cultivation, and it is not required if the property's isolation is due to the owner's actions.
Title IX - REGISTRY OF PROPERTY

Article 708. The Registry of Property has for its object the inscription or annotation of
acts and contracts relating to the ownership and other rights over immovable property.
(605)

Specifies that the Registry of Property is intended for recording transactions and agreements
concerning immovable property.

Article 709. The titles of ownership, or of other rights over immovable property, which
are not duly inscribed or annotated in the Registry of Property shall not prejudice third
persons. (606)

The article establishes that titles of ownership or other rights related to immovable property
that are not properly recorded in the Registry of Property will not have legal priority over the
claims of third parties.

BOOK III
DIFFERENT MODES OF ACQUIRING OWNERSHIP

Title V
PRESCRIPTION

CHAPTER 1
General Provisions

Article 1106. By prescription, one acquires ownership and other real rights through the
lapse of time in the manner and under the conditions laid down by law.

In the same way, rights and conditions are lost by prescription. (1930a)

The article explains that ownership and other real rights can be acquired or lost over time
through prescription as stipulated by the law.
 Title VI
SALE

CHAPTER 4
Obligations of the Vendor

SECTION 2
Delivery of the Thing Sold

Article 1542. In the sale of real estate, made for a lump sum and not at the rate of a
certain sum for a unit of measure or number, there shall be no increase or decrease of
the price, although there be a greater or less area or number than that stated in the
contract.

The same rule shall be applied when two or more immovables as sold for a single price;
but if, besides mentioning the boundaries, which is indispensable in every conveyance of
real estate, its area or number should be designated in the contract, the vendor shall be
bound to deliver all that is included within said boundaries, even when it exceeds the
area or number specified in the contract; and, should he not be able to do so, he shall
suffer a reduction in the price, in proportion to what is lacking in the area or number,
unless the contract is rescinded because the vendee does not accede to the failure to
deliver what has been stipulated. (1471)

The article pertains to the sale of real estate for a fixed total price, and it establishes that if
the actual area or number of properties differs from what is specified in the contract, the
price remains unchanged. However, if the contract specifies both boundaries and the area or
number, the seller must deliver everything within the boundaries, and any deficiency could
lead to a price reduction unless the buyer agrees to the shortfall or chooses to rescind the
contract.
References:

Arellano Law Foundation. (n.d.). R.A. 386. The LAWPHiL Project. Retrieved October 19,
2023, from https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html

BOOK II PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS. (2015, June).

WordPress.com. Retrieved October 19, 2023, from
https://isaiah101.files.wordpress.com/2015/06/civil-code-volume-ii-
property.pdf?fbclid=IwAR08WODzMc7xjKBHx9R0XusV1xdoBVgs2eutUIMM8OxkWHn
HeE0nv16AB2M.