Atty. Lopez-Rosario Notes on Property UST-Civil-Law

8/14/2019 Atty. Lopez-Rosario Notes on Property UST-Civil-Law

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Property Notes A.Y. 2011 2012 Atty. Lopez Rosario Lectures

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Art. 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

Art. 415. The following are immovable property:

(1) Land, buildings, roads and constructions of all kinds

adhered to the soil;

(2) Trees, plants, and growing fruits, while they are

attached to the land or form an integral part of an

immovable;

(3) Everything attached to an immovable in a fixed manner,

in such a way that it cannot be separated therefrom

without breaking the material or deterioration of the

object;

(4) Statues, reliefs, paintings or other objects for use or

ornamentation, placed in buildings or on lands by the

owner of the immovable in such a manner that it reveals

the intention to attach them permanently to the

tenements;

(5) Machinery, receptacles, instruments or implements

intended by the owner of the tenement for an industry or

works which may be carried on in a building or on a piece

of land, and which tend directly to meet the needs of the

said industry or works;

(6) Animal houses, pigeon-houses, beehives, fish ponds or

breeding places of similar nature, in case their owner has

placed them or preserves them with the intention to have

them permanently attached to the land, and forming a

permanent part of it; the animals in these places are

included;

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

(8) Mines, quarries, and slag dumps, while the matter

thereof forms part of the bed, and waters either running or

stagnant;

(9) Docks and structures which, though floating, are

intended by their nature and object to remain at a fixed

place on a river, lake, or coast; (10) Contracts for public

works, and servitudes and other real rights over immovable

property

I. DEFINITION OF TERMS

Property Thing

Property - any physical or real, juridical, andlegal entity of being capable of becoming the

subject matter or objective terminus of a juridicalrelation (Sanchez Roman)- Object for a validity of a contract.- Can be appropriated

Thing- any object that exists and is capable ofsatisfying human needs.

-includes both objects that are alreadypossessed or owned and those that aresusceptible of appropriation

REQUISITES OF PROPERTY (U-S-A)1. Utility -2. Substantivity - has a separate or autonomousexistence3. Appropriability

*not all kinds of things are property, all kinds ofproperty are things

Examples:1. Kidney of a human being, thing or property?!?

We must determine first W/N it can besold. If it is a property, no problem because itcan be appropriated. If it is a thing, the validity ofthe sale can be attacked because the object ofthe sale is outside the commerce of men.

* outside the commerce of man , illegal* health and sanitation purpose*can only be donated to Filipinos

2. Corpse (usually found in med school)- thing, not susceptible of appropriation- in reality there might be illegal

transactions, legally speaking it is not subject tosale(connect to OBLICON, elements of a validcontract: consent, object- within commerce ofman, cause)

Movable Immovable

Movable (Personal Property) - which can betransferred from one place to another

Immovable (Real Property) - which cannot betransferred from place to place withoutdestruction to itself

*ART. 415 - enumeration of immovableproperties.


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Juridical Classification of Real Properties(N-I-D-A)

1. by Nature - by itself cannot be moved fromone place to another

*if you are reading the book of JusticeParas, you may cite par.1 and par.8 of Art. 415,but according to Mam LR, land is the only realproperty by nature. Literal meaning of nature

*Buildings - incorporated to the soil, byits nature it is a personal property, but themoment the removal of the building causesinjury to the soil, it will be a real property byincorporation

2. by Incorporation - must be substantial andnot provisional.

- separation from the immovable maycause damage or deterioration.

*trees and plants are real property by

incorporation.

3. by Destination - should be placed by theowner

4. by Analogy - contracts for public works andservitudes and other real rights over immovableproperty.

*explanation*By nature - no problem, very easy, only needscommon sense

By Analogy - no problem also

By Incorporation - REMEMBER:1. W/N it will cause damage when removed?2. Is the person who introduced it important?

- NO! What is important is the moment itis detached, it will cause damage or injury.

Examples:

a. fertilizer - already applied to the soil, difficultto remove it without damage or injury to the soil,hence it is a real property by incorporation. If still

in bags, personal property!

b. plants - still in plastic bag = personal property,if it is planted, you cannot remove it withoutcausing damage to soil, regardless of whoplanted the damned plant!

c. tiles - it depends, real by incorporation thosefixed in the bathroom or flooring, if still in

hardware or those removed by Mayor Lim inAvenida = personal property.

d. in a contract of lease - as a G.R., propertiesplaced by the tenant/lessee are personalproperty, XPN if the tenant is the agent of theowner.

If informal settler (squatter for thepolitically incorrect), does not have the authority.Properties will never be personal, it will remainreal properties.

By Destination - 2 KINDS:

1. machineries/ equipments -important who placed the property, if it isnecessary

Example:

a. chair in classroom - Is it the owner whoplaced it there? How relevant is a chair to theindustry (education)? Have you been to aclassroom without a chair?

b. trash can - Can we still conduct classes eve ifwe do not have trash can?

c. Vendo Machine - Is it relevant to oureducation?

2. ornaments - the person whointroduced it is important, must be the owner.

The intention to attach the property permanentlyis also important.

Example:a. Statue of St. Raymond and Mother Perpetual- Is it important? OPKORS! It is an ornament,UST is a catholic school, intention of attaching itpermanently without being transferred.

Elements of Real Property by Destination1. owner introduced it2. necessary to the trade or industry, or even ifnot necessary there is the intention of attaching

the property permanently


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CASES

Ladera vs. Hodges (buildings areimmovable)

buildings and constructions are regarded as

mere accesories to the land (following theRoman maxim omne quod solo inaedificatursolo credit) i t is logical that said accessor iessho uld partake of the nature of the principal

th ing, which is the land forming, as they do,but a single object (res) with it in contemplationof law. - Justice JBL Reyes

Manalang vs. Ofilada

a building of mixed materials may be thesubject of a chattel mortgage, in which case it isconsidered as between the parties as personalproperty

The SC hols that the mere fact that a housewas the subject of a chatte l mortgage and

was cons idered as personal property by the

part ies do es not m ake said ho use personal

property for purpos es of the not ice to be

given for i ts sale at publ ic auct ion.The houseof mixed materials levied upon on execution,although subject of a contract of chattelmortgage between the owner and a third person,is real property within the purview of Rule 39,section 16, of the Rules of Court as it hasbecome a permanent fixture on the land, which

is real property.

Valdez vs. Altagracia

machinery placed on property by a tenantdoes not become immobi l ized; when,

how ever, a tenant places it there pursu ant to

contract that i t shal l belong to the owner, i t

becomes imm obi l ized as to that tenant and

his assigns wi th n ot ice, a l though i t does not

become so as to cred i tors not having legal

notice of the lease

Davao Saw Mills vs. Castillo

It is machinery which is involved; moreover,machinery not intended by the owner of anybuilding or land for use in connection therewith,but intended by a lessee for use in a buildingerected on the land by the latter to be returnedto the lessee on the expiration or abandonmentof the lease. i t was held that machinery whichis movable in i ts nature only becomes

immo bi l ized when placed in a plant by the

owner of the property or plant , but not when

so placed by a tenant, a usufruc tuary, or any

person having only a temporary r ight , unless

such person acted as the agent of the

owner.

McMicking vs. Banco Espanol

A ship is a personal property. It was the subjectof a CHATTEL mortgage in this case

Manese vs. Velasco

Foreshore Lands - strip of land that liesbetween the high and low water marks and isalternatively wet and dry according to the flow ofthe tides. It is that part of the land adjacent tothe sea, which is alternately covered and left dryby the ordinary flow of tides. It is part of the

alienable land of the public domain and may bedisposed of only by lease and not otherwise.Foreshore land remains part of the publicdomain and is outside the commerce of man. Itis not capable of private appropriation

In all act ions for the revers ion to theGovernment of lands of the publ ic domain or

improvements th ereon, the Republ ic of the

Phi l ippines is the real party in interest. The

act ion shal l be inst i tu ted by the Sol ic i tor

General or the off ic er acting in his st ead, in

behalf of the Republ ic of the Phi l ippines.

Moreover, such act ion does no t prescr ibe.Prescr ip t ion and laches wi l l not bar act ions

f i led by the State to recover i ts prop erty

acqui red through fraud by pr ivate

individuals.

Laurel vs. Abrogar

in making the international phone calls, thehuman voice is converted into electricalimpulses or electric current which aretransmitted to the party called. A telephone call,therefore, is electrical energy. It was also held

in the assailed Decision that intangibleprop erty such as electr ical energy is capableof appropr ia t ion because i t may b e taken and

carr ied away. Electr ici ty is personal property

und er Article 416 (3) of the Civi l Code, which

enumerates forces of nature which arebrought under control by science.


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Art. 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.

Art. 418. Movable property is either consumable or

nonconsumable. 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.

Movables = Personal Property

* If the property is not enumerated under Art.415, it is personal property

1. BY NATURE -

2. BY ANALOGY

Q: Why do we need to classify property asreal or personal? Why is it important?A: Because different provisions of law deals withdifferent kinds of property. You dont believeme? Here are some examples:

a) Credit TransactionsIf you want to obtain loan and you give yourhouse to creditor as collateral, that is a REALESTATE mortgage. If you give your car ascollateral, that is CHATTEL mortgage.

b) Criminal LawThe RPC defines theft as the unlawful taking ofpersonal property with intent to gain. If its realproperty, it can be unlawful detainer orusurpation.(still not convinced?!? Eto pa isa)

c) TaxationTax on your land is REAL ESTATE tax,AMILYAR.

CASES

Bicerra vs. Teneza

A demolished or dismantled house ceases to bereal property, it becomes a personal property.

Mindanao Bus. Co. Vs. City Assessor

The SC held in this case that for tax purposesespecially real estate tax, property which areonly INCIDENTAL to the business that are in thebuilding need not be included in the taxassessment. (told you!!!) These personalproperties which are NOT necessary to thecourse of the business, meaning they can stillconduct the business without them, should beconsidered as immobilized by destination.

Involuntary insolvency of Strochecker vs.

Ramirez

A persons !/2 interest in a business is personalproperty. They may be the subject of amortgage, capable of appropriation and most ofall, it is not included in the enumeration.

Sibal vs. Valdez

For purposes of attachment, execution and theChattel Mortgage Law, growing crops orungathered products or fruits have the nature ofpersonal property.

Fungible Consummable

Consummable - cannot be used in a mannerappropriate to their nature without being

consumed.

Mam LR: What do you mean without beingconsumed? In Philosophy, it is a number onerule that you do not use the rootword in thedefinition. Clearly, our legislators are notphilosophers(very bright talaga si Mam! So in light of this BSdefinition given by the law, she formulated aformula (haha!) to determine consummability.)

Art. 416. The following things are deemed to be personal

property:

(1) Those movables susceptible of appropriation

which are not included in the preceding article;

(2) Real property which by any special provision

of law is considered as personal property;

(3) Forces of nature which are brought under

control by science; and

(4) In general, all things which can be

transported from place to place withoutimpairment of the real property to which they

are fixed.


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In order to determine consummability:

1. Is there a reduction or decrease in the thequantity?

- if you borrow the sign pen of yourclassmate because you are very burara youdont even have a pen, look at the ink, there is adecrease in the quantity! Unjust enrichment tookplace! Pay your classmate because you usedthe ink! UNJUST ENRICHMNET!

2. Is there a physical destruction of theproperty?

- Example talaga ni Mam yun kandila atposporo, but I have another example YOSI!

3. Is there deterioration of the thing?- If you are washing your clothes, look at

the water, not as clear as before? Well, that is

the deterioration we are talking about. Youcannot use the same water to drink or to take abath unless you have a non-functioningmind

Fungible- property that can be replaced byanother property of the same kind or quality.

- replaceable by equal quantity either byagreement or by nature

Q: What kind of contract will require fungiblegoods?

A: Contract of Loan! In credit transactions(mutuum), obligation of the debtor to return thevalue of the money he borrowed, but not thesame money.

Q. What kind of goods in a commodatum?A. Non-consumable. In a commodatum, thebailor delivers to the bailee the exact thing thatthe bailee left in his possession.

Property of Public Dominion Patrimonial Property

Property Based on Ownership:

1. Private Ownership - owned by privatepersons, whether juridical or natural. Can beacquired by acquisitive prescription.*registered land - not subject to prescription.

*title - notice to the whole world, protects theowner of the property, binds 3

rd persons,

ownership must be respected

2. Public Properties -*public dominion - inalienable, owned by

the government, regalia doctrine, outside thecommerce of men.

*patrimonial porperties - owned by thestate in its private capacity, proprietary, may bealienated

Property for Public Use Propertyfor Public Service

Distinction:

PUBLIC USE PUBLIC SERVICE

- used indiscriminatelyby anyone, regardlessof age, sex or racebecause evenforeigners may usethem.EXAMPLES:Luneta ParkStreetsBridgesRoads

- intended forauthorized personsonly.EXAMPLESLibingan ng mgaBayaniPGHCamp Crame

CASES

Harty vs. Mun. of Victoria

Plaza of the Church is property of publicDominion, therefore it cannot be alienated, sold,in short, it is outside the commerce of men.

Ocsio vs. CA

The Supreme Court held that PatrimonialProperty may be acquired through prescription.A religious corporation is a juridical person, itcan also acquire property

Heirs of Sps. Palanca vs. Republic

The subject parcel of land in this case is forestland, being a property of public dominion cannotbe owned by private individuals.


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Province of Camarines Sur vs. CA

As regards properties for public use, theprinciple is the same: property for public use canbe used by everybody, even by strangers oraliens, in accordance with its nature; but nobodycan exercise over it the rights of a private owner.

CLASSIFICATION OF THINGS*RES - latin word for property

Res Nullius- belongs to no one, not yetappropriated but susceptible to appropriation.

- Look in the Botanical Garden of UST,you will see butterflies, salagubang, spidersetc If you want to get these poor insects andthen a Dominican Father will reprimand you, Tellhim Father, these are res nullius, nobody ownsthem.

Res Communes- belonging toeveryone

- air, sun moon

Res Derelicta - abandoned propertywith the intention of no longer owningthem

- garbage

Res Alicujus - tangible or intangiblethings which are owned privately, eitherin a collective or individual capacity,

belonging to someone

Builder/Possessor in Good Faith Builder/Possessor in Bad Faith

*Good Faith:In the Family Code - Authority of

Solemnizing Officer must be mistake in fact notmistake in law.

In Property - the belief that the personfrom whom he received the thing was its ownerand could transfer valid title thereto.

Builder in Good Faith - builder is considered ingood faith if he thought that the land was his.Builder is also considered in good faith if heconstructed on the land of another with theconsent of that landowner.

*Bad Faith:- characterized by malice, dishonesty

and unlawful intent

Builder in Bad Faith- a person who constructsimprovements upon a parcel of land which hebelieves as not his or that he is aware that thereexists in his title or mode of acquisition a flawwhich invalidates it or that knowing that he is notthe owner of said land he undertook constructionthereon without the knowledge and consent ofthe owner thereof.

CASES

Premier Bank vs. CA

A purchaser of a property cannot be ingood faith where the title thereof shows that it

was reconstitutedBanks, being in the business of

extending loans secured by real estatemortgage, is familiar with rules on landregistration , and as such, it is expected toexercise more care and prudence than privateindividuals in their dealing with registered landthat Premiere Bank accepted in mortgage theproperty in question notwithstanding theexistence of structures on the property andwhich were in actual, visible and publicpossession of a person other that the mortgagor,constitutes gross negligence amounting to bad

faith.

Cua vs. Vargas

Petitioner derived his title from theExtra-Judicial Settlement Among Heirs and hewas very much aware that not all of the heirsparticipated therein as it was evident on the faceof the document itself. Because the property hadnot yet been partitioned in accordance with theRules of Court, no particular portion of theproperty could have been identified as yet anddelineated as the object of the sale. This is

because alienation made by respondents co-heirs was limited to the portion which may beallotted to them in the division, upon terminationof the co-ownership. Despite this glaring fact,and over the protests orf respondents, petitionerstill constructed improvements on the property.For this reason, his claim of good faith lackscredence.


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Real Right Personal Right

Real Right- one that confers upon its holder anautonomous power to derive directly from anappropriate thing certain economic advantages,independently of whoever should be the

possessor of the thing.

Personal Right - power belonging in oneperson in demand of another as a definitepassive subject the fulfillment of a prestation togive, to do or not to do.

Q: When you say that a Real Right isenforceable against the whole world, does itmean that you have to file an action againsteverybody? Why enforceable against thewhole world?A: No. A real right is the right of pursuit, it followsyou wherever you go, because regardless ofwho is the owner, the right must be respected.

Q: Does it follow that when we say real rightit pertains to real property and if it is apersonal right it pertains to personalproperty?A: NO! ABSOLUTELY WRONG!

Q: What is Succession?A: it is a mode of acquiring ownership overproperty, rights and obligations.

Q: If a Creditor dies, may the heirs collect

from the debtor?A: Yes, rights are transmissible.

Q. Give an example of a real right inconnection with succession.A. Right of ownership.

Q. Is the right to collect rentals a real right?Why?A: Because the rentals emanates from theproperty.

Q. If for example a certain person was given

a scholarship by the university and wasgiven a grant (money), then afterwards thisperson dies, can the university get back thegrant? Is the right to the scholarship granttransmissible to the heirs?A. YES! The university can get back the grant.The grant given is a PERSONAL RIGHT. Theheirs do not acquire any right over thescholarship money. It is personal to thedeceased.

REMEMBER:Real Right = Action in REM

it is attached to the property whoeverthe owner may be. The court willproceed to try the case even without

defendant. E.G. In judicial foreclosure, the court will

continue the proceedings even withoutthe presence of the owner. You do notneed the owner to foreclose theproperty.

Personal Right = Action in PERSONAM

The right is attached to the person. Ifperson dies, no more right. It ceasesupon the death of the person

The court will not acquire jurisdictionunless the person submits himselfbefore it.

GEN. RULE. Right to Lease & Right to Usufructare REAL RIGHTS.XPN: it may be stipulated in the contract thatwhen the lessee or the usufruactuary diesbefore the end of the lease or usufruct period,the owner of the property may pre-terminate thecontract, hence the heirs of the lessee orusufruactury must evacuate the property.

Necessary Expenses UsefulExpenses Ornamental/Luxury

Expenses

Necessary Expenses - refer to those expenseswhich without it the thing will physicallydeteriorate or perish.

REMEMBER: In all contracts the owner has theobligation to shoulder the NECESSARYexpense because he is the one who will benefitfrom it. Even though a temporary holder of theproperty will provide this without the ownersconsent, still need to reimburse.

Examples:1. services to clean the air-con2. for wooden floors - solignum, floorwax3. bread and canned goods - preservatives

Useful Expenses - refer to those whichincrease the productivity or raise the value of thething.REMEMBER: In all contracts, CONSENT fromthe owner is necessary for the owner to be


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responsible for the necessary expense,otherwise the one who introduced the usefulexpense will shoulder the expenses incurred.

Example:In Hotel Rooms, the greater number ofamenities, the more expensive it is.

Ornamental/Luxury Expenses - refer to thosewhich add to the value of the thing but is neitheressential to the preservation nor useful toanybody in general.

REMEMBER: In all contracts, the luxuryexpense is ALWAYS shouldered by the one whointroduced it. No right to demand reimbursementfrom the owner.

*In contracts you usually see:

1. Ordinary expense- due to the ordinary wearand tear, shouldered by the person enjoying thepossession of the property.e.g. light bulbs, gasket in faucet

2. Extraordinary expense - equivalent tonecessary expense, owner will be responsiblee.g. leaking roof

TAKE NOTE: WHO SHOULD BERESPONSIBLE FOR DIFFERENT KINDS OFEXPENSES IN CONTRACTS THAT INVOLVESTEMPORARY TRANSFER OF

OWNERSHIP?!?

Ownership Possession

OWNERSHIP- may be exercised over things orright (Art. 427)

- The independent and general rightof a person to control a thingparticularly in his possession,enjoyment, disposition and recoverysubject to those established by law

- no restrictions except thoseimposed by law or private persons

- right to dispose, enjoy, recover thething without further limitations

POSSESSION - simply a right of an owner

-Kinds of Ownership-

1. Full ownership- includes all the rights of anowner2. Naked ownership - right to use, fruits havebeen denied3. Sole ownership- vested in only one person4. Co-ownership- 2 or more owners

-6 Rights of an Owner-

1.Jus possidendi- to possess

Q: What kind of contract gives the right topossess but not all the other rights?A: Contract of Deposit - safekeeping of theproperty, baggage counter

2. Jus fruendi- to enjoy the fruits

Kinds of Fruits:Natural fruits - young of animals, plants

which grew without the intervention of man

Industrial Fruits - produced by lands ofany kind through cultivation or labor

Civil fruits - rents of buildings, the priceof leases of lands and other property and theamount of perpetual or life annuities or othersimilar income

Q: What if the animal was from artificial

insemination? What about cloned animals?What kind of fruit? Is it still a natural fruit, ordoes it become an industrial fruit?A: 2 Answers:

1. In StatCon - if the law is clear(unambiguous), there is no need forinterpretation, meaning hayop pa rin naman yunso it will remain hayop forevermore, meaningstill a natural fruit.

2. Consider the time when our civil codewas drafted, 1950! At that time our legislatorsprobably did not imagine that artificialinsemination or cloning would be possible, so ifthere is intervention of man already, may beconsidered an industrial fruit.(Mam LR said that this is just something to thinkabout, it is not yet asked in the Bar Exam, kapagnaging examiner daw siya itatanong niya daw sobe ready with a very good argument! :P )


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Art. 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.

Art. 432. The owner of a thing has no right to

prohibit the interference of another with the same,

if the interference is necessary to avert an imminent

danger and the threatened damage, compared to

the damage arising to the owner from the

interference, is much greater. The owner may

demand from the person benefited indemnity for

the damage to him.

3. jus utendi- to use

Q: What kind of contract gives the right touse even if you are not the owner of theproperty?A: Contract of Commodatum

4. jus abutendi- to abuse, use the property notin accordance with its proper purpose, only theowner is given the right.

5. jus disponendi - to dispose (consume,Encumber, Alienate), transfer ownership

6. jus vindicandi - to recover, there must beactual usurpation

Possession - only a right of the ownerOwnership - all encompassing

Contract of Lease1. Right to possess2. Right to use3. If stipulated, right to enjoy

- lessee can act as lessor to a3

rd person (sublease), but the right to

dispose still remains with the originalowner

- new Rent Control Law, theremust be a written consent from the owner thatthe lessee may sub-lease the property.

Mutuum (simple load) - Transfer of ownership

upon delivery of the thingAll Rights = Money / Fungible

- Returned bills no longer the originalbills

Contract of Usufruct1. Right to possess2. Right to use3. Right to enjoy the fruits

Q: What is the difference between a Contractof Lease and a Contract of Usufruct?A: A contract of lease is always onerous, while a

contract of usufruct may be gratuitous oronerous. There is nothing in the provisions onusufruct that provides for rentals

Doctrine of Self-Help

Q: In the Revised Penal Code, what is theequivalent of the Doctrine of Self Help?A: Art. 11 of the RPC - Self Defense.Requisites:

1. lack of provocation on the part of theoffender2. there must be an imminent danger

3. the offender used reasonable meansto repel the danger, threat or unlawfulact4. defense of ones self, relatives,stranger and PROPERTY

Q: What is the connection between self-helpand self-defense?A: Both uses force as may be reasonablynecessary to repel or prevent any actual orthreatened unlawful act.

*The usurpation must be actual or

threatened. Cannot be when the usurpationalready took place.

Doctrine of Incomplete Privilege

Q: Why is it called incomplete privilege?A: Because the owner does not have theabsolute right, interference is necessary toprevent greater damage to adjoining properties.

State of necessity - in criminal law consideredas a justifying circumstance.

- to prevent greater evil

Basis of Benefit:

Art. 23 (Civil Code) - even when an act or eventcausing damage to anothers property was notdue to fault / negligence of defendant, the onewho was benefited will be liable.


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Examples:1. House on Fire. To prevent it from spreading,the house next to it will be destroyed

Liable - pro-rata proportionately

2. Remember Ondoy? The authorities releasedwater to prevent damage to dam.

2. People inside elevator then there was a black-out. The elevator will be destroyed.

Limitations to Ones Ownership

Q: From Criminal Law, lets now go toConstitutional Law, what are the 3 inherentpowers of the State?A: Police Power, Eminent Domain, Taxation

Gen.Rule: Art. 437 - The owner of a parcel ofland is the owner of its surface and of everythingunder it , and he can construct thereon anyworks or make any plantations and excavationswhich he may deem proper

XPNs:1. without detriment to servitudes

2. subject to special laws and ordinances3. aerial navigation

Owner cannot use his property in a mannerthat will injure the rights of 3

rdpersons.

Q: In taxation, how can you say that it limitsones property?A: Example:

1. salary - withholding taxesDoctors and LAWYERS are being run

after by BIR because they are self-employed.2. real property - failure to pay real

estate tax can give government the privilege toforeclose your property.foreclose - sell your property at auction3. when you eat burger - you are being chargedvalue-added tax4. Family Home - Art. 155 Fc

G.R. exempt from execution, forced saleor attachmentXPN 1) non-payment of taxes

2) Etc.

Eminent Domain- taking of private property forpublic use upon just compensation, more of aforced acquisition.

Forced sale, compelled by thegovernment, whether or not you want to sellyour property.

Requisites:1. Exercised by competent authority2. Expropriation for public use3. Payment of just compensation4. Observance of due process - Rule 67

*property is preserved *devoted to public use.Reasonable necessity is required not absolutenecessity to expropriate a property.Example: C-3

- Many houses were removed bypower of eminent domain

- There was an act of preservation

Just compensation - fair and full equivalent ofthe loss sustained, determined by the court. Ifthe government does not pay a suit may bebrought against the auditor general.

Police Power - destruction of property for thebenefit of the public in general.

-No just compensationExample: Act of MMDA

- Generally, does not have police power,administrative in nature

-it has the power to enforce laws in

accordance with a valid law implementing it- If public expediency calls for it and

clear & present danger rule

Limitations imposed by 3rd

persons

*enjoyment of property is limited if it willprejudice the rights of 3

rdpersons.

*even if you are the owner, you do not haveabsolute enjoyment, think of others

Restrictions by the State:

Q: Can you bury a corpse in your backyard?A:No, this is not allowed because of sanitationpurposes.

Art. 431. The owner of a thing cannot make use thereof

in such manner as to injure the rights of a third person.


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Art. 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 of the arts,

the State may acquire them at their just price, which

shall be divided in conformity with the rule stated.

Art. 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.

Q. Can you dig a very deep hole forswimming pool in your backyard w/outpermit from Eng. Dept.?A. No. if you do that again & again, it couldaffect adjacent land - Art. 431 (rights of 3rdPerson)

Q. Can you make a CR with a big window?A. No. Even though according to the law you arethe owner above & underneath, take note thatthere are restrictions.

Restrictions made by private persons:Example: In subdivisions - there are restrictionsimposed by developer like in the style or designof the house, there are also restrictions in thedisposability of the property.

II. Hidden Treasure

-any hidden & unknown deposit of money,jewelry or other precious objects, the lawfulowner of which does not appear-discovered by chance

By chance - good luck

- Doesnt preclude a finder whopurposely hunt for hidden treasure

Gen.Rule. - If owner finder, totally belongs tothe owner of land, bldg. / property

XPNs.Finder different from owner, entitled to 1. discovered in property of another2. discovery by chance

3. not trespasser or agent of owner

* The state may in the interest of science or thearts, acquire such hidden treasure at a just priceto be as allocated as G.R. * XPNS.* trespasser - not entitled to get any sharebecause he cannot be allowed to benefit from hiunlawful act.* Right of Finder employed to look for treasure:no share in the treasure unless agreed upon. Hecan only ask for his wage.*If finder is married, his share in the treasurebelongs to the absolute community property.(Art. 117 par. 4 FC)

ELEMENTS OF HIDDEN TREASURE1) hidden/unknown deposit of money, jewelry /other precious objects -> same class as moneyor jewelry2) Lawful owner is unknown

3) Discovered by chance4) Discovered / finder must not be trespasser

Q. Maria (labandera) of Juan (owner) , afterlaundry, clean backyard, discovered anobject, turned out to be jewelry. HiddenTreasure? Right of Maria?A. Yes. Look at elements, Maria not atrespasser, 50%.

Q. Owner hired services of a group of men tofind hidden treasure. If there is hiddentreasure, who owns?

A. It depends. If there is a stipulation, finder isentitled to 50%, if no agreement not entitled.Finder is only entitled to be paid for services.

Q. Bills coming from bank, buried,subsequently found. Hidden Treasure?A: Bills - has serial number. Can be traced,identity known. Not HT

Q. Usufructuary (lessee) finds HiddenTreasure. Who owns?A. Although the usufructuary is in actualpossession of property, still he is NOT the

owner, only entitled to 50% other 50% to owner.


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Art. 441. To the owner belongs:

(1) The natural fruits;

(2) The industrial fruits;

(3) The civil fruits.

Art. 442. Natural fruits are the spontaneous products of the

soil, and the young and other products of animals.

Industrial fruits are those produced by lands of any kind

through cultivation or labor.

Civil fruits are the rents of buildings, the price of leases of

lands and other property and the amount of perpetual or life

annuities or other similar income.

Q. Yamashita Treasure?A. P.D. 172 - 25% granted to finder - 75% - govt

In relation to ART. 719 - finders keeper- Whoever finds a property not a

treasure has the obligation tosurrender it to proper authority. Afterposting of found object and 6months will pass and no ownerappears, the finder of the object willbe entitled to it. If owner appears,finder is entitled to 1/10 of the valueof the object.

(Some unanswered questions)

1. How do you reconcile Art. 719 with hiddentreasure?2. What does the law mean when it provides thatthe lawful owner must be unknown?

3. When will you apply Art.719 and when willyou apply the provision on Hidden Treasure?

III. ACCESSION

Accession Accessory

Accession- not a mode of acquiring ownership(book 3 of NCC enumerates the modes ofacquiring ownership, accession not include)

-simply an extension of ownership overa thing to whatever is incorporated thereto

naturally or artificially (with or without humanlabor)

- Can happen both in real and personalproperty

- fruits of or additions to improvementsupon the principalRemember ( API)

Attached, Produced, Incorporated

Note: Accession exists if the incorporation issuch that separation would seriouslydamage either thing or diminish its value

Accessories - ornaments to add beauty andmay be removed without causing injuryExample : Ladies - those attached from head tofoot are accessories- lahat ng pwedeng mapagsabitan /

matusukanReason: before you sleep, you can simplyremove them.

- things joined to, or included with the principalfor the latters embellishment, better use orcompletion.

Note: While accessions are not necessary tothe principal thing, the accessory and theprincipal MUST go together.

Kinds of Accession

1. Accession Discreta - right to the fruits

Q: To whom will the fruits belong?A: Gen.Rule:

1. If you are the Owner of the property,you are entitled to the fruits of theproperty

2. Possessor in good faith, entitled to thefruits

3. Others who are still entitled to fruits:a. usufructuary-

Right to possessRight to useRight to enjoy

b. antichresis creditor

Antichresis - kind of securitywhere in what is used in thesecurity is fruits of the propertyto answer for the interest in theloan of a thing.

- If no interest agreed upon, thefruits will be used to answer forthe principal obligation

c. lessee - if there is no expressprohibition against sublease, isentitled to the fruits.

2. Accession Continua - by external forces(building, alluvium, etc.)


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With Respect to REAL PROPERTY

2.1 Accession Industrial- by the workof man (building, planting, sowing)

- Involves a person who throughbuilding, planting or sowing, introduces animprovement on the property.

3 Categories of Builder/Planter/Sower1. Landowner is the B/P/S, who is different fromthe owner of the material. (2 Personalities)

- Land owner B/P/S- OM (owner of the material)

2. Landowner is different from the B/P/S who isthe owner of the material. (2 Personalities)

- Land owner- B/P/S OM

3. Landowner different from BPS, different fromowner of the material. (3 personalities)

- landowner- B/P/S- OM

Guidelines:1) Is there really accession?- Remember the definition of Accession,whatever is Attached, Produced or Incorporated(A-P-I)2) Accessory follows the principal- How will you apply?G.R. - owner of the real property w/n good faithor bad faith has the right to own whatever he

planted, built or sowed in the property.Reason: Because of the principle that accessoryfollows the principalExample:

a) between Land vs.building/planted/sowed land = principalWhatever is built, planted or sown = accessoryReason: because the land can exist by itselfw/o any building or plant bldg. /plant cannotexist w/out being attached to the land

b) hanging plant (on air)?*does not applyGen. Rule - In BPS, whatever is planted on

the soil should be attached to the land*Tignan ang definition!!! wag tamad

3) Whoever is the owner of the principal isthe owner of the accessory.

4) Application of the principle of unjustenrichment

*whatever has been acquired, it is the obligationof the owner of the real property to pay theproper indemnity.* It is the right of the owner of the land to:-acquire whatever is planted-acquire whatever is buildE.G. Juan b,p,s in good faith. He planted /constructed his house on a real property hethought was his.Good Faith : (1) b,p,s believes that real propertybelongs to him

(2) believes that title over theproperty does not have any defect/flaw.

* XPN to the 1stprinciple.

*depending on the owner of theproperty, B,P,S has the right to acquire the land

*PROVIDED, that the value of the landis not higher than the value of improvement ofwhat has been built, planted or sowed.Reason:

(a) If owner does not like the property he cansell to b,p,s provided that the value of thereal property is not higher than theimprovements(b) If the value of the land is higher than theimprovements, the agreement would be acontract of lease.

5) Bad Faith - landowner; b,p,s; owner ofmaterials whoever it is always liable fordamages

a. Owner of real property in bad faith

He will acquire whatever is built/sown

applying principle that accessory followsthe principal BUT he has to pay theproper indemnity for the value of whathas been built, planted or sown but inaddition to that being in Bad faith, he isliable for damages.b. B,P,S (bad faith)

liable for damages

In relation to necessary expenses-the B,P,S (whether in good faith or bad

faith) , has the right to demand forreimbursement of whatever necessary

expenses he incurred from the owner of the realproperty.-B,P,S is given the right of retention in

relation to accession industrial


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*right of security / right of retention-given to the B,P,S for purposes of

serving as a guarantee that he can retain theproperty as long as the owner of that property(real) has not given the amount that he (b,p,s)has incurred for the necessary & useful expenseReason: so that the B,P,S can get an assurancethat the owner will reimburse him for whatevernecessary expenses he has incurred.

In relation to useful expense*good faith = can demand

reimbursement from owner of property*bad faith = not demandable

CASES

Ballatan vs. CA

The right to choose between appropriating theimprovement or selling the land on which theimprovement of the builder, planter or sowerstands, is given to the owner of the land.

In the event that the owner elects to sell to thebuilder, planter or sower the land which theimprovement stands, the price must be fixed atthe prevailing market value at the time ofpayment This case is not for expropriation. Thisis a case of an owner who has been paying realestate taxes on his land but has been deprivedof the use of a portion of this land for years. It is

but fair and just to fix compensation at the timeof payment.

Sulo Sa Nayon Inc. vs. Nayong PilipinoFoundation

This article [Article 448] is mani fest ly in tendedto apply on ly to a case wh ere one bui lds ,

p lants, or sows on land in which h e believes

him self to have a claim of t i t le, and not to

lands wh ere the only int erest of the bui lder,

planter or sow er is that of a holder, such as a

tenant.

In the case at bar, petitioners have no adverseclaim or title to the land. In fact, as lessees, theyrecognize that the respondent is the owner ofthe land. What petitioners insist is that becauseof the improvements, which are of substantialvalue, that they have introduced on the leasedpremises with the permission of respondent,they should be considered builders in good faith

who have the right to retain possession of theproperty until reimbursement by respondent.

We affirm the ruling of the CA that introductionof valuable improvements on the leasedpremises does no t g ive the p et it ioners the

r ight of retent ion and re imbursement w hichr ight fu l ly belongs to a bui lder in good fa ith.Otherwise, such a situation would allow thelessee to easily "improve" the lessor out of itsproperty. We reiterate the doctrine that a lesseeis neither a builder in good faith nor in bad faith

12

that would call for the application of Articles 448and 546 of the Civil Code.

Under Artic le 1678, the lessor h as the option

of paying one-half of the value of the

improvements which the lessee made in

goo d fai th, which are suitable for the use for

which the lease is in tended, and which havenot a l tered the form and subs tance of the

land. On the other hand, the lessee may

remove the improvements sho uld the lessor

refuse to re imburse.

Arangote vs. Sps. Maglunob

Petitioner cannot be entitled to the rights underArticles 448 and 546 of the Civil Code, becausethe rights mentioned therein are applicable onlyto builders in good faith and not to possessors ingood faith.

Moreover, the petitioner cannot be considered abuilder in good faith of the house on the subjectproperty. In the context that such term is usedin particular reference to Article 448 of the CivilCode, a bui lder in goo d fa i th is one who , notbe ing the owner of the land, bui lds on that

land, bel ieving him self to be its owner and

unaware of any defect in h is t i t le or mode of

acquis i t ion.

the builder in good faith can compel thelandowner to make a choice betweenappropriating the building by paying the proper

indemnity or obliging the builder to pay the priceof the land. The choice belongs to the owner ofthe land, a rule that accords with the principle ofaccession, i.e., that the accessory follows theprincipal and not the other way around. Even asthe option lies with the landowner, the grant tohim, nevertheless, is preclusive. He mustchoose one. He cannot, for instance, compelthe owner of the building to instead remove it
http://www.lawphil.net/judjuris/juri2009/jan2009/gr_170923_2009.html#fnt12http://www.lawphil.net/judjuris/juri2009/jan2009/gr_170923_2009.html#fnt12http://www.lawphil.net/judjuris/juri2009/jan2009/gr_170923_2009.html#fnt12


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from the land. In order, however, that thebuilder can invoke that accruing benefit andenjoy his corresponding right to demand that achoice be made by the landowner, he should beable toprove good faith on his part.

2.2. Accession Natural- by natureInvolves:

Alluvium -A

Avulsion - A

Uprooted trees - U

Abandoned river beds - A

Q. How come they are called accessionnatural?A. Because w/o human intervention somethingis added/attached to the property.Example: beach - seashore

-watch the movement of water, thesediments upon the movement of H2O it willeither be washed away or it will stick to thesand.

Q. How did the alluvium / avulsion takeplace?A. Those sediments that accumulated on theseashore due to the force of the water.

Q. Who now owns the sediment?A. Owner of the property where the sedimentsaccumulated. Under the provisions of property,specifically alluvium:

Alluvium- small particles of soil arebeing washed away by the movement of H2Ow/out the owner of the real property knowing it.

-real property must be located near theriver

-There is an increase in the area ofowners property, that increase is due toalluvium - not identifiable w/ that of real property

In relation to Land Registration ActEven if the civil code says that

the owner of the real property, where all thoseparticles are gradually deposited & attached can

make owners ship through it, LR Act says that aresurvey must be done to include it in thetechnical description

*intention of the law: not only 1 grain ofsediment, those accumulated sediments

*it is different if what is attached to the realproperty is an identifiable portion of a real

property that is detached from a neighboringproperty.*it will only apply if you were near ariver/body of water

applies in the province, if you want toincrease your land, buy a land near a

body of water (this is what the law says)

Remember:Alluvium = not identifiable

refers to small particles of soilaccumulated into a greater mass.

not painful on the part of the originalowner who lost a part of land

Avulsion - with force

refers to an identifiable portion of a realproperty that was detached from?Neighboring property by the force ofH2O, is now moved to your real property

delayed accession

Reason: the owner of the real property wherethat identifiable portion has been separatedhas the right to claim it within 2 years. Once

2 years has lapsed, the owner of theneighboring property where the identifiableportion is now attached, can fully claimownership, it can now be a notice to theworld subject to resurvey to include it in thetechnical description in your title.

ALLUVIUM AVULSION

deposit of soil is gradual sudden or abrupt

process

unidentifiable identifiable

belongs to owner of

property to which it is

attached

belongs to owner from

whose property it was

detached

malumay = gradual maragsa = with force

Art. 459. Whenever the current of a river, creek or

torrent segregates from an estate on its bank a known

portion of land and transfers it to another estate, the

owner of the land to which the segregated portion

belonged retains the ownership of it, provided that he

removes the same within two years.


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Art. 460. Trees uprooted and carried away by the

current of the waters belong to the owner of the

land upon which they may be cast, if the owners do

not claim them within six months. If such owners

claim them, they shall pay the expenses incurred in

gathering them or putting them in a safe place.

Uprooted Trees

- -owner of real property where theuprooted tree can now be found cannotclaim ownership

- -original owner of the uprooted tree isgiven 6 months from the time it isuprooted

- -in the province, they convert it intofurniture

- Delayed accession because of 6 month

period given to owner to redeem thetree

River beds abandoned through naturalchange in course of the water

- -applies in the province- -not applicable in Manila (canal is not a

river bed)- -natural change in course biglang liko

due to it, the abandoned river bed isnow the subtitle of the area affected bythe natural change in courseEXCHANGE DEAL

-Reason: For being fair, even if it is very far,

abandoned part will be an exchange of thearea affected. PRINCIPLE OF UNJUSTENRICHMENT!

Formation of Islands

Q: Juan has property near a body of water, 2years after an island was formed nearproperty of Juan. Can Juan claim ownership

over the island?A: It depends if the body of water is:

Navigable - Absolutely No!!! Rememberthe regalian doctrine?!? Right of way of boatsand ferries.

Non-navigable - depends again if:a. Nearer to Juans property, he is the SOLEownerb. If equidistant or the island is located at thecenter - by operation of law, CO-OWNERSHIPwill apply.

1. Formed by the sea:a) within territorial waters - STATEb) outside territorial waters - FIRST

OCCUPANT

2. Formed in lakes or navigable or floatablerivers- STATE

3. Formed in non-navigable or non-floatablerivers:

a) equidistant from both banks(measured from the islands margins) - to theriparian owners by half (co-ownership)

b) nearer one margin or bank - to thenearer riparian owner.

Riparian Owner- owner of land located on thebank of a river or stream (or occasionallyanother body of water, such as a lake)

Littoral - relating to the coast or shore of anocean, sea or lake

Art. 461. River beds which are abandoned through the

natural change in the course of the waters ipso facto

belong to the owners whose lands are occupied by

the new course in proportion to the area lost.

However, the owners of the lands adjoining the old

bed shall have the right to acquire the same by paying

the value thereof, which value shall not exceed the

value of the area occupied by the new bed.

Art. 464. Islands which may be formed on the seas within

the jurisdiction of the Philippines, on lakes, and on

navigable or floatable rivers belong to the State. (371a)

Art. 465. Islands which through successive accumulation

of alluvial deposits are formed in non-navigable and non-

floatable rivers, belong to the owners of the margins or

banks nearest to each of them, or to the owners of both

margins if the island is in the middle of the river, in which

case it shall be divided longitudinally in halves. If a single

island thus formed be more distant from one margin than

from the other, the owner of the nearer margin shall be

the sole owner thereof.


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CASES

Government of P.I. vs. Cabangis

As the lots in question (near Manila Bay)disappeared by natural erosion due to the ebband flow of the tide, and as they remained in thatcondition until reclaimed from the sea by thefilling in done by the Government, they belong tothe public domain for public use.

Siain Enterprises Inc. vs. F.F. Cruz and Co.

The DENR Secretary found that the disputedarea is a natural foreshore, hence, it concludedthat SIAIN, being a littoral owner (owner of landbordering the sea or lake or other tidal waters),has preferential right to lease it as provided inparagraph 32 of Lands Administrative Order No.7-1 dated April 30, 1936 which reads:

32. Preference of Riparian Owner.The ownerof the property adjo in ing foreshore lands or

lands covered wi th water border ing upon

shores or b anks of n avigable lakes or r ivers,

shal l be given preference to apply for suc h

lands adjo in ing his prop erty as may not beneeded for the public service, subject to the lawsand regulations governing lands of this nature,provided that he applies therefore within sixty(60) days from the date he receives acommunication from the Director of Landsadvising him of his preferential right

That rule in paragraph 32 is inconsonance with article 4 of the Spanish Law ofWaters of 1866 which provides that, while landsadded to the shores by accretions and alluvialdeposits caused by the action of the sea formpart of the public domain, such lands, whenthey are no longer washed by the waters of thesea are not necessary for purposes of publicutility, or for the establishment of specialindustries, or for the coast guard service, shallbe declared by the Government to be theproperty of the owners of the estates adjacentthereto and as increment thereof.

In other word s, art icle 4 recognizes

the preferential right of t he l i t toral (r iparian

accordin g to paragraph 32) to the foresh ore

land formed by accret ions or al luv ia l

deposi ts due to the act ion of the sea.

That the foreshore area had been reclaimeddoes not remove it from its classification of

foreshore area subject to the preferential right tolease of the littoral owner.

It bears noting that it was not thereclamation that brought the disputed foreshorearea into existence. Such foreshore areaexisted even before F.F. Cruz undertook itsreclamation. It was formed by accretions oralluvial deposits due to the action of the sea.Following Santulan, the littoral owner haspreferential right to lease the same.

With Respect to PERSONAL PROPERTY

There is Accession if it will cause injuryto property, if no injury it is onlyaccessory.

Example: pair of glasses - it is composed of

several properties merged togetherFrame, glass/lens, nose pad, rubber

Q: If one is removed from the other, what willhappen?A: In accession, personal properties are puttogether, once there is an attempt to removeanother, it will cause injury or destruction to thething. In the example, if the glass/lens areremoved from the frame, it will cause injury tothe frame/glasses then there is accession.

Kinds of Accession In Personal Property

1. conjunction/ adjunction2. conmixtion3. specification

CONJUNCTION/ADJUNCTION

- The union of materials belonging todifferent owners making up a newthing.

- Separation being impossible withoutinjury.

Elements of Adjunction/Conjunction:1. Two personal properties put together

2. removal of which will cause injury ordestruction3. retains the identity of the separate personalproperties.

In the example given, the identity of the frameremains separate and distinct from the identity ofthe lens.


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Art. 470. (par.2)

If the one who has acted in bad faith is the owner of

the principal thing, the owner of the accessory thing

shall have a right to choose between the former paying

him its value or that the thing belonging to him be

separated, even though for this purpose it be necessary

to destroy the principal thing; and in both cases,

furthermore, there shall be indemnity for damages.

Q: If the owner of the frame is different fromthe owner of the lens, who owns theeyeglass?A: To answer this question, you have to be veryintelligentDetermine always what is the principal and whatis the accessory remember our principle,ACCESSORY FOLLOWS THE PRINCIPAL.If you cannot determine which is the principaland which is the accessory, then apply:

4 RULES (apply chronologically!)1. Rule of Importance2. Rule of Greater Value3. Rule of Greater Volume4. Rule of Greater Merit

Rule of ImportanceGen. Rule: The owner of the more importantpersonal property is the owner of the whole

thing.XPN: 1. Both in Good Faith

- In the example, if the value of theframe is higher than the lens, theowner of the frame has the right todemand separation (if slight injury,no problem)

2. Owner of Principal in Bad Faith- always liable for damages- Owner of accessory in good faith

can demand separation even if it willcause destruction, not just simpleinjury.

3. Owner of Accessory in Bad Faith- Liable for damges- Losses property and will go to

owner of principal as adjunction4. Good faith/ Bad Faith not mentioned

- Qualify

Other examples in adjunction (importance):1. jewelries2. watch3. button in polos4. zipper5. car engine and car key

Rule of Greater ValueExamples:1. wristwatch - watch is more valuable than

leather band2. diamond ring - diamond more valuable than

gold band

Rule of Greater Volume- Apply if the two properties have the same

value

Rule of Merit or Sentimental Value- that of greater merits, taking intoconsideration all the pertinent legal provisions

NOTA BENE:

Gen. Rule is ACCESSORY FOLLOWS THEPRINCIPAL (GOOD FAITH ON BOTHOWNERS)XPN: When accessory is much more preciousthan the principal, in which case the owner ofthe accessory may demand the separationeven if the principal suffers some injury NOTdestruction.

OWNER OF PRINCIPAL IN BAD FAITH:

Owner of the accessory has the option:a) to recover damages ORb) to demand separation even to the

extent of destroying the principal + damges

Art. 469. Whenever the things united can be

separated without injury, their respective owners

may demand their separation.

Nevertheless, in case the thing united for the use,

embellishment or perfection of the other, is much

more precious than the principal thing, the owner of

the former may demand its separation, even though

the thing to which it has been incorporated maysuffer some injury.


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Art. 474. One who in good faith employs the material of

another in whole or in part in order to make a thing of a

different kind, shall appropriate the thing thus

transformed as his own, indemnifying the owner of the

material for its value.

If the material is more precious than the transformed thing

or is of more value, its owner may, at his option,

appropriate the new thing to himself, after first paying

indemnity for the value of the work, or demand indemnity

for the material.

If in the making of the thing bad faith intervened, the

owner of the material shall have the right to appropriate

the work to himself without paying anything to the maker,

or to demand of the latter that he indemnify him for the

value of the material and the damages he may have

suffered. However, the owner of the material cannot

appropriate the work in case the value of the latter, for

artistic or scientific reasons, is considerably more than that

of the material.

OWNER OF ACCESSORY IN BAD FAITH:Losses accessory and liable for

damages

MIXTURE (conmixtion or confusion)- Union of materials were the

components lose their identity

- Results to CO-OWNERSHIP- Separation of property is NOT

possible, no principal/ accessory

1. conmixtion- mixture of two solids

Example: cement + sand2. confusion- mixture of two liquidsExample: water + chlorine

Vinegar + soy sauce

Solid + Liquid = water + coffee

Adjunction - the identity of the 2 propertiesis separate and distinct

Mixture - the identity of the 2 properties willdisappear

Q: Who will own the water mixed with the

coffee?A: It DEPENDS! If by accident (good faith) co-ownership will apply.If intentional (bad faith), owner in bad faith willlose right to his own material + liable fordamages.

SPECIFICATION:

- It is the transformation of anothersmaterial by the application of labor.

- The material becomes a thing of adifferent kind.

- HUMAN LABOR is deemed to be

the principal- Identity of the personal property is

transferred to another due to humanintervention

Example: pants and jacket- Cannot be immediately produced.

These were transformed originallyfrom a piece of cloth, the cloth

originally from cotton, cottonoriginally from a tree.

Pants/Jacket = accessoryLabor (man) = principal, without it suchproperty cannot change into another

RULES:

1. Owner of Principal in Good Faith:Gen. Rule: Maker acquires the new

thing and indemnify owner of material (unjustenrichment)

XPN: if the value of the material isgreater than value of labor, owner of materialhas option:

a) to acquire the property + indemnifyfor labor OR

b) demand indemnity for material

2. Owner of Principal in Bad FaithOwner of material has option:a) acquire the result without indemnity

(due to impossibility of separation) ORb) indemnity for the material + damages

3. Owner of Material in Bad Faith- loses material and must pay damages.

Art. 470. (par.1) Whenever the owner of the accessory

thing has made the incorporation in bad faith, he shall

lose the thing incorporated and shall have theobligation to indemnify the owner of the principal thing

for the damages he may have suffered.


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IV. Quieting of Title

Purpose: Restoration

Accion que teinet

An equitable action in rem to determinethe condition of the ownership or therights to immovable property andremove doubts thereon

A cloud on title is a semblance of title

A cloud on title exists when there is aninstrument, record, claim, encumbranceor proceeding which is apparently validor effective, such instrument is in truthand in fact invalid, ineffective, voidableor unenforceable or has beenextinguished by prescription.

Action does not prescribe

Plaintiff must have legal or equitabletitle but need not be in possession ofthe property (Art. 477)

Procedural remedy

There should be an instrument ordocument involved

No rule in civil procedure and specialproceedings, therefore, sabi ni MamLR, it is a DECLARATORY RELIEF

Q: What if there is doubt on title?A: Proper remedy is to quiet title

Q: Is there a prescriptive period for action ofquieting?

A: It depends- If plaintiff in possession, action does not

prescribe- If plaintiff not in possessionprescribesa) Good faith = 10 yearsb) Bad faith = 30 years

Ind ispensable requis i te which mus t

be present so that you c an fi le an

act ion to qu iet :

Possessor haslegal/equitable title

Not necessary that he is

in possessionLegalregistered ownerEquitableBeneficiary

Deed/ Instrument must be shown to beinvalid and operative

There must be evidence to prove

Direct attackmain action/central issueIn the Family Code:

Nullity of Marriagecan be attackeddirectly/collaterally.

Collaterallypossible for settlement.Annulment of marriagecannot beattacked collaterally, must be direct.Youneed to file a petition for annulment.

Leyson vs. BontuyanSC: Action for reconveyance prescribes in 10years if claimants are not in possession.

If in possession = It does not prescribe.

Q: Who can file?A: The plaintiff must have a legal or equitabletitle to, or interest in the property subject of theaction. He need not be in possession of theproperty.

V. Co-ownership

Created by law or by agreement

Plurality of parties, like in aCorporation except corporation sole

Not a juridical person

The law says spiritual sharemeaning you cannot identify whereis your exact share. If the specificshare is identifiable then the co-ownership is extinguished.

Art. 484. the right of common dominion which2 or more persons have in a spiritual part of athing which is not physically divided.

a) Hidden treasure (chance)no problem ifthe property can be divided physically.

-If it cannot be divided physically,automatically there is co-ownership.

b) By Succession - only 1 property left andseveral compulsory heirs

- Upon death of decedent compulsoryheirs automatically become co-owners.

c) Property Relationship betweencommon law spouses 147 and 148 ofthe FC.


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Co-ownership Partnership

Co-Ownership Partnership

Created by othersources besidescontract

Created by contractexcept conjugalpartnership

No juridical personality Has juridicalpersonality

Purpose: Commonenjoyment

Purpose: Profit

May not stipulateindivision for more than10 years but 20 years ifimposed bytestator/donor

May be for more than10 years

Not dissolved by deathof co-owner

Dissolved by death ofpartner

Example:

1. Law office through partnership

- Can enter into transaction with anyperson

2. Co-owner of property

- Cannot enter into transaction- No juridical capacity

Remedy: Co-owner will have to enterinto particular transaction with 3

rdperson

3. Partnership: 1 dies = partnership isterminated

Co-ownership: 1 dies, will notdissolved the co-ownership.

Q: Is there perpetual co-ownership?A: No. Any co-owner can demand partition ofownership at any time.

Basis: Patricio vs Dario III

No co-owner ought to be compelled tostay in a co-ownership indefinitely.

Co-owner may insist on partition of theproperty at any time.

An action to demand partition does not

prescribe

If there is agreement on co-ownership, cancontinue for a maximum of 10 years.

If a co-owner wants to sell the property itmust be with a unanimous consent.

Lopez vs. IlustreA co-owner has the right to freely sell

and dispose of his undivided interest, but noright to sell a divided/definite part of the realestate.

Cruz vs. CACo-ownership is terminated if there is

judicial or extra-judicial partition of property.

Avila vs. Sps. ArabatAny act intended to put an end to

division is deemed to be PARTITION. Heirs tookpossession of respective share and constructedrespective houses. Co-ownership is legallydissolved and right of redemption cannotanymore be exercised.

Q: Can a co-owner file an action forejectment against another co-owner?

A: Yes, ejectment is only about physical ormaterial possession. If it is beneficial to the otherco-owners, action for ejectment will prosper. (DeGuia vs CA)

De Guia vs. CASC: Co-owner may file an action for

ejectment under Art. 487. Not only as against athird person but also against a co-owner whotakes exclusive possession and assertsexclusive ownership of the property (no consentnecessary).

Q: Is it possible to acquire undivided interestof co-owner by prescription?A: Yes, SC in Sta. Ana Vs. PanlasigueGR: Co-owner cannot acquire by acquisitiveprescription the undivided share.XPN: Unless there is an explicit repudiationof that share coming from a co-owner.- But if that co-owner did not repudiatehis share, there can be NO acquisitiveprescription.

Heirs of Cabal vs CabalCo-ownership will not exist if a portion

owned is completely determined or specified byits very nature.Every co-owner owns an undivided

interest and you cannot pinpoint where thatproperty co-owned is an undivided interest.


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Sources of Co-ownership:1. Lawa. common law spouses (Art. 147-148 FC)b. commixtion/confusion - generally will result toco-ownership, subject to the xpnsc. Hidden Treasured. Formation of islands if equidistant = co-ownership

(in all the above circumstances, co-ownership is created by operation of law)

2. Contract3. Succession4. Chance5. Occupation - hunting/fishing

Consent of Majority of interest in a co-onwership

E - Enjoyment

MManagement

IImprovement (Art. 489)

Unanimous Consent:

E - Emcumbrance (Mortgage)

D Disposition of entire property(Sale/Donation)

AAlteration of thing owned in common(Art. 491)

In relation to expenses:

Necessary Expenses: Art. 488

Q: Does co-owner have the right forreimbursement?A: Yes, because it is beneficial to all co-owners.But the law says it would be better to notify inadvance .No consent needed

Q: What if the other co-owners still does notpay?A: Co-owner may compel the other co-owner topay. If the other co-owner renounced hisundivided share, that share will be consideredas payment for the necessary expensesincurred. Dacion en Pago.

Useful and Luxury Expenses

- If no consent, that co-owner whointroduced wil be solely responsible forit.

Causes for extinction of co-ownership:

1. Total destruction of the thing

2. Merger of all interest into one person

3. Prescription (adverse possession)- By a 3

rd person or one co-owner (open and

adverse)

4. Partitionjudicial/extrajudicialGR: Maybe asked at anytimeXPN: When there is stipulation against

it. Condition imposed by transferor; legal natureprevents partition; prohibited by law; partitionwould render the thing unserviceable.Basis: Figuracion Gerilla vs Vda. DeFiguracion

Premature to partition a property that isco-owned if ownership of property is still indispute/remains in issue as to expenses.

Condominium Act: RA 4726June 19, 1966

Reason for the law : the proliferation of condosin the Philippines

Sec. 2Condominium

- An interest in real property consisting ofseparate interest in a unit in a residential,industrial or commercial building and anundivided interest in common, directly orindirectly, in the land on which it is located andin other common areas of the building.

*Indispensable requirement: All incorporators ofcondo corp. Must be shareholders thereof.

Shareholders - owner of condo unit.

*There are areas in the condo that are co-owned, example:

- stairs, elevator, gym etc

*Your unit is yours exclusively but you have noright to make changes outside your unit.

*the higher the unit, the more expensive it is.Why? Because dear reader, there is lessdisturbance.

*the lower the unit, the cheaper it is. Why?Because dear reader, there is more disturbance.You have to endure the fact that people from thehigher unit will pass by your unit (corridor) everyday to get out of the condo. Your location ismore prone to being used because of theCOMMON AREAS! Gets?!? (very good! Now weproceed to the next topic.)


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VI. Possession

- Material holding or control of a thing(Possession proper)

- Exercise of a right (quasi-possession)- Holding of a thing or of a right whether by

material occupation or by the fact that thething or right is subjected to the action of ourwill.

Possession in Property does notautomatically refer to actual physicalpossession, because there is such a thing as:

a) Possession in the concept of holderb) Possession in the concept of owner

Example:Lesseepossession in the concept of holder.Lessoralthough not in the actual possession,in the concept of holder of a right. Possessionin concept of owner.

Jus Possidendi

- The right to possess- Right exercised by the owner of the property.

Different Types of Credit Transactions1. Commodatum2. Usufruct3. Antichresis4. LeaseLesseeholder

Lessorowner*Right of possession is transferred to a 3

rd

person but not the other rights of an owner.

Q: What can be objects of possession?A: Only things and rights susceptible ofappropriation

Res Nullius Nobody owns them soyou cannot be charged of robbery.

Res Alicujus unless in relation todifferent kinds of transactions, owner delverspossession to a 3

rd person which shows that

the object is not res nullius, subject that there isconsent in the transfer of the possession.

Q: What are excluded?

A: Res CommunesProperty of Public DominionDiscontinuous ServitudesNon-apparent- servitudes.

Ways of Acquiring Possession:1. Material Occupancy includes constructive

delivery.

Traditio Brevi Manu (TBM) transferee already had the property inhis possession for any other reason.

Ex. Juan, lessee of property of Maria, decidesto buy the property upon hearing that Mariaintends to sell it. After buying the property, Juancontinues/ remains to be in possession of theproperty - from lessee to owner.

Constitutum Possessorium(CP)take place when the owner of theproperty alienates it but continues to bein possession in the concept of a tenantor other subordinate right =lessee/usufruct.

Ex. Owner sells property to another person

subject to the condition that he is allowed tocontinue to possess the property.

2. By the subjection to the action of our willaccording to law even without physicalseizure

Tradicion Symbolica (TS) delivery of the keys of the place ordepository where the thing is stored orkept.

OBLICONcontract of saleStages: 1. Preparation

2. Perfection3. Consummation

- Real property by nature that cannot beactually transferred or delivered.- The only way to deliver it is through symbols.

Ex. Delivery of a title or key no actualtransfer of object.

Traditio Longa Manu (TLM)thing cannot be manually transferred tothe transferee at the time of agreementbut there is no legal obstacle to thetransfer of possession.

Q: Is tradition longa manu applicable inREAL property or is it limited to personalproperty only?A: It is limited to personal property onlybecause if you are just pointing to a parcel ofland, how will you be able to identify the lotarea? In the sale of land, there must be asurvey to properly identify the meets andbounds of the lot, therefore TLM not applicable.


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3. By proper acts and legal formalities Clandestine possession hidden or disguised, as distinguishedfrom open or public possession. Possession by tolerance does not give rise to ownership.Ex. Squatter (Informal Settlers) living inRizal Park.

Acts merely tolerated, and those executedclandestinely and without knowledge of thepossessor of a thing or by violence, do notaffect possession. (Art. 537)

Ex. Public Dominion cannot be acquired byacquisitive prescription. It cannot ripen intoownership.

Right of Possession Right to Possession

Jus Possessionis Jus PossidendiRight of possession isindependent and apartfrom ownership

Right to possessionis a mere incident ofownership

Who enjoys?:

- Usufructuary-Bailiee inCommodatum

-Pledgee-Lessee

Who Enjoys? :

Possession with juridical title Possession with just title

Possession withJuridical Title

Possession withJust Title

Predicated on ajuridical relationexisting between thepossessor and theowner of the thing butnot in the concept ofowner, such as that oflease, usufructuary,depositary etc.

Possession of anadverse claimantwhose title issufficient to transferownership but isdefective as whenthe seller is not thetrue owner.

Connect with right ofpossession

Ex.Usufructuary,Depositary, pledge,lessee in possessionbut not in the conceptof an owner.

Connect with rightto possession

Refers to owner ofproperty

Q: What if there is a dispute between 2persons regarding possession of property?A: Rules:

1) Preference, shall be given toone in actual possession the lawpresumes that if you are inpossession you are the owner.2) If 2 or more possessors Oldest or Longer possessor3) If the same, the one who canshow title

*If all conditions are equal, determined inproper proceedings (Art. 538).

*Rule #1-3 must first be resorted to beforegoing to Rule # 4.

Different kinds of action to recoverpossession of real property:

1) Summary (Accion Interdictal)

- Forcible Entry

- MTC

Sampayan vs. CASC: In an action for forcible entry,plaintiff must prove that he was inprevious possession of the land/buildingand he was deprived thereof by meansof fraud, intimidation, threat, strategyor stealth (FISTS). Absence of priorphysical/actual possession by plaintiffwarrants the dismissal of his complaint.

Complainant must prove that:1. he is in ACTUAL possession

2. he is deprived of possession throughFISTS

2) Unlawful detainer originally defendant wasin lawful possession of property, however,because of expiration of the period that hasbeen leased/violation/breach of conditionsstipulated, possession of that defendantbecomes unlawful.Steps:

1) Demand for defendant to vacatepremises (15-30 days)

2) Letter must be given which was

made by a lawyer for an action of unlawfuldetainer.Ocampo vs. TiromaSC: Elements to be proved in unlawfuldetainer:1. There was lawful possession first - thismay be in a lease or usufruct2. The contract is expired already or therewas a violation of the contract.


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Remedies:

- Recovery of possession- Accion PublicianaIssue: Possession- Accion ReinvidicatoriaIssue: Ownership- RTC Oblicon: For a person to be in default, you must

make a demand.- Within 1 year from the date of?- Answer: Demand to vacate the premises- Injunction, against continuation of trespass

Q: What is the proper remedy to get rid ofinformal settlers?A: Demand first that they should vacate theproperty. Then 1 year from date of demand tovacate if still stubborn, file accion publiciana inthe RTC.

Q: What if property is not real but personal?A: File an action for REPLEVIN.

Replevin : Go back to Art. 415 real/personalproperty.

Proper action for recovery of personal property- Rule 60 ROC

Q: What is the principle of Irrevindicability?Art. 559A: General Rule Under acquisitiveprescription; if you are in possession ofproperty in good faith, you can acquire it after10 years.

- If you are in possession of a movable/personal

property and you acquired it in good faith,acquisition of which is equivalent to a just title.Ex.

1) If owner of that property lost it- No finders keepers under the civil code. It

should be surrendered to proper authorities.- Connect with modes of acquiring.2) If owner has been illegally deprived of it

Under Criminal LawAntifencing Act.

Jimenez vs. Patricia

- Lessees, much less sub-lessees are notpossessors or builders in good faith over rented

land because they know that their occupancy ofthe premises continues only during the life ofthe lease or sublease as the case may be.

- They cannot as a matter of right recover thevalue of their improvements from the lessor,much less retain the premises until they arereimbursed.

- Art. 1678allows reimbursement of lessees upto of the value of their improvements if thelessor elects.

Possessor in Good FaithArt. 546 entitled to demand

necessary expenses.

Right of RetentionSps. Nuguid vs. CA

Under Art. 448, the owner is given the option:a) To appropriate the improvementas his own upon payment of the properamount of indemnity; orb) To sell the land to the possessorin good faith

Relatedly, Art. 546 provides:

that a builder in good faith is entitled to fullreimbursement for all necessary and usefulexpenses incurred.

Also gives builder/possessor in good faiththe right of retention until fullreimbursement is made.

Kinds of Action to Recover Possession ofReal Property

1) Summons (Accion Interdictal) forcibleentry/unlawful detainer.

- MTC

2) Accion Publicianaaction for the recovery ofpossession.

- Based on superior right of plaintiff to

possession (in concept of holder)- RTC- Issue: On possession NOT ownership

3) Accion Reinvindicatoria Issue: Based onownership

- RTC

4) Injunctionagainst continuation of trespass.

5) Interpleader a suit to determine a right toproperty held by a disinterested 3

rd party, who

is in doubt about the ownership and who

therefore deposits the property with the Courtto permit interested parties to litigateownership.

- Purpose:1) Who should receive property;2) avoid multiple liabilities.


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VII. Usufruct

- Right to enjoy the property of anotherwith the obligation of preserving its formand substance unless the titleconstituting it or the law otherwiseprovides.

- uso use- fructo fruits/enjoy

- A real right (of a temporary nature)- May involve real or personal property.

Usufruct Lease Commodatum

Distinction: right to enjoy fruitsLease: Rights:

1. Possess2. Use3. Enjoyit depends, if there is

express prohibition against a

sublease, then no right to enjoy thefruits.- If allowed, lessee can

sublease property, hencecan enjoy the fruits.

-Parties: Lessor and Lessee

Usufruct: Rights:1. Possess2. Use3. Enjoy

Parties: Naker owner and Usufructuary.Commodatum: Rights:

1. Possess2. Use3. No transfer of right to enjoy

Parties: Bailor and BaileeObject: real/personal; sterile/productive;may be rented as a right.

Q: Is there consideration involved inUsufruct? Lease? Commodatum?A: 1. Leasethere is consideration.

-rentals- Lessee cannot sublease

without the consent oflessorRental Law

2. Commodatumessentially gratuitious3. Usufructcivil code is silent.Accdg. To Castan - 1890 Spanish Civil Code

- Provision of property was retainedunlike in FC (marriage)

- There can be considerationMay begratuitous/onerous

Characteristics/Elements:A. Essential without which it is not a

usufruct.1) Real right2) Temporary in nature3) Purpose: To enjoy the benefits

B. Naturalordinarily is absent- GR: to preserve it- XPN: when the title/law provides that it

is OK not to preserve.

C. Accidental

Difference between Usufruct Lease

Lease consideration is regular,weekly, monthly

Usufruct consideration is only ONCE,not a regular basisReason:

a) To prevent exploitationb) To prevent abuse w/c is

frequentc) To prevent impairment

Q: May a usufructuary lease the obj

Atty. Lopez-Rosario Notes on Property UST-Civil-Law

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