Laws On Property

PROPERTY Prof.
Labitag Page 1 of 48

TABLE OF CONTENTS

I. DEFINITION OF PROPERTY .................................................................................................................................. 3
A. Classification under the Civil Code ............................................................................................................................................. 3
B. By Ownership............................................................................................................................................................................ 5
C. Other Classifications .................................................................................................................................................................. 6
II. OWNERSHIP ..................................................................................................................................................... 8
A. Definition .................................................................................................................................................................................. 8
B. Bundle of Rights included in Ownership ..................................................................................................................................... 8
C. Other Specific Rights found in the Civil Code .............................................................................................................................. 8
D. Limitations of Real Right of Ownership ...................................................................................................................................... 9
III. RIGHTS OF ACCESSION .................................................................................................................................... 11
A. Concept ...................................................................................................................................................................................11
B. General Principles of Accession ................................................................................................................................................11
C. Obligations of Receiver of Fruits to Pay Expenses by 3
rd
person in producti on, gathering and preservation ................................11
D. Kinds of Accession ....................................................................................................................................................................12
1. Accession Discreta ...............................................................................................................................................................12
2. Accession Continua ..............................................................................................................................................................12
Over Immovables .....................................................................................................................................................................12
Over Movables .........................................................................................................................................................................14
IV. QUIETING OF TITLE ........................................................................................................................................ 15
A. Differences between Action to Quiet Title and Action: ..............................................................................................................15
B. Prescription of Action to Quiet Title ..........................................................................................................................................15
C. Who are Entitled to Bring Action? .............................................................................................................................................15
D. Notes .......................................................................................................................................................................................15
V. CO-OWNERSHIP............................................................................................................................................... 16
A. Definition .................................................................................................................................................................................16
B. Characteristics of co-ownership ................................................................................................................................................16
C. Differences between Co-ownership and Joint Tenancy ..............................................................................................................16
D. Differences between Co-ownership and Partnership .................................................................................................................16
E. Source of Co-ownership ...........................................................................................................................................................16
F. Rights of each co-owner as to the thing owned in common .......................................................................................................17
G. Implications of co-owners right over his ideal share ..................................................................................................................18
H. Rules on co-ownership not applicable to conjugal partnership of gains or absolute community of property ...............................19
I. Special rules on co-ownership from provisions of Condominium Law (Act No. 4726) ..................................................................19
J. Extinguishment of co-ownership ..............................................................................................................................................19
VI. POSSESSION ................................................................................................................................................... 21
A. Definition and Concept .............................................................................................................................................................21
B. Essential Requisites of Possession .............................................................................................................................................21
C. Degrees of Holding of Possession .............................................................................................................................................21
D. Cases of Possession ..................................................................................................................................................................21
E. What things or rights may be possessed ...................................................................................................................................22
F. What may not be possessed by private persons ........................................................................................................................22
G. Acquisition of Possession..........................................................................................................................................................22
H. Effects of Possession ................................................................................................................................................................23
I. Effect of possession in the concept of an owner ........................................................................................................................24
J. Presumptions in favor of the possessor.....................................................................................................................................24
K. Possession may be lost by ........................................................................................................................................................25
VII. USUFRUCT .................................................................................................................................................... 26
A. Concept ...................................................................................................................................................................................26
B. Historical considerations ..........................................................................................................................................................26
C. Characteristics of Usufruct .......................................................................................................................................................26
D. Usufruct distinguished from lease; from servitude ....................................................................................................................26
E. Classes of Usufruct ...................................................................................................................................................................26
F. Rights of Usufruct ....................................................................................................................................................................27
G. Rights of Naked Owner .............................................................................................................................................................27
H. Obligations of Usufructuary ......................................................................................................................................................28
I. Special Cases of Usufruct ..........................................................................................................................................................29
J. Extinguishment of Usufruct ......................................................................................................................................................29
PROPERTY Prof. Labitag Page 2 of 48

VIII. EASEMENTS OR SERVITUDES ......................................................................................................................... 32
A. Definition .................................................................................................................................................................................32
B. Essential feature of easements/real servitudes/praedial servitudes ...........................................................................................32
C. Classification of Servitudes .......................................................................................................................................................32
D. General rules relating to servitudes ..........................................................................................................................................33
E. Modes of acquiring easements .................................................................................................................................................33
F. Rights and obligations of owners of dominant and servient estates ...........................................................................................33
G. Modes of extinguishment of easements ...................................................................................................................................34
H. Legal Easements.......................................................................................................................................................................35
BOOK III DIFFERENT MODES OF ACQUIRING OWNERSHIP ..................................................................................... 37
Mode and Title Differentiated............................................................................................................................................................37
Modes of Acquiring Ownership ..........................................................................................................................................................37
Occupation .......................................................................................................................................................................................38
Intellectual creation ..........................................................................................................................................................................38
DONATION ......................................................................................................................................................... 39
Nature of donation ............................................................................................................................................................................39
Requisites of donation .......................................................................................................................................................................39
Kinds of donation ..............................................................................................................................................................................39
Who may not give or receive donations .............................................................................................................................................40
Who may give or receive donations ...................................................................................................................................................40
Acceptance of donation .....................................................................................................................................................................40
Form of donations .............................................................................................................................................................................40
What may be donated .......................................................................................................................................................................40
Effect of donation..............................................................................................................................................................................41
Revocation and Reduction of Donations .............................................................................................................................................42
LEASE ................................................................................................................................................................ 45
A. General characteristics of every lease .......................................................................................................................................45
B. Kinds of leases .........................................................................................................................................................................45
C. Lease of things .........................................................................................................................................................................46


I. DEFINITION OF PROPERTY

PROPERTY
y Is an economic concept, meaning a mass of things useful to human activity and which are necessary to life, for which reason
they may be organized and distributed in one way or another, but, always for the good of the main.
y In order that a thing may be considered as property:
o Utility capacity to satisfy human wants
o Individuality or Substantivity an autonomous or separate existence; materials composing a thing are not thing in
themselves.
o Appropriability or susceptibility to appropriation

A. Classification under the Civil Code

1. Immovable or Real Property

1. Lands, buildings, road and constructions of all kinds adhered to the soil.
2. Trees, plants, 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 removed 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. Machineries, receptacles, instruments and implements intended by the owner of the tenement for industry or works
which may be carried on in a building or on a piece of land, and which tends 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. Contract for public works and servitudes and other real rights over immovable property

a. By Nature those which cannot be moved from place to place

Art 415, Par 1 Land, buildings, road and constructions of all kinds
Art 415, Par 8 Mines, quarries and slag dumps

b. By Incorporation

Art 415, Par 2 Trees, plants and growing fruits
Art 415, Par 3 Everything attached to an immovable
Art 415, Par 7 Fertilizers

c. By Destination

Art 415, Par 4 Statues, reliefs, paintings and other objects for use or ornamentation
Art 415, Par 5 Machines, receptacles, implements and instruments
Art 415, Par 6 Animal houses, pigeon-houses, beehives, fishponds and breeding places of similar nature
Art 415, Par 9 Docks and structures

d. By Analogy

Art 415, Par 10 Contracts for public works, servitudes and other real rights over immovable property

Movables or Personal Property

Art 416 The following are things deemed to be movable property:

(1) Those movables susceptible of appropriation which are not included in the preceding article
(2) RP which by any special provision of law is considered as personalty
(3) Forces of nature which are brought under the control by science
(4) In general, all things which can be transported from place to place without impairment of the real property to which they are
fixed (c.f. Art 415 No 3)

Art 417 The following are also considered as personal property:
(1) Obligations and actions which have for their objects movables or demandable sums
(2) Shares of stock of agricultural, commercial and industrial entities, although they may have real estate

DAVAO SAWMILL v CASTILLO ()
BERKENKOTER v CU UNJIENG ()
LOPEZ v OROSA ()
TUMALAD v VICENCIO ()
ASSOCIATED INSURANCE v IYA ()
MAKATI LEASING v WEAREVER ()
BD. OF ASSESSMENT APPEALS v MERALCO ()
MERALCO v BD. OF ASSESSMENT APPEALS ()
MERALCO v BD. OF ASSESSMENT APPEALS ()
CALTEX v BD. OF ASSESSMENT APPEALS ()
BENGUET CORP. v BD. OF ASSESSMENT APPEALS ()

2. Importance and Significance of Classification
From point of view of:

i. Criminal Law
ii. Form of contracts involving movables or immovables
iii. Prescription
iv. Venue/Jurisdiction
v. Taxation
vi. Double Sales under Art 1544

Art 1544 If the same thing should have been sold to different vendees, the ownership shall be transferred to the person who may
have first taken possession thereof in good faith, if it should be IMMOVABLE PROPERTY. (applies to unregistered lands)

For registered lands: Should it be IMMOVABLE PROPERTY, the ownership shall belong to the person acquiring it who in good faith,
first recorded it in the Registry of Property.
Should there be no inscription, the ownership shall pertain to the person who in good faith was first in the possession; and, in the
absence thereof, to the person who presents the oldest title, provided there is good faith.

vii. Preference of Credits
viii. Causes of Action to Recover

3. Differences between Real Rights and Personal Rights

Point of comparison REAL RIGHTS PERSONAL RIGHTS
Definition Power belonging to a person over a specific
thing, without a passive subject individually
determined against whom such right may
be personally exercised
Power belonging to one person to demand
to another, as a definite passive subject, the
fulfillment of a prestation to give, to do or
not to do
Elements 1) Subject and object connected by a
relation of ownership of the former
over the latter
2) A general obligation or duty of respect
for such relation, there being no
particular passive subject
3) Effective actions recognized by law to
protect such relation against anyone
who may want to disturb it
1) Two subjects: active and passive
(bound to perform prestation
incumbent upon him by reason of a
juridical tie which binds him to the
active subject), who are determined
and specified
2) General obligation on the part of 3
rd

persons to respect the relation
between the active and passive
subjects

3) Effective actions in favor of the active
subject against the passive subject for
the performance of the prestation by
the latter or so that the relation
between them may produce its natural
and juridical effects
Also known as Jus in re Jus ad rem
Number of persons involved in the juridical
relation
Active subject 1
Passive subject - the rest of the world
without individual determination
Definite active subject
Definite passive subject
Object of the juridical relation Generally a corporeal thing Intangible thing, i.e. the prestation of the
debtor
By the manner in which the will of the
active subject affects the thing related to it
Generally affects the thing directly Indirectly through the prestation of the
debtor
By the causes of creating the juridical
relation
By mode and title By title alone
By the methods of extinguishment of the
juridical relation
Extinguished by the loss or destruction of
the thing
Not extinguished by the loss or destruction
of the thing
By the nature of the actions arising from
them
Real actions against third persons Only personal actions against the definite
debtor

B. Classification by Ownership

1. Res Nullius does not belong and are not enjoyed by anyone e.g. abandoned property and hidden treasure

2. Public Dominion owned by the state but enjoyed by all its citizens
cf. Patrimonial Property of State

Art 419 Property is either of public dominion or private ownership.

Art 420 The following are things of public dominion:
(1) Those intended for public use, such as roads, canals, rivers, torrents, ports and bridges, constructed by the State, banks, shores,
roadsteads and other of similar character
(2) Those which belong to the State, without being for public use, and are intended for some public service or for the development
of national wealth

Art 421 All other property of the State, which is not of the character stated in the preceding article, is patrimonial property

Art 422 Property of public dominion, when no longer intended for public use or public service, shall form part of the patrimonial
property of the State.

Art 424 Property for public use, in the provinces, cities, and municipalities, consists of the provincial roads, city streets, municipal streets,
the squares, fountains, public waters, promenades and public works for public service paid for by said provinces, cities, or municipalities.
All other property possessed by any of them is patrimonial, and shall be governed by this Code, without prejudice to the provisions of
special laws.

a. Property of State
Art 420 Art 421 Art 422 see above

i. For public use
ii. For public service
iii. For development of national wealth

LA BUGAL BLAAN TRIBAL ASSN. v RAMOS (2004)
ON RECONSIDERATION (2005)

CHAVEZ v PEA AMARI (2002)
ON RECONSIDERATION (2003)

USERO v CA (2006)

b. Property of Municipal Corporations
Art 424, Par 1 see above

i. For public use including public works for public service

3. Private Property

a. Patrimonial Property of State
Art 421 see above

b. Patrimonial Property of Municipal Corporations
Art 424, Par 2 see above

c. Private Property of Private Persons
Art 425 Property of private ownership, besides the patrimonial property of the State, provinces, cities and
municipalities, consists of all property belonging to private persons, either individually or collectively.

TANTOCO v MUNICIPAL COUNCIL ()
ZAMBOANGA DEL NORTE v CITY OF ZAMBOANGA ()
SALAS v JARENCIO ()
CEBU ACETYLENE v BERCILLES ()
MUNICIPALITY OF SAN MIGUEL v FERNANDEZ ()
GOVERNMENT v CABANGIS ()
CHAVEZ v PEA AMARI (2002)
ON MOTION FOR RECONSIDERATION (2003)

4. Effect and Significance of Classification of Property as Property of Public Dominion

a. Property is outside the commerce of man
b. Property cannot be the subject of acquisitive prescription
c. Property cannot be attached or levied upon in execution
d. Property cannot be burdened with a voluntary easement

C. Other Classifications

1. By their physical existence
a. Corporeal those which are manifest to the senses, which we may touch or take, which exist in space and have a body,
whether animate or inanimate
b. Incorporeal personal prestations or acts or services productive of utility. They are not manifest to the senses but are
conceived only by the understanding. They must combine three requisites:
i. External manifested act
ii. Personal done by the debtor himself
iii. Possible when it can be done both in nature and in law

2. By their autonomy or dependence
a. Principal those which other things are considered dependent or subordinated e.g. lands on which a house is built
b. Accessory dependent upon or subordinated to the principal e.g. house in the preceding example

3. By their subsistence after use
Art 418 Movable property is either consumable or non-consummable. To the first class belong those movables which cannot be
used in a manner appropriate to their nature without being consumed. To the second class belong all the others.
a. Consumable whose used according to their nature destroys the substance of the thing or causes their loss to the owner
e.g. food
b. Non-consumable not consumed by use
Differentiated from Fungible or Non-fungible
Fungible depends upon possibility (because of their nature or the will of the parties) of being substituted by others of the same kind,
not having distinct individuality; those which belong to the common genus which includes several species of the same kind, perfectly
permitting substitution of one by the others
Non-fungible those which have their own individuality (specifically determined) and do not admit of substitution
c. Deteriorable or non-deteriorable

4. By reason of their susceptibility to division
a. Divisible can be divided physically or juridically without injury to their nature e.g. piece of land, inheritance
b. Indivisible those which cannot be divided without destroying their nature or rendering impossible the fulfillment of the
juridical relation of which they are the object e.g. horse

5. By reason of designation
a. Generic indicates its homogenous nature, but not the individual e.g. horse, house, dress
b. Specific indicates the specie or its nature and the individual e.g. white horse of X or house No. 20 at Y Street

6. By their existence in point of time
a. Present exist in actuality, either physical or legal e.g. erected building, not that which is planned
b. Future do not exist in actuality, but whose existence can reasonably be expected with more or less probability e.g.
ungathered fruits

7. By reason of contents and constitution
a. Singular
i. Simple
ii. Compound
b. Universal when several things collectively form a single object in law under one name, which may be in fact e.g.
warehouse, herd OR in law e.g. inheritance or dowry

8. By reason of susceptibility to appropriation
a. Non-appropriable
b. Appropriable
i. Already appropriated
ii. Not yet appropriated

9. By reason of susceptibility to commerce
a. Within the commerce of man
b. Outside the commerce of man


II. OWNERSHIP

A. Definition

OWNERSHIP
y J. B. L. Reyes: It is independent right of exclusive enjoyment and control of a thing for the purpose of deriving therefrom all the
advantages required by the:
o Reasonable needs of the owner (or holder of the right) and
o Promotion of the general welfare
But subject to the restrictions imposed by:
o Law
o Rights of others
y Scialoja: It is a relation in private law by virtue of which is a thing (or property right) pertaining to one person is completely
subjected to his will in everything not prohibited by public law or the concurrence with the rights of another
o Sir actually prefers this definition

B. Bundle of Rights included in Ownership

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.

y Jus Utendi right to use and enjoy the property without destroying its substance
y Jus Abutendi right to use and enjoy by consuming the thing by its use
y Jus Fruendi right to receive the fruits
y Jus Disponendi right to dispose or the power of the owner to alienate, encumber, transform and even destroy the thing
owned
y Jus Vindicandi right to recover a thing

C. Other Specific Rights found in the Civil Code

1. Right to exclude; self-help; Doctrine of Self-help
Art 429 see above
ELEMENTS OF SELF-HELP

2. Right to enclose or fence
Art 430 Every owner may enclose of fence his land or tenements by means of walls, ditches, live or dead hedges, or by any
other means without detriment to servitudes consisted thereon.

3. Right to receive just compensation in case of expropriation
Art 435 No person shall be deprived of his property except by competent authority and for public use and always upon just
compensation.

4. Right to hidden treasure
Art 438 Hidden treasure belongs to the owner of the land, buiding 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
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.

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.

5. Right to space and subsoil
Art 437

6. Right to accession
Art 440 The ownership of property gives the right by accession to:

o Everything which is produced thereby (accession discreta)
o Incorporated or attached thereto, either naturally or artificially (accession continua)

7. Right to recover possession and/or ownership (jus vindicandi)

a. Available actions to Recover Possession/Ownership

i. For immovable property
1) Accion reivindicatoria - recovery of dominion of property as owner; main issue is ownership not merely possession.
2) Accion publiciana - plenary action to recover possession when owner is dispossessed by any other means than the grounds for
instituting a forcible entry and unlawful detainer case.
3) Forcible entry - used by person deprived of possession through Force, Intimidation, Strategy, Threat or Stealth (FISTS)
4) Unlawful detainer - used by lessor/person having legal right over property when lessee/person withholding property refuses to
surrender possession of property after expiration of lease/right to hold property (physical possession, 1 year from the last date of
demand to vacate the premises)
5) Writ of possession
6) Writ of injunction

HILARIO v SALVADOR (2005)
SAMPAYANG v CA (2005)
SANTOS v AYON (2005)
GANILA v CA (2005)
ROSS RICA SALES CENTER v SPS. ONG (2005)
PERALTA-LABRADOR v BUARIN (2005)

ii. For movable property
1) Replevin

b. Requisites for recovery
Art 434 In an action to recover, the property must be identified, and the plaintiff must rely on the strength of his
title and not on the weakness of the defendants claim.

i. Identify the property
SERINA v CABALLERO (2004)

ii. Prove his right of ownership rely on the strength of his evidence not on the weakness of defendants
PEREZ v MENDOZA (1975)
DIZON v CA (1993)

D. Limitations of Real Right of Ownership

1. General Limitation
a. Police power salus populi suprema est lex
Art 436 When any property is condemned or seized by competent authority in the interest of health, safety or
security, the owner thereof shall not be entitled to compensation, UNLESS he can show that such condemnation or
seizure is unjustified.
b. Taxation
c. Eminent domain
Art 435

2. Specific Limitation
a. Legal servitudes
b. Limitations imposed by party transmitting the property
i. By contract or last will or donation
ii. Stipulation on inalienability

3. Limitation from scattered provisions of CC

Art 431 The owner of a thing cannot make use thereof in such manner as to injure the rights of a third person.
Sis utere tuo ut alienum no laedas

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 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
Act in state of necessity
Art 2191 Proprietors shall also be responsible for damages caused:
(1) By the explosion of machinery which has not been taken care of with due diligence, and the inflammation of explosive
substances which have not been kept in a safe and adequate place
(2) By excessive smoke, which may be harmful to persons or property
(3) By the falling of trees situated at or near highways or lanes, if not caused by force majeure
(4) By emanations from tubes, canals, sewers or deposits of infectious matter, constructed without precautions suitable to
the place

Art 670 Distances for windows, apertures, balconies or other similar projection which afford direct and oblique views
Art 677 Constructions near fortified places or fortresses
Art 678 Building of aqueduct, well, sewer, furnace, chimney, stable, depository of corrosive substances, machinery or factory
Art 679 Planting of trees near a tenement
Art 649 Easement of right of way
Art 652 Acquisition of piece of land without right of way
Art 637 Receipt of lower estates of waters which naturally descend from higher estates
Art 676 Easement of drainage
Art 644 Limitations on the imposition of easement of aqueduct
Art 684-687 Lateral and subjacent support

US v CAUSBY ( )
LUNOD v MENESES ( )


III. RIGHTS OF ACCESSION

A. Concept
Art 440 The ownership of property gives the right by accession to everything which is produced thereby, or which is incorporated or
attached thereto, either naturally or artificially.

DEFINITIONS OF ACCESSION
y Tolentino: Right by virtue of which the owner of a thing becomes the owner of everything that the thing may produce or which
may be inseparably united or incorporated thereto, either naturally or principally.
y J. B. L. Reyes: Extension of ownership over a thing to whatever is incorporated thereto naturally or artificially (without or with
labor of man)
- Incorporation means a stable union or adherence, not mere juxtaposition
- Accession is one of the bundle of rights of ownership and is not a mode of acquiring property
- It does not depend upon a new title

B. General Principles of Accession

1. Applicable to BOTH accession discreta and accession continua

a. Accessory follows the principal (Accessor siquitur principale)
b. No one shall be unjustly enriched at the expense of another

2. Applicable to ACCESSION CONTINUA alone

a. Whatever is built, planted or sown on the land of another and the improvements or repairs made thereon, belongs
to the owner of the land, subject to the provisions of the following articles. Art 445
b. All works, sowing and planting are presumed made by owner and at his expense, unless the contrary is proved. Art
446
c. Accessory is incorporated to principal only when cannot be separated without injury to the work constructed or
destruction to plantings, construction or works. 2
nd
phrase, Art 447
d. Bad faith involves liability for damages and other dire consequences.
e. Bad faith of one party neutralizes bad faith of the other. Art 453

3. Applicable to ACCESSION DISCRETA alone

a. Ownership of fruits To owner of principal thing belongs the NATURAL, INDUSTRIAL and CIVIL fruits Art 441

EXCEPTIONS:
iii. Possession in good faith
iv. In usufruct
v. In lease (although civil fruits go to the owner)
vi. In antichresis

C. Obligations of Receiver of Fruits to Pay Expenses by 3
rd
person in production, gathering and preservation

Art 443 He who receives the fruit has the obligation to pay the expenses made by a third person in their production, gathering and
preservation.
BASIS: no one may unjustly enrich himself at the expense of another
Characteristics of expenses covered:
o Dedicated to the annual production and not for the improvement of the property
o They must not be unnecessary, excessive or for pure luxury, but must be of such an amount naturally required by the
condition of the work cultivation made
Even if expenses exceed the value of fruits, owner must pay expenses just the same, because the law makes no distinction. He
who is entitled to the benefits must bear the rishk and losses.
WHAT MAY JUSTIFY NON-PAYMENT OF FRUITS: Owner may permit possessor to complete the harvesting of fruits
Fruits not yet gathered and possessor is in bad faith: owner need not pay (Art 449)
Fruits already gathered: owner has to pay, accession continua does not apply because fruits have already been separated from
the immovable. This provision makes no distinction as to good faith and baith faith.

D. Kinds of Accession

1. Accession Discreta (Fruits)

Art 440 The ownership of property gives the right by accession to:
o everything which is produced (accession discreta)
o incorporated or attached thereto, either naturally or artificially (accession continua)

a. Natural products of the soil in whose generation human labor does not intervene
b. Industrial if it implies some kind of cultivation or labor
c. Civil rents of lands and buildings, and certain kinds of incomes obtained from the land or building itself

BACHRACH v SEIFERT ( )
BACHRACH v TALISAY ( )

2. Accession Continua

Over Immovables

1. Artificial or Industrial Building, Planting, Sowing

a. Owner is BPS using material of another (LO-BPS and OM)
Art 447 The LO who makes thereon, personally or through another, plantings constructions, or works with the materials of another,
shall pay their value and if he acted in bad faith, he shall also be obliged to the reparation of the damages. The OM shall have the
right to remove them only in case he can do so without injury to the work constructed, or without the plantings, constructions or
work being destroyed. However, if the LO acted in bad faith, the OM may remove them in any event, with a right to be indemnified
for damages.

y LO in good faith
Acquire BPS by paying the value of materials

y LO in bad faith

b. BPS builds, plants or sows on anothers land using his own material (LO and BPS-MM)
Art 448 The
Art 449 The
Art 450 The
Art 451 The
Art 452 The
Art 453 The
Art 454 The

y BPS in good faith
Art 448 The

y BPS in bad faith
Art 449 The
Art 450 The
Art 451 The

i. Options open to owner of the land

1) To acquire building, planting and sowing
BP has right of retention
- Retains possession without paying rental
- Not entitled to fruits; his rights are the same as an antichretic creditor

2) To sell land to BP OR to lease land to S
BP may refuse if value of land considerably more than BP; then forced lease by LO and BP
BPS in bad faith


ii. Rights of BPS in bad faith
Art 452 The
Art 443 The

Landowner in bad faith but BPS in good faith
Art 454
Art 447
Reason for adverting to rule in Art 447

c. BPS builds, plants or sows on anothers land with materials owned by 3
rd
persons
Art 455 The

N.B.: Good faith does not exclude negligence
Art 456 The

BERNARDO v BATACLAN ( )
IGNACIO v HILARIO ( )
SARMIENTO v AGANA ( )
DEPRA v DUMLAO ( )
TECHNOGAS PHIL v CA ( )
ORTIZ v KAYANAN ( )
GEMINIANO v CA ( )
PLEASANTVILLE DEVT CORP v CA ( )
FELICES v IRIOLA ( )
SPOUSES NUGUID v CA (1993)
SPOUSES NUGUID v CA (2005)

2. Natural (Accession Continua Natural)

a. Alluvium
Art 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.

REQUISITES FOR LAND ACCRETION TO TAKE PLACE FOR THE BENEFIT OF THE RIPARIAN OWNER
(1) Deposit be gradual and imperceptible - exclusive work of nature
(2) Made through the effects of the current of the water
(3) The land where accretion takes place is adjacent to the banks of the river
Banks of a river lateral strips or zones of its bend which are washed by the stream only during such high floods as do not
cause inundations or to the point reached by the river at high tide
When is alluvion formed? When the deposit of sediment has reached a level higher than the highest level of water during the
year.
Alluvion belongs to riparian owner from the time that the deposit created by the current of the water becomes manifest

REPUBLIC v CA ( )
GRANDE v CA ( )
MENESES ( )

b. Avulsion
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 ownership of it, provided that
he removes the same within 2 years.

NAVARRO ( )

c. Change of Course of River
Art 461 The
Art 462 The
Art 463 The

BAES v CA ( )
BINALAY v MANALO


d. Formation of Islands
Art 461 The
Art 462 The
Art 463 The
Art 464 The
Art 465 The
See PD 1067

3. Reverse Accession
Art 120, FC The
Art 321, CC The

Over Movables

1. Conjunction and Adjunction

a. Inclusion or Engraftment

b. Soldadura or Soldering
i. Plumbatura different metals
ii. Ferruminatio same metal

c. Tejido or Weaving

d. Escritura or Writing

e. Pintura or Painting

2. Commixtion and Confusion

SIARI VALLEY ESTATES v LUCASAN (1955)
SANTOS v BERNABE ()

3. Specification

IV. QUIETING OF TITLE

A. Differences between Action to Quiet Title and Action:

Action to Quiet Title Action to Remove a Cloud
Substantially an action for the purpose of putting an end to
vexatious litigation in respect to the property involved
Procure the cancellation, delivery of, release of an instrument,
encumbrance or claim constituting a claim on the plaintiffs title
and which may be used to injure or vex him in the enjoyment of his
title
Plaintiff asserts his own estate and declares generally that
defendant claims some estate in the land, without defining it and
avers that the claim is without foundation and calls on the
defendant to set forth the nature of his claim so that it may be
determined by decree
Plaintiff not only declares his own title but also avers the source
and nature of the defendants claim, points out its defect, and
prays that it be declared void

Action to Quiet Title Action to Prevent a Cloud
Relief is granted if the threatened or anticipated cloud is one which
if it existed, would be removed by suit to quit title

Cloud on a title an outstanding instrument, record, claim, incumbrance or proceeding which is actually invalid or inoperative,
but which may nevertheless impair or affect injuriously the title to the property.
It must have a prima facie appearance of validity or legal efficacy.
Cloud on a title must have a semblance of validity which appears in some legal form but which is in fact unfounded.
Invalidity or inoperativeness must be proven by an extrinsic evidence.

B. Prescription of Action to Quiet Title

y If plaintiff is in possession: imprescriptible
y If plaintiff is not in possession: prescribes within period of filing accion publiciana, accion reivindicatoria

OLVIGA v CA (1993)
PINGOL v CA (1993)

C. Who are Entitled to Bring Action?
Rule 64, Sec. 1, Par 2, Rules of Court The

D. Notes

1. There is a cloud on title to real property or any interest to real property.
Art 476 Whenever there is a cloud on title to real property OR any interest therein, by reason of any instrument, record, claim,
encumbrance, or proceeding which is apparently valid or effective but is in truth and in fact invalid, ineffective, voidable or
unenforceable, and may be prejudicial to said title, an action may be brought to remove such cloud or to quiet the title.
An action may also be brought to prevent a cloud from being cast upon title to real property or any interest therein.
2. Plaintiff has legal or equitable title to or interest in the subject/real property.
3. Instrument record claim, etc must be valid and binding on its face, but in truth and in fact, invalid, ineffective, voidable or
unenforceable.
4. Plaintiff must return benefits received from defendant.

TITONG v CA (1998)

5. Actions to quiet title are proceedings quasi in rem.

SPS. PORTIC v CRISTOBAL (2005)


V. CO-OWNERSHIP

A. Definition

CO-OWNERSHIP
y The right of common dominion which two or more persons have a spiritual part (or ideal portion) or a thing which is not
physically divided.

B. Characteristics of co-ownership

1. There is plurality of owners, but only one real right of ownership.
2. The recognition of ideal shares, defined but not physically identified.
3. Each co-owner has absolute control over his ideal share.
4. Mutual respect among co-owners in regard to use and enjoyment and preservation of thing as a whole.

PARDELL v BARTOLOME ( )

C. Differences between Co-ownership and Joint Tenancy

Co-ownership Joint Tenancy

D. Differences between Co-ownership and Partnership

Co-ownership Partnership

GATCHALIAN v COLLECTOR ( )

E. Source of Co-ownership

1. Law

i. Cohabitation
Art 147, FC
Art 148, FC
Art 90

ii. Purchase
Art 1452

iii. Succession
y Intestate: Art 1452
y Testate: Property is given to 2 or more heirs

iv. Donation
Art 753
Art 573, 2
nd
Par

v. Chance
Art 472

SIARI VALLEY ESTATE v LUCASAN ()

vi. Hidden treasure
Art 348

vii. Easement of party wall

Art 658

viii. Occupation

PUNZALAN v BOON LIAT ( )

ix. Condominium Law
Sec 6 (c), RA 4726

2. Contracts

a. By agreement
Duration of co-ownership: Art 494

b. Universal partnership
Art 1778
Art 1779
Art 1780

c. Associations and societies with secret articles
Art 1775

F. Rights of each co-owner as to the thing owned in common

1. To use the thing according to the purpose intended may be altered by agreement, express or implied, provided:
a. It is without injury or prejudice to interest of co-ownership and;
b. Without preventing the use of other co-owners
Art 486

PARDELL v BARTOLOME ( )

2. To share in the benefits in proportion to his interest, provided the charges are borne by each in the same proportion
Art 485

y Contrary stipulation is void
y Presumption is that portions are equal unless contrary is proved

3. Each co-owner may bring an action in ejectment
Art 487

RESUENA v CA (2005)
ACABAL v ACABAL (2005)

4. To compel other co-owner to contribute:
a. to expenses for preservation of the thing or right owned in common
b. to payment of taxes
Art 488

y Co-owners option not to contribute by waiving his undivided interest equal to amount of contribution dacion en pago
Exception: if waiver is prejudicial to co-ownership
y Requisites before repairs for preservation may be made or expenses for embellishment or improvement may be made
Art 489
y Effects of failure to notify co-owners

5. To oppose any act of alteration

Remedy of other co-owners re acts of alteration
Art 491

ACTS OF ALTERATION


a. Concept
y Any change injurious to the thing owned in common or to the rights of other co-owners or
y Any change material to the use, destination or state of thing which act is in violation of the express or tacit agreement
of the co-owners

b. Distinguished from acts of administration
Art 492

Acts of Alteration Acts of Administration

c. Effect of acts of alteration and remedies of non-consenting co-owner

QUERY: Is lease of real property owned in common an act of alteration?
Art 647
in relation to Art 1878 (8)

6. To protect against acts of majority which are prejudicial to minority
Art 492, 3
rd
Par

LAVADIA v COSME ()
MELENCIO v DY TIAO LAY ()
TUASON v TUASON ()

7. To exercise legal redemption
Art 1620
Art 1623

MARIANO v CA ()
VERDAD v CA ()

8. To ask for partition
Art 494

RAMIREZ v RAMIREZ ()
AGUILAR v CA (1993)
VDA DE APE v CA (2005)

9. Other cases where legal right of redemption is given
Art 1621
Art 1622

HALILI v CA (1998)
FRANCISCO v BOISER (2000)

G. Implications of co-owners right over his ideal share

1. Co-owner has the right:

a. To share in fruits and benefits
b. To alienate, mortgage or encumber and dispose of his ideal share
BUT: Other co-owners may exercise right of legal redemption
c. To substitute another person in the enjoyment of thing
d. To renounce part of his interest to reimburse necessary expenses incurred by another owner
Art 488

2. Effect of transaction by each co-owner

a. Limited to his share in the partition
b. Transferee does not acquire any specific portion of whole property until partition
c. Creditors of co-owners may intervene in partition or attack the same if prejudicial

Art 499
EXCEPT that creditors cannot ask for rescission even if not notified in the absence of fraud
Art 497

CARVAJAL v CA ()
PAMPLONA v MORETO ()
CASTRO v ATIENZA ()
ESTOQUE v PAJIMULA ()
DIVERSIFIED CREDIT v ROSADO ()
PNB v CA ()

H. Rules on co-ownership not applicable to conjugal partnership of gains or absolute community of property

I. Special rules on co-ownership of different stories of a house as differentiated from provisions of Condominium Law
(Act No. 4726)

1. Concept of Condominium

2. Essential requisites for Condominium

3. Rights and obligations of Condominium owner

SUNSENT VIEW CONDOMINIUM v JUDGE CAMPOS (1981)

J. Extinguishment of co-ownership

1. Total destruction of thing

2. Merger of all interests in one person

3. Acquisitive prescription

a. By a third person
b. By one co-owner as against the other co-owners
y REQUISITES - Unequivocal acts of:
i. Unequivocal acts of repudiation of co-ownership (acts amounting to ouster of other co-owners) known to
other co-owners and shown by clear and convincing evidence
ii. Open and adverse possession, not mere silent possession for the required period of extraordinary
acquisitive prescription
iii. The presumption is that possession by co-owner is not adverse

CAPITLE v DE GABAN (2004)

4. Partition or division

a. Right to ask for partition at any time, EXCEPT:

i. When there is a stipulation against it (should not be over 10 years)
Art

ii. When condition of indivision is imposed by transferor (donor or testator) not exceeding 20 years
Art 494

iii. When the legal nature of community prevents partition (party wall)
Art

iv. When partition is generally prohibited by law
E.g. absolute community of property

v. When partition would render the thing unserviceable (but the thing may be sold and co-owners divide the proceeds)
Art 494
Action for partition will fail if acquisitive prescription has set in

b. Effect of partition
Art 1091
Art 543
Art 1092
Art 1093
Art 499
Art 500
Art 501

c. Right of creditors of individual co-owners
Art 497

d. Procedure for partition
Rule 69, Rules of Court

VI. POSSESSION

A. Definition and Concept

POSSESSION
y Is the holding of a thing OR the enjoyment of a right, whether by material occupation or by the fact that the thing or the right is
subjected to the action of our will
y It is a real right independent of and apart from ownership i.e. the right of possession (jus possessionis) as distinguished from the
right to possess (jus possidendi)

B. Essential Requisites of Possession

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

a. The material or physical holding or occupation either
b. Exercise of a right
c. Constructive possession (intention to possess is very crucial)

RAMOS v DIRECTOR OF LANDS ( )
DIRECTOR v CA ( )

2. Intention to possess (animus possidendi)

C. Degrees of Holding of Possession

1. Mere holding or possession without title whatsoever and in violation of the right of the owner
E.g. possession of a thief/robber or a usurper of land

2. Possession with a juridical title, but not that of ownership
E.g. possession of tenant, depository agent, bailee, trustee, lessee, antichretic creditor.
y This degree of possession will never ripen into full ownership as long as there is no repudiation of concept under which
property is held.

3. Possession with a just title or title sufficient to transfer ownership, but not from the true owner
E.g. possession of a vendee from vendor who pretends to be the owner
y This degree of possession ripens into full ownership by lapse of time.

4. Possession with a just title from the true owner
y The delivery of possession transfers ownership, and strictly speaking, is the jus possidendi.

D. Cases of Possession

1. Possession for oneself or possession exercised in ones own name and possession in the name of another
Art 524

2. Possession in the concept of an owner and possession in the concept of a mere holder with the ownership belonging to another
Art 525

3. Possession in good faith and possession in bad faith
Art 526

PLEASANTVILLE DEVT CORP v CA ( )

a. Mistake upon a doubtful or difficult question of law as a basis of good faith

KASILAG v ROQUE (1939)


E. What things or rights may be possessed

Art 530 Only things or rights susceptible of appropriation may be the object of possession

F. What may not be possessed by private persons

1. Res Communes

2. Property of public dominion

3. Right under discontinuous and/or non-apparent easement

G. Acquisition of Possession

1. Ways of acquiring possession
Art 531

a. Material occupation of the thing

b. Subject to the action of our will
i. Doctrine of constructive possession
ii. Includes constructive delivery
1) Traditio brevi manu thing is already in transferees hands
y E.g. under a contract of lease, then delivered under a sale
2) Traditio constitutum possessorium thing remains in transferors hands
y E.g. sale, then retained under a commodatum

c. Proper acts and legal formalities
y Refers to the acquisition of possession by:
- Sufficient title
- Inter vivos
- Mortis causa
- Lucrative or onerous
y Includes traditio longa manu and tradition simbolica, donations, succession (testate or intestate), contracts, judicial
writs of possession, writ of execution of judgments, execution and registration of public instruments

BANCO ESPANOL FILIPINO v PETERSON ( )

2. By whom possession be acquired
Art 532

a. By same person
ELEMENTS OF PERSONAL ACQUISITION
1. Capacity to acquire possession
2. Intention to possess
3. Possibility of acquiring possession
b. By his legal representatives
REQUISITES

c. By his agent

d. By any person without any power whatsoever but subject to ratification, without prejudice to the proper case of negotiorum
gestio
Art 2144
Art 4129
Art 2150

e. Qualifiedly, minors and incapacitated persons
Art 535

3. What do not affect possession

Art 537
Art 1119

a. Acts merely tolerated
Art 537

MACASAET v MACASAET (2004)

b. Acts executed clandestinely and without the knowledge of the possessor
Art 537

c. Acts by violence as long as possessor objects thereto (i.e. he files a case)
Art 536

CUAYCONG v BENEDICTO ()
ASTUDILLO v PHHC ()
PERAN v CFI ()

4. Rule to solve conflict of possession
Art 538

GENERAL RULE: Possession cannot be recognized in two different personalities.
EXCEPTION: In cases of co-possession by co-possessors without conflicting claims or interest

In case of conflicting possession, preference is given to:
a. Present possessor or actual possessor
b. If there are 2 or more possessors, the one longer in possession
c. If dates of possession are the same, the one who presents a title
d. If all conditions are equal, the thing shall be placed in judicial deposit pending determination of possession or ownership
through proper proceedings

H. Effects of Possession

1. In general, every possessor has a right to be respected in his possession; if disturbed therein, possessor has right to be protected in
or restored to said possession
Art 539

a. Actions to recover possession

i. Accion interdictal or Summary proceedings forcible entry and unlawful detainer
- Plaintiff may ask for writ of preliminary mandatory injunction
- Within 10 days from the filing of complaint in forcible entry
Art 539

YU v HONRADO ( )

ii. Accion publiciana based on superior right of possession, not ownership

iii. Accion reivindicatoria recovery of ownership, including the right to possess

iv. Action for replevin possession or ownership for movable property

b. Lawful possessor can employ self-help
Art 429

2. Entitlement to fruits possessor in good faith/bad faith
Art 544
Art 549

3. Reimbursement for expenses possessor in good faith/bad faith
y Liability for loss or deterioration of property by possessor in bad faith
Art 553

Art 552

4. Possession of movable acquired in good faith (in concept of owner) is equivalent to title
Art 559
y Possessor has actual title which is defeasible only by true owner
y One who has lost a movable or has been unlawfully deprived thereof may recover it but without reimbursement
EXCEPT: If possessor acquired it at a public sale

I. Effect of possession in the concept of an owner

1. Possession may by lapse of time ripen into full ownership, subject to certain exceptions.

2. Presumption of just title and cannot be obliged to show or prove it
Art 541
EXCEPTION: Art 1131

3. Possessor may bring all actions necessary to protect his possession except accion reivindicatoria

4. May employ self-help under Art 429

5. Possessor may ask for inscription of such real right of possession in the Registry of Property

6. Has rights to fruits and reimbursements for expenses (assuming he is a possessor in good faith)

7. Upon recovery of possession which he has been unlawfully deprived, may demand fruits and damages

8. Generally, he can do on the things possessed everything that the law authorizes the owner to do until he is ousted by the one who
has a better right

9. Possession in good faith and possession in bad faith
Art 528
y Mistake upon a doubtful or difficult question of law as a basis of good faith
Art 526, Par 3

J. Presumptions in favor of the possessor

1. Of good faith until the contrary is proved
Art 528

2. Of continuity of initial good faith in which possession was commenced or possession in good faith does not lose his character except
in the case and from the moment possessor became aware or is not unaware of improper or wrongful possession
Art 528

CORDERO v CABRAL ( )

3. Of enjoyment of possession in the same character in which possession was acquired until contrary is proved
Art 529

4. Of non-interruption of possession in favor of present possessor who proves possession at a previous time until the contrary is
proved
Art 554
Art 1120
Art 1121
Art 1122
Art 1123
Art 1124

5. Of continuous possession or non-interruption of possession of which he was wrongfully deprived for all purposes favorable to him
Art 561

6. Other presumptions with respect to specific properties of property rights


a. Of extension of possession of real property to all movables contained therein so long as it is not shown that they should
be excluded
Art 426

b. Non-interruption of possession of hereditary property
Art 533
Art 1078

c. Of just title in favor of possessor in concept of owner
Art 541
cf. Art 1141

K. Possession may be lost by

1. Abandonment
2. Assignment, either onerous or gratuitous
3. Destruction or total loss of thing or it goes out of commerce
4. Possession by another; if possession has lasted longer than one year; real right of possession not lost until after 10 years
y Subject to Art 537 (on acts merely tolerated, etc)

A.
VII. USUFRUCT

A. Concept

Art 562

USUFRUCT
y Is a real right, temporary in character that authorizes the holder to enjoy all the advantages derived from a normal exploitation
of anothers property, according to its destination or purpose, and imposes an obligation of restoring at the time specified,
either the thing itself or its equivalent.

B. Historical Considerations

C. Characteristics of Usufruct

D. Usufruct Distinguished from Lease; from Servitude

Usufruct Lease

Usufruct Servitude

E. Classes of Usufruct

1. By origin

a. Voluntary
b. Legal
Art 321
Art 226, FC
c. Mixed

2. By person enjoying the right of usufruct

a. Simple
b. Multiple
i. Simultaneous
ii. Succession
Limitation on successive usufruct
Art 756
Art 863
Art 869

3. By object of usufruct

a. Rights
Art 574
b. Things
i. Normal
ii. Abnormal, irregular or quasi-usufruct

4. By the extent of usufruct

a. As to the fruits
i. Total
ii. Partial

Art 598

b. As to object
i. Singular
ii. Universal
Art 595

Subject to provisions of:
Art 758
Art 759

5. By the terms of the usufruct
Art 564

a. Pure
b. Conditional
c. With a term (period)

F. Rights of Usufructuary

1. As to the thing and its fruit

a. Right to possess and enjoy the thing itself, its fruits and accessions
y Fruits consist of natural, industrial and civil fruits
y As to hidden treasure, usufructuary is considered a stranger
Art 566
Art 436
y Fruits pending at the beginning of usufruct
Art 567
y Civil fruits
Art 569
Art 588

b. Right to lease the thing
Art 572
y Limitations
y Liability of usufructuary
Art 590
y Exceptions to right of leasing the thing

FABIE v DAVID ()

c. Right to improve the thing
Art 579

2. As to the legal right of usufruct itself

a. Right to mortgage
Right of usufruct
Art 572

b. Right to alienate the usufruct
EXCEPT:
y In purely personal usufructs
y When title constituting it prohibits the same

G. Rights of Naked Owner

1. At the beginning, during, and termination of usufruct
(See obligations of usufructuary at the beginning of the usufruct)


2. During the usufruct
a. Retains title to the thing or property
b. He may alienate the property
Limitations:
Art 581

H. Obligations of Usufructuary

1. At the beginning of usufruct or before exercising the usufruct

a. To make inventory
Art 583

i. REQUISITES OF INVENTORY
1) Immovables described
2) Movables appraised

ii. EXCEPTION TO REQUIREMENT OF INVENTORY
1) No one will be injured thereby
Art 585
2) Title constituting usufruct excused the making of inventory
3) Title constituting usufruct already makes an inventory

b. To give a bond for the faithful performance of duties as usufructuary

i. No bond are required in the following:
1) No prejudice would result
Art 585
2) Usufruct is reserved by donor
Art 584
3) Title constituting usufruct excused usufructuary
4) If usufructuary takes possession under a caucion juratoria

ii. Effect of filing a bond
Art 588

iii. Effect of failure to give bond
Art 586
Art 599

2. During the usufruct

a. To take care of the thing like a good father of a family
Art 589

Effect of failure to comply with obligation
Art 610

b. To undertake ordinary repairs
Art 592
ORDINARY REPAIRS

c. To notify owner of need to undertake extra-ordinary repairs
Art 593
EXTRA-ORDINARY REPAIRS
1) Concept of extraordinary repairs
2) Naked owner obliged to undertake them but when made by owner, usufructuary pays legal interest on the amount
while usufruct lasts
Art 594, 1
st
Par
3) Naked owner cannot be compelled to undertake extraordinary repairs
If indispensable and owner fails to undertake extraordinary repairs, it may be made by usufructuary;
Repairs usufructuary rights

Art 594, 2
nd
Par

d. To pay for annual charges and taxes on the fruits

BD. OF ASSESSMENT APPEALS OF ZAMBOANGA DEL SUR v SAMAR MINING COMPANY INC ()

e. To notify owner of any act detrimental to ownership
Art 601

f. To shoulder the costs of litigation re usufruct
Art 602

g. To answer for fault or negligence of alienee, lessee or agent of usufructuary
Art 590

3. At the time of termination of the usufruct

a. To deliver the thing in usufruct to the owner in the condition in which he has received it, after undertaking ordinary repairs
EXCEPTION: abnormal usufruct

I. Special Cases of Usufruct

1. Usufruct over a pension or periodical income
Art 570

2. Usufruct of property owned in common
Art 582

3. Usufruct of head of cattle
Art 591

4. Usufruct over vineyards and woodlands
Art 575
Art 576

5. Usufruct on a right of action
Art 578

6. Usufruct on mortgaged property
Art 600

7. Usufruct over an entire patrimony
Art 598
Liability of usufructuary for debts

8. Usufruct over deteriorable property
Art 578

9. Usufruct over consumable property (or quasi-usufruct)
Art 574

J. Extinguishment of Usufruct
Art 603

1. Death of usufructuary
EXCEPTION: unless a contrary intention clearly appeals

2. Expiration of period or fulfillment of resolutory condition imposed on usufruct by person constituting the usufruct
y Time may elapse before a third person attains a certain age, even if the latter dies before period expires unless granted only
in consideration of his existence
Art 606


BALURAN v NAVARRO ()
NHA v CA ()
BULACAN GARDEN CORP v MANILA SEEDLING BANK ()

3. Merger of rights of usufruct and naked ownership in one person

4. Renunciation of usufruct
a. Limitations
b. Must be express
c. If made in fraud of creditors, waiver may be rescinded by them through action under Art 1381

5. Extinction or loss of property

a. If destroyed property is insured before the termination of the usufruct
Art 608

1. When insurance premium paid by owner and usufructuary
Art 608, 1
st
Par
i. If owner rebuilds, usufruct subsists on new building
ii. If owner does not rebuild, interest upon insurance proceeds paid to usufructuary

2. When the insurance taken by owner only because usufructuary refuses
Art 608, 2
nd
Par
i. Owner entitled to insurance money (no interest paid to usufructuary)
ii. If he does not rebuild, usufruct continues over remaining land and/or owner may pay interest on value of both
Art 607
iii. If owner rebuilds, usufruct does not continue on new building, but owner must pay interest on value on land and
old materials

3. When insurance taken by usufructuary only depends on value of usufructuarys insurable interest (not provided for in the
Civil Code)
i. Insurance proceeds to usufructuary
ii. No obligation to rebuild
iii. Usufruct continues on the land
iv. Owner does not share in insurance proceeds

b. If destroyed property is not insured
Art 607

1. If building forms part of an immovable under usufruct
i. If owner does not rebuild, usufruct continues over the land and materials
ii. If owner rebuilds, usufructuary must allow owner to occupy the land and to make use of materials, but value of
both land and materials (____???)

6. Termination of right of person constituting the usufruct

7. Prescription

Cases covered:
a. If third party acquires ownership of thing or property in usufruct
b. Right of ownership lost through prescription
c. Right of usufruct not began within prescriptive period
d. If there is a tacit abandonment or non-user of thing held in usufruct for required period

8. What do not cause extinguishment of usufruct

a. Expropriation of thing in usufruct
Art 609

b. Bad use of thing in usufruct
Art 810

Owners right

c. Usufruct over a building
Art 607
Art 608


K.
VIII. EASEMENTS OR SERVITUDES

A. Definition

EASEMENT or REAL SERVITUDES
y Is a real right which burdens a thing with a prestation consisting of determinate servitudes for the exclusive enjoyment of a
person who is not its owner or of a tenement belonging to another,
y Is the real right over an immovable by nature i.e. land and buildings, by virtue of which the owner of the same has to abstain
from doing or to allow somebody else to do something in his property for the benefit of another thing or person.

B. Essential feature of easements/real servitudes/praedial servitudes

1. It is a real right, i.e. it gives an action in rem or real action against any possessor of servient estate.

2. It is a right enjoyed over another property (jus in re aliena or a right in the property of another) i.e. it cannot exist in ones own
property (nemini nulli res sua servit or no one can have servitude on a property of his own).

3. It is a right constituted over an immovable by nature (land and buildings), not over immovables.

4. It limits the servient owners right of ownership for the benefit of the dominant estate Right of limited use, but no right to possess
servient estate. Being an abnormal limitation of ownership, it cannot be presumed.

5. It creates a relation between tenements.

6. It cannot consists in requiring the owner of the servient estate to do an act (servitus in faciendo consistere nequit or servitudes may
not impose positive acts) unless the act is accessory to a praedial servitude (obligation propter rem)

7. Generally, it may consist in the owner of the dominant estate demanding that the owner of the servient estate refrain from doing
something (servitus in non faciendo), or that the latter permit that something be done over the servient property (servitus in
patendo), but not in the right to demand that the owner of the servient estate to do something (servitus in faciendo) EXCEPT if such
act is an accessory obligation to a praedial servitude (obligation propter rem)

CHARACTERISTICS OF EASEMENTS (Nos. 8-11)

8. It is inherent or inseparable from estate to which they actively or passively belong.
Art 617

9. It is intransmissible, i.e. it cannot be alienated separately from the tenement affected, or benefited.

10. It is indivisible.
Art 616

11. It has permanence, i.e. once it attaches, whether used or not, it continues and may be used anytime.

C. Classification of Servitudes

1. As to recipient of benefits

a. Real or Praedial
b. Personal
N.B.: Under Roman Law, usufruct together with usus habitatio, and operae servorum were classified as personal servitude]
Art 614

2. As to course or origin

a. Legal, whether for public use or for the interest of private persons
Art 634
b. Voluntary

3. As to its exercise
Art 615

a. Continuous
b. Discontinuous

4. As indication of its existence
Art 615

a. Apparent
b. Non-apparent

5. By the object or obligation imposed
Art 616

a. Positive
b. Negative
y Prescription starts to run from service of notarial prohibition

D. General rules relating to servitudes

1. No one can have a servitude over his own property (nulli res sua servit)
2. A servitude cannot consist in doing (servitus in faciendo consistere nequit)
3. There cannot be a servitude over another servitude (servitus servitudes esse non potest)
4. A servitude must be exercised civiliter, i.e. in a way least burdensome to the owner of the land.
5. A servitude must have a perpetual cause.

E. Modes of acquiring easements

NORTH NEGROS v HIDALGO ()

1. By title
y Juridical act which give rise to the servitude e.g. law, donations, contracts or wills

DUMANGAS v BISHOP OF JARO ()

a. If easement has been acquired but no proof of existence of easement available, and easement is one that cannot be acquired
by prescription, then
i. May be cured by deed of recognition by owner of servient estate
ii. By final judgment
iii. Existence of an apparent sign considered a title
Art 624

AMOR v FLORENTINO ()

2. By prescription

RONQUILLO v ROCO ()

F. Rights and obligations of owners of dominant and servient estates

Dominant Estate

1. Right of owner of dominant estate

a. To use the easement
Art 626
To exercise all rights necessary for the use of the easement
Art 625
b. To do, at his expense, all necessary works for the use and preservation of the easement
Art 627

c. In a right of way, to ask for change in width of easement sufficient for needs of dominant estate
Art 651

DE LUNA v ENCARNACION ()

2. Obligations of the owner of dominant estate

a. To use the easement for benefit of immovable and in the manner originally established
Art 626
b. To notify owner of servient estate before making repairs and to make repairs in a manner least inconvenient to servient
estate
Art 627
c. Not to alter easement or render it more burdensome
Art 627

VALDERRAMA v NORTH NEGROS ()

d. To contribute to expenses of works necessary for use and preservation of servitude, if there are several dominant estates,
unless he renounces his interest
Art 628

Servient Estate

3. Rights of owner of servient estate

a. To retain ownership and use of his property
Art 630

b. To change the place and manner of use the easement
Art 629, 2
nd
Par

4. Obligations of the servient estate

a. Not to impair the use of the easement
Art 628, 1
st
Par

b. To contribute proportionately to expenses if he uses the easement
Art 628, 2
nd
Par

G. Modes of extinguishment of easements

Art 631 Easements are extinguished by:

1. Merger in the same person of the ownership of the dominant and servient estates
y Must be absolute, perfect and definite, not merely temporary

2. Non-user for 10 years
a. Computation of the period
i. Discontinuous easements counted from the day they ceased to be used
ii. Continuous easements counted from the day an act adverse to the exercise took place
b. The use by a co-owner of the dominant estate bars prescription with respect to the others
Art 633
c. Servitudes not yet exercised cannot be extinguished by non-use

3. Extinguishment by impossibility of use

4. Expiration of the term or fulfillment of resolutory condition

5. Renunciation of the owner of dominant estate
y Must be specific, clear, express (distinguished from non-user)

6. Redemption agreed upon between the owners

7. Other causes not mentioned in Art 631
a. Annulment or rescission of the title constituting the easement
b. Termination of the right of grantor
c. Abandonment of the servient estate
d. Eminent domain
e. Special cause for extinction of legal easement of rights of way; if right of way no longer necessary

H. Legal Easements

1. Law governing legal easements

a. For public easements
i. Special laws and regulations relating thereto
1) PD 1067 Water Code
2) PD 705 Forestry Reform Code
ii. Provisions of Chapter 2, Title VII, Book II of CC (Legal Easements)

b. For private legal easements
i. By agreement of the interested parties whenever the law does not prohibit it and no injury is suffered by a 3
rd
person
ii. By the provisions of Chapter 2, Title VII, Book II of CC (Legal Easements)

2. Private legal easements provided for by the New Civil Code

a) Those established for the use of water or easements relating to waters

1) Natural drainage of waters
Art 637

ONGSIAKO v ONGSIAKO ()

2) Easements on lands along riverbanks
Art 638
See Water Code

3) Abutment of a dam
Art 639

4) Aqueduct
Art 642
Art 643
Art 644
Art 645
Art 646

5) Drawing waters and watering animals
Art 640
Art 641

6) Stop lock or sluice gate
Art 649

b) The easement of right of way

Art 649
Art 650
Art 651
Art 652
Art 653
Art 654
Art 655
Art 656

Art 657

QUIMEN v CA (1996)
CHAN v CA ()
LA VISTA ASSN v CA (1997)
VDA. DE BELTAZAr v CA ()
SPS. DELA CRUZ v RAMISCAL (2005)

c) The easement of party wall

Art 658
Art 659
Art 660
Art 661
Art 662
Art 663
Art 664
Art 665
Art 666

d) The easement of light and view

Art 667
Art 668
Art 669
Art 670
Art 671
Art 672
Art 673

e) The easement of drainage of buildings

Art 674
Art 675
Art 676

f) The easement of distance for certain constructions

Art 677
Art 678
Art 679
Art 680
Art 681

g) The easement against nuisances

Art 682
Art 683

h) The easement of lateral and subjacent supports

Art 684
Art 685
Art 686
Art 687

BOOK III DIFFERENT MODES OF
ACQUIRING OWNERSHIP

Mode and Title Differentiated

MODE
y The specific cause which produces dominion and other real rights as a result of the co-existence of special status of things,
capacity and intention of persons and fulfillment of requisites of law
y Proximate cause

TITLE
y Every juridical right which gives a means to the acquisition of real rights but which in itself is insufficient
y Remote cause

Modes of Acquiring Ownership

ORIGINAL MODES
y Which produce the acquisition of ownership independent of any pre-existing right of another person, hence, free from any
burdens or encumbrances

a. Occupation
b. Intellectual creation

DERIVATIVE MODES
y Based on a right previously held by another person and therefore, subject to the same characteristics, powers, burden etc as
when held by previous owner
y Law - e.g.
o Registration under Act 496
o Estoppel of title
Art 1434
o Marriage under ACP
o Hidden treasure
o Accession
Art 445
o Change in rivers course
Art 461
o Accession continua over movables
Art 466
Art 6681
Art 1456
Art 120

a) Donation
b) Succession
c) Prescription
d) Tradition

REQUISITES:
(1) Pre-existence of right in estate of grantor
(2) Just cause or title for the transmission
(3) Intention (of both grantor and grantee)
(4) Capacity (to transmit and to acquire)
(5) An act giving it outward form, physically, symbolically or legally

LEGAL MAXIM: Non nudis pactis, sed traditione, dominia rerum transferentur (Not by mere agreement, but by delivery, is ownership
transferred.)

KINDS OF TRADITION
b. Real tradition
c. Constructive tradition
i. Symbolical delivery
ii. Delivery of public instrument
iii. Traditio longamanu
iv. Traditio brevi manu
v. Traditio constitutum possessorium
vi. Quasi-tradition
vii. Tradition by operation of law
Occupation

a. Not applicable to ownership of a piece of land
Art 714

b. Privilege to hunt and fish regulated by special law
Art 715

c. Occupation of a swarm of bees or domesticated animals
Art 716
Art 560

d. Pigeons and fish
Art 717

e. Hidden treasure
Art 718
Art 438
Art 439

f. Lost movables
Art 719
Art 720

Procedure after finding lost movables

Intellectual creation
Intellectual Property Code (RA 8293)

Intellectual Property Rights (IPR):
a. Copyright & related rights
b. Trademarks & service marks
c. Geographic indications
d. Industrial designs
e. Patents
f. Topographies of integrated circuits
g. Rights of performers, producers of sound recordings & broadcasting orgs
h. Protection of undisclosed information
i. Laws repealed by the IPC
Sec 239 All acts and part of acts inconsistent with Intellectual Property Code, particularly:
y PD 49 Intellectual Property Decree, including PD 285 as amended
y RA 165, as amended Patent Law
y RA 166, as amended
y Arts 188 and 189 of the RPC


DONATION

Nature of donation
y A bilateral contract creating unilateral obligations on donors part

Requisites of donation

a. Consent and capacity of the parties
b. Animus donandi (causa)
c. Delivery of the thing donated
d. Form as prescribed by law

NOTE
y There must be impoverishment (in fact) of donors patrimony and enrichment on part of donee

Kinds of donation

1. As to its taking effect
a. Inter vivos
Art 729
Art 730
Art 731
b. Mortis causa
Art 728
c. Propter nuptias
Art 82, FC
Art 87, FC

2. As to cause or consideration
a. Simple
b. Remuneratory
c. Onerous imposes a burden inferior to the value of property donated
i. Improper burden equal in value to property donated
ii. Sub-modo or modal E.g. imposes a prestation upon donee as to how property donated will be applied
Art 882
iii. Mixed donations negotium mixtum cum donatione e.g. sale for price lower than value of property

3. As to effectivity or extinguishment
a. Pure
b. Conditional
Art 730
Art 731
EFFECT OF AN IMPOSSIBLE CONDITION:
c. With a term

4. Importance of classification
a. As to form
b. As to governing rules
c. As to impossible conditions
Art 727
Art 1183

5. Characteristics of a donation mortis causa
a. Convey no title or ownership before donors death
b. Before donors death, transfer is revocable
c. Transfer is void if donor survives donee

6. Distinction between donation mortis causa and donation inter vivos

a. What is important is the time of transfer of ownership even if transfer of property donated may be subject to a
condition or a term
b. Importance of classification validity and revocation of donation

Who may not give or receive donations

Art 735
Art 737
Art 738
Art 741
Art 742

Who may give or receive donations

Art 736
Art 739
Art 1027
Art 1032
Art 740
Art 743
Art 744

Acceptance of donation

1. Who may accept
Art 745
Art 747

2. Time of acceptance
a. of donation inter vivos
Art 746
b. of donation mortis causa

Form of donations

1. Personal property
Art 748

2. Real property
Art 749

3. Rules in Art 748 and Art 749 not applicable to:
a. Onerous donations
b. Modal donations
c. Mortis causa donations
d. Donations propter nuptias

What may be donated

1. All present property, or part thereof, of donor

a. PROVIDED, he reserves in full ownership or usufruct, sufficient means for support of himself and all relatives entitled to be
supported by donor at the time of acceptance
Art 750

b. PROVIDED, that no person may give or receive, by way of donation, more than he may give or receive by will
Art 752

Also, reserves property sufficient to pay donors debts contracted before donation, otherwise, donation is in fraud of
creditors
Art 759
Art 1387

2. If donation exceeds the disposable or free portion of his estate, donation is inofficious

EXCEPTIONS

a. Donations provided for in marriage settlements between future spouses not more than 1/5 of present property
Art 84, FC
Art 130, CC

b. Donations propter nuptias by an ascendant consisting of jewelry, furniture or clothing not to exceed 1/10 of disposable
portion
Art 1070

3. What may not be donated

a. Future property
Art 751 Anything which donor cannot dispose of at the time of donation
EXCEPTION
y Marriage settlements of future spouses only in event of death to extent laid down in CC re: testamentary succession
Art 84, FC
Art 130 CC

Effect of donation

A. In general

SHOPPERS PARADISE REALTY v ROQUE (2004)

1. Donee may demand actual delivery of thing donated

2. Donee is subrogated to rights of donor in property donated
Art 754

3. Donor not obliged to warrant things donated, EXCEPT in onerous donations in which case donor is liable for eviction up to the
extent of burden
Art 754

4. Donor is liable for eviction or hidden defects in case of bad faith on his part
Art 754

5. In donations propter nuptias, donor must release property donated from mortgages and other encumbrances, unless contrary
has been stipulated
Art 131, CC

6. Donations to several donees jointly - no right of accretion, EXCEPT
a. Donor provides otherwise
b. Donation to husband and wife jointly with right of accretion (jus accrescendi) UNLESS donor provides otherwise
Art 753

B. Special provisions

1. Reservation by donor of power to dispose (in whole or in part) or to encumber property donated
Art 755
2. Donation of naked ownership to one donee and usufruct to another
Art 756
3. Conventional reversion in favor of donor or other person
Art 757
4. Payment of donors debt
Art 758
a. If expressly stipulated
o Donee to pay only debts contracted before the donation, UNLESS specified otherwise

o But in no case shall donee be responsible for debts exceeding the value of property donated, UNLESS clearly intended
b. If there is no stipulation
o Donee answerable only for donors debt only in case of donation is in fraud of creditors
5. Illegal or impossible conditions
Art 727
Art 1183

Revocation and Reduction of Donations

A. Revocation distinguished from reduction of donations

Revocation Reduction

B. Causes of Reduction/Revocation

1. Inofficiousness of donation
Art 752
Art 771
Art 773
Art 911
Art 912

a. Who may ask for reduction
Art 772

b. Rule applied: If disposable portion is not sufficient to cover 2 or more donation
Art 773

2. Subsequent birth, reappearance of child or adoption of minor by donor
Art 760

C. Revocation only

1. Ingratitude

a. Causes
Art 765

b. Time to file action for revocation
Art 769

c. Who may file
Art 770

d. Effect of revocation

On alienation and mortgages
Art 766
Art 767

2. Violation of condition

a. Prescription of action

b. Transmissibility of action

YULO AND SONS v ROMAN CATHOLIC BISHOP OF SAN PABLO (2005)

3. Effect of revocation or reduction


Art 762
Art 764 Par 2
Art 767

4. Effect as to fruits

Art 768



LEASE

A. General characteristics of every lease

1. Temporary duration
2. Onerous
3. Price is fixed according to contract duration

B. Kinds of leases

1. Lease of things movables and immovables

2. Lease of work or contract of labor
Art 1700
Art 1701
Art 1702
Art 1703
Art 1704
Art 1705
Art 1706
Art 1707
Art 1708
Art 1709
Art 1710
Art 1711
Art 1712

3. Lease of services

a. Household service

b. Contract for a piece of work
Art 1713
Art 1714
Art 1715
Art 1716
Art 1717
Art 1718
Art 1719
Art 1720
Art 1721
Art 1722
Art 1723
Art 1724
Art 1725
Art 1726
Art 1727
Art 1728
Art 1729
Art 1730
Art 1731

c. Lease of services of common carriers
Art 1732
Art 1733

Art 1734
Art 1735
Art 1736
Art 1737
Art 1738
Art 1739
Art 1740
Art 1741
Art 1742
Art 1743
Art 1744
Art 1745
Art 1746
Art 1747
Art 1748
Art 1749
Art 1750
Art 1751
Art 1752
Art 1753
Art 1754
Art 1755
Art 1756
Art 1757
Art 1758
Art 1759
Art 1760
Art 1761
Art 1762
Art 1763

C. Lease of things

1. Concept
Art 1643

2. Consumable things cannot be the subject matter of lease
EXCEPT
Art 1645
a. Consumable only for display or advertising
(Lease ad pompam et ostentationem)
b. Goods are accessory to an industrial establishment

3. Special characteristics of lease of things
a. Essential purpose is to transmit the use and enjoyment of a thing
b. Consensual
c. Onerous
d. Price fixed in relation to period of use or enjoyment
e. Temporary

4. Lease distinguished from Sale, Usufruct, Commodatum

5. Period of lease cannot be perpetual

a. Definite period not more than 99 years
b. Indefinite period
i. Rural land
Art 1682
ii. Urban land
Art 1687

6. Assignment of lease

Art 1649

7. Sublease
Art 1650

a. House Rental Law (RA 9653)

b. Obligation of sublessee to lessor
Art 1651
For rents
Art 1652

8. Rights and obligations of lessor and lessee

a. Obligations of a lessor
Art 1654
Art 1661

b. Obligations of lessee
Art 1657
Art 1662
Art 1663
Art 1665
Art 1668
Art 1667

c. Right of lessee to suspend payment of rentals
Art 1658

d. Right to ask for rescission
Art 1659
Art 1660

e. Lessor not obliged to answer for mere act of trespass by a 3
rd
person
Art 1664

9. Grounds for ejectment of lessee by lessor
Art 1673

Note the grounds under the House Rental Law.
QUERY: Are they still effective?

10. Right to ask for writ of preliminary mandatory injunction in unlawful detainer cases
Art 1674
Art 539, Par 2

11. Implied extension of lease
Art 1670
Art 1682
Art 1687
Art 1675

12. Right of purchase of leased land
Art 1676
Art 1677

13. Useful improvements in good faith made by lessee
Art 1678

14. Special provisions for leases of rural lands
Art 1680
Art 1681

Art 1682
Art 1683
Art 1684
Art 1685

15. Special provisions for leases of urban lands
Art 1686
Art 1687
Art 1688

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