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42 |2009 CENTRALIZED BAR OPERATIONS San Beda College of Law

PROPERTY - All things which are, or may be, theobject of appropriation (Art. 414, NCC)

Thing and Property DistinguishedTHING PROPERTY

includes bothappropriable and non-appropriable objects

things which aresusceptible of appropriation andwhich are alreadypossessed and found

in the possession of man

Note: Strictly speaking, thing is NOTsynonymous with property. HOWEVER, theNew Civil Code uses these termsinterchangeably.

Requisites/Characteristics: (USA)1. u tility ability to serve as a means to satisfy

human needs2. s ubstantivity or individuality separate and

autonomous existence

3. a ppropriability even if not yet actuallyappropriated (Reyes-Puno, p.1)

CLASSIFICATION OF PROPERTY

Kinds of Properties:1. Immovable or real (Art. 415)2. Movable or personal (Arts. 416, 417)

The human body, whether alive or dead, isneither real nor personal property, for it is noteven property at all, in that it generally cannotbe appropriated. Under certain conditions, the

body of a person or parts thereof may be thesubject matter of a transaction (See RA No.349, RA No. 7170, RA No. 7719).

Parties to a contract may treat as personalproperty that which by nature is real property;and it is a familiar phenomenon to see thingsclassed as real property for purposes of taxation which on general principle might beconsidered personal property (Standard Oil Co. vs. Jaranillo GR No. 20329, March 16,1923).

IMMOVABLE PROPERTIES

Categories: (NIDA)1. Real by n ature it cannot be carried from

place to place (pars. 1 & 8, Art. 415)2. Real by incorporation attached to an

immovable in a fixed manner to be an integralpart thereof (pars. 13 Art. 415)

3. Real by d estination placed in an immovablefor the utility it gives to the activity carriedthereon (pars. 47 and 9 Art. 415)

4. Real by a nalogy it is so classified byexpress provision of law (par. 10, Art. 415)

Types of Immovable Properties (Art. 415)1. Land, buildings, roads and constructions

of all kinds adhered to the soil Where a building is sold to be demolished

immediately, it is to be regarded asmovable because the subject matter of the contract is really the materials thereof.

Buildings are immovables byincorporation. Hence, their adherence tothe land must be permanent and

EXECUTIVE COMMITTEE:HERBERT CALVIN ABUGAN overall chair and chair academics operations, MANOLO ADEL SANTOS chair hoteloperations, GRACE SARAH TRIA vice chair for operations, JUAN CARLOS NUESTRO vice chair for academics, MAEANGELIE ETANG vice chair for secretariat, KRISTINE ANNABELLEE HIPOS vice chair for finance, EIREENE XINA ACOSTAvice chair for edp, ACE JELLO CONCEPCION vice chair for logistics

CIVIL LAW:FRANCESCA LOURDES SENGA subject chair, SHEENA MARIE ABELLA assistant subject chair, ACE ARVIN GANDO edp,FRANCESCA LOURDES SENGA persons and family relations, CRISCELYN CARAYUGAN property, MA. PELISA CORAZONPARIDO and MARY IVY ANNE GALANG wills and succession, MARIA DANIAFLOR BERAMO and COLLEEN INFANTEobligations and contracts, MARY IVY ANNE GALANG sales and lease, EVA CHRISTINE NAPARAN partnership, agency andtrust, KATHERINE ANN ASILO credit transactions, SHEENA MARIE ABELLA torts and damages, JAN PEARL PORTUGALland titles and deeds, JAN MANUELLE REYES conflict of laws

MEMBERS:Aldren Abrigo, Lloyd Elgene Apostol, Joanna Arellano, Jonathan Bajeta, Paul Isaac Barrameda, Barbara Jeniffer

Bautista, Arlene Borja, Leana BlascoKeith Francis Briones, Angelita Calalang, Uelah Cangco, Kristine Paula Chu, Benedicto Claravall, Diane Therese Dauz,Herbert Davis, Riyah Lalaine Domingo, Ana Ofloda delos Reyes, Ramona Diozo, Clarissa Enano-Caenano, CarlaEsplana, Diana Fajardo, Leoponville Ndota Wambui Gitau, Kristine Carmela Gonzales, Daisy Joy Jalova, Roehl Joson,

Jackie Lamug, Flocerfina Lloren, Jerome Matas, Herbert Matienzo, Charlene Clara, Mendoza, Kristel Concepcion Ona, Joanna Marie Paguio, Patricia Salang, Christine Santos, Rio Rose Santos, Charlotte Sayson, Mary Meilani Suyat, JezreelCaridad Taguba, Florence Tolentino, Philip Torres, Gilda Villanueva, Joan Grace Wilson, Joshua Villena, Raul Canon,Deogracias Natividad

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substantial. Portable structures are notimmovables.

A building is an immovable even if not

erected by the owner of the land. Theonly criterion is union or incorporationwith the soil. (Ladera vs. Hodges CA-GR No. 8027-R, September 23, 1952).

A building is real property thus, its sale asannotated in the Chattel MortgageRegistry cannot be given the legal effectof registration in the Registry of RealProperty (Leung Yee vs. Strong Machinery Co. GR No. L-11658 February 15, 1918).

2. Trees, plants, and growing fruits When trees are cut or uprooted,

incorporation ceases and they becomemovables; timber is still integral part of animmovable property when it constitutesthe natural product of the latter.

For purposes of attachment, execution,and the Chattel Mortgage Law, growingcrops have the nature of personalproperty (Sibal vs. Valdez GR No. L-27352, August 4, 1927).

3. Everything attached to an immovable in afixed manner The attachment need not be made by the

owner. The breakage or injury, in case of

separation, must be substantial. The fact that the machineries were bolted

or cemented on real property mortgageddoes not make them ipso factoimmovable under Art. 415 (3) and (5) asthe parties intent has to be looked into.Even if the properties appear to beimmovable by nature, nothing prohibitsthe parties from treating them as chattels

to secure an obligation under the principleof estoppel (Tsai vs. CA, GR No. 120098,October 2, 2001).

4. Statues, reliefs, paintings, or other objectsfor use or ornamentationRequisites:a. Placed by the owner or by a tenant as

agent of the owner b. With the intention of attaching them

permanently, even if adherence will notinvolve breakage or injury

5. Machinery, receptacles, instruments, or implements for an industry or worksRequisites:

a. The machinery, etc. must be placed bythe owner of the tenement or his agent

b. The industry or works must be carried on

in a building or on a piece of landc. The machinery, etc. must tend directly tomeet the needs of the said industry or works

Movable equipments, to be immobilized incontemplation of law, must be essential andprincipal elements of an industry or works(Mindanao Bus Co. vs. City Assessor and Treasurer GR No. L-17870, September 29,1962).

Machinery, movable in nature, becomesimmobilized when placed on a plant by theowner of the property but not so when placedby a tenant, usufructuary or a person havingonly a temporary right unless such personacted as agent of the owner (Davao Sawmill Co. vs. Castillo GR No. 40411, August 7,1935).

There are 2 views on the effect of the temporaryseparation of movables from the immovables towhich they are attached:

a. They continue to be regarded asimmovables.

b. Fact of separation determines thecondition of the object (supported by Paras and Tolentino)

If the machine is still in the building, but is nolonger used in the industry, the machinereverts to the condition of a chattel. On theother hand, if still needed for the industry, butseparated from the tenement temporarily, theproperty continues to be an immovable(Paras, p.20).

6. Animal houses, pigeon houses, beehives,fish ponds, etc.Requisites:a. Placed by the owner, or by a tenant as

agent of the owner, with the intention of permanent attachment

b. Forms a permanent part of theimmovable

7. Fertilizer Actually used means that it has been

spread over the land.

8. Mines, quarries and slag dumps

They are considered as realty only if thematter remains unsevered from the soil.Once severed, they become personalty.

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San Beda College of Law MEMORY AID IN CIVIL LAW| 44

9. Docks and Structures Vessels are considered personal property

under the Civil Law as well as under thecommon law, although occasionally

referred to as a peculiar kind of personalproperty. (Phil. Refining Co., Inc. vs. JarqueGR No. 41506, March 25, 1935).

10. Contracts for Public works, and servitudesand other real rights A personal right is always regarded as

personal property. The exception is in thecase of contracts for public works whichare considered as real property.

MOVABLE PROPERTIES

Tests:

1. By exclusion: all not included in Art. 4152. By description: an object is movable if:a. It can be transported from place to place;b. Without substantial injury to the

immovable to which it is attached.3. Real Property considered as personal

property by special provision of law.

Kinds of Movable Properties (ASFTOS):1. Those movables susceptible of a ppropriation

which are not included in the preceding article2. Real property which by any s pecial provision

of law is considered personalty3. Forces of nature which are brought under

control by science4. In general, all things which can be

transported from place to place withoutimpairment of the real property to which theyare fixed (Art. 416)

5. Obligations and actions which have for their object movables or demandable sums

6. S hares of agricultural, commercial andindustrial entities, although they may havereal estate (Art. 417)

Classifications of Movables:1. By Nature:

a. Consumable - cannot be used accordingto its nature without it being consumed.

b. Non-consumable - any other kind of movable property (Art. 418).

2. By Intention:a. Fungible - replaceable by an equal quality

and quantity, either by nature of things or agreement.

b. Non-fungibles - irreplaceable becauseidentical objects must be returned.

Note: The New Civil Code, in many instances,uses the terms consumable and fungibleinterchangeably.

PROPERTY IN RELATION TO WHOM ITBELONGS (Arts. 419425)Property is either of:1. public dominion

2. private ownershipI. Property of Public Dominion

Concept : It does not import the idea of ownership. It is not owned by the state but simplyunder its jurisdiction and administration for thecollective enjoyment of people. The ownership of such properties is in the social group, whether national, provincial or municipal.

Purpose: To serve the citizens and not the stateas a juridical person.

Kinds:1. For public use may be used by anybody2. For public service may be used only by

authorized persons3. For the development of national wealth

The charging of fees to the public does notdetermine the character of the property,whether it is of public dominion or not. Art.420 defines property of public dominion asone intended for public use. Even if thegovernment collects toll fees, the road is still

intended for public use if anyone can use itunder the same terms and conditions as therest of the public ( MIIA vs. CA, GR No.155650, July 20, 2006 ).

Characteristics: (OI-PAE)1. Outside the commerce of man2. Inalienable, but when it is no longer needed

for public use or service, it may be declaredpatrimonial property.

3. Cannot be acquired by p rescription4. Not subject to a ttachment or execution5. Cannot be burdened with e asements

Note: They CANNOT be registered under the landregistration law and be the subject of a Torrenstitle. The character of public property is notaffected by possession or even a Torrens Title infavor of private persons (Palanca vs.Commonwealth, GR No. 46373, Jan. 29, 1940). As property of public dominion, the Roppongi

lot is outside the commerce of man. The factthat it has not been used for a long time doesnot automatically convert it to patrimonialproperty. The conversion happens only if theabandonment is definite and upon a formaldeclaration on the part of the government towithdraw it from public use (Laurel vs. GarciaGR No. 92013, July 25, 1990) .

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The Executive and possibly the LegislativeDepartments have the authority and thepower to make the declaration ( Natividad vs.

Director of Lands 37 O.G. 2906 ).

II. Property of Private Ownership

Kinds:1. Property owned by the state and its political

subdivisions in their private capacity and isknown as patrimonial property (Art. 421-424)

2. Property belonging to private persons (Art.425)

Patrimonial Property of the State

1. Property of the State owned in a private or proprietary capacity

2. Property of public dominion, when no longer intended for public use or public service, shallform part of the patrimonial property

3. The state has the same rights over this kindof property as a private individual in relationto his own private property

Property of Political Subdivisions1. Property for public use consist of roads,

streets, squares, fountains, public waters,promenades and public works for publicservice paid for by the LGUs.Note: The enumeration in Art. 424 are notexclusive.

2. Patrimonial Property all other propertiespossessed by LGUs without prejudice toprovisions of special laws

Note: Arts. 423 and 424 speak of property for public use, indicating that property for publicservice is patrimonial. However, the SupremeCourt, in Province of Zamboanga Del Norte vs.City of Zamboanga (GR No. L-23922, June 30,1969), categorically stated that this court is not inclined to hold that municipal property held anddevoted to public service is in the same categoryas ordinary private property. The classification of municipal property devoted for distinctlygovernmental purposes as public, under the Lawof Municipal Corporations, should prevail over theCivil Code in this particular case. The Law of Municipal Corporations was considered as aspecial law in the context of Art. 424 of the NCC. Properties of public dominion devoted to

public use are outside the commerce of menand cannot be disposed of or leased by theLGU to private persons. LGUs have noauthority to control or regulate the use of public properties unless specific authority is

vested upon them by Congress ( Macasianovs. Diokno GR N. 97764, August 10, 1992 ).

The rights to enjoy, dispose, and recover a thingwithout further limitations than those establishedby law or the will of the owner.

SUBJECT-MATTER (Art. 427)1. thing - usually refer to corporeal property2. right - whether real or personal, are classified

as incorporeal property

RIGHTS INCLUDED:1. Right to enjoy: (PUFA )

a. to p ossess (jus possidendi)b. to u se (jus utendi)c. to the f ruits (jus fruendi) and accessionsd. to a buse (jus abutendi)

2. Right to dispose: (DATE)a. to d estroyb. to a lienatec. to transformd. to e ncumber

3. Right to vindicate: (PR)a. p ursuitb. r ecovery

4. Right to exclude: (ER)

1. to e nclose, fence and delimit2. to r epel intrusions even with force

CHARACTERISTICS: (GEEPI)1. General the right to make use of all the

possibilities or utility of the thing owned,except those attached to other real rightsexisting thereon.

2. Elastic power/s may be reduced andthereafter automatically recovered upon thecessation of the limiting rights.

3. Exclusive there can only be one ownershipover a thing at a time. There may be two or more owners but only one ownership.

4. P erpetuity ownership lasts as long as thething exists. It cannot be extinguished by nonuser but only by adverse possession.

5. Independence it exists without necessity of any other right.

LIMITATIONS: (GOSIP)1. General limitations imposed by the State for

its benefit2. Limitations imposed by the o wner himself 3. S pecific limitations imposed by law4. Inherent limitations arising from conflict with

other rights5. Limitations imposed by the p arty transmittingthe property either by contract or by will

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OWNERSHIP

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b. Accion publiciana : An ordinary civilproceeding to recover the better right of possession of property and is resorted to

when the dispossession has lasted for more than 1 year. The issue involved is not possession

de facto but possession de jure of realty independent of the title.

Must be brought in the proper regional trial court within a period of 10 years from the time the cause of action arises.

c. Accion reivindicatoria: An action torecover real property based onownership. The object is the recovery of dominion over the property as owner. Must be brought in the proper

regional trial court within a period of 10 years from the time the cause of action arises.

Requisites:i. The thing must be corporeal,

concrete, and determinateii. Proof of identityiii. Proof of title ( Reyes-Puno, p.24 )

SURFACE RIGHTS (Art. 437)The owner of parcel of land is the owner of itssurface and everything under it.

Limitations:Horizontally: extends up to the boundariesVertically: extends below the surface and aboveit to the extent required by the economic interestof or utility to the owner, in relation to theexploitation that may be made of the property

Airspace: the owner cannot complain of thereasonable requirements of aerial navigation

HIDDEN TREASURE (Arts. 438 & 439) Any hidden or unknown deposit of money, jewelry

or other precious objects, the lawful ownership of which does not appear

General rule: It belongs to the owner of the land,building or other property on which it is found.

Exceptions: The finder is entitled to provided:1. Discovery was made on the property of

another, or of the state or any of its politicalsubdivisions;

2. The finding was made by chance;3. The finder is not a coowner of the property

where it is found;

4. The finder is not a trespasser;5. The finder is not an agent of the landowner;6. The finder is not married under the absolute

community or the conjugal partnership system

(otherwise his share belongs to thecommunity).

It is necessary that no known owner appears.Hence, that money found in a library, whenthe books were delivered to the legatees in atestamentary proceeding, could not beconsidered a treasure because it was shownthat the library had been used by the testator and that money consisted, in greater part, of this kind in circulation during the life of thetestator (1 Capistrano 394).

ACCESSION (Arts. 440 475)The right by virtue of which the owner of a thingbecomes the owner of everything that is producedthereby or which is incorporated or attachedthereto, either naturally or artificially.

ACCESSORIES - things joined to or included withthe principal thing for the latters embellishment,better use, or completion

Classifications:1. Accession Discreta the right pertaining to

the owner of a thing over everything producedthereby

Fruits - all periodical additions to a principalthing produced by forces inherent to the thingitself

Requisites:a. increase or addition to the original thingb. at repeated intervalsc. by inherent forces

Kinds of Fruitsa. natural fruits spontaneous products of

the soil, the young and other products of animals

b. industrial fruits those produced by landsof any kind through cultivation or labor

c. civil fruits rents of buildings, price of leases or lands and the amount of perpetual or life annuities or other similar income

Bonus to planters for the risk undergonein mortgaging property is NOT a civil fruitof the mortgaged property ( BachrachMotor Co. vs. Talisay-Silay Milling Co.GR No. 35223, September 17, 1931 ).

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General rule: To the owner of the principalbelongs the natural, industrial, and civil fruit.Exceptions : If the thing is: (PULA)a. in p ossession of a possessor in good

faith;b. subject to a u sufruct;c. leased or pledged; or d. in possession of an a ntichretic creditor

General rule: Expenses of production,gathering and preservation (whether more or less than the value of the fruits) must beborne by the receiver of the fruits.

Exception: The rule does NOT always applyto pending fruits.

2. Accession Continua the right pertaining tothe owner of a thing over everything that isincorporated or attached thereto either naturally or artificially; by external forces.a. With respect to real property

i. accession industrial building, planting, sowing

ii. accession natural alluvium, avulsion, change of

course of rivers, formation of islands

b. With respect to personal property i. adjunction or conjunction

ii. commixtion or confusioniii. specification

Basic Principles: (GONE BAD)1. He who is in g ood faith may be held

responsible but will not be penalized.2. To the o wner of a thing belongs the extension

or increase of such thing.3. Bad faith of one party n eutralizes the bad

faith of the other.4. There should be no unjust e nrichment at the

expense of others.5. Bad faith involves liability for damages.6. Accessory follows the principal.7. Accession exists only if the incorporation is

such that separation would either seriouslyd amage the thing or diminish its value.

Right of Accession With Respect To RealProperty

Accession Industrial Table of Rights and Obligations :

LANDOWNER(LO)

BUILDER,PLANTER,

SOWER (B,P,S)

OWNER OFTHE

MATERIALS

(OM)Good Faith Acquireimprovements

Good FaithRight of retention for

Good FaithCollect value of

materials

and pay to B, P,S indemnity;subsidiarilyliable to owner of materialsa. sell land to Bor P except if the value of theland isconsiderablymoreb. rent to S(448, 546, 455)

necessary anduseful expensePay value of materials toowner of materials

primarily from B,P, S; subsidiarilyfrom land owner if B, P, SinsolventRemove only if

without injury(455, 447)

Good Faith Acquireimprovementsand payindemnity to B,P, S

A. Sell to B, Pexcept if thevalue of land isconsiderablymore, forcedleaseWithoutsubsidiaryliability for costof material

Good FaithRight of retention for necessary anduseful expensesKeep building,

planting or sowing w/oindemnity toowner of materials andcollect damages(546, 449)

Bad FaithLose themwithout right toindemnity (449)

Good FaithOption to:

Acquireimprovementw/o payingindemnity andcollectdamages, or Demolition or restoration, andcollectdamages, or Sell to B, P or rent to S, andcollect damagesPay necessaryexpenses to B,P, S (449, 450,451)

Bad FaithRecover necessaryexpenses for preservationLoseimprovementsw/o right toindemnity fromLO (452) unlessthe LO sellsland

Bad FaithRecover valuefrom B, P, S (asif both acted ingood faith)If B, P, Sacquiresimprovements,removematerials if w/oinjury (447)No action versusLO

Bad Faith{Same as though all acted in good faith (453)}

Bad Faith Acquireimprovementsafter payingindemnity anddamages to B,P, SSubsidiarilyliable to owner of materials(454, 447, 455)

Good FaithRemoveimprovements inany eventBe indemnifiedfor damages

Good FaithRemovematerials if w/oinjuryCollect value of materials,primarily from B,P, S; subsidiarilyfrom LO (447,455)

Bad Faith

Acquireimprovementsafter indemnityto B, P, S;

Bad Faith

Right of retention for necessaryexpenses

Good Faith

Collect value of materialsprimarily form B,P, S; subsidiarily

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builder, etc. the part of the land intrudedupon, and thereby depriving him of his right tochoose, because it would be impractical tochoose the first alternative for the whole

improvement might be rendered useless. Accession natural

1. Alluvion or Alluvium (Art. 457-458)Increment which lands abutting riversgradually receive as a result of the current of the waters

Accretion - the process by which a riparianland gradually and imperceptibly receivesaddition made by the water to which the landis contiguous

Requisites of alluvion or accretion:a. the deposit or accumulation of soil or

sediment must be gradual andimperceptible (increase must becomparatively little)

b. the accretion must result from the effectsor action of the current of the water

c. that the land where accretion takes placeis adjacent to the bank of the river

Accretions belong to the riparian ownersupon whose lands the alluvial deposits

were made (Agustin vs. Intermediate Appellate Court GR Nos. 66075-76, July 5, 1990) .

Reasons for the rule:a. To compensate the owner for losses

which they may suffer by erosion.b. To compensate them for the burdens of

legal easements, which are imposedupon them

c. Because it is the owner of the contiguousland who can utilize the increment to thebest advantage

d. Because this is the only feasible solution,since the previous owners can no longer be identified.

An alluvion is automatically owned by theriparian owner from the moment the soildeposit can be seen but the additionalarea does not automatically becomeregistered land just because the lot whichreceives such accretion is covered by aTorrens title. The riparian owner mustregister the additional area (Heirs of E.Navarro vs. Intermediate Appellate Court GR No. 68188, October 13, 1997).

Failure to register the acquired alluvialdeposit by accretion subjects said

accretion to acquisition thru prescriptionby third persons (Reynante vs. CA, GR No. 95907, April 8, 1992).

A riparian owner cannot acquire the

addition to his land caused by specialworks (e.g., dikes) expressly intended byhim to bring about accretion (i.e., for reclamation purposes) and not to protecthis property from the destructive force of the waters of the river (Republic vs. CA,GR No. L-43105, August 31, 1984).

In the absence of evidence that thechange in the course of the river wassudden, the presumption is that thechange was gradual and was caused byalluvium and erosion (Payatas-EstateImprovement Co. vs. Tuason GR No. L-

30067, March 23, 1929).

2. Avulsion (Art. 459)The transfer of a known portion of land fromone tenement to another by the force of thecurrent. The portion of land must be suchthat it can be identified as coming from adefinite tenement.

Requisites:a. the segregation and transfer must be

caused by the current of a river, creek or torrent

b. the segregation and transfer must besudden or abrupt

c. the portion of land transported must beknown or identified

Note: The owner must remove (not merely claim) the transported portion within two yearsto retain ownership. Art. 460 applies only to uprooted trees. If

a known portion of land with treesstanding thereon is carried away by thecurrent to another land, Art. 459 governand the 2 year period applies.

In case of uprooted trees, the owner retains ownership if he makes a claimwithin 6 months. This does not includetrees which remain planted on a knownportion of land carried by the force of thewaters. In the latter case, the trees areregarded as accessions of the landthrough gradual changes in the course of adjoining stream (Payatas-EstateImprovement Co. vs. Tuason GR No. L-30067, March 23, 1929).

Alluvium and Avulsion Distinguished

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ALLUVIUM AVULSION

gradual andimperceptible

sudden or abruptprocess

soil cannot be identified identifiable andverifiable

belongs to the owner of the property to which itis attached

belongs to the owner from whose property itwas detached

3. Change of Course of Rivers (Art. 461462)Requisites: (NAPA)a. There must be a n atural change in the

course of the waters of the river;otherwise, the bed may be the subject of a State grant (ReyesPuno, p.54).

b. The change must be a brupt or suddenc. The change must be p ermanent; the rule

does not apply to temporary overflowingd. There must be a bandonment by the

owner of the bed i.e. a decision not tobring back the river to the old bed.(ReyesPuno, p.53).

Once the river bed has been abandoned,the owners of the invaded land becomeowners of the abandoned bed to theextent as provided by Art. 462. No

positive act is needed on their part, as itis subject thereto ipso jure from themoment the mode of acquisition becomesevident.

It does not apply to cases where the river simply dries up because there are nopersons whose lands are occupied by thewaters of the river.

4. Formation of Islands (Arts. 463465)

Rules on Ownership:a. If formed by the sea:

i. within territorial waters Stateii. outside territorial waters to the first

occupantb. If formed in lakes, or navigable or

floatable rivers Statec. If formed on nonnavigable or non

floatable rivers:i. if nearer to one margin or bank to

the nearer riparian owner ii. if equidistant from both banks to the

riparian owners, by halves

There is no accession when islands areformed by the branching of a river; theowner retains ownership of the isolatedpiece of land.

Right of Accession With Respect To PersonalProperty

Basic Principle: Accession exists only if separation is not feasible. Otherwise, separationmay be demanded.

Kinds:1. Adjunction/ conjunction (Arts. 466-471) : The

union of two movable things belonging todifferent owners, in such a manner that theycannot be separated without injury, therebyforming a single object

Requisites:

a. the two things must belong to differentowners

b. that they form a single object, or that their separation would impair their nature

Kinds:a. inclusion or engraftmentb. soldadura or soldering

i. ferruminacion if both the accessoryand principal objects are of the samemetal

ii. plumbatura if the accessory andprincipal objects are of differentmaterials

c. escritura or writingd. pintura or paintinge. tejido or weaving

Tests to determine principal in adjunction:a. the rule of importance and purpose (Art.

467)b. that of greater value if they are of

unequal valuesc. that of greater volume if they are of

equal valuesd. that of greater merits take into

consideration all pertinent provisionsapplicable as well as the comparativemerits, utility and volume

Rules on Who is Entitled:a. Adjunction in good faith by either owner:

General rule: Accessory follows theprincipalExceptions : If the accessory is muchmore precious than the principal, theowner of the accessory may demand theseparation even if the principal sufferssome injury

b. Adjunction in bad faith by the owner of the principal

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Options of the owner of the accessory:i. to recover the value plus damagesii. to demand separation plus damages

c. Adjunction in bad faith by the owner of the accessoryi. he loses the accessoryii. he is liable for damages

When separation of things allowed:i. separation without injuryii. accessory is more precious than the

principaliii. owner of the principal acted in bad

faith

2. Mixture (Arts. 472-473) : Union of materials

where the components lose their identityKinds:a. Commixtion mixture of solidsb. Confusion mixture of liquids

Rules:a. By the will of both owners or by accident:

each owner acquires an interest inproportion to the value of his material

b. By one owner in good faith: apply rule (a)c. By one owner in bad faith:

i. he loses all his rights to his own

materialii. he is liable for damages

3. Specification (Art. 474) : The transformation of anothers material by the application of labor.The material becomes a thing of differentkind. Labor is the principal

Rules:a. Owner of the principal (worker) in good

faith:i. maker acquires the new thingii. he must indemnify the owner of the

materialException: if the material is morevaluable than the resulting thing, theowner of the material has the option:i. to acquire the work, indemnifying for

the labor, or ii. to demand indemnity for the material

b. Owner of the principal (worker) in badfaith, the owner of the material has theoption:i. to acquire the result without indemnityii. to demand indemnity for the material

plus damages

c. Owner of the material in bad faithi. he loses the materialii. he is liable for damages

Indemnity of the material, how paid (Art 471) :

a. The delivery of the same quality, kind andquality; or

b. The payment of the value, as per expertappraisal.

In determining the value, sentimentalvalue must be taken into account.

Adjunction, Mixture and SpecificationDistinguished

ADJUNCTION MIXTURE SPECIFICATION

Involves atleast 2 things

Involves atleast 2things

May involve onething (or more)but form ischanged

Accessoryfollows theprincipal

Co-ownershipresults

Accessoryfollows theprincipal

Things joinedretain their nature

Thingsmixed or confusedmay either retain or lose their respectivenatures

The new objectretains or preserves thenature of theoriginal object.

QUIETING OF TITLE (Arts. 476481)

Cloud on title A semblance of title, either legal or equitable, or aclaim or a right in real property, appearing insome legal form but which is, in fact, invalid or which would be inequitable to enforce

Action to quiet title An action to remove cloud or to quiet title is aremedy or proceeding in equity, the purpose of which is the declaration of the invalidity of a claimon a title or the invalidity of an interest in property

adverse to that of the plaintiff, and thereafter tofree the plaintiff and those claiming under himform any hostile claim thereon.

General rule: Only real property could be thesubject matter of quieting of title.

Exception: Certain personal properties likevessels may be the object of quieting of title.

Nature: Actions for quieting of title are neither suits in remnor suits in personam . They are suits against a

particular person in respect to the res and the judgment will apply only to the property in dispute.They are suits quasi in rem (Realty Sales

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Enterprises, Inc. vs. Intermediate Appellate Court GR No. L-67451, September 28, 1987).

Requisites: (LCD-R)1. plaintiff must have a legal or equitable title to,or interest in the real property which is thesubject matter of the action;

2. there must be a c loud in such title;3. such cloud must be d ue to some instrument,

record, claim, encumbrance or proceedingwhich is APPARENTLY VALID but is in truthinvalid, ineffective, voidable or unenforceable,and is prejudicial to the plaintiffs title; and

4. plaintiff must r eturn to the defendant allbenefits he may have received from the latter,or reimburse him for expenses that may have

redounded to his benefit.

Classes:1. Remedial (Action to quiet title) - the action

may be brought to remove a cloud or quiettitle to real property or an interest therein (Art.476 par. 1)

2. Preventive (Action quia timet) - to prevent afuture cloud (doubt) from being cast upon thetitle to real property or an interest therein (Art.476 par. 2).

Prescriptive Period:

1. plaintiff in possession imprescriptible2. plaintiff not in possession 10 (ordinary) or

30 years (extraordinary)

The action to quiet title does NOT apply:1. to questions involving interpretation of

documents2. to mere written or oral assertions of claims,

EXCEPT:a. if made in a legal proceedingb. if it is being asserted that the instrument

or entry in plaintiffs favor is not what itpurports to be

3. to boundary disputes4. to deeds by strangers to the title UNLESS

purporting to convey the property of theplaintiff

5. to instruments invalid on their face6. where the validity of the instrument involves

pure questions of law

Duty of plaintiff to restore benefits and expenses (Art. 479):1. Restoration is required whenever the

complainant is shown to be morally bound toreimburse the defendant

2. Even if the debt is not enforceable by reasonof the statue of limitations, payment may berequired by the court

Reason: He who seeks equity must do equity.

RUINOUS BUILDINGS AND TREES IN

DANGER OF FALLING (Arts. 482483):

As to buildings : The complainant must show that his property

is adjacent to the dangerous construction, or must have to pass by necessity in theimmediate vicinity.

Lack of knowledge of the falling condition of the structure will not excuse the owner fromliability.

If the damage is caused by defects in theconstruction, then the builder is responsiblefor the damages.

As to trees : The fall of the tree, occasioned by the inaction

or negligence of the owner, someone hasbeen hurt, the owner of the tree is liable for damages under the law on quasi-delict (Art.2191, par. 3).

That form of ownership which exists whenever anundivided thing or right belongs to differentpersons. By the nature of coownership, a coowner

cannot point to any specific portion of theproperty owned in common as his ownbecause his share in it remains intangible andideal (Avila et al. vs. Sps. Barabat GR No.141993, May 17, 2006).

The possession of a coowner is like that of atrustee and shall not be regarded as adverseto the other coowner but in fact beneficial toall of them (Salvador vs. CA, G.R. No. 109910,

April 5, 1995)

REQUISITES:1. Plurality of owners2. The object of ownership must be a thing or

right which is undivided3. Each coowners right must be limited only to

his ideal share of the physical wholeCHARACTERISTICS: (PSNCLG)1. P lurality of subjects/owners2. there is a s ingle object which is not materially

divided3. there is n o mutual representation by the co

owners4. it exists for the c ommon enjoyment of the co

owners5. it has no distinct le gal personality

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6. it is g overned first of all by the contract of theparties; otherwise, by special legal provisions,and in default of such provisions, by theprovisions of Title III on coownership

SOURCES: (C 2LOST)1. Contract2. Chance3. Law4. Occupation5. S uccession6. Testamentary disposition or donation inter

vivos

COOWNERSHIP AND PARTNERSHIPDISTINGUISHED

COOWNERSHIP PARTNERSHIPCan be createdwithout the formalitiesof a contract

Can be created onlyby contract, expressor implied

Has no juridical or legal personality

Has juridicalpersonality distinctfrom the partners

Purpose is collectiveenjoyment of the thing

Purpose is to obtainprofits

Coowner candispose of his shareswithout the consent of

the others with thetransfereeautomaticallybecoming a coowner.

A partner, unlessauthorized, cannotdispose of his share

and substitute another as a partner in hisplace.

There is no mutualrepresentation.

A partner cangenerally bind thepartnership.

Distribution of profitsmust be proportionalto the respectiveinterests of the coowners

Distribution of profitsis subject to thestipulation of theparties

A coownership is notdissolved by thedeath or incapacity of a coowner.

Death or incapacitydissolves thepartnership

No public instrumentneeded even if realproperty is the objectof the coownership

May be made in anyform except when realproperty is contributed

An agreement to keepthe thing undivided for a period of more than10 years is void.

There may beagreement as to adefinite term withoutlimit set by law.

RULES:I. Rights of each coowner as to the thing

owned in common: (USBRAPLDP)1. To u se the thing owned in common

Limitations:a. use according to the purpose for

which it was intendedb. interest of the coownership must not

be prejudicedc. other coowners must not beprevented from using it according totheir own rights

2. To s hare in the benefits and charges inproportion to the interest of each. Any stipulation to the contrary is void.

3. To the b enefits of prescription:prescription by one coowner benefits all.

4. Repairs and taxes: to compel the othersto share in the expenses of preservationeven if incurred without prior notice. The coowner being compelled may

exempt himself from the payment of taxes and expenses by renouncinghis share equivalent to such taxesand expenses. The value of theproperty at the time of therenunciation will be the basis of theportion to be renounced.

5. Alterations: to oppose alterations madewithout the consent of all, even if beneficial.

Alteration is an act by virtue of which acoowner changes the thing from thestate in which the others believe it shouldremain, or withdraws it from the use towhich they desire it to be intended.

6. To p rotest against seriously prejudicialdecisions of the majority

7. Legal redemption: to be exercised within30 days from written notice of sale of anundivided share of another coowner to astranger

8. To d efend the coownerships interest incourt

9. To demand p artition at any timePartition is the division between 2 or

more persons of real or personal propertywhich they own in common so that eachmay enjoy and possess his sole estate tothe exclusion of and without interferencefrom others. The purpose of partition is toseparate, divide and assign a thing heldin common among those to whom itbelongs. (Avila vs. Sps. Barabat GR No.141993, March 17, 2006).

General rule: Partition is demandable byany of the coowners as a matter of rightat any time.

Exceptions: (SCLUPA)a. When there is a s tipulation against it;

but not to exceed 10 years.

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b. When the c ondition of indivision isimposed by the donor or testator; butnot to exceed 20 years.

c. When the legal nature of thecommunity prevents partition.

d. When partition would render the thingu nserviceable.

e. When partition is p rohibited by lawf. When a nother coowner has

possessed the property as exclusiveowner for a period sufficient toacquire it by prescription.

II. The following questions are governed bythe majority of interests:1. Management

Acts of Management (Castan)a. Those that do not involve an alterationb. Are renewable from time to timec. Do not bind the community for a long time

in the futured. Do not give rise to a real right over the

thing owned in common (Reyes-Puno. p.73).

e. Expenses to improve or embellish aredecided by the majority

Minority may appeal to the court againstthe majoritys decision if the same isseriously prejudicial.

2. Enjoyment3. Improvement or embellishment

III. Rights as to the ideal share of each coowner:1. Each has full ownership of his part and of

his share of the fruits and benefits2. Right to substitute another person in its

enjoyment, EXCEPT when personalrights are involved

3. Right to alienate, dispose or encumber 4. Right to renounce part of his interest to

reimburse necessary expenses incurredby another coowner

5. Transactions entered into by each coowner only affect his ideal share. Even if a co-owner sells the whole

property as his, the sale will affectonly his own share but not those of the other co-owners who did notconsent to the sale. This is becausethe sale or other disposition affectsonly his share and the transferee getsonly what would correspond to his

grantor in the partition of the thingowned in common. Since a co-owner is entitled to sell his undivided share,a sale of the entire property by one

co-owner without the consent of theother co-owners is not null and void.Only the rights of the co-owner-seller

are transferred, thereby making thebuyer a co-owner of the property(Bailon-Casilao vs. CA, GR No. L-78178, April 15, 1988).

A co-owner cannot acquire by prescription theshare of the co-owners, absent any clear repudiation of the co-ownership. In order thatthe title may prescribe in favor of a co-owner,the following requisites must concur: (1) theco-owner has performed unequivocal acts of repudiation amounting to an ouster of theother co-owners; (2) such positive acts of

repudiation have been made known to theother co-owners; and (3) the evidence thereof is clear and convincing (Robles vs. CA, GR No. 123509, March 14, 2000).

The act of executing the affidavit of selfadjudication did not constitute sufficient act of repudiation. In fact, there was bad faith of thecoheir in feigning sole ownership of theproperty to the exclusion of the other coheirs. (Galvez vs. CA, GR No. 157954, March24, 2006).

The Torrens title does not furnish a shield for fraud. Thus, where one registered theproperty in question in his name in fraud of his coheirs, prescription can only be deemedto have commenced from the time the latter discovers the fraudulent act (Adille vs. CA, GR No. L-46484 January 29, 1988).

Under the law, anyone of the coowners maybring an action in ejectment (Art. 487). Thiscan be done without joining all other coowners because the suit is presumed to havebeen filed for the benefit of his coowners.But if the suit is for the benefit of the plaintiff alone who claims to be the sole owner andentitled to the possession of the litigatedproperty the action should be dismissed and itwill not prosper especially so that there isevidence of coownership of the property,and there is no showing that they waived their rights (Baloloy vs. Hular GR No. 159723.September 9, 2004).

EXTINGUISHMENT OF COOWNERSHIP(CALSTEP)1. c onsolidation or merger in one coowner 2. a cquisitive prescription in favor of a third

person or a coowner who repudiates the co

ownership3. loss or destruction of property coowned4. s ale of property coowned

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3. As a right the right of a person to holding or enjoyment to the exclusion of all othershaving better right than the possessor

a. jus possidendi - right to possession whichis incidental to or included in the right of ownership

b. jus possessionis right of possessionindependent from the right of ownership

REQUISITES:1. occupancy, apprehension, or taking of a thing

or right (possession in fact);2. deliberate intention to possess (animus

possidendi) An insane or demented person CANNOT

acquire possession as they are incapable

of understanding the import of their actions.

3. by virtue of ones own right in his own nameor in that of another.

DEGREES:1. possession without any title whatsoever -

mere holding without any right at all (ex. thief or squatter)

2. possession with juridical title - predicatedon juridical relation existing between thepossessor and the owner (ex. lessee,usufructuary, depositary, agent, pledgee andtrustee)

3. possession with just title the possessionof an adverse claimant whose title is sufficientto transfer ownership but is defective (ex.when the seller is not the true owner or couldnot transmit his rights thereto to a possessor who acted in GF)

4. possession with a title in fee simple -derived from the right of dominion or possession of an owner; the highest degreeof possession

CLASSES:1. In ones own name where possessor

claims the thing for himself 2. In the name of another for whom the thing

is held by the possessor 3. In the concept of owner possessor of

thing or right, by his actions, is considered or believed by others as the owner, regardlessof good or bad faith of the possessor Possessor in the concept of an owner is

presumed with just title. (Art. 541)4. In the concept of holder possessor holds

it merely to keep or enjoy it, the ownershippertaining to another person; possessor

acknowledges in another a superior rightwhich he believes to be ownership; cannotacquire ownership by prescription None of these holders may assert a claim

of ownership for himself over the thing butthey may be considered as possessors inthe concept of owner, or under claim of ownership, with respect to the right theyrespectively exercise over the thing.

5. In good faith possessor is not aware thatthere is in his title or mode of acquisition adefect that invalidates itRequisites:a. Ostensible title or mode of acquisitionb. Vice or defect in the titlec. Possessor is ignorant of the vice or defect

and must have an honest belief that thething belongs to him

Gross and inexcusable ignorance of thelaw may not be the basis of good faith,but possible excusable ignorance may besuch basis (Kasilag vs. Roque GR No.46623, December 7, 1939).

6. In bad faith possessor is aware of theinvalidating defect in his own title. Only personal knowledge of the flaw in

ones title or mode of acquisition canmake him a possessor in bad faith. It isnot transmissible even to an heir.

Possession in good faith ceases from themoment defects in his title are madeknown to the possessor

EXTENT OF POSSESSION:1. Actual possession occupancy in fact of

the whole or at least substantially the wholeproperty

2. Constructive possession occupancy of part, in the name of the whole, under suchcircumstances that the law extends theoccupancy to the possession of the wholeDoctrine of constructive possession possession in the eyes of the law does notmean that a man has to have his feet onevery square meter of ground before it can besaid that he is in possession (Ramos vs.Director of Lands GR No. 13298, November 19, 1918) .

PRESUMPTIONS IN FAVOR OF POSSESSOR:1. of good faith (Art. 527)2. of continuity of initial good faith (Art. 528)3. of enjoyment in the same character in which

possession was acquired until the contrary isproved (Art. 529)4. of noninterruption in favor of the present

possessor (Art. 554)

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Taxes and charges (i. on capital, ii. on fruits andiii. charges)

taxes and charges

i. charged toowner ii. charged to

possessor iii. prorated

taxes and charges

i. charged to owner ii. charged to owner iii. to owner

Improvements no longer existingno reimbursement no reimburse-ment

Liability for accidental loss or deteriorationonly if acting withfraudulent intent or negligence, after summons

liable in every case

Improvements due to time or natureto owner or lawfulpossessor

to owner or lawfulpossessor

Necessary expenses made for thepreservation of the thing

Useful expenses add value to property or increase the objects productivity

Ornamental/luxury expenses add value to thething only for certain persons in view of their particular whims; neither essential for preservation nor useful to everybody in general

LOSS OF POSSESSION (Art. 555)

General Causes:1. By the will of the possessor

a. Abandonmentb. Transfer or conveyance

2. Against the will of the possessor a. Eminent domainb. Acquisitive prescriptionc. Judicial decree in favor of one who has a

better rightd. Possession of another for more than one

year This refers to possession de facto

where the possessor loses the rightto a summary action; but he may stillbring action publiciana or reivindicatoria.

e. By reason of the objecti. destruction or total loss of the thingsii. withdrawal from commerce

Acts NOT Constituting Loss of Possession(Arts. 537538)1. Acts executed by stealth and without

knowledge of the possessor

2. Acts merely tolerated either by the possessor or by his representative or holder in his nameunless authorized or ratified

3. Violence4. Temporary ignorance of the whereabouts of movable property

The possessor who recovers possession isconsidered as having had uninterruptedpossession despite these acts of violence,stealth and tolerance; but he must recover possession by due process, and nototherwise (Arts. 561, 536, 539)

POSSESSION OF MOVABLES (Art. 559) :

Theory of Irrevindicability - Possession in goodfaith of a movable is presumed ownership. It isequivalent to title. No further proof is necessary(Aznar vs. Yapdiangco, G.R. No. L-18536, March31, 1965). The rule isnecessary for purposes of facilitating transactions on movable propertywhich are usually done without special formalities(Sotto vs. Enage, 43 O.G. 5075 [1947]).

Requisites:1. possession is in good faith2. the owner has voluntarily parted with the

possession of the thing3. possessor is in the concept of owner

Exceptions to the Theory of Irrevindicability:1. where the owner or possessor lost a movable2. where the owner or possessor has been

unlawfully deprived of a movable

General rule : One who has lost or has beenunlawfully deprived of a movable may recover itfrom whoever possesses it withoutreimbursement. The owner of the thing mustprove: (1) ownership of the thing, and (2) loss or unlawful deprivation; or bad faith of thepossessor.

Exceptions:1. Where the owner acts negligently or

voluntarily parts with the thing owned, hecannot recover it from the possessor.

2. If the possessor of the movable acquired it ingood faith at a public sale , the owner cannotobtain its return without reimbursing the pricepaid therefor.

Public sale one where there has been a publicnotice of the sale in which anyone is allowed tobid for the object he desires to buy.

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POSSESSION OF ANIMALS (Art. 560) :

Wild Animals living in a state of natureindependently of and without the aid and care of

man; considered possessed only while they areunder mans control

Domesticated/ Tamed Animals - wild or savageby nature but have been subdued and becameaccustomed to live in a tamed condition;considered possessed if they habitually return tothe premises of their possessor

Domestic/ Tame animals live, born and rearedunder the control and care of man

Gives the right to enjoy the property of another with the obligation of preserving its form andsubstance, unless the title constituting it or thelaw otherwise provides.

CHARACTERISTICS:1. real right2. of temporary duration3. to derive all advantages from the thing due to

normal exploitation4. may be constituted on real or personal

property, consumable or nonconsumable,

tangible or intangible, the ownership of whichis vested in another 5. transmissible

KINDS OF USUFRUCTUARY ACCORDING TOORIGIN:1. Legal created by law such as usufruct of

the parents over the property of their unemancipated children

2. Voluntary created by will of the partieseither by act inter vivos such as donation or by act mortis causa such as in a last will andtestament

3. Mixed acquired by prescription such aswhen believing himself to be the owner of theproperty of an absentee, gave in his will theusufruct of the property for the requisiteprescriptive period to his wife, whopossessed it in good faith as usufructuary,and naked ownership to his brother

RULES GOVERNING USUFRUCT:Governed primarily by the title creating it, or in theabsence thereof, by Articles 566-612 of the CivilCode.

NORMAL USUFRUCT AND ABNORMALUSUFRUCT DISTINGUISHED

NORMAL USUFRUCT ABNORMALUSUFRUCT

that which involves non-consumable thingswhich the usufructuarycan enjoy withoutaltering their form or substance, though theymay deteriorate or diminish by time or use

that which involvesthings which would beuseless to theusufructuary unlessthey are consumed or expended, such asmoney, grain, liquors,etc.

GENERAL RULE: Usufructuary is bound topreserve the form and substance of the thing inusufruct.

EXCEPTION: Abnormal usufruct whereby the lawor the will of the parties may allow themodification of the substance of the thing.

USUFRUCT AND LEASE DISTINGUISHEDUSUFRUCT LEASE

Always a real right Generally a personalright

Person creating theusufruct should be theowner or his dulyauthorized agent

Lessor may not be theowner

May be created by law,

by contract, by will of the testator, or byprescription

Generally created by

contract

As a rule, usufructcovers all the fruits andall the uses and benefitsof the entire property.

Lease generally refersto uses only

Involves a more or lesspassive owner whoallows the usufructuaryto enjoy the object givenin usufruct

Lease involves a moreactive owner or lessor who makes the lesseeto enjoy

Pays for ordinary repairsand taxes on the fruits

Lessee is not generallyunder obligation toundertake repairs or pay taxes

SPECIAL USUFRUCTS:1. of pension or income (Art. 570)2. of property owned in common (Art. 582)3. of cattle (livestock) (Art. 591)4. on vineyards and woodlands (Art. 575576)5. on a right of action (Art. 578)6. on mortgaged property (Art. 600)7. over the entire patrimony (Art. 598)8. over things which gradually deteriorate (Art.

573)

USUFRUCT

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9. of consumable property (Art. 574)

RIGHTS OF THE USUFRUCTUARY

1. As to the thing and its fruitsa. To receive and benefit from the fruitsb. To enjoy any increase through

accessions and servitudesc. To the half of the hidden treasure he

accidentally findsd. To lease the thing, generally, for the

same or shorter period as the usufruct.e. To improve the thing without altering its

form and substancef. Right to setoff the improvements he may

have made on the property against anydamage to the same

g. To retain the thing until he is reimbursedfor advances for extraordinary expensesand taxes on the capital

h. To collect reimbursements from theowner for indispensable extraordinaryrepairs, taxes on the capital he advanced,and damages caused to him.

i. To remove improvements made by him if the same will not injure the property

2. As to the usufruct itself a. To mortgage the right of usufruct except

parental usufruct

b. To alienate the usufruct

3. At the expiration of the usufruct:a. to collect reimbursement from the owner:

i. for indispensable extraordinaryrepairs made by the usufructuary

ii. for taxes on the capital advanced bythe usufructuary

iii. for damages caused by theusufructuary

b. to retain the thing until reimbursement ismade

c. to remove improvements made by him,but without injuring the property

In a usufruct, only the jus utendi and jusfruendi over the property are transferred tothe usufructuary. The owner of the propertymaintains the jus disponendi or the power toalienate, encumber, transform, and evendestroy the same (Hemedes vs. CA, GR No.107132, October 8, 1999).

Under the Massachusetts Rule, a stockdividend is considered part of the capital andbelongs to the remainderman; while under thePennsylvania Rule, all earnings of acorporation, when declared as dividends inwhatever form, made during the lifetime of theusufructuary, belong to the latter. The

Pennsylvania Rule is more in accord with our laws than the Massachusetts Rule (Bachrachvs. Seifert and Elianoff, GR No. L-2659,

October 12, 1950). Corollary to the right to all the rents, to

choose the tenant, and to fix the amount of the rents, a usufructuary of the rents has theright to choose himself as the tenant,provided that the obligations he has assumedtowards the owner of the property are fulfilled(Fabie vs. Gutierrez David, GR No. L-123,December 12, 1945).

OBLIGATIONS OF THE USUFRUCTUARY1. Before exercising the usufruct:

a. To make an inventory of the property

b. To give a bond, EXCEPTi. when no prejudice would resultii. when the usufruct is reserved by the

donor or parentsiii. in cases of caucion juratoria where

the usufructuary, being unable to filethe required bond or security, files averified petition in the proper courtasking for the delivery of the houseand furniture necessary for himself and his family without any bond or security.1) takes an oath to take care of the

things and restore them2) property cannot be alienated or

leased because this would meanthat the usufructuary does notneed it

Effects of failure to post bond:a. owner shall have the following options:

i. receivership of realty, sale of movables, deposit of securities, or investment of money; OR

ii. retention of the property asadministrator

b. the net product shall be delivered to theusufructuary

c. usufructuary cannot collect credits due or make investments of the capital withoutthe consent of the owner or of the courtuntil the bond is given

2. During the usufruct:a. To take care of the propertyb. To replace with the young thereof animals

that die or are lost in certain cases whenthe usufruct is constituted on flock or herdof livestock

c. To make ordinary repairsd. To notify the owner of urgent extra

ordinary repairs

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e. To permit works and improvements bythe naked owner not prejudicial to theusufruct

f. To pay annual taxes and charges on the

fruitsg. To pay interest on taxes on capital paidby the naked owner

h. To pay debts when the usufruct isconstituted on the whole patrimony

i. To secure the naked owners or courtsapproval to collect credits in certain cases

j. To notify the owner of any prejudicial actcommitted by third persons

k. To pay for court expenses and costsregarding usufruct

3. At the termination of the usufruct :

a. To return the thing in usufruct to theowner unless there is a right of retentionb. To pay legal interest on the amount spent

by the owner for extraordinary repairs or taxes on the capital

c. To indemnify the owner for any lossesdue to his negligence or of his transferees

RIGHTS OF THE OWNER DURING THEUSUFRUCT:1. He retains title2. He may alienate the property, but he may not:

a. alter the form or substance of the thing

b. do anything prejudicial to the usufructuary3. He may construct buildings, makeimprovements and plantings, provided:a. the value of the usufruct is not impairedb. the rights of the usufructuary are not

prejudicedOBLIGATIONS OF THE OWNER AT THEEXPIRATION OF THE USUFRUCT:1. to make reimbursement for advances of the

usufructuary2. to cancel the bond, upon discharge of the

usufructuarys obligations3. to respect leases of rural lands by the

usufructuary for the balance of the agriculturalyear

EXTINGUISHMENT OF USUFRUCT (PT 2DERM)1. P rescription2. Termination of right of the person constituting

the usufruct3. Total loss of the thing4. Death of the usufructuary, unless contrary

intention appears5. Expiration of the period or fulfillment of the

resolutory condition6. Renunciation of the usufructuary

7. Merger of the usufruct and ownership in thesame person

Encumbrance imposed upon an immovable for the benefit of a community or one or morepersons or for the benefit of another immovable

belonging to a different owner.EASEMENT AND SERVITUDE DISTINGUISHED

EASEMENT SERVITUDE

Origin

English law Roman law

Recipient of Benefit

always real may be real or personal (broader)

CHARACTERISTICS:1. It is a real right but will affect third persons

only when duly registered.2. It is enjoyed over another immovable, never

on ones own property3. It involves two neighboring estates (in case of

real easements).4. It is inseparable from the estate to which it is

attached, and, therefore, cannot be alienatedindependently of the estate.

5. It is indivisible for it is not affected by thedivision of the estate between two or morepersons.

6. It is a right limited by the needs of the

dominant owner or estate, withoutpossession.7. It cannot consist in the doing of an act unless

the act is accessory in relation to a realeasement.

8. It is a limitation on the servient owners rightsof ownership for the benefit of the dominantowner; and, therefore, it is not presumed.

CLASSIFICATION:1. As to recipient of benefit:

a. Real/Predial when the easement is infavor of another immovable

b. Personal when it is in favor of acommunity or of one or more personsi. Public if it is vested in the public at

large or in some class of indeterminate individuals

ii. Private if it is vested in adeterminate individual or certainpersons

2. As to its source:a. Voluntary when the easement is

established by the will or agreement of the parties or by a testator

b. Legal when it is imposed by law either

for public use or in the interest of privatepersonsc. Mixed when it is created partly by will

or agreement and partly by lawEASEMENT OR SERVITUDE

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3. As to its exercise:a. Continuous Easements those the use

of which is, or may be, incessant without

the intervention of any act of manb. Discontinuous Easements thosewhich are used at intervals and dependupon the acts of man

4. As to the indication of their existence:a. Apparent Easements those which are

made known and are continually kept inview by external signs that reveal the useand enjoyment of the same

b. Nonapparent Easements thosewhich show no external indication of their existence

5. As to duty of servient owner

a. Positive the servient owner must allowsomething to be done in his property or do it himself; also called servitudes of intrusion and or/service

b. Negative the servient owner mustrefrain from doing something which hecould lawfully do if the easement did notexist

EASEMENT AND LEASE DISTINGUISHEDEASEMENT LEASE

Real right, whether registered or not

Real right only when itis registered, or when

its subject matter is realproperty and theduration exceeds oneyear

Imposed only on realproperty

May involve either realor personal property

There is a limited rightto the use of realproperty of another butwithout the right of possession

Limited right to both thepossession and use of anothers property

EASEMENT AND USUFRUCT DISTINGUISHEDEASEMENT USUFRUCT

Imposed only on realproperty

May involve either realor personal property

Limited to particular or specific use of theservient estate

Includes all the usesand the fruits of theproperty

A nonpossessory rightover an immovable

Involves a right of possession in animmovable or movable

Not extinguished by thedeath of the dominantowner

Extinguished by thedeath of theusufructuary

MODES OF ACQUISITION: (PDFAT)1. by p rescription of 10 years (continuous and

apparent easements)

a. Positive servitude - counted from theday their exercise commences.

b. Negative servitude - counted from the

formal prohibition to the servient owner todo any act opposed to the servitude (Art.621). There must be a notarized document .

2. by d eed of recognition3. by f inal judgment4. by a pparent sign established by the owner of

two adjoining estates, unless:a. there are contrary stipulations or b. the sign is effaced

5. by title

DOMINANT OWNER

Rights:1. To exercise all the rights necessary for the

use of the easement2. To make on the servient estate all the works

necessary for the use and preservation of theservitude

3. To renounce the easement if he desires toexempt himself from contribution to necessaryexpenses

4. To ask for mandatory injunction to preventimpairment of his use of the easement

Obligations:1. Cannot render the easement or render it

more burdensome2. Notify the servient owner of works necessary

for the use and preservation of the servitude3. Choose the most convenient time and

manner in making the necessary works as tocause the least inconvenience to the servientowner

4. Contribute to the necessary expenses if thereare several dominant estates

SERVIENT OWNER

Rights:1. To retain ownership and possession of the

servient estate2. To make use of the easement, unless there is

agreement to the contrary3. To change the place or manner of the

easement, provided it be equally convenient

Obligations:1. Cannot impair the use of the easement2. Contribute to the necessary expenses in case

he uses the easement, unless there is anagreement to the contrary

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EXTINGUISHMENT OF EASEMENTS (REMAINBREW)1. Redemption agreed upon2. Expiration of the term or fulfillment of the

resolutory condition3. Merger of ownership of the dominant andservient estate

4. Annulment of the title to the servitude5. Permanent impossibility to use the easement6. Nonuser for 10 years

a. discontinuous: counted from the day theyceased to be used

b. continuous: counted from the day an actadverse to the exercise takes place

7. Bad condition when either or both estatesfall into such a condition that the easementcould not be used

8. Resolution of the right to create the servitude,(i.e. in case of pacto de retro, when the

property is redeemed)9. Expropriation of the servient estate10. Waiver by the dominant owner

LEGAL EASEMENTS

Kinds of Legal Easements:1. Public legal easements those for public or

communal use, governed primarily by speciallaws and by the Civil Code

2. Private legal easements those for theinterest of private persons or for private use;governing law:a. primarily by the agreement of the

interested parties;b. in the absence thereof, by the provisions

of general or local laws and ordinances;and

c. in default of (a) and (b), by the Civil Code

I. Easement Relating To Waters (Art. 637) :Lower estates must receive waters which arenaturally and without intervention of man

descend from higher estates including earthor stones carried with them (Art. 637)

Limitations:1. Dominant owner must not increase the

burden but he may erect works to avoiderosion.

2. The servient owner must not impede thedescent of the water (but may regulate it).

II. Easement On Riparian Property ( Art. 638 )

III. Easement On Dam Or Weir ( Art. 639 )

IV. Easement For Watering Cattle (Art. 640):This is a combined easement for drawing of water and right of way

Requisites:a. must be imposed for reasons of public

use

b. must be in favor of a town or villagec. indemnity must be paid

V. Easement of Aqueduct (Arts. 643646)

From a forced easement, by virtue of which the owner of an estate who desiresto avail himself of water for the use of said estate may make such waters passthrough the intermediate estate with theobligation of indemnifying the owner of the same and also the owner of theestate to which the water may filter or

flow

Requisites:1. dominant owner must prove that he has

the capacity to dispose of the water 2. that the water is sufficient for the intended

use3. that the course is most convenient, and

least onerous to the 3 rd person4. payment of indemnity

VI. Easement For The Construction of A StopLock or Sluice Gate (Art. 647)

VII. Easement of Right of Way (Arts. 649657):The right granted to the owner of an estatewhich is surrounded by other estatesbelonging to other persons and without anadequate outlet to a public highway todemand that he be allowed a passagewaythroughout such neighboring estates after payment of proper indemnity.

Requisites:1. Claimant must be the owner of the

enclosed immovable or one with real

right;2. The dominant estate is surrounded by

other immovables and there must be noadequate outlet to a public highway;

3. Right of way must be absolutelynecessary;

4. Isolation must not be due to theclaimants own act;

5. Easement must be established at thepoint least prejudicial to the servientestate; and insofar as consistent with thisrule, where the distance from thedominant estate to the public highwaymay be the shortest; and

6. Payment of proper indemnity.

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The burden of proving the existence of the pre-requisites to validly claim acompulsory right of way lies on the owner

of the dominant estate (Costabella Corp.vs. CA, GR No. 80511, Jan. 25, 1991).

Where the easement may be establishedon any of several tenements surroundingthe dominant estate, the one where theway is shortest and will cause the leastdamage should be used, even if it will notbe the shortest. The criterion of leastprejudice to the servient estate mustprevail over the criterion of shortestdistance (Quimen vs. CA, GR No.112331, May 29, 1996).

It is the needs of the dominant propertywhich ultimately determine the width of the passage, and these needs may varyfrom time to time (Encarnacion vs. CA, GR No. 76322 March 11, 1991).

The right of way for cattle should not bemore than 10 meters wide unless agreater width was a vested right under laws prior to the Civil Code of 1889 (Art.657).

Special Cause of Extinction: 1. the opening of a public road, or 2. joining the dominant tenement to another

with exit on a public road

The extinction is NOT automatic. Theremust be a demand for extinction coupledwith tender of indemnity by the servientowner.

Easement of right of way cannot beacquired by prescription because it isdiscontinuous/intermittent (Ronquillo, et al.vs. Roco GR No. L-10619, February 28,1958).

VIII.Easement of Party Wall (Arts. 658666) Party Wall - common wall which separates 2estates built by common agreement at thedividing line such that it occupies a portion of both estates on equal parts

Party Wall and Coownership Distinguished PARTY WALL COOWNERSHIP

Shares of partiescannot be physicallysegregated but theycan be physicallyidentified

Shares of the coowners can be dividedand separatedphysically but beforesuch division, a co

owner cannot point toany definite portion of the property asbelonging to him

No limitation as touse of the party wallfor exclusive benefit

of a party

None of the coowners may use thecommunity property

for his exclusivebenefitOwner may freehimself fromcontributing to thecost of repairs andconstruction of aparty wall byrenouncing all hisrights thereto

Partial renunciation isallowed

Presumptions of Existence (juris tantum):1. in adjoining walls of buildings, up to

common elevation2. in dividing walls of gardens and yards

(urban)3. in dividing fences, walls and live hedges

of rural tenements4. in ditches or drains between tenements

Rebuttal of Presumption:1. title2. by contrary proof:3. by signs contrary to the existence of the

servitude (Arts. 660 & 661)

If the signs are contradictory, they canceleach other

Rights of Part Owners:1. to make use of the wall in proportion to

their respective interests, restingbuildings on it or inserting beams up toonehalf of the walls thickness

2. to increase the height of the walla. at his expenseb. upon payment of proper indemnityc. to acquire half interest in any

increase of thickness or height,paying a proportionate share in thecost of the work and of the landcovered by the increase

Obligations of Each PartOwner:1. to contribute proportionately to the repair

and maintenance unless he renounceshis partownership

2. if one part owner raises the height of thewall, he must:a. bear the cost of maintenance of the

additionsb. bear the increased expenses of

preservationc. bear the cost of construction

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d. give additional land, if necessary, tothicken the wall

IX. Easement of Light and View (Arts. 667

673)1. Easement of Light (jus luminum) rightto admit light from the neighboring estateby virtue of the opening of a window or the making of certain openings.

Requisites:a. opening must not be greater than 30

centimeters square, made on theceiling or on the wall; and

b. there must be an iron grating

2. Easement of view (jus prospectus) the

right to make openings or windows, toenjoy the view through the estate of another and the power to prevent allconstructions or work which wouldobstruct such view or make the samedifficult. It necessarily includes easementof light.

Restrictions on openings in ones own wall when contiguous (less than 2m) to anotherstenement:1. it cannot exceed 30cm each side2. openings must be at the height of the

joists, near the ceiling (Choco vs.Santamaria, GR No. 6076, December 29,1911).

3. the abutting owner may:a. close the openings if the wall

becomes a party wallb. block the light by building or erecting

his own wall unless a servitude isacquired by title or prescription

c. ask for the reduction of the opening tothe proper size

Restrictions as to views:

1. Direct views : the distance of 2m betweenthe wall and the boundary must beobserved

2. Oblique views: (walls perpendicular or at an angle to the boundary line) must notbe less than 60cm from the boundary lineto the nearest edge of the window

Any stipulation permitting lesser distances is void (Art. 673).

Modes of Acquisition1. by title2. by prescription

a. positive counted from the time of the opening of the window, if it isthrough a party wall

b. negative counted from the formalprohibition on the servient owner.

Mere nonobservance of distances

prescribed by Art. 670 without formalprohibition, does not give rise toprescription.

X. Drainage of Buildings (Arts. 674676)1. Easement of drainage of buildings

the right to divert or empty the rainwaters from ones own roof or shed tothe neighbors estate either drop bydrop or through conduits

2. Easement to receive falling rain waters deals not with legal easement butwith a voluntary easement to receive

rain water falling from the roof of anadjoining building3. Easement giving outlet to rain water

where house surrounded by other housesRequisites:a. there must be no adequate outlet to

the rain water because the yard or court of a house is surrounded byother houses

b. the outlet to the water must be at thepoint where egress is easiest andestablishing a conduit for drainage

c. there must be payment of proper indemnity

XI. Intermediate Distances And Works For Certain Constructions And Plantings (Arts.677681)1. Constructions : wells, sewers, etc.

a. distance is fixed by ordinances orcustom must be observed

b. protective structures prescribed byordinances or custom must beerected; if none, precautions mustbe taken to avoid damage toneighboring estates

c. violation causes responsibility fordamages caused

2. Plantings :a. distances as prescribed by

ordinances or customs must beobserved. If none:i. for large trees: at least 2m from

boundaryii. for shrubs: at least 50cm from the

center of the treeb. intrusions;

i. of branches: the owner of the treemay be compelled to cut intrudingbranches at the boundary

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ii. of roots: the owner of the invadedtenement may cut them himself at the boundary

iii. fruits falling naturally belong tothe owner of the land

XII. Easement Against Nuisance (Arts. 682-683)

XIII.Lateral and Subjacent Support (Arts. 684-687)

Lateral support when the supported andsupporting lands are divided by a verticalplane

Subjacent support when the supportedland is above and the supporting land isbeneath

There exists a doubt as to whether easements against nuisance and lateraland subjacent support may becategorized as legal easements (Reyes-Puno. pp.188189).

The duty of an adjacent owner makingexcavations upon his land not to depriveany adjacent land of sufficient lateral or subjacent support is an absolute one. Itdoes not depend upon the degree of careand precaution made by the proprietor inmaking the excavation or building in hisland (De Jesus, et al vs. Howmart Corp.et al, GR No. 44191-R, August 28, 1974).

VOLUNTARY EASEMENTS (Arts. 688-693)Constituted by the will of the parties or of atestator.

The owner possessing capacity to encumber property may constitute voluntary servitude.If there are various owners, ALL mustconsent; but consent once given is notrevocable.

Rules governing voluntary easements:1. if created by title, such as contract or will,

then by such title2. if created by prescription, by the form and

manner of possession of the easement3. in default of any of the above, by the

provisions of the Civil Code on easements

Voluntary easements are established in favor

of:1. predial servitudes:a. for the owner of the dominant estate

b. for any other person having any juridicalrelation with the dominant estate, if theowner ratifies it

2. personal servitudes: for anyone capacitatedto accept

Any act, omission, establishment, business or condition of property or anything else which:(ISAHO)1. Injures/endangers the health or safety of

others;2. S hocks, defies or disregards decency or

morality;3. Annoys or offends the senses;

4. Hinders or impairs the use of property; or 5. Obstructs or interferes with the free passageto any public highway or street, or body of water.

CLASSES:1. Per se nuisance at all times and under all

circumstances regardless of location andsurrounding.

2. Per accidens nuisance by reason of circumstances, location, or surroundings.

3. Public affects the community or aconsiderable number of persons.

4. Private affects only a person or a smallnumber of persons.

5. Mixed nuisance may be both public andprivate in character

DOCTRINE OF ATTRACTIVE NUISANCEOne who maintains on his premises dangerousinstrumentalities of a character likely to attractchildren in play and who fails to exercise ordinarycare to prevent children from playing therewith or resorting thereto is liable to a child of tender yearswho is injured thereby, even if the child istechnically a trespasser in the premises.

A swimming pool or water tank is not anattractive nuisance (Hidalgo Enterprises vs.Balandan GR No. L-3422, June 13, 1952).

REMEDIES AGAINST PUBLIC NUISANCE:(PCE)1. P rosecution under the RPC or local ordinance2. Civil Action3. Extrajudicial Abatement

REMEDIES AGAINST PRIVATE NUISANCE:(CE)1. Civil Action2. Extrajudicial Abatement

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NUISANCE

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Note: The action to abate a public/privatenuisance is NOT extinguished by prescription.

EXTRAJUDICIAL ABATEMENTRequisites:1. nuisance must be specially injurious to the

person affected;2. no breach of peace or unnecessary injury

must be committed;3. prior demand;4. prior demand has been rejected;5. approval by district health officer and

assistance of local police; and6. value of destruction does not exceed P3,000.

REGISTRATION any entry made in a book or public registry of deeds

Systems of registration:1. Former registration systems

a. Spanish Mortgage Law of 1893b. Torrens System established by the Land

Registration Act (Act No. 496)c. Sec. 194 - Revised Administrative Code

2. Present registration system - PropertyRegistration Decree (PD No. 1529)

Effects of registration:1. operates as constructive notice2. does not validate or cure defective instrument3. cannot bind property where it is legally

ineffective4. does not vest title5. rule of first in time, first in right

MODE the actual process of acquisition or transfer of ownership over a thing in question.This is the proximate cause of the acquisition.

TITLE - the juridical justification for the acquisitionor a transfer of ownership or other real right. Thisis the remote cause of the acquisition ( Acap vs.CA, GR No. 118114, December 7, 1995)

Different Modes and Titles of AcquiringOwnership

MODES OF ACQUIRING

OWNERSHIP

TITLES OF ACQUIRING

OWNERSHIPOriginal Modes

Occupation Condition of beingwithout known owner

Work which includesIntellectual creation

Creation, discovery or invention

Derivative ModesLaw Existence of required

conditionsTradition Contract of the partiesDonation Contract of the partiesPrescription Possession in the

concept of owner Succession Death

TRADITION/ DELIVERY - a mode of acquiringownership as a consequence of certain contracts ,by virtue of which, the object is placed in thecontrol and possession of the transferee, actuallyor constructively.

Requisites:1. Right transmitted should have previouslyexisted in the patrimony of the grantor;

2. Transmission should be by just title;3. Grantor and grantee should have intention

and capacity to transmit and acquire; and4. Transmission should be manifested by some

act which should be physical, symbolical or legal.

Kinds:1. Real Tradition actual delivery2. Constructive Tradition

a. traditio symbolica parties make use of atoken or symbol to represent the thingdelivered

b. traditio longa manu by mere consent of the parties if the thing sold cannot betransferred to the possession of thevendee at the time of the sale

c. traditio brevi manu when the vendeealready has possession of the thing soldby virtue of another title

d. traditio constitutum possessorium whenthe vendor continues in possession of thething sold not as owner but in some other

capacity3. Quasitradition exercise of the right of the

grantee with the consent of the grantor 4. Tradicion por ministerio de la ley delivery

by operation of law5. Tradition by public instrument the

execution is equivalent to the delivery of thething, object of the contract

A mode of acquiring ownership by the seizure of corporeal things that have no owner, with theintention of acquiring them, and according to therules laid down by law

REQUISITES:

REGISTRY OF PROPERTY

THEORY OF MODE AND TITLE

OCCUPATION

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1. There must be seizure of a thing;2. The thing seized must be corp

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