property law reviewer

PROPERTY – Prof. Labitag of 48

TABLE OF CONTENTS

I. DEFINITION OF PROPERTY....................................................................................................................................... 2A. Classification under the Civil Code....................................................................................................................................................2B. By Ownership.................................................................................................................................................................................... 2C. Other Classifications..........................................................................................................................................................................2

II. OWNERSHIP........................................................................................................................................................... 2A. Definition.......................................................................................................................................................................................... 2B. Bundle of Rights included in Ownership............................................................................................................................................2C. Other Specific Rights found in the Civil Code....................................................................................................................................2D. Limitations of Real Right of Ownership.............................................................................................................................................2

III. RIGHTS OF ACCESSION........................................................................................................................................... 2A. Concept............................................................................................................................................................................................. 2B. General Principles of Accession.........................................................................................................................................................2C. Obligations of Receiver of Fruits to Pay Expenses by 3rd person in producti on, gathering and preservation....................................2D. Kinds of Accession.............................................................................................................................................................................2

1. Accession Discreta........................................................................................................................................................................22. Accession Continua......................................................................................................................................................................2

Over Immovables..............................................................................................................................................................................2Over Movables..................................................................................................................................................................................2

IV. QUIETING OF TITLE............................................................................................................................................... 2A. Differences between Action to Quiet Title and Action:.....................................................................................................................2B. Prescription of Action to Quiet Title..................................................................................................................................................2C. Who are Entitled to Bring Action?.....................................................................................................................................................2D. Notes................................................................................................................................................................................................. 2

V. CO-OWNERSHIP...................................................................................................................................................... 2A. Definition.......................................................................................................................................................................................... 2B. Characteristics of co-ownership........................................................................................................................................................2C. Differences between Co-ownership and Joint Tenancy.....................................................................................................................2D. Differences between Co-ownership and Partnership........................................................................................................................2E. Source of Co-ownership....................................................................................................................................................................2F. Rights of each co-owner as to the thing owned in common.............................................................................................................2G. Implications of co-owners right over his ideal share.........................................................................................................................2H. Rules on co-ownership not applicable to conjugal partnership of gains or absolute community of property...................................2I. Special rules on co-ownership from provisions of Condominium Law (Act No. 4726)......................................................................2J. Extinguishment of co-ownership.......................................................................................................................................................2

VI. POSSESSION.......................................................................................................................................................... 2A. Definition and Concept.....................................................................................................................................................................2B. Essential Requisites of Possession.....................................................................................................................................................2C. Degrees of Holding of Possession......................................................................................................................................................2D. Cases of Possession...........................................................................................................................................................................2E. What things or rights may be possessed...........................................................................................................................................2F. What may not be possessed by private persons...............................................................................................................................2G. Acquisition of Possession..................................................................................................................................................................2H. Effects of Possession.........................................................................................................................................................................2I. Effect of possession in the concept of an owner...............................................................................................................................2J. Presumptions in favor of the possessor............................................................................................................................................2K. Possession may be lost by.................................................................................................................................................................2

VII. USUFRUCT........................................................................................................................................................... 2A. Concept............................................................................................................................................................................................. 2B. Historical considerations...................................................................................................................................................................2C. Characteristics of Usufruct................................................................................................................................................................2D. Usufruct distinguished from lease; from servitude...........................................................................................................................2E. Classes of Usufruct............................................................................................................................................................................2F. Rights of Usufruct..............................................................................................................................................................................2G. Rights of Naked Owner.....................................................................................................................................................................2H. Obligations of Usufructuary..............................................................................................................................................................2I. Special Cases of Usufruct..................................................................................................................................................................2J. Extinguishment of Usufruct...............................................................................................................................................................2


VIII. EASEMENTS OR SERVITUDES............................................................................................................................... 2A. Definition.......................................................................................................................................................................................... 2B. Essential feature of easements/real servitudes/praedial servitudes.................................................................................................2C. Classification of Servitudes................................................................................................................................................................2D. General rules relating to servitudes..................................................................................................................................................2E. Modes of acquiring easements.........................................................................................................................................................2F. Rights and obligations of owners of dominant and servient estates.................................................................................................2G. Modes of extinguishment of easements...........................................................................................................................................2H. Legal Easements................................................................................................................................................................................2

BOOK III – DIFFERENT MODES OF ACQUIRING OWNERSHIP........................................................................................... 2Mode and Title Differentiated....................................................................................................................................................................2Modes of Acquiring Ownership..................................................................................................................................................................2Occupation................................................................................................................................................................................................. 2Intellectual creation....................................................................................................................................................................................2

DONATION................................................................................................................................................................ 2Nature of donation..................................................................................................................................................................................... 2Requisites of donation................................................................................................................................................................................2Kinds of donation........................................................................................................................................................................................2Who may not give or receive donations.....................................................................................................................................................2Who may give or receive donations............................................................................................................................................................2Acceptance of donation..............................................................................................................................................................................2Form of donations......................................................................................................................................................................................2What may be donated................................................................................................................................................................................ 2Effect of donation.......................................................................................................................................................................................2Revocation and Reduction of Donations.....................................................................................................................................................2

LEASE........................................................................................................................................................................ 2A. General characteristics of every lease...............................................................................................................................................2B. Kinds of leases................................................................................................................................................................................... 2C. Lease of things..................................................................................................................................................................................2


I. DEFINITION OF PROPERTYPROPERTY

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.

In order that a thing may be considered as property: o Utility – capacity to satisfy human wantso 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 immovable3. 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 object4. 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 tenements5. 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 land8. Mines, quarries, and slag dumps , while the matter thereof forms part of the bed, and waters either running or stagnant9. Docks and structures which, though floating are intended by their nature and object to remain at a fixed place on a river,

lake or coast10. 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 fruitsArt 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 instrumentsArt 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 ClassificationFrom point of view of:

i. Criminal Lawii. Form of contracts involving movables or immovablesiii. Prescriptioniv. 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 Creditsviii. Causes of Action to Recover

3. Differences between Real Rights and Personal Rights

Point of comparison REAL RIGHTS PERSONAL RIGHTSDefinition 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 3rd 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 remNumber of persons involved in the juridical relation

Active subject – 1Passive subject - the rest of the world without individual determination

Definite active subjectDefinite 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 citizenscf. 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 StateArt 420 Art 421 Art 422 see above

i. For public useii. For public service

iii. For development of national wealth

LA BUGAL B’LAAN TRIBAL ASSN. v RAMOS (2004)ON RECONSIDERATION (2005)

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

USERO v CA (2006)


b. Property of Municipal CorporationsArt 424, Par 1 see above

i. For public use including public works for public service

3. Private Property

a. Patrimonial Property of StateArt 421 see above

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

c. Private Property of Private PersonsArt 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 manb. Property cannot be the subject of acquisitive prescriptionc. 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 existencea. 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 inanimateb. 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 himselfiii. Possible – when it can be done both in nature and in law

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

3. By their subsistence after useArt 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-fungibleFungible – 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 othersNon-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 divisiona. Divisible – can be divided physically or juridically without injury to their nature e.g. piece of land, inheritanceb. 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, dressb. 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 timea. 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 constitutiona. Singular

i. Simpleii. 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 appropriationa. Non-appropriable b. Appropriable

i. Already appropriatedii. Not yet appropriated

9. By reason of susceptibility to commercea. Within the commerce of manb. Outside the commerce of man


II. OWNERSHIP A. Definition

OWNERSHIP 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 Lawo Rights of others

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.

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

owned 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-helpArt 429 see aboveELEMENTS OF SELF-HELP

2. Right to enclose or fenceArt 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 expropriationArt 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 treasureArt 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 – ½ 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 accessionArt 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 property1) 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 recoveryArt 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 defendant’s 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 Limitationa. 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. Taxationc. Eminent domain

Art 435

2. Specific Limitationa. Legal servitudesb. Limitations imposed by party transmitting the property

i. By contract or last will or donationii. 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 viewsArt 677 Constructions near fortified places or fortressesArt 678 Building of aqueduct, well, sewer, furnace, chimney, stable, depository of corrosive substances, machinery or factory Art 679 Planting of trees near a tenementArt 649 Easement of right of wayArt 652 Acquisition of piece of land without right of wayArt 637 Receipt of lower estates of waters which naturally descend from higher estatesArt 676 Easement of drainageArt 644 Limitations on the imposition of easement of aqueductArt 684-687 Lateral and subjacent support

US v CAUSBY ( )LUNOD v MENESES ( )


III. RIGHTS OF ACCESSIONA. 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 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. 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 faithiv. In usufructv. In lease (although civil fruits go to the owner)

vi. In antichresis

C. Obligations of Receiver of Fruits to Pay Expenses by 3rd 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 interveneb. 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.

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

LO in bad faith

b. BPS builds, plants or sows on another’s 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

BPS in good faithArt 448 The

BPS in bad faithArt 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 faithArt 452 The Art 443 The

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

c. BPS builds, plants or sows on another’s land with materials owned by 3rd personsArt 455 The

N.B.: Good faith does not exclude negligenceArt 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 DEV’T CORP v CA ( )FELICES v IRIOLA ( )SPOUSES NUGUID v CA (1993)SPOUSES NUGUID v CA (2005)

2. Natural (Accession Continua Natural)

a. AlluviumArt 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 RiverArt 461 TheArt 462 TheArt 463 The

BAES v CA ( )BINALAY v MANALO


d. Formation of IslandsArt 461 TheArt 462 TheArt 463 TheArt 464 TheArt 465 TheSee PD 1067

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

Over Movables

1. Conjunction and Adjunction

a. Inclusion or Engraftment

b. Soldadura or Solderingi. Plumbatura – different metalsii. 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 TITLEA. Differences between Action to Quiet Title and Action:

Action to Quiet Title Action to Remove a CloudSubstantially 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 plaintiff’s 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 defendant’s claim, points out its defect, and prays that it be declared void

Action to Quiet Title Action to Prevent a CloudRelief 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

If plaintiff is in possession: imprescriptible 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-OWNERSHIPA. Definition

CO-OWNERSHIP 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, FCArt 148, FC Art 90

ii. PurchaseArt 1452

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

iv. DonationArt 753Art 573, 2 nd Par

v. ChanceArt 472

SIARI VALLEY ESTATE v LUCASAN ()

vi. Hidden treasureArt 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 agreementDuration of co-ownership: Art 494

b. Universal partnership Art 1778Art 1779Art 1780

c. Associations and societies with secret articlesArt 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 proportionArt 485

Contrary stipulation is void 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

Co-owner’s option not to contribute by waiving his undivided interest equal to amount of contribution – dacion en pagoException: if waiver is prejudicial to co-ownership

Requisites before repairs for preservation may be made or expenses for embellishment or improvement may be madeArt 489

Effects of failure to notify co-owners

5. To oppose any act of alteration

Remedy of other co-owners re acts of alterationArt 491

ACTS OF ALTERATION


a. Concept Any change injurious to the thing owned in common or to the rights of other co-owners or 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 minorityArt 492, 3 rd Par

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

7. To exercise legal redemption Art 1620Art 1623

MARIANO v CA ()VERDAD v CA ()

8. To ask for partitionArt 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 1621Art 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 benefitsb. 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 thingd. 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 partitionb. 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 499EXCEPT that creditors cannot ask for rescission even if not notified in the absence of fraudArt 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 personb. By one co-owner as against the other co-owners

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 evidenceii. Open and adverse possession, not mere silent possession for the required period of extraordinary

acquisitive prescriptioniii. 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 yearsArt 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 1091Art 543Art 1092Art 1093Art 499Art 500Art 501

c. Right of creditors of individual co-ownersArt 497

d. Procedure for partition Rule 69, Rules of Court


VI. POSSESSIONA. Definition and Concept

POSSESSION 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 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 eitherb. Exercise of a rightc. 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. 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 ownerE.g. possession of a vendee from vendor who pretends to be the owner This degree of possession ripens into full ownership by lapse of time.

4. Possession with a just title from the true owner 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 one’s 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 anotherArt 525

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

PLEASANTVILLE DEV’T 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 willi. Doctrine of constructive possession

ii. Includes constructive delivery1) Traditio brevi manu – thing is already in transferee’s hands

E.g. under a contract of lease, then delivered under a sale2) Traditio constitutum possessorium – thing remains in transferor’s hands

E.g. sale, then retained under a commodatum

c. Proper acts and legal formalities Refers to the acquisition of possession by:

- Sufficient title- Inter vivos- Mortis causa- Lucrative or onerous

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 personELEMENTS OF PERSONAL ACQUISITION

1. Capacity to acquire possession2. Intention to possess3. Possibility of acquiring possession

b. By his legal representativesREQUISITES

c. By his agent

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

e. Qualifiedly, minors and incapacitated persons Art 535

3. What do not affect possession


Art 537Art 1119

a. Acts merely toleratedArt 537

MACASAET v MACASAET (2004)

b. Acts executed clandestinely and without the knowledge of the possessorArt 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 possessorb. 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 faithArt 544Art 549

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


Art 552

4. Possession of movable acquired in good faith (in concept of owner) is equivalent to titleArt 559 Possessor has actual title which is defeasible only by true owner 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 itArt 541EXCEPTION: 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 faithArt 528

Mistake upon a doubtful or difficult question of law as a basis of good faithArt 526, Par 3

J. Presumptions in favor of the possessor

1. Of good faith until the contrary is provedArt 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 provedArt 554Art 1120Art 1121Art 1122Art 1123Art 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 propertyArt 533Art 1078

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

K. Possession may be lost by

1. Abandonment2. Assignment, either onerous or gratuitous3. Destruction or total loss of thing or it goes out of commerce4. Possession by another; if possession has lasted longer than one year; real right of possession not lost until after 10 years

Subject to Art 537 (on acts merely tolerated, etc)


A.

VII. USUFRUCTA. Concept

Art 562

USUFRUCT Is a real right, temporary in character that authorizes the holder to enjoy all the advantages derived from a normal exploitation

of another’s 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. Voluntaryb. Legal

Art 321Art 226, FC

c. Mixed

2. By person enjoying the right of usufruct

a. Simpleb. Multiple

i. Simultaneousii. Succession

Limitation on successive usufructArt 756Art 863Art 869

3. By object of usufruct

a. RightsArt 574

b. Thingsi. Normal

ii. Abnormal, irregular or quasi-usufruct

4. By the extent of usufruct

a. As to the fruitsi. Total

ii. Partial


Art 598

b. As to objecti. Singular

ii. Universal Art 595

Subject to provisions of:Art 758Art 759

5. By the terms of the usufructArt 564

a. Pureb. Conditionalc. 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 Fruits consist of natural, industrial and civil fruits As to hidden treasure, usufructuary is considered a stranger

Art 566Art 436

Fruits pending at the beginning of usufructArt 567

Civil fruitsArt 569Art 588

b. Right to lease the thing Art 572 Limitations Liability of usufructuary

Art 590 Exceptions to right of leasing the thing

FABIE v DAVID ()

c. Right to improve the thingArt 579

2. As to the legal right of usufruct itself

a. Right to mortgageRight of usufructArt 572

b. Right to alienate the usufructEXCEPT:

In purely personal usufructs 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 described2) Movables appraised

ii. EXCEPTION TO REQUIREMENT OF INVENTORY 1) No one will be injured thereby

Art 5852) Title constituting usufruct excused the making of inventory3) 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 5852) Usufruct is reserved by donor

Art 5843) 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 bondArt 586Art 599

2. During the usufruct

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

Effect of failure to comply with obligation Art 610

b. To undertake ordinary repairsArt 592ORDINARY REPAIRS

c. To notify owner of need to undertake extra-ordinary repairsArt 593EXTRA-ORDINARY REPAIRS

1) Concept of extraordinary repairs2) 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 rightsArt 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 usufructArt 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 repairsEXCEPTION: 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 cattleArt 591

4. Usufruct over vineyards and woodlandsArt 575Art 576

5. Usufruct on a right of actionArt 578

6. Usufruct on mortgaged property Art 600

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

8. Usufruct over deteriorable propertyArt 578

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

J. Extinguishment of UsufructArt 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 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 existenceArt 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 usufructa. Limitationsb. 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 usufructArt 608

1. When insurance premium paid by owner and usufructuaryArt 608, 1 st Par

i. If owner rebuilds, usufruct subsists on new buildingii. 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 607iii. 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 usufructuary’s insurable interest (not provided for in the Civil Code)

i. Insurance proceeds to usufructuary ii. No obligation to rebuild

iii. Usufruct continues on the landiv. Owner does not share in insurance proceeds

b. If destroyed property is not insuredArt 607

1. If building forms part of an immovable under usufructi. If owner does not rebuild, usufruct continues over the land and materialsii. 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 usufructb. Right of ownership lost through prescriptionc. Right of usufruct not began within prescriptive periodd. 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 usufructArt 609

b. Bad use of thing in usufructArt 810Owner’s right


c. Usufruct over a building Art 607Art 608


K.

VIII. EASEMENTS OR SERVITUDESA. Definition

EASEMENT or REAL SERVITUDES 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, 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 one’s 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 owner’s 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 Praedialb. 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 personsArt 634

b. Voluntary


3. As to its exerciseArt 615

a. Continuousb. Discontinuous

4. As indication of its existenceArt 615

a. Apparentb. Non-apparent

5. By the object or obligation imposedArt 616

a. Positiveb. Negative

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 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 estateii. By final judgment

iii. Existence of an apparent sign considered a titleArt 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 626To 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 easementArt 627


c. In a right of way, to ask for change in width of easement sufficient for needs of dominant estateArt 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 estateArt 627

c. Not to alter easement or render it more burdensomeArt 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 interestArt 628

Servient Estate

3. Rights of owner of servient estate

a. To retain ownership and use of his propertyArt 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 easementArt 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 Must be absolute, perfect and definite, not merely temporary

2. Non-user for 10 yearsa. Computation of the period

i. Discontinuous easements – counted from the day they ceased to be usedii. 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 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 easementb. Termination of the right of grantorc. Abandonment of the servient estated. 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 easementsi. Special laws and regulations relating thereto

1) PD 1067 – Water Code2) 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 3rd 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 watersArt 637

ONGSIAKO v ONGSIAKO ()

2) Easements on lands along riverbanksArt 638See Water Code

3) Abutment of a damArt 639

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

5) Drawing waters and watering animalsArt 640Art 641

6) Stop lock or sluice gate Art 649

b) The easement of right of way

Art 649Art 650Art 651Art 652Art 653Art 654Art 655Art 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 658Art 659Art 660Art 661Art 662Art 663Art 664Art 665Art 666

d) The easement of light and view

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

e) The easement of drainage of buildings

Art 674Art 675Art 676

f) The easement of distance for certain constructions

Art 677Art 678Art 679Art 680Art 681

g) The easement against nuisances

Art 682Art 683

h) The easement of lateral and subjacent supports

Art 684Art 685Art 686Art 687


BOOK III – DIFFERENT MODES OF ACQUIRING OWNERSHIPMode and Title Differentiated

MODE 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 Proximate cause

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

Modes of Acquiring Ownership

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

burdens or encumbrances

a. Occupationb. Intellectual creation

DERIVATIVE MODES 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 Law - e.g.

o Registration under Act 496o Estoppel of title

Art 1434 o Marriage under ACP o Hidden treasureo Accession

Art 445o Change in river’s course

Art 461o Accession continua over movables

Art 466Art 6681Art 1456Art 120

a) Donationb) Successionc) Prescriptiond) 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 TRADITIONb. Real traditionc. Constructive tradition

i. Symbolical deliveryii. Delivery of public instrument

iii. Traditio longamanuiv. Traditio brevi manuv. Traditio constitutum possessorium

vi. Quasi-traditionvii. Tradition by operation of law

Occupation

a. Not applicable to ownership of a piece of landArt 714

b. Privilege to hunt and fish regulated by special lawArt 715

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

d. Pigeons and fishArt 717

e. Hidden treasureArt 718Art 438Art 439

f. Lost movables Art 719Art 720

Procedure after finding lost movables

Intellectual creation Intellectual Property Code (RA 8293)

Intellectual Property Rights (IPR):a. Copyright & related rightsb. Trademarks & service marksc. Geographic indicationsd. Industrial designse. Patentsf. Topographies of integrated circuitsg. Rights of performers, producers of sound recordings & broadcasting orgsh. Protection of undisclosed informationi. Laws repealed by the IPC

Sec 239 All acts and part of acts inconsistent with Intellectual Property Code, particularly: PD 49 – Intellectual Property Decree, including PD 285 as amended RA 165, as amended – Patent Law RA 166, as amended Arts 188 and 189 of the RPC


DONATIONNature of donation

A bilateral contract creating unilateral obligations on donor’s part

Requisites of donation

a. Consent and capacity of the partiesb. Animus donandi (causa)c. Delivery of the thing donatedd. Form as prescribed by law

NOTE There must be impoverishment (in fact) of donor’s patrimony and enrichment on part of donee

Kinds of donation

1. As to its taking effecta. Inter vivos

Art 729Art 730Art 731

b. Mortis causa Art 728

c. Propter nuptias Art 82, FCArt 87, FC

2. As to cause or considerationa. Simpleb. Remuneratoryc. Onerous – imposes a burden inferior to the value of property donated

i. Improper – burden equal in value to property donatedii. Sub-modo or modal – E.g. imposes a prestation upon donee as to how property donated will be applied

Art 882iii. Mixed donations – negotium mixtum cum donatione e.g. sale for price lower than value of property

3. As to effectivity or extinguishmenta. Pureb. Conditional

Art 730Art 731

EFFECT OF AN IMPOSSIBLE CONDITION:c. With a term

4. Importance of classificationa. As to formb. As to governing rulesc. As to impossible conditions

Art 727Art 1183

5. Characteristics of a donation mortis causaa. Convey no title or ownership before donor’s deathb. Before donor’s death, transfer is revocablec. 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 735Art 737Art 738Art 741Art 742

Who may give or receive donations

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

Acceptance of donation

1. Who may acceptArt 745Art 747

2. Time of acceptancea. of donation inter vivos

Art 746b. of donation mortis causa

Form of donations

1. Personal propertyArt 748

2. Real propertyArt 749

3. Rules in Art 748 and Art 749 not applicable to: a. Onerous donations b. Modal donationsc. Mortis causa donationsd. 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 acceptanceArt 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 donor’s debts contracted before donation, otherwise, donation is in fraud of creditors Art 759Art 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 propertyArt 84, FCArt 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 propertyArt 751 Anything which donor cannot dispose of at the time of donationEXCEPTION Marriage settlements of future spouses only in event of death to extent laid down in CC re: testamentary succession

Art 84, FCArt 130 CC

Effect of donation

A. In general

SHOPPER’S PARADISE REALTY v ROQUE (2004)

1. Donee may demand actual delivery of thing donated

2. Donee is subrogated to rights of donor in property donatedArt 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 burdenArt 754

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

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

6. Donations to several donees jointly - no right of accretion, EXCEPTa. Donor provides otherwiseb. 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 donatedArt 755

2. Donation of naked ownership to one donee and usufruct to another Art 756

3. Conventional reversion in favor of donor or other personArt 757

4. Payment of donor’s debtArt 758a. 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 intendedb. If there is no stipulation

o Donee answerable only for donor’s debt only in case of donation is in fraud of creditors5. Illegal or impossible conditions

Art 727Art 1183

Revocation and Reduction of Donations

A. Revocation distinguished from reduction of donations

Revocation Reduction

B. Causes of Reduction/Revocation

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

a. Who may ask for reductionArt 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 donorArt 760

C. Revocation only

1. Ingratitude

a. CausesArt 765

b. Time to file action for revocationArt 769

c. Who may fileArt 770

d. Effect of revocation

On alienation and mortgagesArt 766Art 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 762Art 764 Par 2Art 767

4. Effect as to fruits

Art 768


LEASEA. General characteristics of every lease

1. Temporary duration2. Onerous3. 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 laborArt 1700Art 1701Art 1702Art 1703Art 1704Art 1705Art 1706Art 1707Art 1708Art 1709Art 1710Art 1711Art 1712

3. Lease of services

a. Household service

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

c. Lease of services of common carriersArt 1732Art 1733


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

C. Lease of things

1. Concept Art 1643

2. Consumable things cannot be the subject matter of lease EXCEPTArt 1645a. 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 thingsa. Essential purpose is to transmit the use and enjoyment of a thingb. Consensualc. Onerousd. 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 yearsb. Indefinite period

i. Rural landArt 1682

ii. Urban landArt 1687

6. Assignment of lease


Art 1649

7. SubleaseArt 1650

a. House Rental Law (RA 9653)

b. Obligation of sublessee to lessorArt 1651For rentsArt 1652

8. Rights and obligations of lessor and lessee

a. Obligations of a lessorArt 1654Art 1661

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

c. Right of lessee to suspend payment of rentalsArt 1658

d. Right to ask for rescissionArt 1659Art 1660

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

9. Grounds for ejectment of lessee by lessorArt 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 casesArt 1674Art 539, Par 2

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

12. Right of purchase of leased landArt 1676Art 1677

13. Useful improvements in good faith made by lesseeArt 1678

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


Art 1682Art 1683Art 1684Art 1685

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

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