07 possession

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PROPERTY REVIEWER

Part 7POSSESSION

A. Definition and Concept

Art. 523. Possession is the holding of athing or the enjoyment.

(1) Possession is the holding of athing of the enjoyment (exercise) of a right, whether by materialoccupation (de facto possession) orby the fact that the thing or the rightis subjected to the action of our will.(2) It is a real right independent of

and apart from ownership.

Right of possession( jus possessionis)

independent right

Right to possess( jus possidendi)

an incident of ownership

B. Essential requisites of possession

(1) Holding or control of a thing orright (corpus) consists of either:

(a) the material or physical either(b) exercise of a right(c) constructive possession

• possession always includes theidea of physical occupation; nooccupation = no possession EXCEPT

Art. 537. Acts merely tolerated, andthose executed clandestinely andwithout the knowledge of the possessorof a thing, or by violence, do not affectpossession.

• occupancy may be held byanother in the possessor’s name.

• doctrine of constructivepossession applies when thepossession is under title calling forthe whole, i.e., possession of a partis possession of the whole.

• lessor is the constructivepossessor, while the lessee is theactual possessor

• constructive possession alsoapplies to movables, i.e., in criminallaw, there is constructive possessioneven when the prohibited drugs orfirearm is not found within theperson of the accused.

Cases

Ramos v. Dir of Lands

FactsRostituto Romero obtained a

possessory information title of a parcelof land in Nueva Ecija through a RoyalDecree. He then sold this to CornelioRamos. Ramos then institutedappropriate proceedings to have his titleregistered. Opposition was entered bythe Dir of Lands on the ground thatRamos has not acquired a good title to

the land and the Dir of Forestry on theground that the first parcel of land was aforest land. Ramos has cultivated only¼ of the land.

Held The occupancy of a part of the land

with an instrument giving color of title issufficient to give title to the entire tractof land. This is so because of constructive possession. The generalrule is that the possession andcultivation of a portion of a tract of landunder a claim of ownership of all is aconstructive possession of all, IF theremainder is not in the adversepossession of another.

BLOCKD2008al.beth.kalin.may.miles.py

special thanks to: anna.bodee.cha.etol.hardy.len.mia

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PROPERTY REVIEWER

Possession in the eyes of the lawdoes not mean that a man has to havehis feet on every square meter of ground before it can be said that he is inpossession. Ramos has color of title,

acted in good faith, and had open,peaceable, and notorious possession of the property sufficient to apprise thecommunity that the land was for hisenjoyment. Thus, under the Public LandLaw, he is entitled to a certificate of titleto the entire tract of land.

Director v. CAFacts

A land was occupied by 40 tenantsduring the Spanish regime. They weregranted homestead applications. Bruno

died during the Spanish regime and wassurvived by 7 children. Bruno’s brother,Leon has a son named Onofre whoobtained a tax declaration for the 138hectares. Emilio Cabauatan, Onofre’sson, claimed that in 1937, Miguel Binag,lawyer of Bruno’s heirs, proposed to usethe said declaration in the landregistration proceedings. He promisedto give Onofre’s heirs 1/3 of the land.

Judge issued a decree for theregistration of the parcel of land in the

names of Bruno’s heirs. Fiscal objectedbecause the land was subject tohomestead applications.

HeldBruno’s heirs have no right to the

registration of the land. The rule onconstructive possession does not applybecause the major portion of thedisputed 138 hectares has been in theadverse possession of homesteadersand their heirs. It is still part of thepublic domain until the patents are

issued.

(2) Intention to possess (animus possidendi)

• it is a state of mind whereby thepossessor intends to exercise anddoes exercise a right of possession,whether or not such right is legal

• intention may be inferred fromthe fact that the thing in question isunder the power and control of thepossessor

• may be rebutted by contraryevidence, e.g., stolen property isplaced in a man’s house without hisknowledge.

C. Degrees of holding of possession

(1) Mere holding or possessionwithout title whatsoever and inviolation of the right of the owner.

• applies to both movablesand immovables

• both the possessor and thepublic know that the possession iswrongful

• e.g., possession of a thief or a usurper of the land

• there can be no acquisitiveprescription of movables under the

NCC (Art. 1133)

Art. 1133. Movables possessed througha crime can never be acquired throughprescription by the offender.

(2) Possession with juridical title but notthat of ownership.

• peaceably acquired

• this will never ripen interestingfull ownership as long as there is norepudiation of concept under which

the property is held, i.e., from holderto that of owner (if such repudiationis made known to the owner, thenextraordinary prescription of 30 yrswill apply)



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• e.g., possession by tenant,depositary, agent, bailee, trustee,lessee, antichretic creditor

• even actual owner may beprevented by law from taking

possession• a depositary bank is not apossessor in this degree, since adeposit is actually a loan to the bank

(3) Possession with just title or titlesufficient to transfer ownership, butnot from the true owner

• title— deed of sale or contract of sale

• possession of a vendee fromvendor who pretends to be the

owner, i.e., innocent buyer of stolengoods

• good faith of buyer = just title

Art. 1507. Where the seller of goodshas a voidable title thereto, but his titlehas not been avided at the time of thesale, the buyer acquires a good title tothe goods, provided he buys then ingood faith, for value, and without noticeof the seller’s defect in title.

•

if in good faith, extraordinaryprescription of 30 years will apply

• this degree of possession ripensinteresting full ownership by lapse of time

(4) Possession with just title from thetrue owner

• possession springs fromownership

• the delivery of possessiontransfers wnership and strictly

speaking, it is the jus possidendi thatis transferred (right to possess whichis an incident of ownership)

D. Cases of possession

(1) Possession for oneself, orpossession exercised in one’s ownname and possession in the name of another.

Art. 524. Possession may be exercisedin one's own

name or in that of another.

• rights of possession may beexercised through agents

(a) necessary— exercised on behalf of the conceived child, of juridicalpersons, of persons not sui juris,and of the conjugal partnership

(b) voluntary— in cases of agents or

administrators appointed by theowner or possessor

• this article contemplatestwo (2) situations (accdg to Manresa):(a) that of a person who has the

thing or enjoys the right, and istherefore the possessor

(b) that of a person who neither hasnor enjoys the right, and istherefore not a possessor butwho exercises the possession of anther.

Note: a lessee is a possessor in hisown name, but in the concept of aholder.

(2) Possession in the concept of anowner and possession in the conceptof a holder with the ownershipbelonging to another

Art. 525. The possession of things orrights may be

had in one of two concepts: either in theconcept of

owner, or in that of the holder of thething or right

to keep or enjoy it, the ownershippertaining to



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another person.

• In the Concept of a Holder

such possessor

acknowledges in another asuperior right which he believesto be ownership, whether hisbelief be right or wrong

tenant possesses the thingleased as holder (but hepossesses the lease right asowner)

same with usufructuaryand borrower of the thing loanedin commodatum

•

In the Concept of Owner such possessor may be theowner himself or one who claimsto be so

concept is opinion, not of the possessor himself but of others

not possessors in thisconcept: lessee on the land, amere casual cultivator andadministrator, and one who isaware of the adjudication of landto another

only this class of possession can serve as title foracquiring dominion

Art. 540. Only the possessionacquired and enjoyed in the conceptof owner can serve as a title foracquiring dominion.

good faith or bad faith isimmaterial except for purposes of

prescription (GF: 10 yrs; BF: 30yrs)

effects of possession in theconcept of an owner:

(1) possession may be lapsed of time ripen into full ownership,subject to certain exceptions

(2) presumption of just title andcannot be obliged to show or

prove it

Art. 541. A possessor in the concept of owner has in

his favor the legal presumption that hepossesses

with a just title and he cannot be obligedto show or

prove it.

Exception: Art 1131

Art. 1131. For the purposes of prescription, just title must be proved; itis never presumed.

(3) possessor can bring allactions an owner can bring toprotect his possession, exceptaccion reivindicatoria

(4) may employ self-help (Art429)

(5) can ask for the inscription of his possession in the registry

of property(6) has right to the fruits and

reimbursement for expenses(assuming he is a possessor inGF)

(7) upon recovering possessionfrom unlawful deprivers, candemand fruits and damages

(8) generally, he can do on thethings possessed everythingan owner is authorized to dountil he is ousted by one whohas a better right (e.g., he canexercise right of pre-emption,he is entitled to indemnity incase of expropriation)

(9) possession in GF andpossession in BF (see below)



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(3) Possession in good faith andpossession in bad faith

Art. 526. He is deemed a possessor in

good faith who is not aware that thereexists in his title or mode of acquisitionany flaw which invalidates it.

He is deemed a possessor in badfaith who possesses in any casecontrary to the foregoing.

Mistake upon a doubtful or difficultquestion of law may be the basis of good faith.

Art. 528. Possession acquired in good

faith does notlose this character except in the caseand from the

moment facts exist which show that thepossessor is

not unaware that he possesses the thingimproperly

or wrongfully.

• possession in good faith ceasesfrom the moment defects in the titleare made known to the possessor

• when an action is filed to recoverpossession, good faith ceases fromthe date of the summons to appearat the trial

Case

Pleasantville Devt Corp v CA (supra)

FactsEdith Robillo purchased from

Pleasantville a land (Lot 9) in itssubdivision in Bacolod. The rights overthe lot were then bought by Jardinico.Lot 9 was vacant at that time. Uponcompletion of payments and securing a

TCT in his name, Jardinico discoveredthat improvements had been introduced

on Lot 9 by Wilson Kee, who had takenpossession thereof.

It appears that Kee bought oninstallment Lot 8 from CTTEI, the realestate agent of Pleasantville. Kee

possessed the lot even before thecompletion of payments. When Kee andhis wife inspected Lot 8, the lot pointedto them was Lot 9 instead of Lot 8.

Jardinico confronted Kee afterdiscovering that he was occupying Lot 9.Kee refused to vacate hence Jardinicofiled an ejectment suit. CA ruled thatKee was a builder in GF, as he wasunaware of the “mix-up” when he beganthe construction of the improvements.

The erroneous delivery was due to thefault of the CTTEI and thus imputable to

Pleasantville, the principal.

Held The SC agrees with the CA that Kee

is a builder in GF. The roots of thecontroversy can be traced in the errorscommitted by CTTEI when it pointed thewrong lot to Kee.

Good faith consists in the belief of the builder that the land he is buildingon is his and he is ignorant of any defector flaw in his title. And as good faith is

presumed, Pleasantville has the burdenof proving bad faith on the part of Kee.At the time he built the improvementson Lot 8, Kee belived that the said lotwas the one he bought. He was notaware that the lot delivered to him wasnot Lot 8. Pleasantville failed to proveotherwise.

(a) mistake upon a doubtful or

difficult question of law as a basisof good faith [Art 526 (3)]

Art. 526. x x x



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Mistake upon a doubtful or difficultquestion of law may be the basis of good faith.

• possessor in GF: unaware thatthere exists a flaw which invalidateshis acquisition of the thing

• GF consists in the possessor’sbelief that the person from whom hereceive a thing was the owner of thesame and could convey his title

• GF is always presumed, and hewho alleges BF on the part of thepossessor has the burden of provinghis allegation

• belief of the possessor that he is

the legal owner must be based onsome title or mode of acquisition,i.e., sale, donation, inheritance

• error in the application of the law,in the legal solutions that arise formsuch application, in the appreciationof the legal consequences of certainacts, and in the interpretation of doubtful provisions or doctrines, mayproperly serve as the basis of GF

• possessor in BF: knows that histitle is defective

Case

Kasilag v Rodriguez

FactsEmiliana Ambrosio was issued a

homestead patent on Jan 11, 1931. A TCT was subsequently issued to him. Itis prohibited to sell or encumber a landobtained through a homestead patent 5years from its issuance. On May 16,1932, she and Marcial Kasilag entered

into a contract of loan of P1,000 whereinshe mortgaged the improvements of theland as security for the loan (1st

agreement). The agreement stipulatedthat she will pay the taxes on the land,pay the interest of the loan, and that the

loan should be paid in 4 ½ years. Failureto pay will mean that she will execute adeed of absolute sale of the property(the improvements) to Kasilag. A yearlater, she failed to pay the interest of

the loan and the taxes. Thus, a verbalagreement (2nd agreement) wasentered into whereby she conveyed toKasilag the possession of the land onthe condition that he will not collectinterest, would pay the taxes, and wouldbenefit from the fruits of the land. Byvirtue of this 2nd agreement, Kasilagentered upon the possession of the land.Both of them were unaware that thelegal term for the contract they enteredinto was antichresis. Emiliana died andhis heirs sought to recover from Kasilag

the possession of the property. CFI:ruled from the heirs of Emiliana. CA:affirmed but modified the said decisionholding that the heirs are owners of theland because the 1st agreement was nulland void; and that Kasilag is not entitledto the value of the improvements hemade on the land.

HeldKasilag cannot be said to have acted

in bad faith by taking possession of the

land as a consequence of the absolutesale he made with Emiliana, the latterbeing prohibited from encumbering oralienating the land for 5 years becauseof a homestead patent (Sec 116 of ActNo. 2874). A person is deemed apossessor in BF when he knows thatthere is a flaw in his title or in themanner of acquisition by which it isinvalidated. It cannot be deduced fromthe fact that Kasilag was aware of a flawin his title or in the manner of itsacquisition, aside from the prohibition in

Sec 116. Therefore, the question iswhether GF may be premised uponignorance of the law. Gross andinexcusable ignorance of the law maynot be the basis of good faith, but



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possible, excusable ignorance may besuch basis. Kasilag is not conversantwith the laws because he is not alawyer. In taking possession of theproperty and in consenting to receive its

fruits, he did not know that thepossession and enjoyment of the fruitsare the attributes of the contract of anan antichresis and is prohibited by Sec116. It can be concluded therefore thatKasilag’s ignorance of Sec 116 isexcusable and may be a basis of goodfaith. He is entitled therefore to beindemnified for the improvements OR hecan own the land by paying its value, atthe election of the heirs (BPS rule,remember).

LabnotesNotice how the lawyer drew a contracttrying to go around the Homestead law.Not many lawyers know the clearconcept of antichresis1.

E. What things or rights maybe possessed

Art. 530. Only things and rights whichare

susceptible of being appropriated maybe the object

of possession.

• Cannot be appropriated andtherefore cannot be possessed:(1) property of public dominion(2) res communes(3) easements (discontinuous ornon-apparent)(4) things specifically prohibited bylaw

1 Art. 2132, NCC. By the contract of antichresis the creditor

acquires the right to receive the fruits of an immovable of hisdebtor, with the obligation to apply them to the payment of the

interest, if owing, and thereafter to the principal of his credit.

• res nullius (abandoned orownerless property)– may bepossessed but cannot be acquired byprescription

Art. 1113. All things which are within thecommerce of men are susceptible of prescription, unless otherwise provided.Property of the State or any of itssubdivisions not patrimonial in charactershall not be the object of prescription.

• but there are more things whichcan be possessed than those whichcan be the object of prescription

• not all things susceptible of appropriation can be the object of

prescription• prescription indicates the birth of a right in one person and theextinguishment of a right in another

• cannot happen in commonthings, i.e., sunlight, air, roads,shores, and res nullius

F. What may not be possessedby private persons

(1) res communes(2) property of public dominion(3) right under discontinuous and/ or

non-apparent easement – onlycontinuous and apparent easementcan be possessed

G. Acquisition of Possession

(1) Ways of acquiring possession

Art. 531. Possession is acquired by the

material occupation of a thing or theexercise of a right, or by the fact that itis subject to the action of our will, or bythe proper acts and legal formalitiesestablished for acquiring such right.



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(a) Material occupation of the thing

• occupation is used in thegeneral sense, i.e., a means of acquiring possession of things,

not of rights• kind of possessionacquired is only the fact of possession, not the legal right of possession

(i) Doctrine of constructivepossession

• no actual possession butsubject to control

• possession of a portion of a parcel of land under the

claim of ownership or title isconstructive possession of theentire parcel of land, unless aportion thereof is adverselypossessed by another (Ramosv Dir of Lands)

(ii) Includes constructive delivery(equal to material occupationin cases where occupation isessential to the acquisition of prescription)

(a) traditio brevi manu

Art. 1499. The delivery of movableproperty may likewise be made by themere consent or agreement of thecontracting parties, if the thing soldcannot be transferred to the possessionof the vendee at the time of the sale, orif the latter already had it in hispossession for any other reason.

• one whopossesses a thing by titleother than ownershipcontinues to possess thesame but under a newtitle, that of ownership

(b) traditio constitutum possessorium

• owner alienates thething, but continues topossess the same but as

that of depositary, pledge,or tenant

(b) subjection to the action of our will

• different from andindependent of juridical actsand legal formalities as itrefers more to the right of possession that to possessionas a fact

(1) traditio simbolica -- effected

by delivering some object or

symbol, placing under thething under the control of thetransferee, such as the keysto the warehouse containingthe goods delivered [Art 1498(2)]

Art. 1498. x x xWith regard to movable property, its

delivery may also be made by thedelivery of the keys of the place ordepository where it is stored or kept.

(2) traditio longa manu –

effected by the transferorpointing out to the transfereethe things which are beingtransacted

Art. 1499. The delivery of movableproperty may likewise be made by themere consent or agreement of thecontracting parties, if the thing soldcannot be transferred to the possessionof the vendee at the time of the sale, orif the latter already had it in hispossession for any other reason.

(c) proper acts and legal formalities



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• refers to the acquisition of possession by sufficient title,whether inter vivos or mortiscausa, or lucrative or onerous

• e.g., donations,

succession, contracts, judicialwrits of possession, writs of execution of judgments, andregistration of publicinstruments

Case

Banco Espanol Filipino v. Peterson

Facts To secure payment of loan, Reyes

mortgaged to the bank several pieces of property and pledged part of hisproperty. The latter goods weredelivered to the depositary. Garciaobtained favorable judgment againstReyes’ property. Garcia requested thesheriff to seize the goods from thewarehouse.

Held The sheriff could not have legally

levied upon the property. There was aperfect contract of pledge and thedepositary was placed in the possession

of the goods after the symbolic transferby means of delivery to him of the keysto the warehouse where the goods werekept. The bank’s claim that theproperty has preference because Garciais a third person whose claim againstReyes was not secured by a pledge.

(2) By whom possession may beacquired

Art. 532. Possession may be acquired

by the same person who is to enjoy it,by his legal representative, by his agent,or by any person without any powerwhatever: but in the last case, thepossession shall not be considered as

acquired until the person in whose namethe act of possession was executed hasratified the same, without prejudice tothe juridical consequences of negotiorum gestio in a proper case.

(a) by same personElements of personal acquisition

• must have the capacity toacquire possession

• must have the intent topossess

• possibility to acquirepossession must be present

(b) by his legal representativeRequisites:

• representative or agent hasthe intention to acquire thething or exercise the right foranother, and not for himself

• person for whom the thing hasbeen acquired or rightexercised, has the intention of possessing such thing orexercising such right

(c) by his agent

• agency is the most usual form

of authority to acquirepossession for another

• principal acquires thepossession from the momentthe agent holds the thing forthe former

(d) by any person without any powerwhatsoever but subject toratification, without prejudice toproper case of negotiorum gestio

Art. 2144. Whoever voluntarily takes

charge of the agency or management of the business or property of another,without any power from the latter, isobliged to continue the same until thetermination of the affair and its



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incidents, or to require the personconcerned to substitute him, if theowner is in a position to do so. This

juridical relation does not arise in eitherof these instances:

(1) When the property or business isnotneglected or abandoned;

(2) If in fact the manager has beentacitly

authorized by the owner.In the first case, the provisions of

Articles 1317, 1403, No. 1, and 1404regarding unauthorized contracts shallgovern.

In the second case, the rules onagency in TitleX of this Book shall be applicable.

Art. 2149. The ratification of themanagement by the owner of thebusiness produces the effects of anexpress agency, even if the businessmay not have been successful.

Art. 2150. Although the officiousmanagement may not have beenexpressly ratified, the owner of theproperty or business who enjoys the

advantages of the same shall be liablefor obligations incurred in his interest,and shall reimburse the officiousmanager for the necessary and usefulexpenses and for the damages whichthe latter may have suffered in theperformance of his duties.

The same obligation shall beincumbent upon him when themanagement had for its purpose theprevention of an imminent and manifestloss, although no benefit may have been

derived.

• owner is liable for obligationsincurred in his interest, and shallreimburse the officious manager fornecessary and useful expenses and

damages which the latter may havesuffered

• ratification by the person forwhom the thing was acquired willretroact to the time of apprehension

by the gestor

(e) Qualifiedly, minors andincapacitated persons

Art. 535. Minors and incapacitatedpersons may acquire the possession of things; but they need the assistance of their legal representatives in order toexercise the rights which from thepossession arise in their favor.

• “incapacitated”— insane,lunatics, deaf-mutes who do notknow how to read and write,spendthrifts, and those undercivil interdiction

• refers only to possession of things, not of rights, and toacquisition of possession bymaterial occupation

(3) What do not affect possession(a) acts merely tolerated

Art. 537. Acts merely tolerated, andthose executed clandestinely andwithout the knowledge of the possessorof a thing, or by violence, do not affectpossession

Art. 1119. Acts of possessory characterexecuted in virtue of license or by meretolerance of the owner shall not beavailable for the purposes of possession.

• acts merely tolerated are thosewhich by reason of neighborlinessor familiarity, the owner of theproperty allows his neighbor or



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another person to do on theproperty

• there is a thin dividing linebetween tolerance andabandonment of rights; it is for

the courts to determine

(b) acts executed clandestinely ANDwithout knowledge of thepossessor

• acts must not only beclandestine but must also beunknown to the owner

(c) acts by violence as long as thepossessor objects thereto (i.e., hefiles a case)

Art. 536. In no case may possession beacquired through force or intimidationas long as there is a possessor whoobjects thereto. He who believes that hehas an action or a right to depriveanother of the holding of a thing, mustinvoke the aid of the competent court, if the holder should refuse to deliver thething.

• person seeking to get

possession should never take thelaw into his own hands, but mustinvoke the aid of competentcourts

• when a person is inpossession of land and hasmaintained that possession foryears, he cannot be forciblydispossessed thereof.

Cases

Cuaycong v Benedicto

FactsBenedictos own Hacienda Toren

where the Nanca-Victorias andDacumen-Toreno road run. Cuaycong

are owners of a group of haciendas whomake use of such roads for 20 yearswith knowledge of Benedictos fortransporting supplies. There is no outletto a public road. The Benedictos, one

day, just closed the road. Cuaycongasks that the road be opened.

Held The road is not public. It was not

owned by the government nor is it beingmaintained by the government. Had theroad been maintained at the publicexpense with acquiescence of Benedictos, this would indicate adversepossession by the government as wouldripen into title. But there is no suchevidence. If owner of a tract of land, to

accommodate the public, permits themto cross his property, it is not hisintention to divest himself of ownershipor to establish an easement. Suchpossession is not affected by acts of possessory character which are merelytolerated.

Astudillo v PHHC

FactsMitra bought a lot from PHHC in

1961. The said lot has been occupiedby Peregrina Astudillo uninterruptedlysince 1957. PHHC ignored her requestsfor the cancellation of the title in favorof Mitra and for the resale to her. TCdenied her petitions for certiorari andmandamus, because obviously, she is amala fide squatter.

HeldAs a squatter, she has no possessory

rights over the disputed lot. In the eyesof the law, the award to Mitra did not

prejudice her since she was bereft of any rights over the lot.

The State’s solicitude from thedestitutes and the have-nots does not



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mean that it should tolerate usurpationspf property, public or private.

Peran v CFI

Facts Jose Evasco owns an unregisteredland. He executed an extrajudicialpartition of it among his 5 heirs, one of which was his son, Alejandro. Heallowed and tolerated his nieceEncarnacion (daughter of his brother,Anacleto, who is also one of the heirs) toerect a house on a portion of his lot. In1972, Alejandro sold the lot to Torellawho in turn sold it to Sabater and thenthe latter sold it to Peran in 1979. WhenPeran asked Encarnacion to vacate, she

refused. Thus, a complaint of ForcibleEntry and Unlawful Detainer was filedagainst Encarnacion.

Held

The CFI erred when it reckoned thecounting of the 1 yr period within whichto file the action from Dec 31, 1972, andnot from the time of demand. A forcibleentry and unlawful detainer action mustbe brought within 1 yr. The 1 yr periodof limitation period commences from the

time of demand to vacate, and whenseveral demands are made, the same iscounted from the last letter of demand.

The demand to vacate having beenmade in Jan 1979 and the suit havingbeen instituted on Feb 8, 1979, theMunicipal Court acted within its

jurisdiction. The CFI also erred in assuming that

“prior possession in whatever characteris protected by law”. The priorpossession of Encarnacion and herhusband was only by mere tolerance

and therefore does not vest in them aright which they can assert againstPeran. Possession by tolerance islawful, but this becomes illegal when,upon demand to vacate by the owner,

the possessor refuses to comply withsuch demand. A possessor by meretolerance is necessarily bound by animplied promise to vacate upondemand.

(4) Rules to solve conflict of possession

Art. 538. Possession as a fact cannotbe recognized at the same time in twodifferent personalities except in thecases of co-possession. Should aquestion arise regarding the fact of possession, the present possessor shallbe preferred; if there asre twopossessors, the one longer inpossession; if the dates of the

possession are the same, the one whopresents a title; and if all theseconditions are equal, the thing shall beplaced in judicial deposit pendingdetermination of its possession orownership through proper proceedings.

General Rule: Possession cannot berecognized in two different personalitiesException: in cases of co-possessionby co-possessors without conflict claimsor interest.

• In case of conflict of possession,the following order of preferencemust be followed:

present possessor or actual possessor(2) if 2 or morepossessors, the one longer inpossession(3) if dates of possession are the same, the onewho presents a title(4) if all the

condition are equal, the thingshall be placed in judicial depositpending determination of possession or ownership throughproper proceedings



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• Preference in case of conflict of ownership(double sales)

Art. 1544. If the same thing shouldhave been sold to different vendees, theownership shall be transferred to theperson who may have first takenpossession thereof in good faith, if itshould be movable property.

Should it be immovable property, theownership shall belong to the personacquiring it who in good faith firstrecorded it in the Registry of Property.

Should there be no inscription, theownership shall pertain to the personwho in good faith was first in the

possession; and, in the absence thereof,to the person who presents the oldesttitle, provided there is good faith.

(1) for immovable property(a) first who registered his right inGF in the

Registry of Property(b) if no registration, first who

possessed in GF(c) if no possession, one who

presents the

oldest title(2) for movable property: first whopossessed in

GF

H. Effects of Possession

(1) In general, every

possessor has a right tobe respected in his possession; if disturbed therein, possessr has right

to be protected in or restored to saidpossession

Art. 539. Every possessor has a right tobe respected in his possession; and

should he be disturbed therein he shallbe protected in or restored to saidpossession by the means established bythe laws and the Rules of Court.

(a) action to recover possession(i) summary proceedings –

forcible entryand unlawful detainer.Plaintiff may ask for writ of preliminary mandatoryinjunction may be asked.Within 10 days from filing of complaint in forcible entry

• forcible entry

• unlawful detainer

the same writ is available inunlawful detainer actions uponappeal (Art 1674)

Art. 1674. In ejectment cases where anappeal is taken the remedy granted inArticle 539, second paragraph, shall alsoapply, if the higher court is satisfied thatthe lessee's appeal is frivolous ordilatory, or that the lessor's appeal isprima facie meritorious. The period of ten days referred to in said article shall

be counted from the time the appeal isperfected.

Case

Yu v Honrado

FactsMarcelo Steel Corp sold 42 metric

tons of scrap engine blocks to Refuerzo,an alleged swindler. The latter then soldthe engine blocks to the Yu spouses,

owners of Soledad Junk Shop. Thepurchase was in GF. The court thenissued a warrant for the seizure of thegoods in possession of Yu. The goodswere seized and placed interesting thepremises of Marcelo Steel for



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safekeeping. Information was filedagainst Yu and Refuerzo. Yu’sinformation was dismissed. The Yuspouses are petitioning for the return of the engine blocks.

HeldIn the absence of any final judgment

in the estafa case as to the civil liabilityof the accused to make restitution, the

Yu spouses can get the scraps back.Although the search warrant was validlyissued, it does not follow that MarceloSteel is entitled to recover the scrapfrom a third person who bought it in GF.

The acquirer and possessor in GF of achattel or movable property is entitledto be respected and protected in his

possession as if he were the true owner,until a competent court rules otherwise.Such possession in GF is equivalent totitle and every possessor has a right tobe respected in his possession (Arts 539and 559). The sale of the scraps to Yuwas covered by a sales invoice andmade in the ordinary course of business.

(ii) accion publiciana (based onsuperior right

of possession, not of ownership)

• action for recovery of realproperty upn mere allegationand proof of a better rightwithout the need of showingtitle

• issue: POSSESSION only

• no need to wait for theexpiration of 1 yr. beforebringing such action; if noaction for forcible entry and

unlawful detainer within 1 yr,this action may still bebrought

accion reivindicatoria (recovery of

ownership)

• action setting up not only theright of possession, but also of title and ownership

• action in case of refusal of aparty to deliver possession of

property due to an adverseclaim of ownership

(iv) action for replevin – forrecovery of

movable property

(b) Possessor can employ self-help

Art. 429. The owner or lawful possessorof a thing has the right to exclude anyperson from the enjoyment and disposalthereof. For this purpose, he may use

such force as may be reasonablynecessary to repel or prevent an actualor threatened unlawful physical invasionor usurpation of his property.

(2) Entitlement to fruits – possessor inGF/ BF

Art. 544. A possessor in good faith isentitled to the fruits received before thepossession is legally interrupted.

Natural and industrial fruits areconsidered received from the time theyare gathered or severed.

Civil fruits are deemed to accruedaily and belong to the possessor ingood faith in that proportion.

Art. 545. If at the time the good faithceases, there should be any natural orindustrial fruits, the possessor shall havea right to a part of the expenses of cultivation, and to a part of the net

harvest, both in proportion to the timeof the possession.

The charges shall be divided on thesame basis by the two possessors.



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The owner of the thing may, shouldhe so desire, give the possessor in goodfaith the right to finish the cultivationand gathering of the growing fruits, asan indemnity for his part of the

expenses of cultivation and the netproceeds; the possessor in good faithwho for any reason whatever shouldrefuse to accept this concession, shalllose the right to be indemnified in anyother manner.

• Possessor in GF is entitled tothe fruits received before thepossession is legally interrupted.

The law limits the right though only

to the fruits of the thing andtherefore he has no rights to theobjects which do not constitutefruits, e.g., tress in the orchard

• Possessor in BF has no right toreceive any fruits. Those alreadygathered and existing will have to bereturned; with respect to those lost,consumed, or which could have beenreceived, he must pay the value.But the possessor in BF does nothave to pay interest on the value of fruits he has to pay, because suchamount is unliquidated.

(3) Reimbursement for expenses

Art. 546. Necessary expenses shall berefunded to every possessor; but onlythe possessor in good faith may retainthe thing until he has been reimbursedtherefor.

Useful expenses shall be refundedonly to the possessor in good faith withthe same right of retention, the personwho has defeated him in the possessionhaving the option of refunding theamount of the expenses or of paying theincrease in value which the thing mayhave acquired by reason thereof.

Art. 547. If the useful improvementscan be removed without damage to theprincipal thing, the possessor in goodfaith may remove them, unless the

person who recovers the possessionexercises the option under paragraph 2of the preceding article.

Art. 548. Expenses for pure luxury ormere pleasure shall not be refunded tothe possessor in good faith; but he mayremove the ornaments with which hehas embellished the principal thing if itsuffers no injury thereby, and if hissuccessor in the possession does not

prefer to refund the amount expended.

Possessor in GF Possessor in BF

entitled toreimbursement for(1) necessary and(2) usefulexpenses, with theright to retain thething until he hasbeen reimbursed

entitled toreimbursement fornecessaryexpenses, but NOTfor usefulexpenses. Also hasNO right of retention over the

thingUseful expenses—reimbursement willbe based either on:(1) the amount of expenses; or(2) on theincrease in thevalue which thething may haveacquired by reasonof suchimprovement

Usefulimprovements—General Rule: canbe removed



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without damage tothe principal thing,possessor in GFmay remove themException: if the

owner wants tokeep theimprovements

Expense for pureluxury— will not berefunded but maybe removed if :(1) it can beremoved withoutinjury to thething or(2) if the ownerdoes not prefer torefund theamount

has same rightswith possessor inGF

(4) Possession of movable acquired inGF (in concept of an owner) isequivalent to title

Art. 559. The possession of movableproperty acquired in good faith isequivalent to a title. Nevertheless, onewho has lost any movable or has beenunlawfully deprived thereof may recoverit from the person in possession of thesame.

If the possessor of a movable lost orwhich the owner has been unlawfullydeprived, has acquired it in good faith ata public sale, the owner cannot obtainits return without reimbursing the pricepaid therefor.

• possessor has actual title which is

defeasible only by true owner• one who has lost a movable orhas been unlawfully deprived thereof may recover it withoutreimbursement, except if possessoracquired it at a public sale

• 3 requisites to make possessionof movable equivalent to a title:(1) that the possession is in GF(2) that the owner has voluntarily

parted with the possession of the

thing(3) that the possession is in theconcept of an owner

Labnotes

Compare Art. 559 with Arts. 1131 and1132

Art. 1131. For the purposes of prescription, just title must be proved; itis never presumed.

Art. 1132. The ownership of movablesprescribes through uninterruptedpossession for four years in good faith.

The ownership of personal propertyalso prescribes through uninterruptedpossession for eight years, without needof any other condition.

With regard to the right of the ownerto recover personal property lost or of which he has been illegally deprived, aswell as with respect to movablesacquired in a public sale, fair, or market,or from a merchant's store the

provisions of Articles 559 and 1505 of this Code shall be observed.

I. Effects of possession inthe concept of an owner(see part D)

J. Presumptions in favor of the possessor

Labnotes

Q: What is the usefulness of thesepresumptions?



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disputed land. There is no evidence thatthey were possessors in BF. However,their GF ceased when they were servedwith summons to answer the complaint.As possessors in BF from the service of

the summons, they shall reimburse thefruits received.

(3) Of enjoyment of possession in thesame character in which was acquireduntil the contrary is proved.

Art. 529. It is presumed that possessioncontinues to be enjoyed in the samecharacter in which it was acquired, untilthe contrary is proved.

Labnotese.g., if at the start A is a lessee, he willremain as such until he proves that hehas repudiated that. But his possessionis in the character of a possessor in BF(because he is aware that he justrepudiated it).

(4) Of non-interruption of possession infavor of present possessor whoproves possession at a previous timeuntil the contrary is proved.

Art. 554. A present possessor whoshows his possession at some previoustime, is presumed to have heldpossession also during the intermediateperiod, in the absence of proof to thecontrary.

Art. 1121. Possession is naturallyinterrupted when through any cause itshould cease for more than one year.

The old possession is not revived if anew possession should be exercised bythe same adverse claimant.

Art. 11222. If the natural interruption isfor only one year or less, the timeelapsed shall be counted in favor of theprescription.

Art. 1123. Civil interruption is producedby judicial summons to the possessor.

Art. 1124. Judicial summons shall bedeemed not to have been issued andshall not give rise to interruption:

(1) If it should be void for lack of legal

solemnities;(2) If the plaintiff should desist from

thecomplaint or should allow the

proceedings tolapse;

(3) If the possessor should beabsolved from the

complaint.In all these cases, the period of the

interruption shall be counted for theprescription.

• in case of natural interruption,the old possession loses all its

juridical effects and therefore cannotbe tacked to the new possession forpurposes of prescription

• in case of civil interruption, if possession is recovered, it can beconnected to the time that haselapsed as if it were continuous andcan be counted in favor of prescription

Labnotes

• 2 Kinds of Interruption(1) Natural (Art 1122)—if interruption

is for more than 1 year . BUT it is

2 I don’t think this really refers to “natural” interruption since it

will be contradictory to Art 1121’s definition of a natural

interruption (i.e., it must be for more than 1 yr). Maybe the

interruption referred to here is an interruption other than civilinterruption which has a period of 1 yr or less. In which case, it

will be counted for purposes of prescription.



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PROPERTY REVIEWER

Art. 541. A possessor in the concept of owner has in his favor the legalpresumption that he possesses with a

just title and he cannot be obliged to

show or prove it.

BUT:

Art. 1141. Real actions over immovablesprescribe after thirty years.

This provision is without prejudice towhat is established for the acquisition of ownership and other real rights byprescription.

• possession is presumed

ownership, unless the contrary isproved (because the presumptionis prima facie)

• just title—that which is legallysufficient to transfer theownership or the real right towhich it relates

• just title does not always consistin documents. It may be provedby testimonies of witnesses

K. Possession may be lost

by:

Art. 555. A possessor may lose hispossession:

(1) By the abandonment of the thing;(2) By an assignment made to

another either byonerous or gratuitous title;

(3) By the destruction or total loss of the thing, or

because it goes out of commerce;(4) By the possession of another,

subject to theprovisions of Article 537, if the

newpossession has lasted longer than

one year.

But the real right of possession isnot lost till

after the lapse of ten years.

Art. 537. Acts merely tolerated, andthose executed clandestinely andwithout the knowledge of the possessorof a thing, or by violence, do not affectpossession.

(1) Abandonment—not limited to thatby the owner (in which case, thething to becomes res nullius);includes the giving up of possession,and not necessarily of ownership, byevery possessor

• opposite of “occupation”• voluntary renunciation of all

rights which a person may havein the thing, with the intent tolose such thing

• to be effective:(1) necessary that it be made by

a possessor in the concept of owner; and

(2) must clearly appear that thespes recuprandi is gone andthe animus revertendi be

finally given up• by virtue of abandonment, the

thing is left without owner orpossessor

(2) Assignment—complete transmissionof ownership rights to anotherperson, gratuitously or onerously

(3) Destruction—must be total,otherwise, partial loss will result inloss of possession in the lost part

only

(4) Possession of another—thepossession that is lost here refersonly to possession as a fact (de



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facto), not the legal right of possession (de jure)

• after 1 year, the actions forcibleentry and unlawful detainer canno longer be brought. But the

accion publiciana may still beinstituted to recover possessionde jure

• the possession that is lost, i.e.,possession de facto, is also thepossession that the newpossessor acquires

• real right of possession is lostonly after 10 years

IMPT! all the other 3 cases of loss of possession (abandonment, assignment,

destruction) refer to loss of possessionde jure (real right of possession) andtherefore cannot be recovered anymoreby any action.

Art. 557. The possession of immovablesand of real rights is not deemed lost, ortransferred for purposes of prescriptionto the prejudice of third persons, exceptin accordance with the provisions of theMortgage Law and the Land Registrationlaws.

• third parties relying on theRegistry of Property areprivileged to consider theregistered possessors or ownersas still such in spite of loss

Rules for Loss of Movables

Art. 556. The possession of movables isnot deemed lost so long as they remainunder the control of the possessor, eventhough for the time being he may notknow their whereabouts.

• Control—means juridical controlor right,or that the thing remainsin one’s partrimony

• But if the thing is most in such amanner that the owner does not

know where it is, possession hasceased, even if it has not beenfound or taken by another.

Art. 559. The possession of movableproperty acquired in good faith isequivalent to a title. Nevertheless, onewho has lost any movable or has beenunlawfully deprived thereof may recoverit from the person in possession of thesame.

If the possessor of a movable lost or

which the owner has been unlawfullydeprived, has acquired it in good faith ata public sale, the owner cannot obtainits return without reimbursing the pricepaid therefor.

• General Rule: possession of personal property acquired in GF= title therefore the true ownercannot recover itException: if the true owner

(1)lost the movable or

(2) has been unlawfully deprived,In either of these, he may recoverthe personal property not onlyfrom the finder but also fromthose who may have acquired itin GF form such finder or thief,without paying for any indemnityexcept if possessor acquired it inpublic sale (here, the possessor inGF is entitled to reimbursement).

• Public sale—is one where therehas been a public notice of thesale, in which anybody has a rightto bid and offer to buy

• Requisites for Title:(1) that the possession is in GF



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(2) that the owner has voluntarilyparted with the possession of thething

(3) that the possessor is in theconcept of an owner

• Unlawful deprivation—limited tounlawful taking such as theft,robbery.

• should not includedisposition through abuse of confidence

• the right of the owner torecover personal propertyacquired in GF by another isbased on his beingdispossessed without hisconsent

Art. 560. Wild animals are possessedonly while they are under one's control;domesticated or tamed animals areconsidered domestic or tame if theyretain the habit of returning to thepremises of the possessor.

• Kinds of animals(a) wild animals—live naturally

independent of man; when they

recover their freedom (i.e., theyescape and no longer in our sight,or we cannot follow them even if in our sight) , they cease to beunder possession

(b) domesticated or tamed—thosewhich, being wild by nature, havebecome accustomed to recognizethe authority of man; placed inthe same category as domestic orwild, depending on WoN theymaintain the recognition of theauthority of man

(c) domestic or tame—those whichare born and reared under thecontrol and care of man; they areunder the control of man and do

not become res nullius unlessabandoned.

(5) Reivindication (accdg to Tolentino’sannotation)—the most natural mode

of losing possession, i.e., recovery orreivindication of the thing by thelawful owner

Not in the outline

L. Effects of Possession inGood Faith or Bad Faith

Art. 544. A possessor in good faith isentitled to the fruits received before the

possession is legally interrupted.Natural and industrial fruits areconsidered received from the time theyare gathered or severed.

Civil fruits are deemed to accruedaily and belong to the possessor ingood faith in that proportion.

Art. 545. If at the time the good faithceases, there should be any natural orindustrial fruits, the possessor shall havea right to a part of the expenses of

cultivation, and to a part of the netharvest, both in proportion to the timeof the possession.

The charges shall be divided on thesame basis by the two possessors.

The owner of the thing may, shouldhe so desire, give the possessor in goodfaith the right to finish the cultivationand gathering of the growing fruits, asan indemnity for his part of theexpenses of cultivation and the netproceeds; the possessor in good faith

who for any reason whatever shouldrefuse to accept this concession, shalllose the right to be indemnified in anyother manner.



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PROPERTY REVIEWER

Art. 546. Necessary expenses shall berefunded to every possessor; but onlythe possessor in good faith may retainthe thing until he has been reimbursedtherefor.

Useful expenses shall be refundedonly to the possessor in good faith withthe same right of retention, the personwho has defeated him in the possessionhaving the option of refunding theamount of the expenses or of paying theincrease in value which the thing mayhave acquired by reason thereof.

Art. 547. If the useful improvementscan be removed without damage to the

principal thing, the possessor in goodfaith may remove them, unless theperson who recovers the possessionexercises the option under paragraph 2of the preceding article.

Art. 548. Expenses for pure luxury ormere pleasure shall not be refunded tothe possessor in good faith; but he mayremove the ornaments with which hehas embellished the principal thing if itsuffers no injury thereby, and if his

successor in the possession does notprefer to refund the amount expended.

Art. 549. The possessor in bad faithshall reimburse the fruits received andthose which the legitimate possessorcould have received, and shall have aright only to the expenses mentioned inparagraph 1 of Article 546 and in Article443. The expenses incurred inimprovements for pure luxury or mere

pleasure shall not be refunded to thepossessor in bad faith, but he mayremove the objects for which suchexpenses have been incurred, providedthat the thing suffers no injury thereby,

and that the lawful possessor does notprefer to retain them by paying thevalue they may have at the time heenters into possession.

Art. 550. The costs of litigation over theproperty shall be borne by everypossessor.

Art. 443. He who receives the fruits hasthe obligation to pay the expensesmade by a third person in theirproduction, gathering, and preservation.

Good Faith Bad FaithFruitsreceived

Entitled to thefruits whilepossession is inGF and beforelegalinterruption (Art544)

Mustreimbursefruits receivedor fruits whichlegitimatepossessorcould havereceived(549);

Entitled toexpenses forproduction,gathering, andpreservation

PendingFruits

Entitled to a partof the expensesof cultivationand a part of thenetwork harvest,both proportionto the time of possession (545)

Owner mayindemnify orallow possessorin GF to finish

cultivation andthe fruits will beindemnified forhis cultivation(545)



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PROPERTY REVIEWER

If possessorrefusesconcession, noindemnity (545)

Charges Must share withthe legitimate

possessor, inproportion to thetime of possession

Same as withGF

NecessaryExpenses

Right of reimbursementand retention inthe meantime(545)

Reimbursement only

UsefulExpenses

Owner’s optionto reimbursehim either forexpenses or forincrease in value

(546)

Retention priortoreimbursement(546)

Limited right of removal (butshould notdamageprincipal andowner does notexercise optionof payment of

expenses orincrease invalue) (547)

No right toreimbursement. He alsocannotremove

improvementseven he cando so withoutinjury to theprincipal thing

OrnamentalExpenses

Limited right of removal asabove (548)

Limited rightof removal (noinjury to thingand lawfulpossessordoes notretain bypaying forthem) (548)

Deterioration or

Loss

No liabilityunless due to

fraud ornegligence afterbecoming in BF

Liable WoNdue to his

fault,negligence,fortuitousevent

Costs of Litigation

Bears cost Bears cost

M. Effects of Recovery of Possession

Art. 551. Improvements caused bynature or time

shall always insure to the benefit of theperson who

has succeeded in recovering possession.

• improvements—include all thenatural accessions referred to in Arts457 to 465, and all those which donot depend upon the will of thepossessor (e.g., increase in the valuecaused by widening of streets,

construction of road, etc)

Art. 553. One who recovers possessionshall not be

obliged to pay for improvements whichhave ceased

to exist at the time he takes possessionof the thing.

• the improvements having ceasedto exist, the lawful possessor cannotbenefit from them.

• BUT remember: necessaryexpenses are not considered asimprovements therefore the lawfulpossessor or owner has to pay forthem even if the object for whichthey were incurred no longer exist



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