property reviewer complete

8/13/2019 Property Reviewer Complete

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+Ad Majorem Dei Gloriam

PROPERTY NOTES

PRELIMINARY PROVISIONSArt 414 All things which are or may e the o!ect o" a##ro#riation areconsi$ere$ either%

1& Immo'ale or real #ro#erty( or

)& Mo'ale or #ersonal #ro#erty&

Whats a thing?

any object that exists and is capable of satisfying some human needs

includes both objects that are already possessed or owned and those

that are susceptible of appropriation

more comprehensie term !than property"# as there are things which are

not susceptible of appropriation and they are not included in the conceptof property

Whats property?

refers to any thing which is already the object of appropriation or found

in the possession of man

$e%uisites of property&' (tility

)apacity to satisfy some human wants

*' ubstantiity

,uality of haing existence apart from any other thing

-' Appropriability

usceptibility of being possessed by man

Res communes or common things are not capable of appropriation in

their entirety# although they may be appropriated under certainconditions in a limited way# and thereby become property in law

o .lectricity# oxygen# etc

Res nullius or a thing may hae no owner because it has not yet been

appropriated# or because it has been lost or abandoned by the owner' itconstitutes property as long as it is susceptible of being possessed forthe use of man

o Wild animals# hidden treasure

/hings cannot be considered as property when they are not susceptible

of appropriation because ofo legal impossibility !you cant sell your body while youre alive,

at least not legally)oro physical impossibility !you cant own the moon, at least not yet)

$ights as property

0property1 is sometimes used to denote the thing with respect to which

legal relations between persons exist 2 the res oer which rights

!particularly ownership" may be exercised 2 and sometimes to the rightswith respect to the thing

either real or property

What is a real right?

$ight or interest belong to a person oer a specific thing

Without a definite passie subject against whom such right may be

personally enforced

Jus in re

/he resof a real right may be

o 3ersonal property !as in pledge and chattel mortgage"

o $eal property !easement# real mortgage"

o .ither personal or real !as in ownership# possession# usufruct"

4f the res of a real right is real property# the right itself is real property5

otherwise it is personal property

)lassification of real rights based upon dominion&' Domino pleno2 powers to enjoy and to dispose are united

a' Dominion# ciil possession# hereditary right*' Domino menos pleno2 powers to enjoy and dispose are separated

a' urface right# usufruct-' Domino limitado2 powers to enjoy and to dispose# though united# are

limiteda' 6y a guaranty !mortgage# pledge"b' 6y a charge !easement"c' 6y a priilege !pre7emption# redemption"

What is a personal right?

$ight or power of a person

/o demand from another as a definite subject

/he fulfillment of the latters obligation'

Jus in personam or jus ad rem

3ersonal right# or right of obligation# has the following elements8

&' Actie subject !person in whom the right resides"*' 3assie subject !person against whom the right is aailable"

Mic9ey 4nglesAteneo :aw *;&*# updated8 May &

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PROPERTY NOTES

-' bject or prestation or the conduct !to gie# to do# or not to do"@' uridical or legal tie which binds the parties to the obligation

$eal $ight

Definite actie subjectwho has a right against allpersons generally as anindefinite passie subject

bject is generally a

corporeal thing

)reated by Bmode and

Btitle

.xtinguished by the loss

or destruction of the thingwhich it is exercised

Directed against the

whole world !actio in rem

against -rdpersons"

3ersonal $ight

Definite actie subject and adefinite passie subject

bject always an incorporeal

thing

)reated by Btitle

3ersonal right suries the

subject matter

Directed against a particular

person !actio in personam"

Whats the importance of the classification into moables or immoables?

4n priate international law# general rule is that immoables are

goerned by the law of the country in which they are located# whereasmoables are goerned by the personal law of the owner which in casesis the law of his nationality or his domicile

4n criminal law# usurpation of property can ta9e place only with real

property' n the other hand# robbery and theft can be committed onlyagainst personal property

4n procedural law# actions concerning real property are brought in the

$/) where the property is located# whereas actions inoling personalproperty are brought in the court where either the defendant or plaintiffresides'

o Corcible entry and unlawful detainer for $.A: property

o $eplein or manual deliery for 3.$=A:

4n contracts# only real property can be the subject matter of real

mortgage and antichresis# while only personal property can be thesubject matter of mutuum# oluntary deposit# pledge

4n order that the donation of an immoable may be alid# it must be

made in a public instrument' Cor moables# may be oral or in writing !ifmore than 3


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PROPERTY NOTES

united to the immoable property"

:ands# buildings# roads and constructions of all 9inds

Must adhere to the soil

6uildings must be more or less of a permanent structure independent ofand regardless of the ownership of the land on which it is erected sincethe law ma9es no distinction !so possible to mortgage building een if inthe land of another# since its separate from the land

$oads# whether public or priate# are immoable

$eal property treated by the parties as personal property

o A building is by itself an immoable property irrespectie of

whether or not said structure and the land on which it is adhere tobelong to the same owner

o A alid real estate mortgate can be constituted only on the

building erected on the land belonging to anothero /he parties to a contract of chattel mortgage may# by agreement#

treat as personal property that which by nature would be real

property !estopped> o they can be subject to a writ of repleinbetween parties"

Eoweer# the chattel mortgage is not binding on thirdpersons'

/rees# plants and growing fruits

4mmoable while they are8

o Attached to the land# or

o Corm an integral part of an immoable

nce cut or uprooted# they become moable

Growing crops or fruits# or ungathered products or fruits# may be treated

as personal property for the purposes of attachment# execution and thechattel mortgage law !ibal Falde"

When growing crops are sold and before they are een harested# the

transaction is considered as sale of moables because it is a gien thatthey are to be gathered or harested for deliery

.erything attached to an immoable in a fixed manner

Attachment must be such that

o 4t cannot be separated from the immoable

o Without brea9ing the material# or

o Deterioration of the object

4f temporarily separated# will still be regarded as immoable if there is

an intent to put them bac9 !but there are different opinions to this"

4ntent to attach permanently is essential 2 objects placed by humans

with intention to permanent annexation lose their identity as moables

tatues# reliefs# paintings# or other objects for use or ornamentation

4mmoable when8

o 3laced on the immoable by the owner of the latter# and

o 4n such a manner that it reeals the intention to attach them

permanently to the tenements

=ot necessarily by him personally# can be by his agent

4f placed by a person not the owner li9e a lessee# the object will not

attain the character of immoable unless such person acts as an agentof the owner

Machinery# receptacles# instruments# or implements for an industry or wor9s

4mmoable only when8

o 3laced by the owner of the tenement or his agento 4ndustry or wor9s must be carried on in a building or on a piece

of lando Machinery# etc must tend directly to meet the needs of the said

industry or wor9s

Machinery which is moable in its nature only becomes immobilied

when placed in plant by the owner of the property or plant# but not whenso placed by a tenant# a usufructuary# or any person haing only atemporary right !Davao Saw Mill v Castillo)

o .xception !becomes immoable"8

&' uch person acted as the agent of the owner# or*' :ease agreement states that the machines will pass oer tothe lessor after the expiration of the lease agreement !S!alde" case"

Must be essential and be principal elements of an industry or wor9s to

the business# not merely incidental to business !Mindanao #usCompany v City $ssessor"

o )ash registers# typewriters for hotels# restaurants# theaters are

merely incidental# these businesses can continue on withoutthem

o Machineries of breweries used in the manufacture of li%uor#

though moable by nature# are immobilied because they areessential to said industries


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PROPERTY NOTES

Cor purposes of taxation# it doesnt matter who placed the machines 2

the owner or mere lessee# as long as it is essential and principalelements of an industry' /he term Breal property may include thingswhich should generally as personal property' 4t is a familiar

phenomenon to see things classified as real property for purposes oftaxation which on general principle might be considered personalproperty' !Meralco v Central #oard o% $ssessment $ppeals & in thiscase, the storage tan's were placed by Meralco, who wasnt the ownero% the land, but it was still considered immovable)

Attachment or incorporation to immoable not essential# since they

become immoable because of destination# what is essential is theirutility

Animal houses# pigeon houses# beehies# fish ponds or breeding places ofsimilar nature

)onsidered immoable8

o 4n case their owner has placed them or preseres them

o With the intention to hae them permanently attached to theland

o And forming a permanent part of it'

o /he animals in these places are included'

Must permanently form part of the land and so intended by the owner

Certiliers actually used on a piece of land

4mmoable when

o Actually used on a piece of land

Certiliers 9ept in a barn are not immoable

Mines# %uarries and slag dumps

4mmoable when

o While the matter thereof forms part of the bedo Meaning# the matter thereof remains unseered from the soil

Waters# either running or stagnant# are classified as immoables

Doc9s and structures# though floating

4mmoable if

o 4ntended by their nature and object

o /o remain at a fixed place on

o A rier# la9e or coasts

)ontracts for public wor9s and seritudes and other real rights oerimmoables

Where the resof a real right is real property# the right itself is real

property' o ownership is real property if the thing owned is immoableo :oan is real property by analogy if secured by a real estate

mortgage

Where it is personal property# the right itself is personal property

o .xception8 case of contracts for public wor9s which are

considered real property

:;APTER T


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PROPERTY NOTES

cases in Art @& 6ut only proisionally' /he primal rule is that the principal issue must be that of

possession# and that ownership is merely ancillary# in which casethe issue of ownership may be resoled but only for the purpose ofdetermining the issue of possession'

4t must sufficiently appear from the allegations in the complaint that

what the plaintiff really and primarily see9s is the restoration ofpossession'

4nferior court cannot adjudicate on the nature of ownership where

the relationship of lessor and lessee has been sufficientlyestablished in the ejectment case# unless it is sufficientlyestablished that there has been a subse%uent change in ortermination of the relationship between the parties'

/he rule in forcible entry cases# but not in those for unlawfuldetainer# is that a party who can proe prior possession canrecoer such possession een against the owner himself' Ee hasthe security that entitles him to remain on the property until he islawfully ejected by a person haing a better right through an accionpubliciana or accion reinvindicatoria

Where the %uestion of how has prior possession hinges on the

%uestion of who the real owner of the disputed portion is# theinferior court may resole the issue of ownership and ma9e adeclaration as to the owner' 6ut# it is merely proisional# and does

not bar nor prejudice an action between the same parties inolingthe title to the land' !Asis Asis Fda de Guearra# *;;"

3lenary action to recoer possession !accion publiciana)

$e%uisites8i' Must be within a period of ten years otherwise the realright of possession is lost

ii' ne who claims to hae a better right must proe not onlyhis right but also the identity of the property claimed

iii' Ciled in the $/) where the property is located

4ssue inoled is possession de jure of realty independently of title !as

compared to interdictal, possession de %acto"

udgment rendered here is conclusie only on the %uestion of

possession# not that of ownership

urisdictional facts?

&' $ight of plaintiff oer property*' 3eriod to bring interdictalhas expired

3. Dont 9now na'

Action to recoer possession based on ownership !accion reivindicatoria)$e%uisites8

i' $ight of plaintiff oer propertyii' Ciled at the $/) where the property is located

ee9s recoery of possession based on ownership# with claim of title

4ssue inoled is ownership which ordinarily includes possession#

although a person may be declared owner but he may not be entitled topossession because the possessor has some rights which must berespected

Action for reconeyance 2 prescribes in &; years from the point of the

registration of the deed or the date of issuance of the certificate of title!chec9 boo9>"5 @ years in cases of fraud counted therefrom on date ofissuance of the certificate of title oer the property

o Action for reconeyance based on fraud and where plaintiff is

in possession of the property subject of the acts does notprescribe' !:eyson 6ontuyan"

o =68 hould not hae passed to a third person'

All three actions are actions in personam'


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PROPERTY NOTES

4njunction as a remedy for recoery of possession

4njunction is a judicial process whereby a person is re%uired to do or

refrain from doing a particular thing'

>eneral r,le8 )ourt should not by means of a preliminary injunction

transfer property in litigation from the possession of one party toanother'

4n order that a preliminary injunction may be granted at any time after

the commencement of the action and before judgment8$e%uisites8

i' there must exist a clear and positie right oer theproperty in %uestion which should be judicially protectedthrough the writ5 and

ii' the acts against which the injunction is to be directed areiolatie of such right

What if there is someone actually possessing the property sought to

recoer?o 3erson not ordinarily allowed to aail of remedy of preliminary

preentie or mandatory injunction but must bring thenecessary action for the recoery of possession'

4njunctie relief will not be granted to ta9e property out of the

possession or control of one party and place it in that of another whosetitleJ

o Eas not been clearly established# or

o Who did not hae such possession or control at the inception

of the case

3roper function is to maintain the status %uo

4njunction cannot be a substitute for other suits for recoery of

possession# hence# its denial will not bar the institution of the moreappropriate remedy

Why? Well# a writ of injunction is an e%uitable relief5 determination of

title is a legal remedy 2 thats why

When can injunction be allowed?

4n actions for forcible entry# the dispossessed plaintiff may file# within ten

days from filing of the complaint# a motion for a writ of preliminarymandatory injunction to restore him in possession'

o /he court MA grant 4n order to preent the defendant from

committing further acts of dispossession during the pendencyof the case

o 4ssue of ownership may not be put in issue

.jectment cases where the appeal is ta9en# the lessor is gien the same

remedy granted aboe'

Where the actual possessor of the property who is admittedly the

owner# see9s protection from repeated or further intrusions into his

property'o .en if it turns out that he isnt the owner# he may still aail of

the e%uitable remedy of injunction to protect his possession'

When there is a clear finding of right of ownership and possession of a

land in faor of the party who claims the subject property in possessionof another is the undisputed owner as where the property is coered bya /orrens title pointing to the party as the owner' !f course# chec9 theissuance of the title if it was in bad faith"

When urgency# expediency and necessity re%uire immediate

possession as where material and irreparable injury will be done whichcannot be compensated by damages'

Writ of possession as a remedy

Writ of possession is an order whereby a sheriff is commanded to placea person in possession of a real or personal property# such as when aproperty is extrajudicially foreclosed'

4mproper to eject another from possession# unless sought in connection

with a8&' :and registration proceeding*' Coreclosure of mortgage+ proided# that no third person has

interened !3=6 )A 2 in this case# a third person wasoccupying the lot subject to the writ' /he ) held that the anex7parte petition for issuance of a possessory writ is not thejudicial process referred to in Art @--"5

-' .xecution sales

:imitations on the right of ownership:imited by&' by the tates power to tax# police power# and eminent domain*' those imposed by law such as legal easement-' those imposed by the owner himself# such as oluntary

easement@' those imposed by the grantor of the property on the grantee


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PROPERTY NOTES

Art 4)7 The owner or law",l #ossessor o" a thing has the right toe/cl,$e any #erson "rom the en!oyment an$ $is#osal thereo"& 3or this#,r#ose+ he may ,se s,ch "orce as ay e reasonaly necessary to

re#el or #re'ent an act,al or threatene$ ,nlaw",l #hysical in'asion or,s,r#ation o" his #ro#erty&

3rinciple of self7help$e%uisites8i' 3erson defending must be the owner or lawful possessorii' (se of reasonable forceiii' nly be exercised at the time of an actual or threatened

dispossession !no delay"i' Actual or threatened physical inasion or usurpation which is

unlawful

$ead with Art &K of the )iil )ode'

Art 4.9 E'ery owner may enclose or "ence his lan$ or tenements ymeans o" walls+ $itches+ li'e or $ea$ he$ges+ or y any other meanswitho,t $etriment to ser'it,$es constit,te$ thereon&

$ight to enclose or fence

:imited by existing seritudes imposed on the land or tenement

Art 4.1 The owner o" a thing cannot ma-e ,se thereo" in s,ch manneras to in!,re the rights o" a thir$ #erson&

Art 4.) The owner o" a thing has no right to #rohiit the inter"erence o"another with the same+ i" the inter"erence is necessary to a'ert animminent $anger an$ the threatene$ $amage+ com#are$ to the $amage

arising to the owner "rom the "rom the inter"erence+ is m,ch greater&The owner may $eman$ "rom the #erson ene"ite$ in$emnity "or the$amage to him&

tate of necessityGeneral rule8 a person cannot interfere with the right of ownership of another.xception8 tate of necessity# but of course# ciil indemnification can beas9ed for

$e%uisites8

i' interference is necessary to aert an imminent danger and thethreatened damage to actor or a third person !but the damagemust be proportionate and reasonable"

ii' imminent danger or threatening damage must be much greater

than the damage arising to the owner of the property

Art 4.. Act,al #ossession ,n$er claim o" ownershi# raises a$is#,tale #res,m#tion o" ownershi#& The tr,e owner m,st resort to!,$icial #rocess "or the reco'ery o" the #ro#erty&

Applies to both immoable and moable property

$e%uisites to raise the disputable presumption of ownership8i' Actual !physical or material" possession of the propertyii' 3ossession must be under claim of ownership

udicial process contemplated

Means ejectment suit or reinidicatory action

+/1parte petition for issuance of a possessory writ is not a judicialprocess# as it is non7litigious !3=6 )A"

Art 4.4 In an action to reco'er+ the #ro#erty m,st e i$enti"ie$+ an$ the#lainti"" m,st rely on the strength o" his title an$ not on the wea-nesso" the $e"en$antBs claim&

$e%uisites8i' 3erson who claims that he has a better right to the property must

satisfactorily proe both ownership and identityii' 6urden of proof lies on the party who substantially asserts the

affirmatie of an issueiii' $eliance on strength of eidence and not upon the wea9ness of the

opposing party

3arty who desires to recoer must fix the identity of the land claimed by

describing the location# area and boundaries thereofo 4f a party fails to identify sufficiently and satisfactorily the land

which he claims as his own# his action must necessarily failo While the identity of the property must be established# it is not

necessary for the plaintiff to establish the precise location andextent of the lands claimed or occupied by the defendant

General rule8 where there is a conflict between the area and boundaries


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PROPERTY NOTES

of a land# the latter preails'o An area delimited by boundaries properly identifies a parcel of

land.xception8 where the boundaries relied upon do not identify the

land beyond doubto 4n such cases where there appears to be an oerlapping of

boundaries# the actual sie of the property gains importance'

.%uiponderance of eidence? $ule for defendant'

.idence to proe ownership&' A /orrens title*' /itle from the panish goernment-' 3atent duly registered in the $egistry of 3roperty@' Deed of sale


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PROPERTY NOTES

o Cor the loss sustained by such owner# he is entitled to just

compensation under mining laws or expropriation proceedings

Art 4.5 ;i$$en treas,re elongs to the owner o" the lan$+ ,il$ing+ or

other #ro#erty on which it is "o,n$&Ne'ertheless+ when the $isco'ery is ma$e on the #ro#erty o"another+ or o" the state or any o" its s,$i'isions+ an$ y chance+ onehal" thereo" shall e allowe$ to the "in$er& I " the "in$er is a tres#asser+eh shall not e entitle$ to any share o" the treas,re&

I" the things "o,n$ e o" interest to science or the arts+ theState may ac6,ire them at their !,st #rice+ which shall e $i'i$e$ incon"ormity with the r,le state$&

Art 4.7 =y treas,re is ,n$erstoo$+ "or legal #,r#oses+ any hi$$en an$,n-nown $e#osit o" money+ !ewelry+ or other #recio,s o!ects+ thelaw",l ownershi# o" which $oes not a##ear&

$e%uisites8

i' Deposit of money# jewelry or other precious objectsii' Eidden and un9nowniii' :awful ownership of which does not appear

:;APTER T;T O3 A::ESSION>ENERAL PROVISIONSSE:TION I RI>;T O3 A::ESSION


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PROPERTY NOTES

o The in$,strial "r,its(

o The ci'il "r,its&

Art @@& refers to accession discreta

$ight of owner to the fruitsGeneral rule8 All fruits belong to the owner of a thing'.xception8 A person# other than the owner of a property# owns the fruitsthereof8&' possession in good faith by another !possessor entitled to the fruits

receied before possession is legally interrupted"*' usufruct !usufructuary entitled to all the fruits of the property on usufruct"-' lease of rural lands !lessee gets fruits# lessor gets rents"@' pledge !pledgee gets fruits# etc but with the obligation to compensate

what he receies with those which are owing him"


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PROPERTY NOTES


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PROPERTY NOTES

Good faith Good faith:763 can ac%uire the materialsproided there is full payment

.ntitled to full payment for alue ofmaterials# orMay remoe materials proided

there is no substantial injury to wor9done

6ad faith Good faith

Ac%uire the materials proided hepays full payment plus damages

.ntitled to full payment for alue ofmaterials plus damages# or$emoe materials een if there willbe substantial injury to wor9 doneplus damages

Good faith 6ad faithAc%uire materials without paying forthe alue thereof and entitled todamages due to defects or inferior%uality of materials

:oses materials without indemnityand will be liable for damages due todefects or inferior %uality of materials

6ad faith 6ad faith

ame as when both are in goodfaith'

Art 445 The owner o" the lan$ on which anything has een ,ilt+ sownor #lante$ in goo$ "aith+ shall ha'e the right to a##ro#riate as his ownthe wor-s+ sowing or #lanting+ a"ter #ayment o" the in$emnity #ro'i$e$"or in articles *40 an$ *45+ or to olige the one who ,ilt or #lante$ to#ay the #rice o" the lan$+ an$ the one who sowe$+ the #ro#er rent&;owe'er+ the ,il$er or #lanter cannot e olige$ to ,y the lan$ i" i ts'al,e is consi$eraly more than that that o" the ,il$ing or trees& Ins,ch case+ he shall #ay reasonale rent+ i" the owner o" the lan$ $oesnot choose to a##ro#riate the ,il$ing or trees a"ter #ro#er in$emnity&

The #arties shall agree ,#on the terms o" the lease an$ in case o"$isagreement+ the co,rt shall "i/ the terms thereo"&

Art 447 ;e who ,il$s+ #lants or sows in a$ "aith on the lan$ o"another+ loses what is ,ilt+ #lante$ or sown witho,t right to in$emnity&

Art 4*9 The owner o" the lan$ on which anything has een ,ilt+#lante$ or sown in a$ "aith may $eman$ the $emolition o" the wor-+ orthat the #lanting or sowing e remo'e$+ in or$er to re#lace things intheir "ormer con$ition at the e/#ense o" the #erson who ,ilt+ #lante$

or sowe$( or he may com#el the ,il$er or #lanter to #ay the #rice o"the lan$+ an$ the sower the #ro#er rent&

Art 4*1 In case o" the two #rece$ing articles+ the lan$owner is entitle$

to $amages "rom the ,il$er+ #lanter or sower&

Art 4*) The ,il$er+ #lanter or sower in a$ "aith is entitle$ toreim,rsement "or the necessary e/#enses o" #reser'ation o" the lan$&

Art 4*. I" there was a$ "aith+ not only on the #art o" the #erson who,ilt+ #lante$ or sowe$ on the lan$ o" another+ ,t also on the #art o"the owner o" s,ch lan$+ the rights o" one an$ the other shall e thesame as tho,gh oth ha$ acte$ in a$ "aith&

It is ,n$erstoo$ that there is a$ "aith on the #art o" thelan$owner whene'er the act was $one with his -nowle$ge an$ witho,to##osition on his #art&

Art 4*4


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PROPERTY NOTES

Good faith Good faithption &8 3urchase whateer hasbeen built# planted# or sown afterpaying indemnity which includes

necessary# useful and luxuriousexpenses !if he wishes toappropriate the luxurious expenses"

3rohibited from offsetting orcompensating the necessary anduseful expense with the fruitsreceied by the 63 in good faith!=uguid case"

$eceie indemnity for necessary#useful and luxurious expenses!depends on landowner" with right of

retention oer the land withoutobligation to pay rent until fullpayment of indemnity

$emoe useful improementproided it does not cause any injury!part of right of retention"

4f : does not appropriate luxuriousimproements# 63 can remoe thesame proided there is no injury tothe principal thing !land or building"

$ight of retention only applies when

: chooses to appropriate !but doesnot apply if property of publicdominion"

ption *8 /o oblige the 63 to buythe land or the to pay the properrent unless the alue of the land isconsiderably more than that of thebuilding or trees

:egal implication of planter sower8wner cant compel sower to buy#only rent'

/o purchase land at fair mar9etalue at time of payment when alueis not considerably more than that ofthe building or trees

/o pay rent until the purchase hasbeen made !/echnogas case"

4f 63 cannot pay purchase price ofthe land# : can re%uire 63 to

remoe whateer has been built#planted# or sown'

4f the alue of the land isconsiderably more than that of thebuilding or trees# 63 cannot becompelled to buy the land' 4n suchcase# 63 will pay reasonable rent if: does not choose option &'

4f 63 cannot pay the rent# : caneject 63 from the land'

=ote8 $ental period of sower is only

until he gathers what he sowed' Eedoesnt hae the remedy of remoal'!armiento"

Good faith 6ad Caith

ption &8 /o ac%uire whateer hasbeen built# planted or sown withoutpaying indemnity except necessaryexpenses for preseration of landand luxurious expenses !should :want to ac%uire luxuriousimproement" plus damages

:oses whateer has been built#planted or sown without indemnityand liable to pay damages

.ntitled to reimbursement fornecessary expenses for preserationof land but no right to retention !andalso @@-"

=/ .ntitled to reimbursement for

useful expenses and cannot remoeuseful improements een if remoalwill not cause injury !MW case"

=ot entitled to luxurious expensesexcept when : wants to ac%uire!alue of which will be the one at thetime : enters into possession"

.ntitled to remoe luxuriousimproements if it will not causeinjury and : does not want toac%uire them' 4f it will cause injury

and : doesnt want to ac%uire# hegets it for free !Dean Del"

ption *8 /o oblige 63 to buy landor to pay proper rent plusdamages# regardless of aluation

bliged to pay for land or proper rentand pay damages

ption -8 /o compel 63 to remoeor demolish wor9 done plusdamages

bliged to remoe or demolish wor9done at his expense and paydamages

6ad Caith Good Caith

Ac%uire whateer has been built# 6all is in the court of the 63'


18


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PROPERTY NOTES

planted or sown by paying indemnityplus damages 63 can remoe whateer has been

built# planted or sown regardless ofwhether or not it will cause injury and

will be entitled to damages

4f : ac%uires whateer has beenbuilt# planted or sown# 63 must beindemnified the alue thereof plusdamages

4f : does not ac%uire# 63 cannotinsist on purchasing land

6ad Caith 6ad Caith

6oth in good faith

=ecessary expenses

Made for the preseration of the thing# or

/hose which see9 to preent the waste# deterioration# or loss of the

thing

(seful expenses

.xpenses which add alue to a thing or

Augment is income

When does good faith cease?

Crom the moment defects in the title are made 9nown to the possessor

by extraneous eidence or by suit for recoery of the property by thetrue owner

What happens if good faith ceases? !$osales case"

: can ac%uire improements built 3$4$ to the notice to 63 !when

good faith ceased"# and indemnify 63 of current mar9et alue at timeof payment

: entitled to rent from the time 63 good faith ceased

When will these rules not apply?&' When other proisions of law goern !agency# co7ownership# lease#

usufruct"*' 4mproement constructed on ones own land subse%uently sold !person

constructs a house on his own land and later sold land to another"

6ut# the proision on indemnity in @@ may be applied by analogywhere the owner7builder later lost ownership of the land by irtue ofa court judgment# considering that the primary intent of @@ is toaoid a state of forced co7ownership especially where the parties inthe main agree that @@ and !3ecson )A"-' 6uilder is a belligerent occupant@' )onstructions not in the nature of buildings


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PROPERTY NOTES

land is considerablymore than that ofbuilding or trees

with right of retentionuntil full payment5 or

/o remoe materials if

there will be no injuryon building or trees andwill hae material lienagainst 63 forpayment of materials

Good Caith Good Caith 6ad Caith

ame Whateer is the choiceof :# the M8&' loses the materials infaor of the 63 and*' will hae no right toreceie indemnity from63 nor :

Good Caith 6ad Caith 6ad Caith

ption &8 /o ac%uirewhateer has beenbuilt# planted or sownwithout payingindemnity except fornecessary expensesfor preseration of landand luxurious expenses!should : want toac%uire luxuriousimproements" plusdamages

63 loses what hasbeen built# planted orsown plus liable fordamages but is entitledto be indemnified fornecessary expensesand luxurious expenses!should : want toac%uire luxuriousimproements" and hasno right of remoaleen if remoal will notcause damage

!ince both 63 andM are in bad faith#treat them both as ifthey are in good faith'"

Whateer is the choiceof the :# M has rightto receie indemnity foralue of materials from63 only !: has nosubsidiary liability foralue of materialsbecause M is

considered in goodfaith only insofar as63 is concerned"

M has no right toremoe materials eenif there will be no injuryor damage

ption *8 /o oblige 63to buy the land or to

/o buy the land or payproper rent and liable

Get indemnificationfrom the 63

pay proper rent plusdamages

to pay damages to :

ption -8 /o oblige 63to demolish or remoe

what has been built#planted or sown plusdamages

/o demolish or remoewhat has been built#

planted or sown andliable for damages

:iable to pay damagesdue to defects or

inferior %uality ofmaterials

6ad Caith Good Caith Good Caith

/o ac%uire what hasbeen built# planted orsown by payingindemnity plus liable topay damages

/o receie indemnityfrom : plus damages

/ receie indemnity ofmaterials principallyfrom 63 and in case63 is insolent#subsidiarily from :

6ad Caith Good Caith 6ad Caith

ame ame =o right to receieindemnity for alue ofmaterials from 63 nor: !who ends upowning buildings ortrees"

4f M in bad faith# he doesnt get anything !unless 63 in bad faith as

well"

Art 4*0 In the cases reg,late$ in the #rece$ing articles+ goo$ "aith $oesnot necessarily e/cl,$e negligence+ which gi'es right to $amages,n$er article )120&

Art 4*2 To the owners o" the lan$s a$!oining the an-s o" ri'ers elongthe accretion which they gra$,ally recei'e "rom the e""ects o" thec,rrent o" the waters&

Article treats of alluion# a form of accession natural'

Alluion isJ

Accretion which the ban9s of riers gradually receie from the effects of

the current of the waters and

Which belong to the owners of lands adjoining the said ban9s

$iparian owners are owners of lands adjoining the ban9s of riers'

:ittoral owners are the owners of lands bordering the shore of the sea or


20


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PROPERTY NOTES

la9e or other tidal waters

Distinguished f rom accretion

Alluion is applied to the deposit of soil or to the soil itself

Accretion is the act or process by which a riparian land gradually andimperceptiely receies addition made by the water to which the land iscontiguous

$e%uisitesi' Deposit or accumulation of soil or sediment must be gradual and

imperceptieii' Accretion results from the effects or action of the current of waters of

the rier !exclusie wor9 of nature"iii' :and where accretion ta9es place must be adjacent to the ban9 of a

rier

4nstances when alluion D. =/ ta9e place1. Accretion because of sudden and forceful action li9e that of flooding2. Accretion caused by human interention !would still be part of public

domain 2 Fda de =aerno )A"3. Accretion caused by action of Manila 6ay !since Manila 6ay is not a

rier# its part of the sea"4. Accretion on the ban9 of a la9e !li9e :aguna de 6ay" hae been held to

belong to the owners of the lands to which they are added

.lements of rier and their ownershipA rier is a compound concept consisting of three elements8

&' $unning waters*' /he bed-' /he ban9s

ince a rier is a compound concept# it should hae only one nature 2 itshould either be totally public or completely priate' And since riers#whether naigable or not# are of public dominion !Art @*;"# it is implicitthat all the three component elements be the same nature also'

$easons for alluion&' )ompensate the riparian owner for the danger of loss that he

suffers because of the location of his land*' )ompensate him for the encumbrances and arious 9inds of

easements to which his property is subject

-' 3romote the interests of agriculture for the riparian owner it in thebest position to utilie the accretion

Accretions affecting lands registered under the /orrens systemn case o% diminution o% area

$egistration does not protect the riparian owner against diminution of

the area of his land through gradual changes in the course of theadjoining stream

Accretions which the ban9s of riers may gradually receie from the

effect of the current become the property of the owners of the ban9sn case o% increase o% area

Although alluion is automatically owned by the riparian owner# it does

not automatically become registered land# just because the lot whichreceies such accretion is coered by a /orrens title

o# alluial deposit ac%uired by a riparian owner of registered land by

accretion may be subjected to ac%uisition through prescription by a thirdperson# by failure of such owner to register such accretion within the

prescribed period

Art 4*5 The owners o" estates a$!oining #on$s or lagoons $o notac6,ire the lan$ le"t $ry y the nat,ral $ecrease o" the waters+ or lostthat in,n$ate$ y them in e/traor$inary "loo$s&

$efers only to ponds and lagoons

o =o application when the estate adjoins a cree9# stream# rier or

la9eo Cor purposes of alluion# la9es are of the same category of

cree9s# streams and riers

3ond

o a body of stagnant water without an outlet

o larger than a puddle and smaller than a la9e

:agoono small la9e# ordinarily of fresh water#

o and not ery deep# fed by floods

o the hollow bed of which is bounded by eleations of land

:a9e

o 6ody of water formed in depressions of the earth

o rdinarily fresh water

o )oming from riers# broo9s or springs

o )onnected with the sea by them


21


22/129


PROPERTY NOTES

o Eence# :aguna de 6ay is a la9e

Art 4*7


23/129


PROPERTY NOTES

without any %ualification# he would hae a right to enter theother estate at any time# which wouldnt be conenient to theother estate

o After a long period# the detached potion may become

permanently attached to the new land so itll be hard to remoe

Art 409 Trees ,#roote$ an$ carrie$ away y the c,rrent o" the waterselong to the owner o" the lan$ ,#on which they may e cast+ i" theowners $o not claim them within 0 months& I" s,ch owners claim them+they shall #ay the e/#enses inc,rre$ in gathering them or #,tting themin a sa"e #lace&

Applies only to uprooted trees

4f a 9nown portion of land with trees standing thereon is carried away by

the current to another land# Art @


24/129


PROPERTY NOTES

Art 40.


25/129


PROPERTY NOTES

6ut one of the component things preseres its alue

)haracteristics of adjunction4n order that adjunction may ta9e place# it is necessary that8

&' /here are two moables belonging to different owners*' /hey are united in such a way that they form a single object5 and-' /hey are so inseparable that their separation would impair their nature

or result in substantial injury to either

4n determining the right of the parties in adjunction# regard is had only to

the things joined and not to the persons'

6ut where there is a mere change of form or alue which does not

destroy the identity of the component parts# the original owners maydemand their separation !Art @HK"

Ninds of adjunction&' inclusion or engraftment !such as when a diamond is set on a gold ring"*' soldering or soldadura !when led is united or fused to an object made of

lead"a' ferrumincaion !if both the accessory and principal are of the

same metal"b' plumbatura !if they are of different metals"

-' writing or escritua !when a person writes on paper belonging to another"@' painting or pintura !when a person pains on canas of another"


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PROPERTY NOTES

I" either one o" the owners has ma$e the incor#oration with the-nowle$ge an$ witho,t the o!ection o" the other+ their res#ecti'erights shall e $etermine$ as tho,gh oth acte$ in goo$ "aith&

A8DCN:TION !accessory follows principal"$ights of wner of 3rincipal $ights of wner of Accessory

Good Caith Good Caith

Ac%uires the accessory#indemnifying the owner of the aluethereof

.xcept8 When alue of accessory ismuch more precious than theprincipal thing !@HK"

.xcept8 When still separable# maydemand separation !no adjunctionanyway"

:oses the accessory but has a rightto indemnity for the alue of theaccessory

Eas a right to demand separationeen if it causes injury to theprincipal thing !@HK"

May demand separation !@HK!

Good faith 6ad faithAc%uires the accessory and has aright to indemnity for damages hemay hae suffered

:oses the thing and has liability fordamages

6ad faith Good faith3ays for the accessory plusdamages

eparate thing een if it is destroyedplus pay damages

ption &8 Demand the owner of theprincipal to pay for the alue of theaccessory plus damages

ption *8 Demand separation een ifit causes the destruction of theprincipal thing plus damages

6ad Caith 6ad Caith

As if both are in good faith

Art 421


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PROPERTY NOTES

I" the material is more #recio,s than the trans"orme$ thing oris o" more 'al,e+ its owner+ may+ at his o#tion+ a##ro#riate the newthing to himsel"+ a"ter "irst #aying in$emnity "or the 'al,e o" the thing+or $eman$ in$emnity "or the material&

I" in the ma-ing o" the thing a$ "aith inter'ene$+ the owner o"the material shall ha'e the right to a##ro#riate the wor- to himsel"witho,t #aying anything to the ma-er+ or to $eman$ o" the latter that hein$emni"y him "or the 'al,e o" the material an$ the $amages he mayha'e s,""ere$& ;owe'er+ the owner o" the material cannot a##ro#riatethe wor- in case the 'al,e o" the latter+ "or artistic or scienti"ic reasons+is consi$eraly more than that o" the material&

Definition of specification

/a9es place wheneer the wor9 of a person is done on the material of

another

uch material# in a conse%uence of the wor9 itself# undergoing a

transformation'

4mparting of a new form to the material belong to another# or ma9ing of

the material of another into a different 9indo Clour made into bread# grapes into wine# clay into bric9s# loe

into hate !jo9e' (ute', ang boring ng (roperty3 % youve madeit this %ar, good %or you7"

SPE:I3I:ATION !accessory follows principal"

wner of material 6uilder Good faith Good faith

$ight to indemnification for the alueof the material'

+/cept8 Material more precious thantransformed thing'

ption &8 Appropriate the new thingto himself# indemnifying the builderfor his wor9'

ption *8 Demand indemnity for thematerial'

hall appropriate the thing thustransformed as his own#indemnifying the owner of thematerial for its alue'

/o be indemnified'

Appropriate the same after indemnityfor material'

Good faith 6ad faith

ption &8 Appropriate the wor9 tohimself without paying indemnity'!Damages also?"

+/cept8 When for artistic or scientificreasons# the thing has a alueconsiderably higher than thematerial' /he owner of the materialcannot appropriate the wor9'

ption *8 Demand indemnity formaterial plus damages'

:oses his wor9' =o right toindemnity'

3ay for the materials and damages'

Must pay indemnity and damages'

Art 42* In the #rece$ing articles+ sentimental 'al,e shall e $,lya##reciate$&

Adjunction# mixture and specification distinguished

Adjunction Mixture pecificationAt least two things At least two things May be only one ting

whose form is changed

)omponent parts retainor presere their nature

/hings mixed may ormay not retain theirrespectie originalnature

)omponent parts retainor presere their nature

Accessory followsprincipal

)o7ownership results Accessory followsprincipal

:;APTER T;REE% FCIETIN> O3 TITLE

ART 420


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PROPERTY NOTES

3laintiff in action for %uiet title dies# should it be dismissed? =o' 4ts a %uasiin rem suit'Defendants defenses8 prescription# lac9 of jurisdiction of court

)loud on title

emblance of title# either legal or e%uitable# or a claim or a right in real

property# appearing in some legal from# but which is in fact# inalid orwhich would be ine%uitable to enforce

$e%uisites

i' 4nstrument# record# claim# encumbrance or proceeding which isapparently alid or effectie#

ii' uch instrument is in truth and in fact# inalid# ineffectie#oidable or unenforceable# or has been extinguished orterminated# or has been barred by extinctie prescription

iii' uch instrument may be prejudicial to said title

Action to %uiet title

$e%uisites8

i. 3laintiff or complainant has a legal or an e%uitable title to# orinterest in the real property subject of the action

ii. /he deed# claim or proceeding claimed to be casting cloud onhis title must be shown to be# in fact# inalid or inoperatiedespite its prima facie appearance of alidity or legal efficacy

Action to %uiet title Action to remoe a cloud on title

3urpose to put an end to

troublesome litigation in respectto the property inoled

$emedial action inoling a

present aderse claim

&stparagraph of Art @IH

$emoal of a possible

foundation for a future hostileclaim

3reentie action to preent a

future cloud on the title

*ndparagraph of Art @IH

An action to %uiet title includes an action to remoe a cloud of title'

=ature of action

8uasi in rem

udgment is conclusie only between the parties

/he res# the subject7matter of the controersy# is within the courts

jurisdiction# and it is because of that circumstance that the court is ableto adjudicate

=ot essential that the court ac%uire jurisdiction of the person of the

defendant

6enefits from allowing actions

/as9 of court is to determine the respectie rights of the parties so thatthe complainant and those claiming under him may foreer free fromany danger of hostile claim !$umarate case"

Affords prompt and ade%uate method to remoe cloud on title

3romotes improement of property

/o what 9ind of property does this action apply?

$eal property# which may refer to either the title or only an interest

therein !usufruct# seritude# lease record# etc"

=ot to personal property

o 6ut# they may be applied to personalty under exceptional

circumstances with respect to certain types of property which

parta9e of the nature of real property !essels# motor

ehicles# certificates of stoc9s"# or treated to some extent as realty because of

registration re%uirements for ownership ortransactions affecting them !chattel mortgage"

3rescriptibility of action&' 4f plaintiff in possession# it does not prescribe' An action to %uiet title

brought by a person who is in possession of the property isimprescriptible'

*' 4f plaintiff not in possession# he must ino9e his remedy within theproper prescriptie period' /en years if in good faith# -; years if in badfaith'

Art 422 The #lainti"" m,st ha'e legal or e6,itale title to+ or interest inthe real #ro#erty which is the s,!ect matter o" the action& ;e nee$ note in #ossession o" sai$ #ro#erty&

/itle and possession of the plaintiff

3laintiff must hae a legal or e%uitable title or an interest in the real

property which is the subject matter of the actiono :egal title may consist in full ownership or in na9ed ownership

o 4f plaintiff has beneficial interest in the property !such as a

beneficiary in a trust"# he has beneficial title


28


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PROPERTY NOTES

o 4nterest in property is any interest short of ownership# li9e the

interest of a mortgagee or a usufructuary

4f plaintiff is not in possession# he may also bring one of the three

actions mentioned in addition to the action to %uiet title

4n order to afford complete relief to the parties in action to %uiet title# thecourt# without thereby conerting the action from %uieting of title intoaccion publiciana,may determine#8

o 4ncidentally the ownership#

o /he stats of the legal title to the property

o $ight to the possession thereof

Art 425 There may also e an action to 6,iet title or remo'e a clo,$there"rom when the contract+ instr,ment or other oligation has eene/ting,ishe$ or has terminate$+ or has een arre$ y e/tincti'e#rescri#tion&

/wo cases when action allowedAn action to %uiet title may be maintained8&' When the contract# instrument# or other obligation has been

extinguished or terminated !right of the defendant has beenextinguished by the happening of a condition subse%uent"

*' When the contract# instrument or other obligation has been barred byextinctie prescription !as where plaintiff has possess in bad faith theproperty publicly# adersely and uninterruptedly for -; years"

Art 427 The #lainti"" m,st ret,rn to the $e"en$ant all ene"its he mayha'e recei'e$ "rom the latter+ or reim,rse him "or e/#enses that mayha'e re$o,n$e$ to the #lainti""Bs ene"it&

bligation of plaintiff to return or reimburse

/he purpose of the action to %uiet title is solely

o to remoe the cloud on the plaintiffs title oro to preent a cloud from being cast upon his title# and not to

obtain any other benefit

3laintiff is bound to return to the defendant all the benefits he may hae

receied form the latter or reimburse him for the expenses incurred onthe property which has redounded to the plaintiffs benefit !less ofcourse# any damage which he suffered by reason of the defendant"

Art 459 The #rinci#les o" the general law on the 6,ieting o" title are

herey a$o#te$ inso"ar as they are not in con"lict with this :o$e&

Art 451 The #roce$,re "or 6,ieting o" title or the remo'al o" a clo,$there"rom shall e go'erne$ y s,ch r,les o" co,rt as the S,#reme:o,rt shall #rom,lgate&

:;APTER 3OCR% RCINOCS =CIL8IN>S AN TREES IN8AN>ER O3 3ALLIN>

Art 45) I" a ,il$ing+ wall+ col,mn or any other constr,ction is in$anger o" "alling+ the owner shall e olige$ to $emolish it or toe/ec,te the necessary wor- in or$er to #re'ent it "rom "alling&

I" the #ro#rietor $oes not com#ly with this oligation+ thea$ministrati'e a,thorities may or$er the $emolition o" the str,ct,re atthe e/#ense o" the owner+ or ta-e meas,res to ins,re #,lic sa"ety&

4f a building# wall# column or other construction is in danger of falling# the

owner has the duty to either8o Demolish it# or

o $epair it'

4n case he doesnt# the administratie authorities# in the exercise of

police power# may order the demolition of the structure# or ta9emeasures to insure public safety

$ecognition of the limitation of the owners rights in the use and

enjoyment of his propertyo Sic utere tuo ut alienum non laedas3 2 (se your property as

not to injure others

Art 45.


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PROPERTY NOTES

ART 454 There is coownershi# whene'er the ownershi# o" an,n$i'i$e$ thing or right elongs to $i""erent #erson&

In $e"a,lt o" contracts+ or o" s#ecial #ro'isions+ coownershi#

shall e go'erne$ y the #ro'isions o" this Title&

What is co7ownership?

As a manifestation of ownership# it is that form of ownership which

exists wheneer an undiided thing or right belongs to different persons

As a right# it has been defined as the right of common dominion which

two or more persons hae in a spiritual or ideal part of a thing which isnot materially or physically diided

$e%uisitesi. 3lurality of ownersii. bject of ownership must be an undiided thing or rightiii. .ach co7owners right must be limited only to his ideal share of the

physical whole

)haracteristics of co7ownership&' /wo or more co7owners*' ingle object which is not materially or physically diided# oer which

and his ideals share of the whole# each co7owner exercises ownership#together with the co7owners

-' =o mutual representation by the co7owners@' .xists for the common enjoyment of the co7owners


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PROPERTY NOTES

3urpose is collectie enjoyment

of the thing

)o7owner can dispose of his

share without the consent of the

others# transferee automaticallybecoming a co7owner

=o mutual representation

Distribution of profits must be

proportional to the respectieinterests of the co7owners

=ot dissoled by death

Agreement to 9eep the thing

undiided for a period of morethan ten years is oid !althoughit may be extended by a newagreement"

3urpose to obtain profits

(nless authoried# a partner

cannot dispose and substitute

another partner in his place 3artner can generally bind the

partnership

Distribution of profits is subject

to stipulation of the partners

Dissoled by death or incapacity

/here may be agreement as to

any definite term without limitset by law

)o7ownership .asement .ach co7owner has a right of

dominion oer the wholeproperty and oer his undiidedshare

$ight of ownership rests solely

on each and eery co7owneroer a single object

3recisely a limitation on the right

of dominion

$ight of dominion is in faor of

one or more persons and oertwo or more different things

)ase doctrines

/he property regime of parties to a bigamous marriage is goerned by

Art &@ of the Camily )ode which proides that all properties ac%uiredby the parties out of their actual joint contribution of money# property# or

industry shall be goerned by the rules on co7ownership' 4f there is nocontribution from either or both of the spouses# there can be no co7ownership' !Acre utti99i 7 aw yeah# what a name'"

Art 45* The share o" the coowners+ in the ene"its as well as in thecharges+ shall e #ro#ortional to their res#ecti'e interests& Anysti#,lation in a contract to the contrary shall e 'oi$&

The #ortions elonging to the coowners in the coownershi#shall e #res,me$ e6,al+ ,nless the contrary is #ro'e$&

3resumption8 3roportional to their respectie interestsDoes not apply to co7ownership based on will or by donation'

Art 450 Each coowner may ,se the thing owne$ in common+ #ro'i$e$he $oes so in accor$ance with the #,r#ose "or which it is inten$e$ an$in s,ch a way as not to in!,re the interest o" the coownershi# or#re'ent the other coowners "rom ,sing it accor$ing to their rights& The#,r#ose o" the coownershi# may e change$ y agreement+ e/#ressor im#lie$&

:imitations on co7owners right to use&' Must be n accordance with the purpose for which the co7ownership is

intended

$esort to the agreement

4n absence thereof# it is to be understood that the thing is

intended for that use for which it is ordinarily adaptedaccording to its nature

)o7owners are free to change the purpose of the co7ownership

by agreement# express or impliedo Eoweer# mere tolerance does not change purpose

*' Must not injure the interest of the co7ownership-' Must not preent the co7owners from using it according to their rights

Art 452 Anyone o" the coowners may ring an action in e!ectment&

Action in ejectment

Any co7owner can bring# in behalf of himself# and the other co7owners

an action in ejectment affecting the co7ownershipo Corcible entry# unlawful detainer# recoery of possession#

recoery of ownership

May be brought against strangers and een against a co7owner

o nly purpose of an action against a co7owner who ta9esexclusie possession and asserts exclusie ownership of theproperty is to obtain recognition of the co7ownership

An aderse decision in the action is not necessarily res judicata with

respect to the other co7owners not being parties to the actiono .xception8 where it appears that the action was instituted in

their behalf with their express or implied consent# oro /he rights in the co7ownership are deried from the title of their

predecessors7in7interest found by the court to be inalid or

Mic9ey 4ngles

Ateneo :aw *;&*# updated8 May &

31


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PROPERTY NOTES

inexistent

Art 455 Each coowner shall ha'e a right to com#el the other coowners to contri,te to the e/#enses o" #reser'ation o" the thing orright owne$ in common an$ to the ta/es& Anyone o" the latter may

e/em#t himsel" "rom this oligation y reno,ncing so m,ch o" his,n$i'i$e$ interest as may e e6,i'alent to his share o" the e/#ensesan$ ta/es& No s,ch wai'er shall e ma$e i" it is #re!,$icial to the coownershi#&

bligation to contribute to expenses of preseration and to taxes

/he expenses of preseration of the thing or right owned in common

and the amount of taxes due thereon should be borne by all

A co7owner who adanced them has a right to demand reimbursement

from the others in proportion to their respectie interests in the co7ownership

$efers only to necessary expenses

(seful expenses are not coered# unless such were incurred with the

consent of the others

.xpenses for pure luxury are not also refundable# not being for

preseration

$enunciation by a co7owner of his share in the co7ownership

$enunciation need not be total

/he co7owner need only renounce or gie up in faor of the other co7

owners so much of this undiided share as may be e%uialent to hisshare of expenses and taxes

.xample?

Art 457 Re#airs "or #reser'ation may e ma$e at the will o" one o" oneo" the coowners+ ,t he m,st+ i" #racticale+ "irst noti"y his coownerso" the necessity "or s,ch re#airs& E/#enses to im#ro'e or emellish thething shall e $eci$e$ ,#on y a ma!ority as $etermine$ in Article 47)&

=ecessity for agreement on expenses

Acts or decisions affecting the ting owned in common may be grouped

intoo Acts of preseration !Art @K"

o Acts of administration !Art @K*"

o Acts of alteration !Art @K&"

$epairs for preseration

o A co7owner has the right to compel the other co7owners to

contribute to the expenses of preseration# maintenance ornecessary repairs of the thing or right owned in common# andto the taxes# een if incurred without the 9nowledge of otherco7owners or prior notice to them# in iew of the nature ofexpenses

o )o7owner must# if practicable# first notify the co7owners of the

necessity for the repairs

4f impracticable or where the repairs are ery urgentand the other co7owners are in remote places andcannot be reached# the notice may be dispensed with

o /he lac9 of notice# een if practicable# would not exempt the

other co7owners from the obligation to contribute to theexpenses' 6ut the co7owner who adanced them has theburden of proing that they were properly incurred'

Art 479


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PROPERTY NOTES

"or all wo,l$ res,lt there"rom& ;owe'er+ i" the withhol$ing o" theconsent y one or more ot the coowners is clearly #re!,$icial to thecommon interest+ the co,rts may a""or$ a$e6,ate relie"&

=ecessity of consent of other co7owners for alterations

Alteration contemplates a change made by a co7owner in the thing

owned in common which inoles8o )hange of the thing from the state or essence in which the

others beliee it should remain5 oro Withdrawal of the thing from the use to which they wish it to be

intended5 oro Any other transformation which prejudices the condition or

substance of the thing or its enjoyment by the others'

Alteration is not limited to material or physical changes

o 4ncludes any act of ownership by which a real right or

encumbrance is imposed on the common property# such asseritude# registered lease# lease of real property for more thanone year# mortgage# pledge

=68 (nanimous consent of all the co7owners# not a mere majority# is

necessary een if the alteration would proe beneficial becausealteration is an act of ownership and not of mere administration

o )onsent may be expressed or implied

:iability for alteration8 the co7owner who ma9es such alteration without

the express or implied consent of the other co7owners acts in bad faithbecause he does so as if he were the sole owner

o Ee loses what he has spent

o bliged to demolish the improements done# and

o :iable to pay for loses and damages the community property or

the other co7owners may hae suffered

Art 47) 3or the a$ministration an$ etter en!oyment o" the thing owne$in common+ the resol,tions o" the ma!ority o" the coowners shall ein$ing&

There shall e no ma!ority ,nless the resol,tion is a##ro'e$y the coowners who re#resent the controlling interest in the o!ect o"the coownershi#&

Sho,l$ there e no ma!ority+ or sho,l$ the resol,tion o" thema!ority e serio,sly #re!,$icial to those intereste$ in the #ro#ertyowne$ in common+ the co,rt+ at the instance o" an intereste$ #arty+shall or$er s,ch meas,res as it may $eem #ro#er+ incl,$ing the

a##ointment o" an a$ministrator&


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PROPERTY NOTES

&' Cull ownership of his part# that is# his undiided interest or share in thecommon property

*' Cull ownership of the fruits and benefits pertaining thereto-' May alienate# assign or mortgage his ideal interest or share

independently of the other co7owners

@' May een substitute another person in the enjoyment of his part# exceptwhen personal rights are inoled

A co7owner is gien the legal right of redemption in case the shares of

all the other co7owners or any of them are sold to a third person !not aco7owner"&

o Earry# $on and =eille were co7owners of a parcel of land'

Earry sold his share to Draco' $on and =eille may redeemthe share from Angel' 4f only $on exercises the right# he shallpay only a reasonable price' ubject to reimbursement from=eille# as it is a preseration expense'

o 4f they both want to exercise the right# they may only do so in

proportion to the share they may respectiely hae in the thing

owned in common'

A co7owner may exempt himself from the obligation to contribute to the

expenses of preseration of the thing or right owned in common and tothe taxes by renouncing so much of his interest as may be e%uialent tohis share of the expenses and taxes

ale or mortgage of common property

(ndiided portion

o A co7owner is free to dispose of his pro indiiso share and of

the fruits and other benefits arising from that share but thetransferee does not ac%uire an specific or determinate physicalportion of the whole# his right being limited to the portion which

may be allotted to him upon the partition of the property Definite portion

1Art &H*; A co7owner of a thing may exercise the right of redemption in case the

shares of all the other co7owners or of any of them# are sold to a third person' 4f theprice of the alienation is grossly excessie# the redepmtioner shall pay only areasonable one'hould two or more co7owners desire to exercise the right of redemption they mayonly do so in proportion to the share they may respectiely hae in the thing owned incommon'

o /he fact that a deed of sale appears to coney a definite or

segregated portion of the property under co7ownership that isstill undiided does not per se render the sale a nullity

o /he sale is alid subject only to the condition that the interests

ac%uired by the endee must be limited to the part that may beassigned to the co7owner7endor in the diision upon thetermination of the co7ownership

o /he sale affects only his proportionate or abstract share in the

property owned in common# subject to the results of thepartition# but not those of the other co7owners who did notconsent to the sale

o /here may be a alid sale of a definite portion of the property

co7owned een before actual partition where the rule ofestoppel apples !co7owners didnt object when seller pointed aportion out to a potential buyer"

Whole property

o .en if a co7owner sells the whole property as his own# or

without the consent of ther other co7owners# the sale is alidonly insofar as his ideal %uota is concerned unless the sale isauthoried by the other co7owners

o A sale of the entire property by one co7owner will only transfer

the rights of said co7owner to the buyer# thereby ma9ing thebuyer a co7owner of the property

o $ecourse of co7owners when their consent was not secured8

action for partition

Where personal rights are inoled

A co7owner may substitute another in the enjoyment of his undiided

interest in the co7ownership except when personal rights are inoled

3ersonal right 2 a right which cannot be transferred because it affects

the personal relations of the co7owners with one another

Art 474 No coowner shall e olige$ to remain in the coownershi#&Each coowner may $eman$ at any time the #artition o" the thingowne$ in common+ inso"ar as his share is concerne$&

Ne'ertheless+ an agreement to -ee# the thing ,n$i'i$e$ "or acertain #erio$ o" time+ not e/cee$ing ten years+ shall e 'ali$& Thisterms may e e/ten$e$ y a new agreement&

A $onor or testator may #rohiit #artition "or a #erio$ whichshall not e/cee$ twenty years&

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PROPERTY NOTES

Neither shall there e any #artition when it is #rohiite$ ylaw&

No #rescri#tion shall r,n in "a'or o" coowner or coheiragainst his coowners or coheirs so long as he e/#ressly or im#lie$lyrecognies the coownershi#&

/ermination of co7ownership

)o7ownership may be terminated in different ways# as follows

&' )onsolidation or merger in only one of the co7owners of all theinterests of the others5

*' Destruction or loss of the property co7owned-' Ac%uisitie prescription in faor of a third person# or a co7owner

who repudiates the co7ownership@' 3artition# judicial or extrajudicial


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PROPERTY NOTES

accor$ance with Article 475&

Art 470 Partition may e ma$e y agreement etween the #arties or y!,$icial #rocee$ings& Partition shall e go'erne$ y the R,les o" :o,rtinso"ar as they are consistent with this :o$e&

3urpose and effect of partition

3artition has for its purpose the separation# diision and assignment of

the thing held in common among those to whom it may belong'

After partition# the portion belonging to each co7owner has been

identified and localied# so that co7ownership# in its real sense# nolonger exists

Action for partition

/wo phases8

o Determine whether there is indeed a co7ownership

o Determine how the property is to be diided

/he issue of ownership or co7ownership must first be soled in order to

effect a partition of properties

An action for partition will not lie if the claimant has no rightful interest

oer the subject property

Eow partition effected

May be effected extrajudicially pursuant to an agreement

May be effected judicially by judicial proceedings under $ule HK of the

$ules of )ourto An action for partition is in the nature of an action 9uasi in rem

Application of the tatute of Crauds

/he tatute of Crauds does not apply to partition because it is not

legally deemed a coneyance or a sale of property resulting in changeof ownership but simply a segregation and designation of that part of theproperty which belongs to each of the co7owners

ral partition is alid and enforceable where no third persons are

inoledo 4n cases of oral partition# the actual possession of one of the

property is eidence that there was indeed oral partition'o 4n an oral partition under which the parties went into

possession# exercises acts of ownership# or otherwise partlyperformed the partition agreement# e%uity will confirm such

partition and in a proper case# decree title in accordance withthe possession in seeralty

Art 472 The cre$itors or assignees o" the coowners may ta-e #art inthe $i'ision o" the thing owne$ in common an$ o!ect to its eing

e""ecte$ witho,t their conc,rrence& =,t they cannot im#,gn any#artition alrea$y e/ec,te$+ ,nless there has een "ra,$+ or in case itwas ma$e notwithstan$ing a "ormal o##osition #resente$ to #re'ent it+witho,t #re!,$ice to the right o" the $etor or assignor to maintain its'ali$ity&

/he law does not expressly re%uire that preious notice of the proposed

partition be gien to the creditors and assignees' 6ut as they aregranted the right to participate in the partition# they hae also the right tobe notified thereof' 4n the absence of notice# the partition will not bebinding on them'

$ules8

o 4f no notice is gien# the creditors or assignees may %uestion

the partition already made5o 4f notice is gien# it is their duty to appear and ma9e 9nown

their position5 they may concur with the proposed partition orobject to it5 and

o /hey cannot impugn a partition already executed or

implemented unless8

/here has been fraud# whether or not notice wasgien# and whether or not formal opposition waspresented# or

/he partition was made notwithstanding that formalopposition was presented to preent it# een if therehas been no fraud'

Debtor or assignor has always the right to show the alidity of the

partition'

Art 475


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PROPERTY NOTES

co7owners who shall indemnify the others or by its sale with theproceeds thereof diided among the co7owners

ale may be priate# public# and purchases may be a co7owner or a

third person

Art @K applies when8

o /hing indiisible

o )o7owners cant agree that it be allotted to one of them# who

shall indemnify the otherso o# ibenta na lang7

Art 477 The #artition o" a thing owne$ in common shall not #re!,$icethir$ #ersons who shall retain the rights o" mortgage+ ser'it,$e+ or anyother real rights elonging to them e"ore the $i'ision was ma$e&Personal rights #ertaining to thir$ #ersons against the coownershi#shall also remain in "orce+ notwithstan$ing the #artition&

/hird persons# refer to all those with real r ights# such as mortgage and

seritude oer the thing owned in common or with personal rightsagainst the co7owners who had no participation whateer in the partition

Art *99 C#on #artition+ there shall e a m,t,al acco,nting "or ene"itsrecei'e$ an$ reim,rsements "or e/#enses ma$e& Li-ewise+ each coowner shall #ay "or $amages ca,se$ y reason o" his negligence or"ra,$&

Art *91 E'ery coowner shall+ a"ter #artition+ e liale "or $e"ects o" titlean$ 6,ality o" the #ortion assigne$ to each o" the other coowners&

What are the obligations of the co7owners upon partition? !A$4W"&' Mutual accounting for the benefits receied !because the fruits and

other benefits of the thing belong to all the co7owners"

*' Mutual reimbursement for expenses !necessary expenses# taxes# etc"-' 4ndemnity for damages caused by reason of negligence or fraud@' $eciprocal warranty for defects of title or %uality of the portion assigned

to a co7owner !land allotted to a co7owner belongs to a third party# or theproperty is of inferior %uality"

a' Atty Abrenica said that in practice# the remedy in this situationis to diide the remaining property and just gie it to the oneprejudiced

T;E :ON8OMINICM A:T A condominium is an

o 4nterest in real property consisting of

A separate interest in a unit in a residential# industrial#

or commercial building# and An undiided interest in common directly or indirectly

in the land on which it is located and in other commonareas of the building'

/wo important documents8 Master Deed and Declaration of $estrictions

Coreigners can own up to @;O of the entire condominium corporation

!so if the condominium has &;; units# foreigners can own up to @; units"

03roject1 means the entire parcel of real property diided or to be

diided in condominiums# including all structures thereon

0)ommon areas1 !meaning the entire project excepting all units

separately granted or held or resered" are owned by the condominiumcorporation

03riate units1 !meaning the a part of the condo project intended for any

type of independent use or ownership" are owned by the unit ownerso (nit owners are shareholders in the condominium

o 4f you sell your unit to someone else# you lose your status as a

shareholder in the condominium corporation

)ondominium )ertificate of /itle is whats gien !as opposed to a )/

or /)/"

TITLE V POSSESSION:;APTER ONEPOSSESSION AN8 T;E GIN8S T;EREO3

Art *). Possession is the hol$ing o" a thing or the en!oyment o" a right&

)oncept of possession

As a distinct legal concept# possession is the holding of a thing or the

enjoyment of a right with the intention to possess in ones own right

wnership and possession distinguished

/here is ownership when a thing pertaining to one person is completely

subjected to his will in a manner not prohibited by law and consistentwith the rights of others' 4t confers certain right to the owner !right to

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PROPERTY NOTES

enjoy the thing owned and the right to exclude other persons frompossession thereof"

n the other hand# possession is defined as the holding of a thing or the

enjoyment of a right' /o possess means to actually and physicallyoccupy a thing with or without a right'

3ossession may be in the concept of an owner or in the concept of a

holder'

A person may be declared owner but he may not be entitled to

possession' !As in when the possession is in the hands of a tenant"

A judgment for ownership does not necessarily include possession as a

necessary incident'

ust as possession is not a definite proof of ownership# neither is non7

possession inconsistent with ownership'

What are the elements of possession?&' Eolding or control of a thing or right

3ossession always implies the element of corpus or occupation#

whether in ones own name or another !except in cases in Art


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PROPERTY NOTES

be8o Jus possidendi, or right to possession which is incidental

to and included in the right of ownership5oro Jus possessionis or right o% possession independent of

and apart from the right of ownership'

3ossession as a fact&' /he face of possession gies rise to certain rights and presumptions'

/hus a person has a right to be respected in his possession# and

should he be disturbed therein# he shall be protected or restored tosaid possession'

A possessor has in his faor the presumption that his possession is

lawful 2 that he is the owner or has been gien the right ofpossession by the owner' Ee who would disturb a possessor mustshow either ownership or a better possessory right'

*' 3ossession is not a definitie proof of ownership nor is non7possessioninconsistent therewith' 3ossession# howeer# may create ownershipeither by occupation or by ac%uisitie prescription'

)lasses of possession&' 3ossession in ones own name or in the name of another !Art


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PROPERTY NOTES

agent who receies the proceeds of sales of goodsdeliered to him in agency by his principal'

)ase doctrines

4n the grammatical sense# to possess means to hae# to actually and

physically occupy a thing# with or without a right' /wo things areparamount in possession 2

o there must be occupancy# apprehension or ta9ing# and

o there must be intent to possess !animus possidendi"' !u

3acleb"

3ossession always includes the idea of occupation' 4t is not necessary

that the person in possession should himself be the occupant' /heoccupancy can be held by another in his name' without occupancy#there is no possession' !u 3acleb"

Art *)* The #ossession o" things or rights may e ha$ in one o" twoconce#ts% either in the conce#t o" owner+ or in that o" the hol$er o" the

thing or right to -ee# or en!oy it+ the ownershi# #ertaining to another#erson&

)oncept in which possession may be had

)oncept# as contemplated in the proision# does not mean the opinion#

attitude or belief of the possessor# but of the others# generally in iew ofthe circumstances which precede and accompany the possession'

/hus# possession in the concept of owner is distinguished from

possession in good faith'

/his 9ind of possession is also referred as to aderse possession that

may ripen into ownership under Article


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PROPERTY NOTES

or possession of the property for which the taxes hae been paid' 4n theabsence of actual public and aderse possession# the declaration of theland for tax purposes does not proe ownership' !)e%uena 6olante"

Art *)0 ;e is $eeme$ a #ossessor in goo$ "aith who is not aware that

there e/ists in his title or mo$e o" ac6,isition any "law whichin'ali$ates it&

;e is $eeme$ a #ossessor in a$ "aith who #ossesses in anycase contrary to the "oregoing&

Mista-e ,#on a $o,t",l or $i""ic,lt 6,estion o" law may e theasis o" goo$ "aith&

Define possessor in good faith and in bad faith

A possessor in good faith !#uena %e)is one who is not aware that there

exists in his title or mode of ac%uisition any flaw which inalidates it'

A possessor in bad faith !mala %e) is one who possesses in any case

contrary to the foregoing5 he is aware that there exists in his title ormode of ac%uisition a flaw which inalidates it'

/his article presupposes that the there exists a flaw in the title or modeof ac%uisition of the possessor who is either aware or not aware of it'

4f there is no flaw# there can be no issue regarding good or bad faith'

Good faith is always presumed# and upon him who alleges bad faith on

the part of the possessor rests the burden of proof'

/he distinction is importance principally in connection with the receipt of

fruits and the payment of expenses and improements and theac%uisition of ownership by prescription'

/he distinction is immaterial in the exercise of the right to recoer under

Article


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PROPERTY NOTES

was rejected by the )ode )ommission'

)ase doctrines

/he possessor with a /orrens /itle who is not aware of any flaw in his

title which inalidates it is considered a possessor in good faith and his

possession does not lose this character except in the case and from themoment his /orrens /itle is declared null and oid by final judgment ofthe )ourts' !Dion $odrigue"

/he defense of haing purchased the property in good faith may be

aailed of only where registered land is inoled and the buyer hadrelied in good faith on the clear title of the registered owner' !Daclag Macahilig"

Art *)2 >oo$ "aith is always #res,me$+ an$ ,#on him who allege$ a$"aith on the #art o" a #ossessor rests the ,r$en o" #roo"&

3resumption of good faith

/his article establishes the presumption of good faith5 it does not saythat good faith exists# but that it is presumed'

/he presumption is just because possession is the outward sign of

ownership' 4t is to be presumed that the right of the possessor is well7founded'

.ery person is presumed to be honest until the contrary is shown'

6ut note that for the purposes of prescription# just title must be proed5 it

is neer presumed'

Art *)5 Possession ac6,ire$ in goo$ "aith $oes not lose this charactere/ce#t in the case an$ "rom the moment "acts e/ist which show thatthe #ossessor is not ,naware that he #ossesses the thing im#ro#erlyor wrong",lly&

)essation of good faith during possession

3ossession which begins in good faith is presumed to continue in good

faith until the possessor ac%uires 9nowledge of facts showing a defector wea9ness in his title'

/he law spea9s of 0facts1 in place of the word 0acts1# the former being

broader than the latter' /hus# it is immaterial whether the 0facts1 fromwhich bad faith can be deduced inole acts of the possessor himself orof some other person or any extraneous eidence' 6ut the existence of

the facts mentioned in the article must be proed'

6ad faith begins or good faith is interrupted from the time the possessor

becomes aware 0that the he possesses the thing improperly orwrongfully#1 not from the time possession was ac%uired'

4n the absence of other facts showing the possessors 9nowledge of

defect in his title# good faith is interrupted from the receipt or serice ofjudicial summons'

o Crom the serice of judicial summons# there exists an act

which the possessor 9nows that his right is not secure# thatsomeone disputes it# and that he may yet lose it5 and if thecourt orders that restitution be made# that time determines allthe legal conse%uences of the interruption# the time when thepossession in good faith ceases to be so before the law'

o /he filing of a case alleging bad faith on the part of a endee

gies cause or cessation of good faith'

)ase doctrines

When a contract of sale is oid# the possessor is entitled to 9eep the

fruits during the period for which it held the property in good faith# whichgood faith ceases when an action to recoer possession of the propertyis filed against him and he is sered summons therefor' !D63 )A"

Art *)7 It is #res,me$ that #ossession contin,es to e en!oye$ in thesame character in which it was ac6,ire$+ ,ntil the contrary is #ro'en&

)ontinuity of the character of the possession

/he character or possession !good faith or bad faith" is presumed to

continue until the contrary is proed

=o one can# by his sole will nor by the mere lapse of t ime# change the

cause of his possession'

3resumption on the continuance of possession /here are other presumption aside from Articles


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PROPERTY NOTES

I' 3ossession during interening period !Art &&-"

)ase doctrines

3ossession# to constitute the foundation of a prescriptie right# must be

possession under a claim of title# that is# it must be aderse' !6ogo7

Medellin )A" An ac9nowledgment of the easement is an admission that the property

belongs to another' 4t gies the holder of the easement an incorporealinterest on the land but grants no title thereto' !6ogo )A"

Mere material possession of land is not aderse possession as against

the owner and is insufficient to est title# unless such possession isaccompanied by the intent to possess as an owner' !6ogo )A"

Art *.9 Only things an$ rights which are s,sce#tile o" einga##ro#riate$ may e the o!ect o" #ossession&a

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