PROPERTY CIVIL LAW CLASSIFICATION OF PROPERTY Classification of Property Property, defined Property refers to any thing which is already appropriated or possessed by man. A thing is any object that exists and can satisfy human wants and needs. However, not all things can be appropriated and such cannot be considered as “property.” It is more comprehensive as a concept. Characteristics of property a. Satisfaction of certain human needs b. Can be possessed, appropriated, acquired or defended Requisites of property 1. Utility or satisfaction of certain human needs 2. Substantivity 3. Appropriability I. IMMOVABLES AND MOVABLES A. IMMOVABLES OR REAL PROPERTY [La-T-A-S-M-Aho-Fe-M-Do-Co] 1. Land, buildings, roads and constructions of all kinds adhered to the soil. 2. Trees, plants, and growing fruits, while they are attached to the land or form an integral part of an immovable; 3. Everything Attached to an immovable in a fixed manner, in such a way that it cannot be separated therefrom without breaking the material or deterioration of the object; 4. Statues, reliefs, paintings or other objects for use or ornamentation, placed in buildings or on lands by the owner of the immovable in such a manner that it reveals the intention to attach them permanently to the tenements; 5. Machinery, receptacles, instruments or implements intended by the owner of the tenement for an industry or works which may be carried out in a building or on a piece of land, and which tend directly to meet the needs of the said industry or works; 6. Animal houses, pigeon-houses, beehives, fish ponds or breeding places of similar nature, in case their owner has placed them or preserves them with the intention to have them permanently attached to the land, and forming a permanent part of it; the animals in these places are included; 7. Fertilizer actually used on a piece of land; 8. Mines, quarries, and slag cumps, while the matter thereof forms part of the bed, and waters either running or stagnant; 9. Docks and structures which, though floating, are intended by their nature and object to remain at a fixed place on a river, lake or coast; 10. Contracts for public works, and servitudes and other real rights over immovable property. 1. Lands and Buildings [Art. 415, par. 1] Buildings are always immovable under the Code. The mere fact that the parties to a contract treat the building as separate does not change its character as immovable property [Punsalan v. Lacsamana, GR No. L-55729 (1983)]. A building is immovable provided it is more or less of a permanent structure independent of and regardless of the ownership of the land on which it is erected since the law makes no distinction [De Leon]. 241 BOC 2024 PROPERTY CIVIL LAW Art. 415 enumerates lands and buildings separately. This can only mean that a building, by itself, and separate from land, is considered an immovable [Soriano v. Spouses Galit, G.R. No. 156295 (1983)]. This classification holds true regardless of the fact that the house may be situated on land belonging to a different owner. But once the house is demolished, as in this case, it ceases to exist as such and hence its character as an immovable likewise ceases [Bicerra v. Teneza, GR No. L16218 (1962)]. Exception If contracting parties stipulate that a real property be considered personal, they are consequently estopped from claiming otherwise. However, third persons acting in good faith are not affected by the stipulation characterizing the subject machinery as personal [Serg’s Products v. PCI Leasing, GR No. 137705 (2000)]. Exceptions are quatter shanties, nipa huts, barong-barong, which are not buildings but constructions, and the like. Therefore, so long as the structure is not adhered to the soil, the structures do not fall under Art 415, par. 1, last phrase. 2. Roads [Art. 415, par. 1] Roads are immovables regardless of whether they are public or private. 3. Constructions of all kinds adhered to the soil [Art. 415, par. 1] The Code does not require that the attachment or incorporation be made by the owner of the land, the only criterion being the union or incorporation with the soil [Navarro v. Pineda, G.R. No. L-18456 (1963)]. 4. Trees and plants while attached to the land are immovable [Art. 415, par. 2] Exception When trees and plants are removed or detached from the land and put in pots (with soil in the pots), they are classified as movables because they can then be transported from place to place. Besides, potted trees and plants are no longer covered by Art. 415, par. 2 which requires attachment to the land. Therefore, movable by virtue of Art. 416 pars. 1 and 4. 5. Growing crops while attached to the land or form an integral part of an immovable Exception Those mobilized by anticipation. Growing fruits forming an integral part of the tree (immovable) become mobilized by anticipation or classified as movable or personal property when the same are marked (covered in plastic bags) or identified for the harvest time in the future. This classification is also recognized under the Chattel Mortgage Law – therefore covered by Art. 416, par. 2 as Movable Property [Sibal v. Valdez, G.R. No. L-262278 (1927)]. 6. Mines, quarries, and slag dumps, while matter forms part of the bed [Art. 415, par. 8] Like Trees and Plants that must be attached to the land (not adhered to the soil), the “matter” referred to are the minerals – metallic, non-metallic, in large or miniscule quantities such as those extracted in mines and quarries, and mine waste or slag dumps – which while forming “part of the bed” are immovable by nature. 242 BOC 2024 PROPERTY CIVIL LAW The word “bed” in this context may refer to the river bed where gold nuggets and grains, and sand and gravel are located. Once the “matter” from the mines, quarries and slag dumps are removed from the bed, they become movable. 9. Statues, reliefs, paintings, or other objects for use or ornamentation, placed in buildings or on land [Art. 415, par. 4] Requisites 1. Placed by the owner of the immovable (not the object) or his agent; 2. Intent to attach them Permanently to the tenements [Art. 415, par. 4, Civil Code] 7. Waters, either running or stagnant [Art. 415, par. 8] The word used is “waters” with an “s” because “waters” when put in containers or receptacles are referred to as “water” – without the “s” become movable property. Note: Trees and plants are immovable by nature if they are the spontaneous products of the soil. 8. Everything attached to an immovable in a fixed manner [Art. 415, par. 3] Note: When the improvement is introduced by a lessee or usufructuary, the object may not be considered immovable unless the person acts as agent of the owner. 10.Animal houses, pigeon houses, beehives, fishponds, or breeding places of similar nature [Art. 415, par. 6] This includes the animals found therein. Requisites Requisites 1. Intent to attach permanently is essential. Once the movable property is permanently attached to an immovable, the movable property becomes an immovable property if requisite no. 2 also exists: 2. The movable property will break or deteriorate if it is subsequently detached from the immovable property [Art. 415, par. 3, Civil Code]. 1. Placed by the owner of the immovable (not the object) or his agent; 2. Intent to attach them permanently to the tenements [Art. 415, par. 6, Civil Code] 3. Structure must permanently form part of the land and so intended by the owner [De Leon] Note: Cages are not included and are considered movables since they can be moved from one place to another. Paragraphs 3 and 4 of Article 415, distinguished Paragraph 3 Paragraph 4 (3) attached (4) Statues, reliefs, paintings or other 243 BOC 2024 Everything to an PROPERTY immovable in a fixed manner; CIVIL LAW objects for use or ornamentation, placed in buildings or on lands by the owner of the immovable in such a manner that it reveals the intention to attach them permanently to the tenements; Cannot be separated from the immovable without breaking or deterioration. Can be separated from the immovable without breaking or deterioration Need not be placed by the owner or his agent. Must be placed by the owner of the immovable, or by his agent. 11.Machinery, receptacles, instruments, or implements [Art. 415, par. 5] Machinery is immobilized if placed by the owner of a plant or property; not so if placed by a tenant or usufructuary or any person having any temporary right [Davao Sawmill Co. v. Castillo, GR No. L40411 (1935)]. Equipment destined only to repair or service a transportation business may not be deemed real property [Mindanao Bus v. City Assessor, GR No. L-17870 (1962)]. Requisites 1. Industry or works must be Carried on inside the building or on the land; 2. Placed by the Owner of the building or property or his agent; 3. Machines must be Essential and principal elements in carrying out the industry; and 4. Machines must tend Directly to meet the needs of said industry or works (adaptability) [Art. 415, par. 5, Civil Code]. Note: For real property tax purposes, the definition of Machinery under the Local Government Code is controlling. Therefore, road equipment and mini haulers in a palm oil plantation which are actually, directly, and exclusively used in the operation of the business are classified as machinery subject to real property tax [Provincial Assessor of Agusan del Sur v. Filipinas Palm Oil Plantation, G.R. No. 183416 (2016)]. 12.Fertilizer actually used on a piece of land [Art. 415, par. 7] Fertilizers still in the barn or still wrapped inside some newspaper even though already on the ground are still movables. 13.Docks and structures which, though floating, are intended by their nature and object to remain at a fixed place on a river, lake, or coast [Art. 415, par. 9] Docks and structures which, though floating, are intended by their nature and object to remain at a fixed place on a river, lake, or coast are considered immovable [Art. 415, par. 9, Civil Code]. Note: A boathouse which, by its nature, is a vessel and, therefore, a personal property but, if it is tied to the shore and used as a residence, and since it floats on waters which is immovable, is considered real property [Capitol Wireless v. Prov. Treasurer of Batangas et al., G.R. No. 180110 (2016)]. 244 BOC 2024 PROPERTY CIVIL LAW Vessels are considered personal property [Phil Refining Co. v. Jarque, G.R. No. 41506 (1935); definition of vessel as used for water transportation denotes movement – P.D. 474 s. 1974]. B. MOVABLES PROPERTY OR PERSONAL Movables Under Articles 416 and 417 1. Those susceptible of appropriation which are not included in Art. 415. 2. Real property considered by a special provision of law as personalty. 3. Forces of nature which are brought under the control of science. 4. All things which can be transported from place to place without impairment of the real property to which they are fixed. 5. Obligations and actions which have for their object movables or demandable sums; and 6. Shares of stock of agricultural, commercial, and industrial entities, although they have real estate. 7. Other incorporeal personal property. Examples are intellectual property such as copyrights, patents, trademarks, rights to invention, etc. Intellectual creation is recognized in the Civil Code as a mode of acquiring ownership. [Art. 721, Civil Code] Movables Designated By a Special Provision of Law Growing crops are considered immovable under Art. 415, par. 2 but personal property under the Spanish Mortgage Law, which provides that the mortgage of a piece of land does not include the fruits existing thereon. Mobilization by anticipation is a right on the growing crop, to gather or harvest them in advance, treating them as movables. Likewise, crops raised on leased land do not form part of the immovable [Sibal v. Valdes, G.R. No. L-26278, (1927)]. The small 2-storey house made of light materials (barong-barong) is a building or a construction adhered to the soil therefore immovable property under Art. 415 par. 1, but it was considered movable between the parties because of the chattel mortgage law and the law on contracts - binding only as movable property between the parties of the chattel mortgage contract. With respect to third persons, esp. in execution proceedings, the house is immovable property [Navarro v. Pineda, Reyes, et al., G.R. No. L-18456 (1963)]. Forces of Nature Electricity, gas, rays, heat, light, oxygen, atomic energy, water, and power, among others, are forces of nature. Electricity, the same as gas, is an article bought and sold like other personal property and is capable of appropriation by another [United States v. Carlos, GR No. 6295 (1911)]. Special Kinds of Personal Property The author, composer, painter, sculptor, and inventor have rights over their works. These rights are personal property. With regard to the nature of the property mortgages, which is one-half interest in the business, such interest is a personal property capable of appropriation and not included in the enumeration of real properties in the Civil Code, and may be the subject of mortgage [Strochecker v. Ramirez, G.R. No. 18700 (1922)]. II. PUBLIC DOMINION; PATRIMONIAL; PRIVATE Property is either of: 1. Public dominion; or 245 BOC 2024 PROPERTY CIVIL LAW 2. Private ownership [Art. 419, Civil Code] Note: Churches and other consecrated objects are outside the commerce of man; they are considered neither public nor private property [Barlin v. Ramirez, G.R. No. L-2832 (1906)]. A. PROPERTY DOMINION OF PUBLIC Property of public dominion is owned by the public in general, in that not even the State or subdivisions of the state may make them the object of commerce as long as they remain properties for public use. Property of public dominion is outside the commerce of man [Republic v. Pasig Rizal Co., Inc., G.R. No. 213207 (2022)]. Thus: 1. It is not alienable or disposable; 2. It is not subject to registration under PD 1529 (Property Registration Decree) and cannot be the subject of a Torrens title; 3. It is not susceptible to prescription [Art. 1113, Civil Code]; 4. It cannot be leased, sold, or otherwise be the object of a contract; 5. It is not subject to attachment and execution; and 6. It cannot be burdened by any voluntary easements [Alolino v. Flores, G.R. No. 198774 (2016)] Public Dominion As enumerated by Art. 420: 1. Property intended for public use 2. Property intended for some specific public service 3. Property intended for the development of the national wealth Note: In order to be classified as property of public dominion, an intention to devote it to public use or to public service is sufficient and it is not necessary that it must actually be used as such. Public Domain Regalian Doctrine All lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural resources are owned by the State. With the exception of agricultural lands all other natural resources shall not be alienated (Sec. 2, Art. XII, 1987 Constitution). Note: The Constitution allows the State to enter into co-production, joint ventures, or production-sharing agreements with private individuals or corporations for their exploration, development, and utilization. Public Lands Public Land Act, Sec. 2 provides that the statute applies to lands of the public domain. B. PATRIMONIAL PROPERTY Property owned by the State and its political subdivisions in their proprietary and private capacity, and all property of the State not included in Art. 420 of the Civil Code [Arts. 421-424, Civil Code]. Unlike property of public dominion, patrimonial property is subject to prescription. To be subject considered as patrimonial property: 1. the land must be classified as alienable and disposable; and 2. it must be expressly declared by the State that it is no longer intended for public use [Republic v. Ching, G.R. No. 186166 (2010)]. Note: In P.D. 1529 (Property Registration Decree) Section 14(2), the alienable and disposable character of the land, as well as its declaration as patrimonial property of the State, 246 BOC 2024 PROPERTY CIVIL LAW must exist at the beginning of the relevant period of possession [Republic v. Philippine National Police, G.R. No. 198277 (2021)] The sewage system is a property of the city, purchased with private funds and not devoted to public use (it is for profit.) It is therefore patrimonial under the Civil Code. Nor can the system be considered “public works for public service under art. 424 because such classification is qualified by ejusdem generis; it must be of the same character as the preceding items [City of Cebu v. NAWASA, G.R. No. 12892 (1960)]. Note: The change in classification from public dominion to patrimonial property enables acquisition by private persons, natural or juridical. Patrimonial property may therefore be the object of private commercial transactions like usufruct, lease, or sale. However, the transition from public dominion to patrimonial property is not immediately executory. There must be a formal declaration/positive act by the President , his alter egos or the legislature that such property is no longer needed for public use or service before it changes its classification to patrimonial. Above declaration or act declaring the land as alienable and disposable is a requirement, which could be in the form of: a) Executive Order; b) Administrative Action; c) Statute; or d) A court judgment declaring the change of classification. Distinctions between Public Lands and Government Lands a. Public lands involve the public domain and cannot include lands owned by government except for those open to the public for sale or acquisition; b. Government lands include public lands and other properties which are being used or reserved for public use including patrimonial lands. C. PRIVATE PROPERTY All properties not belonging to the State or its political subdivisions are properties of private ownership pertaining to private persons, either individually or collection (Art. 425.) All lands not otherwise appearing to be clearly within private ownership are presumed to be owned by the State. OWNERSHIP Ownership I. RIGHTS INCLUDED IN OWNERSHIP Ownership Ownership may be exercised over things or rights [Art. 427, Civil Code]. The owner has the right to enjoy and dispose of the thing, without other limitations than those established by law. The owner also has a right of action against the holder and possessor of the thing in order to recover it [Art. 428, Civil Code]. Possession is an essential attribute of ownership. Whoever owns the property has the right to possess it. Adjudication of ownership includes the delivery of possession if the defeated party has not shown any right to possess the land independently of her rejected claim of ownership [Pascual vs. Daquioag, GR No. 162063 (2014)]. Right to Hidden Treasure Hidden treasure belongs to the owner of the land, building, or other property where it is found. In the interest of science or arts, the State may acquire the treasure subject to just compensation [Art. 438, Civil Code]. 247 BOC 2024 PROPERTY CIVIL LAW Right to Self-Help with the use of immediate Reasonable Force Against Trespassers and Squatters The owner or lawful possessor of a thing has the right to exclude any person from the enjoyment and disposal thereof. He may use reasonable force necessary to repel or prevent an actual or threatened unlawful physical invasion or usurpation of his property [Art. 429, Civil Code]. Exception State of Necessity; The owner has no right to prohibit the interference of another if it is necessary to avert an imminent danger and threatened damage much greater than the damage arising from the interference [Art. 432, Civil Code]. Court action if occupation already established by the intruder. If no immediate action was taken by the owner against the intruder who has occupied the property, the owner must go to court. Actual possession under claim of ownership raises a disputable presumption of ownership. The true owner must resort to judicial process for the recovery of the property [Art. 430, Civil Code]. The right of action based on ownership to recover property from the holder and possessor is an action for reconveyance or accion reivindicatoria. Police Power to condemn property. When the property is condemned in the interest of health, safety and security, the owner is not entitled to just compensation [Art. 436, Civil Code]. Eminent Domain just compensation. Manner of taking may be through negotiated sale (interest included only if stipulated) or if the purchase price is contested, through expropriation [RP-DPWH v. Gamir-Diaz Heirs, G.R. No. 218732 (2018)]. Seven Rights of Ownership 1. Jus Possidendi (right to possess) ● Right to hold the thing and does not necessarily include the right to use (e.g., contract of deposit) 2. Jus Utendi (right to use and enjoy) ● Includes the right to exclude any person from the enjoyment and disposal thereof ● Limitation: use in such a manner as not to injure the rights of a third person 3. Jus Fruendi (right to the fruits) ● Right to the fruits ● Kinds of Fruits: i. Natural ii. Industrial iii. Civil 4. Jus Abutendi (right to consume) ● Includes the right to transform or abuse or destroy by its use 5. Jus Disponendi (right to dispose) ● Also includes the right not to dispose, or to alienate 6. Jus Vindicandi (right to vindicate or recover) ● Includes the right of action against the holder and possessor of the thing in order to recover it b. Must resort to judicial process for the recovery of the property 7. Jus Accesionis (right to accessories) Note: Some commentaries include an eight right in the enumeration; Jus Tresauris or the right to hidden treasure. The State has the right to take private property for public use (road building or widening) with 248 BOC 2024 PROPERTY II. CIVIL LAW LIMITATIONS ON THE RIGHT OF OWNERSHIP 1. Those arising from conflicts of private rights (e.g., those which take place in accession continua) 2. Those imposed by law (e.g., Legal easements) 3. Those imposed by the owner himself (e.g., Voluntary easement, pledge, lease) 4. Those imposed by the grantor of the property on the grantee a. by contract (e.g., donation) b. by last will 5. Those imposed in general by the State [Art. 435, Civil Code] a. Power of eminent domain b. Police power c. Power of taxation 6. Specific Limitations ● Aliens have no right to acquire any public or private agricultural, commercial, or residential lands in the Philippines. Aliens may only acquire such lands by hereditary succession [Krivenko v. Registry of Deeds, G.R. No. L-630 (1947)]. ● The owner of a thing has no right to prohibit the interference of another with the same, if the interference is necessary to avert an imminent danger and the threatened damage, compared to the damage arising to the owner from the interference, is much greater. The owner may demand from the person benefited, indemnity for the damage to him [Art. 432, Civil Code]. ● Nuisances [Art. 694, Civil Code] RIGHT OF ACCESSION, MOVABLES AND IMMOVABLES Right of Accession The ownership of property gives the right by accession to everything which is produced thereby (accession discreta), or which is incorporated or attached thereto, either naturally or artificially (accession continua) [Art. 440, Civil Code]. To the owner belongs: 1. Natural fruits, spontaneous products of the soil, and the young and other products of animals [Art. 441, 442, Civil Code] 2. Industrial fruits are those produced by lands of any kind through cultivation or labor [Art. 441, 442, Civil Code]. 3. Civil fruits are rents of buildings, the price of leases of lands and other property and the amount of perpetual or life annuities or other similar income [Art. 441, 442, Civil Code]. Right of Accession with Respect To Immovable property Whatever is built, planted or sown on the land of another and the improvements or repairs made thereon, belong to the owner of the land [Art. 445, Civil Code]. Presumption of Ownership in Favor Of Owner All works, sowing, and planting are presumed made by the owner and at his expense until the contrary is proved [Art. 446, Civil Code]. There must be two properties owned by two different persons. There is no accession if there is only one owner. 249 BOC 2024 PROPERTY CIVIL LAW The following discussion assumes there are three persons with three different undertakings or rights, and who own separate properties: Land Owner Land Builder/ Planter Labor When a LandOwner Builder/Planter/Sower (LO-BPS) makes Constructions/Plantings with Materials of Another (OM) SupplierOwner LO-BPS Owner of Materials GF GF LO-BPS can acquire the materials provided there is full payment. OM is entitled to full payment or OM may remove the materials provided there is no substantial injury to work done. GF BF LO-BPS can acquire the materials for free and will be entitled to damages due to defects or inferior quality of the materials OM loses the materials and will be liable for damages due to defects or inferior quality of the materials BF GF LO-BPS can acquire the materials provided there is full payment plus damages. OM is entitled to full payment for the materials plus damages or OM may remove the materials even if there is substantial injury to the work done plus damages. BF BF Materials Kinds of Expenses 1. Necessary incurred for the preservation of the thing 2. Useful - increases the value or augments the income of the property 3. Luxurious - expenses for pure luxury or mere pleasure Rules 1. Necessary expenses shall be refunded to every possessor; but only the possessor in good faith may retain the thing until he has been reimbursed therefor. 2. Useful expenses shall be refunded only to the possessor in good faith with the same right of retention, the person who has defeated him in the possession having the option of refunding the amount of the expenses or of paying the increase in value which the thing may have acquired by reason thereof [Art. 546, Civil Code]. 3. Expenses for pure luxury or mere pleasure shall not be refunded to the possessor in good faith; but he may remove the ornaments with which he has embellished the principal thing if it suffers no injury thereby, and if his successor in the possession does not prefer to refund the amount expended [Art. 548, Civil Code]. Same as when both are in good faith. 250 BOC 2024 PROPERTY CIVIL LAW Rights of the Builder/Planter/Sower (BPS) in relation to the Landowner (LO) If BPS cannot pay the rent, LO can eject BPS from the land LO Builder/Planter/Sower (BPS) GF GF GF BF Option 1: To acquire whatever has been built, planted or sown and payment of the necessary expenses, useful expenses and luxurious expenses (if the LO wants to get the luxurious improvements ). To receive payment for the value of the land and necessary, useful and luxurious expenses (if LO wants to get luxurious improvements) with right of retention without any obligation to pay rent until full payment. Option 1: To acquire whatever has been built, planted or sown for free but must pay necessary expenses and luxurious expenses (if LO wants to get the luxurious improvements ) plus damages. Loses whatever has been built, planted or sown and liable to pay damages. Option 2: To oblige the BP to buy the land or the S to pay rent unless the value of the land is considerably more than that of the building or trees. To purchase land at fair market value provided its value is not considerably more than that of the building or trees. Option 2: To oblige BP to buy land or S to pay rent plus damages regardless whether the value of the land is considerably more than that of the building or the trees. Obliged to pay for land or to pay rent plus damages regardless whether the value of the land is considerably more than that of the building or the trees. To remove the useful improvements provided it does not cause any injury (this is part of right of retention). If LO does not get the luxurious improvements, BPS can remove the same provided there is no injury to the land or the building. If BP cannot pay purchase price of the land or the S cannot pay the rent, LO can require BPS to remove whatever has been built, planted or sown. If the value of land is considerably more than that of the building or trees, BPS cannot be compelled to buy the land. In such case, BPS will pay reasonable rent. 251 BOC 2024 Entitled to payment for necessary expenses for preservation without right of retention. Not entitled to payment for useful expenses and cannot remove even if removal will not cause injury. If LO wants luxurious improvements, BPS is entitled to payment. The value of the luxurious improvements will be as of the date LO obtains possession. If LO does not want luxurious improvements, BPS may remove luxurious improvements if it will not cause injury. PROPERTY CIVIL LAW Option 3: To compel BPS to remove or demolish work done plus damages. Obliged to remove or demolish work done plus damages BF GF To pay for whatever has been built, planted or sown plus damages. Option 1: To receive payment for whatever has been built, planted or sown plus damages. ● Option 2: To remove whatever has been built, planted or sown even if it will cause injury plus damages. BPS has no option to acquire or buy the land BF Same as when both are in good faith. ● ● ● Art. 448 does not apply to cases which are governed by other provisions of law such as co-ownership, usufruct, agency, lease. The provision on indemnity in Art. 448 may be applied by analogy considering that the primary intent of the law is to avoid a state of forced co-ownership especially where the parties in the main agree that Arts. 448 and 546 are applicable and indemnity for the improvements may be paid although they differ as to the basis of the indemnity [Pecson vs. CA, G.R. No. 115814 (1995)]. ● I. ACCESSION DISCRETA The right to the ownership of the fruits produced by one’s property. General Rule The right of the owner to the products of his property or to the fruits of the same regardless if it is natural, industrial or civil fruits. Exceptions The landowner may not refuse both to pay for the building and to sell the land and instead seek to compel the owner of the building to remove the building from the land. He is entitled to such removal ONLY when, after having chosen to sell the land, the other party fails to pay for said land [Ignacio vs. Hilario, G.R. No. L-175 (1946)]. Should no other arrangement be agreed upon, the owner of the land does not automatically become the owner of the improvement [Filipinas Colleges, Inc. vs. Timbang, G.R. Nos. L-12812-13 (1959)]. Art. 448 is not applicable where a person constructs a house on his own land and then sells the land, not the building. [Coleongco vs. Regalado, G.R. No. L-4529 (1952)]. 252 BOC 2024 1. In usufruct: The usufructuary is entitled not only to the enjoyment of the property subject matter thereof but also to its fruits 2. In lease of rural lands: The lessee is entitled to the natural and industrial fruits of the thing leased while the lessor is entitled to civil fruits in the form of the rent paid by the lessee. 3. In antichresis: The creditor acquires the right to receive the fruits of an immovable loan from his debtor, with the obligation to apply them to the payment of the interest, if owing, and thereafter to the principal of his credit 4. In possession in good faith: A possessor in good faith is entitled to the fruits received by him before his possession is legally interrupted. PROPERTY CIVIL LAW 5. Fruits naturally falling: Fruits naturally falling upon adjacent land belong to the owner of the said land and not to the owner of the tree. unborn – beginning of maximum ordinary period of gestation. d. Fowls: from the time of incubation. 2. Pay expenses to third person possessor in good faith – He who receives the fruits has the obligation to pay the expenses incurred by a third person in the production, gathering and preservation of the fruits [Art. 443, Civil Code]. a. Exception: Owner does not have to pay if land is recovered before gathering from a possessor in bad faith. Note: But if the owner recovers land from possessor in bad faith, he may choose to acquire the land and he can make the possessor, builder, planter, sower account for the fruits that have been gathered, with the obligation to deduct the expenses for producing, harvesting and preservation of the fruits. Kinds of fruits 1. Natural fruits Spontaneous products of the soil that appear without the intervention of human labor, and the young and other products of animals. Requirement: It is necessary that there must be no human labor which has intervened in its generation. About the young and the animal products – If there is no stipulation as to who is the owner of the young, “the young belongs to the owner of the female parent.” 2. Industrial fruits Those produced by lands of any kind through cultivation and labor. Requirement: Must come from the soil. 3. Civil fruits Rents of buildings, price of leases of lands, and other property and the amount of perpetual or life annuities or other similar income [Art. 442, par. 3., Civil Code]. Applicable principles 1. Time of accrual depending on kind: a. Annuals: from the time seedlings appear on the ground. b. Perennials: from the time fruits actually appear on the plants. c. Young of animals: from the time they are in the womb, although II. ACCESSION CONTINUA The right of the owner to anything which is incorporated or attached to his property, whether the attachment is by reason of natural or artificial causes. A. ACCESSION INDUSTRIAL General Principles 253 BOC 2024 1. Accessory follows the principal. 2. The incorporation or union must be intimate that removal or separation cannot be effected without substantial injury to either or both. PROPERTY CIVIL LAW b. Avulsion 3. Good faith exonerates a person from punitive liability, but bad faith may give rise to dire consequences. 4. Bad faith of one party neutralizes the bad faith of the other. 5. No one should enrich himself at the expense of another. 6. He who is in bad faith may be penalized. Whenever the current of a river, creek or torrent segregates from an estate on its bank a known portion of land and transfers it to another estate, the owner of the land to which the segregated portion belonged retains the ownership of it, provided that he removes the same within two years [Art. 459, Civil Code]. B. ACCESSION NATURAL Requisites 1. Segregation and transfer must be caused by the current of a river, creek or torrent [Art. 459, Civil Code]. 2. Segregation and transfer must be sudden or abrupt [Canas v. Tuason, 5 Phil. 688 (1929)]. 3. The portion of land transported must be known or identifiable [Art. 459, Civil Code]. Accretion or accession involving lands adjacent to rivers, ponds or lagoons To the owners of lands adjoining the banks of rivers belong the accretion which they gradually receive from the effects of the current of the waters [Art. 457, Civil Code]. Riparian owners are owners of lands adjacent to river banks. Alluvion a. Alluvion The slow, gradual, almost imperceptible accretion or deposit of land mass attached to the river banks is called alluvion. Note that an alluvial deposit must be registered under the Torrens system by the riparian owner to prevent third parties from invoking prescription based on occupation [Delos Reyes v Kalibo, Aklan, G.R. No. 214587 (2018)]. Deposit of soil is gradual and imperceptible. Deposit of soil sudden or abrupt. Soil cannot identified. be Soil is identifiable and verifiable Deposit of soil belongs to the owner of the property to which it is attached. Deposit of soil belongs to the owner from whose property it was detached provided he removes the same within two years. Requisites 1. Deposit or accumulation of soil or sediment must be gradual and imperceptible [Art. 457, Civil Code]. 2. Accretion results from the effects or action of the current of the waters of the river [Gov’t of the Phils. v. Cabangis, 53 Phil. 112 (1929)]. 3. The land where accretion takes place must be adjacent to the bank of a river [Art. 457, Civil Code]. Avulsion is c. Uprooted Trees Refer to trees uprooted and carried away by the current of the waters [Art. 460, Civil Code]. Rule on uprooted trees The uprooted trees must be claimed by the original owner within six months; otherwise, he will lose ownership and the law will transfer 254 BOC 2024 PROPERTY CIVIL LAW e. Division of river into branches ownership to the owner of the land upon which the uprooted trees are found. Note: The law only requires the original owner to claim the uprooted trees within six months, unlike a chunk of land which the law requires the original owner to remove or take it back within two years to retain ownership. Three kinds of islands 1. Island formed under Art. 463 – The current of a river simply divides itself into branches, leaving a piece of land or part thereof isolated, thereby forming an island. Since the land has not been permanently invaded by the waters of the river, no natural expropriation will occur. 2. Island formed under Art. 464 – An island is formed on a sea, lake or navigable or floatable river through whatever cause. a. Clearly speaks of an addition to the property of the State since the island thus formed is expressly declared to be property of the latter. 3. Island formed under Art. 465 – An island formed in non-navigable or non-floatable rivers through successive accumulation of deposits in the same manner as alluvion. a. Formed in a navigable or floatable river → Art. 464, NCC applies here. b. Formed through a sudden and abrupt process due to segregation of identifiable portions of land from an estate → Art. 463, NCC applies here. d. Abandoned river bed due to change of course of river Requisites 1. River bed is abandoned and becomes dry land. 2. There must be a natural change in the course of the waters of the river. 3. The change must be abrupt or sudden. [Art. 461, Civil Code] Rights of Owner of Land Occupied by the New River Course 1. Right to old bed ipso facto in proportion to area lost; 2. Owner of adjoining land to old bed: right to acquire the same by paying its value – Value not to exceed the value of area occupied by new bed. [Art. 461, Civil Code] Whenever a river, changing its course by natural causes, opens a new bed through a private estate, this bed shall become of public dominion [Art. 462, Civil Code]. Requisites Owners will get back this previous property if the course of the river reverts to its original place [Sanchez v. Pascual, 11 Phil. 395 (1969)]. 255 BOC 2024 1. It shall belong to the owner of the margins or banks nearest to the island; 2. If the island is in the middle of the river, the same shall be owned by the owners of both margins, which case it shall be divided longitudinally in halves; or 3. If the island is more distant from one margin than from the other, the owner PROPERTY CIVIL LAW of the nearer margin shall be the sole owner. When they belong to the owners of the nearest margins of banks Rationale: The owners of the bank nearer the islands are in the best position to cultivate and attend to the exploitation of the same. 1. through successive accumulation of alluvial deposits; and 2. on non-navigable and non-floatable rivers. f. Formation of islands Islands Formed in Non-navigable or Non-Floatable Rivers Note: If the island is in the middle of the river, divide longitudinally in half. If it is nearer to one margin or bank, to the nearer riparian owner (Art. 465) 1. Belong to the owners of the margins or banks of the river nearest to each of them. 2. If equidistant, i.e. divided longitudinally in halves, each bank getting half [Art. 465, Civil Code] Note: If a landowner allows the sea or a lake to eat up his land completely, it is a case of natural expropriation and if the land later reappears, he does not regain ownership thereof [Republic v. Cabangis, G.R. No. L28379 (1929)]. Note: Riverbeds that dry up continue to belong to the State as its property of public dominion, unless there is an express law that provides that the dried up riverbeds should belong to some other person [Republic vs. Santos III, GR No. 160453 (2012)]. Test of navigability is whether it can be used as a highway of commerce, trade, and travel. When they belong to the State 1. Formed on the seas within the jurisdiction of the Philippines; 2. Formed on lakes; or 3. Formed on navigable or floatable rivers: a. Capable of affording a channel or passage for ships and vessels; b. Must be sufficient not only to float bancas and light boats, but also bigger watercraft; c. Deep enough to allow unobstructed movements of ships and vessels. [Art. 464, Civil Code] For movables a. Conjunction/Adjunction Conjunction Union, without bad faith, of two (2) movable things belonging to different owners in such a way that they form a single object. The owner of the principal thing acquires the accessory after indemnifying the owner of the latter for its value [Art. 466, Civil Code]. Adjunction The union of two (2) movable things belonging to different owners in such a way that they form a single object, but each of the component things preserves its value. General Rule: When the things united can be separated without injury, their respective owners may demand their separation [Art. 469(1), Civil Code]. Exception: The owner of the accessory may demand the separation of the things united even if there will be injury if the accessory is more precious than the principal thing [Art. 467 and 469(2), Civil Code]. 256 BOC 2024 PROPERTY CIVIL LAW b. the accessory be separated even if it would be necessary to destroy the principal. There is indemnity for damages in either case [Art. 470, par. 2, Civil Code] 3. Owner of Accessory in Good Faith Has a right to demand separation even though there may be damage if the accessory is more valuable. 4. Both in Bad Faith By analogy, they are treated as if they were both in good faith [Art. 453, Civil Code] 5. Either of the owners made the incorporation with the knowledge and without exception of the other Treat owners as if both acted in good faith [Art. 470, par. 3, Civil Code]. Note: Under Art. 469(2), an accessory is the thing united with the principal for the latter’s use, embellishment, or perfection. Requisites 1. There are two (2) movables belonging to different owners; 2. They are united in such a way that they form a single object; and 3. They are so inseparable that their separation would impair their nature or result in substantial injury to the other component. Rules in determining the principal thing 1. That which the other has been united as an ornament or for its use or perfection 2. If it cannot be determined by applying #1, the one with the greater value 3. If the values are equal, the one with greater volume 4. The thing of greater merits, taking into consideration all the pertinent legal provisions, as well as the comparative merits, utility and volume of their respective things [Arts. 467-468, Civil Code]. Ownership of New Object Formed by Adjunction b. Commixtion/Confusion 1. Mixture Two or more things belonging to different owners are combined with the respective identities of the component parts destroyed or lost. 2. Commixtion Mixture of solid things. 3. Confusion Mixture of liquid things. Rules 1. Owner of Principal Object in Good Faith Acquires the thing with the duty to indemnify the owner of the accessory [Art. 466, Civil Code] 2. Owner of Principal Object in Bad Faith The owner of the accessory has the right to choose between: a. receiving payment from the owner of the principal (value of the accessory; or 257 BOC 2024 1. Co-ownership based on proportional value if caused by: a. the will of the parties; b. chance, and injury will result if things are separated; or c. will of only one owner, but in good faith. 2. If caused by the will of one party in bad faith: a. He forfeits the thing belonging to him b. He must pay damages PROPERTY CIVIL LAW 3. If the mixture is made with the knowledge, but without the objection, of the other owner the parties will be considered as if they acted in good faith. 1. Appropriate the work to himself without paying the maker. Exception If the value of the work, for artistic or scientific reasons, is considerably more than that of the material [in this case, only option 2 is available]; or Note: Good faith in accession does not necessarily exclude negligence, which gives rise to damages [Art. 456, Civil Code]. 2. Demand the maker to indemnify him for the value of the material and damages. Legal effects ● Worker/maker in good faith (Art. 474) General Rule: The worker in good faith who employs the material of another to make a thing of a different kind appropriates the thing thus transformed after indemnifying the owner of the materials for the value of the material [Art. 474, par. 1, Civil Code]. ● Worker/maker made use of material without consent and without objection of owner Rights shall be determined as though both acted in good faith [Art. 474, par. 1, Civil Code]. Note: For the right of accession with regards to moveable property, sentimental value is duly appreciated [Art. 475, Civil Code]. Exception: If the material is more value or more precious than the new thing, the owner of the material may: 1. Appropriate the new thing to himself after paying indemnity for the of the work; or 2. Demand indemnity for the material [Art. 474, par. 2, Civil Code] QUIETING OF TITLE Quieting of Title ● ● If the owner of the material was in bad faith, the maker in good faith may: 1. Appropriate the new thing without paying the owner of the material; 2. Require the owner to pay him the value of the thing, his work, or labor, with damages [Applying Art. 470, par. 2] Worker/maker in bad faith (Art. 474, par. 3) If the maker was in bad faith, but the owner of the materials was in good faith, the owner may: Action for Quieting of Title Whenever there is a cloud on title to real property or any interest therein, by reason of any instrument, record, claim encumbrance or proceeding which is apparently valid or effective but is in truth and in fact invalid, ineffective, voidable or unenforceable, and may be prejudicial to said title, an action may be brought to remove such cloud or to quiet the title. An action may also be brought to prevent a cloud from being cast upon the title to real property or any interest therein [Art. 476, Civil Code]. 258 BOC 2024 PROPERTY I. CIVIL LAW REQUISITES OF AN ACTION TO QUIET TITLE [Art. 476-477, NCC] 1. Plaintiff has a legal or an equitable title to or interest in the real property subject of the action; and he need not be in possession of said property. ● Legal Title - denotes registered ownership ● Equitable Title - beneficial ownership [Art. 476, Civil Code] 2. There must be a cloud on such title. 3. Such cloud must be due to some instrument, record, claim, encumbrance or proceeding which is apparently valid or effective but is in truth invalid, ineffective, voidable or unenforceable, and is prejudicial to the plaintiff’s title. or terminated, or has been barred by extinctive prescription. 4. Such instrument, etc. may be prejudicial to the plaintiff's title. Purpose of Action To procure the cancellation, delivery, release of an instrument, encumbrance or claim, which constitutes a claim in the plaintiff’s title, and which may be used to injure or vex him in his enjoyment of his title. There exists a claim where the plaintiff declares his own claim and title, and at the same time indicates the source and nature of the defendant's claim, pointing out its defects and praying for the declaration of its invalidity. Action is preventive in nature. III. Purpose of Action To put an end to vexatious litigation with respect to the property involved. 1. Plaintiff has a title to a real property or interest therein; 2. Defendant is bent on creating a cloud on the title or interest therein. The danger must not be merely speculative or imaginary but imminent. 3. Unless the defendant is restrained or stopped, the title or interest of the plaintiff will be prejudiced or adversely affected. There exists a claim where the plaintiff asserts own claim and declares that the claim of the defendant is unfounded and calls on the defendant to justify his claim on the property for the court to determine the same. Action is remedial in nature. II. REQUISITES FOR EXISTENCE OF CLOUD ON TITLE [Art. 476 and 478, NCC] 1. There is an instrument, record, claim, encumbrance or proceeding. 2. The instrument, etc. is apparently valid or effective. 3. The instrument, etc. is in truth and in fact invalid, ineffective, voidable or unenforceable, or has been extinguished REQUISITES FOR AN ACTION TO PREVENT A CLOUD ON TITLE Purpose of Action To remove possible foundation of a future hostile claim. No present claim exists, but there is the imminent danger that the defendant creates a cloud on the title. Action is preventive in nature. 259 BOC 2024 PROPERTY CIVIL LAW When Inapplicable The action to prevent a cloud on title is inapplicable to: 1. Questions involving interpretation of documents; 2. Mere written or oral assertions of claim, except if made in a legal proceeding or asserts that an instrument or entry in plaintiff’s favor is not what it purports to be; 3. Boundary disputes; 4. Deeds by strangers to the title unless purporting to convey the property of the plaintiff; 5. Instruments invalid on their face; or 6. Cases where the validity of the instrument involves a pure question of law. Plaintiff must return to the defendant all benefits he may have received from the latter, or reimburse him for expenses that may have redounded to his benefit [Art. 479, Civil Code]. General Rule An action to quiet title applies only to real property. declaration of his rights or duties, thereunder [Bar Matter No. 803, 17 February 1998]. IV. PRESCRIPTION NON-PRESCRIPTION ACTION OR OF 1. If the plaintiff is in possession of the property – action does not prescribe. 2. If plaintiff is not in possession of property a. Plaintiff is a possessor with real right – action prescribes in 10 years. b. Plaintiff is owner of the property – action prescribes in 30 years. An action to quiet title may be defeated by claim of ordinary or extraordinary acquisitive prescription by the defendant. The possession of the actual possessor must be respected during the pendency of the case for quieting of title [Balbecino v. Judge Ortega, G.R. No. L-14231, April 28, 1962]. Exception Except to some personal properties like vessels or stock certificates which partake of the nature of real property, or when they are considered as real property because of special registration requirements. Who May File Any person interested under a deed, will, contract or other written instrument, or whose rights are affected by a statute, executive order or regulation, ordinance, or any other governmental regulation may, before breach or violation thereof, bring an action in the appropriate RTC to determine any question of construction or validity arising, and for a CO-OWNERSHIP Co-Ownership There is co-ownership whenever the ownership of an undivided thing or right belongs to different persons [Art. 484, Civil Code]. I. 260 BOC 2024 REQUISITES 1. Plurality of owners; 2. Object must be an undivided thing or right; and 3. Each co-owner’s right must be limited only to his ideal or abstract share of the physical whole [De Leon]. PROPERTY CIVIL LAW What Governs Co-Ownership (Art. 484, par. 2) d. Condominium Law: co-ownership of the common areas by holders of units [Sec. 6(c), RA 4726] 1. Contracts; 2. Special laws; and 3. The Civil Code. B. CONTRACT a. In general [Art. 494, Civil Code] b. Universal partnership [Art. 1779, Civil Code] c. Associations [Art. 1775, Civil Code] Characteristics 1. There are two (2) or more co-owners. 2. There is a single object which is not materially or physically divided and his ideal share of the whole. 3. There is no mutual representation by the co- owners. 4. It exists for the common enjoyment of the co-owners. 5. It has no distinct legal personality. 6. It is governed first of all by the contract of the parties; otherwise, by special legal provisions, and in default of such provisions, by the provisions of Title III on Co-Ownership. Only Limitation Each of the co-owners holds the property pro indiviso and exercises his or her rights with the entire property; thus, each co-owner may use and enjoy the property with no other limitation than that he shall not injure the interests of his co-owners [Silva v. Lo, G.R. No. 206667 (2021)]. II. SOURCES CO-OWNERSHIP OF C. INTESTATE SUCCESSION Co-ownership between the heirs before partition of the estate [Art. 1078, Civil Code] D. TESTAMENTARY DISPOSITION OR DONATION INTER VIVOS Donations Made to Several Persons Jointly General Rule: When a donation is made to several persons jointly, it is understood to be in equal shares, and there shall be no right of accretion among them. Exception: When the donor has otherwise provided [Art. 753, Civil Code] Donations Made to Spouses Jointly General Rule: In donations to spouses jointly, right of accretion is presumed. Exception: The donor provides otherwise [Art. 753, par. 2., Civil Code]. A. LAW a. Cohabitation: co-ownership between common law spouses [Arts. 147-148, 90, Family Code] b. Purchase creating implied trust [Art. 1452, Civil Code] c. Easement of party wall: co-ownership of part- owners of a party wall [Art. 658, Civil Code] Prohibition against partition: A donor or testator may prohibit partition for a period which shall not exceed 20 years [Art. 494, par. 3., Civil Code]. 261 BOC 2024 PROPERTY CIVIL LAW E. BY FORTUITOUS EVENT OF BY CHANCE 1. Co-ownership between owners of 2 things that are mixed by chance or by will of the owners [Art. 472, Civil Code]. 2. Hidden Treasure - When the discovery is made on the property of another, or of the State or any of its subdivisions, and by chance, one half shall be allowed to the finder [Art. 438, Civil Code]. Each co-owner is at the same time absolute owner of his own ideal but definite share which determines his rights and obligations in the co-ownership. [Cruz v. CA, G.R. No. 122904, 2005]. b. Presumption of Equal Share The portions belonging to the co-owners in the co-ownership shall be presumed equal, unless the contrary is proved [Art. 485(2), Civil Code]. F. BY OCCUPANCY Harvesting and fishing: co-ownership by two (2) or more persons who have seized a res nullius thing [Art. 713, Civil Code]. III. RIGHTS OF CO-OWNERSHIP a. Right to Share in the Benefits as well as the Charges b. Right to Use the Thing owned in Common c. Right to Full Ownership of his part and of the Fruits and Benefits pertaining thereto d. Right to bring an Action in Ejectment e. Right to compel other Co-owner to contribute to the Expenses of Preservation and to the Taxes f. Right to Reimbursement for Necessary Repairs g. Right to Oppose Alterations h. Right to Partition i. Right to Redemption j. Right to Participate in Administration of Property Owned in Common B. RIGHT TO USE THE THING OWNED IN COMMON [Art. 486, Civil Code] C. RIGHT TO FULL OWNERSHIP OF HIS PART AND OF THE FRUITS AND BENEFITS PERTAINING THERETO [Art. 493, Civil Code] Distinctions between Right to Property Owned in Common and Full Ownership over the Ideal Share Property Owned in Common Full Ownership Over the Ideal Share Rights Involved Right to use the thing owned in common [Art. 486, Civil Code] A. RIGHT TO SHARE IN THE BENEFITS AS WELL AS THE CHARGES [Art. 485, Civil Code] a. Proportionality The share of the co-owners shall be proportional to their respective interests. Any stipulation to the contrary is void [Art. 485(1), Civil Code]. 262 BOC 2024 A co-owner has the right to: 1. Alienate; 2. Assign; 3. Mortgage; and 4. Substitute another person in its enjoyment. Exception: When personal rights are involved [Art. 493] Limitations PROPERTY Use of the thing owned in common must be: 1. in accordance with the purpose for which the co-ownership is intended. The purpose of the co-ownership may be changed by agreement, express or implied. 2. in such a way as to not injure the interest of the co-ownership; 3. in such a way as not to prevent the other co-owners from using it according to their right [Art. 486] CIVIL LAW The rights above can only pertain to the co-owner’s ideal share prior to partition. Co-owners are free to dispose of their undivided aliquot shares therein, limited to the portion allotted to them upon partition. If the sale is of a definite portion of the common property, the consent of all co-owners is required because it operates as a partition [Spouses Rol v. Racho, G.R. No. 246096 (2021)]. accion publiciana, reivindicatoria). replevin, accion The Action is considered filed for the benefit of all the co-owners. A co-owner may bring such an action without joining all the other co-owners as co-plaintiffs because the suit is presumed to have been filed to benefit his co-owners. If the plaintiff/co-owner claims to be the sole owner, the action should be dismissed [Clemente v. Republic, G.R. No. 220008 (2019)]. E. RIGHT TO COMPEL OTHER CO-OWNERS TO CONTRIBUTE TO THE EXPENSES OF PRESERVATION AND TO THE TAXES [Art. 488, Civil Code] General Rule A sale made before the partition of the property among the coheirs does not annul or invalidate the deed of sale [Lipa Agricultural Development Corp. v. Salas, G.R. No. 242646, (2021)]. Only the rights of the co-owner/seller are transferred, thereby making the buyer a co-owner of the property. The proper action in such a case is not for the nullification of the sale, or for the recovery of possession of the property owned in common from the third person, but for division or partition of the entire property if it continued to remain in the possession of the co-owners who possessed and administered it. [Tomas Claudio Memorial College, Inc. v. Court of Appeals, G.R. No. 124262, (1999)]. D. RIGHT TO BRING AN ACTION IN EJECTMENT [Art. 487, Civil Code] Actions contemplated: All cases for recovery of possession (forcible entry, unlawful detainer, Each co-owner shall have a right to compel the other co-owners to contribute: 1. To the necessary expenses (incurred for preservation of the thing or right). If practicable, he must first notify his co-owners of the necessity for such repairs [Art. 489, Civil Code] 2. To the taxes [Art. 488, Civil Code] Exception to paying expenses and taxes necessary Co-owner no longer has to pay if he renounces his undivided interest as equivalent to his share of expenses and taxes [Art. 488, Civil Code]. This means that his/her renunciation does not cover all of his/her interest in the property co-owned. Exception to the Exception No waiver shall be made if prejudicial to co-ownership [Art. 488, Civil Code]. 263 BOC 2024 PROPERTY CIVIL LAW 1. Expenses to improve or embellish the thing shall be decided upon by a majority as determined in Art. 492, Civil Code. 2. As for the expenses for pure luxury or mere pleasure, these are not refundable for not serving purposes of preservation [Art. 548, Civil Code]. Rationale: Alteration is an act of ownership. Alteration – a change in the nature or use of a thing; it contemplates a permanent change. Examples: 1. Change of the thing from the state or essence in which the others believe it should remain. Withdrawal of the thing from the use to which they wish it to be intended 2. Any other transformation which prejudices the condition or substance of the thing or its enjoyment by the others [Manresa]. F. RIGHT TO REIMBURSEMENT FOR NECESSARY REPAIRS [Arts. 488-489, Civil Code] General Rule: A co-owner has the right to compel the other co-owners to contribute to the expenses of preservation, maintenance, or necessary repairs of the thing or right owned in common and to the taxes [Art. 488, Civil Code]. Examples of Alterations 1. The construction of a house on the co-owned property is an act of dominion. It is an alteration of the property owned in common [Cruz v. Catapang, G.R. No. 164110 (2008)]. 2. Mortgage, donation, or sale of a portion or the whole of the property co-owned 3. Allowing or entering into an easement Requirement of notice: If practicable, the co-owner must first notify the co-owners of the necessity for the repairs [Art. 489, Civil Code]. Exception to the requirement of notice: If impracticable or where the repairs are very urgent, and the other co-owners are in remote places and cannot be reached by an ordinary means of communication. This means that his/her renunciation does not cover all his/her interest in the property co-owned. Lack of notice even if practicable: Does not exempt other co-owners to contribute. The co-owner who advanced them has the burden of proving that they were properly incurred. G. RIGHT TO OPPOSE ALTERATIONS [Art. 491, Civil Code] General Rule: Unanimous Consent - None of the co-owners shall, without the consent of the others, make alterations in the thing owned in common, even though benefits for all would result therefrom. Exception: If the withholding of the consent by one or more of the co-owners is clearly prejudicial to the common interest, the courts may afford adequate relief. H. RIGHT TO PARTITION [Art. 494, Civil Code] Partition is the separation, division and assignment of a thing held in common among those to whom it may belong. Every act which is intended to put an end to indivision among co-heirs and legatees or devisees is deemed to be a partition. Partition may be inferred from circumstances sufficiently strong to support the presumption. Thus, after a long possession in severalty, a deed of partition may be presumed 264 BOC 2024 PROPERTY CIVIL LAW [Spouses Marcos v. Heirs of Bangi, G.R. No. 185745 (2014)]. not exceeding ten (10) years, shall be valid [Art. 494, Civil Code]. 2. A donor or testator may prohibit partition for a period which shall not exceed twenty (20) years [Art. 494, Civil Code]. 3. Neither shall there be any partition when it is prohibited by law [Art. 494, Civil Code]. 4. When physical partition would render the thing unserviceable for the use for which it is intended [Art. 495, Civil Code]. An oral partition by the heirs is valid if no creditors are affected. Even the requirement of a written memorandum under the statute of frauds does not apply considering that such a transaction is not a conveyance of property resulting in change of ownership but merely a designation and segregation of that part which belongs to each heir. [Lipa Agricultural Development Corp. v. Salas, G.R. No. 242646 (2021)]. General Rule: 1. No co-owner shall be obliged to remain in the co-ownership; and 2. Each co-owner may demand at any time the partition of the thing owned in common, insofar as his share is concerned [Art. 494(1), Civil Code]. The fact that an agreement for partition lacks technical description of the parties’ respective portions or that the subject property is still embraced by a single certificate of title could not legally prevent a partition, where the different portions allotted to each are determined and separately identifiable [Leoverzo v. Valdez, G.R. No. 169985(2011)]. Note: If the thing owned in common is indivisible: 1. The co-owners can agree that it be alloted to one of them, and the latter will indemnify the others; or 2. If they cannot agree, the thing shall be sold and its proceeds distributed [Art. 498, Civil Code] Elements for Prescription to Run in Favor of Co-Owner: 1. He has performed unequivocal acts of repudiation amounting to an ouster of the other co-owners; 2. Such positive acts of repudiation have been made known to the other co-owners; and 3. The evidence thereon must be clear and convincing [Salvador v. CA, G.R. No. 109910 (1995)]. 4. He has been in possession through open, continuous, exclusive, and notorious possession of the property for the period required by law [Figuracion v. Figuracion-Gerilla, G.R. No. 151334 (2013)]. Note: A creditor or assignee of a co-owner may take part in the division of the thing owned in common and object to its being effected without their concurrence. But they cannot impugn any partition already executed unless there has been fraud or in case it was made notwithstanding a formal opposition to prevent it, without prejudice to the right of the debtor or assignor to maintain its validity [Art. 497, Civil Code]. Exceptions: Sample of Acts of Repudiation 1. An agreement to keep the thing undivided for a certain period of time, 1. Filing of actions in court like quieting of title, accion reivindicatoria and other similar suit 265 BOC 2024 PROPERTY CIVIL LAW 2. Co-owner who causes cancellation of the existing title and petitions for an issuance of a new title in his favor 3. Co-owner who permanently fences the property and hires security personnel to prevent other co-owners from entering the property I. RIGHT TO REDEMPTION [Art. 1619, Civil Code] [Verdad v. Court of Appeals, G.R. No. 109972, (1996)]. J. RIGHT TO PARTICIPATE IN ADMINISTRATION OF PROPERTY OWNED IN COMMON [Art. 492, Civil Code] General Rule: 1. For the administration and better enjoyment of the thing owned in common, the resolutions of the majority of the co-owners shall be binding [Art. 492(1), Civil Code]. 2. There shall be no majority unless the resolution is approved by the co-owners who represent the controlling interest in the object of the co-ownership [Art. 492(2), Civil Code]. Legal redemption – the right to be subrogated, upon the same terms and conditions stipulated in the contract, in the place of one who acquires a thing by purchase or dation in payment, or by any other transaction whereby ownership is transmitted by onerous title [Art. 1619, Civil Code]. General Rule: A co-owner of a thing may exercise the right of redemption in case the shares of all the other co-owners or of any of them are sold to third person [Art. 1620, Civil Code]. As legal redemption is intended to minimize co-ownership, once a property is subdivided and distributed among the co-owners, the community ceases to exist and there is no more reason to sustain any right of legal redemption. Every act intended to put an end to indivision among co-heirs is deemed to be a partition [Avila v. Sps. Barabat, G.R. No. 141993 (2006)]. When exercised Within 30 days from the notice in writing by the selling co-owner [Art. 1623, Civil Code] Exceptions to Acts of Administration Only by Majority: 1. If there be no majority; or 2. If the resolution of the majority is seriously prejudicial to those interested in the property owned in common. In which case, the court will intervene: the court, at the instance of an interested party, shall order such measures as it may deem proper, including the appointment of an administrator. Examples of Acts Seriously Prejudicial The written notice of sale is mandatory. Notwithstanding actual knowledge of a coowner, he is still entitled to a written notice from the selling co-owner in order to remove all uncertainties about the sale, its terms and conditions, as well as its efficacy and status. 266 BOC 2024 1. Call for a substantial change of the thing 2. Authorizing leases, loans, and other contracts without the necessary security, thereby exposing the property to serious danger 3. Continued employment of an administrator who is guilty of fraud or negligence in his management [Manresa] PROPERTY CIVIL LAW Note: A co-owner is entitled to a written notice from a selling co-owner in order to remove all uncertainties about the sale, its terms and conditions, as well as its efficacy and status [Verdad v. CA, G.R. No. 109972 (2000)]. cracks in the walls, electrical wiring system which renders property unsafe/ unhealthy to live in) given to others [Arts. 488 and 489, Civil Code]. IV. Alterations (ex. Sale, mortgage, assignment) Consensus of all co-owners [Art. 491, Civil Code] Lease for more than one (1) year Consensus of all co-owners (considered an act of alteration, see Tolentino) Acts of administration (ex. Payment of taxes/association dues, hiring contractors to do minor repairs) Majority of co-owners [Art. 492, Civil Code] Improvement/ Embellishing the Thing/ Useful expenses (ex. Swimming pool, CCTV, landscaped gardens, etc.) Majority of co-owners [Arts. 489 and 492, Civil Code] RULES A. ON RENUNCIATION OF SHARE A co-owner may exempt himself from the payment of expenses of preservation by renouncing his undivided interest in the co-ownership as may be equivalent to his share in the necessary expenses and taxes [Art. 488, Civil Code]. A co-owner who has not waived his share in the co-ownership may be compelled to pay his share in the cost of its maintenance, but he may not be compelled to renounce. Waiver of renunciation is not allowed if it is prejudicial to the co-ownership [Art. 488, Civil Code]. B. REPAIRS FOR PRESERVATION EMBELLISHMENTS OR IMPROVEMENTS Requires consent of majority of co-owners representing the controlling interest in the undivided thing [Arts. 489 and 492, Civil Code]. C. RULES ON MULTI-STORY HOUSE [ART. 490, CIVIL CODE] Applies when: Note: The rules under Art. 492 are applicable, so judicial intervention may be resorted to. Summary Act of Co-Owner Consent Needed Preservation (ex. Critical maintenance work – roof leaks, May be made at will by any co-owner, but preferably notice is 267 BOC 2024 1. The different stories of a house belong to different owners; 2. The titles of ownership do not specify the terms under which they should contribute to the necessary expenses; and 3. There exists no agreement on the subject. PROPERTY CIVIL LAW Manner of Contribution based on the Part of the House 1. Main and party walls, the roof, and the other things used in common - All owners contribute in proportion to the value of the story belonging to each. 2. Floor of the entrance, front door, common yard, and sanitary works common to all - All owners contribute pro rata or equally 3. The floor of each co-owner’s story Each owner bears the cost of maintaining the floor of his story 4. Stairs - For stairs from the first entrance to the first story, contribution is through pro rata sharing of all owners except the owner of the ground floor. For stairs from the first to the second story, contribution is through pro rata sharing of all owners except the owner of the ground floor and that of the first story; and so on. V. TERMINATION EXTINGUISHMENT OR Means of Termination [STAMPD]: 1. Total Destruction of the thing owned in common 2. Merger of all interests in one person 3. Acquisitive prescription 4. Partition 5. Sale of property co-owned 6. Termination of period agreed upon in co-ownership A. TOTAL DESTRUCTION OF THING OR LOSS OF THE PROPERTY CO-OWNED Exception: If the building is destroyed, there is still co-ownership over the land and the debris [Tolentino]. B. MERGER OF ALL INTERESTS IN ONE PERSON This may take place by any of the causes which are sufficient to transmit title to an obligation, either by assignment, subrogation, and sale of inheritance. C. ACQUISITIVE PRESCRIPTION This is a mode of acquiring ownership by a possessor through the requisite lapse of time. It may be ordinary or extraordinary [Art. 1117, Civil Code]. Ordinary acquisitive prescription requires possession of things in good faith and with a just title for the time fixed by the law. Extraordinary prescription is the opposite. No good faith or just title is required, but long possession under Art. 1132 (2) [De Leon]. In this case between step-siblings about property inherited from their common mother but different fathers, the deed of partition was proven to have been implemented in 1920, leaving some properties in co-ownership. Prescription started to run on the date of repudiation of the co-owned properties which already prescribed when the complaint was filed in 1973. However, one property was assigned to Sixto Hallasgo in exchange for the house in the poblacion. The heirs of Jardin may still recover that if there was a violation of trust; the action has not prescribed [Heirs of Jardin v. Heirs of Hallasgo, G.R. No. L-55225 (1982)]. D. PARTITION OR DIVISION Modes: 268 BOC 2024 1. Extrajudicial partition – The agreement may be oral or written, done PROPERTY CIVIL LAW outside of court [Vda. de Reyes v. CA, G.R. No. 92436 (1991)]. 2. Judicial partition – Governed by the Rules of Court insofar as they are consistent with the Civil Code [Art. 496, Civil Code]. 5. The co-heirs shall not be liable for the subsequent insolvency of the debtor of the estate, but only for his insolvency at the time the partition is made [Art. 1095, Civil Code]. Rights of Third Parties in Partition Action for Partition Will Determine: 1. The partition of a thing owned in common shall not prejudice third persons, who shall retain the rights of mortgage, servitude, or any real rights belonging to them before the division was made [Art. 499, Civil Code]. [Heirs of Cesar Marasigan v. Marasigan, G.R. No. 156078 (2008)] 1. Whether or not the plaintiff is indeed a co-owner of the property 2. How the property will be divided between the plaintiff and defendant Note: A “third person” is defined as all those who did not in any way participate or intervene in the partition [Paras citing 3 Manresa 54 and Gonzaga v. Martinez, G.R. No. L-3196 (1908)]. Incidents of Partition 1. Mutual accounting for benefits received and reimbursement for expenses made [Art. 500, Civil Code]. 2. Payment of damages by each co-owner caused by reason of his negligence or fraud [Art. 500, Civil Code]. 3. Liability of each co-owner for defects of title and quality of the portion assigned to each of the co-owners [Art. 501, Civil Code]. Effects of Partition 1. Confers exclusive ownership of the property adjudicated to a co-heir [Art. 1091, Civil Code]. 2. Co-heirs shall be reciprocally bound to warrant the title to, and the quality of each property adjudicated [Art. 1092, Civil Code]. 3. Reciprocal obligation of warranty shall be proportionate to the respective hereditary shares of co-heirs [Art. 1093, Civil Code]. 4. An action to enforce the warranty must be brought within ten (10) years from the date the right of action accrues [Art. 1094, Civil Code]. 2. The creditors or assignees of the co-owners may take part in the division of the thing owned in common and object to its being effected without their concurrence [Art. 497, Civil Code]. All kinds of creditors, whether preferred or ordinary, are included within the scope of creditors; but they must have become creditors during the existence of the co-ownership and not before or after [Paras citing 3 Manresa 528-529]. Exception If the partition was already executed, the creditors/assignees cannot impugn the same. Exception to the Exception There was fraud or a previous formal opposition against the partition, without prejudice to the right of the debtor or assignor to maintain its validity [Art. 497, Civil Code]. 269 BOC 2024 PROPERTY CIVIL LAW The law does not expressly require previous notice to the creditors and assignees before a partition [Tolentino]. by a new agreement. A donor or testator may prohibit partition for a period which shall not exceed twenty (20) years. If notice is not given, the partition is not binding on the creditors and assignees. VI. But once notice has been given, it is the duty of creditors and assignees to intervene and make known their stand. If they fail to do so, they cannot question the division made, except in cases of fraud. Partition of an Indivisible Thing [Art. 498, Civil Code] 1. 1st option: The co-owners can agree that one of them shall be the sole owner by paying the value of the other co-owners’ shares. 2. 2nd option: If they cannot agree who among them shall be the sole owner, the property will be sold to a 3rd person and the proceeds will be distributed among them. E. SALE OF PROPERTY CO-OWNED [Art. 498, Civil Code] The sale shall be resorted to only if: 1. The property is essentially indivisible. 2. The co-owners cannot agree that the entire property be allotted or assigned to one of them, who shall reimburse the other co-owners of their shares. F. TERMINATION OF PERIOD AGREED UPON BY THE CO-OWNERS [Art. 494, Civil Code] An agreement to keep the thing undivided for a certain period of time, not exceeding ten (10) years, shall be valid. This term may be extended THE CONDOMINIUM ACT [R.A. 4726, AS AMENDED] A. DEFINITIONS Condominium - an interest in real property consisting of separate interest in a unit in a residential, industrial or commercial building and an undivided interest in common, directly or indirectly, in the land on which it is located and in other common areas of the building. Condominium Corporation A corporation specially formed for the purpose in which the holders of separate interest shall automatically be members or shareholders, to the exclusion of others, in proportion to the appurtenant interest of their respective units in the common areas. Unit A part of the condominium project intended for any type of independent use or ownership, including one or more rooms or spaces located in one or more floors (or part or parts of floors) in a building or buildings and such accessories as may be appended thereto. Project The entire parcel of real property divided or to be divided in condominiums, including all structures thereon. Common areas The entire project excepting all units separately granted or held or reserved. R.A. 4726 Sec. 6. Unless otherwise expressly provided in the enabling Master Deed or the 270 BOC 2024 PROPERTY CIVIL LAW Declaration of Restrictions, the incidents of a condominium grant are as follows: proportion as their interests in the common areas [Sec. 8, R.A. 4726]. a. The following are not part of the unit: bearing walls, columns, floors, roofs, foundations, and other common structural elements of the buildings; lobbies, stairways, hallways and other areas of common use, elevator equipment and shafts, central heating, central refrigeration and central air conditioning equipment, reservoir, tanks, pumps and other central services and facilities, pipes, ducts, flues, chutes, conduits wires and other utility installations, wherever located, except the outlets thereof when located within the unit. Partition shall be made only upon showing: 1. That three years after damage or destruction to the project in which the corporation owns or holds the common areas, which damage or destruction renders a material part thereof unfit for its use prior thereto, the project has not been rebuilt or repaired substantially to its state prior to its damage or destruction; or 2. That damage or destruction to the project has rendered one-half or more of the units untenantable and that condominium owners holding in aggregate more than thirty percent interest in the common areas are opposed to repair or restoration of the project; or 3. That the project has been in existence in excess of fifty years, that it is obsolete and uneconomic, and that condominium owners holding in aggregate more than fifty percent interest in the common areas are opposed to repair or restoration or remodeling or modernizing of the project; or 4. That the project or a material part thereof has been condemned or expropriated and that the project is no longer viable, or that the condominium owners holding in aggregate more than seventy percent interest in the common areas are opposed to continuation of the condominium regime after expropriation or condemnation of a material portion thereof; or 5. That the conditions for such partition by sale set forth in the declaration of restrictions, duly The Master Deed provided that all repairs and maintenance of the common areas not necessitated by the negligence of a unit owner shall be made and at the expense of the Condominium Corporation. Moreover, the electrical main panel, although located inside the unit, forms part of the electrical supply system of the condominium, an integral component of the power utility installation, which is considered a common area under the Condominium Act. [Limson v Wack Wack Condominium, G.R. No. 188802 (2011)]. B. RULES ON JUDICIAL PARTITION General Rule: Common areas shall remain undivided, and there shall be no judicial partition thereof [Sec. 7, R.A. 4726]. Exceptions: An action may be brought by one or more such persons for partition thereof by sale of the entire project, as if the owners of all of the condominiums in such project were co-owners of the entire project in the same 271 BOC 2024 PROPERTY CIVIL LAW registered in accordance with the terms of this Act, have been met. conditioned upon failure of the condominium owners to rebuild within a certain period or upon specified inadequacy of insurance proceeds, or upon specified percentage of damage to the building, or upon a decision of an arbitrator, or upon any other reasonable condition. C. ALLOWABLE RESTRICTIONS A declaration of restrictions must be registered and annotated by the Register of Deeds, and such declaration shall constitute a lien upon and is binding upon condominium owners in the project. Such declaration of restrictions may provide: 1. Provisions regarding the management body’s powers, maintenance of insurance policies, maintenance of common areas, purchase of materials for common areas, payment of taxes and special assessments, reconstruction of portion/s of the project, manner of delegation of power, entry by officers and agents into units when necessary, and power of attorney to sell the entire project. 2. The manner and procedure for amending such restrictions: Provided, That the vote of not less than a majority in interest of the owners is obtained. 3. For independent audit of the accounts of the management body; 4. For reasonable assessments to meet authorized expenditures, each condominium unit to be assessed separately for its share of such expenses in proportion (unless otherwise provided) to its owners fractional interest in any common areas; 5. For the subordination of the liens securing such assessments to other liens either generally or specifically described; 6. For conditions upon which partition of the project (except as specified in Sec. 8) and dissolution of the condominium corporation may be made. Such right to partition or dissolution may be D. TERM AND DISSOLUTION OF A CONDOMINIUM CORPORATION The term of a condominium corporation shall be co-terminus with the duration of the condominium project, the provisions of the Corporation Law to the contrary notwithstanding [Sec. 11, R.A. 4726]. Dissolution of a Condominium Corporation may be through: 1. Voluntary Dissolution 2. Involuntary Dissolution Voluntary Dissolution General Rule: Until the enabling or the master deed of the project in which the condominium corporation owns or holds the common area is revoked, the corporation shall not be voluntarily dissolved through an action for dissolution under Rule 104 of the Rules of Court. Exception: Upon showing: 1. That three years after damage or destruction to the project in which the corporation owns or holds the common areas, which damage or destruction renders a material part thereof unfit for its use prior thereto, the project has not been rebuilt or repaired substantially to its state prior to its damage or destruction; or 2. That damage or destruction to the project has rendered one-half or more of the units therein untenantable and 272 BOC 2024 PROPERTY CIVIL LAW that more than thirty percent of the members of the corporation, if non-stock, or the shareholders representing more than thirty percent of the capital stock entitled to vote, if a stock corporation, are opposed to the repair or reconstruction of the project, or 3. That the project has been in existence in excess of fifty years, that it is obsolete and uneconomical, and that more than fifty percent of the members of the corporation, if non-stock, or the stockholders representing more than fifty percent of the capital stock entitled to vote, if a stock corporation, are opposed to the repair or restoration or remodeling or modernizing of the project; or 4. That the project or a material part thereof has been condemned or expropriated and that the project is no longer viable, or that the members holding in aggregate more than seventy percent interest in the corporation, if non-stock, or the stockholders representing more than seventy percent of the capital stock entitled to vote, if a stock corporation, are opposed to the continuation of the condominium regime after expropriation or condemnation of a material portion thereof; or 5. That the conditions for such a dissolution set forth in the declaration of restrictions of the project in which the corporation owns or holds the common areas, have been met. Dissolution may also be done through the affirmative vote of all the stockholders or members thereof at a general or special meeting duly called for the purpose: Provided, That all the requirements of Section sixty-two of the Corporation Law are complied with. Involuntary Dissolution A corporation may be dissolved by the Securities and Exchange Commission upon filing of a verified complaint and after proper notice and hearing on the grounds provided by existing laws, rules and regulations [Sec. 121, Title VIV, Corporation Code]. Effect of Involuntary Dissolution The common areas owned or held by the corporation shall be liquidated and transferred pro-indiviso and in proportion to their interest in the corporation to the members or stockholders thereof, subject to the superior rights of the corporation creditors. After such transfer or conveyance, the provisions of this Act governing undivided co-ownership of, or undivided interest in, the common areas in condominium projects shall fully apply. POSSESSION Possession What is possession? Possession is the holding of a thing or enjoyment of a right [Art. 523, Civil Code]. What are the elements of possession? (OIR) 1. Occupancy or control of the thing or right – actual or constructive (corpus) 2. Intent to Possess (animus possidendi) 3. Must be by virtue of one’s own Right I. KINDS OF POSSESSION Possession in the Concept of a Holder: Acknowledges in another a superior right which he believes to be ownership, whether his belief be right or wrong [Carlos v. Republic, G.R. No. 164823 (2005)] Examples: 1. Lessees; 273 BOC 2024 PROPERTY CIVIL LAW 2. Trustees, including parents over the properties of their children; and husband and wife over each other’s property; 3. Antichretic creditors; 4. Agents; 5. Attorney’s with regard to their clients properties; 6. Depositaries; and 7. Co-owners. [De Leon, 2015] Possession Owner: in the Concept of an Refers to one’s overt acts which tend to induce the belief on the part of others that they are the owner Possession in the concept of an owner is jus possidendi. If a person possesses the concept of owner — he may eventually become the owner by prescription. Thus, a possessor merely in the concept of holder cannot acquire property by acquisitive prescription—one cannot recognize the right of another and at the same time claim adverse possession. Possession may be exercised in one's own name or in that of another (Art 524, NCC); Possession in one’s own name: Possessor claims the thing for himself [Article 524, Civil Code] Possession in another’s name: Held by the person for another; agent, subject to authority and ratification; if not authorized, negotiorum gestio. May be: a. Voluntary - by virtue of agreement (e.g. possession of an agent) b. Legal - by virtue of law (e.g. possession in behalf of an incapacitated person) Negotiorum gestio Whoever voluntarily takes charge of the agency or management of the business or property of another, without any power from the latter, is obliged to continue the same until the termination of the affair and its incidents, or to require the person concerned to substitute him, if the owner is in a position to do so. This juridical relation does not arise in either of these instances: 1. When the property or business is not neglected or abandoned; (unauthorized contracts) 2. If in fact the manager has been tacitly authorized by the owner. (agency) [Art. 2144, Civil Code] Relevance of Good Faith and Bad Faith Possession in Good Faith: possessor is not aware of the flaw or defect in his title or mode of acquisition [Art. 526, Civil Code] Requisites (FUT): 1. There is a Flaw or defect in said title or mode which invalidates it; 2. The possessor is Unaware of the flaw or defect, or believes that the thing belongs to him 3. The possessor has a Title or mode of acquisition; Note: Good faith is always presumed; the burden of proof of bad faith is on the person who alleges bad faith [Art. 527, Civil Code]. It ceases when the possessor has knowledge of facts regarding a flaw, weakness, or defect in his title. Rights of a Possessor in Good Faith 274 BOC 2024 PROPERTY CIVIL LAW 1. Fruits [Art. 544, Civil Code] 2. Refund of necessary expenses [Art. 546, Civil Code] 3. Refund of useful expenses [Art. 546, Civil Code] 4. Right of retention when there are unpaid necessary or useful expenses [Art. 546, Civil Code] 5. Removal of useful/ornamental improvements without damage to the principal thing [Arts. 546-547, Civil Code] 6. No liability for deterioration or loss, except in cases of fraudulent intent or negligence [Art. 552, Civil Code] 7. May acquire full ownership by prescription [Arts. 1117-1138, Civil Code] 8. Presumption of just title [Art. 541, Civil Code] 9. Can ask for the inscription of possession in the Registry of Property [Art 708, Civil Code] 10. Generally, he/she can do on the things possessed everything that the law authorizes an owner to do until he/she is ousted by one who has a better right 11. Can exercise the right of pre-emption and is entitled to indemnity in case of appropriation 12. Has presumption of continuity of good faith [Arts. 528-529, Civil Code] 13. Non-interruption of possession (possession during intermediate period) [Arts. 554 and 561, Civil Code] 14. Right to be respected and protected/ restored in his/her possession by the means established by the laws and the Rules of Court [Art. 539, Civil Code]. These include summary actions (forcible entry and unlawful detainer), accion publiciana, and action for replevin. Accion reivindicatoria is not included. “Every possessor” – includes all kinds of possession, from that of an owner to that of a mere holder, except that which constitutes a crime. 15. Lawful possessors can employ self-help [Art. 429, Civil Code] 16. Possession of an immovable extends to the movables within or inside [Arts. 542 and 426, Civil Code] (Exception: When it is shown or proven that such movables should be excluded) Possession in Bad Faith: possesses in any case contrary to the foregoing (definition of good faith) [Art. 526, Civil Code] It begins from the time the possessor becomes aware that there is something improper in his possession. II. WAYS OF POSSESSION ACQUIRING Modes of Acquisition (MSA) 1. By the Material occupation of a thing or exercise of a right; 2. By Subjecting a thing or right to the action of our will; or 3. By proper Action and legal formalities. (De Leon, 2015) A. BY THE MATERIAL OCCUPATION OF A THING OR THE EXERCISE OF A RIGHT Possession is acquired through the following modes of constructive delivery: 1. Traditio brevi manu – If the transferee/buyer already had possession of the object under a different title even before the sale (e.g., lessee, depositary subsequently buys the property) 2. Traditio constitutum possessorium – the transferor/seller continues in the possession of the object, but not in the concept of an owner 275 BOC 2024 PROPERTY CIVIL LAW (e.g., owner sells the property and becomes lessee) B. BY THE FACT THAT THE THING IS SUBJECT TO THE ACTION OF OUR WILL Possession is acquired through the following modes of constructive delivery: 1. Traditio simbolica – delivering an object or symbol, and placing the thing under the control of the transferee (ex. Giving a key where the thing or object is stored, kept or under custody. Since the key is with the vendee, then it means that the latter can gain access to the object) 2. Traditio longa manu – the transferor points out to the transferee the things which are being transferred, or they merely agree or consent that delivery has been effected Requisites of Doctrine of Irrevindicability (GO): ● The movable property must be acquired in Good faith; and ● The possession must be in the concept of an Owner [Art. 559, Civil Code]. Exception 1. The owner has lost the thing; 2. The owner has been unlawfully deprived of the thing [Art. 559, NCC]. Rules in Loss or unlawful deprivation of a movable (RCC): 1. One who has lost any movable or has been unlawfully deprived thereof, may Recover it from the person in possession of the same [Art. 559, Civil Code]; 2. If the possessor of a movable lost or which the owner has been unlawfully deprived, has acquired it in good faith at a public sale, the owner Cannot obtain its return without reimbursing the price paid therefor [Art. 559, Civil Code); and 3. The possession of movables is not deemed lost so long as they remain under the Control of the possessor, even though for the time being he may not know their whereabouts [Art. 556, Civil Code]. C. BY THE PROPER ACTS AND LEGAL FORMALITIES ESTABLISHED FOR ACQUIRING SUCH RIGHT Acquisition by virtue of a just title such as when property is transmitted by succession, donation, contract, or execution of a public instrument, etc. III. EFFECTS OF POSSESSION Possessor of a Movable Property Rules For Movables Possession of Movables Possession is not deemed lost so long as they remain under the control of the possessor, even if whereabouts are unknown [Art. 556, Civil Code]. General Rule: Possession of movables acquired in good faith is equivalent to a title (Art. 559, NCC) Possession in good faith is equivalent to a title. Nevertheless, one who has lost any movable or has been unlawfully deprived thereof, may recover it from the person in possession of the same [Art. 559, Civil Code]. The right of the owner cannot be defeated even by proof that there was good faith in the acquisition by the possessor. [Dizon v. Suntay, G.R. No. L-30817 (1972)]. Exception: When there is acquisition in good faith of the possessor at a public sale, in which case the owner cannot obtain its return without 276 BOC 2024 PROPERTY CIVIL LAW reimbursing the price. The owner’s right is based on his being dispossessed without his consent [Dizon v. Suntay, supra]. ACTIONS TO RECOVER OWNERSHIP AND POSSESSION OF REAL PROPERTY Period to bring action Actions to Recover Ownership and Possession I. ACCION INTERDICTAL Action for Ejectment (Forcible Entry & Unlawful Detainer; FE-UD) A summary action for recovery of actual, material or de facto physical possession through an action for forcible entry or unlawful detainer. It must be filed in the MTC or MeTC [Sec. 1, Rule 70, Rules of Court]. Difference between Forcible Entry & Unlawful Detainer As to unlawful -ness of possessi on As to manner of disposse -ssion Forcible Entry Unlawful Detainer The possession was already unlawful from the time of entry. The possession was first lawful, but became illegal. (e.g. a lessee refuses to vacate the property after the lease contract has expired) Lawful possessor deprived through FISTS: 1. Force 2. Intimidation 3. Strategy Possessor refused to vacate upon demand by owner Note: Legal possession (by II. 4. Threats, and 5. Stealth permission or tolerance) becomes unlawful upon failure to vacate 1 year from dispossession (force, intimidation, threats) or from Knowledge of dispossession (strategy, stealth) 1 year from last demand to vacate ACCION PUBLICIANA Accion publiciana, also known as accion plenaria de posesion, is an ordinary civil proceeding to determine the better right of possession of realty independently of title. It refers to an ejectment suit filed after the expiration of one (1) year from the accrual of the cause of action or from the unlawful withholding of possession of the realty. The objective of the plaintiffs in accion publiciana is to recover possession only, not ownership. However, where the parties raise the issue of ownership, the courts may pass upon the issue to determine who between or among the parties has the right to possess the property. However, such adjudication is not conclusive on the issue of ownership [Madrid v. Spouses Mapoy, G.R. No. 150887 (2009)]. Note: Actions for ejectment/accion interdictal not filed within one (1) year must be filed as accion publiciana. III. ACCION REIVINDICATORIA Accion reivindicatoria seeks the recovery of ownership and includes the jus utendi and the 277 BOC 2024 PROPERTY CIVIL LAW jus fruendi brought in the proper RTC. Accion reivindicatoria is an action whereby plaintiff alleges ownership over a parcel of land and seeks recovery of its full possession [Spouses Cañezo v. Bautista, G.R. No. 170189 (2010)]. It must be brought in the proper RTC (depending on the assessed value of the property) in an ordinary civil proceeding [Heirs La Madrid v. Tumaliuan, G.R. No. 243799 (2021)]. Requisites for Accion Reivindicatoria 1. The property must be identified; and 2. The plaintiff must rely on the strength of his title (E incumbit probatio qui dicit, non qui negat – “He who asserts, not he who denies, must prove”) [Art. 434, Civil Code]. IV. WRIT OF POSSESSION An order directing the sheriff to place a successful registrant under the Torrens system in possession of the property covered by a decree of the court. When is a Writ of Possession proper? (FEEEL) a. Foreclosure, judicial or extrajudicial, of mortgage. Provided that the mortgagor has possession, and no third party has intervened b. Ejectment c. Execution sales d. Eminent domain proceedings e. Land registration cases V. Being an ancillary remedy, injunction can be utilized to recover possession subject to the following limitations/restrictions: a. It only maintains the status quo; b. It cannot transfer the control of the property to another person or entity when there is no control or possession established in the first place; and c. It cannot be used as an alternative remedy for proper actions to recover possession. Exception: When injunction is allowed: 1. Actions for forcible entry a. Writ of preliminary injunction within 10 days from filing of the complaint to restore plaintiff in possession b. Courts shall decide within 30 days 2. Ejectment a. If possessor is a possessor in concept of an owner (possession de jure) for over a year and being disturbed by repeated intrusions of a stranger b. If an owner, still in possession, desires to prevent repeated intrusions by a stranger c. If the possessor is clearly not entitled to property EASEMENTS INJUNCTION Easements General Rule: Not available as a remedy (Reason: The presumption is that the one in possession disputably has the better right) I. 278 BOC 2024 CHARACTERISTICS PROPERTY CIVIL LAW 1. A real right – an action in rem is possible against the possessor of the servient estate 2. Imposable only on another’s property 3. Jus in re aliena – real right that may be alienated although the naked ownership is maintained 4. Limitation or encumbrance on the servient estate for another’s benefit 5. There is inherence or inseparability from the estate to which it belongs a. Easements are inseparable from the estate to which they actively or passively belong (Art. 617); they are transmissible, cannot be alienated or mortgaged independently of the estate, or assigned to another immovable. 6. It is indivisible (even if the tenement be divided) a. a. Partition of either the servient or dominant estate between two or more persons does not affect the existence of the easement 7. It is intransmissible (unless the tenement affected also be transmitted) 8. It is perpetual (as long as the dominant and servient estate exists unless sooner extinguished by the causes enumerated in the law). 9. It grants no title to the dominant estate holder so the establishment of an easement is proof that the property is not his or hers. II. KINDS OF EASEMENTS As to recipient of the benefit Real (Praedial) - encumbrance is imposed on an immovable for the benefit of another immovable. Two distinct immovable — required. (Art. 613,NCC) the benefit of a community, or of one or more persons to whom the encumbered estate does not belong. (Art. 614, NCC) As to its source Legal - imposed by law and may be established against the will of the owner of the servient estate. (Art. 619, NCC) Voluntary - by will or agreement of the parties. (Art. 619, NCC) - only the owner can create a servitude that will bind the servient estate. (RABUYA, 2021) As to its mode of acquisiti on Continuous and Apparent - by virtue of a title or, prescription of 10 years. (ART. 620, NCC) Discontinuous and Continuous non-apparent acquired only by virtue of title. (Art. 622,NCC) Positive - from the day on which the owner of the dominant estate, or person who made use of the easement, commenced to exercise it upon the servient estate. 621, NCC Negative - from the day the owner of the dominant estate forbade, by a public instrument, the owner of the servient estate from executing an act which would be lawful without the easement. (Art. 621, NCC) Legal Easements Personal - encumbrance is imposed on an immovable property for Legal vs Voluntary Easements 279 BOC 2024 Legal Easements Voluntary Easements PROPERTY Created by law, whether for public use or for the interest of private persons. Art. 619 and 634, Civil Code) CIVIL LAW Created by the will of the owners of the estate through contract, last will or donation. (Art. 619, Civil Code) A legal easement is one mandated by law, constituted for public use or for private interest and becomes a continuing property right unless its removal is provided for in a title of conveyance or the sign of the easement is removed before the execution of the conveyance. Essential requisites for an easement to be compulsory are: 1. the dominant estate is surrounded by other immovables and has no adequate outlet to a public highway; 2. proper indemnity has been paid; 3. The isolation was not due to acts of the proprietor of the dominant estate; 4. The right of way claimed is at point least prejudicial to the servient estate; and 5. To the extent consistent with the foregoing rule, where the distance from the dominant estate to a public highway may be the shortest. (Villanueva v. Velasco, G.R. No. 130845, 2000) Easements cannot be created by courts. The court’s role is only to declare the existence of an easement if in reality one exists by virtue of law or will of the parties. Thus, there are no judicial easements (Castro v. Monsod, G.R. No. 183719, 2011) a. Natural Drainage (Art 637, NCC) Lower estates are obliged to receive the waters which naturally and without the intervention of man descend from the higher estates (as well as the stones or earth which they carry with them). The owner of the lower estate cannot construct works which will impede this easement; neither can the owner of the higher estate make works which will increase the burden. Refer to Art. 46 of the Water Code which states that “when artificial means are employed to drain water from higher to lower land, the owner of the highest land shall select the routes and methods of drainage that will cause the minimum damage to the lower lands, subject to the requirements of just compensation.” b. Riparian Banks The banks of rivers and streams, even in case they are of private ownership, are subject throughout their entire length and within a zone of three (3) meters for urban areas, twenty (20) meters for agricultural areas and forty (40) meters for forest areas [Art.51, Water Code] along their margins, to the easement of public use in the general interest of navigation, floatage, fishing, recreation and salvage. Estates adjoining the banks of navigable or floatable rivers are subject to the easement of towpath for the exclusive service of river navigation and floatage. If it is necessary to occupy lands of private ownership, the proper indemnity shall first be paid. NOTE: Voluntary easements must be recorded in the Registry of Property to prejudice third persons. (Art. 708, Civil Code) Kinds of Legal Easements Relating to Waters c. Abutment of a Dam (Art. 639, NCC) Whenever for the diversion or taking of water from a river or brook, or for the use of any other continuous or discontinuous stream, it should be necessary to build a dam, and the person who is to construct it is not the owner of the banks, or 280 BOC 2024 PROPERTY CIVIL LAW lands which must support it, he may establish the easement of abutment of a dam, after payment of the proper indemnity. Note: The Water Code requires a water permit for the establishment of a dam [Art. 18, Water Code]. d. Drawing Water and Watering Animals (Arts. 640-641, NCC) Compulsory easements for drawing water or for watering animals can be imposed only for reasons of public use in favor of a town or village, after payment of the proper indemnity [Art. 640, Civil Code]. Easements for drawing water and for watering animals carry with them the obligation of the owners of the servient estates to allow passage to persons and animals to the place where such easements are to be used, and the indemnity shall include this service [Art. 641, Civil Code]. The width of the easement must not exceed ten (10) meters [Art. 657, Civil Code]. e. Aqueduct Any person who may wish to use upon his own estate any water of which he can dispose shall have the right to make it flow through the intervening estates, with the obligation to indemnify their owners, as well as the owners of the lower estates upon which the waters may filter or descend [Art. 642, Civil Code]. Requisites to Establish Easement of Aqueduct [Art. 643, Civil Code]: 1. To prove that he can dispose of the water and that it is sufficient for the use for which it is intended; 2. To show that the proposed right of way is the most convenient and the least onerous to third persons; 3. To indemnify the owner of the servient estate in the manner determined by the laws and regulations. 4. Acquire a water permit [Art. 13, Water Code] What it cannot be imposed on Easement of aqueducts for private interest cannot be imposed on buildings, courtyards, annexes, or outhouses, or on orchards or gardens already existing [Art. 644, Civil Code]. Right of servient estate owner This easement does not prevent the owner of the servient estate from closing or fencing it, or from building over the aqueduct in such a manner as not to cause the latter any damage, or render necessary repairs and cleanings impossible [Art. 645, Civil Code]. Treatment under law This easement is considered as continuous and apparent, even though the flow of the water may not be continuous, or its use depends upon the needs of the dominant estate, or upon a schedule of alternate days or hours [Art. 646, Civil Code]. In the appropriation of water, there is a need to apply for water rights. Any person having an easement for an aqueduct may enter upon the servient land for the purpose of cleaning, repairing or replacing the aqueduct or the removal of obstructions therefrom [Art. 49, Water Code]. Water legally appropriated shall be subject to the control of the appropriator from the moment it reaches the appropriator’s canal or aqueduct leading to the place where the water will be used or stored and, thereafter, so long as it is being beneficially used for the purposes for which it was appropriated [Art. 8, Water Code]. 281 BOC 2024 PROPERTY CIVIL LAW f. Stop Lock or Sluice Gate 3. There must be payment of the proper indemnity. 4. That the right of way claimed is at the point least prejudicial to the servient estate; and in so far as consistent with this rule, where the distance from the dominant estate to a public highway may be the shortest. (Art. 649) A person may construct a stop lock or sluice gate in the bed of the stream from which the water is to be taken, for the purpose of irrigating or improving an estate. He may demand that the owners of the banks permit its construction, after payment of damages, including those caused by the new easement to such owners and to the other irrigators. g. Right of Way What is the Easement of Right of Way? This is the easement or privilege by which one person or a particular class of persons is allowed to pass over another’s land, usually through one particular path or line. (Art. 649, Civil Code) Who May Demand [Art. 649, Civil Code] 1. The owner of the dominant estate; or 2. Any person with the real right to cultivate or use the dominant estate e.g. a usufructuary, a de jure possessor. What are the requisites for easement of right of way? 1. The property is surrounded by estates of others, 2. There is no adequate outlet to a public highway a. An adequate outlet is one that is sufficient for the purpose and needs of the dominant owner, and can be established at a reasonable expense. b. Even if there is access, it is difficult or dangerous to use, or grossly insufficient; c. Mere inconvenience in the use of an outlet does not render the easement a necessity. Note: A lessee cannot demand such easement, because the lessor is the one bound to maintain him in the enjoyment of the property. A right of way can be established through the will of parties as well, and the provisions on the legal easement of right of way will not govern. Legal Easement for National Government Infrastructure Projects R.A. 10752 provided for the guidelines in establishing a LEGAL EASEMENT for RIGHT of WAY for national government infrastructure projects which may be through donation, negotiated sale, expropriation, or any other mode of acquisition as provided by law. Sec. 4. When the project involves subsurface or subterranean installations more than 50 meters from the surface, the entry into the portions of the private or government lands cannot be prevented by the surface owners. Sec. 6 In case of expropriation, the court shall issue the Writ of Possession in favor of the government agency implementing the project seven days after the required deposit of the value of the land is made to the court, ex parte. Sec. 15. R.A. 8974 is repealed; thereby removing the prohibition for TROs and preliminary injunctions issued by lower courts. Notes on Extinguishment Extinguishment is not automatic. The owner of the servient estate must ask for such extinguishment. 282 BOC 2024 PROPERTY CIVIL LAW commenced to exercise it upon the servient estate Indemnity paid to the servient owner must be returned without interest. Interest on account of indemnity is deemed to be rent for use of easement. An easement continues by operation of law. Alienation of the dominant and subservient estates to different persons is not a ground for extinguishment of easements absent a statement extinguishing it. (Tañedo v. Bernad, G.R. No. L-66520, 1988) h. Light and View i. Power Lines R.A. 11361 (Aug. 18, 2019) established the easement of power lines to ensure the continuous and uninterrupted transmission and distribution of electricity and protect the integrity and reliability of power lines. Sec. 6. Planting tall growing plants and installing other structures that breach the height of the power line corridor are prohibited. How Acquired Through a period of prescription of ten (10) years, counted depending on whether it was positive or negative in nature. Sec. 8. Pruning of trees shall not be prevented subject to prior notice to the owner of the property. Kind of Easement Positive Easement Negative Easement Nature Imposes upon the servient owner the obligation of allowing something to be done, or doing it himself [Art. 616, Civil Code] Prohibits the servient owner from doing something which he could lawfully do if the easement did not exist [Art. 616, Civil Code] From the day on which the owner of the dominant estate, or the person who have made use of the the easement, From the day on which the owner of the dominant estate forbade, by an instrument acknowledged before a notary public, the owner of the servient estate, Computation of Time Possession (Art. 621) from executing an act which would be lawful without the easement Sec. 15. The power of eminent domain is granted to power supply franchisees. III. MODES OF ACQUIRING EASEMENTS Easements; How Acquired. (TPDFAS) 1. By Title - through judicial acts like law, donation, contract, and will (Art. 620, Civil Code) 283 BOC 2024 2. By Prescription - acquired after 10 years of adverse possession or frequent exercises. NOTE: This applies only to continuous and apparent easement, either: (a) Positive from the day the dominant owner begins to exercise it (e.g., party wall) (b) Negative from the day in which notarial prohibition is PROPERTY CIVIL LAW made on servient owner (e.g., not to obstruct the passage light) 3. Deed of Recognition - by an affidavit or a formal deed acknowledging the servitude by servient owner. 4. Final Judgment - when a court declares the existence of an easement in an action filed for the purpose. NOTE: Resultantly, when the court says that an easement exists, it is not creating one. For, even an injunction cannot be used to create one as there is no such thing as a judicial easement. The court merely declares the existence of an easement created by the parties. (La Vista Association v. CA, GR No. 95252, 1997) Discontinuous and Apparent (CA) YES NO Discontinuous Nonapparent (CNA) YES NO NOTE: All easements may be acquired by title, but only continuous and apparent easements may be acquired by prescription. IV. Rights and Obligations of the Owners of the Dominant and Servient Estates Rights of Dominant Estate Owner 1. To make on the servient estate all the works necessary for the use and Preservation of the servitude, provided: a. This must be at his own expense b. He must notify the servient owner c. Select convenient time and manner d. He must not alter the easement nor render it more burdensome (Art. 627, NCC) 2. To ask for mandatory Injunction to prevent impairment of his use of the easement; 3. To Renounce totally the easement if he desires to exempt himself from contribution to necessary expenses (Art. 628, NCC); and 4. To exercise all the rights Necessary for the use of the easement (Art. 625, NCC). 5. Apparent Sign - established by an owner of two adjoining estates. Then one estate is alienated and the easement continuous actively or passively unless at the time of division, it is provided that the easement will cease, or the sign removed before execution of deed (Art. 624) [See case of Sps. Garcia v. Santos (2019), G.R No. 228334] Kind of Easement How Acquired Title Prescription Continuous and Apparent (CA) YES YES Continuous Nonapparent (CNA) YES NO EFFECTS OF EASEMENT Obligations of Dominant Estate Owner 1. He cannot Alter the easement or render it more burdensome (Art. 627, NCC); 284 BOC 2024 PROPERTY CIVIL LAW 2. He cannot use the easement except for the Benefit of the immovable originally contemplated (Art. 626, NCC); 3. He cannot exercise the easement in any other manner than that previously Established (Art. 626, NCC); 4. He may make any works or construct anything which is necessary for the use and Preservation of the servitude (Art. 627, NCC); 5. He shall Notify the servient owner of the works necessary for the use and preservation (Art. 627, NCC); 6. He must choose the most Convenient time and manner in making the necessary works as to cause the least inconvenience to the servient owner (Art. 627, NCC); and 7. He must contribute to the necessary Expenses if there are several dominant estates (Art. 628, NCC). is an agreement to the contrary (Art. 628, NCC). Requisites for a Servient Owner to Change the Place or Manner of Easement (IAIO) 1. The place or manner has become very Inconvenient to the servient owner or prevents him from making important works thereon; 2. He offers Another place or manner equally convenient; 3. No Injury is caused by the change to the dominant owner or to whoever may have right to the use of the easement; and 4. The expenses that will be incurred in the process shall be borne by the Owner of the servient estate (Art. 629, NCC). V. Rights of a Servient Owner (URC) 1. To make Use of the easement (Art. 628, NCC); 2. To Retain ownership and possession of the portion of the estate on which the easement was established (Art. 630, NCC); and 3. To Change the place or manner of the easement, provided it be equally convenient (Art. 629, NCC). EXTINGUISHMENT OF EASEMENT An easement may be extinguished by: 1. Redemption agreed upon between the owners of the dominant and servient estates; Obligations of a Servient Estate Owner (PIRC) 1. He cannot Impair the use of the easement (Art. 629, NCC); 2. In case of impairment, to Restore conditions to the status quo at his expense, plus damages; and 3. To Pay for the expenses incurred for the change of location (Art. 629, NCC); 4. Contribute to the necessary expenses in case he uses the easement, unless there 285 BOC 2024 NOTE: Pertains to voluntary redemption 2. Expiration of the term or fulfilment of the resolutory condition; 3. Merger of the ownership of the dominant and servient estates; 4. Annulment of the title to the servitude; 5. Permanent Impossibility to use the easement; 6. Non-use for 10 years; a. Discontinuous Easement: from day not used b. Continuous Easement: from day an act contrary to easement happens PROPERTY CIVIL LAW 7. Bad condition – when either or both estates fall into such a condition that the easement could not be used; 8. Resolution of the right to create the servitude estate; 9. Expropriation of the servient estate; and 10. Waiver or renunciation by the dominant owner (Art. 631, NCC); 11. Abandonment of the Servient Estate; 12. Eminent Domain; 13. Annulment or Rescission of title constituting the easement; 14. Termination of the right of the grantor. (RABUYA, 2021) Difference between Nuisance and Negligence NUISANCE Nuisance I. Wong, G.R. No. 192861, June 30, 2014) (Art. 694); or 5. Obstructs or interferes with the free passage of any public highway or street, or any body of water (e.g. Permanent obstructions on barrio roads, such as illegally constructed houses, are injurious to public welfare and convenience. The occupation and use of private individuals of public places devoted to public use constitute public and private nuisances and nuisance per se [Alolino v. Flores, G.R. No. 198774 (2016)]; CLASSES OF NUISANCE A nuisance is any act, omission, establishment, business, condition of property, or anything else which: (ISAOH) 1. Injures or endangers the health or safety of others (e.g. House in danger of falling, fireworks or explosives factory, houses without building permits and without provisions for disposal of waste matter) [Ayala v. Barretto, G.R. No. L-9966 (1916)]; or 2. Annoys or offends the senses; (e.g. leather factory, garbage cans, pumping station with a high chimney, smoke, noise) [Bengzon v. Prov. of Pangasinan, G.R. No. L-41941 (1936)]; or 3. Shocks, defies or disregards decency or morality (e.g. Movie actress strips nude in the lobby of a movie house for sake of publicity for a movie) [Paras]; or 4. Hinders or impairs the use of property. (backfilling, weakening perimeter wall which may cause it to collapse – Rana v Negligence is penalized because of lack of proper care but a nuisance is wrong not because of the presence or absence of care, but because of the injury caused [Paras quoting 39 AmJur 282]. Public Nuisance vs Private Nuisance Public Private A public nuisance affects a community or neighborhood or any considerable number of persons, although the extent of the annoyance, danger or damage upon individuals may be unequal. A private nuisance is one that is not included in the foregoing definition. Nuisance per se vs. Nuisance per accidens Nuisance per se Nuisance per accidens It is an act, occupation or structure which by its very nature, Nuisance becomes such under certain conditions and circumstances (Salao 286 BOC 2024 PROPERTY CIVIL LAW unquestionably is a nuisance regardless of its location or surroundings. v. Santos, G.R. No. L-45519, 1939). As a matter of law As a matter of fact Need only be proved in any locality Depends upon its location and surroundings, the manner of its conduct or other circumstances May be summarily abated under the law of necessity May be abated only with reasonable notice to the person alleged to be maintaining or doing such nuisance II. DOCTRINE OF ATTRACTIVE NUISANCE What is the Doctrine of Attractive Nuisance? Q: Is a swimming pool an attractive nuisance? General Rule: A swimming pool or water tank is not an attractive nuisance, for while it is attractive, it is merely an imitation of the work of nature. Hence, if small children are drowned in an attractive water tank of another, the owner is not liable even if there be no guards in the premises. (Hidalgo Enterprises v. Balandan, et. al, G.R. No. L-3422 June 13, 1952) Exception: There is some unusual condition or artificial feature other than the mere water and its location. Rationale: Children are earlier instructed so that they are sufficiently presumed to know the danger [nature has created streams, lakes, and pools which attract children] III. LIABILITY OF NUISANCE Who are Liable in Case of Nuisance One who maintains on his premises dangerous instrumentalities or appliances of a character likely to attract children at play, and who fails to exercise ordinary care to prevent children from playing therewith or resorting thereto, is liable to a child of tender years who is injured thereby, even if the child is technically a trespasser in the premises [Jarco Marketing Corp. v. CA, G.R. No. 129792 (1999)]. Reason for Doctrine: Although the danger is apparent to those of age, it is so enticing or alluring to children of tender years as to induce them to approach [Ibid]. Elements of attractive nuisance 1. It must be attractive; and 2. Dangerous to children of tender years. 287 BOC 2024 1. Person responsible for creating the nuisance; If the prejudice exceeds the inconveniences that such proximity habitually brings, the neighbor who causes such disturbance is held responsible for the resulting damage, being guilty of causing nuisance [Velasco v. Manila Electric Co., G.R. No. L-18390 (1971)]. 2. Every successive owner or possessor of property who fails or refuses to abate a nuisance in that property started by a former owner or possessor is liable therefore in the same manner as the one who created it [Art. 696, Civil Code]; a. Provided that he knew of the nuisance and must knowingly fail or refuse to abate the PROPERTY CIVIL LAW nuisance [Paras citing Lambs v. Roberts, 196 Ala. 679]. b. To render the new owner or possessor liable, it is necessary that he has actual knowledge of the existence of the nuisance, and that it is within his power to abate the same. c. If he cannot physically abate the nuisance without legal action against another person, then he shall not be liable for such nuisance. IV. REGULATION OF NUISANCES determine whether or not it was in fact a nuisance. 1. An action for replevin; 2. To enjoin the sale or destruction of the property; 3. An action for the proceeds of its sale and damages if it has been sold; or 4. To enjoin private parties from proceeding to abate a supposed nuisance. Public Nuisance Remedies Against a Public Nuisance 1. A prosecution under the Penal Code or any local ordinance; or 2. A civil action; or 3. Abatement, without judicial proceedings [Art. 699, Civil Code]. General Rule Lapse of time cannot legalize any nuisance, whether public or private [Art. 698, Civil Code]. Note: Arts. 698 and 1143 (2) do not apply to easements which are extinguished by obstruction or non-use for ten (10) years under Art. 631 [Ongsiako v. Ongsiako, G.R. No. L-7510 (1957)]. Note: The three remedies against a public nuisance enumerated under Art. 699 are not exclusive but cumulative [De Leon]. The abatement of a nuisance does not preclude the right of any person injured to recover damages for its past existence [Art. 697, Civil Code]. Criminal prosecution is instituted only for “public nuisance” and not for a private nuisance. The action is brought in the name of the “People of the Philippines” since public nuisances are considered as offenses against the State [De Leon]. Extinctive Prescription No Extinctive Prescription to abate a nuisance or Acquisitive Prescription for the right to use of the property that creates such nuisance. The action to abate a public or private nuisance is not extinguished by prescription [Art. 1143 (2), Civil Code]. Criminal Prosecution is Remedy Only for Public Nuisance Judgment Remedy Defenses to Action Remedies of the Property Owner A person whose property is seized or destroyed as a nuisance may resort to the courts to 288 BOC 2024 with Abatement as a a. If a civil action is brought by reason of the maintenance of a public nuisance, such action shall be commenced by the city or municipal mayor [Art. 701, Civil Code]. b. A private person may file an action on account of a public nuisance if it is especially injurious to him [Art. 703, Civil Code]. PROPERTY CIVIL LAW Requisites of the Right of a Private Individual to Bring a Civil Action to Abate a Public Nuisance [Art. 704, Civil Code] 1. That demand be first made upon the owner or possessor of the property to abate the nuisance; 2. That such demand has been rejected; 3. That the abatement be approved by the district health officer and executed with the assistance of the local police; and 4. That the value of the destruction does not exceed P3,000. Extrajudicial Abatement as a Remedy 1. It must be reasonably and efficiently exercised. 2. Means employed must not be unduly oppressive on individuals. 3. No more injury must be done to them property or rights of individuals than is necessary to accomplish the abatement. 4. No right to compensation if property taken or destroyed is a nuisance. Process for Extrajudicial Abatement: 1. The district health officer shall take care that one or all of the remedies against a public nuisance are availed of [Art. 700, Civil Code]. 2. The district health officer shall determine whether or not abatement, without judicial proceedings, is the best remedy against a public nuisance [Art. 702, Civil Code]. 3. The city or municipal mayor has the authority to abate the nuisance through summary proceedings without judicial proceedings. However, the mayor must first secure certifications from the district health officer and/or the city engineer. The city engineer certifies and declares illegal or dangerous structures, dangerous zones to ensure public safety. (sec. 477, R.A. 7160 Local Government Code; Sitchon v. Aquino [G.R. No. L-8191 (1956)], where the Manila charter authorized the City Engineer to do so.) NOTE: It is the mayor who issues the ORDER to abate the nuisance, either an ORDER to demolish or to remove the structure; not the district health officer or the city engineer, whose duties are only to recommend abatement to the mayor. Nuisances per se Since they affect the immediate safety of persons and property, they may be summarily abated under the undefined law of necessity [Monteverde v. Generoso, supra]. Squatter houses as nuisance per se Squatters who built houses of second-class materials without the knowledge and consent of the city, without the necessary permits have occupied property whenever and wherever convenient to their interests, and even against the will of the owner. They know that intrusion into property, government or private, is wrong. In this situation, the houses and constructions constitute public nuisance per se, which hinders and impairs the use of the property for the construction of a school building to the prejudice of the education of the youth. The public nuisance could be summarily abated by the city authorities, even without the aid of the courts. (City of Manila v Gerardo Garcia, G.R. No. L-26053, 1967) NOTE: Due process in the eviction of squatters must be observed in accordance with R.A. 7279 289 BOC 2024 PROPERTY CIVIL LAW UDHA – Urban Development and Housing Act, approved March 24, 1992. a reasonable time to enable the other to abate the nuisance himself. 4. The means employed must be reasonable and for any unnecessary damage or force, the actor will be liable. The right to abate is not greater than the necessity of the case and is limited to the removal of only so much of the objectionable thing as actually causes the nuisance. 5. The property must not be destroyed unless it is absolutely necessary to do so. Nuisances per accidens If no compelling necessity requires the summary abatement of a nuisance, the municipal authorities, under their power to declare and abate nuisances, do not have the right to compel the abatement of a particular thing or act as a nuisance without reasonable notice to the person alleged to be maintaining or doing the same of the time and place of hearing before a tribunal authorized to decide whether such a thing or act does in law constitute a nuisance. (Iloilo Cold Storage v. Municipal Council, supra) Noise pollution is not a nuisance per se, but a nuisance per accidens. Noise can be considered a nuisance only if it affects injuriously the health or comfort of ordinary people in the vicinity to an unreasonable extent. Noise pollution tests measuring the decibel levels of the sound complained of must show that the level is higher than the normal level experienced in a particular location. This would differ if the location is near a busy street or in a remote area. (Frabelle Properties v AC Enterprises, G.R. No. 245438, 2020) Rules on Abatement 1. The right must be exercised only in cases of urgent or extreme necessity. The thing alleged to be a nuisance must exist at the time that it was alleged to be a nuisance. 2. A summary abatement must be resorted to within a reasonable time after knowledge of the nuisance is acquired or should have been acquired by the person entitled to abate. 3. The person who has the right to abate must give reasonable notice of his intention to do so, and allow thereafter DIFFERENT MODES OF ACQUIRING OWNERSHIP Different Modes of Acquiring Ownership a. b. c. d. e. f. Occupation Tradition Donation Prescription Intellectual Creation Testate and Intestate Succession Note: Only items a-d are discussed in Property. Item e is discussed in the Intellectual Property Code part of the Commercial Law reviewer. Item f is discussed in the Succession part of this same reviewer. I. OCCUPATION Requisites 290 BOC 2024 1. There must be seizure of a thing. 2. The thing seized must be corporeal personal property. 3. The subject must have the intention to acquire ownership and the necessary capacity to consent. 4. The object must be appropriable by nature and without an owner. PROPERTY CIVIL LAW Rules Pigeons and Fish A. ON LAND General rule The ownership of a piece of land cannot be acquired by occupation (Art. 714.) Belongs to the owner of the breeding place into which they have moved (Art. 717.) Exception B. ON ANIMALS Wild animals The right to hunt and to fish is regulated by special laws. (Art. 715) Possessed only while under a person’s control (Art. 560.) When wild animals regain their natural freedom, they resume being res nullius and can be owned by occupation through hunting or fishing. Domesticated animals Domesticated animals are those who retain the habit of returning to the premises of their owner (Art. 560.) Belongs to the prior owner if movement was enticed by some artifice or fraud (Art. 717.) C. ON OTHER PROPERTY Abandoned Movables May be acquired, as long as the abandonment made by the prior possessor is voluntary and intentional (Art. 713.) Lost Movables (except treasure) Known/Unknown Possessor 1. If prior possessor is known, the thing must be returned to him/her; 2. If prior possessor is unknown, the thing must be deposited with the mayor of the city/municipality where it was found (Art. 719.) They are claimable by prior owner within twenty (20) days from occupation by another person. After 20 days, the animal can be caught and kept by another person. (Art. 716.) Swarm of bees Prior owner has the right to pursue them to another’s land, but is liable for damages the other person may suffer (Art. 716.) PERSONAL Procedure Other persons may occupy or retain the swarm if prior owner: 1. Has not pursued the swarm; or, 2. Ceased to pursue the swarm within two (2) consecutive days from movement towards other person’s property (Art. 716.) The 2-day period in Art. 716 applies to both instances where the owner does not pursue the swarm and when he ceases to pursue them. 291 BOC 2024 1. The mayor publicly announces the finding of the thing for two (2) consecutive weeks in the way he deems best. 2. If the item cannot be kept without deterioration or without expenses that considerably diminish its value, it shall be sold at public auction eight (8) days after the publication. 3. If the owner does not appear within six (6) months from publication, the thing or its value shall be awarded to the finder. PROPERTY CIVIL LAW 4. If the owner appeared in time, the owner is obliged to pay the finder one-tenth (1/10) of the price of the thing. Distinction between Occupation and Possession Occupation is different from possession because the latter: a) covers any property; b) raises only a presumption when done by a person in the concept of an owner; and c) can be carried out as a holder and not as owner. Possession is wider in scope than occupation because it includes constructive possession. Hidden Treasure Any hidden and unknown deposit of money, jewelry, or other precious objects the lawful ownership of which does not appear (Art. 439.) General rule Belongs to the owner of the property where it is found (Art. 438.) Exceptions Circumstances of discovery Entitlement If found on: a. Property of another, the State, or any of its subdivisions ; and b. By chance Only one-half (1/2) shall be allowed to the finder. Finder is a trespasser Finder is not entitled to any share; and, Things are of interest to science or the arts The State may acquire them at their just price, which shall be divided in conformity with the rules stated (Art. 438) R.A. 8492 National Museum Act covers treasure – hunting, where hidden treasure is deliberately found, not by chance. A permit for treasure – hunting from the DENR, the National Museum, and in some instances, from the Office of the President. Different sharing schemes are applied. II. TRADITION A mode of acquiring ownership as a consequence of certain contracts like the contract of sale, barter, assignment, simple loan or mutuum. NOTE: Tradition or delivery by itself is not a mode of acquiring ownership. It becomes a mode of acquiring ownership only when the delivery is based on contract. In other words, without a valid contract, the delivery does not transfer ownership nor cure the defect in the contract. Kinds of tradition 1. Actual delivery consists in placing the thing sold in the control and possession of the vendee (Art. 1497) 292 BOC 2024 PROPERTY CIVIL LAW 2. Legal or constructive delivery may be had through any of the following ways: a. Execution of a public instrument evidencing the sale. If based on a valid contract of sale, then ownership is transferred. (Art. 1498) b. Traditio symbolica, such as the delivery of the keys of the place where the movable sold is being kept (Art. 1498, par. 2) c. Traditio longa manu or by mere consent or agreement if the movable sold cannot yet be transferred to the possession of the buyer at the time of the sale (Art. 1499) d. Traditio brevi manu, if the buyer already had possession of the object even before the sale (Art. 1499); and e. Traditio constitutum possessorium, where the seller remains in possession of the property in a different capacity (Art. 1500.) III. b. Although under Art. 725, donation is an act, it is really a contract. The essential requisites of consent, subject matter, and cause must be present. 5. Necessary form prescribed by law. Features Nature and Effect of Donation It is not enough that the act is gratuitous, there must also be the intent to benefit the donee. (Heirs of Reyes v. Calumpang, G.R. No. 138463, 2006) Donation transfers the title of the property from the donor to the donee. It effectively reduces the patrimony of the donor and increases the donee’s. Effects of Subrogation 1. The donee is subrogated to all the rights and actions which in case of eviction would pertain to the donor; 2. If the donation is simple or remunerative, the donor is not liable for eviction or hidden defects, because the donation is gratuitous; 3. Even if the donation is simple or remunerative, the donor is liable for eviction or hidden defects in case of bad faith on his part; and 4. If the donation is onerous, the donor is liable on his warranty but only to the extent of the burden. (Art. 754) DONATION Art. 725. Donation is an act of liberality whereby a person disposes gratuitously of a thing or right in favor of another, who accepts it. Requisites 1. 2. 3. 4. Capacity of donor to make a donation; Donative intent (Animus donandi); Delivery (actual or constructive); Acceptance by the donee; and a. Acceptance by the donee is required because donation is never obligatory. One cannot be compelled to accept the generosity of another. Persons who may give or receive donations General rule All persons who may contract and dispose of their property (Art. 735.) 293 BOC 2024 PROPERTY CIVIL LAW Exceptions 1. Guardians and trustees cannot donate the property entrusted to them (Art. 736); 2. Minors and others who cannot enter into a contract may become donees but acceptance shall be done through their parents or legal representatives (Art. 741); 3. For donation to conceived and unborn children, acceptance may be made by persons who would legally represent them if they were already born (Art. 742); 4. Donations made to incapacitated persons shall be void (though simulated under the guise of another contract or through a person who is interposed) (Art. 743); Incapacitated persons are those prohibited by law to receive a donation from the donee; such as, guilty of adultery or concubinage, guilty of same criminal offense, public officers his spouse, ascendants and descendants by reason of his office, prohibited to succeed by will, donation between spouses or partners during cohabitation. 5. When the same thing is donated to two or more different donees, rules on double sale govern (Art. 744) a. If movable property - ownership goes to the first possessor in good faith; b. If immovable property ownership goes to the first registrant in good faith (Art. 1544.) Classifications As to taking effect a. Donation inter vivos - takes effect during the donor’s lifetime (Arts. 729- 731, Civil Code) b. Donation mortis causa - takes effect upon the donor’s death (Art. 728, Civil Code) c. Donation propter nuptias - made by reason of marriage and before the celebration of which, for the spouses [Art. 82, Family Code] As to consideration a. Simple Donation - the consideration is the liberality of the donor or based on the donee’s merits (Arts. 725-726) b. Remuneratory Donation - given on account of the services provided by the donee to the donor which do not constitute a demandable debt c. Modal Donation - imposes a burden on the donee which is less than the value of the gift d. Onerous Donation - where the value of the donated property exceeds the value of the thing it is given for (Art. 733, Civil Code) As to extinguishment a. Pure Donation - not subject to a condition or period b. Conditional - subject to a condition c. With a term - subject to a resolutory or suspensive condition Inter Vivos vs. Mortis Causa Inter Vivos Mortis Causa Disposition and acceptance to take effect during lifetime of donor and donee Disposition happens upon the death of donor; acceptance by donee can only be done after donor’s death Already pertains to the donee unless there is a contrary intent Even if there is a term of effectivity and effectivity is upon the death of the donor, 294 BOC 2024 PROPERTY CIVIL LAW still entitled to fruits Formalities required follow law on donations and certain kinds of donations and law on obligations and contracts (suppletory) Formalities required follow law on succession to be valid, and donation must be in the form of a will Irrevocable at the instance of the donor; may be revoked only by reasons provided by law Revocable ad mutuum (exclusive will of donor) Revoked only for reasons provided for by law (except onerous donations Note: A donation mortis causa must comply with the formalities of a last will and testament otherwise; it would be void and would produce no effect. (Maglasang v. Heirs of Corazon Cabatingan, GR No. 131953, 2002) If the donation is made in such a way that the full and naked ownership will pass to the donee upon the death of the donor, then it is at that time when the donation will take effect and it is the donation mortis causa which should be embodied in the last will and testament. (Maglasang v. Cabatingan, GR No. 131953, 2002) donor is still alive. (Sicad v. CA, GR No. 125888, 1998) Where, however, a donation was made stipulating that it would take effect after the death of the donor but further stipulated that (1) the donor will not dispose nor take it away from the donee and that (2) the donor is parting with the beneficial ownership while he lived was held to be inter vivos. In case of doubt, the conveyance should be deemed donations inter vivos, rather than mortis causa, in order to avoid uncertainty as to the ownership of the property subject of the deed (Villanueva v. Spouses Branoco, GR No. 173804, 2011). The reservation of the “right, ownership, possession and administration of the property” and made the donation operative upon death, in the context of an irrevocable donation, simply means that the donors parted with their naked title, maintaining only beneficial ownership of the donated property while they lived. (Del Rosario vs. Ferrer, GR No. 187056, 2012) The title or general description of the documentation of a donation will not be the governing factor in determining the kind of donation. (Del Rosario v. Ferrer, supra) Formalities required Movable Property Rules for determining whether a donation is one inter vivos or mortis causa Where a donation was made “in consideration of love and affection” but further stipulated that “It became effective upon the death of the donor provided that in the event the donee should die before the donor, the donation would be deemed automatically rescinded,” the Court held that the same was a mortis causa since the right of disposition was not transferred to donee while a. If the value exceeds P5,000, the donation and acceptance shall be made in writing. Otherwise, the donation shall be void. b. If the value is below P5,000, donation may be made orally or in writing. c. If oral, it must be with simultaneous delivery of the thing or of the document representing the right donated. (Art. 748) Immovable Property 295 BOC 2024 a. To be valid, donation must be made in a PROPERTY CIVIL LAW public instrument, specifying therein the property donated and the value of the charges which the done must satisfy. If donation is made in a private document, it is void. b. The acceptance of the donee may be made in the same deed of donation or in a separate public document. c. If the acceptance is made in a separate instrument, the donor shall be notified thereof in an authentic form, and this step shall be noted in both instruments. d. Acceptance must be made during the lifetime of the donor. (Art.749) heirs. The purpose is not to impair their legitimes. A donation would not be legally feasible if the donor has neither ownership nor real rights that he can transmit to the donee. (Hemedes v. CA, GR No. 107132, 2008) Reduction and revocation Revocation 1. 2. 3. 4. Rules on double donations General Rule Priority in time, priority in right. 1. If movable – one who first takes possession in good faith 2. If immovable – one who recorded in registry of property in good faith a. No inscription, one who first took possession in good faith b. In absence thereof, one who presents oldest title Limitations 1. Reservation of sufficient means for support of donor and relatives. ● Donation may comprehend all present properties of the donor, or part thereof, provided he reserves sufficient means for his support and of relatives who, at the time of the acceptance of the donation, are by law entitled to be supported by the donor. Otherwise, the donation will be subject to reduction upon petition of any person affected. (Art. 750) 2. Donation of future property is prohibited. (Art. 751) 3. Donation shall be limited to what the donor may give by will. Otherwise, the donation is inofficious (Art. 752). ● The limitation applies when the donor has forced or compulsory Affects the whole donation Applies only to donation inter vivos Not applicable to onerous donations Donor can revoke donation if the donee fails to comply with the conditions imposed by the donor. Grounds for revocation 1. Birth, adoption, reappearance of child It applies when the donor, at the time he made the donation, did not have any child or descendant, or erroneously thought so. Donation may be revoked or reduced when: a. Donor should have any children, after donation, even though they be posthumous b. Donor’s child whom he believed to be dead when he made the donation, turn out to be living c. Donor subsequently adopts a minor child (Art. 760) This contemplates a donation inter vivos. It can only be reduced if the legitime of the child who appeared or reappeared will be adversely affected; otherwise, the court will not allow the donation to be revoked. 2. Ingratitude The donation may also be revoked by reason of ingratitude in the following cases: a. Donee should commit some offense against the person, honor or property of the donor, or of his wife, or children 296 BOC 2024 PROPERTY CIVIL LAW under his parental authority. b. Donee imputes to the donor any: i. Criminal offense; or ii. Any act involving moral turpitude; c. Donee unduly refuses to give support when the donee is legally or morally bound to give support to the donor. (Art. 765) 1. Birth, appearance, or adoption of a child Same case as revocation (only if the child’s legitime will be impaired.) 2. Failure to reserve Failure of the donor to reserve sufficient means for support of himself or dependent relatives 3. Fraud against creditors Failure of donor to reserve sufficient property to pay off existing debts Period for action prescribes within one year, counted from the time the donor: a. Had knowledge of the fact; and b. It was possible for him to bring the action. (Art. 769) Note: This is not actually an action to reduce a donation. It is rather an action to rescind a rescissible contract called Accion Pauliana. Reduction of the donation is the end result or consequence once the prayer or relief in the complaint is granted. 4. Inofficiousness The donation exceeds that which the donor can give by will. 3. Non-compliance with conditions Donation may be revoked when the donee fails to comply with any of the conditions which the donor imposed. The alienations and mortgages made by the donee are void, subject to the limitations imposed by the Mortgage Law and Land Registration laws with regard to third persons. Cause of action arising from the inofficiousness of donation arises only upon death of the donor, as the value of the donation will be contrasted with the net value of the estate of the donor decedent. (Eloy Imperial v. CA, GR No. 112483, 1999) General Rule Action prescribes after 4 years from the noncompliance with the condition. Note: This action may be transmitted to the heirs of the donor and may be exercised against the donee’s heirs. (Art. 764) Exception PREMISE: If the deed of conditional donation does not fix a period for fulfilment of the condition, the Court shall fix the period. However, in a case where 50 years had passed without the condition having been fulfilled, the Court refused to fix a period and ruled that for failing to comply with the conditions of the donation, such donation can be revoked. (Central Philippine University v. CA, GR No. 112127, 1995) Reduction 1. affects only a part of the donation 2. allowed during the donor’s lifetime or after his/her death Grounds for reduction IV. PRESCRIPTION By prescription, one acquires ownership and other real rights through the lapse of time in the manner and under the conditions laid down by law. In the same way, rights and conditions are lost by prescription (Art. 1106) PRESCRIPTION is a question of fact that must be proved with clear and convincing evidence to determine the date when the period to bring an action commended. (James v Eurem Realty Development, cited in De Leon, p. 722) Who may acquire by prescription Persons who are capable of acquiring property or rights by the other legal modes may acquire 297 BOC 2024 PROPERTY CIVIL LAW the same by means of prescription (Art. 1107 par. 1) d. Action to quiet title if plaintiff is in possession Minors and other incapacitated persons may acquire property or rights personally or through their parents, guardians, or legal representatives (Art. 1107 par. 2) When the plaintiff is in possession of the property, the action to quiet title does not prescribe. The reason is that the owner of the property or right may wait until his possession is disturbed or his title is assailed before taking steps to vindicate his right. When prescription is inapplicable e. Void contracts a. By offender Art. 1133. Movables possessed through a crime can never be acquired through prescription by the offender. An action to recover from the criminal is imprescriptible. The buyer of stolen goods loses the thing to the owner because the thief did not acquire ownership over it, and therefore cannot transfer anything. Nemo dat quod non habet – one cannot give what one does not have. (Odrada v Lazaro, Jan. 20, 2020) If the buyer bought the goods at public sale in good faith he must still return it to the owner, who will reimburse him for the price paid. The sale must have a publication of notice for the general public. (Art. 559) The State does not issue any warranty for properties sold by the sheriff at public auction. b. Registered Lands No title to registered land in derogation of the title of the registered owner shall be acquired by prescription or adverse possession [Property Registration Decree, PD 1529]. c. Actions to demand a right of way; to abate a nuisance (Art. 1143) The action or defense for the declaration of the inexistence of a contract does not prescribe (Art. 1410) f. Action to demand partition; distinguished from laches No prescription shall run in favor of a coowner or co-heir against his co-owners or coheirs so long as he expressly or impliedly recognizes the co-ownership (Art. 494) g. Property of public dominion Prescription, both acquisitive and extinctive, does not run against the State in the exercise of its sovereign function to protect its interest except with respect to its patrimonial property which may be the object of prescription (Art. 1113) Types 1. Acquisitive Prescription The acquisition of ownership and other real rights through possession in the concept of ownership of a thing in the manner and condition provided by law. Ordinary Ordinary acquisitive prescription requires possession of things in good faith and with just title for the time fixed by law. Note: Ownership 298 BOC 2024 PROPERTY CIVIL LAW and other real rights over immovable property are acquired by ordinary prescription through possession of ten (10) years (Art. 1134, Civil Code) ii. through uninterrupted possession for thirty (30) years without need of just title or good faith for extraordinary acquisitive prescription. (Republic v. Pasig Rizal, G.R. No. 213207, 2022) Extraordinary Extraordinary acquisitive prescription is the acquisition of ownership and other real rights without need of title or of good faith or any other condition. Note: Good faith consists in the reasonable belief that the person from whom he received the thing was actually the owner thereof and could transfer his ownership (Art. 1127) 2. Extinctive Prescription Acquisitive vs. Extinctive Prescription The loss or extinguishment of property rights or actions through the possession by another of a thing for the period provided by law or through failure to bring the necessary action to enforce one’s right within the period fixed by law. Requisites 1. Capacity to acquire by prescription; 2. A thing capable of acquisition by prescription; 3. Possession of the thing under certain conditions; and 4. Lapse of time provided by law Periods 1. Movables a. 4 years ‐ If in good faith; and, b. 8 years ‐ If in bad faith (Art. 1140 in relation to Art. 1132) 2. Immovables a. 10 years ‐ If in good faith b. 30 years ‐ If in bad faith prescription, ownership over real property may be acquired through the lapse of time in the manner and under the conditions laid down by law, that is: i. through uninterrupted possession in good faith and with just title for a period of ten (10) years for ordinary acquisitive prescription; or Acquisitive Prescription Extinctive Prescription Acquisition of ownership and other real rights through possession in the concept of ownership of a thing in the manner and condition provided by law. Extinction of the right due to the passage of time. Also referred to as adverse possession. Also referred to as litigation of action. Expressly vests the property and raises a new title in the occupant. Bars the action. The controlling feature is the claimant in possession. The controlling feature is the owner out of possession. right of Prescription vs. Laches Prescription Laches Concerned with the fact of delay. Concerned with the effect of delay A matter of time Principally a question of inequity of permitting a claim to be enforced, this inequity being 299 BOC 2024 PROPERTY CIVIL LAW founded on some subsequent change in the condition or the relation of the parties. Statutory Not statutory Applies at law Applies at equity Cannot be availed of unless it is especially pleaded as an affirmative allegation. Being a defense of equity, need not be specifically pleaded. 300 BOC 2024
0
You can add this document to your study collection(s)
Sign in Available only to authorized usersYou can add this document to your saved list
Sign in Available only to authorized users(For complaints, use another form )