PROPERTY - Prof. Labitag Page 1 of 27
PROPERTY - Prof. Labitag Page 1 of 27
Labitag Page 1 of 27
I. DEFINITION OF PROPERTY
a. By Nature those which cannot be moved
from place to place
PROPERTY
Is an economic concept, meaning a mass of things
Art 415, Par 1 Land, buildings, road and constructions of all
useful to human activity and which are necessary
kinds
to life, for which reason they may be organized
Art 415, Par 8 Mines, quarries and slag dumps
and distributed in one way or another, but, always
for the good of the main.
b. By Incorporation
In order that a thing may be considered as
property:
Art 415, Par 2 Trees, plants and growing fruits
o Utility capacity to satisfy human wants
Art 415, Par 3 Everything attached to an immovable
o Individuality or Substantivity an
Art 415, Par 7 Fertilizers
autonomous or separate existence;
materials composing a thing are not thing
c. By Destination
in themselves.
o Appropriability or susceptibility to
Art 415, Par 4 Statues, reliefs, paintings and other objects
appropriation
for use or ornamentation
Art 415, Par 5 Machines, receptacles, implements and
A. Classification under the Civil Code
instruments
Art 415, Par 6 Animal houses, pigeon-houses, beehives,
1. Immovable or Real Property
fishponds and breeding places of similar nature
Art 415, Par 9 Docks and structures
1. Lands, buildings, road and constructions of all
kinds adhered to the soil.
d. By Analogy
2. Trees, plants, growing fruits while they are
attached to the land or form an integral part
Art 415, Par 10 Contracts for public works, servitudes and
of an immovable
other real rights over immovable property
3. Everything attached to an immovable in a
fixed manner, in such a way that it cannot be
Movables or Personal Property
removed without breaking the material or
deterioration of the object
Art 416 The following are things deemed to be movable
4. Statues, reliefs, paintings or other objects for
property:
use or ornamentation, placed in buildings or
(1) Those movables susceptible of appropriation
on lands by the owner of the immovable in
which are not included in the preceding article
such a manner that it reveals the intention to
(2) RP which by any special provision of law is
attach them permanently to the tenements
considered as personalty
5. Machineries, receptacles, instruments and
(3) Forces of nature which are brought under the
implements intended by the owner of the
control by science
tenement for industry or works which may be
(4) In general, all things which can be transported
carried on in a building or on a piece of land,
from place to place without impairment of the real
and which tends directly to meet the needs of
property to which they are fixed (c.f. Art 415 No 3)
the said industry or works
6. Animal houses, pigeon houses, beehives, fish
Art 417 The following are also considered as personal
ponds or breeding places of similar nature, in
property:
case their owner has placed them or
(1) Obligations and actions which have for their
preserves them with the intention to have
objects movables or demandable sums
them permanently attached to the land, and
(2) Shares of stock of agricultural, commercial and
forming a permanent part of it; the animals in
industrial entities, although they may have real
these places are included;
estate
7. Fertilizer actually used on a piece of land
8. Mines, quarries, and slag dumps, while the
matter thereof forms part of the bed, and
DAVAO SAWMILL v CASTILLO ()
waters either running or stagnant
BERKENKOTER v CU UNJIENG ()
9. Docks and structures which, though floating
LOPEZ v OROSA ()
are intended by their nature and object to
TUMALAD v VICENCIO ()
remain at a fixed place on a river, lake or coast
ASSOCIATED INSURANCE v IYA ()
10. Contract for public works and servitudes and
MAKATI LEASING v WEAREVER ()
other real rights over immovable property
PROPERTY Prof. Labitag Page 2 of 27
1. Res Nullius does not belong and are not enjoyed 3. Private Property
by anyone e.g. abandoned property and hidden
treasure a. Patrimonial Property of State
Art 421 see above
2. Public Dominion owned by the state but enjoyed
by all its citizens b. Patrimonial Property of Municipal
cf. Patrimonial Property of State Corporations
Art 424, Par 2 see above
Art 419 Property is either of public dominion or private
ownership. c. Private Property of Private Persons
Art 425 Property of private ownership,
Art 420 The following are things of public dominion: besides the patrimonial property of the
(1) Those intended for public use, such as roads, State, provinces, cities and municipalities,
canals, rivers, torrents, ports and bridges, consists of all property belonging to
constructed by the State, banks, shores, private persons, either individually or
roadsteads and other of similar character collectively.
(2) Those which belong to the State, without being for
public use, and are intended for some public TANTOCO v MUNICIPAL COUNCIL ()
service or for the development of national wealth ZAMBOANGA DEL NORTE v CITY OF ZAMBOANGA ()
SALAS v JARENCIO ()
Art 421 All other property of the State, which is not of the CEBU ACETYLENE v BERCILLES ()
character stated in the preceding article, is patrimonial MUNICIPALITY OF SAN MIGUEL v FERNANDEZ ()
property GOVERNMENT v CABANGIS ()
CHAVEZ v PEA AMARI (2002)
Art 422 Property of public dominion, when no longer ON MOTION FOR RECONSIDERATION (2003)
intended for public use or public service, shall form part of
the patrimonial property of the State. 4. Effect and Significance of Classification of Property
as Property of Public Dominion
Art 424 Property for public use, in the provinces, cities, and
municipalities, consists of the provincial roads, city streets, a. Property is outside the commerce of man
municipal streets, the squares, fountains, public waters, b. Property cannot be the subject of
promenades and public works for public service paid for by acquisitive prescription
said provinces, cities, or municipalities. c. Property cannot be attached or levied
All other property possessed by any of them is patrimonial, upon in execution
and shall be governed by this Code, without prejudice to the d. Property cannot be burdened with a
provisions of special laws. voluntary easement
exist in space and have a body, whether b. Specific indicates the specie or its nature
animate or inanimate and the individual e.g. white horse of X or
b. Incorporeal personal prestations or acts or house No. 20 at Y Street
services productive of utility. They are not
manifest to the senses but are conceived only 6. By their existence in point of time
by the understanding. They must combine a. Present exist in actuality, either physical or
three requisites: legal e.g. erected building, not that which is
i. External manifested act planned
ii. Personal done by the debtor b. Future do not exist in actuality, but whose
himself existence can reasonably be expected with
iii. Possible when it can be done both more or less probability e.g. ungathered fruits
in nature and in law
7. By reason of contents and constitution
2. By their autonomy or dependence a. Singular
a. Principal those which other things are i. Simple
considered dependent or subordinated e.g. ii. Compound
lands on which a house is built b. Universal when several things collectively
b. Accessory dependent upon or subordinated form a single object in law under one name,
to the principal e.g. house in the preceding which may be in fact e.g. warehouse, herd OR
example in law e.g. inheritance or dowry
a. Whatever is built, planted or sown on Fruits already gathered: owner has to pay,
the land of another and the accession continua does not apply because fruits
improvements or repairs made thereon, have already been separated from the immovable.
belongs to the owner of the land, subject This provision makes no distinction as to good faith
to the provisions of the following articles. and baith faith.
Art 445
b. All works, sowing and planting are D. Kinds of Accession
presumed made by owner and at his
expense, unless the contrary is proved. 1. Accession Discreta (Fruits)
Art 446
c. Accessory is incorporated to principal Art 440 The ownership of property gives the right by
only when cannot be separated without accession to:
injury to the work constructed or o everything which is produced (accession
destruction to plantings, construction or discreta)
works. 2nd phrase, Art 447 o incorporated or attached thereto, either
d. Bad faith involves liability for damages naturally or artificially (accession
and other dire consequences. continua)
e. Bad faith of one party neutralizes bad
faith of the other. Art 453 a. Natural products of the soil in whose generation
human labor does not intervene
3. Applicable to ACCESSION DISCRETA alone b. Industrial if it implies some kind of cultivation or labor
c. Civil rents of lands and buildings, and certain kinds of
a. Ownership of fruits To owner of incomes obtained from the land or building itself
principal thing belongs the NATURAL,
INDUSTRIAL and CIVIL fruits Art 441 BACHRACH v SEIFERT ( )
BACHRACH v TALISAY ( )
EXCEPTIONS:
iii. Possession in good faith 2. Accession Continua
iv. In usufruct
v. In lease (although civil fruits go to Over Immovables
the owner)
vi. In antichresis 1. Artificial or Industrial Building, Planting, Sowing
C. Obligations of Receiver of Fruits to Pay Expenses by 3rd a. Owner is BPS using material of another (LO-BPS and
person in production, gathering and preservation OM)
Art 447 The LO who makes thereon, personally or
Art 443 He who receives the fruit has the obligation to pay through another, plantings constructions, or works with
the expenses made by a third person in their production, the materials of another, shall pay their value and if he
gathering and preservation. acted in bad faith, he shall also be obliged to the
BASIS: no one may unjustly enrich himself at the reparation of the damages. The OM shall have the right
expense of another to remove them only in case he can do so without
Characteristics of expenses covered: injury to the work constructed, or without the
o Dedicated to the annual production and plantings, constructions or work being destroyed.
not for the improvement of the property However, if the LO acted in bad faith, the OM may
o They must not be unnecessary, excessive remove them in any event, with a right to be
or for pure luxury, but must be of such an indemnified for damages.
amount naturally required by the
condition of the work cultivation made LO in good faith
Even if expenses exceed the value of fruits, owner Acquire BPS by paying the value of materials
must pay expenses just the same, because the law
makes no distinction. He who is entitled to the LO in bad faith
benefits must bear the rishk and losses.
WHAT MAY JUSTIFY NON-PAYMENT OF FRUITS: b. BPS builds, plants or sows on anothers land using his
Owner may permit possessor to complete the own material (LO and BPS-MM)
harvesting of fruits Art 448 The
Fruits not yet gathered and possessor is in bad Art 449 The
faith: owner need not pay (Art 449) Art 450 The
Art 451 The
PROPERTY Prof. Labitag Page 8 of 27
A. Differences between Action to Quiet Title and Action: 1. There is a cloud on title to real property or any interest
to real property.
Action to Quiet Title Action to Remove a Cloud Art 476 Whenever there is a cloud on title to real
property OR any interest therein, by reason of any
Substantially an action for Procure the cancellation,
instrument, record, claim, encumbrance, or proceeding
the purpose of putting an delivery of, release of an
which is apparently valid or effective but is in truth and
end to vexatious litigation in instrument, encumbrance or
in fact invalid, ineffective, voidable or unenforceable,
respect to the property claim constituting a claim on
and may be prejudicial to said title, an action may be
involved the plaintiffs title and which
brought to remove such cloud or to quiet the title.
may be used to injure or vex
An action may also be brought to prevent a cloud from
him in the enjoyment of his
being cast upon title to real property or any interest
title
therein.
Plaintiff asserts his own Plaintiff not only declares his
2. Plaintiff has legal or equitable title to or interest in the
estate and declares own title but also avers the
subject/real property.
generally that defendant source and nature of the
3. Instrument record claim, etc must be valid and binding
claims some estate in the defendants claim, points out
on its face, but in truth and in fact, invalid, ineffective,
land, without defining it and its defect, and prays that it
voidable or unenforceable.
avers that the claim is be declared void
4. Plaintiff must return benefits received from defendant.
without foundation and
calls on the defendant to set
TITONG v CA (1998)
forth the nature of his claim
so that it may be
5. Actions to quiet title are proceedings quasi in rem.
determined by decree
SPS. PORTIC v CRISTOBAL (2005)
Action to Quiet Title Action to Prevent a Cloud
Relief is granted if the V. CO-OWNERSHIP
threatened or anticipated
cloud is one which if it
existed, would be removed by A. Definition
suit to quit title
CO-OWNERSHIP
Cloud on a title an outstanding instrument, The right of common dominion which two or more
record, claim, incumbrance or proceeding which is persons have a spiritual part (or ideal portion) or a
actually invalid or inoperative, but which may thing which is not physically divided.
PROPERTY Prof. Labitag Page 10 of 27
viii. Occupation
B. Characteristics of co-ownership
PUNZALAN v BOON LIAT ( )
1. There is plurality of owners, but only one real right of
ownership. ix. Condominium Law
2. The recognition of ideal shares, defined but not Sec 6 (c), RA 4726
physically identified.
3. Each co-owner has absolute control over his ideal 2. Contracts
share.
4. Mutual respect among co-owners in regard to use and a. By agreement
enjoyment and preservation of thing as a whole. Duration of co-ownership: Art 494
b. Effect of partition
J. Extinguishment of co-ownership Art 1091
Art 543
1. Total destruction of thing Art 1092
Art 1093
2. Merger of all interests in one person Art 499
Art 500
3. Acquisitive prescription Art 501
c. Acts by violence as long as possessor objects 2. Entitlement to fruits possessor in good faith/bad
thereto (i.e. he files a case) faith
Art 536 Art 544
Art 549
CUAYCONG v BENEDICTO ()
ASTUDILLO v PHHC () 3. Reimbursement for expenses possessor in good
PERAN v CFI () faith/bad faith
Liability for loss or deterioration of property by
4. Rule to solve conflict of possession possessor in bad faith
Art 538 Art 553
Art 552
GENERAL RULE: Possession cannot be recognized in two
different personalities. 4. Possession of movable acquired in good faith (in
EXCEPTION: In cases of co-possession by co-possessors concept of owner) is equivalent to title
without conflicting claims or interest Art 559
Possessor has actual title which is defeasible only
In case of conflicting possession, preference is given to: by true owner
a. Present possessor or actual possessor One who has lost a movable or has been
b. If there are 2 or more possessors, the one longer unlawfully deprived thereof may recover it but
in possession without reimbursement
c. If dates of possession are the same, the one who EXCEPT: If possessor acquired it at a public sale
presents a title
d. If all conditions are equal, the thing shall be placed I. Effect of possession in the concept of an owner
in judicial deposit pending determination of
possession or ownership through proper 1. Possession may by lapse of time ripen into full
proceedings ownership, subject to certain exceptions.
a. Right to possess and enjoy the thing itself, its fruits i. REQUISITES OF INVENTORY
and accessions 1) Immovables described
Fruits consist of natural, industrial and civil 2) Movables appraised
fruits
As to hidden treasure, usufructuary is ii. EXCEPTION TO REQUIREMENT OF INVENTORY
considered a stranger 1) No one will be injured thereby
Art 566 Art 585
Art 436 2) Title constituting usufruct excused
Fruits pending at the beginning of usufruct the making of inventory
Art 567 3) Title constituting usufruct already
Civil fruits makes an inventory
Art 569
Art 588 b. To give a bond for the faithful performance of
duties as usufructuary
b. Right to lease the thing
PROPERTY Prof. Labitag Page 17 of 27
BD. OF ASSESSMENT APPEALS OF ZAMBOANGA DEL SUR v 2. Expiration of period or fulfillment of resolutory
SAMAR MINING COMPANY INC () condition imposed on usufruct by person constituting
the usufruct
e. To notify owner of any act detrimental to Time may elapse before a third person attains a
ownership certain age, even if the latter dies before period
Art 601 expires unless granted only in consideration of
his existence
f. To shoulder the costs of litigation re usufruct Art 606
PROPERTY Prof. Labitag Page 18 of 27
b. If destroyed property is not insured 9. It is a real right, i.e. it gives an action in rem or real
Art 607 action against any possessor of servient estate.
PROPERTY Prof. Labitag Page 19 of 27
Art 653
H. Legal Easements Art 654
Art 655
1. Law governing legal easements Art 656
Art 657
a. For public easements
i. Special laws and regulations relating QUIMEN v CA (1996)
thereto CHAN v CA ()
1) PD 1067 Water Code LA VISTA ASSN v CA (1997)
2) PD 705 Forestry Reform Code VDA. DE BELTAZAr v CA ()
ii. Provisions of Chapter 2, Title VII, Book II SPS. DELA CRUZ v RAMISCAL (2005)
of CC (Legal Easements)
c) The easement of party wall
b. For private legal easements
i. By agreement of the interested parties Art 658
whenever the law does not prohibit it Art 659
and no injury is suffered by a 3rd person Art 660
ii. By the provisions of Chapter 2, Title VII, Art 661
Book II of CC (Legal Easements) Art 662
Art 663
2. Private legal easements provided for by the New Civil Art 664
Code Art 665
Art 666
a) Those established for the use of water or
easements relating to waters d) The easement of light and view
3. Rules in Art 748 and Art 749 not applicable to: A. In general
a. Onerous donations
b. Modal donations SHOPPERS PARADISE REALTY v ROQUE (2004)
c. Mortis causa donations
d. Donations propter nuptias 1. Donee may demand actual delivery of thing
donated
What may be donated
2. Donee is subrogated to rights of donor in property
1. All present property, or part thereof, of donor donated
Art 754
a. PROVIDED, he reserves in full ownership or
usufruct, sufficient means for support of 3. Donor not obliged to warrant things donated,
himself and all relatives entitled to be EXCEPT in onerous donations in which case donor
supported by donor at the time of acceptance is liable for eviction up to the extent of burden
Art 750 Art 754
b. PROVIDED, that no person may give or 4. Donor is liable for eviction or hidden defects in
receive, by way of donation, more than he case of bad faith on his part
may give or receive by will Art 754
Art 752
5. In donations propter nuptias, donor must release
Also, reserves property sufficient to pay property donated from mortgages and other
donors debts contracted before donation, encumbrances, unless contrary has been
otherwise, donation is in fraud of creditors stipulated
Art 759 Art 131, CC
Art 1387
6. Donations to several donees jointly - no right of
accretion, EXCEPT
2. If donation exceeds the disposable or free portion of his a. Donor provides otherwise
estate, donation is inofficious b. Donation to husband and wife jointly with
right of accretion (jus accrescendi) UNLESS
EXCEPTIONS donor provides otherwise
Art 753
a. Donations provided for in marriage
settlements between future spouses not B. Special provisions
more than 1/5 of present property
Art 84, FC 1. Reservation by donor of power to dispose (in
Art 130, CC whole or in part) or to encumber property donated
PROPERTY Prof. Labitag Page 25 of 27
B. Causes of Reduction/Revocation
LEASE
1. Inofficiousness of donation
Art 752
A. General characteristics of every lease
Art 771
Art 773
1. Temporary duration
Art 911
2. Onerous
Art 912
3. Price is fixed according to contract duration
a. Who may ask for reduction
B. Kinds of leases
Art 772
1. Lease of things movables and immovables
b. Rule applied: If disposable portion is not
sufficient to cover 2 or more donation
2. Lease of work or contract of labor
Art 773
Art 1700
Art 1701
2. Subsequent birth, reappearance of child or
Art 1702
adoption of minor by donor
Art 1703
Art 760
Art 1704
Art 1705
C. Revocation only
Art 1706
Art 1707
1. Ingratitude Art 1708
Art 1709
a. Causes Art 1710
Art 765 Art 1711
Art 1712
PROPERTY Prof. Labitag Page 26 of 27
Art 1763
3. Lease of services
C. Lease of things
a. Household service
1. Concept
b. Contract for a piece of work Art 1643
Art 1713
Art 1714 2. Consumable things cannot be the subject matter of
Art 1715 lease
Art 1716 EXCEPT
Art 1717 Art 1645
Art 1718 a. Consumable only for display or advertising
Art 1719 (Lease ad pompam et ostentationem)
Art 1720 b. Goods are accessory to an industrial establishment
Art 1721
Art 1722 3. Special characteristics of lease of things
Art 1723 a. Essential purpose is to transmit the use and
Art 1724 enjoyment of a thing
Art 1725 b. Consensual
Art 1726 c. Onerous
Art 1727 d. Price fixed in relation to period of use or
Art 1728 enjoyment
Art 1729 e. Temporary
Art 1730
Art 1731 4. Lease distinguished from Sale, Usufruct, Commodatum