Week 8

a. Discuss Article 526.

He is deemed a possessor in good faith who is not aware that there exists in his title or mode of
acquisition any flaw which invalidates it.
He is deemed a possessor in bad faith who possesses in any case contrary to the foregoing.
Mistake upon a doubtful or difficult question of law may be the basis of good faith. (433a)
b. When is a possessor deemed in good faith or in bad faith?
1. A possessor is deemed to be in good faith if he is not aware of the existing flaw or defect
in his title or mode of acquisition that renders it invalid.
2. A possessor is deemed to be in bad faith if he is aware of the existing flaw or defect in
his title or mode of acquisition that renders it invalid.
c. Why is bad faith not transmissible from a person to another?
Bad faith is personal to the possessor. Successors in interest are not necessarily cast into bad
faith just because their predecessors in interest are in bad faith. There is no tacking or
attachment of bad faith, unless the successor in interest had learned of the defect or flaw in the
title, but still purchased or acquired it.
d. Why is good faith always presumed? (Article 527)
Presumptions are generally geared toward the positive aspect of life. Thus, every person is
presumed to be honest or in good faith unless the contrary is proven. The presumption of good
faith is proper and just because possession is the outward sign of ownership. It is presumed that
the right of the possessor is well-founded as every person is presumed to be honest until the
contrary is proven. And unless the bad faith of the possessor has been proven, he will enjoy all
the benefits accruing to a person in good faith.
The person who alleges bad faith on the possessor shall carry the burden of proof that bad faith
actually exists on the part of the possessor.
e. How is the presumption of good faith overturned?
The presumption of good faith stays until it has been overcome by satisfactory and credible
evidence.
f. When will possession in good faith cease under Article 528?
The character of good faith remains until the possessor is shown to have been aware of that he
possesses the thing improperly or wrongfully. Possession in good faith ceases from the moment
defects in the possessor’s title are made known to him by:
a) Extraneous evidence or;
b) By complaint for recovery filed by the true owner.
When the defendant received a letter advising him to desist from using the property in his
possession but belonging to the plaintiff, the possessor’s bad faith began from the receipt of the
letter.
In filing a suit against the defendant, the good faith ceases from the date of receipt of the
complaint by the defendant. In the event that it is undeterminable when the complaint was
received due to insufficiency of the record, the date of the answer will be adopted as the date
where bad faith has begun.
g. Explain presumption of continuity of character of possession. (Article 529)
Possession may be acquired in good faith or in bad faith. Whichever of the two is the original
character of the possession when acquired, the same is presumed to continue as such until the
contrary is proved. Possession is not deemed interrupted if the case was abandoned by the
plaintiff, or when the suit was filed against the possessor was decided in his favor.
h. What are the objects of possession under Article 530?
Possession is the holding of a thing or the enjoyment of a right. But not all things or rights can
be possessed. Only things and rights susceptible of appropriation may be the object of
possession. This means only property as defined under Art. 414 may be possessed (immovable
or real and movable or personal). Moreover, only existing things that can be placed under the
control of man may be possessed. Thus, the stars in the heavens, while they exist, cannot be
possessed by man. Res communes, like sunlight and moonlight cannot be possessed.
i. Discuss the kinds of possessor.
Kinds of possessor may be classified as public and private:
a) Public – when the possessor of the property or things or rights is the Government.
b) Private – when the possessor of the property or things or rights is a private person or
entity.
j. Give examples of things that cannot be possessed by anyone.
There are things which cannot be possessed by the State or by private persons because they
are not subject to appropriation. Ex. The sun and moon; stars in the heavens; air and sunlight;
souls of dead persons; the whole human body of a living person.
k. Discuss Article 531.
Possession is acquired by the material occupation of a thing or the exercise of a right, or by the
fact that it is subject to the action of our will, or by the proper acts and legal formalities
established for acquiring such right. (438a)
l. What are the essential elements of possession?
For possession to exist, it must have the following requisites:
a) Corpus – refers to the existence of the thing and its holding; and
b) Animus – refers to the intent to possess the thing.
Even if somebody is physically holding a thing, but if there is no intention to exercise the right of
a possessor, there is no possession.
m. What are the modes of acquiring possession?
When Corporeal Property is involved:
1. By material occupation of the thing;
2. By subjection to the action of the possessor;
3. By proper acts and legal formalities.
When Rights are involved – possession is acquired by the exercise of the right.
n. Distinguish actual possession from constructive possession.
Actual possession consists in the manifestation of acts of dominion over property of such a
nature as a party would naturally exercise over his own; Constructive possession may be had
through succession, donation, execution, of public instruments, or the possession by a sheriff by
virtue of a court order.
In grammatical sense, to possess means to have, to actually and physically occupy a thing, with
or without right; Two things are paramount in possession – there must be occupancy,
apprehension, or taking, and, there must be intent to possess.
o. What is material occupation.
Occupation is used in its ordinary meaning or general sense and not in its technical meaning
provided in Art 713 of the Civil Code. It is the actual holding of a thing, not of rights. The
possession acquired by material occupation is only possession as a fact not right to possession.
Ex. Possession of a depository over thing deposited to him; possession of a pledgee over the
thing pledged to him; possession of a bailee over the thing lent to him.
p. What are the kinds of constructive delivery equivalent to material occupation?
Constructive delivery is tantamount to material occupation in two situations where material
occupancy of a thing is necessary in the acquisition of possession:
1. Tradicion brevi-manu – when the possessor who is possessing the thing by a title other
than ownership, continues to possess it under a new title, now of ownership. Ex. A
lessee of a property who continues his possession over the property under a new title,
that of an owner, after having purchased it from the previous owner.
2. Tradicion constitutum possessorium – is the opposite of #1. The possessor who is the
owner of the property continues his possession no longer under a title of ownership but
under a title less than ownership. Ex. An owner who sold his property but continues to
possess it as a lessee.
r. What are the kinds of constructive delivery opposite of material occupation?
1. Tradicion symbolica (symbolic tradition) – refers to the constructive delivery of a thing by
the delivery of a mere symbol placing the thing under the control of the transferee.
2. Tradicion longa manu (delivery with the long hand) – refers to the constructive delivery
of a thing by the transferor to the transferee effected by the pointing by the former of the
things to be transferred.
s. When is symbolic delivery not effective?
Symbolic delivery will not be effective if there is an impediment that prevents the passing of the
property from the hands of the vendor to those of the vendee.
t. What are the kinds of possession according to person of possessor? (Article 532)
1. Personal possession – refers to the possession acquired by the same person who is to enjoy
it. He can be an owner of the property or a mere holder. The essential requisites for this kind of
possession are: (a) capacity to possess; (b) intent to possess; and (c) susceptibility of the object
to be possessed.
2. Possession through legal representative – refers to the acquisition of possession through a
legal representative as provided by law or by appointing an agent. The essential requisites are:
(a) capacity of the representative or agent to possess; (b) authority of the representative or
agent to possess; (c) intent of the representative or agent to possess for and in behalf of the
principal, not for himself; and (d) capacity and intent to possess on the part of the principal.
3. Possession through a person without authority – refers to the acquisition of possession
through a person who is not clothed with authority by the supposed “principal”. The essential
requisites are: (a) capacity of the principal to possess; (b) intent of the unauthorized person to
possess for the principal; and (c) the act of ratification by the principal over the acquisition of
possession effected by the unauthorized person. The ratification does not suppress the
consequences of negotiarum gestio, if applicable, with the end view that “no one shall be
unjustly enriched or benefited at the expense of another.
The principal is deemed to have acquired possession from the time the gestor (one who acts for
another, or transacts another's business) had voluntarily took the management of the affairs of
the former. Retroactivity is the better rule to prevent any break or interruption in the possession
acquired by the gestor for the principal. The other rule proposed by Ruggiero is that the
principal’s possession shall begin from the time he has ratified the possession acquired by the
gestor.
u. Why is possession deemed transmitted from the moment of death of the decedent and
without interruption? (Article 533)
Article 533 speaks about the possession of hereditary property or inheritance accepted by an
heir. The possession is deemed transmitted from the moment of death of the decedent and
without interruption. Note that the previous possession of the decedent is tacked to the
subsequent possession of the heir for purposes of prescription (Art. 1138). The heir referred to
includes both compulsory and voluntary heir, in the absence of any qualification or distinction.
v. When is possession not deemed transmitted from the moment of death of the
decedent?
If the heir has repudiated the inheritance due him, although the repudiation was made long after
the death of the decedent, but before partition, said heir is deemed to have never been in
possession of his inheritance.
w. Discuss Article 534. What is the rationale for this Article?
The rationale for Article 534 is that bad faith, being a state of mind, is personal to the person
who acted so. Hence, it is the intransmissible. Its effect must be suffered only by the person
who acted in bad faith. The heir should not be saddled with the consequences of the wrongful
possession of the predecessor.
x. What is the effect of an heir’s possession in bad faith?
The heir will be saddled with the dire consequences of possession in bad faith, if it is shown that
he was aware of the flaws or defects in the possession of his predecessor in interest.
y. What is the effect of the heir’s possession in good faith?
Should there be any benefits derivable from the possession of the property by the decedent
(who was in bad faith) which the heir is supposed to inherit, the benefits or fruits which could be
enjoyed by said heir (in good faith) will only cover those arising from the time of the death of the
decedent. The fruits which had arisen before the death of the decedent are denied to the said
heir by the Article for they must be returned to the real owner under Art. 549.
z. May minors and incapacitated acquire possession of things? What are the requisites?
(Art. 535)
minors and incapacitated persons are allowed by law to acquire possession of things. But to be
able to exercise the rights arising from the possession, they must be assisted by their legal
representatives.
Minors and incapacitated persons, despite the restrictions in their capacity to act, may acquire
possession of things given aor granted through modes like donation, testate or intestate
succession and prescription. In the execution of formalities required by law for the effectuation
of the modes of acquisition, they must be assisted by their legal parents or guardians. In case of
judicial controversy on things donated or transmitted to them, they must be assisted by their
legal representatives.
aa. Who is a minor? Who are incapacitated persons?
The term minor refers to those who are below 18 years. Under RA 6809, legal age was
reduced from 21 years to 18 years. A child is emancipated once he reaches 18 and is free to
enter into contracts. The emancipation of a child is, however, subject to certain exceptions laid
down in Art. 236 of the Family Code which provides that:
“Art. 236 - Emancipation shall terminate parental authority over the person and property of the
child who shall then be qualified and responsible for all acts of civil life, save the exceptions
established by existing laws in special cases.
"Contracting marriage shall require parental consent until the age of twenty-one.
"Nothing in this Code shall be construed to derogate from the duty or responsibility of parents
and guardians for children and wards below twenty-one years of age mentioned in the second
and third paragraphs of Article 2180 of the Civil Code.”
Incapacitated person refers to persons who do not have any capacity to act, although imbued
with juridical capacity (fitness to be the subject of legal relations). Capacity to act is the power to
do acts with legal effect. It is acquired and may be lost (Art. 37).
The following are instances of incapacitated persons: (a) insane; (b) imbecile; (c) deaf-mute in
certain situations; (d) civil interdictee in certain situations; (e) absentee; (f) trustee in certain
cases; (g) prodigal or spendthrift in certain cases.
Note: If a person is under guardianship because of insanity, he is of course presumed insane if
he should enter into a contract. But this presumption is only prima facie or rebuttable. If it can be
shown that he was acting during a lucid interval, the contract will be considered valid.
It must be noted that an incapacitated person is not exempted from certain obligations as those
arising from his acts, or from property relations, such as easements (Art. 39).
bb. Discuss Article 536.
Article 536 talks about possession cannot be acquired through force or violence. To all intents
and purposes, a possessor, even if physically ousted, is still deemed the legal possessor. A
person who believes he has the right to take the possession of a property from someone who
refused to deliver despite demands, shall not take the law into his own hands by employing
force and intimidation. Instead, he must invoke the aid of the competent court. Succinctly stated,
he must bring his case to court for peaceful solution of the controversy.
If by force or intimidation, he succeeded in evicting the possessor of the property, he can be
compelled by the court to restore the possession which he has wrested from the previous
holder. Thus, an action for forcible entry or illegal detainer may be filed against the owner, who
took possession of the property from a holder without due process.
He who believes that he is entitled to deprive another of the possession of a realty should
institute an action for ejectment or a reinvindicatory action.
cc. Is there criminal liability for forceful illegal eviction?
Criminal cases for trespass to dwelling and coercion may even be filed by the evicted person
against the usurper or intruder, if the latter insisted on driving out the former against his will.
dd. What is the concept of acts merely tolerated? (Article 537).
Acts merely tolerated are those allowed by the owner not by reason of duty or obligation but by
the impulse of sense of neighborliness or good familiarity with persons. Generally, they
constitute services or benefits which the property owner gives to others without material injury or
prejudice to himself like allowing neighbors to pass over his land; allowing their animals to rest
thereon; or allowing them to draw water from his well.
Even assuming that these acts continue, they do not affect possession. On the bases of these
acts, no right will be acquired through prescription
Possession of land by tolerance becomes unlawful detainer from the time there is a demand to
vacate.
A person who occupies the land of another at the latter’s tolerance or permission, without any
contract between them, is necessarily bound by an implied promise that he will vacate upon
demand, failing which, a summary action for ejectment is the proper remedy.
Persons who occupy the land of another at the latter’s tolerance or permission cannot be
considered possessors nor builders in good faith.
ee. May registered property be lost through laches?
ee.1. Discuss Catholic Bishop of Balanga v. Court of Appeals.
 ee.2. Discuss Vda. de Cabrera v. CA.
ff. Discuss Article 538.
Possession as a fact cannot be recognized at the same time in two different personalities
except in the cases of co-possession. Should a question arise regarding the fact of possession,
the present possessor shall be preferred; if there are two possessors, the one longer in
possession; if the dates of the possession are the same, the one who presents a title; and if all
these conditions are equal, the thing shall be placed in judicial deposit pending determination of
its possession or ownership through proper proceedings.
gg. Explain the rule on possession as a fact. Discuss the exception.
Possession as a fact cannot be recognized at the same time in two different personalities. Ex. A
depositor and a depositary cannot be recognized as actual possessors at the same time over
the object deposited. An owner of a house cannot be possessing the same in the capacity of an
owner and as lessee simultaneously as he cannot be a lessor and lessee of his own house.
That is both illogical and impractical. It will result in proprietary interests.
There is certain exception however when there is co-possession as in co-ownership over a
community property, possession as a fact is recognized in two or more persons. Here, there is
no conflict of proprietary interests for the co-possessors are acting as co-owners who have the
right to possess and use the property for its intended purpose or for purposes for which it has
been adapted.
hh. What are the rules to follow in case there are conflicting claims of possession?
Should two or more persons claim possession over the same property, the law provides for the
mandatory rules of preference:
1. Present possessor shall be preferred;
2. If both claimants are presently in possession, the longer in possession will have the
preference who is usually the one who has come and took the possession ahead of the
other.
3. If both claimants began their possession at the same time, the one who presents a title
will be preferred;
4. If both claimants have titles, the competent court will determine the rightful possessor or
owner.
Pending the proper proceedings, the property will be deposited in court to await the outcome of
the case. It shall be delivered to the one who is finally declared the rightful owner or possessor.
ii. Distinguish between the rule on preference in possession and rule on preference in
ownership.
The rule on preference in conflicting claims of ownership where there is double sale, is provided
under Art. 1544 which states that:
Art. 1544. If the same thing should have been sold to different vendees, the ownership shall be
transferred to the person who may have first taken possession thereof in good faith, if it should
be movable property.
Should it be immovable property, the ownership shall belong to the person acquiring it who in
good faith first recorded it in the Registry of Property.
Should there be no inscription, the ownership shall pertain to the person who in good faith was
first in the possession; and, in the absence thereof, to the person who presents the oldest title,
provided there is good faith.
The above rule does not apply to cases of double sale but also to cases of double donation.
kk. Will mere possession defeat the title of a holder of a registered Torrens title to real
property?
Mere possession will not defeat the title of a holder of a registered Torrens Title to real property.
The rule is well-settled that mere possession cannot defeat the title of a holder of a registered
Torrens title to real property.
But the true owner of the property may be defeated by an innocent purchaser for value
notwithstanding the fraud employed by the seller (forger) in securing his title.
A vendee has the right to rely upon what appears in the certificate. If the rule were otherwise,
the efficacy and conclusiveness of the certificate of title which the Torrens system seeks to
insure would entirely be futile and nugatory.