Mickey Ingles Ateneo Law 2012, updated: May 15, 2012 Librat: No stamping please! 1 Real Right Definite active subject who has a right against all persons generally as an indefinite passive subject Object is generally a corporeal thing Created by mode and title Extinguished by the loss or destruction of the thing which it is exercised Directed against the whole world (actio in rem against 3 rd persons) Personal Right Definite active subject and a definite passive subject
Object always an incorporeal thing Created by title
Personal right survives the subject matter
Directed against a particular person (actio in personam)
Accession Accessory
fruits of, additions to, improvements upon a thing includes building, planting and sowing alluvion, avulsion, change of course of rivers, formation of islands not necessary to the principal thing things joined to, included with the principal for the latters embellishment, better use or completion necessary to principal thing
example: key of a house, bow of a violin
LAND OWNER vs. OWNER Of MATERIALS
Landowner-Builder/Planter/Sower Owner of Materials Good faith Good faith LO-BPS can acquire the materials provided there is full payment Entitled to full payment for value of materials, or May remove materials provided there is no substantial injury to work done Bad faith Good faith Acquire the materials provided he Entitled to full payment for value of pays full payment plus damages materials plus damages, or Remove materials even if there will be substantial injury to work done plus damages Good faith Bad faith Acquire materials without paying for the value thereof and entitled to damages due to defects or inferior quality of materials Loses materials without indemnity and will be liable for damages due to defects or inferior quality of materials Bad faith Bad faith Same as when both are in good faith.
LANDOWNER vs. BUILDER
Landowner Builder/planter/sower Good faith Good faith Option 1: Purchase whatever has been built, planted, or sown after paying indemnity which includes necessary, useful and luxurious expenses (if he wishes to appropriate the luxurious expenses)
Prohibited from offsetting or compensating the necessary and useful expense with the fruits received by the BP in good faith (Nuguid case) Receive indemnity for necessary, useful and luxurious expenses (depends on landowner) with right of retention over the land without obligation to pay rent until full payment of indemnity
Remove useful improvement provided it does not cause any injury (part of right of retention)
If LO does not appropriate luxurious improvements, BPS can remove the same provided there is no injury to the principal thing (land or building)
Right of retention only applies when LO chooses to appropriate (but does not apply if property of public dominion) Option 2: To oblige the BP to buy the land or the S to pay the proper rent unless the value of the land is considerably more than that of the To purchase land at fair market value at time of payment when value is not considerably more than that of the building or trees + Ad Majorem Dei Gloriam
PROPERTY NOTES
Mickey Ingles Ateneo Law 2012, updated: May 15, 2012 Librat: No stamping please! 2 building or trees
Legal implication of planter v sower: Owner cant compel sower to buy, only rent.
To pay rent until the purchase has been made (Technogas case)
If BP cannot pay purchase price of the land, LO can require BP to remove whatever has been built, planted, or sown.
If the value of the land is considerably more than that of the building or trees, BP cannot be compelled to buy the land. In such case, BP will pay reasonable rent if LO does not choose option 1.
If BPS cannot pay the rent, LO can eject BPS from the land.
Note: Rental period of sower is only until he gathers what he sowed. He doesnt have the remedy of removal. (Sarmiento) Good faith LANDOWNER Bad Faith BUILDER Option 1: To acquire whatever has been built, planted or sown without paying indemnity except necessary expenses for preservation of land and luxurious expenses (should LO want to acquire luxurious improvement) plus damages Loses whatever has been built, planted or sown without indemnity and liable to pay damages
Entitled to reimbursement for necessary expenses for preservation of land but no right to retention (and also 443)
NOT Entitled to reimbursement for useful expenses and cannot remove useful improvements even if removal will not cause injury (MWSS case)
Not entitled to luxurious expenses except when LO wants to acquire (value of which will be the one at the time LO enters into possession)
Entitled to remove luxurious improvements if it will not cause injury and LO does not want to acquire them. If it will cause injury and LO doesnt want to acquire, he gets it for free (Dean Del) Option 2: To oblige BP to buy land or S to pay proper rent plus damages, regardless of valuation Obliged to pay for land or proper rent and pay damages Option 3: To compel BPS to remove or demolish work done plus damages Obliged to remove or demolish work done at his expense and pay damages Bad Faith LAND OWNER Good Faith BUILDER Acquire whatever has been built, planted or sown by paying indemnity plus damages Ball is in the court of the BPS.
BPS can remove whatever has been built, planted or sown regardless of whether or not it will cause injury and will be entitled to damages
If LO acquires whatever has been built, planted or sown, BPS must be indemnified the value thereof plus damages
If LO does not acquire, BPS cannot insist on purchasing land
Bad Faith Bad Faith Both in good faith
+ Ad Majorem Dei Gloriam
PROPERTY NOTES
Mickey Ingles Ateneo Law 2012, updated: May 15, 2012 Librat: No stamping please! 3
LANDOWNER VS BUILDER VS OWNER OF MATERIALS
Landowner Builder/Planter/Sower Owner of the Materials Good Faith Good Faith Good Faith Option 1: To acquire whatever has been built, planted or sown provided there is payment of indemnity (which includes value of what has been built, planter or sown plus value of materials used) To receive indemnity from LO with right of retention over land until full payment To receive indemnity from BPS who is primarily liable for materials; if BPS is insolvent, to proceed against LO who is subsidiarily liable with no right of retention Option 2: To oblige BP to buy land or S to pay rent unless value of land is considerably more than that of building or trees To buy land or to pay proper rent To receive indemnity from BPS only (LO is not subsidiarily liable) with right of retention until full payment; or
To remove materials if there will be no injury on building or trees and will have material lien against BPS for payment of materials Good Faith LANDOWNER Good Faith BULDER Bad Faith MATERIAL OWNER Same with 1.) Pls read Same with 1) pls read Whatever is the choice of LO, the OM: 1. loses the materials in favor of the BPS and 2. will have no right to receive indemnity from BPS nor LO
Good Faith LANDOWNER Bad Faith BUILDER Bad Faith MATERIAL OWNER Option 1: To acquire whatever has been built, planted or sown without paying indemnity except for necessary expenses for preservation of land and luxurious expenses (should LO want to acquire luxurious improvements) plus damages BPS loses what has been built, planted or sown plus liable for damages but is entitled to be indemnified for necessary expenses and luxurious expenses (should LO want to acquire luxurious improvements) and has no right of removal even if removal will not cause damage (Since both BPS and OM are in bad faith, treat them both as if they are in good faith.)
Whatever is the choice of the LO, OM has right to receive indemnity for value of materials from BPS only (LO has no subsidiary liability for value of materials because OM is considered in good faith only insofar as BPS is concerned)
OM has no right to remove materials even if there will be no injury or damage Option 2: To oblige BP to buy the land or S to pay proper rent plus damages To buy the land or pay proper rent and liable to pay damages to LO Get indemnification from the BPS Option 3: To oblige BP to demolish or remove what has been built, planted or sown plus damages To demolish or remove what has been built, planted or sown and liable for damages Liable to pay damages due to defects or inferior quality of materials Bad Faith Good Faith Good Faith To acquire what has been built, planted or sown by paying indemnity plus liable to pay damages To receive indemnity from LO plus damages TO receive indemnity of materials principally from BPS and in case BPS is insolvent, subsidiarily from LO Bad Faith Good Faith Bad Faith Same sa taas Same sa taas No right to receive indemnity for value of + Ad Majorem Dei Gloriam
PROPERTY NOTES
Mickey Ingles Ateneo Law 2012, updated: May 15, 2012 Librat: No stamping please! 4 materials from BPS nor LO (who ends up owning buildings or trees) If OM in bad faith, he doesnt get anything (unless BPS in bad faith as well)
ALLUVION VS AVULSION
Alluvion Avulsion Deposit of soil is gradual Deposit of soil belongs to the owner of the property where the same was deposited The soil cannot be identified Deposit is sudden or abrupt The owner of the property from which a part was detached retains the ownership thereof Detached portion can be identified
ADJUNCTION (accessory follows principal)
Rights of Owner of Principal Rights of Owner of Accessory Good Faith Good Faith Acquires the accessory, indemnifying the owner of the value thereof
Except: When value of accessory is much more precious than the principal thing (469)
Except: When still separable, may demand separation (no adjunction anyway) Loses the accessory but has a right to indemnity for the value of the accessory
Has a right to demand separation even if it causes injury to the principal thing (469)
May demand separation (469( Good faith Bad faith Acquires the accessory and has a right to indemnity for damages he may have suffered Loses the thing and has liability for damages Bad faith Good faith Pays for the accessory plus Option 1: Demand the owner of the damages
Separate thing even if it is destroyed plus pay damages principal to pay for the value of the accessory plus damages
Option 2: Demand separation even if it causes the destruction of the principal thing plus damages Bad Faith Bad Faith As if both are in good faith
MIXTURE
Owner who caused mixture Owner of the thing mixed into Good faith or by chance Good faith or by chance
Each owner acquires a right proportional to the part belonging to him, bearing in mind the value of the things mixed or confused Each owner acquires a right proportional to the part belonging to him, bearing in mind the value of the things mixed or confused Bad faith Good faith Loses the thing mixed or confused plus liable to pay damages Acquires the thing mixed plus entitled to damages
SPECIFICATION (accessory follows principal)
Owner of material Builder Good faith Good faith Right to indemnification for the value of the material.
Except: Material more precious than transformed thing.
Option 1: Appropriate the new thing to himself, indemnifying the builder for his work.
Option 2: Demand indemnity for the Shall appropriate the thing thus transformed as his own, indemnifying the owner of the material for its value.
To be indemnified.
Appropriate the same after indemnity + Ad Majorem Dei Gloriam
PROPERTY NOTES
Mickey Ingles Ateneo Law 2012, updated: May 15, 2012 Librat: No stamping please! 5 material. for material. Good faith Bad faith Option 1: Appropriate the work to himself without paying indemnity. (Damages also?)
Except: When for artistic or scientific reasons, the thing has a value considerably higher than the material. The owner of the material cannot appropriate the work.
Option 2: Demand indemnity for material plus damages. Loses his work. No right to indemnity.
Pay for the materials and damages.
Must pay indemnity and damages.
Adjunction, mixture and specification distinguished
Adjunction Mixture Specification
At least two things At least two things May be only one ting whose form is changed
Component parts retain or preserve their nature Things mixed may or may not retain their respective original nature Component parts retain or preserve their nature
Accessory follows principal Co-ownership results Accessory follows principal
QUIET TITLE vs REMOVE CLOUD
Action to quiet title Action to remove a cloud on title Purpose to put an end to troublesome litigation in respect to the property involved Remedial action involving a present adverse claim 1 st paragraph of Art 476 Removal of a possible foundation for a future hostile claim Preventive action to prevent a future cloud on the title 2 nd paragraph of Art 476
CO-OWNERSHIP
Co-ownership Joint Ownership Each co-owner, together with the others, is the owner of the whole undivided thing or right but at the same time of his own ideal part thereof Can dispose of his share without the consent of the other
Survivors are subrogated to the rights of the deceased immediately upon the death of the latter Disability of a co-owner does not inure to the benefit of the others No abstract share ownership by the co-owners, the right of the joint tenants being inseparable
Not permitted to dispose of his share or interest in the property without the consent of others If joint tenant dies, his ownership dies with him
Disability of a joint tenant inures to the benefit of the others for purposes of prescription
Co-ownership Partnership May be created without formalities of a contract No juridical or legal personality Purpose is collective enjoyment of the thing Co-owner can dispose of his share without the consent of the others, transferee automatically becoming a co-owner No mutual representation Distribution of profits must be proportional to the respective interests of the co-owners Not dissolved by death Agreement to keep the thing undivided for a period of more than ten years is void (although it may be extended by a new agreement) Can be created only by a contract, express or implied Distinct juridical personality Purpose to obtain profits
Unless authorized, a partner cannot dispose and substitute another partner in his place Partner can generally bind the partnership Distribution of profits is subject to stipulation of the partners
Dissolved by death or incapacity
There may be agreement as to any definite term without limit set by law
+ Ad Majorem Dei Gloriam
PROPERTY NOTES
Mickey Ingles Ateneo Law 2012, updated: May 15, 2012 Librat: No stamping please! 6 Co-ownership Easement Each co-owner has a right of dominion over the whole property and over his undivided share Right of ownership rests solely on each and every co-owner over a single object Precisely a limitation on the right of dominion
Right of dominion is in favor of one or more persons and over two or more different things
POSSESSION OF FRUITS
Kinds of Fruits Possessor in Good Faith Possessor in Bad Faith 1. Civil fruits Entitled to fruits from start of possession until legal interruption Not entitled to fruits.
Must pay damages as rental from time possession started until possession is finally defeated 2. Natural/Industrial Fruits
a. Gathered
Right to retain fruits
Must account for fruits and return value of: fruits actually received, and fruits which the legal possessor could have received with due care and diligence.
Must pay damages as reasonable rent for the term of possession.
But entitled to necessary expenses for preservation, cultivation, and gathering of fruits.
b. Pending
Owner has 2 options:
First: Pro-rating (based on period of possession) between possessor and owner of: expenses, net harvest and charges
Second: To allow possessor to stay in possession until after all fruits are gathered (which shall serve as the indemnity for expenses)
No rights, not even reimbursement of expenses for cultivation (because by right of accession, all fruits belong to owner without need to pay indemnity)
Must pay damages as reasonable rent for the term of possession
POSSESSION EXPENSES
Expenses Possessor in Good Faith Possessor in Bad Faith Necessary Expenses Entitled to reimbursement Right of retention pending full reimbursements Entitled to reimbursement No right of retention; must vacate property (recourse is to file collection case) Liable for damages as reasonable rent for period of possession Useful expenses Owner has 2 options:
Option 1: reimbursement of either (a) amount spent or (b) increase in value with right of retention with full payment.
No rights + Ad Majorem Dei Gloriam
PROPERTY NOTES
Mickey Ingles Ateneo Law 2012, updated: May 15, 2012 Librat: No stamping please! 7 Option 2: To allow possessor to remove provided no substantial damage or injury is caused Luxurious expenses Owner has 2 options:
Option 1: to allow possessor to remove ornaments if the principal suffers no injury
Option 2: to retain the ornament by refunding the amount spent for the ornament Owner has 2 options:
Option 1: to allow possessor to remove ornaments if the principal suffers no injury
Option 2: to retain the ornament by refunding the value of the ornament at the time owner enters into possession (which means depreciated value) Deterioration/loss No liability unless due to fraudulent intent or negligence after service of judicial summons Always liable whether before or after service of judicial summons, for any cause, even fortuitous event.