Property

Property Notes A.Y.
2011-2012
I. DEFINITION OF TERMS
Atty. Lopez-Rosario Lectures
Movable (Personal Property) - which can be

transferred from one place to another
Property Thing
Property - any physical or real, juridical, and
legal entity of being capable of becoming the
subject matter or objective terminus of a juridical
relation (Sanchez Roman)
Object for a validity of a contract.
Can be appropriated
Thing - any object that exists and is capable of
satisfying human needs.
-includes both objects that are already
possessed or owned and those that are
susceptible of appropriation
REQUISITES OF PROPERTY (U-S-A)
1. Utility 2. Substantivity - has a separate or autonomous
existence
3. Appropriability
*not all kinds of things are property, all kinds of
property are things
Examples:
1. Kidney of a human being, thing or property?!?
We must determine first W/N it can be sold. If it
is a property, no problem because it
can be appropriated. If it is a thing, the validity of
the sale can be attacked because the object of
the sale is outside the commerce of men.
* outside the commerce of man , illegal
* health and sanitation purpose
*can only be donated to Filipinos
2. Corpse (usually found in med school)
- thing, not susceptible of appropriation
- in reality there might be illegal
transactions, legally speaking it is not subject to
sale
(connect to OBLICON, elements of a valid
contract: consent, object- within commerce of
man, cause)
Movable Immovable
Art. 414. All things which are or may be the object of

appropriation are considered either:
(1) Immovable or real property; or
(2) Movable or personal property
Immovable (Real Property) - which cannot be

transferred from place to place without
destruction to itself
*ART. 415 - enumeration of immovable
properties.
Art. 415. The following are immovable property:
(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 on 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 dumps, 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
Property Notes A.Y. 2011-2012
Juridical Classification of Real Properties

(N-I-D-A)
hardware or those removed by Mayor Lim in

Avenida = personal property.
1. by Nature - by itself cannot be moved from

one place to another
*if you are reading the book of Justice
Paras, you may cite par.1 and par.8 of Art. 415,
but according to Mam LR, land is the only real
property by nature. Literal meaning of nature
*Buildings - incorporated to the soil, by
its nature it is a personal property, but the
moment the removal of the building causes
injury to the soil, it will be a real property by
incorporation
d. in a contract of lease - as a G.R., properties

placed by the tenant/lessee are personal
property, XPN if the tenant is the agent of the
owner.
If informal settler (squatter for the
politically incorrect), does not have the authority.
Properties will never be personal, it will remain
real properties.
2. by Incorporation - must be substantial and

not provisional.
- separation from the immovable may
cause damage or deterioration.
*trees and plants are real property by
incorporation.
3. by Destination - should be placed by the
owner
4. by Analogy - contracts for public works and
servitudes and other real rights over immovable
property.
*explanation*
By nature - no problem, very easy, only needs
common sense
By Analogy - no problem also
By Incorporation - REMEMBER:
1. W/N it will cause damage when removed?
2. Is the person who introduced it important?
- NO! What is important is the moment it
is detached, it will cause damage or injury.
By Destination - 2 KINDS:
1.
machineries/
equipments
important who placed the property, if it is
necessary
Example:
a. chair in classroom - Is it the owner who
placed it there? How relevant is a chair to the
industry (education)? Have you been to a
classroom without a chair?
b. trash can - Can we still conduct classes eve if
we do not have trash can?
c. Vendo Machine - Is it relevant to our
education?
2. ornaments - the person who
introduced it is important, must be the owner.
The intention to attach the property permanently
is also important.
Example:
a. Statue of St. Raymond and Mother Perpetual
- Is it important? OPKORS! It is an ornament,
UST is a catholic school, intention of attaching it
permanently without being transferred.
Examples:
a. fertilizer - already applied to the soil, difficult
to remove it without damage or injury to the soil,
hence it is a real property by incorporation. If still
in bags, personal property!
Elements of Real Property by Destination

1. owner introduced it
2. necessary to the trade or industry, or even if
not necessary there is the intention of attaching
the property permanently
b. plants - still in plastic bag = personal property,

if it is planted, you cannot remove it without
causing damage to soil, regardless of who
planted the damned plant!
c. tiles - it depends, real by incorporation those
fixed in the bathroom or flooring, if still in

CASES
Ladera vs. Hodges (buildings are
immovable)
buildings and constructions are regarded as
mere accesories to the land (following the
Roman maxim omne quod solo inaedificatur
solo credit) it is logical that said accessories
should partake of the nature of the principal
thing, which is the land forming, as they do,
but a single object (res) with it in contemplation
of law. - Justice JBL Reyes
Manalang vs. Ofilada
a building of mixed materials may be the
subject of a chattel mortgage, in which case it is
considered as between the parties as personal
property
The SC hols that the mere fact that a house
was the subject of a chattel mortgage and
was considered as personal property by the
parties does not make said house personal
property for purposes of the notice to be
given for its sale at public auction. The house
of mixed materials levied upon on execution,
although subject of a contract of chattel
mortgage between the owner and a third person,
is real property within the purview of Rule 39,
section 16, of the Rules of Court as it has
become a permanent fixture on the land, which
is real property.
Valdez vs. Altagracia
machinery placed on property by a tenant
does not become immobilized; when,
however, a tenant places it there pursuant to
contract that it shall belong to the owner, it
becomes immobilized as to that tenant and
his assigns with notice, although it does not
become so as to creditors not having legal
notice of the lease
Davao Saw Mills vs. Castillo
It is machinery which is involved; moreover,
machinery not intended by the owner of any
building or land for use in connection therewith,
but intended by a lessee for use in a building
erected on the land by the latter to be returned
to the lessee on the expiration or abandonment
of the lease. it was held that machinery which
is movable in its nature only becomes
immobilized when placed in a plant by the

owner of the property or plant, but not when
so placed by a tenant, a usufructuary, or any
person having only a temporary right, unless
such person acted as the agent of the
owner.
McMicking vs. Banco Espanol
A ship is a personal property. It was the subject
of a CHATTEL mortgage in this case
Manese vs. Velasco
Foreshore Lands - strip of land that lies
between the high and low water marks and is
alternatively wet and dry according to the flow of
the tides. It is that part of the land adjacent to
the sea, which is alternately covered and left dry
by the ordinary flow of tides. It is part of the
alienable land of the public domain and may be
disposed of only by lease and not otherwise.
Foreshore land remains part of the public
domain and is outside the commerce of man. It
is not capable of private appropriation
In all actions for the reversion to the
Government of lands of the public domain or
improvements thereon, the Republic of the
Philippines is the real party in interest. The
action shall be instituted by the Solicitor
General or the officer acting in his stead, in
behalf of the Republic of the Philippines.
Moreover, such action does not prescribe.
Prescription and laches will not bar actions
filed by the State to recover its property
acquired
through
fraud
by
private
individuals.
Laurel vs. Abrogar
in making the international phone calls, the
human voice is converted into electrical
impulses or electric current which are
transmitted to the party called. A telephone call,
therefore, is electrical energy. It was also held in
the assailed Decision that intangible property
such as electrical energy is capable of
appropriation because it may be taken and
carried away. Electricity is personal property
under Article 416 (3) of the Civil Code, which
enumerates forces of nature which are
brought under control by science.
CASES
Movables = Personal Property

* If the property is not enumerated under Art.
415, it is personal property
1. BY NATURE Art. 416. The following things are deemed to be personal
property:
(1) Those movables susceptible of appropriation
which are not included in the preceding article;
(2) Real property which by any special provision
of law is considered as personal property;
(3) Forces of nature which are brought under
control by science; and
(4) In general, all things which can be
transported from place to place without
impairment of the real property to which they
are fixed.
2. BY ANALOGY
Art. 417. The following are also considered as personal
property:
(1) Obligations and actions which have for their
object movables or demandable sums; and
(2) Shares of stock of agricultural, commercial
and industrial entities, although they may have
real estate.
Bicerra vs. Teneza

A demolished or dismantled house ceases to be
real property, it becomes a personal property.
Mindanao Bus. Co. Vs. City Assessor
The SC held in this case that for tax purposes
especially real estate tax, property which are
only INCIDENTAL to the business that are in the
building need not be included in the tax
assessment. (told you!!!) These personal
properties which are NOT necessary to the
course of the business, meaning they can still
conduct the business without them, should be
considered as immobilized by destination.
Involuntary insolvency of Strochecker vs.
Ramirez
A persons !/2 interest in a business is personal
property. They may be the subject of a
mortgage, capable of appropriation and most of
all, it is not included in the enumeration.
Sibal vs. Valdez
For purposes of attachment, execution and the
Chattel Mortgage Law, growing crops or
ungathered products or fruits have the nature of
personal property.
Fungible Consummable
Q: Why do we need to classify property as
real or personal? Why is it important?
A: Because different provisions of law deals with
different kinds of property. You dont believe
me? Here are some examples:
a) Credit Transactions
If you want to obtain loan and you give your
house to creditor as collateral, that is a REAL
ESTATE mortgage. If you give your car as
collateral, that is CHATTEL mortgage.
b) Criminal Law
The RPC defines theft as the unlawful taking of
personal property with intent to gain. If its real
property, it can be unlawful detainer or
usurpation.
(still not convinced?!? Eto pa
isa) c) Taxation
Tax on your land is REAL ESTATE tax,
AMILYAR.
Art. 418. Movable property is either consumable or

nonconsumable. To the first class belong those
movables which cannot be used in a manner
appropriate to their nature without their being
consumed; to the second class belong all the others.
Consummable - cannot be used in a manner

appropriate to their nature without being
consumed.
Mam LR: What do you mean without being
consumed? In Philosophy, it is a number one
rule that you do not use the rootword in the
definition. Clearly, our legislators are not
philosophers
(very bright talaga si Mam! So in light of this BS
definition given by the law, she formulated a
formula (haha!) to determine consummability.)
*title - notice to the whole world, protects the

rd
owner of the property, binds 3
persons,
ownership must be respected
In order to determine consummability:

1. Is there a reduction or decrease in the the
quantity?
- if you borrow the sign pen of your
classmate because you are very burara you
dont even have a pen, look at the ink, there is a
decrease in the quantity! Unjust enrichment took
place! Pay your classmate because you used
the ink! UNJUST ENRICHMNET!
2. Public Properties *public dominion - inalienable, owned by

the government, regalia doctrine, outside the
commerce of men.
*patrimonial porperties - owned by the
state in its private capacity, proprietary, may be
alienated
2. Is there a physical destruction of the

property?
- Example talaga ni Mam yun kandila at
Property for Public Use Property

for Public Service
posporo, but I have another example YOSI!
3. Is there deterioration of the thing?

- If you are washing your clothes, look at
the water, not as clear as before? Well, that is
the deterioration we are talking about. You
cannot use the same water to drink or to take a
bath unless you have a non-functioning
mind
Fungible- property that can be replaced by

another property of the same kind or quality.
replaceable by equal quantity either
by agreement or by nature
Q: What kind of contract will require fungible
goods?
A: Contract of Loan! In credit transactions
(mutuum), obligation of the debtor to return the
value of the money he borrowed, but not the
same money.
Q. What kind of goods in a commodatum?
A. Non-consumable. In a commodatum, the
bailor delivers to the bailee the exact thing that
the bailee left in his possession.
Property of Public Dominion

Patrimonial Property
Distinction:
PUBLIC USE
- used indiscriminately
by anyone, regardless
of age, sex or race
because even
foreigners may use
them.
EXAMPLES:
Luneta Park
Streets
Bridges
Roads
PUBLIC SERVICE
- intended for
authorized persons
only.
EXAMPLES
Libingan ng mga
Bayani
PGH
Camp Crame
CASES
Harty vs. Mun. of Victoria
Plaza of the Church is property of public
Dominion, therefore it cannot be alienated, sold,
in short, it is outside the commerce of men.
Ocsio vs. CA
The Supreme Court held that Patrimonial
Property may be acquired through prescription.
A religious corporation is a juridical person, it
can also acquire property
Property Based on Ownership:
Heirs of Sps. Palanca vs. Republic
1. Private Ownership - owned by private

persons, whether juridical or natural. Can be
acquired by acquisitive prescription.
*registered land - not subject to prescription.
The subject parcel of land in this case is forest

land, being a property of public dominion cannot
be owned by private individuals.

Province of Camarines Sur vs. CA
As regards properties for public use, the
principle is the same: property for public use can
be used by everybody, even by strangers or
aliens, in accordance with its nature; but nobody
can exercise over it the rights of a private owner.
CLASSIFICATION OF THINGS
*RES - latin word for property
Res Nullius- belongs to no one, not yet
appropriated but susceptible to appropriation.
- Look in the Botanical Garden of UST,
you will see butterflies, salagubang, spiders
etc If you want to get these poor insects and
then a Dominican Father will reprimand you, Tell
him Father, these are res nullius, nobody owns
them.
Res Communes- belonging to
everyone
air, sun moon
Res Derelicta - abandoned property
with the intention of no longer owning
them
garbage
Res Alicujus - tangible or intangible
things which are owned privately, either
in a collective or individual capacity,
belonging to someone
Builder/Possessor in Good Faith
Builder/Possessor in Bad Faith
*Good Faith:
In the Family Code - Authority of
Solemnizing Officer must be mistake in fact not
mistake in law.
In Property - the belief that the person
from whom he received the thing was its owner
and could transfer valid title thereto.
Builder in Good Faith - builder is considered in
good faith if he thought that the land was his.
Builder is also considered in good faith if he
constructed on the land of another with the
consent of that landowner.
*Bad Faith:
- characterized by malice, dishonesty
and unlawful intent
Builder in Bad Faith - a person who constructs
improvements upon a parcel of land which he
believes as not his or that he is aware that there
exists in his title or mode of acquisition a flaw
which invalidates it or that knowing that he is not
the owner of said land he undertook construction
thereon without the knowledge and consent of
the owner thereof.
CASES
Premier Bank vs. CA
A purchaser of a property cannot be in
good faith where the title thereof shows that it
was reconstituted
Banks, being in the business of
extending loans secured by real estate
mortgage, is familiar with rules on land
registration , and as such, it is expected to
exercise more care and prudence than private
individuals in their dealing with registered land
that Premiere Bank accepted in mortgage the
property in question notwithstanding the
existence of structures on the property and
which were in actual, visible and public
possession of a person other that the mortgagor,
constitutes gross negligence amounting to bad
faith.
Cua vs. Vargas
Petitioner derived his title from the
Extra-Judicial Settlement Among Heirs and he
was very much aware that not all of the heirs
participated therein as it was evident on the face
of the document itself. Because the property had
not yet been partitioned in accordance with the
Rules of Court, no particular portion of the
property could have been identified as yet and
delineated as the object of the sale. This is
because alienation made by respondents coheirs was limited to the portion which may be
allotted to them in the division, upon termination
of the co-ownership. Despite this glaring fact,
and over the protests orf respondents, petitioner
still constructed improvements on the property.
For this reason, his claim of good faith lacks
credence.

Real Right Personal Right
Real Right - one that confers upon its holder an
autonomous power to derive directly from an
appropriate thing certain economic advantages,
independently of whoever should be the
possessor of the thing.
Personal Right - power belonging in one
person in demand of another as a definite
passive subject the fulfillment of a prestation to
give, to do or not to do.
Q: When you say that a Real Right is
enforceable against the whole world, does it
mean that you have to file an action against
everybody? Why enforceable against the
whole world?
A: No. A real right is the right of pursuit, it follows
you wherever you go, because regardless of
who is the owner, the right must be respected.
Q: Does it follow that when we say real right
it pertains to real property and if it is a
personal right it pertains to personal
property?
A: NO! ABSOLUTELY WRONG!
Q: What is Succession?
A: it is a mode of acquiring ownership over
property, rights and obligations.
Q: If a Creditor dies, may the heirs collect
from the debtor?
A: Yes, rights are transmissible.
Q. Give an example of a real right in
connection with succession.
A. Right of ownership.
Q. Is the right to collect rentals a real right?
Why?
A: Because the rentals emanates from the
property.
Q. If for example a certain person was given
a scholarship by the university and was
given a grant (money), then afterwards this
person dies, can the university get back the
grant? Is the right to the scholarship grant
transmissible to the heirs?
A. YES! The university can get back the grant.
The grant given is a PERSONAL RIGHT. The
heirs do not acquire any right over the
scholarship money. It is personal to the
deceased.
REMEMBER:
Real Right = Action in REM
it is attached to the property whoever
the owner may be. The court will
proceed to try the case even without
defendant.
E.G. In judicial foreclosure, the court will

continue the proceedings even without
the presence of the owner. You do not
need the owner to foreclose the
property.
Personal Right = Action in PERSONAM
The right is attached to the person. If
person dies, no more right. It ceases
upon the death of the person
The court will not acquire jurisdiction

unless the person submits himself
before it.
GEN. RULE. Right to Lease & Right to Usufruct
are REAL RIGHTS.
XPN: it may be stipulated in the contract that
when the lessee or the usufruactuary dies
before the end of the lease or usufruct period,
the owner of the property may pre-terminate the
contract, hence the heirs of the lessee or
usufruactury must evacuate the property.
Necessary Expenses Useful

Expenses Ornamental/Luxury
Expenses
Necessary Expenses - refer to those expenses
which without it the thing will physically
deteriorate or perish.
REMEMBER: In all contracts the owner has the
obligation to shoulder the NECESSARY
expense because he is the one who will benefit
from it. Even though a temporary holder of the
property will provide this without the owners
consent, still need to reimburse.
Examples:
1. services to clean the air-con
2. for wooden floors - solignum, floorwax
3. bread and canned goods - preservatives
Useful Expenses - refer to those which

increase the productivity or raise the value of the
thing.
REMEMBER: In all contracts, CONSENT from
the owner is necessary for the owner to be
responsible for the necessary expense,

otherwise the one who introduced the useful
expense will shoulder the expenses incurred.
Example:
In Hotel Rooms, the greater number
amenities, the more expensive it is.
of
-Kinds of Ownership1. Full ownership - includes all the rights of an

owner
2. Naked ownership - right to use, fruits have
been denied
3. Sole ownership - vested in only one person
4. Co-ownership - 2 or more owners
Ornamental/Luxury Expenses - refer to those

which add to the value of the thing but is neither
essential to the preservation nor useful to
anybody in general.
1.Jus possidendi - to possess
REMEMBER: In all contracts, the luxury

expense is ALWAYS shouldered by the one who
introduced it. No right to demand reimbursement
from the owner.
Q: What kind of contract gives the right to

possess but not all the other rights?
A: Contract of Deposit - safekeeping of the
property, baggage counter
*In contracts you usually see:
2. Jus fruendi - to enjoy the fruits
1. Ordinary expense - due to the ordinary wear

and tear, shouldered by the person enjoying the
possession of the property.
e.g. light bulbs, gasket in faucet
Kinds of Fruits:
Natural fruits - young of animals, plants
which grew without the intervention of man
2. Extraordinary expense - equivalent to

necessary expense, owner will be responsible
e.g. leaking roof
TAKE
NOTE:
WHO
SHOULD
BE
RESPONSIBLE FOR DIFFERENT KINDS OF
EXPENSES IN CONTRACTS THAT INVOLVES
TEMPORARY
TRANSFER
OF
OWNERSHIP?!?
Ownership Possession
OWNERSHIP - may be exercised over things or
right (Art. 427)
-
The independent and general right

of a person to control a thing
particularly in his possession,
enjoyment, disposition and recovery
subject to those established by law
no
restrictions
except
those
imposed by law or private persons
right to dispose, enjoy, recover the
thing without further limitations
POSSESSION - simply a right of an owner
-6 Rights of an Owner-
Industrial Fruits - produced by lands of

any kind through cultivation or labor
Civil fruits - rents of buildings, the price
of leases of lands and other property and the
amount of perpetual or life annuities or other
similar income
Q: What if the animal was from artificial
insemination? What about cloned animals?
What kind of fruit? Is it still a natural fruit, or
does it become an industrial fruit?
A: 2 Answers:
1. In StatCon - if the law is clear
(unambiguous), there is no need for
interpretation, meaning hayop pa rin naman yun
so it will remain hayop forevermore, meaning
still a natural fruit.
2. Consider the time when our civil code
was drafted, 1950! At that time our legislators
probably did not imagine that artificial
insemination or cloning would be possible, so if
there is intervention of man already, may be
considered an industrial fruit.
(Mam LR said that this is just something to think
about, it is not yet asked in the Bar Exam, kapag
naging examiner daw siya itatanong niya daw so
be ready with a very good argument! :P )

3. jus utendi - to use
Q: What kind of contract gives the right to
use even if you are not the owner of the
property?
A: Contract of Commodatum
4. jus abutendi - to abuse, use the property not
in accordance with its proper purpose, only the
owner is given the right.
5. jus disponendi - to dispose (consume,
Encumber, Alienate), transfer ownership
6. jus vindicandi - to recover, there must be
actual usurpation
Possession - only a right of the owner
Ownership - all encompassing
Contract of Lease
1. Right to possess
2. Right to use
3. If stipulated, right to enjoy
- lessee can act as lessor to a
rd
3 person (sublease), but the right to
dispose still remains with the original
owner
- new Rent Control Law, there
must be a written consent from the owner that
the lessee may sub-lease the property.
Mutuum (simple load) - Transfer of ownership
upon delivery of the thing
All Rights = Money / Fungible
Returned bills no longer the original
bills
Contract of Usufruct
1. Right to possess
2. Right to use
3. Right to enjoy the fruits
Q: What is the difference between a Contract
of Lease and a Contract of Usufruct?
A: A contract of lease is always onerous, while a
contract of usufruct may be gratuitous or
onerous. There is nothing in the provisions on
usufruct that provides for rentals
Q: In the Revised Penal Code, what is the

equivalent of the Doctrine of Self Help?
A: Art. 11 of the RPC - Self
Defense. Requisites:
1. lack of provocation on the part of the
offender
2. there must be an imminent danger
3. the offender used reasonable means
to repel the danger, threat or unlawful
act
4. defense of ones self, relatives,
stranger and PROPERTY
Q: What is the connection between self-help
and self-defense?
A: Both uses force as may be reasonably
necessary to repel or prevent any actual or
threatened unlawful act.
*The usurpation must be actual or
threatened. Cannot be when the usurpation
already took place.
Doctrine of Incomplete Privilege

Q: Why is it called incomplete privilege?
A: Because the owner does not have the
absolute right, interference is necessary to
prevent greater damage to adjoining properties.
State of necessity - in criminal law considered
as a justifying circumstance.
- to prevent greater evil
Basis of Benefit:
Art. 432. 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. 23 (Civil Code) - even when an act or event

causing damage to anothers property was not
due to fault / negligence of defendant, the one
who was benefited will be liable.
Doctrine of Self-Help
Art. 429. The owner or lawful possessor of a thing has
the right to exclude any person from the enjoyment
and disposal thereof. For this purpose, he may use
such force as may be reasonably necessary to repel or
prevent an actual or threatened unlawful physical
invasion or usurpation of his property.

Examples:
1. House on Fire. To prevent it from spreading,
the house next to it will be destroyed
Liable - pro-rata proportionately

2. Remember Ondoy? The authorities released
water to prevent damage to dam.
2. People inside elevator then there was a blackout. The elevator will be destroyed.
Limitations to Ones Ownership

Q: From Criminal Law, lets now go to
Constitutional Law, what are the 3 inherent
powers of the State?
A: Police Power, Eminent Domain, Taxation
Gen.Rule: Art. 437 - The owner of a parcel of
land is the owner of its surface and of everything
under it , and he can construct thereon any
works or make any plantations and excavations
which he may deem proper
XPNs:
1. without detriment to servitudes
2. subject to special laws and ordinances
3. aerial navigation
Owner cannot use his property in a manner
rd
that will injure the rights of 3 persons.
Q: In taxation, how can you say that it limits
ones property?
A: Example:
1. salary - withholding taxes
Doctors and LAWYERS are being run
after by BIR because they are self-employed.
2. real property - failure to pay real
estate tax can give government the privilege to
foreclose your property.
foreclose - sell your property at auction
3. when you eat burger - you are being charged
value-added tax
4. Family Home - Art. 155 Fc
G.R. exempt from execution, forced sale
or attachment
XPN 1) non-payment of taxes
2) Etc.
Eminent Domain - taking of private property for

public use upon just compensation, more of a
forced acquisition.
Forced sale, compelled by the
government, whether or not you want to sell
your property.
Requisites:
1. Exercised by competent authority
2. Expropriation for public use
3. Payment of just compensation
4. Observance of due process - Rule 67
*property is preserved * devoted to public use.
Reasonable necessity is required not absolute
necessity to expropriate a property.
Example: C-3
Many houses were removed by
power of eminent domain
There was an act of preservation
Just compensation - fair and full equivalent of
the loss sustained, determined by the court. If
the government does not pay a suit may be
brought against the auditor general.
Police Power - destruction of property for the
benefit of the public in general.
-No just compensation
Example: Act of MMDA
- Generally, does not have police power,
administrative in nature
-it has the power to enforce laws in
accordance with a valid law implementing it
- If public expediency calls for it and
clear & present danger rule
Limitations imposed by 3
rd
persons
Art. 431. The owner of a thing cannot make use thereof in

such manner as to injure the rights of a third person.
*enjoyment of property is limited if it will

rd
prejudice the rights of 3 persons.
*even if you are the owner, you do not have
absolute enjoyment, think of others
Restrictions by the State:
Q: Can you bury a corpse in your backyard?
A:No, this is not allowed because of sanitation
purposes.
10

Q. Can you dig a very deep hole for
swimming pool in your backyard w/out
permit from Eng. Dept.?
A. No. if you do that again & again, it could
affect adjacent land - Art. 431 (rights of 3rd
Person)
Q. Can you make a CR with a big window?
A. No. Even though according to the law you are
the owner above & underneath, take note that
there are restrictions.
Restrictions made by private persons:
Example: In subdivisions - there are restrictions
imposed by developer like in the style or design
of the house, there are also restrictions in the
disposability of the property.
II. Hidden Treasure

Art. 438. Hidden treasure belongs to the owner of the
land, building, or other property on which it is found.
Nevertheless, when the discovery is made on the
property of another, or of the State or any of its
subdivisions, and by chance, one-half thereof shall be
allowed to the finder. If the finder is a trespasser, he
shall not be entitled to any share of the treasure.
If the things found be of interest to science of the arts,
the State may acquire them at their just price, which
shall be divided in conformity with the rule stated.
Art. 439. By treasure is understood, for legal purposes,
any hidden and unknown deposit of money, jewelry, or
other precious objects, the lawful ownership of which
does not appear.
-any hidden & unknown deposit of money,

jewelry or other precious objects, the lawful
owner of which does not appear
-discovered by chance
By chance - good luck
Doesnt preclude a finder who
purposely hunt for hidden treasure
3. not trespasser or agent of owner

* The state may in the interest of science or the
arts, acquire such hidden treasure at a just price
to be as allocated as G.R. * XPNS.
* trespasser - not entitled to get any share
because he cannot be allowed to benefit from hi
unlawful act.
* Right of Finder employed to look for treasure:
no share in the treasure unless agreed upon. He
can only ask for his wage.
*If finder is married, his share in the treasure
belongs to the absolute community property.
(Art. 117 par. 4 FC)
ELEMENTS OF HIDDEN TREASURE H-L-C-T
1) hidden/unknown deposit of money, jewelry /
other precious objects -> same class as money
or jewelry
2) Lawful owner is unknown
3) Discovered by chance
4) Discovered / finder must not be trespasser
Q. Maria (labandera) of Juan (owner) , after
laundry, clean backyard, discovered an
object, turned out to be jewelry. Hidden
Treasure? Right of Maria?
A. Yes. Look at elements, Maria not a
trespasser, 50%.
Q. Owner hired services of a group of men to
find hidden treasure. If there is hidden
treasure, who owns?
A. It depends. If there is a stipulation, finder is
entitled to 50%, if no agreement not entitled.
Finder is only entitled to be paid for services.
Q. Bills coming from bank, buried,
subsequently found. Hidden Treasure?
A: Bills - has serial number. Can be traced,
identity known. Not HT
Q. Usufructuary (lessee) finds Hidden
Treasure. Who owns?
A. Although the usufructuary is in actual
possession of property, still he is NOT the
owner, only entitled to 50% other 50% to owner.
Gen.Rule. - If owner finder, totally belongs to

the owner of land, bldg. / property
XPNs. Finder different from owner, entitled to
1. discovered in property of another
2. discovery by chance
11

Q. Yamashita Treasure?
A. P.D. 172 - 25% granted to finder - 75% - govt
In relation to ART. 719 - finders keeper
Whoever finds a property not a
treasure has the obligation to
surrender it to proper authority. After
posting of found object and 6
months will pass and no owner
appears, the finder of the object will
be entitled to it. If owner appears,
finder is entitled to 1/10 of the value
of the object.
(Some unanswered questions)
1. How do you reconcile Art. 719 with hidden
treasure?
2. What does the law mean when it provides that
the lawful owner must be unknown?
3. When will you apply Art.719 and when will
you apply the provision on Hidden Treasure?
III. ACCESSION
Accession Accessory
Accession - not a mode of acquiring ownership
(book 3 of NCC enumerates the modes of
acquiring ownership, accession not include)
-simply an extension of ownership over
a thing to whatever is incorporated thereto
naturally or artificially (with or without human
labor)
- Can happen both in real and personal
property
- fruits of or additions to improvements
upon the principal
Remember ( API )
Attached, Produced, Incorporated
Note: Accession exists if the incorporation is
such that separation would seriously
damage either thing or diminish its value
Accessories - ornaments to add beauty and

may be removed without causing injury Example
: Ladies - those attached from head to foot are
accessories
- lahat ng pwedeng mapagsabitan /
matusukan
Reason: before you sleep, you can simply
remove them.
- things joined to, or included with the

principal for the latters embellishment, better
use or completion.
Note: While accessions are not necessary to
the principal thing, the accessory and the
principal MUST go together.
Kinds of Accession
1. Accession Discreta - right to the fruits
Art. 441. To the owner belongs:

(1) The natural fruits;
(2) The industrial fruits;
(3) The civil fruits.
Art. 442. Natural fruits are the spontaneous products of the
soil, and the young and other products of animals.
Industrial fruits are those produced by lands of any kind
through cultivation or labor.
Civil fruits are the rents of buildings, the price of leases of
lands and other property and the amount of perpetual or
life annuities or other similar income.
Q: To whom will the fruits belong?

A: Gen.Rule:
1. If you are the Owner of the property,
you are entitled to the fruits of the
property
2. Possessor in good faith, entitled to the
fruits
3. Others who are still entitled to fruits:
a. usufructuary Right to possess
Right to use
Right to enjoy
b. antichresis creditor
Antichresis - kind of security
where in what is used in the
security is fruits of the property
to answer for the interest in the
loan of a thing.
- If no interest agreed upon, the
fruits will be used to answer for
the principal obligation
c. lessee - if there is no express
prohibition against sublease, is
entitled to the fruits.
2. Accession Continua - by external forces
(building, alluvium, etc.)
12
With Respect to REAL PROPERTY

2.1 Accession Industrial - by the work
of man (building, planting, sowing)
- Involves a person who through
building, planting or sowing, introduces an
improvement on the property.
3 Categories of Builder/Planter/Sower
1. Landowner is the B/P/S, who is different
from the owner of the material. (2 Personalities)
Land owner B/P/S
OM (owner of the material)
2. Landowner is different from the B/P/S who
is the owner of the material. (2 Personalities)
Land owner
B/P/S OM
3. Landowner different from BPS, different
from owner of the material. (3 personalities)
landowner
B/P/S
OM
Guidelines:
1) Is there really accession?
- Remember the definition of Accession,
whatever is Attached, Produced or Incorporated
(A-P-I)
2) Accessory follows the principal
- How will you apply?
G.R. - owner of the real property w/n good faith
or bad faith has the right to own whatever he
planted, built or sowed in the property.
Reason: Because of the principle that accessory
follows the principal
Example:
a)
between Land vs.
building/planted/sowed land = principal
Whatever is built, planted or sown = accessory
Reason: because the land can exist by itself
w/o any building or plant bldg. /plant cannot
exist w/out being attached to the land
b) hanging plant (on air)?
*does not apply
Gen. Rule - In BPS, whatever is planted on
the soil should be attached to the land
*Tignan ang definition!!! wag tamad
3) Whoever is the owner of the principal is
the owner of the accessory.
*whatever has been acquired, it is the obligation

of the owner of the real property to pay the
proper indemnity.
* It is the right of the owner of the land
to: -acquire whatever is planted
-acquire whatever is build
E.G. Juan b,p,s in good faith. He planted /
constructed his house on a real property he
thought was his.
Good Faith : (1) b,p,s believes that real property
belongs to him
(2) believes that title over the
property does not have any defect/flaw.
st
* XPN to the 1 principle.
*depending on the owner of the
property, B,P,S has the right to acquire the land
*PROVIDED, that the value of the land
is not higher than the value of improvement of
what has been built, planted or sowed.
Reason:
(a) If owner does not like the property he can
sell to b,p,s provided that the value of the
real property is not higher than the
improvements
(b) If the value of the land is higher than the
improvements, the agreement would be a
contract of lease.
5) Bad Faith - landowner; b,p,s; owner of
materials whoever it is always liable for
damages
a. Owner of real property in bad faith
He will acquire whatever is built/sown
applying principle that accessory follows
the principal BUT he has to pay the
proper indemnity for the value of what
has been built, planted or sown but in
addition to that being in Bad faith, he is
liable for damages.
b. B,P,S (bad faith)

liable for damages
In relation to necessary expenses
-the B,P,S (whether in good faith or bad
faith) , has the right to demand for
reimbursement of whatever necessary expenses
he incurred from the owner of the real property.
-B,P,S is given the right of retention in
relation to accession industrial
4) Application of the principle of unjust

enrichment
13

*right of security / right of retention
-given to the B,P,S for purposes of
serving as a guarantee that he can retain the
property as long as the owner of that property
(real) has not given the amount that he (b,p,s)
has incurred for the necessary & useful expense
Reason: so that the B,P,S can get an assurance
that the owner will reimburse him for whatever
necessary expenses he has incurred.
In relation to useful expense

*good
faith
=
can
demand
reimbursement from owner of property
*bad faith = not demandable
CASES
Ballatan vs. CA
The right to choose between appropriating the
improvement or selling the land on which the
improvement of the builder, planter or sower
stands, is given to the owner of the land.
In the event that the owner elects to sell to the
builder, planter or sower the land which the
improvement stands, the price must be fixed at
the prevailing market value at the time of
payment This case is not for expropriation. This
is a case of an owner who has been paying real
estate taxes on his land but has been deprived
of the use of a portion of this land for years. It is
but fair and just to fix compensation at the time
of payment.
Sulo Sa Nayon Inc. vs. Nayong Pilipino
Foundation
This article [Article 448] is manifestly intended
to apply only to a case where one builds,
plants, or sows on land in which he believes
himself to have a claim of title, and not to
lands where the only interest of the builder,
planter or sower is that of a holder, such as a
tenant.
In the case at bar, petitioners have no adverse
claim or title to the land. In fact, as lessees, they
recognize that the respondent is the owner of
the land. What petitioners insist is that because
of the improvements, which are of substantial
value, that they have introduced on the leased
premises with the permission of respondent,
they should be considered builders in good faith
who have the right to retain possession of the

property until reimbursement by respondent.
We affirm the ruling of the CA that introduction
of valuable improvements on the leased
premises does not give the petitioners the
right of retention and reimbursement which
rightfully belongs to a builder in good faith.
Otherwise, such a situation would allow the
lessee to easily "improve" the lessor out of its
property. We reiterate the doctrine that a lessee
is neither a builder in good faith nor in bad faith
12
that would call for the application of Articles
448 and 546 of the Civil Code.
Under Article 1678, the lessor has the option
of paying one-half of the value of the
improvements which the lessee made in
good faith, which are suitable for the use for
which the lease is intended, and which have
not altered the form and substance of the
land. On the other hand, the lessee may
remove the improvements should the lessor
refuse to reimburse.
Arangote vs. Sps. Maglunob
Petitioner cannot be entitled to the rights under
Articles 448 and 546 of the Civil Code, because
the rights mentioned therein are applicable only
to builders in good faith and not to possessors in
good faith.
Moreover, the petitioner cannot be considered a
builder in good faith of the house on the subject
property. In the context that such term is used in
particular reference to Article 448 of the Civil
Code, a builder in good faith is one who, not
being the owner of the land, builds on that
land, believing himself to be its owner and
unaware of any defect in his title or mode of
acquisition.
the builder in good faith can compel the
landowner to make a choice between
appropriating the building by paying the proper
indemnity or obliging the builder to pay the price
of the land. The choice belongs to the owner of
the land, a rule that accords with the principle of
accession, i.e., that the accessory follows the
principal and not the other way around. Even as
the option lies with the landowner, the grant to
him, nevertheless, is preclusive. He must
choose one. He cannot, for instance, compel the
owner of the building to instead remove it
14

from the land. In order, however, that the builder
can invoke that accruing benefit and enjoy his
corresponding right to demand that a choice be
made by the landowner, he should be able to
prove good faith on his part.
2.2. Accession Natural - by

nature Involves:
Alluvium -A
Avulsion - A
Uprooted trees - U
Abandoned river beds - A
Q. How come they are called accession

natural?
A. Because w/o human intervention something
is added/attached to the property.
Example: beach - seashore
-watch the movement of water, the
sediments upon the movement of H2O it will
either be washed away or it will stick to the
sand.
Q. How did the alluvium / avulsion take
place?
A. Those sediments that accumulated on the
seashore due to the force of the water.
Q. Who now owns the sediment?
A. Owner of the property where the sediments
accumulated. Under the provisions of property,
specifically alluvium:
Alluvium- small particles of soil are
being washed away by the movement of H2O
w/out the owner of the real property knowing it.
-real property must be located near the
river
-There is an increase in the area of
owners property, that increase is due to
alluvium - not identifiable w/ that of real property
In relation to Land Registration Act
Even if the civil code says that
the owner of the real property, where all those
particles are gradually deposited & attached can
make owners ship through it, LR Act says that a
resurvey must be done to include it in the
technical description
property that is detached from a neighboring

property.
*it will only apply if you were near a
river/body of water
applies in the province, if you want to
increase your land, buy a land near a
body of water (this is what the law says)
Remember:
Alluvium = not identifiable
refers to small particles of soil
accumulated into a greater mass.
not painful on the part of the original

owner who lost a part of land
Avulsion - with force
refers to an identifiable portion of a real
property that was detached from?
Neighboring property by the force of
H2O, is now moved to your real property
delayed accession
Art. 459. 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.
Reason: the owner of the real property where

that identifiable portion has been separated
has the right to claim it within 2 years. Once
2 years has lapsed, the owner of the
neighboring property where the identifiable
portion is now attached, can fully claim
ownership, it can now be a notice to the
world subject to resurvey to include it in the
technical description in your title.
ALLUVIUM
deposit of soil is gradual
unidentifiable
belongs to owner of
property to which it is
attached
malumay = gradual
AVULSION
sudden
or
abrupt
process
identifiable
belongs to owner from
whose property it was
detached
maragsa = with force
*intention of the law: not only 1 grain of

sediment, those accumulated sediments
*it is different if what is attached to the real
property is an identifiable portion of a real
15
Formation of Islands
Uprooted Trees
Art. 460. Trees uprooted and carried away by the
current of the waters belong to the owner of the land
upon which they may be cast, if the owners do not
claim them within six months. If such owners claim
them, they shall pay the expenses incurred in
gathering them or putting them in a safe place.
-owner of real property where the

uprooted tree can now be found cannot
claim ownership
-original owner of the uprooted tree is
given 6 months from the time it is
uprooted
-in the province, they convert it into
furniture
Delayed accession because of 6 month
period given to owner to redeem the
tree
River beds abandoned through natural

change in course of the water
Art. 461. River beds which are abandoned through the
natural change in the course of the waters ipso facto
belong to the owners whose lands are occupied by
the new course in proportion to the area lost.
However, the owners of the lands adjoining the old
bed shall have the right to acquire the same by paying
the value thereof, which value shall not exceed the
value of the area occupied by the new bed.
-applies in the province

-not applicable in Manila (canal is not a
river bed)
-natural change in course biglang liko
due to it, the abandoned river bed is
now the subtitle of the area affected by
the natural change in course
EXCHANGE DEAL
Reason: For being fair, even if it is very far,

abandoned part will be an exchange of the
area affected. PRINCIPLE OF UNJUST
ENRICHMENT!
Art. 464. Islands which may be formed on the seas within

the jurisdiction of the Philippines, on lakes, and on
navigable or floatable rivers belong to the State. (371a)
Art. 465. Islands which through successive accumulation
of alluvial deposits are formed in non-navigable and nonfloatable rivers, belong to the owners of the margins or
banks nearest to each of them, or to the owners of both
margins if the island is in the middle of the river, in which
case it shall be divided longitudinally in halves. If a single
island thus formed be more distant from one margin
than from the other, the owner of the nearer margin
shall be the sole owner thereof.
Q: Juan has property near a body of water, 2

years after an island was formed near
property of Juan. Can Juan claim ownership
over the island?
A: It depends if the body of water is:
Navigable - Absolutely No!!! Remember
the regalian doctrine?!? Right of way of boats
and ferries.
Non-navigable - depends again if:
a. Nearer to Juans property, he is the SOLE
owner
b. If equidistant or the island is located at the
center - by operation of law, CO-OWNERSHIP
will apply.
1. Formed by the sea:
a) within territorial waters - STATE
b) outside territorial waters - FIRST
OCCUPANT
2. Formed in lakes or navigable or floatable
rivers - STATE
3. Formed in non-navigable or non-floatable
rivers:
a) equidistant from both banks
(measured from the islands margins) - to the
riparian owners by half (co-ownership)
b) nearer one margin or bank - to the
nearer riparian owner.
Riparian Owner - owner of land located on the
bank of a river or stream (or occasionally
another body of water, such as a lake)
Littoral - relating to the coast or shore of an
ocean, sea or lake
16

CASES
foreshore area subject to the preferential right to

lease of the littoral owner.
Government of P.I. vs. Cabangis

As the lots in question (near Manila Bay)
disappeared by natural erosion due to the ebb
and flow of the tide, and as they remained in that
condition until reclaimed from the sea by the
filling in done by the Government, they belong to
the public domain for public use.
It bears noting that it was not the

reclamation that brought the disputed foreshore
area into existence. Such foreshore area existed
even before F.F. Cruz undertook its reclamation.
It was formed by accretions or alluvial deposits
due to the action of the sea. Following
Santulan, the littoral owner has preferential right
to lease the same.
Siain Enterprises Inc. vs. F.F. Cruz and Co.

The DENR Secretary found that the disputed
area is a natural foreshore, hence, it concluded
that SIAIN, being a littoral owner (owner of land
bordering the sea or lake or other tidal waters),
has preferential right to lease it as provided in
paragraph 32 of Lands Administrative Order No.
7-1 dated April 30, 1936 which reads:
32. Preference of Riparian Owner. The owner
of the property adjoining foreshore lands or
lands covered with water bordering upon
shores or banks of navigable lakes or rivers,
shall be given preference to apply for such
lands adjoining his property as may not be
needed for the public service, subject to the laws
and regulations governing lands of this nature,
provided that he applies therefore within sixty
(60) days from the date he receives a
communication from the Director of Lands
advising him of his preferential right
That rule in paragraph 32 is in
consonance with article 4 of the Spanish Law
of Waters of 1866 which provides that, while
lands added to the shores by accretions and
alluvial deposits caused by the action of the
sea form part of the public domain, such lands,
when they are no longer washed by the waters
of the sea are not necessary for purposes of
public utility, or for the establishment of special
industries, or for the coast guard service, shall
be declared by the Government to be the
property of the owners of the estates adjacent
thereto and as increment thereof.
In other words, article 4 recognizes
the preferential right of the littoral (riparian
according to paragraph 32) to the foreshore
land formed by accretions or alluvial
deposits due to the action of the sea.
With Respect to PERSONAL PROPERTY

There is Accession if it will cause injury
to property, if no injury it is only
accessory.
Example: pair of glasses - it is composed of
several properties merged together
Frame, glass/lens, nose pad, rubber
Q: If one is removed from the other, what will
happen?
A: In accession, personal properties are put
together, once there is an attempt to remove
another, it will cause injury or destruction to the
thing. In the example, if the glass/lens are
removed from the frame, it will cause injury to
the frame/glasses then there is accession.
Kinds of Accession In Personal Property
1. conjunction/ adjunction
2. conmixtion
3. specification
CONJUNCTION/ADJUNCTION
The union of materials belonging to
different owners making up a new
thing.
Separation being impossible without
injury.
Elements of Adjunction/Conjunction:
1. Two personal properties put together
2. removal of which will cause injury or
destruction
3. retains the identity of the separate personal
properties.
In the example given, the identity of the frame
remains separate and distinct from the identity of
the lens.
That the foreshore area had been reclaimed

does not remove it from its classification of
17

Q: If the owner of the frame is different from
the owner of the lens, who owns the
eyeglass?
A: To answer this question, you have to be very
intelligent
Determine always what is the principal and what
is the accessory remember our principle,
ACCESSORY FOLLOWS THE PRINCIPAL.
If you cannot determine which is the principal
and which is the accessory, then apply:
4 RULES (apply chronologically!)
1. Rule of Importance
2. Rule of Greater Value
3. Rule of Greater Volume
4. Rule of Greater Merit
Rule of Importance
Gen. Rule: The owner of the more important
personal property is the owner of the whole
thing.
XPN: 1. Both in Good Faith
In the example, if the value of the
frame is higher than the lens, the
owner of the frame has the right to
demand separation (if slight injury,
no problem)
2. Owner of Principal in Bad Faith
always liable for damages
Owner of accessory in good faith
can demand separation even if it will
cause destruction, not just simple
injury.
3. Owner of Accessory in Bad Faith
Liable for damges
Losses property and will go to
owner of principal as adjunction
4. Good faith/ Bad Faith not mentioned
Qualify
Other examples in adjunction (importance):
1. jewelries
2. watch
3. button in polos
4. zipper
5. car engine and car key
Rule of Greater Value
Examples:
1. wristwatch - watch is more valuable than
leather band
2. diamond ring - diamond more valuable than
gold band
Rule of Greater Volume

- Apply if the two properties have the same
value
Rule of Merit or Sentimental Value
- that of greater merits, taking into
consideration all the pertinent legal provisions
NOTA BENE:
Art. 469. Whenever the things united can be
separated without injury, their respective owners
may demand their separation.
Nevertheless, in case the thing united for the use,
embellishment or perfection of the other, is much
more precious than the principal thing, the owner of
the former may demand its separation, even though
the thing to which it has been incorporated may
suffer some injury.
Gen. Rule is ACCESSORY FOLLOWS THE

PRINCIPAL (GOOD FAITH ON BOTH
OWNERS)
XPN: When accessory is much more precious
than the principal, in which case the owner of
the accessory may demand the separation
even if the principal suffers some injury NOT
destruction.
OWNER OF PRINCIPAL IN BAD FAITH: Owner
of the accessory has the option:
a) to recover damages OR
b) to demand separation even to the
extent of destroying the principal + damges
Art. 470. (par.2)
If the one who has acted in bad faith is the owner of
the principal thing, the owner of the accessory thing
shall have a right to choose between the former paying
him its value or that the thing belonging to him be
separated, even though for this purpose it be necessary
to destroy the principal thing; and in both cases,
furthermore, there shall be indemnity for damages.
18

OWNER OF ACCESSORY IN BAD FAITH:
Losses accessory and liable for
damages
Art. 470. (par.1) Whenever the owner of the accessory
thing has made the incorporation in bad faith, he shall
lose the thing incorporated and shall have the
obligation to indemnify the owner of the principal thing
for the damages he may have suffered.
MIXTURE (conmixtion or confusion)

Union of materials were the
components lose their identity
Results to CO-OWNERSHIP
Separation of property is NOT
possible, no principal/ accessory
1. conmixtion - mixture of two solids
Example: cement + sand
2. confusion - mixture of two
liquids Example: water + chlorine
Vinegar + soy sauce
Solid + Liquid = water + coffee
Adjunction - the identity of the 2 properties

is separate and distinct
Mixture - the identity of the 2 properties will
disappear
Q: Who will own the water mixed with the
coffee?
A: It DEPENDS! If by accident (good faith) coownership will apply.
If intentional (bad faith), owner in bad faith will
lose right to his own material + liable for
damages.
SPECIFICATION:
It is the transformation of anothers
material by the application of labor.
The material becomes a thing of a
different kind.
HUMAN LABOR is deemed to be
the principal
Identity of the personal property is
transferred to another due to human
intervention
Example: pants and jacket
Cannot be immediately produced.
These were transformed originally
from a piece of cloth, the cloth
originally from cotton, cotton

originally from a tree.
Pants/Jacket = accessory
Labor (man) = principal, without it such
property cannot change into another
Art. 474. One who in good faith employs the material of

another in whole or in part in order to make a thing of a
different kind, shall appropriate the thing thus
transformed as his own, indemnifying the owner of the
material for its value.
If the material is more precious than the transformed thing
or is of more value, its owner may, at his option,
appropriate the new thing to himself, after first paying
indemnity for the value of the work, or demand indemnity
for the material.
If in the making of the thing bad faith intervened, the
owner of the material shall have the right to appropriate
the work to himself without paying anything to the maker,
or to demand of the latter that he indemnify him for the
value of the material and the damages he may have
suffered. However, the owner of the material cannot
appropriate the work in case the value of the latter, for
artistic or scientific reasons, is considerably more than that
of the material.
RULES:
1. Owner of Principal in Good Faith:
Gen. Rule: Maker acquires the new
thing and indemnify owner of material (unjust
enrichment)
XPN: if the value of the material is
greater than value of labor, owner of material
has option:
a) to acquire the property + indemnify
for labor OR
b) demand indemnity for material
2. Owner of Principal in Bad Faith
Owner of material has option:
a) acquire the result without indemnity
(due to impossibility of separation) OR
b) indemnity for the material + damages
3. Owner of Material in Bad Faith
- loses material and must pay damages.
19

IV. Quieting of Title
Purpose: Restoration
Accion que teinet
An equitable action in rem to determine
the condition of the ownership or the
rights to immovable property and
remove doubts thereon
A cloud on title is a semblance of title
A cloud on title exists when there is an
instrument, record, claim, encumbrance
or proceeding which is apparently valid
or effective, such instrument is in truth
and in fact invalid, ineffective, voidable
or unenforceable or has been
extinguished by prescription.
Action does not prescribe
Plaintiff must have legal or equitable
title but need not be in possession of
the property (Art. 477)
Procedural remedy
There should be an instrument or
document involved
No rule in civil procedure and special
proceedings, therefore, sabi ni Mam
LR, it is a DECLARATORY RELIEF
Q: What if there is doubt on title?

A: Proper remedy is to quiet title
Q: Is there a prescriptive period for action
of quieting?
A: It depends
If plaintiff in possession, action does not
prescribe
If plaintiff not in possession prescribes
a) Good faith = 10 years
b) Bad faith = 30 years
Indispensable requisite which must

be present so that you can file an
action to quiet:
Possessor has
legal/equitable title
Not necessary that he
is in possession
Legal registered owner
Equitable Beneficiary
Direct attack main action/central issue

In the Family Code:
Nullity of Marriage can be
attacked directly/collaterally.
Collaterally possible for settlement.
Annulment of marriage cannot be
attacked collaterally, must be direct.You
need to file a petition for annulment.
Leyson vs. Bontuyan
SC: Action for reconveyance prescribes in
10 years if claimants are not in possession.
If in possession = It does not prescribe.
Q: Who can file?
A: The plaintiff must have a legal or equitable
title to, or interest in the property subject of
the action. He need not be in possession of
the property.
V. Co-ownership
Created by law or by agreement

Plurality of parties, like in a
Corporation except corporation sole
Not a juridical person
The law says spiritual share
meaning you cannot identify
where is your exact share. If the
specific share is identifiable then
the co-ownership is extinguished.
Art. 484. the right of common dominion which

2 or more persons have in a spiritual part of a
thing which is not physically divided.
a) Hidden treasure (chance) no problem if
the property can be divided physically.
- If it cannot be divided physically,
automatically there is co-ownership.
b) By Succession - only 1 property left and
several compulsory heirs
Upon death of decedent compulsory
heirs automatically become co-owners.
c) Property Relationship between
common law spouses 147 and 148 of
the FC.
Deed/ Instrument must be shown to be

invalid and operative
There must be evidence to prove
20
Co-ownership
Co-Ownership
Created by other
sources besides
contract
No juridical personality
Purpose: Common
enjoyment
May not stipulate
indivision for more than
10 years but 20 years if
imposed by
testator/donor
Not dissolved by death
of co-owner
Partnership
Partnership
Created by contract
except conjugal
partnership
Has juridical
personality
Purpose: Profit
May be for more than
10 years
Dissolved by death of
partner
Example:
1. Law office through partnership
Can enter into transaction with any
person
2. Co-owner of property
Cannot enter into transaction
No juridical capacity
Remedy: Co-owner will have to enter into
rd
particular transaction with 3 person
3. Partnership: 1 dies = partnership is

terminated
Co-ownership: 1 dies, will not
dissolved the co-ownership.
Q: Is there perpetual co-ownership?
A: No. Any co-owner can demand partition of
ownership at any time.
Basis: Patricio vs Dario III
No co-owner ought to be compelled to
stay in a co-ownership indefinitely.
Co-owner may insist on partition of the

property at any time.
An action to demand partition does not

prescribe
If there is agreement on co-ownership,
can continue for a maximum of 10 years.
Lopez vs. Ilustre

A co-owner has the right to freely sell
and dispose of his undivided interest, but no
right to sell a divided/definite part of the real
estate.
Cruz vs. CA
Co-ownership is terminated if there is
judicial or extra-judicial partition of property.
Avila vs. Sps. Arabat
Any act intended to put an end to
division is deemed to be PARTITION. Heirs took
possession of respective share and constructed
respective houses. Co-ownership is legally
dissolved and right of redemption cannot
anymore be exercised.
Q: Can a co-owner file an action for
ejectment against another co-owner?
A: Yes, ejectment is only about physical or
material possession. If it is beneficial to the other
co-owners, action for ejectment will prosper. (De
Guia vs CA)
De Guia vs. CA
SC: Co-owner may file an action for
ejectment under Art. 487. Not only as against a
third person but also against a co-owner who
takes exclusive possession and asserts
exclusive ownership of the property (no consent
necessary).
Q: Is it possible to acquire undivided interest
of co-owner by prescription?
A: Yes, SC in Sta. Ana Vs. Panlasigue
GR: Co-owner cannot acquire by acquisitive
prescription the undivided share.
XPN: Unless there is an explicit repudiation
of that share coming from a co-owner.
- But if that co-owner did not repudiate his
share, there can be NO acquisitive
prescription.
Heirs of Cabal vs Cabal
Co-ownership will not exist if a portion
owned is completely determined or specified by
its very nature.
Every co-owner owns an undivided
interest and you cannot pinpoint where that
property co-owned is an undivided interest.
If a co-owner wants to sell the property

it must be with a unanimous consent.
21

Sources of Co-ownership:
1. Law
a. common law spouses (Art. 147-148 FC)
b. commixtion/confusion - generally will result to
co-ownership, subject to the xpns
c. Hidden Treasure
d. Formation of islands if equidistant = coownership
(in all the above circumstances, coownership is created by operation of law)
2. Contract
3. Succession
4. Chance
5. Occupation - hunting/fishing
Consent of Majority of interest in a coonwership
E - Enjoyment
M Management
I Improvement (Art. 489)

Unanimous Consent:
E - Emcumbrance (Mortgage)
D Disposition of entire property

(Sale/Donation)
A Alteration of thing owned in common

(Art. 491)
In relation to expenses:
Necessary Expenses: Art. 488
Q: Does co-owner have the right for
reimbursement?
A: Yes, because it is beneficial to all co-owners.
But the law says it would be better to notify in
advance .No consent needed
Causes for extinction of co-ownership:

T-M-P-P
1. Total destruction of the thing
2. Merger of all interest into one person
3. Prescription (adverse possession)
rd
- By a 3 person or one co-owner (open and
adverse)
4. Partition judicial/extrajudicial
GR: Maybe asked at anytime
XPN: When there is stipulation against
it. Condition imposed by transferor; legal nature
prevents partition; prohibited by law; partition
would render the thing unserviceable.
Basis: Figuracion Gerilla vs Vda. De
Figuracion
Premature to partition a property that is
co-owned if ownership of property is still in
dispute/remains in issue as to expenses.
Condominium Act: RA 4726 June 19, 1966
Reason for the law : the proliferation of condos
in the Philippines
Sec. 2 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.
*Indispensable requirement: All incorporators of
condo corp. Must be shareholders thereof.
Shareholders - owner of condo unit.
*There are areas in the condo that are coowned, example:
- stairs, elevator, gym etc
Q: What if the other co-owners still does not

pay?
A: Co-owner may compel the other co-owner to
pay. If the other co-owner renounced his
undivided share, that share will be considered
as payment for the necessary expenses
incurred. Dacion en Pago.
*Your unit is yours exclusively but you have no

right to make changes outside your unit.
Useful and Luxury Expenses

If no consent, that co-owner who
introduced wil be solely responsible for
it.
*the lower the unit, the cheaper it is. Why?

Because dear reader, there is more disturbance.
You have to endure the fact that people from the
higher unit will pass by your unit (corridor) every
day to get out of the condo. Your location is
more prone to being used because of the
COMMON AREAS! Gets?!? (very good! Now we
proceed to the next topic.)
*the higher the unit, the more expensive it is.

Why? Because dear reader, there is less
disturbance.
22

VI. Possession
Material holding or control of a thing
(Possession proper)
Exercise of a right (quasi-possession)
Holding of a thing or of a right whether by
material occupation or by the fact that the
thing or right is subjected to the action of our
will.
1.
Constitutum Possessorium (CP)

take place when the owner of the
property alienates it but continues to be
in possession in the concept of a tenant
or
other
subordinate
right
=
lessee/usufruct.
Ex. Owner sells property to another person
subject to the condition that he is allowed to
continue to possess the property.
Example:
Lessee possession in the concept of holder.
Lessor although not in the actual possession,
in the concept of holder of a right. Possession
in concept of owner.
Jus Possidendi
The right to possess
Right exercised by the owner of the property.
Different Types of Credit Transactions
Commodatum
Usufruct
Antichresis
Lease Lessee holder
Lessor owner
rd
*Right of possession is transferred to a 3
person but not the other rights of an owner.
Q: What can be objects of possession?
A: Only things and rights susceptible of
appropriation
Res Nullius Nobody owns them so
you cannot be charged of robbery.
Res Alicujus unless in relation to
different kinds of transactions, owner delvers
rd
possession to a 3 person which shows that
the object is not res nullius, subject that there is
consent in the transfer of the possession.
Q: What are excluded?
A:
Res Communes
Property of Public Dominion
Discontinuous Servitudes
Non-apparent- servitudes.
Traditio Brevi Manu (TBM)

transferee already had the property in
his possession for any other reason.
Ex. Juan, lessee of property of Maria, decides
to buy the property upon hearing that Maria
intends to sell it. After buying the property,
Juan continues/ remains to be in possession of
the property - from lessee to owner.
Possession in Property does not

automatically
refer
to
actual
physical
possession, because there is such a thing as:
a) Possession in the concept of holder
b) Possession in the concept of owner
Ways of Acquiring Possession:

Material Occupancy includes constructive
delivery.
2.
By the subjection to the action of our will

according to law even without physical
seizure
Tradicion Symbolica (TS)

delivery of the keys of the placeor
depository where the thing is stored or
kept.
OBLICON contract of sale
Stages: 1. Preparation
2. Perfection
3. Consummation
- Real property by nature that cannot be
actually transferred or delivered.
- The only way to deliver it is through symbols.
Ex. Delivery of a title or key no actual
transfer of object.
Traditio Longa Manu (TLM) thing

cannot be manually transferred to the
transferee at the time of agreement but
there is no legal obstacle to the transfer
of possession.
Q: Is tradition longa manu applicable in
REAL property or is it limited to personal
property only?
A: It is limited to personal property only
because if you are just pointing to a parcel of
land, how will you be able to identify the lot
area? In the sale of land, there must be a
survey to properly identify the meets and
bounds of the lot, therefore TLM not applicable.
23

3.
By proper acts and legal formalities
Clandestine
possession
hidden or disguised, as distinguished

from
open or public possession.
Possession by
tolerance does not
give rise to ownership.
Ex. Squatter(Informal Settlers) living in

Rizal Park.
Acts merely tolerated, and those executed

clandestinely and without knowledge of the
possessor of a thing or byviolence, do not
affect possession. (Art. 537)
Ex. Public Dominion cannot be acquired by
acquisitive prescription. It cannot ripen into
ownership.
Right of Possession Right to Possession
Jus Possessionis
Right of possession is
independent and apart
from ownership
Who enjoys? :
- Usufructuary
-Bailiee in
Commodatum
-Pledgee
-Lessee
Jus Possidendi
Right to possession
is a mere incident of
ownership
Who Enjoys? :
Possession with juridical title

Possession with just title
Possession
with
Juridical Title
Predicated
on
a
juridical
relation
existing between
the
possessor and
the
owner of the thing but
not in the concept of
owner, such as that of
lease,
usufructuary,
depositary etc.
Connect with right of
possession
Ex.Usufructuary,
Depositary,
pledge,
lessee in possession
but not in the concept
of an owner.
Possession
with
Just Title
Possession of
an
adverse
claimant
whose
title
is
sufficient to transfer
ownership but
is
defective as when
the seller is not the
true owner.
Connect with right
to possession
Refers to owner of
property
Q: What if there is a dispute between 2

persons regarding possession of property?
A: Rules:
1) Preference, shall be given to one in
actual possession the law
presumes that if you are in
possession you are the owner.
2) If 2 or more possessors
Oldest or Longer possessor
3) If the same, the one who can
show title
*If all conditions are equal, determined in
proper proceedings (Art. 538).
*Rule #1-3 must first be resorted to before
going to Rule # 4.
Different kinds of action to recover
possession of real property:
1) Summary (Accion Interdictal)
Forcible Entry
MTC
Sampayan vs. CA
SC: In an action for forcible entry,
plaintiff must prove that he was in
previous possession of the land/building
and he was deprived thereof by means
of fraud, intimidation, threat, strategy
or stealth (FISTS). Absence of prior
physical/actual possession by plaintiff
warrants the dismissal of his complaint.
Complainant must prove that:
1. he is in ACTUAL possession
2. he is deprived of possession through
FISTS
2) Unlawful detainer originally defendant was
in lawful possession of property, however,
because of expiration of the period that has
been leased/violation/breach of conditions
stipulated, possession of that defendant
becomes unlawful.
Steps:
1)
Demand for defendant to vacate
premises (15-30 days)
2)
Letter must be given which was
made by a lawyer for an action of unlawful
detainer.
Ocampo vs. Tiroma
SC: Elements to be proved in unlawful
detainer:
1. There was lawful possession first - this
may be in a lease or usufruct
2. The contract is expired already or there
was a violation of the contract.
24
Remedies:
Recovery of possession
Accion Publiciana Issue: Possession
Accion Reinvidicatoria Issue: Ownership
RTC
Possessor in Good Faith

Art. 546 entitled
necessary expenses.
Oblicon: For
a person to be in default, you must make a
demand.
Within 1 year from the date of?

Answer: Demand to vacate the premises
Injunction, against continuation of trespass
Q: What is the proper remedy to get rid of
informal settlers?
A: Demand first that they should vacate the
property. Then 1 year from date of demand to
vacate if still stubborn, file accion publiciana in
the RTC.
Q: What if property is not real but personal?
A: File an action for REPLEVIN.
Replevin : Go back to Art. 415 real/personal
property.
Proper action for recovery of personal property

Rule 60 ROC
Q: What is the principle of Irrevindicability?

Art. 559
A: General Rule Under acquisitive
prescription; if you are in possession of
property in good faith, you can acquire it after
10 years.
If you are in possession of a movable/personal
property and you acquired it in good faith,
acquisition of which is equivalent to a just title.
Ex.
1) If owner of that property lost it
No finders keepers under the civil code. It
should be surrendered to proper authorities.
Connect with modes of acquiring.
2) If owner has been illegally deprived of it
Under Criminal Law Antifencing Act.
Jimenez vs. Patricia

Lessees, much less sub-lessees are not
possessors or builders in good faith over rented
land because they know that their occupancy of
the premises continues only during the life of
the lease or sublease as the case may be.
They cannot as a matter of right recover the
value of their improvements from the lessor,
much less retain the premises until they are
reimbursed.
Art. 1678 allows reimbursement of lessees up

to of the value of their improvements if the
lessor elects.
to
demand
Right of Retention
Sps. Nuguid vs. CA
Under Art. 448, the owner is given the option:
a)
To appropriate the improvement
as his own upon payment of the proper
amount of indemnity; or
b)
To sell the land to the possessor
in good faith
Relatedly, Art. 546 provides:
that a builder in good faith is entitled to full
reimbursement for all necessary and useful
expenses incurred.
Also gives builder/possessor in good faith
the
right
of
retention
until
full
reimbursement is made.
Kinds of Action to Recover Possession

of Real Property
1) Summons (Accion Interdictal) forcible
entry/unlawful detainer.
MTC
2) Accion Publiciana action for the recovery of
possession.
Based on superior right of plaintiff to
possession (in concept of holder)
RTC
Issue: On possession NOT ownership
3) Accion Reinvindicatoria Issue: Based on
ownership
RTC
4) Injunction against continuation of trespass.
5) Interpleader a suit to determine a right to
rd
property held by a disinterested 3 party, who
is in doubt about the ownership and who
therefore deposits the property with the Court
to permit interested parties to litigate
ownership.
Purpose:
1) Who should receive property;
2) avoid multiple liabilities.
25

VII. Usufruct
Right to enjoy the property of another
with the obligation of preserving its
form and substance unless the title
constituting it or the law otherwise
provides.
uso use
fructo fruits/enjoy
A real right (of a temporary nature)
May involve real or personal property.
Usufruct Lease Commodatum

Distinction: right to enjoy fruits
Lease: Rights:
1. Possess
2. Use
3. Enjoy it depends, if there is
express prohibition against a
sublease, then no right to enjoy
the fruits.
If allowed, lessee can
sublease property, hence
can enjoy the fruits.
Parties: Lessor and Lessee
Usufruct: Rights:
1. Possess
2. Use
3. Enjoy
Parties: Naker owner and Usufructuary.
Commodatum: Rights:
1. Possess
2. Use
3. No transfer of right to enjoy
Parties: Bailor and Bailee
Object: real/personal; sterile/productive;
may be rented as a right.
Q: Is there consideration involved in
Usufruct? Lease? Commodatum?
A: 1. Lease there is consideration.
- rentals
Lessee cannot sublease
without the consent of
lessor Rental Law
2. Commodatum essentially gratuitious
3. Usufruct civil code is silent.
Accdg. To Castan - 1890 Spanish Civil Code
Provision of property was retained
unlike in FC (marriage)
There can be considerationMay be

gratuitous/onerous
Characteristics/Elements:
A. Essential without which it is not a
usufruct.
1) Real right
2) Temporary in nature
3) Purpose: To enjoy the benefits
B. Natural ordinarily is absent
GR: to preserve it
XPN: when the title/law provides that it
is OK not to preserve.
C. Accidental
Difference between Usufruct Lease
Lease consideration is regular,
weekly, monthly
Usufruct consideration is only ONCE,

not a regular basis
Reason:
a) To prevent exploitation
b) To prevent abuse w/c is
frequent
c) To prevent impairment
Q: May a usufructuary lease the object?
A: NHA vs CA Art. 565, 572
Usufructuary may lease the object, has
the right to enjoy the fruits
Has the right to choose tenants
Usufructuary allowed to administer and
manage the property
Q: What happens to the contract of lease
entered into by the usufructuary in relation
to the stipulated period agreed upon by the
naked owner and usufructuary?
A: The lease contract entered into by the
rd
usufructuary with a 3 person will be terminated
upon the termination of the contract of usufruct.
Upon termination of usufruct, it is also
termination of contract of lease.
Usufructuary/heirs/succession
Similar analogy
shall only recover
proportionate share of the rent.
If lessee sublease the property under

lease, original contract of lease is
terminated, the sublease
contract
automatically terminated.
26

Q: Can money be an object of usufruct?
A: Yes. Alunan vs. Veloso
Money is a consumable because you
will not be able to return the same
money bearing the same serial number
that was given by the naked owner, but
there can still be a usufruct, this is called
abnormal usufruct.
Quasi-usufruct
Because it refers to a usufruct wherein
the object is a consumable property.
More of an exception, because the
nature of the usufruct, it is the obligation
of the usufructuary upon the termnation
of the usufruct that he will deliver back
the same property that he received in
the same condition.
Q: What will be returned/delivered back?
A: The appraised value so the usufructuary
will now have to pay the appraised value of
that consumable property that was used and
enjoyed by the usufructuary. The appraised
value could be the current value from the
time the usufruct ceases.
Connect with Art. 547.
In relation to hidden treasure: HT
discovered by the a usufructuary on the
property under usufruct, it is by chance,
to the owner of that object considered
as a stranger therefore he is entitled to
of the hidden treasure, other half
belongs to the owner.
In relation to expenses:
- Necessary usufructuary may demand
reimbursement because it will
redound to the benefit of the owner.
-
Ordinary
usufructuary
will
shoulder
Extraordinary souldered by the
naked owner.
Q: What are the obligations of a usufructuary

before entering upon the enjoyment of
property?
A: 1. To make an inventory of all the property;
2. To give a security
Reason: the law wants to protect the interest of
the naked owner considering that the
possession, right to use and enjoy the fruits are
entrusted to the usufructuary.
Growing crops goes to

the naked owner,
reimburse the usufructuary.
If naked owner is insolvent, usufructuary

may recover fruits from naked owner
dation.
The abovementioned obligations are

connected with the obligation of the
usufructuary to return the object under
the same condition when it was
delivered to him. That is why before he
enters the property he has to give an
inventory of theproperty at the same
time a security.
Q: Is it possible that a usufructuary can still

take possession of the property without
giving a security?
A: Yes, in lien of that, what he can give is a
caucion juratoria.
Caucion Juratoria an undertaking, an oath,
palabra de onor.
- Bond by oath if usufructuary cannot give a
security.
Q: What if there is refusal of giving security/
caucion juratoria? What are the remedies of
the naked owner?
A: Remedies:
Ask for the administration of the

property, instead of giving it to the
usufructuary, in which case it would
defeat the purpose of the usufruct. It is
one way to pressure the usufructuary to
either give
the security/ if not a caucion
juratoria.
Death of usufructuary may create doubt as
to who is
the owner, put a provision in the
contract.
OBLIGATION OF A USUFRUCTUARY
DURING
THE
EXISTENCE
OF
A
USUFRUCT
To make an inventory of the property to
protect the naked owner
Take care of the thing as a good father
of a family
Give a bond/security cash/surety
Make ordinary repairs at his expense.
Extraordinary expense owner.
Pay taxes and charges
Notify owner of urgent need for
extraordinary repairs (Art. 593) and acts
detrimental to ownership (Art. 601)
Bear cost of litigation over the usufruct
(Art. 602)
Answer for fault of lessee/agent
27

Ordinary diligence - in OBLICON Art. 1163
ordinary diligence of a good father of a family is
required in ordinary contracts.
In usufruct (contract of Usufruct) same
diligence is required because it is
incumbent upon the usufructuary to
preserve the property in its condition
when it was delivered to him.
To shoulder all ordinary expenses
Under the provisions in usufruct, the law
uses the terms ordinary expenses and
extraordinary expenses
Q: Why not useful and necessary?
A: The definition of extraordinary expenses
pertains to the repairs needed to restore the
property in its original condition, more or less it
is similar to that of a necessary expense.
It is the same sole responsibility of the
usufructuary to shoulder the ordinary
expenses because he is the one in
possession of the property.
Ordinary expenses = expenses incurred
through the ordinary wear and tear of
the property.
Q: Who will shoulder the extraordinary
expenses?
A: The naked owner because he will be the one
who will be benefited.
If the usufruct would advance the
extraordinary expenses, he has the right
to demand for reimbursement from the
naked owner.
Causes for Extinguishment of Usufruct:

Waiver
Expiration/loss of property
Resolution/termination of the right to
constitute usufruct
Expropriation
Prescription
Merger
Expiration of period/fulfilment of the
resolutory condition
Death
Q: Can a usufructuary alienate his rights to
the usufruct?
A: Yes. He can alienate his right to the
usufructuary. In accordance with Art. 577.
Obligations of a usufructuary at the

expiration of the usufruct
1. To return the property unless there is
right of retention = extraordinary
expenses
2. To pay interest or the amount spent by
the owner of extraordinary repairs (Art.
594) or taxes on the capital (Art. 597).
3. To indemnify owner for loss due to
negligence of usufructuary or transferee.
XPN:
Right of Retention given to a BPS in good
faith (Necessary Expenses)
In this kind of contract it does not
involve
necessary
expenses
but
extraordinary
which
should
be
shouldered by the naked owner.
The same right is given to a
usufructuary, he has the right of
retention which will serve as security
that the naked owner will reimburse him
of the extraordinary expenses that he
incurred.
Although he has the obligation to return
the property of the same kind, that
obligation will not be immediately
complied with if he exercises the right of
retention in relation to the extraordinary
expenses he incurred.
To pay interest in the amount spent by
the owner for the extraordinary repairs
and to indemnify owner for losses due to
negligence of usufructuary.
Q: What is the reckoning point where the
usufructuary is entitled to the fruits of the
property? (Art. 567)
A: growing fruits at the time the usufruct begins
= belongs to usufructuary
At the moment of the commencement of
the usufruct.
Q: What about if usufruct already
terminated?
A: Will go to the naked owner
28

Q: What are the obligations of the naked
owner?
A: Naked owner must return to usufructuary all
the ordinary expenses incurred for the seeds,
the preparation of those fruit bearing trees.
Refund/reimbursement of the naked
owner only at the time of expiration
Reason: because at the time the

usufruct ceases, if trees do not bear fruit
but only flowers, the one who is
benefited is naked owner.
Principle of unjust enrichment
The naked owner is the one who eats
the fruits, he needs to pay whatever
expenses incurred by the usufructuary.
That is the only time when usufructuary
can demand reimbursement for the
ordinary expense.
But generally, ordinary expenses should
be shouldered by the usufructuary.
Q: What will happen to the contract of lease

if the contract of usufruct is already
terminated?
A: The contract of lease will terminate upon the
termination of the contract of usufruct.
Q: We said that a usufruct is extinguished upon
the death of the usufructuary, is it automatic
extinguishment?
A: As a Gen. Rule - Death of the usufructuary
will not terminate the usufruct because as we all
know, is it a REAL RIGHT. It attaches to
property, therefore death of the usufructuary will
no automatically extinguish the usufruct.
XPN: if there is a contrary stipulation in the
contract.
Moralidad vs. Pernez

SC: Usufructuary is nothing else but simply
allowing one to enjoy anothers property
temporarily
Right to use
Right to enjoy
Right to possess
With the owner retaining the right to
dispose/power to alienate.
Art. 579-580-BPS-usufructuary
Do not have the right for reimbursement
for the improvement he had introduced
in the property usufructuary might
depose owner of his property.
e.g. usufructuary, builds a building in the
first place he knows that it is not his,
according to SC, he is not entitled to
reimbursement.
Q: What can the usufructuary do?
A: He may remove them without damage to
property
Q: Is usufructuary builder in Good faith?
A: No. He knows from the start that he does not
own the property. He cannot be considered a
builder in Good faith.
Q: If the usufructuary wants to have the
property leased, is consent from the Naked
Owner necessary?
A: NO CONSENT needed. One of the rights of a
usufruactuary is to enjoy the fruits.
29

Property

Diunggah oleh

Informasi Dokumen

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Property

Diunggah oleh

Hak Cipta:

Format Tersedia

Property Notes A.Y.

Atty. Lopez-Rosario Lectures

Movable (Personal Property) - which can be

Art. 414. All things which are or may be the object of

Immovable (Real Property) - which cannot be

Property Notes A.Y. 2011-2012

Atty. Lopez-Rosario Lectures

Juridical Classification of Real Properties

hardware or those removed by Mayor Lim in

1. by Nature - by itself cannot be moved from

d. in a contract of lease - as a G.R., properties

2. by Incorporation - must be substantial and

Elements of Real Property by Destination

b. plants - still in plastic bag = personal property,

Property Notes A.Y. 2011-2012

Atty. Lopez-Rosario Lectures

immobilized when placed in a plant by the

Property Notes A.Y. 2011-2012

Atty. Lopez-Rosario Lectures

Movables = Personal Property

Bicerra vs. Teneza

Art. 418. Movable property is either consumable or

Consummable - cannot be used in a manner

Property Notes A.Y. 2011-2012

Atty. Lopez-Rosario Lectures

*title - notice to the whole world, protects the

In order to determine consummability:

2. Public Properties *public dominion - inalienable, owned by

2. Is there a physical destruction of the

Property for Public Use Property

posporo, but I have another example YOSI!

3. Is there deterioration of the thing?

Fungible- property that can be replaced by

Property of Public Dominion

Property Based on Ownership:

Heirs of Sps. Palanca vs. Republic

1. Private Ownership - owned by private

The subject parcel of land in this case is forest

Property Notes A.Y. 2011-2012

Atty. Lopez-Rosario Lectures

Property Notes A.Y. 2011-2012

Atty. Lopez-Rosario Lectures

E.G. In judicial foreclosure, the court will

The court will not acquire jurisdiction

Necessary Expenses Useful

Useful Expenses - refer to those which

Property Notes A.Y. 2011-2012

Atty. Lopez-Rosario Lectures

responsible for the necessary expense,

-Kinds of Ownership1. Full ownership - includes all the rights of an

Ornamental/Luxury Expenses - refer to those

1.Jus possidendi - to possess

REMEMBER: In all contracts, the luxury

Q: What kind of contract gives the right to

*In contracts you usually see:

2. Jus fruendi - to enjoy the fruits

1. Ordinary expense - due to the ordinary wear

2. Extraordinary expense - equivalent to

The independent and general right

POSSESSION - simply a right of an owner

Industrial Fruits - produced by lands of

Property Notes A.Y. 2011-2012

Atty. Lopez-Rosario Lectures

Q: In the Revised Penal Code, what is the