EFFECTS OF POSSESSION

Art. 539. Every possessor has a right to be respected in his possession; and
should he be disturbed therein he shall be protected in or restored to said
possession by the means established by the laws and the Rules of Court. A
possessor deprived of his possession through forcible entry may within ten
days from the filing of the complaint present a motion to secure from the
competent court, in the action for forcible entry, a writ of preliminary
mandatory injunction to restore him in his possession. The court shall decide
the motion within thirty (30) days from the filing thereof. (446a)
RIGHTS TO BE RESPECTED IN POSSESSIONGENERAL NATURE
1. Right of a person to be respected in his possession
2. Protection in said right or restoration to said possession thru legal means
3. The writ of preliminary mandatory injunction
SPECIFIC RIGHT TO BE RESPECTED IN POSSESSION
1. Reasons for protection of possession
a. Possession is very similar to ownership and as a matter of fact modifies ownership
b. Possession almost invariably gives rise to the presumption that the possessor is the
owner
2. Every possessor is protectedwhether concept of owner or holder
LEGAL MEANS FOR RESTORATION TO POSSESSION
1. To prevent spoliation or a disregard of public order
2. To prevent deprivation of property without due process
3. To prevent a person from taking the law into his own hands
WRIT OF PRELIMINARY MANDATORY INJUNCTION
1. Injunction cannot substitute for the other, actions to recover possession. The
possessor in the meantime has in his favor, the presumption of rightful possession, at
least, till the case is finally decided
2. Requisites for the issuance
a. In forcible entry casesfile within 10 days from the time of the complaint
b. In unlawful detainer caseswithin 10 days from the time appeal is perfected only if
i. The lessees appeal is frivolous or dilatory
ii. The lessors appeal is prima facie meritorious
Art. 540. Only the possession acquired and enjoyed in the concept of owner
can serve as a title for acquiring dominion. (447)
POSSESSION IN THE CONCEPT OF OWNER
If a person possesses in the concept of ownerhe may eventually become the owner by
prescription
Thus, a possessor merely in the concept of holder cannot acquire property by acquisitive
prescriptionone cannot recognize the right of another and at the same time claim
adverse possession.
POSSESSION IN THE CONCEPT OF HOLDER
1. Lessees
2. Trustees
3. Antichrectic creditors

4. Agents
5. Depositaries
6. Co-owners
Art. 541. A possessor in the concept of owner has in his favor the legal presumption that
he possesses with a just title and he cannot be obliged to show or prove it. (448a)
PRESUMPTION THAT POSSESSOR HAS JUST TITLE
1. One must be in possessionactual or constructive
2. The possession must be in the concept of owner
THE KINDS OF TITLE
1. True and valid title (titulo verdadero y valido)there was a mode of transferring
ownership and the grantor was the owner
2. Colorable title (titulo Colorado)that title, although there was a mode of transferring
ownership, still something is wrong since the grantor is not the owner
3. Putative titlewhere although the person believes himself to be the owner, he is
nonetheless is not, because there was no mode of acquiring ownership
Art. 542. The possession of real property presumes that of the movables therein, so long
as it is not shown or proved that they should be excluded. (449)
PRESUMPTION OF POSSESSION OF MOVABLES FOUND IN AN IMMOVABLE APPLICABILITY
OF ARTICLE
1. Whether the possessor be in good faith or bad faith
2. Whether the possessor be in one owns name or in anothers
3. Whether the possessor be in concept of owner or holder
Art. 543. Each one of the participants of a thing possessed in common shall be deemed
to have exclusively possessed the part which may be allotted to him upon the division
thereof, for the entire period during which the co-possession lasted. Interruption in the
possession of the whole or a part of a thing possessed in common shall be to the
prejudice of all the possessors. However, in case of civil interruption, the Rules of Court
shall apply. (450a)
EXCLUSIVE POSSESSION BY A PREVIOUS CO-OWNER SHALL BE DEEMED
It gives a right and not just a mere presumption
RULES TO APPLY FOR CIVIL INTERRUPTION
Civil interruption is produced by judicial summons to the possessor
Judicial summons shall be deemed not to have been issued and shall not give rise to
interruption
o If it should be void for lack of legal solemnities
o If the plaintiff should desist from the complaint or should allow the proceedings to
lapse
o If the possessor should be absolved from the complaint
Art. 544. A possessor in good faith is entitled to the fruits received before the
possession is legally interrupted. Natural and industrial fruits are considered
received from the time they are gathered or severed. Civil fruits are deemed to
accrue daily and belong to the possessor in good faith in that proportion. (451)
RIGHTS OF A POSSESSOR IN GOOD FAITH TO FRUITS ALREADY RECEIVED
Art. 545. If at the time the good faith ceases, there should be any natural or
industrial fruits, the possessor shall have a right to a part of the expenses of
cultivation, and to a part of the net harvest, both in proportion to the time of

the possession. The charges shall be divided on the same basis by the two
possessors. The owner of the thing may, should he so desire, give the
possessor in good faith the right to finish the cultivation and gathering of the
growing fruits, as an indemnity for his part of the expenses of cultivation and
the net proceeds; the possessor in good faith who for any reason whatever
should refuse to accept this concession, shall lose the right to be indemnified
in any other manner. (452a)
Art. 546. Necessary expenses shall be refunded to every possessor; but only
the possessor in good faith may retain the thing until he has been reimbursed
therefor. Useful expenses shall be refunded only to the possessor in good faith
with the same right of retention, the person who has defeated him in the
possession having the option of refunding the amount of the expenses or of
paying the increase in value which the thing may have acquired by reason
thereof. (453a)
Art. 547. If the useful improvements can be removed without damage to the
principal thing, the possessor in good faith may remove them, unless the
person who recovers the possession exercises the option under paragraph 2 of
the preceding article. (n)
Art. 548. Expenses for pure luxury or mere pleasure shall not be refunded to
the possessor in good faith; but he may remove the ornaments with which he
has embellished the principal thing if it suffers no injury thereby, and if his
successor in the possession does not prefer to refund the amount expended.
(454)
Art. 549. The possessor in bad faith shall reimburse the fruits received and
those which the legitimate possessor could have received, and shall have a
right only to the expenses mentioned in paragraph 1 of Article 546 and in
Article 443. The expenses incurred in improvements for pure luxury or mere
pleasure shall
not be refunded to the possessor in bad faith, but he may remove the objects
for which such expenses have been incurred, provided that the thing suffers
no injury thereby, and that the lawful possessor does not prefer to retain them
by paying the value they may have at the time he enters into possession.
(445a)
Art. 550. The costs of litigation over the property shall be borne by every
possessor. (n)
Art. 551. Improvements caused by nature or time shall always insure to the
benefit of the person who has succeeded in recovering possession. (456)
Art. 552. A possessor in good faith shall not be liable for the deterioration or
loss of the thing possessed, except in cases in which it is proved that he has
acted with fraudulent intent or negligence, after the judicial summons. A
possessor in bad faith shall be liable for deterioration or loss in every case,
even if caused by a fortuitous event. (457a)
Art. 553. One who recovers possession shall not be obliged to pay for
improvements which have ceased to exist at the time he takes possession of
the thing. (458)
IMPROVEMENTS WHICH CEASE TO EXIST
Art. 554. A present possessor who shows his possession at some previous
time, is presumed to have held possession also during the intermediate
period, in the absence of proof to the contrary. (459)
PRESUMPTION OF POSSESSION DURING INTERVENING PERIOD
Art. 555. A possessor may lose his possession:
(1) By the abandonment of the thing;

(2) By an assignment made to another either by onerous or gratuitous title;

(3) By the destruction or total loss of the thing, or because it goes out of
commerce;
(4) By the possession of another, subject to the provisions of Article 537, if the
new possession has lasted longer than one year. But the real right of
possession is not lost till after the lapse of ten years. (460a)
ABANDONMENT
1. Possessor in the concept of owner
2. The abandoner must have the capacity to renounce or to alienate
3. There must be physical relinquishment of the thing or object
4. There must be no more spes recuperandi/expectation to recover or animus
revertendi/intent to return or get back
N.B: Abandonment which converts the thing into res nulliusownership of which may
ordinarily be obtained by occupationdoesnt apply to land. Ownership of land cannot
be obtained through occupation.
ASSIGNMENT
1. Complete transmission of ownership rights to another person
2. At no time did the thing not have a possessor
3. Both possession de facto and de jure are lost and no action will allow recovery
POSSESSION OF ANOTHER
1. If person isnt in possession for more than 1 year, he loses his possession de facto
2. If a person loses possession for more than 10 years, he loses possession de jure or the
real right of a possessor
Art. 556. The possession of movables is not deemed lost so long as they
remain under the control of the possessor, even though for the time being he
may not know their whereabouts. (461)
WHEN POSSESSION OF MOVABLES IS NOT LOST OR NOT LOST
If the possessor has no idea at all about the whereabouts of the movable, possession is
lost
BUT not when he more or less knows its general location, though he may not know its
precise or definite location
Art. 557. The possession of immovables and of real rights is not deemed lost,
or transferred for purposes of prescription to the prejudice of third persons,
except in accordance with the provisions of the Mortgage Law and the Land
Registration laws. (462a)

LOSS OF IMMOVABLES WITH RESPECT TO THIRD PERSONS

Art. 558. Acts relating to possession, executed or agreed to by one who
possesses a thing belonging to another as a mere holder to enjoy or keep it, in
any character, do not bind or prejudice the owner, unless he gave said holder
express authority to do such acts, or ratifies them subsequently. (463)

ACTS OF MERE HOLDER

Art. 559. The possession of movable property acquired in good faith is equivalent to a
title. Nevertheless, one who has lost any movable or has been unlawfully deprived
thereof may recover it from the person in possession of the same.
If the possessor of a movable lost or which the owner has been unlawfully deprived, has

acquired it in good faith at a public sale, the owner cannot obtain its return without
reimbursing the price paid therefor. (464a)

WHEN POSSESSION OF MOVABLE IS EQUIVALENT TO TITLE

1. In bad faithis never equivalent to title
2. In good faith
a. D is entitled to titleas a general rule
b. Is not equivalent to tile when the owner has lost or has been unlawfully deprived of it,
unless the possessor had acquired in good faith at a public sale

SUMMARY OF RECOVERY OR NON-RECOVERY POSSESSION

1. Owner may recover without reimbursement
a. From possessor in bad faith
b. From possessor in good faithif owner has lost or has been unlawfully deprived
2. Owner may recover but should reimburse
a. If the possessor acquired the object in good faith at a public sale or auction
3. Owner cannot recover, even if he offers to reimburse
a. If the possessor acquired it in good faith and for value by purchase from a merchants
store, fairs, or markets in
accordance with the Code of Commerce
b. If owner by his own conduct precluded form denying the sellers authority to sell
c. If possessor had obtained the goods because he was an innocent purchaser for value
and holder of a negotiable
document of title
Art. 560. Wild animals are possessed only while they are under one's control;
domesticated or tamed animals are considered domestic or tame if they retain
the habit of returning to the premises of the possessor. (465)
THREE KINDS OF ANIMALS
1. Wild animalswhich live naturally independent of man
2. Domesticatedwild by nature but recognizes the authority of man
3. Domesticborn and reared ordinarily under the control of and care of man
POSSESSION OF WILD ANIMALS
Ones possession of wild animals is lost when they are under anothers control or under
no ones control
DOMESTICATED OR TAMED ANIMALS
The possessor doesnt lose possession of themas long as habitulally they return to the
possessors premises
Impliedly, possession of them is lost if the aforementioned habit has ceased
Art. 561. One who recovers, according to law, possession unjustly lost, shall be
deemed for all purposes which may redound to his benefit, to have enjoyed it
without interruption. (466)
LAWFUL RECOVERY OF POSSESSION THAT HAD BEEN UNJUSTLY LOST
Applies to both possessors in good faith and bad faith, but only if beneficial to them
Thus, a possessor in good faith for the purpose of prescription may make use of this
article

Right of Possessors to Necessary Expenses Whether in good faith or in bad faith, a

possessor is entitled to the refund of necessary expenses incurred by him.
In addition, a possessor in good faith is also entitled to retain the thing until he has been
reimbursed therefor.
Note that this right of retention in relation to necessary expenses is available only to a
possessor in good faith.
A possessor in bad faith has no right of retention. Right of Possessors to Useful Expenses
Only the possessor in good faith is entitled to the refund of useful expenses.
Stated otherwise, a possessor in bad faith is not entitled to the refund of useful
expenses. In making the refund, the owner (or the person who has defeated the
possessor in good faith in the possession)has the option:
(1) to refund the amount of the expenses; or
(2) to pay the increase in value which the thing may have acquired by reason of the
useful expenses.
Until the possessor in good faith is reimbursed the useful expenses in the manner
mentioned above, he also enjoys the right to retain the property The possessor in good
faith may, in lieu of reimbursement for the useful expenses, remove the useful
improvement but subject to compliance with the following requisites:
(1) The removal can be done without damage to the principal thing. By damage, it
means that which reduces the value of the thing and not simply natural damage
resulting from the separation of the accessory and the principal. Hence, if only ordinary
repairs will be needed by the separation, the separation will be permissible.
(2) The owner does not choose to appropriate the improvements by refunding to the
possessor in good faith the useful expenses in the manner discussed above. Stated
otherwise, the owner can prevent the possessor in good faith from removing the useful
improvements either by paying the possessor in good faith the actual amount of the
expenses or the increase in value which the thing may have acquired by reason of the
useful expenses. Does a possessor in bad faith have the right to remove useful
improvements? The answer is clearly in the negative. Recognized authorities on the
subject are agreed on this point.
Under Article 547of the New Civil Code, only a possessor in good faith may remove
useful improvements if this can be done without Damage to the principal thing and if the
person who recovers the possession does not exercise the option of reimbursing the
useful expenses Right of Retention A possessor in good faith is entitled to retain the
thing until he has been reimbursed of the necessary or useful expenses he incurred. This
right of retention has been considered as one of the conglomerate of measures devised
by the law for the protection of the possessor in good faith. Its object is to guarantee the
reimbursement of the expenses, such as those for the preservation of the property, or for
the enhancement of its utility or productivity. It permits the actual possessor to remain in
possession while he has not been reimbursed by the person who defeated him in the
possession for those necessary expenses and useful improvements made by him on the
thing possessed. Accordingly, a possessor (or builder) in good faith cannot be compelled
to pay rentals during the period of retention nor be disturbed in his possession by
ordering him to vacate. In addition, the owner of the land is prohibited from offsetting or
compensating the necessary and useful expenses with the fruits received by the builder-

possessor in good faith. Otherwise, the security provided by law would be impaired. This
is so because the right to the expenses and the right to the fruits both pertain to the
possessor, making compensation juridically impossible; and one cannot be used to
reduce the other. Pending reimbursement of the amount due him, the possessor in good
faith is likewise entitled to have his right recorded in the certificate of title as an
encumbrance on the property so that whoever may get the property will be forewarned
of his right to such retention and refund Right of Possessors to Expenses For Pure Luxury
Whether in good faith or in bad faith, a possessor is not entitled to a refund of the
expenses incurred by him for pure luxury or mere pleasure, called ornamental
expenses .214 Both kinds of possessors are entitled, however, to a right of removal of
the ornaments with which they embellished the principal thing provided that such
principal will suffer no injury. If the owner, however, exercises his option to retain
possession of the ornaments by reimbursing the value thereof to the possessor, the
latter s right of removal may not be exercised. In determining the extent of the value
of the reimbursement, the good faith or bad faith of the possessor shall be taken into
consideration since the amount of such reimbursement shall vary depending on the
possessor s good faith or bad faith. If the possessor is in good faith, the extent of the
refund shall be the actual amount expended. If the possessor is in bad faith, on the other
hand, the extent of the refund shall be limited to the value of the ornament at the time
the owner enters into the possession of
The property irrespective of the amount actually spent by the possessor in bad
faith. Rule on Improvement Caused by Nature The foregoing discussion in connection
with the rights of possessors to improvements has reference to improvements
caused by the will of the possessor, such as trees planted by them or buildings
constructed by them. If the improvements, however, are caused by nature or by time,
the same shall inure to the owner following the law on accession, without need of
indemnifying the possessor in good faith. This is confirmed by Article 551 of the New
Civil Code, which states: Art. 551. Improvements caused by nature or time shall
always insure to the benefit of the person who has succeeded in recovering possession.
(456) Building on Another s Land Using Another s Materials Situation
Contemplated in Art. 455 Article 455 of the New Civil Code contemplates of a situation
where the builder, planter or sower has built, planted or sown on another s land
using materials belonging to another person. In such a situation, there are actually three
persons whose good faith or bad faith must all be taken into account, namely:
(1) the landowner;
(2) the builder, planter or sower; and (3) the owner of the materials. To simplify the
resolution of this controversial situation, Article 455 offers to settle first the right
of the owner of the materials whose only interest, of course, is the recovery of the value
of his materials. Such recovery, however, shall depend on whether he acted in good faith
or in bad faith. If the Owner of the Materials Acted In Bad Faith He Loses His Materials
Without Indemnity If the owner of the materials acted in bad faith, he loses his materials
without any right whatsoever. This is so because if he knew that his materials were being
used by another but did not object thereto, it is as if he was the one who built, planted or
sowed with his materials in bad faith on the land of another. The builder, planter or sower
would be considered merely an agent of the owner of
The materials. Therefore, the provisions of Article 449 of the Civil Code will apply
by analogy, in which case, he loses what he has built, planted or sown without right to
indemnity. He is even liable for damages. The only exception to this rule is if all the
parties acted in bad faith because then their rights would be governed as if they were in
good faith. Rights of the Landowner If the owner of the materials acted in bad faith, the
landowner can claim what has been built, planted or sown on his land without any
obligation to indemnify the owner of the materials. This is in pursuance to the principles
stated in Articles 449 and 445 of the Civil Code. Rights of the Builder, Planter or Sower

The rights of the builder, planter or sower shall be determined depending on his good
faith or bad faith.
(a) If he acted in good faith. If he acted in good faith in that he thought honestly that
both the land and the materials belonged to him, he may claim from the landowner a
reasonable compensation for his labor. This is based on the principle that no person
should be unjustly enriched at the expense of another.
(b) If he acted in bad faith. If he acted in bad faith in that he knew that the materials
he was using belonged to somebody else or that he had no right to the land, then he is
not entitled to anything. He may instead be made to pay damages to the landowner. If
the Owner of the Materials Acted In Good Faith He Must Be Reimbursed For the Value of
His Materials If the owner of the materials acted in good faith, in that he did not know
that his materials were used by another, the law says tha the is entitled to recover the
value of his materials. This is expressly recognized in Article 455 of the New Civil Code.
Builder, Planter or Sower Is Primarily Liable The builder, planter or sower is primarily
liable to make such payment to the owner of the materials310 without damages if
he(builder, planter or sower) acted in good faith and with damages if he acted in bad
faith. If such payment is made by the builder, planter or sower, he becomes the owner of
the materials and the case would be the same as the second controversial case

That of building, planting or sowing with one s own materials on the land of
another. Hence, to determine the rights and obligations of the builder, planter or sower
and the landowner against each other, we will again apply the rules in the following four
situations:
(1) if both the landowner and the builder, planter or sower acted in good faith(Art. 448);
(2) if the landowner acted in good faith and the builder, planter or sower acted in bad
faith (Arts. 449, 450 and 451);
(3) if both parties acted in bad faith (Art. 448, in relation to Art. 453); and
(4) if the landowner acted in bad faith and the builder, planter or sower acted in good
faith (Art. 447, in relation to Art. 454) Subsidiary Liability of the Landowner The
landowner is subsidiarily liable for the payment of the value of the materials.
This subsidiary liability, however, of the owner of the land is only available if the
following conditions are met:
(1) in case of insolvency of the builder, planter or sower; and
(2) the owner of the land appropriates the building, planting or sowing. A fortiori, the
owner of the land is not liable to the owner of the materials if the former chooses to
order the demolition of the construction or the removal of the building, planting or
sowing which he has the right to do in case the builder, planter or sower acted in bad
faith. If the landowner pays for the value of the materials, he becomes the owner thereof.
In such a situation, he may demand damages from the builder, planter or sower if the
latter acted in bad faith, or pay the builder, planter or sower a reasonable compensation
for his labor if the latter acted in good faith.