Discussion on property

res nullius things communes

alienus

public dominion

private ownership

immovable
movable

Treasure ownership
trespasser stranger finder owner authorized by chance owner is not known - 1/2 not by chance owner is known returned

Accession

natural fruits

discreta (produced)

industrial fruits

civil fruits

building

Accession Industrial accession

planting

sowing

attachment made on immovable

Alluvion

Avulsion continua (attached or incorporated) Accession Natural River beds change Adjunction/Conjunction Island formation attachment made on movable Commixtion/Confusion

Specification

Natural fruits includes spontaneous products of the soil and the young of animals, and other products derived therefrom Other products includes horse manure, eggs of chicken, Spontaneous means - Anything grows withOUT the intervention of the owner, no participation Industrial fruits

 Intended by man Includes fishes from the fishpond (which was purposely constructed as breeding place) o Sugarcane plantation o Germilina trees intended for lumber o Cogon specifically planted

Industrial fruits This includes rent from rooms, accumulated interests of deposits in banks building accesion industrial

planting

sowing Continua immovable

avulsion

alluvion accession natural change of river beds

island formation

On continua which is immovable and industrial Article 447 Builder constructing Planting perennial trees Sowing those harvested singly In article 447 the OWNER OF THE LAND and the BPS are the same while the MATERIALS ARE OWNED BY ANOTHER If both are in good faith o Landowner/BPS may appropriate but reimburse the Owner of the materials o The owner of the materials have a Limited right of removal i.e. he may remove the materials owned by him if it does not destroy/deteriorate the thing He also have the right to be reimburse in that case of limited right of removal not attained If the landowner/BPS is in bad faith while the OWNER OF THE MATERIALS is in good faith o Landowner/BPS does not have any right to appropriation only liable for damages o Owner of the materials have the right of reimbursement and damages Absolute right of removal and damages Hypothetical situation: When owner of the land built a small house and when materials thereon used were owned by 3rd persons. The land owner is in good faith at the time of building. Article 447, the owner of the land has the right to appropriate but is liable to pay the just value of the materials Article to 452 (in relation to 448) o This is provision on the right granted on BPS o BPS who is in good faith, in case the land owner will appropriate for himself o This separately treated and may not be used in when the BPS is in bad faith since it will be inconsistent When the owner of the materials will not allow such use of materials (still goodfaith) Article 447, The owner shall have to remove if he can do so, provided that he will not destroy the property o Here the building should not be destroyed o This is called limited right of removal

 2 options of the owner of the materials o Right of reimbursement o Limited right of removal If the two parties cannot agree (the two are still in good faith) Land owner has the right to appropriate since the materials are accessory Since there is five recognized principles as guide o Accessory follows the principal When the land owner is bad faith, because he knew that the materials did not belong to him: Article 447 The owner of the materials may removed them in any event with right to damages In any event means absolute right of removal o he can remove the material even when it will destroy to the works/building this is because of the bad faith of the owner basis of indemnity o value of the thing/materials that were lost o example when the materials should have been sold: lucro cesanti profits you fail to realize if were not for the use or the danios severenti damages caused o another example is car selling when the car was not sold due to the use lucro cesanti profits you fail to realize if were not for the use or the o when the car is not for sale but were used in bad faith danios severenti damages caused 2 options for the owner when the builder is in bad faith o Reimbursement + Damages o Removal + Damages Hypothetical question: When the materials were returned by the landowner to the owner, after the it was used by the land owner in the building: Is he allowed? o Yes, provided pay the ???? Cannot when there is damage: o NO, when the materials are damage due to the use When the material owners will allow then ok, this amount to compromise ARTICLE 448 - In this article the OWNER OF THE MATERIALS is the BPS, while the landowner is another person st 1 sentence the landowner is in good faith

landowner may appropriate but pay first

good faith

landowner may obliged the BP to buy the land or the Sower to rent

builder, planter, sower

forced lease (rent) by BP in case when he cannot pay due to value over than BP, court fixed term if disagreed on it

BPS (with full knowledge) loses what has been built, planted or sown WITH DAMAGES landowner (good faith) bad faith BPS may be ordered demolition of B or remove PS WITH DAMAGES

The landowner must have protested because if he did not protest he will be in bad faith Issue here is who should own the building, plant, or sowed property? o The landowner shall have the right to appropriate but should pay first (this is unjust enrichment) that is why there is obligation to pay the indemnity of a just value after payment of just value therefore tender payment to the BPS FIRST BEFORE APPROPRIATING The BPS shall have the right to appropriate if no payment is made The landowner cannot appropriate when he cannot pay first The payment shall include the expenses for the preservation of the land Like protection of the property from erosion there was construction of dike in a structure beside the river o OR the landowner may obliged the BPS to pay the value of the land On sower may obliged the rent because this is small time plants like mongoes or peanuts On builder or planter may obliged to pay the property (the landowner has the option to sell)

When the value of the land is too much like P1M and the BP cannot buy it. BP cannot be obliged if the value of the land is more than the value of the building or plant but BP will forced rent o Contract that is forced because it is mandated by law o The terms and conditions shall be fixed by court (on disagreemen

WHEN THE BPS IS IN BAD FAITH: Article 449-451 Hypothetical situation: BPS has full knowledge that the property does not belong to him made improvements therein. The landowner upon knowledge objected. o The BPS loses what has been built, planted or sown. o The owner may order the BPS which has been built planted, or sowed be removed o Entitlement to damages to both of the above

Article to 452 (in relation to 448) This is the provision on the right granted on BPS BPS who is in good faith, in case the land owner will appropriate for himself This separately treated and may not be used in when the BPS is in bad faith since it will be inconsistent Article 453 Bad faith on the Landowner and bad faith of the BPS o when the landowner knows that there were activities\improvements and there was no objection interposed o The result when the BPS is in bad faith then they will be treated as in GOOD FAITH on article 448 o The two negatives or bad faith will be transformed in good faith used now article 448 Assignment accession natural and co-ownership article 454 upwards Good faith happens when the person (landowner, BPS, owner of the materials) has NO knowledge of ownership of land/on the acts of BPS - When he is not aware that there is a flaw or defect in his title or mode of acquisition which invalidates it Bad faith happens when the person (landowner, BPS, owner of the materials) has KNOWLEDGE of ownership/on the acts of BPS without objection thereto

Instances when there is no good faith: 1. Lessee who BPS on the land rented 2. BPS acting on the land which was promised to be donated to him 3. Lessee who BPS on a land which was stipulated with a promise to sell 4. Tolerance of owner on BPS o But what if the BPS is a copra-dryer that is transferrable then it is not under art 448 which goodfaith/badfaith is applied, an ordinary action is applied here. -------------------------------------------------SEPTEMBER 1, 2012--------------------------------------------------NATURAL ACCESSION 1. Article 457 alluvion gradual and imprescritible 2. Article 459 avulsion sudden and abrupt 3. .. 4.

Alluvion discussion: (late) AVULSION: Who owns the particular accession which takes place whenever the current of a river, creek, torrent or lake segregates from an estate on its bank a known portion of land and transfers it to another. ownership is retain by landowner upon which it was cast but with time of removal within two years, but with the prescription by accession on the two years hypothetical situation: Mountain slope, rolling down to the tenement below, not beside (not avulsion) but on top, who will own the land? o By analogy, natural accession, apply article 459 for as LONG AS IT IS IDENTIFIABLE

When the trees uprooted and carried away by the current of the waters Belong to the owner of the land upon which they may be cast but only after six months after the owners of the land do not claim it. o If owners claim it, they shall pay the expenses incurred in gathering them or putting them in a safe place Double principle here because of the two years prescription since the book never mentioned of the failure to remove the trees uprooted. Hypothetical situation:

Standing trees not uprooted but by current was transferred to another estate. Who owns the trees? By analogy the owner of the land upon which they may be cast.

Changes in the course of rivers: River beds which are abandoned through the natural change of the waters o Ipso facto belong to the owners whose lands are occupied by the new course in proportion to the area lost. Owners of the lands adjoining the old bed shall have the right to acquire the same By paying the value not exceeding the value of the area occupied by the new bed

ADJUNCTION: Article 461 discussion: Table is formed by the nails and wood. RULE: accessory follows the principal Principal is deemed to that to which the other thing has been united as ornament or for perfection. - thing of the greater value or greater volume (this if the above definition cannot be made) the owner of the accessory is in bad faith, the owner of the principal thing shall have the right to damages for he has the right to appropriate. - Vice versa situation when the owner of the principal thing is in bad faith he has no right to damages (but the owner of the accessory thing??) CONFUSION/COMMIXTION - Article 472 - Finished product shall be appropriated by the owners of the things mixed - But subject to bad faith/good faith rule o Entitled to damages under article 470

Title III - CO-OWNERSHIP - Whenever the ownership of an undivided thing or right belongs to different persons. - Right to common dominion which two or more persons have in a spiritual part of a thing which is not materially or physically divided Instances it may arise: 1. By reason of succession 2. Chance, fortune, or accident o Hidden treasure

 belongs to the finder, to the owner of the land 3. By occupation Differences between partnership - No juridical partnership - Creation - Purpose is for common enjoyment and not necessarily for business - Governing law is by o Agreement of partners o Special provisions o NCC Co-ownership is presumed to be equal - Prove first of the contribution for it not to be equal Any stipulation to the contrary is void o Whenever there was agreement to interest like 1/3 interest, so that it will be void under the above sentence under art 484 o But on 483 this is contradicting since co-ownership is govern by agreement Why are we now declaring int 484 to be void, but sir says it shall follow the agreement by parties Use of thing shall be - Used by all the co-owners - According to the purpose of its intention o When there is no expressed purposed then it shall be viewed from there NATURE o Or by PREVIOUS USED OF WHICH IT WAS DEVOTED Example building, without specifications to its use SHALL be for nature or use - Not injure the interest of the other - Not prevent the other to use it - May be changed by o Agreement o Express o implied

Each co-owners may bring action in ejectment - Since it is fiduciary Administration - Majority o Extent of the interest o plus 1

o Like 5 co-owners, A 1/4 B 1/4 C 1/8 D 1/8 E The decision of CDE cannot be majority since it is only of the total interest. But when the ABC shall decide it is now majority. Alteration of property - Consent of ALL co-owners is required Taxes and Expenses for preservation - Expenses incurred without which the thing may be lost or may be diminished in value or use - Each may compel the other to contribute - To the co-owner who does not want to pay o May renounce his share of interest commensurate to the expense Renouncement is difficult as to discussion by sir: o This is Dacion en pago but this needs consent of creditor, this is not unilateral o How to determine of the renouncing partner? Where is it based at the value at the time of renunciation, or at the time of expenses were made or the time of acquisition of interest or after the acquisition of interest? Example 1/6 of interest shall or may be based on payment date or on the present interest. This is not fixed by law. But still the co-owner can renounce. Repairs for preservation - Anyone of the co-owners - If practicable shall notify the others o Purpose is with hiring of lesser cost o The burden of proof shall be on the co-owner who incurred the expenses if without notification - To the co-owner who does not want to pay o May renounce his share of interest commensurate to the expense Expenses for improvement/embellishement: - Majority decision - Example is fence or grotto, these needs the majority decision

GR: co-owner may demand at anytime the partition - because it is a source of conflict of rights

Each co-owner may demand at any time demand for partition o because the law frowns co-ownership a period of 10 years is the effect of co-ownership of a property o renewal shall not exceed 20 years a period of more than 10 years shall be allowed o on provision of testator or donor to the heirs/donee on the indivision of property for 20 years o includes the legitime as expounded by the art 1083 o but this could be terminated upon grounds of dissolution of partnership accdg to art 1083 upon petition of co-heirs

exception: when partition is prohibited by law situation on division of thing at partition: auction sale the viable procedure in case of physical indivisibility of thing or when the division would render the thing UNSERVICEABLE (accdg to 498) - the proceeds shall be divided among the co-owners Title VI USUFRUCT - real right to enjoy the property of another - with the obligation of preservation its form and substance, o unless the title constituting it or the law otherwise provides. 2 requisites of usufruct 1. essential real right to enjoy the property of another 2. accidental obligation of preserving the from and substance of such property o except abnormal usufruct when not to preserve but to consume it -----------------------------------------------------------september 21, 2012------------------------------------

DISCUSSION ON USUFRUCTUARY Article 562 Definition Obligations of the usufructuary starting in article 583 Article 565 - in a deed of donation or on a will conferring disposal by the usufructuary - this is valid under this article, because what governs govern the usufruct is the contract primarily govern

so that the if you are the usufructuary you should see to it that the intention is reflected since it is primarily governed by it. all matters constituting the usufructuary

bond or security (article 583) - why would you put up a bond or security? - This is needed because on security/bond there will observance of ordinary diligence and in cases in destruction or abuse arising from negligence or fraud. What are the cases/instances when bond/security is dispensed with: 1. No one will be injured by the lack of a bond or security 2. In case of Caucion Juratoria When one is poor, you were there is allowance to stay in the house, The person shall go to the court, petition that the he be exempted from security, and enjoy the stay in the house and furniture, This is Caucion Juratoria petitioning the court because of its indigent he can be exempted in the bond/security requirement This is like pauper litigant For social justice 3. Donor has reserved to himself the usufructuary right of the thing he has donated Mechanics Valid donation in a public instrument Reservation of the usufructuary right to the donor Donee naked owner 4. In case of parental usufruct, except when the parents contract a second marriage If the property worth P50,000 or more (?) RIGHTS OF THE USUFRUCTUARY Hypothetical situation: Mango trees with growing fruits (still attached to the trunk of the trees), the works like the pesticide on the growing fruits amounted to P100,000. Who owns the growing fruits? Art. 566 Usufructuary shall owned it, unless it is a hidden treasure which case he shall be a stranger On treasure the usufructruary is a finder and therefore entitled to of the treasure Arti. 567 Industrial fruits those purposely planted Natural fruits spontaneous - Belong to the owner, if the fruits growing at the time of the usufruct

The owner has no obligation to refund to the owner any expenses incurred THE naked owner shall owned it if it has been harvested. The article shall not prejudice the rights of a third person which were acquired at the commencement or at termination of the usufruct Reimbursement shall come from the proceeds on the fruits that acquired at the termination of the usufruct o When the proceeds were not

Why are civil fruits not applicable here? Since it is deemed to accrue daily, therefore proportioned under article 568 and 569.

Abnormal usufruct - Those where the usufructuary does not have the obligation of preserving the form and substance of the property which is the object of the usufruct o There are gradual deterioration depreciation - The usufruct is not obliged to return them at the termination except at their condition at that time - The usufruct is to return them at their depreciated state without obligation for the deterioration. o Except when the deterioration is due to fraud or negligence - This also includes consumables including money o Obligation of paying their appraised value at termination if appraised on delivery o Right to return the same quantity and quality, or current price at the time the usufruct ceases OBLIGATION DURING THE PENDENCY OF THE USFRUCT: 1) To take care of the property as a good father of a family 2) To make ordinary repairs on the property - EXTRAordinary repairs obligation to notify the naked owner o If made by the usufruct shall be subject to reimburse, when the naked owner did not make the extraordinary repairs o Value of increase such as an improvement shall be reimbursed 3) Taxes imposed in relation to the fruits/incidental and annual charges o Taxes on capital naked owner EXTINGUISHMENT OF THE USUFRUCT 1. Arrival of period

2. Merger of the 3. Prescription 4. Death of the usufruct

DISCUSSION ON DONATION Donation act of liberality whereby a person disposes gratuitously of a thing or right in favor of another, who accepts it DONATION inter vivos and DONATION MORTIS CAUSA - There is a need to distinguish because of the form to be observed o In mortis causa observed rules in will making o In inter vivos we talk about form DONATION INTER VIVOS (with regards to formal requirements) - If a personal property donated is not exceeding P5000 can be done orally which must be simultaneous delivery of the thing or the document representing the right donated - Exceeding P5000 must be in writing Hypothetical situation: A car owned by the DOM was donated to his concubine. The DOM wanted back the car after 2 years and tasked persons to get it forcibly. A carnapping case was filed against him. At preliminary investigation, the deed of donation cannot be presented and only the registration. The case was dismissed. The basis was Donation provision on personal property needed P5000 to be in writing and if not in writing it is VOID. The donor is still the owner of the car. If the donation is REAL PROPERTY always in PUBLIC INSTRUMENT

PERFECTION OF DONATION - Moment the donor knows of the acceptance by the donee Hypothetical situation: Deed of donation was made on Sept 1, 2012. The Deed of Acceptance was made known to the donor at September 5, 2012. When the donee died on September 4, 2012, the donation was not perfected even when the donee accepted it on September 2, 2012. The acceptance must be made during the lifetime of the donee or the donor. This is also applicable on insanity, civil interdiction. There is a need for acceptance because the donee is not obliged to accept it.

PERFECTION IS NOT ONLY ON THE KNOWLEDGE OF DONORS KNOWLEDGE BUT ALSO ON THE o Effectivity of contracts Was there death, insanity, civil interdicted

o Formal requirements Article 1323 on contracts, offer becomes ineffective upon o Death of either party o Insanity o Civil interdiction DISCUSSION ON SUCCESSION; WILL-MAKING Who can make a will? - Of legal age - Of sound mind (sufficient at the time of the will knows the nature, the proper object, the party-donee, the nature and character of testamentary act) o Therefore insane cannot make a will It should be in language known to the testator Witnesses atleast 3. Notarized last will and testament Formalities of a will is like a codicil

Matter of revocation - During lifetime of the testator o By implication of law, o By overt act By tearing Legitime defined Compulsory heirs: 1. Legitimate children AND descendants 2. In default of the children and descendants, the legitimate parents OR ascendants 3. Widow or widower 4. Illegitimate children

Distribute the following Estate: (art. 888)

Testate (P120,000)

P30000

P30000

The P60,000 is the free disposable portion and shall be given to the will of the testator. If there is no disposition of the P60,000 it will be again distributed to the compulsory heirs as legal heirs (which is highly impossible since the testator would be making a will to distribute it) The P50,000 was given to a lady friend but subject to conditions: o Art 739 for purposes of incapacity of making a will Parties guilty of adultery or concubinage at the time of the making of will, by preponderance of evidence only Adultery any woman who is married and have carnal knowledge with another man not her husband; man has carnal knowledge with a woman having knowledge that the woman is lawfully married o Marriage contract and the receipt in motels Guilty of criminal offense or in consideration thereof Those made to a public officer or his wife, descendants and ascendants by reason of his office

Distribute the Intestate (article 980)

decedent P120,000
A P60,000
Unknown persons not known to anyone Unknown to the testator not know Unworthy heir when the heir prevents the making of the will

B P60,000

Reserve troncal -