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PROPERTY Prof.

Labitag

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TABLE OF CONTENTS
I. DEFINITION OF PROPERTY............................................................................3 A. Classification under the Civil Code...........................................................................................................3 B. By Ownership..........................................................................................................................................4 C. Other Classifications................................................................................................................................5 II. OWNERSHIP...........................................................................................7 A. Definition.................................................................................................................................................7 B. Bundle of Rights included in Ownership...................................................................................................7 C. Other Specific Rights found in the Civil Code...........................................................................................7 D. Limitations of Real Right of Ownership....................................................................................................8 III. RIGHTS OF ACCESSION.............................................................................10 A. Concept.................................................................................................................................................10 B. General Principles of Accession.............................................................................................................10 C. Obligations of Receiver of Fruits to Pay Expenses by 3rd person in producti on, gathering and preservation..................................................................................................................................................10 D. Kinds of Accession.................................................................................................................................10 1. Accession Discreta.............................................................................................................................10 2. Accession Continua............................................................................................................................11 Over Immovables..................................................................................................................................11 Over Movables.......................................................................................................................................12 IV. QUIETING OF TITLE.................................................................................14 A. Differences between Action to Quiet Title and Action:...........................................................................14 B. Prescription of Action to Quiet Title.......................................................................................................14 C. Who are Entitled to Bring Action?..........................................................................................................14 D. Notes.....................................................................................................................................................14 V. CO-OWNERSHIP.....................................................................................15 A. Definition...............................................................................................................................................15 B. Characteristics of co-ownership.............................................................................................................15 C. Differences between Co-ownership and Joint Tenancy...........................................................................15 D. Differences between Co-ownership and Partnership..............................................................................15 E. Source of Co-ownership.........................................................................................................................15 F. Rights of each co-owner as to the thing owned in common...................................................................16 G. Implications of co-owners right over his ideal share..............................................................................17 H. Rules on co-ownership not applicable to conjugal partnership of gains or absolute community of property........................................................................................................................................................18 I. Special rules on co-ownership from provisions of Condominium Law (Act No. 4726).............................18 J. Extinguishment of co-ownership............................................................................................................18 VI. POSSESSION........................................................................................20 A. Definition and Concept..........................................................................................................................20 B. Essential Requisites of Possession.........................................................................................................20 C. Degrees of Holding of Possession..........................................................................................................20 D. Cases of Possession...............................................................................................................................20 E. What things or rights may be possessed...............................................................................................20 F. What may not be possessed by private persons....................................................................................21 G. Acquisition of Possession.......................................................................................................................21 H. Effects of Possession.............................................................................................................................22 I. Effect of possession in the concept of an owner....................................................................................23 J. Presumptions in favor of the possessor.................................................................................................23 K. Possession may be lost by.....................................................................................................................24 VII. USUFRUCT.........................................................................................25 A. Concept.................................................................................................................................................25 B. Historical considerations........................................................................................................................25 C. Characteristics of Usufruct.....................................................................................................................25 D. Usufruct distinguished from lease; from servitude.................................................................................25 E. Classes of Usufruct................................................................................................................................25 F. Rights of Usufruct..................................................................................................................................26 G. Rights of Naked Owner..........................................................................................................................26 H. Obligations of Usufructuary...................................................................................................................27 I. Special Cases of Usufruct......................................................................................................................28 J. Extinguishment of Usufruct...................................................................................................................28

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Lease of things

VIII. EASEMENTS OR SERVITUDES.....................................................................31 A. Definition...............................................................................................................................................31 B. Essential feature of easements/real servitudes/praedial servitudes.......................................................31 C. Classification of Servitudes....................................................................................................................31 D. General rules relating to servitudes.......................................................................................................32 E. Modes of acquiring easements..............................................................................................................32 F. Rights and obligations of owners of dominant and servient estates......................................................32 G. Modes of extinguishment of easements................................................................................................33 H. Legal Easements...................................................................................................................................34 BOOK III DIFFERENT MODES OF ACQUIRING OWNERSHIP..........................................36 Mode and Title Differentiated........................................................................................................................36 Modes of Acquiring Ownership......................................................................................................................36 Occupation....................................................................................................................................................37 Intellectual creation......................................................................................................................................37 DONATION..............................................................................................38 Nature of donation........................................................................................................................................38 Requisites of donation...................................................................................................................................38 Kinds of donation..........................................................................................................................................38 Who may not give or receive donations........................................................................................................39 Who may give or receive donations..............................................................................................................39 Acceptance of donation.................................................................................................................................39 Form of donations.........................................................................................................................................39 What may be donated...................................................................................................................................39 Effect of donation..........................................................................................................................................40 Revocation and Reduction of Donations........................................................................................................41 LEASE..................................................................................................44 A. General characteristics of every lease...................................................................................................44 B. Kinds of leases.......................................................................................................................................44 C. Lease of things......................................................................................................................................45

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I. DEFINITION OF PROPERTY
PROPERTY

Is an economic concept, meaning a mass of things useful to human activity and which are necessary to life, for which reason they may be organized and distributed in one way or another, but, always for the good of the main. In order that a thing may be considered as property: Utility capacity to satisfy human wants Individuality or Substantivity an autonomous or separate existence; materials composing a thing are not thing in themselves. Appropriability or susceptibility to appropriation

A. Classification under the Civil Code

1. Immovable or Real Property 1. Lands, buildings, road and constructions of all kinds adhered to the soil. 2. Trees, plants, growing fruits while they are attached to the land or form an integral part of an 3. Everything attached to an immovable in a fixed manner, in such a way that it cannot be 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. Machineries, receptacles, instruments and implements intended by the owner of the tenement for industry or works which may be carried on in a building or on a piece of land, and which tends 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. Contract for public works and servitudes and other real rights over immovable property removed without breaking the material or deterioration of the object immovable

a. By Nature those which cannot be moved from place to place


Art 415, Par 1 Land, buildings, road and constructions of all kinds Art 415, Par 8 Mines, quarries and slag dumps b. By Incorporation

Art 415, Par 2 Trees, plants and growing fruits Art 415, Par 3 Everything attached to an immovable Art 415, Par 7 Fertilizers c. Art Art Art Art 415, 415, 415, 415, Par Par Par Par By Destination 4 5 6 9 Statues, reliefs, paintings and other objects for use or ornamentation Machines, receptacles, implements and instruments Animal houses, pigeon-houses, beehives, fishponds and breeding places of similar nature Docks and structures

d.

By Analogy

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Art 415, Par 10 Contracts for public works, servitudes and other real rights over immovable property Movables or Personal Property Art 416 The following are things deemed to be movable property: (1) Those movables susceptible of appropriation which are not included in the preceding article (2) RP which by any special provision of law is considered as personalty (3) Forces of nature which are brought under the control by science (4) In general, all things which can be transported from place to place without impairment of the real property to which they are fixed (c.f. Art 415 No 3) Art 417 The following are also considered as personal property: (1) Obligations and actions which have for their objects movables or demandable sums (2) Shares of stock of agricultural, commercial and industrial entities, although they may have real estate DAVAO SAWMILL v CASTILLO () BERKENKOTER v CU UNJIENG () LOPEZ v OROSA () TUMALAD v VICENCIO () ASSOCIATED INSURANCE v IYA () MAKATI LEASING v WEAREVER () BD. OF ASSESSMENT APPEALS v MERALCO () MERALCO v BD. OF ASSESSMENT APPEALS () MERALCO v BD. OF ASSESSMENT APPEALS () CALTEX v BD. OF ASSESSMENT APPEALS () BENGUET CORP. v BD. OF ASSESSMENT APPEALS () 1. Importance and Significance of Classification From point of view of:

i. Criminal Law ii. Form of contracts involving movables or immovables iii. Prescription iv. Venue/Jurisdiction v. Taxation vi. Double Sales under Art 1544 Art 1544 If the same thing should have been sold to different vendees, the ownership shall be transferred to the person who may have first taken possession thereof in good faith, if it should be IMMOVABLE PROPERTY. (applies to unregistered lands) For registered lands: Should it be IMMOVABLE PROPERTY, the ownership shall belong to the person acquiring it who in good faith, first recorded it in the Registry of Property. Should there be no inscription, the ownership shall pertain to the person who in good faith was first in the possession; and, in the absence thereof, to the person who presents the oldest title, provided there is good faith.

vii. Preference of Credits


viii. Causes of Action to Recover 1. Differences between Real Rights and Personal Rights Point of comparison Definition REAL RIGHTS Power belonging to a person over a specific thing, without a passive subject individually determined against whom such right may be personally exercised 1) Subject and object connected by a relation of PERSONAL RIGHTS Power belonging to one person to demand to another, as a definite passive subject, the fulfillment of a prestation to give, to do or not to do 1) Two subjects: active and passive (bound to perform

Elements

PROPERTY Prof. Labitag


ownership of the former over the latter 2) A general obligation or duty of respect for such relation, there being no particular passive subject 3) Effective actions recognized by law to protect such relation against anyone who may want to disturb it

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prestation incumbent upon him by reason of a juridical tie which binds him to the active subject), who are determined and specified

2) General obligation on the


part of 3rd persons to respect the relation between the active and passive subjects

3) Effective actions in favor of


the active subject against the passive subject for the performance of the prestation by the latter or so that the relation between them may produce its natural and juridical effects Also known as Number of persons involved in the juridical relation Jus in re Active subject 1 Passive subject - the rest of the world without individual determination Generally a corporeal thing Generally affects the thing directly Jus ad rem Definite active subject Definite passive subject

Object of the juridical relation By the manner in which the will of the active subject affects the thing related to it By the causes of creating the juridical relation By the methods of extinguishment of the juridical relation By the nature of the actions arising from them

Intangible thing, i.e. the prestation of the debtor Indirectly through the prestation of the debtor By title alone Not extinguished by the loss or destruction of the thing Only personal actions against the definite debtor

By mode and title Extinguished by the loss or destruction of the thing Real actions against third persons

A. Classification by Ownership
1. Res Nullius does not belong and are not enjoyed by anyone e.g. abandoned property and hidden
treasure

2. Public Dominion owned by the state but enjoyed by all its citizens
cf. Patrimonial Property of State Art 419 Property is either of public dominion or private ownership. Art 420 The following are things of public dominion: (1) Those intended for public use, such as roads, canals, rivers, torrents, ports and bridges, constructed by the State, banks, shores, roadsteads and other of similar character (2) Those which belong to the State, without being for public use, and are intended for some public service or for the development of national wealth

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Art 421 All other property of the State, which is not of the character stated in the preceding article, is patrimonial property Art 422 Property of public dominion, when no longer intended for public use or public service, shall form part of the patrimonial property of the State. Art 424 Property for public use, in the provinces, cities, and municipalities, consists of the provincial roads, city streets, municipal streets, the squares, fountains, public waters, promenades and public works for public service paid for by said provinces, cities, or municipalities. All other property possessed by any of them is patrimonial, and shall be governed by this Code, without prejudice to the provisions of special laws. a. Property of State Art 420 Art 421 Art 422 see above

i. For public use ii. For public service iii. For development of national wealth LA BUGAL BLAAN TRIBAL ASSN. v RAMOS (2004) ON RECONSIDERATION (2005) CHAVEZ v PEA AMARI (2002) ON RECONSIDERATION (2003) USERO v CA (2006) a. i. 1. Property of Municipal Corporations Art 424, Par 1 see above

For public use including public works for public service Private Property a. b. c. Patrimonial Property of State Art 421 see above Patrimonial Property of Municipal Corporations Art 424, Par 2 see above Private Property of Private Persons Art 425 Property of private ownership, besides the patrimonial property of the State, provinces, cities and municipalities, consists of all property belonging to private persons, either individually or collectively.

TANTOCO v MUNICIPAL COUNCIL () ZAMBOANGA DEL NORTE v CITY OF ZAMBOANGA () SALAS v JARENCIO () CEBU ACETYLENE v BERCILLES () MUNICIPALITY OF SAN MIGUEL v FERNANDEZ () GOVERNMENT v CABANGIS () CHAVEZ v PEA AMARI (2002) ON MOTION FOR RECONSIDERATION (2003) 1. Effect and Significance of Classification of Property as Property of Public Dominion

a. b. c. d.

Property Property Property Property

is outside the commerce of man cannot be the subject of acquisitive prescription cannot be attached or levied upon in execution cannot be burdened with a voluntary easement

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A. Other Classifications
1. By their physical existence a. Corporeal those which are manifest to the senses, which we may touch or take, which exist in space and have a body, whether animate or inanimate b. Incorporeal personal prestations or acts or services productive of utility. They are not manifest to the senses but are conceived only by the understanding. They must combine three requisites: i. External manifested act ii. Personal done by the debtor himself iii.Possible when it can be done both in nature and in law By their autonomy or dependence a. Principal those which other things are considered dependent or subordinated e.g. lands on which a house is built b. Accessory dependent upon or subordinated to the principal e.g. house in the preceding example

2.

3.

By their subsistence after use Art 418 Movable property is either consumable or non-consummable. To the first class belong those movables which cannot be used in a manner appropriate to their nature without being consumed. To the second class belong all the others. a. Consumable whose used according to their nature destroys the substance of the thing or causes their loss to the owner e.g. food b. Non-consumable not consumed by use Differentiated from Fungible or Non-fungible Fungible depends upon possibility (because of their nature or the will of the parties) of being substituted by others of the same kind, not having distinct individuality; those which belong to the common genus which includes several species of the same kind, perfectly permitting substitution of one by the others Non-fungible those which have their own individuality (specifically determined) and do not admit of substitution c. Deteriorable or non-deteriorable 4. By reason of their susceptibility to division a. Divisible can be divided physically or juridically without injury to their nature e.g. piece of land, inheritance b. Indivisible those which cannot be divided without destroying their nature or rendering impossible the fulfillment of the juridical relation of which they are the object e.g. horse By reason of designation a. Generic indicates its homogenous nature, but not the individual e.g. horse, house, dress b. Specific indicates the specie or its nature and the individual e.g. white horse of X or house No. 20 at Y Street

5.

6. By their existence in point of time a. Present exist in actuality, either physical or legal e.g. erected building, not that which is planned b. Future do not exist in actuality, but whose existence can reasonably be expected with more or
less probability e.g. ungathered fruits

7. By reason of contents and constitution


a. Singular i. Simple ii. Compound Universal when several things collectively form a single object in law under one name, which may be in fact e.g. warehouse, herd OR in law e.g. inheritance or dowry

b.

8. By reason of susceptibility to appropriation a. Non-appropriable


b. Appropriable i. Already appropriated ii. Not yet appropriated

PROPERTY Prof. Labitag 9. By reason of susceptibility to commerce


a. b. Within the commerce of man Outside the commerce of man

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II. OWNERSHIP
A. Definition

OWNERSHIP

J. B. L. Reyes: It is independent right of exclusive enjoyment and control of a thing for the purpose of deriving therefrom all the advantages required by the: Reasonable needs of the owner (or holder of the right) and Promotion of the general welfare But subject to the restrictions imposed by: Law Rights of others Scialoja: It is a relation in private law by virtue of which is a thing (or property right) pertaining to one person is completely subjected to his will in everything not prohibited by public law or the concurrence with the rights of another Sir actually prefers this definition

A. Bundle of Rights included in Ownership


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.

Jus Utendi right to use and enjoy the property without destroying its substance Jus Abutendi right to use and enjoy by consuming the thing by its use Jus Fruendi right to receive the fruits Jus Disponendi right to dispose or the power of the owner to alienate, encumber, transform and even destroy the thing owned Jus Vindicandi right to recover a thing

A. Other Specific Rights found in the Civil Code


1. Right to exclude; self-help; Doctrine of Self-help Art 429 see above ELEMENTS OF SELF-HELP Right to enclose or fence Art 430 Every owner may enclose of fence his land or tenements by means of walls, ditches, live or dead hedges, or by any other means without detriment to servitudes consisted thereon. Right to receive just compensation in case of expropriation Art 435 No person shall be deprived of his property except by competent authority and for public use and always upon just compensation. Right to hidden treasure Art 438 Hidden treasure belongs to the owner of the land, buiding 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 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 or 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. 5. Right to space and subsoil Art 437

2.

3.

4.

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6.

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Right to accession Art 440 The ownership of property gives the right by accession to: Everything which is produced thereby (accession discreta) Incorporated or attached thereto, either naturally or artificially (accession continua)

1. Right to recover possession and/or ownership (jus vindicandi)


a. Available actions to Recover Possession/Ownership

i. For immovable property 1) Accion reivindicatoria - recovery of dominion of property as owner; main issue is ownership not merely 2) Accion publiciana - plenary action to recover possession when owner is dispossessed by any other means 3) Forcible entry - used by person deprived of possession through Force, Intimidation, Strategy, Threat or 4) Unlawful detainer - used by lessor/person having legal right over property when lessee/person withholding
property refuses to surrender possession of property after expiration of lease/right to hold property (physical possession, 1 year from the last date of demand to vacate the premises) 5) Writ of possession 6) Writ of injunction HILARIO v SALVADOR (2005) SAMPAYANG v CA (2005) SANTOS v AYON (2005) GANILA v CA (2005) ROSS RICA SALES CENTER v SPS. ONG (2005) PERALTA-LABRADOR v BUARIN (2005) Stealth (FISTS) than the grounds for instituting a forcible entry and unlawful detainer case. possession.

ii.For movable property


1) Replevin b. Requisites for recovery Art 434 In an action to recover, the property must be identified, and the plaintiff must rely on the strength of his title and not on the weakness of the defendants claim.

i. Identify the property SERINA v CABALLERO (2004)

ii.Prove his right of ownership rely on the strength of his evidence not on the weakness
of defendants PEREZ v MENDOZA (1975) DIZON v CA (1993)

A. Limitations of Real Right of Ownership


1. General Limitation a. Police power salus populi suprema est lex Art 436 When any property is condemned or seized by competent authority in the interest of health, safety or security, the owner thereof shall not be entitled to compensation, UNLESS he can show that such condemnation or seizure is unjustified. b. Taxation c. Eminent domain Art 435 Specific Limitation a. Legal servitudes b. Limitations imposed by party transmitting the property i. By contract or last will or donation ii. Stipulation on inalienability

2.

PROPERTY Prof. Labitag 1. Limitation from scattered provisions of CC

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Art 431 The owner of a thing cannot make use thereof in such manner as to injure the rights of a third person. Sis utere tuo ut alienum no laedas 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 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 Act in state of necessity Art 2191 Proprietors shall also be responsible for damages caused: (1) By the explosion of machinery which has not been taken care of with due diligence, and the inflammation of explosive substances which have not been kept in a safe and adequate place (2) By excessive smoke, which may be harmful to persons or property (3) By the falling of trees situated at or near highways or lanes, if not caused by force majeure (4) By emanations from tubes, canals, sewers or deposits of infectious matter, constructed without precautions suitable to the place Art 670 Distances for windows, apertures, balconies or other similar projection which afford direct and oblique views Art 677 Constructions near fortified places or fortresses Art 678 Building of aqueduct, well, sewer, furnace, chimney, stable, depository of corrosive substances, machinery or factory Art 679 Planting of trees near a tenement Art 649 Easement of right of way Art 652 Acquisition of piece of land without right of way Art 637 Receipt of lower estates of waters which naturally descend from higher estates Art 676 Easement of drainage Art 644 Limitations on the imposition of easement of aqueduct Art 684-687 Lateral and subjacent support US v CAUSBY ( ) LUNOD v MENESES ( )

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III. RIGHTS OF ACCESSION


A. Concept Art 440 The ownership of property gives the right by accession to everything which is produced thereby, or which is incorporated or attached thereto, either naturally or artificially. DEFINITIONS OF ACCESSION Tolentino: Right by virtue of which the owner of a thing becomes the owner of everything that the thing may produce or which may be inseparably united or incorporated thereto, either naturally or principally. J. B. L. Reyes: Extension of ownership over a thing to whatever is incorporated thereto naturally or artificially (without or with labor of man) Incorporation means a stable union or adherence, not mere juxtaposition Accession is one of the bundle of rights of ownership and is not a mode of acquiring property It does not depend upon a new title A. General Principles of Accession 1. Applicable to BOTH accession discreta and accession continua

a. Accessory follows the principal (Accessor siquitur principale)


b. No one shall be unjustly enriched at the expense of another

1. Applicable to ACCESSION CONTINUA alone a. Whatever is built, planted or sown on the land of another and the improvements or b. c.
d. repairs made thereon, belongs to the owner of the land, subject to the provisions of the following articles. Art 445 All works, sowing and planting are presumed made by owner and at his expense, unless the contrary is proved. Art 446 Accessory is incorporated to principal only when cannot be separated without injury to the work constructed or destruction to plantings, construction or works. 2nd phrase, Art 447 Bad faith involves liability for damages and other dire consequences. Bad faith of one party neutralizes bad faith of the other. Art 453

e.

1. Applicable to ACCESSION DISCRETA alone a. Ownership of fruits To owner of principal thing belongs the NATURAL, INDUSTRIAL and CIVIL
fruits Art 441 EXCEPTIONS: i. Possession in good faith ii. In usufruct iii.In lease (although civil fruits go to the owner) iv.In antichresis

A. Obligations of Receiver of Fruits to Pay Expenses by 3


preservation

rd

person in production, gathering and

Art 443 He who receives the fruit has the obligation to pay the expenses made by a third person in their production, gathering and preservation. BASIS: no one may unjustly enrich himself at the expense of another Characteristics of expenses covered: Dedicated to the annual production and not for the improvement of the property They must not be unnecessary, excessive or for pure luxury, but must be of such an amount naturally required by the condition of the work cultivation made

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Even if expenses exceed the value of fruits, owner must pay expenses just the same, because the law makes no distinction. He who is entitled to the benefits must bear the rishk and losses. WHAT MAY JUSTIFY NON-PAYMENT OF FRUITS: Owner may permit possessor to complete the harvesting of fruits Fruits not yet gathered and possessor is in bad faith: owner need not pay (Art 449) Fruits already gathered: owner has to pay, accession continua does not apply because fruits have already been separated from the immovable. This provision makes no distinction as to good faith and baith faith.

A. Kinds of Accession

1.

Accession Discreta (Fruits)

Art 440 The ownership of property gives the right by accession to: everything which is produced (accession discreta) incorporated or attached thereto, either naturally or artificially (accession continua)

a. Natural products of the soil in whose generation human labor does not intervene b. Industrial if it implies some kind of cultivation or labor c. Civil rents of lands and buildings, and certain kinds of incomes obtained from the land or building itself
BACHRACH v SEIFERT ( ) BACHRACH v TALISAY ( ) 1. Accession Continua Over Immovables 1. Artificial or Industrial Building, Planting, Sowing

a. Owner is BPS using material of another (LO-BPS and OM)

Art 447 The LO who makes thereon, personally or through another, plantings constructions, or works with the materials of another, shall pay their value and if he acted in bad faith, he shall also be obliged to the reparation of the damages. The OM shall have the right to remove them only in case he can do so without injury to the work constructed, or without the plantings, constructions or work being destroyed. However, if the LO acted in bad faith, the OM may remove them in any event, with a right to be indemnified for damages.


Art Art Art Art Art Art Art

LO in good faith Acquire BPS by paying the value of materials LO in bad faith

a. BPS builds, plants or sows on anothers land using his own material (LO and BPS-MM)
448 449 450 451 452 453 454 The The The The The The The

BPS in good faith Art 448 The BPS in bad faith Art 449 The Art 450 The Art 451 The Options open to owner of the land

i.

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1) To acquire BP

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building, planting and sowing has right of retention Retains possession without paying rental Not entitled to fruits; his rights are the same as an antichretic creditor

1) To sell land to BP OR to lease land to S BP may refuse if value of land considerably more than BP; then forced lease by LO and BP BPS in bad faith i. Rights of BPS in bad faith Art 452 The Art 443 The Landowner in bad faith but BPS in good faith Art 454 Art 447 Reason for adverting to rule in Art 447

a. BPS builds, plants or sows on anothers land with materials owned by 3rd persons
Art 455 The N.B.: Good faith does not exclude negligence Art 456 The BERNARDO v BATACLAN ( ) IGNACIO v HILARIO ( ) SARMIENTO v AGANA ( ) DEPRA v DUMLAO ( ) TECHNOGAS PHIL v CA ( ) ORTIZ v KAYANAN ( ) GEMINIANO v CA ( ) PLEASANTVILLE DEVT CORP v CA ( ) FELICES v IRIOLA ( ) SPOUSES NUGUID v CA (1993) SPOUSES NUGUID v CA (2005) 1. Natural (Accession Continua Natural) a. Alluvium Art 457 To the owners of lands adjoining the banks of rivers belong the accretion which they gradually receive from the effects of the current of the waters. REQUISITES FOR LAND ACCRETION TO TAKE PLACE FOR THE BENEFIT OF THE RIPARIAN OWNER (1) Deposit be gradual and imperceptible - exclusive work of nature (2) Made through the effects of the current of the water (3) The land where accretion takes place is adjacent to the banks of the river Banks of a river lateral strips or zones of its bend which are washed by the stream only during such high floods as do not cause inundations or to the point reached by the river at high tide When is alluvion formed? When the deposit of sediment has reached a level higher than the highest level of water during the year. Alluvion belongs to riparian owner from the time that the deposit created by the current of the water becomes manifest REPUBLIC v CA ( ) GRANDE v CA ( ) MENESES ( ) a. Avulsion

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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 ownership of it, provided that he removes the same within 2 years. NAVARRO ( ) b. Change of Course of River Art 461 The Art 462 The Art 463 The

BAES v CA ( ) BINALAY v MANALO c. Formation of Islands Art 461 The Art 462 The Art 463 The Art 464 The Art 465 The See PD 1067 1. Reverse Accession Art 120, FC The Art 321, CC The Over Movables 1. Conjunction and Adjunction

a. Inclusion or Engraftment b. Soldadura or Soldering


i. ii. Plumbatura different metals Ferruminatio same metal

a. Tejido or Weaving b. Escritura or Writing c. Pintura or Painting


1. Commixtion and Confusion SIARI VALLEY ESTATES v LUCASAN (1955) SANTOS v BERNABE () 2. Specification

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IV. QUIETING OF TITLE


A. Differences between Action to Quiet Title and Action:
Action to Quiet Title Substantially an action for the purpose of putting an end to vexatious litigation in respect to the property involved Plaintiff asserts his own estate and declares generally that defendant claims some estate in the land, without defining it and avers that the claim is without foundation and calls on the defendant to set forth the nature of his claim so that it may be determined by decree Action to Quiet Title Action to Remove a Cloud Procure the cancellation, delivery of, release of an instrument, encumbrance or claim constituting a claim on the plaintiffs title and which may be used to injure or vex him in the enjoyment of his title Plaintiff not only declares his own title but also avers the source and nature of the defendants claim, points out its defect, and prays that it be declared void

Action to Prevent a Cloud Relief is granted if the threatened or anticipated cloud is one which if it existed, would be removed by suit to quit title

Cloud on a title an outstanding instrument, record, claim, incumbrance or proceeding which is actually invalid or inoperative, but which may nevertheless impair or affect injuriously the title to the property. It must have a prima facie appearance of validity or legal efficacy. Cloud on a title must have a semblance of validity which appears in some legal form but which is in fact unfounded. Invalidity or inoperativeness must be proven by an extrinsic evidence.

A. Prescription of Action to Quiet Title


If plaintiff is in possession: imprescriptible If plaintiff is not in possession: prescribes within period of filing accion publiciana, accion reivindicatoria

OLVIGA v CA (1993) PINGOL v CA (1993) A. Who are Entitled to Bring Action? Rule 64, Sec. 1, Par 2, Rules of Court The B. Notes 1. There is a cloud on title to real property or any interest to real property. Art 476 Whenever there is a cloud on title to real property OR any interest therein, by reason of any instrument, record, claim, encumbrance, or proceeding which is apparently valid or effective but is in truth and in fact invalid, ineffective, voidable or unenforceable, and may be prejudicial to said title, an action may be brought to remove such cloud or to quiet the title. An action may also be brought to prevent a cloud from being cast upon title to real property or any interest therein. Plaintiff has legal or equitable title to or interest in the subject/real property. Instrument record claim, etc must be valid and binding on its face, but in truth and in fact, invalid, ineffective, voidable or unenforceable.

2. 3.

PROPERTY Prof. Labitag


4. Plaintiff must return benefits received from defendant.

Page 17 of 50

TITONG v CA (1998)

5. Actions to quiet title are proceedings quasi in rem.


SPS. PORTIC v CRISTOBAL (2005)

PROPERTY Prof. Labitag

Page 18 of 50

V. CO-OWNERSHIP
A. Definition

CO-OWNERSHIP
The right of common dominion which two or more persons have a spiritual part (or ideal portion) or a thing which is not physically divided.

A. Characteristics of co-ownership
1. 2. 3. 4. There is plurality of owners, but only one real right of ownership. The recognition of ideal shares, defined but not physically identified. Each co-owner has absolute control over his ideal share. Mutual respect among co-owners in regard to use and enjoyment and preservation of thing as a whole.

PARDELL v BARTOLOME ( ) A. Differences between Co-ownership and Joint Tenancy Co-ownership Joint Tenancy

B. Differences between Co-ownership and Partnership


Co-ownership Partnership

GATCHALIAN v COLLECTOR ( )

C. Source of Co-ownership
1. Law i. Cohabitation Art 147, FC Art 148, FC Art 90 Purchase Art 1452

ii.

iii. Succession Intestate: Art 1452 Testate: Property is given to 2 or more heirs i. Donation Art 753 Art 573, 2nd Par Chance Art 472

ii.

SIARI VALLEY ESTATE v LUCASAN () iii. Hidden treasure

PROPERTY Prof. Labitag


Art 348 iv. Easement of party wall Art 658 v. Occupation

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PUNZALAN v BOON LIAT ( ) vi. Condominium Law Sec 6 (c), RA 4726 1. Contracts a. b. By agreement Duration of co-ownership: Art 494 Universal partnership Art 1778 Art 1779 Art 1780 Associations and societies with secret articles Art 1775

c.

A. Rights of each co-owner as to the thing owned in common


1. To use the thing according to the purpose intended may be altered by agreement, express or implied, provided: a. It is without injury or prejudice to interest of co-ownership and; b. Without preventing the use of other co-owners Art 486

PARDELL v BARTOLOME ( ) 2. To share in the benefits in proportion to his interest, provided the charges are borne by each in the same proportion Art 485 1. Contrary stipulation is void Presumption is that portions are equal unless contrary is proved

Each co-owner may bring an action in ejectment Art 487

RESUENA v CA (2005) ACABAL v ACABAL (2005)

2. To compel other co-owner to contribute:


a. to expenses for preservation of the thing or right owned in common b. to payment of taxes Art 488

1.

Co-owners option not to contribute by waiving his undivided interest equal to amount of contribution dacion en pago Exception: if waiver is prejudicial to co-ownership Requisites before repairs for preservation may be made or expenses for embellishment or improvement may be made Art 489 Effects of failure to notify co-owners

To oppose any act of alteration Remedy of other co-owners re acts of alteration

PROPERTY Prof. Labitag


Art 491 ACTS OF ALTERATION a.

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Concept Any change injurious to the thing owned in common or to the rights of other co-owners or Any change material to the use, destination or state of thing which act is in violation of the express or tacit agreement of the co-owners Distinguished from acts of administration Art 492 Acts of Alteration Acts of Administration

a.

b.

Effect of acts of alteration and remedies of non-consenting co-owner

QUERY: Is lease of real property owned in common an act of alteration? Art 647 in relation to Art 1878 (8) 2. To protect against acts of majority which are prejudicial to minority Art 492, 3rd Par

LAVADIA v COSME () MELENCIO v DY TIAO LAY () TUASON v TUASON () 3. To exercise legal redemption Art 1620 Art 1623

MARIANO v CA () VERDAD v CA () 4. To ask for partition Art 494

RAMIREZ v RAMIREZ () AGUILAR v CA (1993) VDA DE APE v CA (2005) 5. Other cases where legal right of redemption is given Art 1621 Art 1622

HALILI v CA (1998) FRANCISCO v BOISER (2000) A. Implications of co-owners right over his ideal share 1. Co-owner has the right: a. b. c. d. 1. To share in fruits and benefits To alienate, mortgage or encumber and dispose of his ideal share BUT: Other co-owners may exercise right of legal redemption To substitute another person in the enjoyment of thing To renounce part of his interest to reimburse necessary expenses incurred by another owner Art 488

Effect of transaction by each co-owner a. Limited to his share in the partition

PROPERTY Prof. Labitag


b. c.

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Transferee does not acquire any specific portion of whole property until partition Creditors of co-owners may intervene in partition or attack the same if prejudicial Art 499 EXCEPT that creditors cannot ask for rescission even if not notified in the absence of fraud Art 497

CARVAJAL v CA () PAMPLONA v MORETO () CASTRO v ATIENZA () ESTOQUE v PAJIMULA () DIVERSIFIED CREDIT v ROSADO () PNB v CA () A. Rules on co-ownership not applicable to conjugal partnership of gains or absolute community of property B. Special rules on co-ownership of different stories of a house as differentiated from provisions of Condominium Law (Act No. 4726) 1. 2. 3. Concept of Condominium Essential requisites for Condominium Rights and obligations of Condominium owner

SUNSENT VIEW CONDOMINIUM v JUDGE CAMPOS (1981)

A. Extinguishment of co-ownership
1. 2. 3. Total destruction of thing Merger of all interests in one person Acquisitive prescription a. b. By a third person By one co-owner as against the other co-owners REQUISITES - Unequivocal acts of: i. Unequivocal acts of repudiation of co-ownership (acts amounting to ouster of other coowners) known to other co-owners and shown by clear and convincing evidence ii. Open and adverse possession, not mere silent possession for the required period of extraordinary acquisitive prescription iii. The presumption is that possession by co-owner is not adverse

CAPITLE v DE GABAN (2004) 1. Partition or division

a. Right to ask for partition at any time, EXCEPT:


i. ii. When there is a stipulation against it (should not be over 10 years) Art When condition of indivision is imposed by transferor (donor or testator) not exceeding 20 years Art 494

iii. When the legal nature of community prevents partition (party wall) Art iv. When partition is generally prohibited by law E.g. absolute community of property

PROPERTY Prof. Labitag


v.

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When partition would render the thing unserviceable (but the thing may be sold and co-owners divide the proceeds) Art 494 Action for partition will fail if acquisitive prescription has set in

a.

Effect of partition Art 1091 Art 543 Art 1092 Art 1093 Art 499 Art 500 Art 501 Right of creditors of individual co-owners Art 497 Procedure for partition Rule 69, Rules of Court

b. c.

PROPERTY Prof. Labitag

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VI. POSSESSION
A. Definition and Concept

POSSESSION

Is the holding of a thing OR the enjoyment of a right, whether by material occupation or by the fact that the thing or the right is subjected to the action of our will It is a real right independent of and apart from ownership i.e. the right of possession (jus possessionis) as distinguished from the right to possess (jus possidendi)

A. Essential Requisites of Possession

1. Holding or control of a thing or right (corpus) consists of either


a. b. c. The material or physical holding or occupation either Exercise of a right Constructive possession (intention to possess is very crucial)

RAMOS v DIRECTOR OF LANDS ( ) DIRECTOR v CA ( )

1. Intention to possess (animus possidendi)

A. Degrees of Holding of Possession


1. 2. Mere holding or possession without title whatsoever and in violation of the right of the owner E.g. possession of a thief/robber or a usurper of land Possession with a juridical title, but not that of ownership E.g. possession of tenant, depository agent, bailee, trustee, lessee, antichretic creditor. This degree of possession will never ripen into full ownership as long as there is no repudiation of concept under which property is held. Possession with a just title or title sufficient to transfer ownership, but not from the true owner E.g. possession of a vendee from vendor who pretends to be the owner This degree of possession ripens into full ownership by lapse of time. Possession with a just title from the true owner The delivery of possession transfers ownership, and strictly speaking, is the jus possidendi.

1.

1.

A. Cases of Possession
1. Possession for oneself or possession exercised in ones own name and possession in the name of
another Art 524

2. Possession in the concept of an owner and possession in the concept of a mere holder with the
ownership belonging to another Art 525

3. Possession in good faith and possession in bad faith


Art 526 PLEASANTVILLE DEVT CORP v CA ( ) a. Mistake upon a doubtful or difficult question of law as a basis of good faith

KASILAG v ROQUE (1939)

PROPERTY Prof. Labitag


A. What things or rights may be possessed

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Art 530 Only things or rights susceptible of appropriation may be the object of possession B. What may not be possessed by private persons 1. 2. 3. Res Communes Property of public dominion Right under discontinuous and/or non-apparent easement

A. Acquisition of Possession
1. Ways of acquiring possession Art 531 a. b. Material occupation of the thing

1) 1)

Subject to the action of our will i. Doctrine of constructive possession ii. Includes constructive delivery Traditio brevi manu thing is already in transferees hands E.g. under a contract of lease, then delivered under a sale Traditio constitutum possessorium thing remains in transferors hands E.g. sale, then retained under a commodatum a. Proper acts and legal formalities Refers to the acquisition of possession by: Sufficient title Inter vivos Mortis causa Lucrative or onerous Includes traditio longa manu and tradition simbolica, donations, succession (testate or intestate), contracts, judicial writs of possession, writ of execution of judgments, execution and registration of public instruments

BANCO ESPANOL FILIPINO v PETERSON ( ) 1. By whom possession be acquired Art 532 a. By same person ELEMENTS OF PERSONAL ACQUISITION 1. Capacity to acquire possession 2. Intention to possess 3. Possibility of acquiring possession By his legal representatives REQUISITES By his agent

a. b.

c. By any person without any power whatsoever but subject to ratification, without prejudice to the
proper case of negotiorum gestio Art 2144 Art 4129 Art 2150 d. 1. Qualifiedly, minors and incapacitated persons Art 535

What do not affect possession

PROPERTY Prof. Labitag


Art 537 Art 1119 a. Acts merely tolerated Art 537

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MACASAET v MACASAET (2004) b. c. Acts executed clandestinely and without the knowledge of the possessor Art 537 Acts by violence as long as possessor objects thereto (i.e. he files a case) Art 536

CUAYCONG v BENEDICTO () ASTUDILLO v PHHC () PERAN v CFI () 1. Rule to solve conflict of possession Art 538

GENERAL RULE: Possession cannot be recognized in two different personalities. EXCEPTION: In cases of co-possession by co-possessors without conflicting claims or interest In case of conflicting possession, preference is given to: a. Present possessor or actual possessor b. If there are 2 or more possessors, the one longer in possession c. If dates of possession are the same, the one who presents a title d. If all conditions are equal, the thing shall be placed in judicial deposit pending determination of possession or ownership through proper proceedings A. Effects of Possession

1. In general, every possessor has a right to be respected in his possession; if disturbed therein,
possessor has right to be protected in or restored to said possession Art 539 a. Actions to recover possession

i.

Accion interdictal or Summary proceedings forcible entry and unlawful detainer Plaintiff may ask for writ of preliminary mandatory injunction Within 10 days from the filing of complaint in forcible entry Art 539

YU v HONRADO ( )

i.

Accion publiciana based on superior right of possession, not ownership

ii. Accion reivindicatoria recovery of ownership, including the right to possess


iii. Action for replevin possession or ownership for movable property a. Lawful possessor can employ self-help Art 429

1. Entitlement to fruits possessor in good faith/bad faith


Art 544 Art 549

2. Reimbursement for expenses possessor in good faith/bad faith

Liability for loss or deterioration of property by possessor in bad faith Art 553

PROPERTY Prof. Labitag


Art 552

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1. Possession of movable acquired in good faith (in concept of owner) is equivalent to title
Art 559 Possessor has actual title which is defeasible only by true owner One who has lost a movable or has been unlawfully deprived thereof may recover it but without reimbursement EXCEPT: If possessor acquired it at a public sale A. Effect of possession in the concept of an owner 1. 2. Possession may by lapse of time ripen into full ownership, subject to certain exceptions. Presumption of just title and cannot be obliged to show or prove it Art 541 EXCEPTION: Art 1131

3. Possessor may bring all actions necessary to protect his possession except accion reivindicatoria 4. May employ self-help under Art 429
5. 6. 7. 8. 9. Possessor may ask for inscription of such real right of possession in the Registry of Property Has rights to fruits and reimbursements for expenses (assuming he is a possessor in good faith) Upon recovery of possession which he has been unlawfully deprived, may demand fruits and damages Generally, he can do on the things possessed everything that the law authorizes the owner to do until he is ousted by the one who has a better right Possession in good faith and possession in bad faith Art 528 Mistake upon a doubtful or difficult question of law as a basis of good faith Art 526, Par 3

A. Presumptions in favor of the possessor

1. Of good faith until the contrary is proved


Art 528

2. Of continuity of initial good faith in which possession was commenced or possession in good faith does
not lose his character except in the case and from the moment possessor became aware or is not unaware of improper or wrongful possession Art 528 CORDERO v CABRAL ( )

3. Of enjoyment of possession in the same character in which possession was acquired until contrary is
proved Art 529

4. Of non-interruption of possession in favor of present possessor who proves possession at a previous


time until the contrary is proved Art 554 Art 1120 Art 1121 Art 1122 Art 1123 Art 1124

5. Of continuous possession or non-interruption of possession of which he was wrongfully deprived for all
purposes favorable to him

PROPERTY Prof. Labitag


Art 561 6. Other presumptions with respect to specific properties of property rights

Page 27 of 50

a. Of extension of possession of real property to all movables contained therein so long as it is


not shown that they should be excluded Art 426

b. Non-interruption of possession of hereditary property


Art 533 Art 1078

c. Of just title in favor of possessor in concept of owner


Art 541 cf. Art 1141 A. Possession may be lost by 1. 2. 3. 4. Abandonment Assignment, either onerous or gratuitous Destruction or total loss of thing or it goes out of commerce Possession by another; if possession has lasted longer than one year; real right of possession not lost until after 10 years Subject to Art 537 (on acts merely tolerated, etc)

PROPERTY Prof. Labitag


A.

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VII. USUFRUCT
A. Concept Art 562

USUFRUCT
Is a real right, temporary in character that authorizes the holder to enjoy all the advantages derived from a normal exploitation of anothers property, according to its destination or purpose, and imposes an obligation of restoring at the time specified, either the thing itself or its equivalent.

A. Historical Considerations
B. Characteristics of Usufruct

C. Usufruct Distinguished from Lease; from Servitude


Usufruct Lease

Usufruct

Servitude

D. Classes of Usufruct
1. By origin a. b. c. 1. Voluntary Legal Art 321 Art 226, FC Mixed

By person enjoying the right of usufruct a. b. Simple Multiple i. Simultaneous ii. Succession Limitation on successive usufruct Art 756 Art 863 Art 869

1.

By object of usufruct a. b. Rights Art 574 Things i. Normal ii. Abnormal, irregular or quasi-usufruct

1.

By the extent of usufruct

PROPERTY Prof. Labitag


a. As to the fruits i. Total ii. Partial Art 598 b. As to object i. Singular ii. Universal Art 595 Subject to provisions of: Art 758 Art 759 1. By the terms of the usufruct Art 564 a. b. c. Pure Conditional With a term (period)

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A. Rights of Usufructuary
1. As to the thing and its fruit

a. Right to possess and enjoy the thing itself, its fruits and accessions Fruits consist of natural, industrial and civil fruits
As to hidden treasure, usufructuary is considered a stranger Art 566 Art 436 Fruits pending at the beginning of usufruct Art 567 Civil fruits Art 569 Art 588

a. Right to lease the thing


Art 572 Limitations Liability of usufructuary Art 590 Exceptions to right of leasing the thing

FABIE v DAVID ()

a. Right to improve the thing


Art 579 1. As to the legal right of usufruct itself

a. Right to mortgage
Right of usufruct Art 572

b. Right to alienate the usufruct


EXCEPT: In purely personal usufructs When title constituting it prohibits the same A. Rights of Naked Owner 1. At the beginning, during, and termination of usufruct

PROPERTY Prof. Labitag


(See obligations of usufructuary at the beginning of the usufruct) 2. During the usufruct a. Retains title to the thing or property b. He may alienate the property Limitations: Art 581

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A. Obligations of Usufructuary 1. At the beginning of usufruct or before exercising the usufruct a. To make inventory Art 583

i.

REQUISITES OF INVENTORY 1) Immovables described 2) Movables appraised EXCEPTION TO REQUIREMENT OF INVENTORY 1) No one will be injured thereby Art 585 2) Title constituting usufruct excused the making of inventory 3) Title constituting usufruct already makes an inventory

ii.

a.

To give a bond for the faithful performance of duties as usufructuary i. No bond are required in the following: 1) No prejudice would result Art 585 2) Usufruct is reserved by donor Art 584 3) Title constituting usufruct excused usufructuary 4) If usufructuary takes possession under a caucion juratoria Effect of filing a bond Art 588

ii.

iii. Effect of failure to give bond Art 586 Art 599 1. During the usufruct a. To take care of the thing like a good father of a family Art 589 Effect of failure to comply with obligation Art 610 b. To undertake ordinary repairs Art 592 ORDINARY REPAIRS To notify owner of need to undertake extra-ordinary repairs Art 593 EXTRA-ORDINARY REPAIRS 1) Concept of extraordinary repairs 2) Naked owner obliged to undertake them but when made by owner, usufructuary pays legal interest on the amount while usufruct lasts Art 594, 1st Par 3) Naked owner cannot be compelled to undertake extraordinary repairs If indispensable and owner fails to undertake extraordinary repairs, it may be made by usufructuary;

c.

PROPERTY Prof. Labitag


Repairs usufructuary rights Art 594, 2nd Par

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a. To pay for annual charges and taxes on the fruits


BD. OF ASSESSMENT APPEALS OF ZAMBOANGA DEL SUR v SAMAR MINING COMPANY INC () b. c. d. 2. To notify owner of any act detrimental to ownership Art 601 To shoulder the costs of litigation re usufruct Art 602 To answer for fault or negligence of alienee, lessee or agent of usufructuary Art 590

At the time of termination of the usufruct a. To deliver the thing in usufruct to the owner in the condition in which he has received it, after undertaking ordinary repairs EXCEPTION: abnormal usufruct

A. Special Cases of Usufruct 1. 2. 3. 4. Usufruct over a pension or periodical income Art 570 Usufruct of property owned in common Art 582 Usufruct of head of cattle Art 591 Usufruct over vineyards and woodlands Art 575 Art 576 Usufruct on a right of action Art 578 Usufruct on mortgaged property Art 600 Usufruct over an entire patrimony Art 598 Liability of usufructuary for debts Usufruct over deteriorable property Art 578 Usufruct over consumable property (or quasi-usufruct) Art 574

5. 6. 7.

8. 9.

B. Extinguishment of Usufruct Art 603 1. 2. Death of usufructuary EXCEPTION: unless a contrary intention clearly appeals Expiration of period or fulfillment of resolutory condition imposed on usufruct by person constituting the usufruct

PROPERTY Prof. Labitag

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Time may elapse before a third person attains a certain age, even if the latter dies before period expires unless granted only in consideration of his existence Art 606

BALURAN v NAVARRO () NHA v CA () BULACAN GARDEN CORP v MANILA SEEDLING BANK () 1. 2. Merger of rights of usufruct and naked ownership in one person Renunciation of usufruct a. Limitations b. Must be express c. If made in fraud of creditors, waiver may be rescinded by them through action under Art 1381 Extinction or loss of property a. If destroyed property is insured before the termination of the usufruct Art 608

1.

1. When insurance premium paid by owner and usufructuary

Art 608, 1st Par i. If owner rebuilds, usufruct subsists on new building ii. If owner does not rebuild, interest upon insurance proceeds paid to usufructuary

1. When the insurance taken by owner only because usufructuary refuses

Art 608, 2nd Par i. Owner entitled to insurance money (no interest paid to usufructuary) ii. If he does not rebuild, usufruct continues over remaining land and/or owner may pay interest on value of both Art 607 iii. If owner rebuilds, usufruct does not continue on new building, but owner must pay interest on value on land and old materials

1. When insurance taken by usufructuary only depends on value of usufructuarys insurable


interest (not provided for in the Civil Code) i. Insurance proceeds to usufructuary ii. No obligation to rebuild iii. Usufruct continues on the land iv. Owner does not share in insurance proceeds a. If destroyed property is not insured Art 607 1. If building forms part of an immovable under usufruct i. If owner does not rebuild, usufruct continues over the land and materials ii. If owner rebuilds, usufructuary must allow owner to occupy the land and to make use of materials, but value of both land and materials (____???)

1. 2.

Termination of right of person constituting the usufruct Prescription Cases covered: a. If third party acquires ownership of thing or property in usufruct b. Right of ownership lost through prescription c. Right of usufruct not began within prescriptive period d. If there is a tacit abandonment or non-user of thing held in usufruct for required period

1.

What do not cause extinguishment of usufruct a. Expropriation of thing in usufruct Art 609

PROPERTY Prof. Labitag


b. Bad use of thing in usufruct Art 810 Owners right Usufruct over a building Art 607 Art 608

Page 33 of 50

c.

PROPERTY Prof. Labitag


A.

Page 34 of 50

VIII. EASEMENTS OR SERVITUDES


A. Definition
EASEMENT or REAL SERVITUDES

Is a real right which burdens a thing with a prestation consisting of determinate servitudes for the exclusive enjoyment of a person who is not its owner or of a tenement belonging to another, Is the real right over an immovable by nature i.e. land and buildings, by virtue of which the owner of the same has to abstain from doing or to allow somebody else to do something in his property for the benefit of another thing or person.

A. Essential feature of easements/real servitudes/praedial servitudes

1. It is a real right, i.e. it gives an action in rem or real action against any possessor of servient estate. 2. It is a right enjoyed over another property (jus in re aliena or a right in the property of another) i.e. it
cannot exist in ones own property (nemini nulli res sua servit or no one can have servitude on a property of his own). It is a right constituted over an immovable by nature (land and buildings), not over immovables.

3.

4. It limits the servient owners right of ownership for the benefit of the dominant estate Right of limited
use, but no right to possess servient estate. Being an abnormal limitation of ownership, it cannot be presumed. It creates a relation between tenements.

5.

6. It cannot consists in requiring the owner of the servient estate to do an act (servitus in faciendo consistere
nequit or servitudes may not impose positive acts) unless the act is accessory to a praedial servitude (obligation propter rem)

7. Generally, it may consist in the owner of the dominant estate demanding that the owner of the servient

estate refrain from doing something (servitus in non faciendo), or that the latter permit that something be done over the servient property (servitus in patendo), but not in the right to demand that the owner of the servient estate to do something (servitus in faciendo) EXCEPT if such act is an accessory obligation to a praedial servitude (obligation propter rem)

CHARACTERISTICS OF EASEMENTS (Nos. 8-11) 8. 9. It is inherent or inseparable from estate to which they actively or passively belong. Art 617 It is intransmissible, i.e. it cannot be alienated separately from the tenement affected, or benefited.

10. It is indivisible. Art 616 11. It has permanence, i.e. once it attaches, whether used or not, it continues and may be used anytime. A. Classification of Servitudes 1. As to recipient of benefits a. b. Real or Praedial Personal N.B.: Under Roman Law, usufruct together with usus habitatio, and operae servorum were classified as personal servitude] Art 614

PROPERTY Prof. Labitag


1. As to course or origin a. b. 1. Legal, whether for public use or for the interest of private persons Art 634 Voluntary

Page 35 of 50

As to its exercise Art 615 a. b. Continuous Discontinuous

1.

As indication of its existence Art 615 a. b. Apparent Non-apparent

1.

By the object or obligation imposed Art 616 a. b. Positive Negative Prescription starts to run from service of notarial prohibition

A. General rules relating to servitudes

1. 2. 3. 4.
5.

No one can have a servitude over his own property (nulli res sua servit) A servitude cannot consist in doing (servitus in faciendo consistere nequit) There cannot be a servitude over another servitude (servitus servitudes esse non potest) A servitude must be exercised civiliter, i.e. in a way least burdensome to the owner of the land. A servitude must have a perpetual cause.

A. Modes of acquiring easements NORTH NEGROS v HIDALGO () 1. By title Juridical act which give rise to the servitude e.g. law, donations, contracts or wills

DUMANGAS v BISHOP OF JARO () a. If easement has been acquired but no proof of existence of easement available, and easement is one that cannot be acquired by prescription, then i. May be cured by deed of recognition by owner of servient estate ii. By final judgment iii. Existence of an apparent sign considered a title Art 624

AMOR v FLORENTINO () 1. By prescription

RONQUILLO v ROCO () A. Rights and obligations of owners of dominant and servient estates Dominant Estate 1. Right of owner of dominant estate a. To use the easement Art 626

PROPERTY Prof. Labitag

Page 36 of 50

b. c.

To exercise all rights necessary for the use of the easement Art 625 To do, at his expense, all necessary works for the use and preservation of the easement Art 627 In a right of way, to ask for change in width of easement sufficient for needs of dominant estate Art 651

DE LUNA v ENCARNACION () 1. Obligations of the owner of dominant estate a. b. c. To use the easement for benefit of immovable and in the manner originally established Art 626 To notify owner of servient estate before making repairs and to make repairs in a manner least inconvenient to servient estate Art 627 Not to alter easement or render it more burdensome Art 627

VALDERRAMA v NORTH NEGROS ()

d. To contribute to expenses of works necessary for use and preservation of servitude, if there are
several dominant estates, unless he renounces his interest Art 628 Servient Estate 1. Rights of owner of servient estate a. b. 1. To retain ownership and use of his property Art 630 To change the place and manner of use the easement Art 629, 2nd Par

Obligations of the servient estate a. b. Not to impair the use of the easement Art 628, 1st Par To contribute proportionately to expenses if he uses the easement Art 628, 2nd Par

A. Modes of extinguishment of easements


Art 631 Easements are extinguished by:

1. Merger in the same person of the ownership of the dominant and servient estates
Must be absolute, perfect and definite, not merely temporary

1. Non-user for 10 years


a. Computation of the period i. Discontinuous easements counted from the day they ceased to be used ii. Continuous easements counted from the day an act adverse to the exercise took place The use by a co-owner of the dominant estate bars prescription with respect to the others Art 633 Servitudes not yet exercised cannot be extinguished by non-use

a. b. 1. 2. 3.

Extinguishment by impossibility of use Expiration of the term or fulfillment of resolutory condition Renunciation of the owner of dominant estate

PROPERTY Prof. Labitag


1. Must be specific, clear, express (distinguished from non-user)

Page 37 of 50

Redemption agreed upon between the owners

2. Other causes not mentioned in Art 631 a. Annulment or rescission of the title constituting the easement
b. c. d. Termination of the right of grantor Abandonment of the servient estate Eminent domain Special cause for extinction of legal easement of rights of way; if right of way no longer necessary

e.

A. Legal Easements 1. Law governing legal easements a. For public easements i. Special laws and regulations relating thereto 1) PD 1067 Water Code 2) PD 705 Forestry Reform Code i. Provisions of Chapter 2, Title VII, Book II of CC (Legal Easements) For private legal easements i. By agreement of the interested parties whenever the law does not prohibit it and no injury is suffered by a 3rd person ii. By the provisions of Chapter 2, Title VII, Book II of CC (Legal Easements)

a.

1.

Private legal easements provided for by the New Civil Code a) Those established for the use of water or easements relating to waters 1) Natural drainage of waters Art 637

ONGSIAKO v ONGSIAKO () 2) Easements on lands along riverbanks Art 638 See Water Code 3) Abutment of a dam Art 639 4) Aqueduct Art Art Art Art Art 642 643 644 645 646 5) Drawing waters and watering animals Art 640 Art 641 6) Stop lock or sluice gate Art 649 b) The easement of right of way Art Art Art Art Art 649 650 651 652 653

PROPERTY Prof. Labitag


Art Art Art Art 654 655 656 657

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QUIMEN v CA (1996) CHAN v CA () LA VISTA ASSN v CA (1997) VDA. DE BELTAZAr v CA () SPS. DELA CRUZ v RAMISCAL (2005) c) Art Art Art Art Art Art Art Art Art The easement of party wall 658 659 660 661 662 663 664 665 666

d) The easement of light and view Art Art Art Art Art Art Art 667 668 669 670 671 672 673

e) The easement of drainage of buildings Art 674 Art 675 Art 676 f) Art Art Art Art Art The easement of distance for certain constructions 677 678 679 680 681

g) The easement against nuisances Art 682 Art 683 h) The easement of lateral and subjacent supports Art Art Art Art 684 685 686 687

PROPERTY Prof. Labitag

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BOOK III DIFFERENT MODES OF ACQUIRING OWNERSHIP


Mode and Title Differentiated

MODE
The specific cause which produces dominion and other real rights as a result of the co-existence of special status of things, capacity and intention of persons and fulfillment of requisites of law Proximate cause

TITLE
Every juridical right which gives a means to the acquisition of real rights but which in itself is insufficient Remote cause

Modes of Acquiring Ownership ORIGINAL MODES Which produce the acquisition of ownership independent of any pre-existing right of another person, hence, free from any burdens or encumbrances a. b. Occupation Intellectual creation

DERIVATIVE MODES Based on a right previously held by another person and therefore, subject to the same characteristics, powers, burden etc as when held by previous owner Law - e.g. Registration under Act 496 Estoppel of title Art 1434 Marriage under ACP Hidden treasure Accession Art 445 Change in rivers course Art 461 Accession continua over movables Art 466 Art 6681 Art 1456 Art 120 a) b) c) d) Donation Succession Prescription Tradition REQUISITES: (1) Pre-existence of right in estate of grantor (2) Just cause or title for the transmission (3) Intention (of both grantor and grantee) (4) Capacity (to transmit and to acquire) (5) An act giving it outward form, physically, symbolically or legally LEGAL MAXIM: Non nudis pactis, sed traditione, dominia rerum transferentur (Not by mere agreement, but by delivery, is ownership transferred.)

PROPERTY Prof. Labitag


KINDS OF TRADITION a. b. Real tradition Constructive tradition i. Symbolical delivery ii. Delivery of public instrument iii.Traditio longamanu iv.Traditio brevi manu v.Traditio constitutum possessorium vi.Quasi-tradition vii.Tradition by operation of law

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Occupation a. b. c. Not applicable to ownership of a piece of land Art 714 Privilege to hunt and fish regulated by special law Art 715 Occupation of a swarm of bees or domesticated animals Art 716 Art 560 Pigeons and fish Art 717 Hidden treasure Art 718 Art 438 Art 439 Lost movables Art 719 Art 720 Procedure after finding lost movables Intellectual creation Intellectual Property Code (RA 8293) Intellectual Property Rights (IPR): a. Copyright & related rights b. Trademarks & service marks c. Geographic indications d. Industrial designs e. Patents f. Topographies of integrated circuits g. Rights of performers, producers of sound recordings & broadcasting orgs h. Protection of undisclosed information i. Laws repealed by the IPC Sec 239 All acts and part of acts inconsistent with Intellectual Property Code, particularly: PD 49 Intellectual Property Decree, including PD 285 as amended RA 165, as amended Patent Law RA 166, as amended Arts 188 and 189 of the RPC

d. e.

f.

PROPERTY Prof. Labitag

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DONATION
Nature of donation A bilateral contract creating unilateral obligations on donors part Requisites of donation a. c. d. NOTE Consent and capacity of the parties Delivery of the thing donated Form as prescribed by law There must be impoverishment (in fact) of donors patrimony and enrichment on part of donee

b. Animus donandi (causa)

Kinds of donation 1. a. Inter vivos Art 729 Art 730 Art 731 Mortis causa Art 728 Propter nuptias Art 82, FC Art 87, FC 2. As to cause or consideration Simple Remuneratory Onerous imposes a burden inferior to the value of property donated i. Improper burden equal in value to property donated ii. Sub-modo or modal E.g. imposes a prestation upon donee as to how property donated will be applied Art 882 iii. Mixed donations negotium mixtum cum donatione e.g. sale for price lower than value of property 1. As to effectivity or extinguishment Pure Conditional Art 730 Art 731 EFFECT OF AN IMPOSSIBLE CONDITION: With a term 2. Importance of classification As to form As to governing rules As to impossible conditions Art 727 Art 1183 As to its taking effect

b.

c.

a. b.

c.

a. b.

a. a. b. c.

a. b. c.

3. Characteristics of a donation mortis causa Convey no title or ownership before donors death Before donors death, transfer is revocable Transfer is void if donor survives donee 4. Distinction between donation mortis causa and donation inter vivos

PROPERTY Prof. Labitag


a. b.

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What is important is the time of transfer of ownership even if transfer of property donated may be subject to a condition or a term Importance of classification validity and revocation of donation

Who may not give or receive donations Art Art Art Art Art 735 737 738 741 742

Who may give or receive donations Art Art Art Art Art Art Art 736 739 1027 1032 740 743 744

Acceptance of donation 1. Who may accept Art 745 Art 747 Time of acceptance a. of donation inter vivos Art 746 b. of donation mortis causa

2.

Form of donations 1. 2. 3. Personal property Art 748 Real property Art 749 Rules in Art 748 and Art 749 not applicable to: a. Onerous donations b. Modal donations c. Mortis causa donations d. Donations propter nuptias

What may be donated 1. All present property, or part thereof, of donor a. PROVIDED, he reserves in full ownership or usufruct, sufficient means for support of himself and all relatives entitled to be supported by donor at the time of acceptance Art 750

b. PROVIDED, that no person may give or receive, by way of donation, more than he may give or
receive by will Art 752 Also, reserves property sufficient to pay donors debts contracted before donation, otherwise, donation is in fraud of creditors Art 759 Art 1387

PROPERTY Prof. Labitag

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1. If donation exceeds the disposable or free portion of his estate, donation is inofficious
EXCEPTIONS

a. Donations provided for in marriage settlements between future spouses not more than 1/5
of present property Art 84, FC Art 130, CC

b. Donations propter nuptias by an ascendant consisting of jewelry, furniture or clothing not to


exceed 1/10 of disposable portion Art 1070

1. What may not be donated


a. Future property Art 751 Anything which donor cannot dispose of at the time of donation EXCEPTION Marriage settlements of future spouses only in event of death to extent laid down in CC re: testamentary succession Art 84, FC Art 130 CC

Effect of donation A. In general SHOPPERS PARADISE REALTY v ROQUE (2004) 1. 2. 3. Donee may demand actual delivery of thing donated Donee is subrogated to rights of donor in property donated Art 754 Donor not obliged to warrant things donated, EXCEPT in onerous donations in which case donor is liable for eviction up to the extent of burden Art 754 Donor is liable for eviction or hidden defects in case of bad faith on his part Art 754

4.

5. In donations propter nuptias, donor must release property donated from mortgages and other
encumbrances, unless contrary has been stipulated Art 131, CC 6. Donations to several donees jointly - no right of accretion, EXCEPT a. Donor provides otherwise b. Donation to husband and wife jointly with right of accretion (jus accrescendi) UNLESS donor provides otherwise Art 753

A. Special provisions 1. 2. 3. 4. Reservation by donor of power to dispose (in whole or in part) or to encumber property donated Art 755 Donation of naked ownership to one donee and usufruct to another Art 756 Conventional reversion in favor of donor or other person Art 757 Payment of donors debt Art 758 a. If expressly stipulated

PROPERTY Prof. Labitag


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1.

Donee to pay only debts contracted before the donation, UNLESS specified otherwise But in no case shall donee be responsible for debts exceeding the value of property donated, UNLESS clearly intended a. If there is no stipulation Donee answerable only for donors debt only in case of donation is in fraud of creditors Illegal or impossible conditions Art 727 Art 1183

Revocation and Reduction of Donations A. Revocation distinguished from reduction of donations Revocation Reduction

B. Causes of Reduction/Revocation 1. Inofficiousness of donation Art 752 Art 771 Art 773 Art 911 Art 912 a. b. 2. Who may ask for reduction Art 772 Rule applied: If disposable portion is not sufficient to cover 2 or more donation Art 773

Subsequent birth, reappearance of child or adoption of minor by donor Art 760

A. Revocation only 1. Ingratitude a. b. c. d. Causes Art 765 Time to file action for revocation Art 769 Who may file Art 770 Effect of revocation On alienation and mortgages Art 766 Art 767 2. Violation of condition a. b. Prescription of action Transmissibility of action

YULO AND SONS v ROMAN CATHOLIC BISHOP OF SAN PABLO (2005) 3. Effect of revocation or reduction

PROPERTY Prof. Labitag


Art 762 Art 764 Par 2 Art 767 4. Effect as to fruits Art 768

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PROPERTY Prof. Labitag

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PROPERTY Prof. Labitag

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LEASE
A. General characteristics of every lease 1. 2. 3. Temporary duration Onerous Price is fixed according to contract duration

A. Kinds of leases

1. Lease of things movables and immovables


2. Lease of work or contract of labor Art 1700 Art 1701 Art 1702 Art 1703 Art 1704 Art 1705 Art 1706 Art 1707 Art 1708 Art 1709 Art 1710 Art 1711 Art 1712 Lease of services a. b. Household service Contract for a piece of work Art 1713 Art 1714 Art 1715 Art 1716 Art 1717 Art 1718 Art 1719 Art 1720 Art 1721 Art 1722 Art 1723 Art 1724 Art 1725 Art 1726 Art 1727 Art 1728 Art 1729 Art 1730 Art 1731 Lease of services of common carriers Art 1732 Art 1733 Art 1734 Art 1735 Art 1736 Art 1737 Art 1738

3.

c.

PROPERTY Prof. Labitag


Art Art Art Art Art Art Art Art Art Art Art Art Art Art Art Art Art Art Art Art Art Art Art Art Art 1739 1740 1741 1742 1743 1744 1745 1746 1747 1748 1749 1750 1751 1752 1753 1754 1755 1756 1757 1758 1759 1760 1761 1762 1763

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A. Lease of things 1. 2. Concept Art 1643 Consumable things cannot be the subject matter of lease EXCEPT Art 1645 a. Consumable only for display or advertising (Lease ad pompam et ostentationem) b. Goods are accessory to an industrial establishment Special characteristics of lease of things a. Essential purpose is to transmit the use and enjoyment of a thing b. Consensual c. Onerous d. Price fixed in relation to period of use or enjoyment e. Temporary

1.

2. Lease distinguished from Sale, Usufruct, Commodatum


3. Period of lease cannot be perpetual a. b. Definite period not more than 99 years Indefinite period i. Rural land Art 1682 ii. Urban land Art 1687

4. 5.

Assignment of lease Art 1649 Sublease Art 1650

a. House Rental Law (RA 9653)

PROPERTY Prof. Labitag b. Obligation of sublessee to lessor


Art 1651 For rents Art 1652 6. Rights and obligations of lessor and lessee a. Obligations of a lessor Art 1654 Art 1661 Obligations of lessee Art 1657 Art 1662 Art 1663 Art 1665 Art 1668 Art 1667 Right of lessee to suspend payment of rentals Art 1658 Right to ask for rescission Art 1659 Art 1660

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b.

c. d.

e. Lessor not obliged to answer for mere act of trespass by a 3rd person
Art 1664 7. Grounds for ejectment of lessee by lessor Art 1673 Note the grounds under the House Rental Law. QUERY: Are they still effective? 8. Right to ask for writ of preliminary mandatory injunction in unlawful detainer cases Art 1674 Art 539, Par 2 Implied extension of lease Art 1670 Art 1682 Art 1687 Art 1675

9.

10. Right of purchase of leased land Art 1676 Art 1677 11. Useful improvements in good faith made by lessee Art 1678 12. Special provisions for leases of rural lands Art 1680 Art 1681 Art 1682 Art 1683 Art 1684 Art 1685 13. Special provisions for leases of urban lands Art 1686 Art 1687 Art 1688

PROPERTY Prof. Labitag

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