CONTINUATION OF SAT.

, 25 JUNE 2016 LECTURE:

(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;
o Art. 415, par. 4 refers to REAL PROPERTY BY DESTINATION or Purpose

o For the ornamental and utilitarian objects to classified as Real Property, the
following essential requisites must be present:
Par. 4 REQUISITES:
1. Refers to OBJECTS for ORNAMENTATION or for USE placed in building
or land
2. It must be placed by the
agent

OWNER of the Building or Land

or his

3. It is attached in a manner that it reveals the owners intention to

attach these objects PERMANENTLY to the tenement

Examples: statue of dogs attached to the foyer floor near the main entrance
door of the house; painting of the last supper painted on the main dining wall;
wall of stones cemented to channel the water fall towards the pool; wall to wall
carpet stapled to the floor in the bedroom.

(5) Machinery, receptacles, instruments or implements intended by the owner of

the tenement for an industry or works which may be carried on in a building or
on a piece of land, and which tend directly to meet the needs of the said
industry or works;
o Art. 415, par. 5 refers to REAL PROPERTY BY DESTINATION or Purpose
Q. What are the Essential REQUISITES for Properties in Art. 415, par. 5 to become
Immovable ?
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a. Object must be either Machinery or, Receptacles or, Instruments,

Implements
b. These objects are placed in a building or land
c. The installation is by the Owner of tenement or his agent
d. Industry/work is carried on in such bldg. or land (tenement)
e. Objects carry out or directly meet the needs of said industry or
work.
Q. What about if the elements b,c,d are present but not a?
A. Property will be deemed personal or movable. Immobilization by destination or
purpose cannot generally be made by a person whose possession of the property is
temporary. (Davao Sawmill v. Castillo, 61 Phil. 709)
Exception: When the tenant or person who placed the machinery on the tenement
promised to leave them at the end of the lease, or when he acted only as agent of the
owner of the land or tenement. (Valdez v. Central Altagracia, Inc. 225 US 58)
Note: Machineries and equipment installed in a place of work (example: sawmill) are
real properties. Thus, if executed upon and judicially sold, publication of the sale in
newspaper of general circulation per Sec. 16, Rule 39 of Rules of Court should be
complied, otherwise, the sale made by the sheriff is null & void. (Ago v. Court of
Appeals et, L-17898, Oct. 31, 1962)
o Study: Berkenkotter v. Cu Unjieng, 61 Phil. 663

(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;
Requisites:
1. The animal house or structure is installed by the owner
2. With intention to place the animal house or structure permanently attached to the
land and form part thereof
3. The animals in these houses or structures are included and deemed as
immovable.
Note:
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o The animals are deemed real properties only as long as they remain
in their houses or structures.
o If they are taken out from their houses, with no intention of
returning them, they will be deemed personal properties.
(7) Fertilizer actually used on a piece of land;
o Fertilizer becomes Real Property by INCORPORATION - once it is used or mixed
with the soil or land. Otherwise, it is personal property.

(8) Mines, quarries, and slag dumps, while the matter thereof forms part of the
bed, and waters either running or stagnant;
o Par. 8 - deemed REAL Properties by NATURE
o Mines and the minerals forming part thereof are real properties.
o But once extracted from the mine, the minerals become personal properties
o Waters, or rivers, lakes and seas are REAL properties.
o But water taken from the rivers, lakes and seas and placed in a container (e.g.
bottle, can, etc.) is movable or personal.

(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;
o Par. 9 - Real Properties by DESTINATION or Purpose
o The floating structures must be by their nature and purpose remain at a fixed
place on the river, lake or coast, and not moving or sailing elsewhere.

(10)

Contracts for public works, and servitudes and other real rights over
immovable property.
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o Par. 10 Real Property by ANALOGY

Q. What is deemed real or immovable property in par. 10, Art. 415, is it the public
works itself, or the rights to the contracts?
A. Par. 10 refers to the RIGHTS, which are not material or tangible.
o It is the CONTRACT itself, which may cover i.) public works, ii.) servitudes or
easements and, iii.) other real right over immovables - that is considered as
immovable property by analogy in par. 10, Art. 415.
Also note that: Right to recover possession of a piece of land, right to foreclose
on real estate mortgage is NOT deemed personal property but considered as
real property under par. 10 of Art. 415 (Hilado v. Reg.of Deeds, 49 Phil.542)

Chapter 2 MOVABLE PROPERTY

Q. What are the Three Tests to Determine whether Property is Movable?
a.) If property may be carried from place to place (Description test)
b.) If change of location can be made without injuring the real property to which it
may in the meantime be attached (Description test)
c.) The object is not one of those enumerated or included in Art. 415 (Exclusion
test)
Art. 416. The following things are deemed to be personal property:
(1) Those movables susceptible of appropriation which are not included in
the preceding articles;
Examples: pen, clothes, piano, animals; also intellectual properties
such as patent, trademarks and copyrights
(2) Real property which by a special provision of law is considered
personalty;
Examples :
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a. Growing crops for purposes of chattel mortgage law and

attachment (Sibal v. Valdez, 50 Phil. 512 )
b. Machinery placed on a tenement by Lessee/tenant who did not
act as agent of the tenement owner (Davao Sawmill v. Castillo,
61 Phil. 709).
(3)

Forces of nature which are brought under control by science; and

Examples:
a. Electricity, gas, light, nitrogen while cannot be seen but is
manifest; it has value, maybe transported, of value and may
be appropriated and thus, can be subject of theft (US v.
Carlos, 21 Phil. 543)
b. Intellectual creations like patents to inventions using forces of
nature to create rights to formulas, products and properties
which can be appropriated by the owner

(4) In general, all things which can be transported from place to place
without impairment of the real property to which they are fixed.
Example: Machinery not attached to land nor needed for carrying
on an industry conducted therein; portable radio, laptop computer,
diploma on wall; buses

Other Incorporeal Movables considered as Personal Properties

are Intellectual Property Rights :
a.) Patents
b.) Trademarks
c.) Copyrights

Art. 417. The following are also considered as personal property:

(1)

Obligations and actions which have for their object movables or

demandable sums; and
Example:

Right to bring an action to recover personal or movable

properties, such as the right to demand/collect sums of money, or
recover possession and/or ownership of a car, bike, jewelry, etc.

(2) Shares of stocks of agricultural, commercial and industrial entities,

although they may have real estate.

The shares of stocks or stock certificates are PERSONAL.

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But the real estate properties (land, building) owned by the business or entity
covered by the stocks, remain Real.

Shares of stock being personal property may be the object of a chattel mortgage.

SHARE in Art. 417 is understood in its generic sense as PARTICIPATION rights in

the business.

Study: Involuntary Insolvency of Stochecker v. Ramirez, 44 Phil. 933

Art. 418. Movable property is either consumable or nonconsumable. To the first

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