ACQUISITION OF OWNERSHIP
MODES
The principal modes are:
1. Original modes, there being no
previous or pre-existing rights of
another person, as in:
(a) Occupation of res nullius or
property without owner (other
than belonging to the State).
(b) Intellectual creation of previously
non-existing thing, as invention
and design.
2. Derivative modes, presupposing pre-
existing rights of another person who
transmit or from whom ownership if
acquired either by:
(a) Law (as in accession)
(b) Donation (deed w/ acceptance)
(c) Succession (in inheritance)
(d) Tradition (or delivery)
(e) Prescription (by possession)
Where tradition or delivery effects the
transfer or acquisition of ownership, the
title is the legal basis thereof. For instance,
sale is the title creating the obligation of
the seller to transfer the ownership of the
thing sold to the buyer. But it is the
sellers act of delivery, which effects the
actual transfer of ownership.
Tradition may be:
(1) real, as when there is physical
delivery or material transfer of
possession of the thing
(2) constructive, consisting of facts
indicative of the transfer as in
symbolic tradition (of keys to the
car); or
(3) quasi tradition, as in consenting to
the grantees use of a right.
OCCUPATION
Requisite of occupation as a mode of
acquiring ownership:
1. Object is corporeal movable;
2. Susceptible of appropriation by nature
3. Abandoned by or without an owner
4. Seizure or subjecting it to ones control
5. Intention to appropriate
6. Compliance with conditions of law
Examples of conditions of law are:
1. The right to hunt to fish is regulated by
special laws (Art. 715). Such objects
may be confiscated if caught in violation
of pertinent laws.
2. A domesticated animal (pet tiger) will
pertain person who caught and kept
them, if the owner fails to claim it within
20 days (Art 716). But in the case of
domestic animal (dog/cat), it may be
claimed by the owner even beyond 20
days
3. The finder of a movable must return it to
the owner if known. If not, the movable
must be deposited with the mayor who
shall publicly announce the finding. If
the owner does not appear within 6
months from publication, the movable
shall be awarded to the finder (Art. 718).
INTELLECTUAL CREATION
The persons who acquired original
ownership by intellectual creation are
(Art. 721):
1. Author over his literary, dramatic,
historical, legal, philosophical,
scientific, or other works;
2. Composer of his musical
composition;
3. Painter, sculptor, or other artist, on
the product of his art;
4. Scientist or technologist, or any other
person over his discovery or
invention.
Those persons have ownership over
dominion even before their creations are
published, copyrighted or patented
(Art. 722).
Their rights over the product of their
intellectual creation are called intellectual
property which consists of copyrights,
patents, trademarks, and service marks,
industrial and lay-out designs, and
protection of undisclosed information
(RA 8293).
Letters and private communications in
writing belong to their
addressee/recipient, and their contents to
the writer/his heirs/ The former can keep
or dispose of these material things but not
publish their contents unless with consent
of the latter or authorized by the court for
public good or interest (Art. 723).
The present law governing copyright
and patent is the Intellectual Property
Code, implemented by the Intellectual
Property Office (IPO) under the
Department of Trade and Industry
(DTI).
Patent right belongs to:
(1) Generally, the inventor, his
heirs, or assigns;
(2) Jointly to the persons who
jointly made the invention
(3) The principal who
commissioned the work,
unless otherwise provided in
the contract with the inventor
(4) The employee if the invention
is not part of his regular duties,
even if he uses the time,
facilities and materials of the
employer;
(5) The employer if the invention
is result of the employees
performance of his regular
duties, unless the contrary is
agreed upon.
Copyright ownership belongs to:
(1) Author in this case of original
literary and artistic work
(2) Co-authors in case of work of joint
authorship;
(3) Author-employee if the work is not
part of his regular duties even if he
uses the time, facilities and
materials of the employer;
(4) Employer of author if the work is
result of the author-employees
performance of his regular duties;
(5) Author but his work belongs to
principal who commissions and
pays for it.

NATURE
A. Concept
Donation is an act/contract of
liberality whereby the donor disposes
gratuitously or right in favour of the
donee, who accepts it (#725).
Donation is perfected from the
moment the donor knows of the
donees acceptance (#734).
B. Requisites of donation
1. Capacity to make the donation.
2. Intent to make the donation.
3. Delivery, actual or constructive
of thing or right donated
4. Acceptance of donation.
5. Compliance with prescribed
form.
C. Extent of donation
Donation may comprehend all present
properties, or part thereof, provided
donor reserves sufficient means for his
support and of relatives entitled by law
to his support. Otherwise, it is subject
to reduction (#750).
Donation cannot comprehend future
property (#751)
DONATION
KINDS AS TO CONSIDERATION
1. Pure and Simple. When the cause of the donation is pure 1. Inter vivos. Donation intended by donor to take
liberality of the donor in consideration of the donees merit effct during his lifetime, even if delivery be
(#726).
Examples: Donee is donors child; donee passes the bar
examination
2. Remuneratory or compensatory. When the donation is
given out of gratitude for the services rendered by the donee
to the donor, provided the services do not constitute a
demandable or renounced debt (#726),
Examples: Donee saved the life of donors childe, lawyer
handled pro bono case of the donor
3. Modal. When the donation imposes on the donee a burden
or services to be performed that is less than the value of the
thing or right donated (#726).
Examples: The donor gives P100,000 provided the donee
spends P20,00 for the funeral expenses of donor when the
latter die; value of thing sold exceeds the price paid.
4. Onerous. When consideration for which the donation is
made is purely onerous or equal to the value of the thing or
right donated (#733). This kind is governed by the rules on
obligations and contracts.
Example: Donor gives land worth P100,000 provided the
donee will deliver farm produce of the same value to the
doners children
Illegal or impossible condition in simple or resolutory donation
shall be considered as not imposed (#727).
Example: provided the donee disown his mother-in-law.
KINDS AS TO TIME OF EFFECT/EFFICTIVITY
after his death (#729) or even if subject to
suspensive and resolutory conditions (#730,
731).
Examples: Donor transders title but reserves
usufruct or beneficial ownership; donee given
title but with limited right of disposition and
encumbering; or donees right to fruits begin
only after donors death
2. Mortis causa. Donation which takes effect
upon the death of the donor and is governed by
the rules of succession (#728).
Examples: Donation to pass title only by and
because of donors death; donor reserves right
to dispose and enjoy the property or to revoke
the donation at any time or for any reason
before his death; no actual conveyance and
deed of donation to be registered only after
death of donor.
3. Propter nuptias. Donation by reason of and in
considetration marriage, before its celebration,
in favour of one or both the future spouses
(#82, Family Code).
Donations may also be conditional when subject to
suspensive and resolutory conditions (#730, 731),
or with a term when subject to a period whether
suspensive or resolutory (#730).

CAPACITY AND RIGHTS OF
DONOR
A. Capacity to be donor
All persons who may contract and dispose
of their property may make a donation
(#735).
The donors capacity shall determined as
of the time of the making, and not at the
perfection, of the donation; subsequent 1. No person may receive, by way of
incapacity of donor shall not affect
validity of donation (#737).
B. Incapacity
1. Guardians and trustee cannot donate
the property entrusted to them (#736).
2. Person has neither ownership nor real
right that he can transfer to another
(as in #744 in relation to #712).
3. No person may donate more than he
may give by will, otherwise donation
is inofficious in the excess (#752).
C. Rights and Obligations of Donor
1. May reserve the right to dispose of
thing donated or some amount or
income thereof (#755).
2. May donate the naked ownership to
one person and the usufruct to another
provided donees are alive (#756).
3. May provide for reversion of property
on his favour for any case and
circumstance (#757).
4. Donor is obliget the warrant the thing
donated when donation is onerous in
which case he is liable for eviction or
hidden defects in case of bad faith on
his part (#754).
DONOR AND DONEE
CAPACITY AND OBLIGATIONS OF
DONOR
A. Capacity to be donee
All those who are not specially disqualified
by law therefor may accept donations
(#738).
B. Incapacity
donation, more than he may receive by
will, otherwise donation is inofficious
in the excess.
2. Incapacity to succeed by will shall be
applicable to donations inter vivos
(#740, see #1027 for specific instance)
C. Requirements for acceptance
1. Acceptance shall be made during the
lifetime of the donor and donee.
(#746).
2. Donee shall accept the donation
personally or through person with
special or general and sufficient power
(#745).
3. Minors and others who cannot enter
into a contract, shall have acceptance
done through parents or legal
representatives (#741).
4. Conceived and unborn children shall
have donation accepted by persons
who would legally represented them if
they were already born (#742).
FORMS OF DONATION
A. Movable property
1. Oral donation, requiring the
simultaneous delivery of the thing
or of the document representing the
right.
2. Written donation and acceptance
when the value of the movable
exceeds P5,000, otherwise donation
is void (#748).
B. Immovable property
1. To be valid, donation shall be in a
public document specifying the
property and the value of the
charges imposed on the donee.
2. Acceptance by donee my be in the
same deed of donation or in
separate public document, which
shall be done during the lifetime of
the donor.
3. If the acceptance is in a separate
instrument, donor shall be notified
thereof in an authentic form and this
step sall be noted in both instrument
(#749).
C. Donation mortis causa
Such donation, which do not comply
with the formalities of a will, cannot
transfer ownership.
VOID DONATIONS
A. Void donation
1. Made between persons who were
guilty of adultery or concubinage at
time of donation. Spouse of donor or
donee may file action for declaration
of nullity, only preponderance of
evidence required.
2. Made between persons found guilty
of the same criminal offense, in
consideration thereof.
3. Made to a public officer or his wife,
descendants and ascendants by reason
of his office (#739).
4. Made to incapacitated persons,
through simulated under the guise of
another contract or through a person
who is interposed (#743).
B. Reversion, valid and void
A donor may validly provide for reversion
whereby the property donated shall return
to him under any case and circumstance.
Provision for reversion may be in favour
of other persons, provided they are alive at
the time of donation; otherwise the
provision is void but the donation remains
valid (#757).
D. Rights/Obligations

1. In donation to husband and wife jointly,

there shall be accretion if contrary is
not provided;
In donation to several persons jointly on
equal shares, no right of accretion
unless so provided (#753).

2. Donee is subrogated to all the rights

and actions which in case or eviction
would pertain to the donor (#754).

3. Donee shall pay donors debt

previously contracted when donation
imposes such obligation; in no case
shall donee be responsible for debts
exceeding the value of the property
donated, unless contrary intention
clearly appears (#758).

4. If no stipulation, donee shall not be

responsible for payment of debt except
when donation was made in fraud of
creditor, which fraud is presumed when
donor did not reserve sufficient
property to pay his debts prior to the
donation (#759).

REVOCATION
A. Birth, appearance or adoption
Donation inter vivos by person with no
children or descendants, whether
legitimate, legitimated or illegitimate, may
be revoked or reduced when the:
1. Donor should have any such
children, after donation, even
though posthumous.
2. Donors child whom he believed
to be dead at time of donation,
should turn out to be living.
3. Donor later adopt a child (#760).
Subject of revocation or reduction is the
excess over the portion that may be freely
disposed by will, at time of birth,
appearance or adoption (#761).
Property affected shall be returned, or its
value at the time of the donation (#762).
Action prescribes in 4 years, cannot be
renounced and is transmissible to donors
children/descendants (#763).
B. Non-compliance with conditions
When conditions imposed by donor is not
complied with by donee, donor may
demand return of the property; alienation
and mortgage by donee are void, subject
to protection of third party under Mortage
Law and Land Registration laws. Action
prescribes after 4 years from non-
compliance, transmissible to donors heirs,
and may be exercised against donees
heirs (#764).
REVOCATION AND REDUCTION
C. Ingratitude
Donor may revoke donation when:
1. Donee commit some offense against
person, honor or property, wife or
children of donor.
2. Donee imputes to donor any criminal
offenses or moral turpitude, even if
proven unless committed against
donee, his wife or children.
3. Donee refuses to support donor when
legally or morally bound (#765).
Action not renounced in advance,
prescribes in 1 year, transmissible if
instated by donor (#769, 770).
REDUCTION
A. Birth, appearance or adoption D. Fraud of creditor
Same as A under Revocation
Donation is presumed to be in fraud of
B. Inofficiousness creditor when at the time thereof, the
donor did not reserve sufficient property
Inofficious donations shall be reduced as to pay his debt prior to the donation
to the excess, bearing in mind donors (#759).
estate at time of death (#771, see also
#911/#912 on Succession). Those who Action shall be brought within in 4 years
have right to legitime, their heirs and from donation or creditors knowledge
successors may ask for reduction; they thereof; transmissible to creditors heiri or
cannot, during lifetime of donor, renounce successor-in-interest.
the right to ask for reduction (#772).
Property affected shall be returned by
In case of several donations and donee for the benefit of creditor, subject to
disposable portion not sufficient more right of third parties. Donee is liable for
sufficient, more recent donation shall be damages in case of bad faith and inability
reduced with regard to the excess (#773). to return the property.
C. Failure to reserve
Donor shall reserve in usufruct or full
ownership, sufficient means for his
support and all relatives entitled at the
time of donation to be supported by him
(#750). Otherwise, donation to be reduced
to the extent needed therefor.
Action for reduction may be filed at any
time by donor or the relatives during
lifetime of donor. Action is not
transmissible since duty to give and
receive support is personal in nature.

Meaning of Registration
Meaning.
It is the inscription or annotation of acts
and contracts relating to ownership and
other real rights over the immovable
properties. (Art. 708).
Purpose.
Registration has a two-fold purpose:
(a) to give notice of the true status of
the property, including any lien
or encumbrance thereon;
(b) to afford protection to a person
who relies on such notice.
The general rule is that every person
dealing with registered land may safely
rely on the correctness of the certificate to
determine the legal condition of the
property.
Exceptions are when he is aware of
circumstances that would make a prudent
man on guard, or when he buys the land
from an agent and not the registered
owner.
When registered.
An instrument on titled land is deemed
registered when it is entered in the
(Electronic) Primary Entry Book or
EPEB-RL, even if no annotation thereof
has been recorded in the certificate of title
provided the requirements for entry and
registration including payment of required
fees hae been complied with.
Practical Application:
- Mirror
- Annotation of the property: deemed
notice to the
REGISTRY OF DEEDS
Effect of Registration Register of Deeds
Certificate of title. (d) Not prejudice a third party with The office of the Register of Deeds is
A certificate of title covering a land, a better right, that is, one who under the Land Registration Authority
whether an OCT or TCT, when registered acquired in good faith a right (LRA). There is one in every province and
has the attributes if indefeasibility and over an immovable prior to not every city. It is the public repository of
incontrovertibility, imprescriptibility another person. records of instruments affecting registered
and not subject to collateral attack, and the and unregistered lands and chattel
presumption of regularity in its issuance. Double sale. mortgages.
Once a title is registered, the owner may A subsequent buyer of a property who
rest secure of not losing his land. does not know of an earlier purchase Function.
thereof by another person, but who The function of the Register of Deeds
Constructive notice. registers ahead in good faith has a relative to the registration of deeds,
When an instrument or conveyance such better right than that other person. instruments, liens or encumbrances, and
as sale or mortgage of land is properly the like is ministerial in nature. So long
registered and inscribed, it is constructive But a person who has actual knowledge as in his opinion theses are registrable, he
notice thereof to all persons. of the act, contract, or deed such as the must register them.
A person cannot claim not to know of prior purchase affecting the registered He has no personal judgment or discretion
such instrument or conveyance much less title before he acquired the right to the whether an instrument is invalid or illegal
of the certificate of title or of the property is bound by and may be for that it is for the court to decide.
registered lien and encumbrance. prejudiced by such act, contract, or deed.
Even if he actually does not know of them, Denial of Registration.
under the law he is deemed aware Sale and mortgage. The Register of Deeds may deny
thereof and is bound thereby. Unlike double sale, a prior unrecorded sale registration in very exceptional cases
of a property is preferred over a registered where:
Non-applicability. mortgage right thereon. This is because (a) The instrument is a private
Registration does: the original owner had already parted with document, that is, not notarized;
(a) Not vest title over immovable where his ownership and no longer had right of (b) The voluntary instrument bears
the person does not have a rightful disposal of the property as to mortgage it. an infirmity on its face, as when
claim thereon, because registration is the sale is of the whole conjugal
not a mode to acquire ownership; property but only 1 spouse had
signed it;
(b) Not validate or cure defective (c) More than 1 copy of the owners
instrument, ad where the deed is duplicate were issued to the co-
forged, fictitious or simulated, or the owners, not all such copies were
certificate of title was fraudulently presented with the instrument to
obtained or issued; be registered.
(c) Not bind property where the
registration is legally defective, as
when the transaction involves
registered land but is registered under
Act 3344, which is the system of
registration for unregistered land.

CLOUD ON TITLE
Meaning. The legal term cloud means
doubt or uncertainty.
There is cloud when:
(a) There is an instrument record, claim,
encumbrance, or proceeding which is
apparently valid or effective but
(b) is in truth and in fact, invalid,
ineffective, voidable or terminated, or
has been barred by prescription
The cloud must appear to be valid and
effective. If the instrument is obviously or
on its face invalid or ineffective, as when
the consideration in a deed of sale illegal
or criminal, then no cloud exists.
Examples.
There is a cloud on title when the
following exists:
(a) Sale of land by agent who has no
written authority from the
owner;
(b) Forged or falsified contract;
absolute fictitious or simulated
contract of sale;
(c) Voidable contract due to lack of
consent, or consent by mistake,
violence, intimidation, undue
influence, or fraud.
These examples may prima facie look
valid and effective but are actually not
based on their defects
QUIETING OF TITLE
ACTION TO QUIET TITLE
Nature.
The action to quiet title is a special
proceeding.
It is quasi in rem which unlike a suit in
rem, is binding only between the parties
It is not a suit in personam in which
jurisdiction over the person of defendant is
required.
Purpose.
Under Article 476 of the NCC, the action
has both a remedial and preventive
purpose, to wit:
(a) To remove a cloud:
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,
voidable or unenforceable and may be
prejudicial to said title. An action may
be brought to remove such cloud or to
quiet the title
(b) To prevent a cloud:
An action may also be brought to
prevent a cloud from being cast upon
title or any interest therein.
Under Art 478, there may also be an
action to quiet title or remove a cloud
when the contract, instrument or other
obligation has been extinguished or
terminated or barred by prescription.
SUITORS OBLIGATION
Prescription. The plaintiff must return to the
The action to quiet title is imprescriptible defendant all benefits he may have
if the plaintiff or suitor is possession of the received from the latter, reimburse him
property. If not (in possession), the for expenses redounded to the plaintiffs
prescriptive period is 10 or 30 years benefit (Art. 479).
depending on ordinary or extraordinary
prescription. To be subtracted therefrom would be
any damage suffered by the plaintiff by
Property affected. reason of the cloud and whatever benefits
The property to which the action to quiet may have been received by the defendant
title is applicable is: by the property.
(a) Real property or any right therein,
such as usufruct, servitude, lease or
mortgage of immovable; and
(b) Certain personal property which
partake of the nature of real
eriproperty or require registration,
such as vessels (PCG) and motor
vehicles (LTO).
The plaintiff or suitor need not be in
possession of the property but must have
legal or equitable title thereto, or
interest in the immovable.

PRESCRIPTION
Concept.
A mode of acquiring ownership and other
real rights (acquisitive prescription);
and losing rights and action (extinctive
prescription).
Subjects.
All things within the commerce of man
are susceptible of prescription, unless
otherwise provided (as in registered land).
Property of the State or any of its
subdivisions, not patrimonial in character,
shall not be subject of prescription
(1113)
Patrimonial property is owned by the State
or its subdivision in their propriety
function. To be subject of prescription,
such patrimonial property must be
declared no longer need for public use and
service.
Exemptions.
Prescription does not run between
husband and wife, even if there is
separation of property, nor between
parents and minor/insane children, nor
between guardian and ward (1109).
But prescription, acquisitive and
extinctive, runs in favor of or against a
married woman (1110).
PRESCRIPTION
PRESCRIPTION OF OWNERSHIP AND REAL RIGHTS
Kinds of prescription:
1. Ordinary prescription which
requires possession in good faith
and with just title for the time
fixed by law (1117). Possession
must be in the concept of owner,
public, peaceful and
uninterrupted, not by mere
tolerance or through a crime
(1118-1119).
2. Extraordinary prescription when
possession is without good faith
or just title
GOOD FAITH
Consist in the reasonable belief that the
person from whom he received the thing
was the owner thereof, and could transmit
his ownership (1127).
JUST TITLE
When possession was acquired through
modes recognized by law (sale or
inheritance) to acquired ownership and
other real rights, but the grantor was not
the owner could not transmit any rights
(1129-1131)
Period for acquisition:
1. Movable
4 years with good faith & just title
8 years if without
2. Immovable
10 years with good faith & just title
30 years if without
PRESCRIPTION OF ACTIONS
Interruption of possession for the Actions
purpose of prescription: Prescribes by mere lapse of time fixed by
law. The action must be brought within a
1. Natural certain period of time (prescriptive period/
When for any cause possession ceases for period of limitation (1139).
more than 1 year. In such case, the
previous possession is not revived or Prescriptive periods (1141-1147)
counted in favor of the possession. If None Right of way
cessation is for 1 year or less, time Abatement of nuisance
elapsed is counted in favor of prescription. 30 years Real action over an
immovable
2. Civil 10 years Mortgage action
Judicial summons to the possessor. There
is no interruption if the summons is void, - Upon written contract
plaintiff offered desistance, or possessor is - Obligations arising from law
absolved in the suit (1123) - Court judgment
3. Express or tacit recognition (Other Article:
By possessor of owners right to the Reconveyance based on
property (1125), or renunciation by implied constructive trust)
possessor of his right. 6 years Oral Contract
Quasi Contract
Prescription vs. Laches: 4 years Injury to rights
Prescription has definite period fixed by Quasi Delict
law. Laches depends on the degree of Rescission/Annulment of
negligence, inaction or omission called contract
upon by the circumstances. Thus, a
registered or titled property is 1 year Forcible entry
imprescriptible; but laches may prevent Illegal Detainer
the recovery of its possession by the Defamation
owner if he is guilty of inaction for an
inaction for an unreasonable length of Time for prescription starts from accrual
time. or the day the action may be brought
(1150). Without prejudice to special laws
Interruption of prescription periods:
1. Suit filed in court
2. Extrajudicial demand by creditor
3. Acknowledgement of debt by
debtor