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BOOK II.

PROPERTY, OWNERSHIP, & ITS MODIFICATIONS


B. MACHINERY
Title I. Classification of Property (Arts. 414 – 426)
 Machineries are classified as real property but only when they are
A. Define Property. intended by the owner of the tenement for an industry or works
- Property is anything which is or may be the object of which may be carried on in a building or on a piece of land, and
appropriation. (Art. 414) which tend directly to meet the needs of said industry or works.
 Installed by the owner of the tenement itself, and not the lessee of
B. Classification of Property the tenement.
1. Immovables or Real Property (Art. 415)  An industry is carried on in the tenement.
- Immovable by nature: those which cannot be moved from place  Machinery must be intended for such industry or works.
to place. (par. 1: land & roads, and par. 8)  Machine must tend directly to the needs of the industry which is
being carried on in the tenement.
- Immovable by incorporation: those which are attached to an C. OBJECTS USED FOR ORNAMENTATION
immovable in such manner as to form an integral part thereof. (par 1,  In order to be considered as real property, it is essential that they
(except land & road) 2, 3, and 4) should have been placed in a building by the owner of such building
- Immovable by destination: those which are placed in an for use or ornamentation in such a manner that the intention to
immovable for the use, exploitation or perfection of such immovable. (par. attach them permanently to the tenement.
4, 5, 6, 7, and 9) 2. Movable or Personal Property (Art. 416 - 419)
- Immovable by analogy: those which are considered immovables - What are movable properties?
by operation of law. (par. 10) > Movables susceptible of appropriation not included in Art. 415;
TAKE NOTE: > Real property which by any special provision of law is considered
as personalty;
A. ESTOPPEL
 Principle of Estoppel: Parties to a contract are estopped from > Forces of nature which are brought under control by science;
denying the characterization of a property as personal property if in > In general, all things which can be transferred from place to place
the contract they have previously agreed so. Even if contemplated without impairment of the real property to which they are fixed.
as real property under the law, the object shall be considered as > Obligations and actions which have for their object movables or
personal. demandable sums;
 Application: This only applies to the contracting parties. Third > Shares of stock of agricultural, commercial, and industrial entities,
persons acting in good faith are not affected by its stipulation although they may have real estate.
characterizing the subject property as personal. TAKE NOTE:
 Predicated on the statements by the owner declaring his house to
be a chattel or that he is ceding, selling, or transferring by way of A. TEST TO DETERMINE IF PROPERTY IS MOVABLE
chattel mortgage the property, a conduct which will subsequently  Must be applied successively:
estop him from claiming otherwise. o Whether it can be transported from place to place.
oWhether the change of location can take place without o Cannot be burdened by voluntary easement
injury to the immovable to which it may be attached.
o Whether it is not included in the enumeration found Art
415.
4. Property of Private Ownership (Art. 425 – 426)
B. CLASSIFICATION OF MOVABLE PROPERTY
> consists of all property belonging to private persons, either
 As to the possibility of being CONSUMED by their use:
individually or collectively.
o Consumables: those which cannot be used in a manner
appropriate to their nature without being consumed. TAKE NOTE:
o Non-consumables: those which can be used in a manner
A. Roppongi Doctrine (Conversion of public dominion to
appropriate to their nature without being consumed.
patrimonial property)
 As to the possibility of being SUBSTITUTED by others of the same
 It is of public dominion unless it is convincingly shown that the
kind and quality:
property has become patrimonial.
o Fungibles: or those which can be substituted by others of
 Non-use for a long time does NOT automatically convert it to
the same kind and quality. (ex. Oil, money, etc.)
patrimonial. Conversion only happens if it is withdrawn from public
o Non-fungibles: those which cannot be substituted by others
use.
of the same kind and quality. (unique objects or limited)
 There must be a formal declaration on the part of the government
3. Property of Public Dominion (Arts. 420 – 424) to withdraw it from being such. Abandonment must be definite.
> those intended for public use (such as roads, canals, rivers,  Must be done through authorized and approved by law enacted by
torrents, ports and bridges constructed by the State, banks shores, Congress.
roadsteads, and other of similar character)
> those which are intended for public service (without being for
public use) or for the development of national wealth.

> those for public use in the Local Government Units.

> PATRIMONIAL PROPERTY: property of the State which are not


intended for those mentioned above. Owned by the State in its municipal or
private capacity.

TAKE NOTE:

A. CHARACTERISTICS OF PROPERTY OF PUBLIC DOMINION


 Outside the commerce of man, consequently they:
o Cannot be appropriated
o Cannot be the subject matter of contract, be alienated or
encumbered
o Cannot be acquired by prescription
o Cannot be subject to attachment or execution
a. Right to consume or destroy or abuse (jus abutendi)
b. Right to encumber or alienate
3. Right to recover or vindicate (jus vindicandi)
Title II. Ownership

Chapter 1. Ownership in General


Action to Recover

ARTICLE 427. Ownership may be exercised over things or rights. 1. Recovery of Personal Property
a. Replevin (Rule 60, Rules of Court)
2. Recovery of Personal Property
COMMENT: a. Forcible entry or unlawful detainer (ACCION INTERDICTAL)
Ownership – is the independent and general right of a person to control a b. Plenary Action to Recover Better Right of Possession
thing particularly in his possession, enjoyment, disposition, and recovery, (ACCION PUBLICIANA)
subject to no restrictions except those imposed by the state or private c. Reivindicatory Action (ACCION REIVINDACATORY)
persons, without prejudice to the provisions of the law. 3. Additional:
a. Writ of Preliminary Mandatory Injunction
Kinds of Ownership: b. Writ of Possession
1. Full ownership – this includes all rights of an owner.
2. Naked ownership – where the right to use the fruits has been Replevin
denied. - an action or provisional remedy where the complainant prays for
3. Sole Ownership – vested in only one person. the recovery of the possession of personal property.
4. Co-ownership – vested in two or more owners. - When used? At the commencement of the action, or at any time
Where Question of Ownership Should be Decided before the other party answees.
 Generally, be ventilated in an ordinary civil action or proceeding. - What must be shown?
o Applicant is the owner of the property claimed or is entitled
ARTICLE 428. The owner has the right to enjoy and it the possession thereof.
dispose of a thing, without other limitations than those o Property is wrongfully detained by the adverse party.
established by law. o Not placed under cutodia legis or if so seized, that it is
exempt from such seizure of custody.
COMMENT: o Actual market value of the property.
- Applicant must also give a bond, double the amount of the value of
Rights of an Owner: the property. The property seized is not immediately delivered to
1. Right to enjoy the plaintiff. The Writ may be served anywhere in the Philippines.
a. Right to possess (jus possidendi)
b. Right to use (jus utendi) Forcible Entry
c. Right to the fruits (jus fruendi)
2. Right to dispose (jus disponendi)
- Summary action to recover physical possession of real property
when person originally in possession was deprived thereof by
FORCE, INTIMIDATION, THREAT, STRATEGY OR STEALTH.
- May be filed even against the owner of the property.
- Purpose: A party out of possession must respect and resort to the
law alone to obtain what he claims is his.
- What must be shown:
o That the plaintiff was deprived of possession (FISTS)
o That the action is brought within the one year-period.

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