PROPERTY REVIEWER Civil Code of the Philippines Paras, Book II, Articles 414 to 693
PROPERTY (subject or course) – classifies or defines the different kinds of appropriable objects, provides for their acquisition, and loss, and in general, treats of the nature and consequence of such real rights.
Classification of THINGS
• Res nullius – belonging to no one • Res communes – to everyone • Res alicujus – to someone Classification of Property
• Movable, immovable • Public, private dominion
• Within, outside the commerce of man • Present, future property
• Tangible or corporeal, intangible or incorporeal • Principal, accessory
• Fungible, non-fungible • Generic, specific
• In custodia legis, free property Characteristics of Property
1. Utility for the satisfaction of moral or economic wants 2. Susceptibility of appropriation
3. Individuality or substantivity ARTICLE 414
•
Importance of classification to immovable and movable – the fact that different provisions of the law govern the acquisition, possession, disposition, loss, and registration of immovables and movables•
Human body – neither personal nor realARTICLE 415 - Immovables
•
Definition – the etymological meaning should yield to the legal or juridical significance attached to the term by the lawAcademic Classification of REAL PROPERTIES 1. By nature
2. By classification
3. By destination or purpose 4. By analogy
• Buildings – there should be intent of permanent annexation (immovable property) • No distinction whether built on own land or not
• Materials and/or dismantled house – personal property
•
House built on rented land may be mortgaged: Chattel – provided parties agree and no innocent third party is prejudiced
Real Estate Mortgage – should be preferred if made subsequent to chattel mortgage • Buildings subject to chattel mortgage cannot be sold extra – judicially (under 3135, refers to real
mortgage only)
• No legal compulsion to register buildings that do not belong to owners land – NO registry in this jurisdiction of building apart from land.
• Buildings sold or mortgaged to be immediately demolished – personal property, true object of the contract is the materials
• REGISTRY OF PROPERTY – ministerial duty, should register as long as proper fee has been paid. He has no judicial or quasi-judicial power to determine the nature of the document.
• Constructions of all kinds –attachment must be more or less permanent • Wooden scaffoldings of painters – personal property
• Detached or uprooted trees – personal property, except timer in timberland
• Real property (incorporeal thing) – injury or breakage or deterioration in case of separation must be SUBSTANTIAL
• Everything attached to an immovable (par.3) – when incorporation ceases or when it is detached it is considered as personal property
• Par.4 (statues, reliefs, paintings) – should have intent to attach permanently • Par.5 (machinery) –
1. Should be placed by the owner of the tenement 2. Industry or works must be carried on in a building 3. Directly meet the needs of the industry or work
4. Machines must be essential and principal elements in the industry, and not merely incidental • Effect of separation (par.5)
1. If no longer used in the industry – chattel
2. Temporary separation but still needed in the industry – real property • Machinery placed by tenant – personal
• Tenant promised to give the machinery – real to the owner • Tenant acted as agent of owner – real
• Cannot be real property if placed by person having TEMPORARY RIGHT only • Electric poles/towers – personal properties, because it does not fall in par.1,3, & 5.
• Par.6
-1. Animals inside – real property
2. Same with animals temporarily outside but with intent to return • Par.7 – Fertilizers should be actually used in land
• Par.8 – mines, slag dumps, etc • Par.9 – floating house vs. vessel
• Par.10 – pertaining to “rights” – real property by analogy ARTICLE 416 - Movables
• Growing crops – personal property for purposes of chattel mortgage law and attachment
• Test of what may be stole – it is of value and may be appropriated by a person other than the owner
•
TEST: whether movable or immovable1. Property is capable of being carried from place to place (Test by DESCRIPTION) 2. Change in location can be made without injuring real property to which it is attached 3. Object is not enumerated in ART 415 (Test by EXCLUSION)
• Test by EXCLUSION is superior to the test by description. • Patent, copyright, right to invention – personal property ARTICLE 417
• Obligations and actions over movables and demandable sums • Shares of stocks
• If object is illegal – not considered demandable so no right exists
• If the only property of a corporation is real property – shares of stock is still personal property • MONEY, whether legal tender or merchandise – personal property
ARTICLE 418
• Consumable – by nature, cannot be used without being consumed • Non-consumable – any other property
• Fungible – if agreed that the equivalent be returned • Non-fungible – identical thing be returned
ARTICLE 419 – Public dominion or private ownership • Public capacity
• Private capacity ARTICLE 420
• Public Dominion – ownership by the State, it has control and administration • OR ownership by the public in general
Three Kinds:
1. Public use – may be used by anybody
2. Public service – may be used only by duly authorized persons 3. Development of national wealth – e.g. natural resources • Canals constructed by the State – Public Domain
• Canals constructed by private persons – private Characteristics of Properties of Public Dominion:
1. Outside the commerce of man 2. Cannot be acquired by prescription
3. Cannot be registered or subject of a Torrens title
4. Cannot be levied upon by execution, nor can they be attached 5. Generally, they can be used by everybody
6. Either real or personal property
• Registration of properties of Public domain does not confer ownership • Inclusion in title does not confer title
• Forest lands cannot be registered
• Right of public character cannot be transferred except through succession
• Allowing the use of canals by others – the owner losses the exclusive right to use the same • Agricultural land may be acquired by private persons
• Forest and mining lands may not be transferred but may be leased
• Public agricultural lands – alienable portions NOT classified as forest or mineral lands, may be acquired, if made available becoming patrimonial properties
• Proper licensee owns forest products obtained by other entities
• Classification and re-classification of Public lands – prerogative of the executive department • Government lands – includes public and patrimonial lands
• Public Land Act:
Land is alienable public land
Open, continuous, adverse possession
ARTICLE 421
• Patrimonial property – not devoted to public use, public service, or development of national wealth. • Owned by the State in its private capacity.
Examples:
1. Friar lands
2. San Lazaro Estate
3. Lands obtained in escheat proceedings 4. Municipal owned waterworks system
• Patrimonial properties may be acquired through prescription ARTICLE 422
• When not devoted to public use, public service or development of national wealth – patrimonial property
• Executive and legislative – authority to make SUCH declaration ARTICLE 423
For POLITICAL SUBDIVISIONS: 1. Public use
2. Patrimonial property
• A municipality is a juridical person capable of acquiring properties • National Government – Central Government
• Government of the Philippines - totality ARTICLE 424
• Properties of political subdivisions for Public service – patrimonial
• Patrimonial property – not ordinary private property, acquisition should NOT impair certain governmental activities
• Properties that came from the State – the Government controls the disposition of properties of political subdivisions
• Absence of proof that political subdivisions acquired the properties with their own funds – presume that it came from the State
Types of Properties of Political Subdivisions: 1. Acquired through their own funds
2. Those subject to the control and supervision of the State – held in trust by the State to them
• Properties of patrimonial in nature may be levied upon or attached ARTICLE 425
• Private properties – may be owned individually or collectively
• Possession since time immemorial – presumption that it never been part of public domain • Error in Torrens title which includes government properties – may only be questioned by the
government
• Payment of land tax is not an evidence of ownership if there is a Torrens title • Acquisition of land by aliens – prohibited (absolute)
ARTICLE 426 • Furnitures
• The article enumerates things not included in the term Furnitures • Money, credit, securities, stocks, jewelry, etc.
OWNERSHIP ARTICLE 427
OWNERSHIP – independent and general right of a person to control a thing particularly in his possession, enjoyment, disposition, and recovery, subject to NO restriction except:
1. Those imposed by State 2. By private persons
3. And without prejudice to the provisions of the law
• Leasehold relation is Not extinguished by the alienation or transfer of legal possession of the landholding
Kinds of Ownership
• Full ownership – includes all rights
• Naked ownership – Full ownership minus usufruct • Sole-ownership • Co-ownership ARTICLE 428 Rights of Owner: 1. Enjoy 2. Dispose 3. Recover
• Right to possess – right to hold a thing or enjoy a right
• Right to use – includes the right to exclude any person from the enjoyment and disposal thereof • Right to fruits- natural, industrial and civil
• Right to abuse – consume
• Right to dispose – donate, sell, pledge, mortgage
Seller need Not be the owner upon perfection of sale, but should be the owner at the time of delivery
• Right to recover – right to action against holder and possessor of the thing As Transferrable to heirs and assignees
• Right of Ownership is NOT absolute
Welfare of the people is the supreme law
Use of property should Not impair the rights of others • Limitations by the State:
Police power Eminent domain Taxation
Actions to RECOVER:
1. REPLEVIN - personal property
a. Coupled with a writ of replevin
b. Must show in his affidavit or of another person that the applicant is the owner c. Allege the cause of detention
d. That it is NOT in custodia legis
e. State the market value of the property f. Give a bond double the value of the property
• The court then orders the sheriff to take custody of the property For re-delivery:
• Within 5 days
a. Post counterbond double the value of the property b. Serve the plaintiff with the copy thereof
• To avail remedy of intervention of third party – action of property is necessary • Writ of replevin cannot be directed against a lawful possessor
• Replevin will not lie in properties in custodia legis
2. FORCIBLE ENTRY – deprived of possession through: F – Force
I – Intimidation S – Stealth T – Threat S – Strategy
• An action to recover physical or material possession • Prescription – 1 year
• Allegation of “unlawful possession” - sufficient
• One in possession of public land may file an action for forcible entry • Actual condition of the title to property and ownership is NOT material
• Court of First Instance (RTC) has concurrent jurisdiction if possession cannot be determined unless the issue of ownership is resolved
3. UNLAWFUL DETAINER – unlawful withholding after expiration or termination of right to hold possession • Squatter – should vacate upon demand, proper remedy is unlawful detainer
• Issue is physical or material possession
• Subsequent acquisition – will not bar the execution of judgment
• If issue on title or ownership is in question – action should be dismissed for lack of jurisdiction. Unless in case of appeal, parties agree that RTC will hear the case in its jurisdiction
• Prescription - 1 year, upon receipt of last demand to vacate • Squatter – settles without awful authority
1. One who settles in public land 2. Unlawful settler in private land
• Prescription – after ONE year upon termination of contract • Demand to vacate should be absolute and NOT conditional
• Action be brought after 5 days (building) or 15 days (land) after demand to vacate, unless accion publiciana is instituted
• Paying less rentals than stipulated – there is illegal possession
• Ownership of an alien is NOT a defense – ownership is immaterial in the action
• Unlawful detainer – possession was lawful in the beginning but became unlawful afterwards • Both Forcible Entry and Unlawful Detainer – actions in personam or quasi-in rem
• After 1 year prescribes – remedy is accion publiciana
• Guests, friends, and relatives – are privies to an action against a tenant • A new tenant may file the action after termination of contract of the old tenant • Lease “month-to-month” basis may be ejected
• Demand to vacate is essential – tenant retains possession
• Not essential – buyer, seller or any other person retains possession
• Writ of execution and demolition may be issued – if judgment in ejectment case is final • If decision is in favor of plaintiff – immediate execution, unless:
1. Appeal has been perfected 2. Defendant files sufficient bond
3. Defendant pay rents, damages and costs
• Supersedeas bond – for BACK RENTALS only, defendant should still pay periodic deposits • If decision is in favor of defendant – he shall continue possession (no execution)
• Mortgagee – cannot intervene in ejectment case involving possession only 4. ACCION PUBLICIANA – recovery of the better right to possess
• Plenary action in ordinary civil proceeding • Prescription – 10 years
• No automatic suspension if government wish to expropriate the property (distinguished from forcible entry and unlawful detainer)
Kinds of Accion Publiciana:
a. Deprivation not caused by FISTS
b. Action for forcible entry or unlawful detainer which has prescribed (more than 1 year) • RTC has jurisdiction
• If the action of forcible entry or unlawful detainer is decided upon- cannot institute accion publiciana
• Accion pauliana – action to rescind contracts in fraud of creditors
5. ACCION REIVINDICATORIA – recover ownership over real property • RTC has jurisdiction
• Title proceedings over public land – Bureau of Lands
if pending, RTC should dismiss for lack of course of action • Prescribes in 10 or 30 years
• 10 years – good faith and just title
• 30 years – does not require good faith or just title
• Recovery of title or possession of real estate – does NOT lapse by death • Action in personam – binding upon parties and privies thereto
• Decree of registration is not open to review or attack after lapse of one year – but reconveyance is still available if it has not yet passed to an innocent purchaser
• If already passed to an innocent purchaser – action is for damages only
• Both reivindication and detainer may be filed over the same land because it involves different issues
• Judgment is not binding against strangers. Even if declared owner, ejectment case should still be instituted against strangers in possession.
• Question of title may be raised any time even if the cause of action should constitute acts of ejectment (no need to wait for lapse of 1 year)
• Squatter – lack of cause of action for reconveyance • Implied trust – reconveyance prescribes in 10 years • Fraud – 4 years after discovery of fraud
• Declaration of ownership may include possession – if there are NO rights to be defined with respect to the possessor
If there is, owner should file a motion for execution of right to possess • Accion reivindicatoria does not exist if deprived by virtue of law
6. Writ of Injunction
• Not allowed when not in possession
• Possessor – presumed to have a better right Injunction, remedy for the following:
a. May present a motion after 10 days of institution of Forcible entry – court shall decide in 30 days b. During appeal of unlawful detainer – 10 days after perfection of appeal
c. Owner, still in possession, to prevent repeated intrusion d. Continued usurpation thru FISTS
e. Possession de jure for over a year even though NOT the owner • Decision denying injunction does NOT bar suit in ejectment 7. Writ of Possession
• Successful registrant under the Torrens System be put in possession • May be used by the rightful owner and not against him
• Implies delivery of possession
• Writ of demolition may also be issued • DOES NOT prescribe (laches will not lie) • May only be issued once
• Possessors after registration - remedy is accion interdictal and NOT possession ARTICLE 429
• May use force as may be reasonably necessary to prevent actual or threatened invasion or usurpation ARTICLE 430
• Owner may build walls, ditches, etc. – but without detriment to servitudes constituted thereon ARTICLE 431
• Use should NOT injure rights of third persons • Fundamental basis of police power
ARTICLE 432
• “state of necessity” Requisites:
1. Evil sought to be avoided actually exists 2. Injury feared is GREATER
3. No other practical and less harmful means to prevent it ARTICLE 433
• Disputable presumption of ownership Requisites
1. Actual possession 2. Claim of ownership
• Possessor in the concept of owner – presumption that he has just title • True owner has to resort to judicial process to prevent disturbance of peace ARTICLE 434
Requisites of action to recover: 1. Property must be identified
2. Reliance on the title of plaintiff and not on the weakness of the defendant’s claim • Definite description
• If both claims are WEAK – presumption of ownership is in the possessor ARTICLE 435
EMINENT DOMAIN:
1. Taking by competent authority 2. Observance of due process 3. Taking for public use
4. Payment of just compensation
• Public use – determination does NOT depend on the character of the entity or agency • Congress – may authorize to devote land in public use to another
• City is Not authorized – mere general authority is vested
• Just compensation – fair and full equivalent value of the loss sustained • JC = MV +(CD - CB)
• New concept of just compensation – based on “social value” • Determination of JC – judicial function
• Interest should be 6% per annum • Basis of JC:
Time of the taking
Institution of action (whichever is earlier)
• Not only reasonable amount (JC) but also reasonable time • JC = should not be higher than what the owner demands • Sentimental value – is NOT considered in JC
• Consequential Benefits (CB) – should be actual and appreciable • Expropriator is liable for the tenant’s eviction
• The claim for compensation may prescribe
• If Government does NOT pay – action may be brought against the Auditor General • Ownership is transferred only after payment of just compensation with proper interest
• If Expropriation grants full ownership – does not revert to original owner when property is no longer for public use
• If grant is conditional – it will revert
• Mere notice of expropriation, mere notice of condemnation proceedings – owner may still sell the land; except when government is in actual possession
• Small land – extraordinary expropriation not allowed • If sale is agreed – no need for expropriation
• Expropriation may impair contracts except when the Government is a party to the contract • Government entered a lease to own contract – cannot institute expropriation, but enforcement of
contract if owner refuses to sell
• Expropriation presupposes ownership – cannot question ownership of owner while at the same time institute expropriation proceedings
• Provisional value should be deposited – to possess property
• Urban Land Reform – first refusal to tenants residing for 10 years in leased land within ULR except apartment dwellers
ARTICLE 436
• Seizure through police power – no compensation • Nuisance can be abated
• Public, private nuisance • Nuisance per se, per accidens ARTICLE 437
• Owner of land – owner of its surface and everything under it
• He may construct any works without detriment to servitudes and subject to special laws and ordinances
• He cannot complain to reasonable requirements of aerial navigation Ownership is subject to:
1. Servitudes and easements 2. Special laws
3. Ordinances
4. Reasonable requirements of aerial navigation
5. Prevent injury to rights of third persons (principle of human relations) • Restricted by reasonable requirements of underground shelter
• Mines discovered underneath private land – public domain by virtue of Regalian Doctrine (Mining Law) ARTICLE 438
• Discovery in property of owner = 100% to owner • Land of another by chance = 50-50, owner and finder • If finder is trespasser = no share
• If land owner is married – conjugal
• If interest to science and arts – State may acquire paying just price • Usufructuary is a stranger = no share
• Usufructuary is the finder = 50%
• Laborers employed to find treasure – no share but will be paid wages • Contract may stipulate actual share of finders in treasure hunt ARTICLE 439
Hidden Treasure:
1. Hidden and unknown deposit
2. Consists of money, jewelry, and other precious objects 3. Lawful ownership does not appear
• If deliberately hidden by owner – NOT “hidden treasure” if he can prove ownership • Death of owner of treasure – will go to the heirs
ACCESSION ARTICLE 440
• Accession – right of the owner to everything which is: 1. Produced thereby
2. Which is incorporated or attached thereto a. Natural
b. Artificial MODES of Acquiring Ownership
O – Occupation L – Law
D – Donation T – Tradition I – Intellectual creation P – Prescription S - Succession ARTICLE 441 ARTICLE 442 Natural Fruits
• Spontaneous products of the soil • The young
• Other products of animals • Real property
Industrial Fruits
• Produced by lands through cultivation or labor • Real property
Civil Fruits • Rents
• Price of leases of land and property • Amount of perpetual or life annuities • Other similar income
• Personal property ***
• Young – no distinction, if either brought by scientific means or not, natural fruit If leased onerously – owned by lessee
If commodatum – owned by owner ARTICLE 443
If good faith – possessor owns the fruits If possessor is in bad faith –
If fruits already gathered – owner should pay for production, gathering, preservation if he claims the fruits
If still attached – apply Art. 449 ARTICLE 444
• Annual and perennial crops – natural fruits • Civil fruits accrue daily and can be pro-rated ARTICLE 445
• Exception: Art 120, Family Code – owner is one with greater value in share (either conjugal or paraphernal)
ARTICLE 446
• Presumption as to improvements – owned by landowner and made at his expense ARTICLE 447 – 456
Good faith / Bad faith Indemnity:
1. Payment of necessary expenses 2. useful expenses
3. Luxurious expenses
Landowner Owner of materials Builder / Planter / Sower Article 447
Good faith (Landowner)
• Pay the value of
materials • without injury to the work Right to remove constructed
Bad faith
(Landowner) • materials plus damagesPay the value of • remove, plus right to be Absolute right to indemnified for damages • Measure of
damages:
1. Value of the loss suffered
2. Profits failed to realize
Article 448 • Choice = landowner, because of the principle of accession
• “Earlier right” or “older right” Good faith (Both Landowner and Builder/Planter/Sow er) • May appropriate as his own after payment of proper indemnity
• No right of removal unless builder fails to pay upon choice of compulsory sale
• If the landowner did not choose to appropriate and the price of land is considerable more than that of the buildings or trees – pay REASONABLE RENT, terms fixed by parties, in case of disagreement, the courts shall fix the term of the lease.
• May pay the price of land, provided that value of the land is NOT considerably more than that of the building or trees If builder fails to pay:
1. May demand reasonable rent 2. Demolish the house 3. Sell the property at public auction (ordinary money debt)
Landowner Owner of materials Builder / Planter / Sower Article 449
Bad faith (Builder/Planter/Sow
er)
• May demand
demolition at the expense of the builder, planter or sower plus damages • Get the house
without indemnity plus damages
• Losses what is built, planted, or sowed without right to
indemnity
Article 450 – 451 • May compel the builder, planter to pay the price of land, and sower, proper rent plus damages
Article 452 • Entitled to
reimbursement for the necessary expenses for the preservation of the land
Article 453 • If both are bad faith = GOOD FAITH Article 454
Bad faith (Landowner)
• Pay the value of the
materials plus damages • remove plus right to be Absolute right to indemnified for damages Article 455 Bad faith (Owner of the materials)
• Losses all rights to be indemnified. He can even be liable for consequential damages • Good faith (Owner of the materials) • Subsidiarily liable in case of insolvency of the builder, and if he makes use of the materials
• Entitled to
He does NOT make use of the materials if:
• If he compels the builder to purchase the land • Or demolish the construction ARTICLE 457 Accession Natural 1. Alluvium 2. Avulsion
3. Change in the course of rivers 4. Formation of islands
• Alluvium – gradual change Rivers only
Soil cannot be identified
• Accretion on bank of a lake – owned by the owners of the estate • Same on islands
• On sea – public domain
• Easement – accretion owned by riparian owner
• Alluvium – NOT protected by registration or Torrens title • Registration – needed to protect alluvium from prescription • Alluvium – automatic ownership but NOT automatic registration ARTICLE 458
1.
Ponds No accretion if:* By natural decrease
2. Lagoons * Extraordinary floods
This is not alluvium because there is NO alluvial deposit
ARTICLE 459 Avulsion
Known portion of the land transfers to another estate Considerable quantity of earth
Action of water
1. Sudden or abrupt change 2. Identifiable or verifiable
3. Owned by owner of the land it was detached from • Removal should be within 2 years
ARTICLE 460
• Trees uprooted – should be claimed in 6 months
• If claimed – owner should pay expenses in gathering and putting them in a safe place
• After claim of ownership but no actual claim – action to recover will prescribe in 4 years (ordinary prescription)
ARTICLE 461
Change in the course of waters
Owned by landowners of land now occupied by the water
Owners of land adjoining the land shall have the right to acquire it. Value shall not exceed the value of area occupied by the new land (are lost).
• “In proportion” – if multiple owners
• If one owner – the whole thing is owned by landowners of lands now occupied by the new river bed Requisites:
1. Change must be sudden to identify old river bed 2. Change is permanent
3. Natural change
4. Definite abandonment of government 5. River must continue to exist
• If river dries up – public domain ARTICLE 462
• River (new bed) in private estate – public domain
• If the course went back to original bed – land owned by landowners not of public domain (new bed) ARTICLE 463
• River divides into branches
• Isolation / Separation – land owned by riparian owner ARTICLE 464
Islands on: 1. Seas
2. Lakes owned by the State
3. Navigable / floating rivers ARTICLE 465
Islands formed on non-navigable rivers: • Owner of nearer margin – sole owner • If equidistant – divided longitudinally in half ARTICLE 466
Accession for Movable Property Types:
1. Adjunction
2. Mixture (commixtion or confusion) 3. Specification
• Adjunction -two things of different owners join and form a single object Kinds: 1. Inclusion 2. Soldering 3. Writing 4. Painting 5. Weaving ARTICLE 467 • Principal
• Accessory – been united as ornament or for its use or perfection ARTICLE 468
Principal-Accessory Test
1. That to which the other has been united as an ornament, or for its use, or perfection 2. Greater VALLUE
3. Greater VOLUME
4. Greater MERITS (combined consideration for utility and volume) • Motor vehicle – engine is principal
ARTICLE 469
• Separation may be demanded – if no injury
• If accessory is MORE precious – separation may be demanded even injury is caused to principal ARTICLE 470
• Bad faith (owner of accessory) – losses the thing incorporated • Bad faith (owner of principal) – accessory may choose:
To pay for the value plus damages
• Both bad faith – good faith ARTICLE 471
Material employed without consent of owner: 1. Delivery of thing in equal kind and value 2. Pay the price (according to expert appraisal)
Sentimental value must be considered Material may be principal or accessory ARTICLE 472
ARTICLE 473
•
Mixture – respective identities of the component elements are lost By chance Mixture owned in proportion
Not separable without injury to the part belonging
Kinds: to him.
1. Commixtion – solid 2. Confusion – liquid
• If good faith – co-ownership
• If bad faith – losses material plus damages
• If things mixed are of same kind, quantity and quality – divide into equal parts ARTICLE 474
• Specification – new form to another’s material thru the application of LABOR • Paint for painting – specification (paint of another)
• Board, canvass, metal, stone, paper – accessory, therefore it is “Adjunction”. • Worker in GOOD FAITH:
1. Appropriate the new thing 2. Pay for the materials
• But if the materials is more valuable than the new thing:
1. Owner of the materials gets the new thing but pays for the work 2. Or demand indemnity for the material
• Worker in BAD FAITH:
1. May appropriate as his own without paying labor 2. Or demand indemnity for materials plus damages Adjunction:
1. 2 things
2. Accessory follows principal 3. Things joined retain their nature Mixture:
1. 2 things
2. Co-ownership results 3. Lose their respective nature Specification:
1. 1 thing but form is changes 2. Accessory follows principal
3. New object retains the nature of original object ARTICLE 475
• Sentimental value shall be appreciated ARTICLE 476 – Quieting of Title
A cloud exist:
1. Of an instrument
2. Apparently valid or effective
3. But in truth is INVALID, or ineffective 4. And may be prejudicial to the title
• Nature of action – in personam
• To authorize an action – determination of the part of the defendant to create cloud is not merely speculative
ARTICLE 477 Plaintiff must have:
1. Legal ownership 2. Beneficial ownership ARTICLE 478
Action may be used:
1. When contract has ended
2. Action is barred by extinctive prescription ARTICLE 479
• Plaintiff should return all benefits he received from defendant if he wins ARTICLE 480
• Quieting of title should not be in conflict with the Civil Code ARTICLE 481
• Lex situs Action will not prosper:
1. Boundaries
2. Proper interpretation of contract 3. Plaintiff has no title
4. Action has prescribed 5. Contract is void on its face 6. Mere claim or assertion ARTICLE 482
• Walls in danger of falling – oblige demolition, or may be demolished by administrative authorities at his expense
• Complainant:
1. Property adjacent; or 2. Must pass the vicinity ARTICLE 483
---CO-OWNERSHIP ARTICLE 484
• Co-ownership – state where an individual thing or right belongs to two or more persons Two or more persons having an ideal part of a thing which is not physically divided
• There is NO co-ownership when the different portions owned by different people are already concretely determined and identifiable, even if not yet technically described
What governs co-ownership: 1. Contracts
2. Special legal provision
3. Provisions of the Title on co-ownership TENANCY IN COMMON
• Ideal division
• May dispose ideal/undivided share • Co-owner dies – share goes to heir
• If co-owner is minor – others will not benefit, prescription will run against other co-owners JOINT TENANCY
• NO ideal division
• May NOT dispose of share
• If co-owner dies - by accretion to other joint tenants
• If co-owner is a minor – will benefit other co-owners, prescription will not run Characteristics of co-ownership:
1. More than one subject or owner
3. Must respect each other in the common use, enjoyment or preservation of the physical whole 4. Each co-owner holds almost absolute control of his ideal share
5. NO juridical personality
6. A co-owner is a trustee for the others ARTICLE 485
• Share in the BENEFITS and CHARGES in proportion to the interest of each • Contrary stipulation is VOID
• Proportional share to the accretion or alluvium ARTICLE 486
Right to use:
• Interest of the co-ownership must not be injured • Co-owners must not be prevented from using it ARTICLE 487
• A co-owner may defend in court the interest of the co-ownership • Case instituted by one is in behalf of all
“Ejectment” includes:
1. forcible entry accion interdictal 2. unlawful detainer 3. accion publiciana 4. accion reivindicatoria 5. quieting of title 6. replevin ARTICLE 488
• May compel others to share the necessary expenses for preservation • Renunciation – instead of reimbursement
His undivided share as may be equivalent to his share of expenses and taxes • Does not necessarily renounce his entire share
ARTICLE 489 Consent of…
ONE – repairs, ejectment action ALL – alterations, acts of ownership
FINANCIAL MAJORITY – all others, useful improvements, luxurious embellishments, administration, better enjoyment
• Unjustified opposition resulting to damage – be borne by the one who opposed • Notification is required if practicable
ARTICLE 490
• Perpendicular co-ownership Proportionate contribution for:
1. main walls 2. party walls 3. roof
4. other things used in common
• Floor owner bears expenses of his floor
• Stairs be maintained, Storey by storey, by the users Condominium Act
•
Condominium – interest in real property consisting of a separable interest in a unit in a residential, industrial, or commercial building and an undivided interest in common directly or indirectly, in the land on which it is located and in other common areas in the building•
Unit – part of a condominium for independent use or ownership•
Project –entire parcel of real property•
Common areas – entire project except all units separately granted, held or reserved•
Undivided interest /Common areas – held by the condominium corporation• All incorporators of a condominium corporation must be an owner of a condo unit ARTICLE 491
Alteration is a change…
1. Which is more or less permanent 2. Changes the use of the thing
3. Prejudice the condition of the thing or its enjoyment by others Effect of illegal alteration:
1. Co-owner may lose what he spent 2. Demolition may be compelled
3. BUT whatever benefits shall belong to the co-ownership 4. Co-owners will be entitled to proportional share of rent ARTICLE 492
• Lease (one year or less) – act of administration • If more than a year – alteration
• Registered lease - alteration ARTICLE 493
• If a co-owner sells the entire common property, the sale is valid only insofar as his share is concerned, unless the sale is consented by the other co-owners.
ARTICLE 494
Co-owner may not demand partition:
1. If by agreement for a certain period of time (10 years) 2. Prohibited by donor or testator (20 years)
3. Prohibited by law
4. Physical partition would render the property unserviceable 5. Legal nature does not allow partition
• No prescription in favor of a co-owner if he expressly or impliedly recognizes the co-ownership ARTICLE 495
• Co-owners cannot demand physical partition of an indivisible object • But co-ownership may still be terminated
ARTICLE 496 Partition:
1. Extrajudicial, Judicial
2. Provisional or Temporary, Permanent
3. Partition of real properly, Partition of personal property
4.
Partition in a judicial decree, Partition duly registered in the Registry of Property, Partition in a public instrument, Partition in a private instrument, Oral partitionFactors considered in Partition 1. Preference in the partition 2. Comparative value
3. Lots and parcels which will be most advantageous and equitable, having due regard to the improvements, situation, and quality of the different parts of the land
•
Partition made by commissioners will not be effective until approved by the court•
Commissioners - 3 competent and disinterested persons will be assigned by the court if the parties cannot agree upon the partitionARTICLE 497
Rights if creditors with respect to partition:
•
Creditor X may participate•
If he did not participate, he may not impugn a partition already executed unless – X was defraudedARTICLE 498 Legal Partition
• First, give the whole to one co-owner who will now be required to indemnify the rest • If this is not agreed upon, there must be a sale (public auction or private sale) ARTICLE 499
• Third persons’ rights are protected in partition. ARTICLE 500
Effects of Partition:
1. Mutual accounting of benefits received 2. Mutual reimbursement for expenses
3. Indemnity for damages in case of negligence or fraud
4. Reciprocal warranty for: defects of title (eviction) and quality (hidden defects) 5. Co-owner has exclusive possession of the part allotted to him
6.
Partition confers upon each the exclusive title over his respective share ARTICLE 501• Each co-owner is liable, after partition, for the defects of title and quality of the portion How co-ownership is extinguished:
1. Judicial partition 2. Extrajudicial partition
3. By prescription, one co-owner has acquired the property through adverse possession and repudiating the co-ownership of the other
4. Stranger acquires by prescription of the thing owned in common 5. Merger in one co-owner
6. Loss or destruction
7.
Expropriation (indemnity will be distributed accordingly) POSSESSION • Holding of a thing or the enjoyment of a rightARTICLE 523
• Right TO possession – incident to ownership
• Right OF possession – an independent right, independent of ownership Degrees of Possession
1. Mere holding, without any right
2. Possession with a juridical title, but not that of an owner
3. Possession with a just title, but not from a true owner – Real possessory right
4. Possession with a title of dominium – just title from the true owner Requisites or Elements of Possession
1. Holding or control of the thing or right – may be actual or constructive
2. Deliberate intention to possess (animus possidendi)
3. Possession by virtue of one’s own right • Holding or detention may be actual or constructive
• Constructive possession – essential that the property be NOT in the adverse possession of another Classes of Possession
1. One’s own name or another
2. Concept of owner or holder
3. Good faith or bad faith
• Ownership is different from possession. A judgment fro ownership does not necessarily include possession as an incident. But where the actual possessor has no valid right over the property, the surrender of possession should be included in the judgment.
• Possession is NOT a definite proof of ownership
• Possession – sufficient that the petitioner was able to subject the property to the action of his will
•
Ownership – thing is completely subject to his will in a manner NOT prohibited by law and inconsistentwith the rights of others ARTICLE 524
Possession may be exercised:
1. one’s own name
2. name of another Possession in another’s name
2. Necessary – mother possesses for unborn child
3. Unauthorized – only if subsequently authorized but without prejudice no negotiorum gestio • Visits to object – does NOT necessarily show possession
• Ownership of rented land:
Lessor – thru tenant, in the concept of owner Tenant – concept of holder
ARTICLE 525 Possession in…
1. Concept of owner – whether in good or bad faith, claims to be and acts as if the owner Possession that may ripen into ownership, also known as adverse possession
2. Concept of a holder – recognizes another to be the owner Examples of Possession in concept of a holder
1. tenant
2. usufructuary
3. depositary
4. bailee in commodatum
• Possession is of the property concerned. The possession of the rights are possessed by them in the concept of an owner.
ARTICLE 526
• Fraud – cannot be presumed. It must be established by clear and convincing evidence. Good faith
• Good faith – one who is not aware that there exists in his title or mode of acquisition any flaw which invalidates it
• Good faith is a question of intention. It is intangible and evidenced by external signs. • The belief must be reasonable, not a capricious one.
• While the possessor in good faith is one who believes he is the owner, the possessor in the concept of an owner is one who acts as if he is the owner
Bad faith
• If circumstances exist that require a prudent man to investigate, he will be in bad faith if he does not investigate
• Bad faith or malice implies a conscious and intentional design to do a wrongful act for a dishonest purpose or moral obliquity. It is different from he negative idea of negligence.
• Malice or bad faith contemplates a state of mind affirmatively operating with futive design or ill will. It means breach of a known duty thru some motive. Bad faith partakes of the nature of fraud.
• Fails to act with the diligence of a prudent man Mistake on a Doubtful or Difficult Question of Law
• May be the basis of good faith provided that such ignorance is not gross
• Error in the application of the law and the interpretation of a doubtful doctrine can still make the person a possessor in good faith
• But mistake or ignorance of a law by itself cannot be the basis of good faith, the law must be one that is doubtful or difficult
Bad faith is personal
Just because a person is in bad faith does not necessarily mean that his successors-in-interest are also in bad faith.
ARTICLE 527
• Presumption is always given because every person should be presumed honest until the contrary is proved
• If no evidence is presented proving bad faith, the presumption of good faith remains ARTICLE 528
When Good faith is converted to Bad faith
• From the moment the facts exist of knowledge of the flaw
• It does not matter whether the facts were cause by him or another When Bad faith begins
Existence may begin either from the receipt of judicial summons or even before such time such as a letter from the true owner
DBP vs CA
When a contract of sale is void, the possessor is entitled to the fruits during the time the property was held in good faith
Good faith ceases when action to recover possession is filed against him and he is served summons therefor ARTICLE 529
Presumptions
1. Good faith
2. Continuity of character of possession – same character in which it was acquired until otherwise proved
3. Non-interruption of possession – transmission of possession of hereditary property 4. Presumption of Just Title – of the possessor in the concept of an owner
5. Non-interruption of possession of property unjustly lost but legally recovered 6. Possession during intervening period
7. Possession of movables with real property 8. Exclusive possession of common property ARTICLE 530
•
What may be possessed: only those things which are susceptible of being appropriated•
Res Nullius: may be possessed and acquired by occupation but cannot be acquired by prescription. ARTICLE 531Material occupation Exercise of a right Subjection to our will
Proper acts and legal formalities / constructive possession How possession is acquired
1. Material occupation – detention of thing, also includes constitutom possessorium or traditio brevi manu
2. Subjection to our will – includes traditio longa manu and traditio simbolica
3. Constructive possession Essential Requirements
1. corpus – detention of thing
2. animus – intent to possess ARTICLE 532
Acquisition of possession (from the viewpoint of who possesses)
1. personal
2. thru authorized persons
3. unauthorized persons – but should be subsequently ratified
Essential Requisites
1. personal
• intent to possess • capacity to possess
• object capable of being possessed
2. authorized
• intent to possess for principal • authority and capacity to possess
• principal has capacity and intent to possess
3. unauthorized
• intent to possess for another • capacity of principal to possess • ratification by principal
But if the stranger had possessed it in his own name, he has possession and not the principal. ARTICLE 533
• Possession of the deceased should be added to the possession of the heir • Acquisition of possession thru succession mortis causa
Time of Acquisition
• In the computation of time necessary for prescription, the present possessor may complete the period for prescription by tacking his possession to that of his grantor pr predecessor-in-interest.
• Retroactive effect of the acceptance
If heir refuses or incapacitated to inherit – deemed never to have possessed the same Sale – needs delivery
Succession-by the operation of law, direct transmittal of possession ARTICLE 534
• If the father or decedent was in bad faith, it does not necessarily mean that the son was also in bad faith. The son is presumed to be in good faith. However, since the father was in bad faith, the consequences of the good faith of the son should be counted only from the time of the decedent’s death.
• 3 years possession in bad faith should be equivalent to 1 year possession in good faith ARTICLE 535
Persons referred
1. unemancipated minors 2. insane
3. prodigal or spendthrift 4. those under civil interdiction 5. deaf-mutes
• in general, those laboring under restrictions on capacity to act Nature of Possession
• In acquisition of possession, only those matters where they have capacity to act such as physical seizure of res nullius and donation of personal property simultaneously delivered to them
• And NOT possession where juridical acts are imperative like the possession of land the ownership of which he desires to test in court, in this case, intervention of the legal representatives or guardians is needed
Acquisition by prescription
• May acquire property or rights either personally, or thru parents, guardians, or legal representatives ARTICLE 536
Possession cannot be acquired:
thru force or intimidation – as long as there is a possessor who objects thereto
1. thru mere tolerance – mere inaction or failure to bring an action is NOT tolerance
2. thru clandestine, secret possession – possession without knowledge, or stealth, not open or public. How to recover possession
Should not be taken into his own hands. First, should request the usurper to give up the thing. If he refuses, invoke the aid of the competent court. Otherwise, the owner can be made the defendant in a forcible entry case.
ARTICLE 537
• Possession by mere tolerance, no matter how long continued, does not start the running of the period of prescription
• A squatter’s possession, when there is no violence, is by mere tolerance Clandestine possession
• If secret to many, but know to the owner, possession is affected
• There is a presumption that when possession is clandestine, it is also unknown to the owner Possession by force or violence
• Force may be proved expressly or by implication
• The act of entering into the premises and excluding the lawful possessor therefrom necessarily implies the exertion of force over the property
• The force may be:
1. actual or merely threatened
2. done by the possessor himself or by his agent 3. done against the owner or any other possessor
4. done to oust the possessor or prevent him from getting back the premises Meaning of acts… do not affect possession
1. No legal possession – the intruder does not acquire any right to possession 2. The legal possessor, even if ousted, is still the possessor and therefore:
• Still entitled to the benefits of prescription • Entitled to the fruits
• And still entitled as possessor for all purposes favorable to him 3. The intruder cannot acquire the property by prescription
ARTICLE 538
Title – either a right or the document evidencing the right
Applies to preference in possession whether personal or real property
• It also applies whether the possession was longer or shorter than one year
• Co-possessors of a parcel of land hat is mortgaged must be made parties to the foreclosure proceedings, otherwise they cannot be deprived of possession of that portion of the land actually possessed by them
General Rule Regarding Possession as a Fact
Possession as a fact cannot be recognized at the same time in two different personalities. Except:
• Co-possessors
• Possession in different concepts or degrees Rules in case of conflict
1. present possessor
2. if both are present, the one longer in possession
3. if both began possession at the same time, the one who presents a title
4. if both present a title, the Court will decide. Meanwhile, the thing will be judicially deposited. Preference in Ownership or Double Sale
Movable – first who possessed in good faith Immovable:
1. first registered in good faith
2. no registration, first possessor in good faith 3. no possession, the one with the oldest title ARTICLE 539
• An adverse possession of property by another is not an encumbrance in law, and does not contradict the condition that the property be free from encumbrance
• Adverse possession is not a lien for a lien signifies a security for a claim Specific Rights
• Reasons for protection of possession:
1. it is similar to ownership, and as a matter of fact it modifies ownership
2. gives rise to presumption that the possessor is the owner
• Every possessor is protected under Art. 539, whether in the concept of an owner or holder
• The doctrine of exhaustion of administrative remedies is not applicable to a party who claims the disputed land as his own private land
• A squatter has no possessory right against the owner of the land because his occupancy of the land is merely tolerated by the owner
• A writ of execution and order of demolition is not appealable where there is no allegation that it has varied the tenor of the judgment
Legal means of restoration to possession • Reasons for legal means:
1. to prevent spoliation or a disregard of public order
2. to prevent deprivation of property without due process of law
3. to prevent a person from taking the law into his own hands
• The owner should go to court, and not eject the unlawful possessor by force
• A tenant illegally forced out by the owner-landlord may institute an action for forcible entry even if he had not been paying rent regularly
• Injunction is generally not the proper remedy to recover possession, particularly when there are conflicting claims of ownership
• A final judgment in an unlawful detainer case may be executed even if there is still pending accion reivindicatoria, for two actions can co-exist
• A mere trespasser, even if ejected, has no right to institute an action of forcible entry Writ of Preliminary Mandatory Injunction
• Injunction cannot substitute for the other, actions to recover possession. This is because in the
meantime, the possessor has in his favor, the presumption of rightful possession, till the case is finally decided. Exception: very clear case of usurpation.
Requisites for the Issuance
1. in forcible entry cases in the original court – file within 10 days from the time the complaint is filed
2. in unlawful detainer cases in RTC and CA – file within 10 days from the time the appeal is perfected only if:
• lessee’s appeal is frivolous or dilatory • lessee’s appeal is prima facie meritorious
• even if the forcible entry is filed eleven months from entry, the remedy may still be availed of. Note: prescription of forcible entry is 1 year
• The writ of preliminary injunction cannot be granted without notice and hearing ARTICLE 540
Possession in the concept of owner
• Possessor in concept of an owner may eventually become the owner by prescription
• A possessor in the concept of holder cannot acquire property by acquisitive prescription. For prescription to set in, the possession must be adverse, public, and to the exclusion of all. Possession in the concept of holder
1. Lessees 2. Trustees 3. Antichretic creditors 4. Agents 5. Attorneys 6. Depositaries
7. Co-owners – unless the co-ownership is clearly repudiated by unequivocal acts communicated to the other co-owners
• Tax declarations and receipts are not conclusive evidence of ownership but when coupled with proof of actual possession, tax declarations and receipts are strong evidence of ownership.
ARTICLE 541
Requirements of presumption of a just title:
1. Must be in possession (actual or constructive)
2. The possession must be in the concept of owner
• Actual possession of the property under claim of ownership raises the disputable presumption of ownership. The true owner must resort to judicial process fro the recovery of the property. • The article can apply to both real and personal property
Reasons for presumption:
1. Presumption that one is in good faith
2. Inconvenience of carrying proofs of ownership around “Just title” in possession
1. It is presumed
2. Just title means true and valid title sufficient to transfer ownership Three kinds of Titles
1. True and Valid Title – there was a mode of transferring ownership and the grantor was the owner
2. Colorable Title – although there was a mode of transferring ownership, something is wrong because the grantor is not the owner
•
Titulo Colorado is what is meant by just title in the law of prescription • Ordinary prescription needs good faith and just title• Extraordinary prescription does not need either good faith or just title • In case of real properties, prescription is 10 and 30 years respectively
3. Putative Title – although a person believes himself to be the owner, he nonetheless is not, because there was no mode of acquiring ownership
• Adverse possession is needed only to acquire something by prescription. But there is no need for prescription if you are already the owner.
• A person who is not in fact in possession cannot acquire a prescriptive right to the land by the mere assertion of a right therein
ARTICLE 542
• By analogy, if my possession of the house is in the concept of owner, my possession of the furniture is also presumed to be in the concept of owner. Therefore, my just title to both the house and furniture is presumed.
• By “real property” and “movables” we mean only real or personal things, NOT rights. Applicability of the Article
2. Whether the possession be in one’s name or another
3. Whether the possession be in the concept of owner or holder
ARTICLE 543 Co-possession
• Exclusive possession – begins at the time of division
• Interruption in possession of PART of the thing – only limited to that part thereof. Also, there is a proportionate losing in the area possessed.
Rules in civil interruption
1. Civil interruption is produced by judicial summons to the possessor
2. Judicial summons shall be deemed not to have been issued, and shall not give rise to interruption: • If it should be void for lack of legal solemnities
• If the plaintiff should desist from the complaint or should allow the proceedings to lapse • If the possessor should not be absolved from the complaint
In all these cases, the period of the interruption shall be counted FOR the prescription. ARTICLE 544
First paragraph
• Although because of the interruption his good faith ceases, the possessor can still retain the property until he has been fill reimbursed for all the necessary and useful expenses made by him on the property
• Fruits refer to the natural, industrial, and civil fruits, not to other things
• Legal interruption happens when a complaint is filed against him and he receives the proper judicial summons
• Before legal interruption, the fruits received are his own
• After the receipt of the summons, the right to get the fruits not yet gathered ceases
• Possessor is entitled to the fruits received before the conversion into BAD FAITH, for then, he would still be in good faith
• When a contract of sale is void, the possessor is entitled to keep the fruits during the period for which it held the property in good faith
Second paragraph
• If at the time of legal interruption, the crops are still growing, the rule on pending crops, not that on gathered crops, should apply
• If at the time of legal interruption, the crops have already been gathered, but are sold only after such interruption, the sale is immaterial, for the law only requires only a gathering or severance
Third paragraph
• If civil fruits accrue daily, Art. 545 does not apply • Actual receipt of the rents is immaterial
ARTICLE 545
• This article applies to PENDING fruits, natural or industrial. Also to crops already planted but not yet manifest.
•
The expenses for cultivation shall also be divided pro rata. Manresa: the better rule would be for the expenses to be borne in proportion to what each receives from the harvest• The charges (taxes, interest on mortgages) are also to be divided in proportion to the time o possession
ARTICLE 546
Necessary Expenses – they are those without which the thing would physically deteriorate or be lost; those made for the preservation of the thing
They do not increase the thing’s value; they merely prevent the things from becoming useless Examples
• Those incurred for cultivation, production, and upkeep • Necessary repairs for the house
NOT necessary expenses
• Those incurred for filling up with soil a vacant or deep lot • House constructed on land possessed by a stranger
• Land taxes – they are merely charges
• Unnecessary improvements on a parcel of land purchased at auction sale, made just to prevent redemption
• Expenses made by the possessor to enable him to use the property for his own purposes Rights of a possessor as to necessary expenses
• If in good faith 1. Refund
2. Retain premises till paid • If in bad faith – refund only
• If the owner sues the possessor for the recovery of the property, the possessor in good faith must file a counterclaim for the refund of necessary and useful expenses, otherwise the judgment in the case will be a BAR to a subsequent suit brought solely for the recovery of such expenses
Useful expenses – those that add value to the property Examples
• Those incurred for an irrigation system • Erection of a chapel
• Making artificial fishponds
• Construction of additional rooms in the house
• For clearing up the land formerly thickly covered with trees and shrubbery Rights of a possessor as to useful expenses
• If in good faith
1. Reimbursement – either the amount spent or for the increase in value 2. Retention – till paid
3. Removal – provided no substantial damage or injury caused to the principal, reducing its value. Unless, option 1 is exercised.
The possessor in good faith is entitle to both the fruits and expenses, hence they o not compensate each other.
• If in bad faith – is NOT entitled to any right regarding the useful expenses. The builder in bad faith loses whatever is built without payment of any indemnity.
Recovery cannot prosper: • Possessor in bad faith
• Failure to present a counterclaim Remarks
• Right of retention – no need to pay rent
• During the period of retention, additional improvements will not be entitled to refund because the builder already knew that he is not the owner (bad faith)
ARTICLE 547
Damage – substantial one that reduces the value of the property, thus a slight injury curable by an ordinary repair does not defeat the right of removal, but the repairs should be chargeable to the possessor
ARTICLE 548
Luxurious or Ornamental expenses – those which add value to the thing only for certain determinate persons in view of their particular whims. They are neither essential for preservation nor useful to everybody in general.
Examples
• Hand paintings on the wall of the house • Garage made of platinum
• Water fountains in gardens
Rights of a possessor as to luxurious expenses • If in good faith
No right of refund or retention but can remove if no substantial injury is cause. However, owner has option to allow:
1. Possessor to remove
2.
Or retain for himself by refunding the AMOUNT SPENTNo right of refund or retention but can remove if no substantial injury is cause. However, owner has option to allow:
1. Possessor to remove
2. Or retain for himself by refunding the VALUE it has at the time owner ENTERS into possession • The value of the refund if the possessor is in bad faith is less because depreciation has set in. ARTICLE 549
• Possessor in bad faith: The refund should not exceed the amount spent, otherwise he is placed in a better position than the possessor in good faith
Rights of a possessor regarding the fruits • If in good faith
1. Gathered or severed fruits are his own
2. Pending or ungathered fruits – pro-rating between possessor and owner of expenses, net harvest, and charges
• Bad faith
1. Gathered fruits – must return value of fruits already received as wells as the value of fruits which the owner or legitimate possessor could have received with due care or diligence, minus the necessary expenses
2. Pending or ungathered fruits – no rights at all, not even to expenses for cultivation
• The possessor in bad faith is duty bound to render an accounting of the fruits received or could have been received and must pay damages amounting to a reasonable rent for the term of his possession. • The rule as to the fruits does not apply to a defendant in a forcible entry case where the recoverable
damages are the reasonable compensation for the use and occupation of the premises – the fair rental value.
ARTICLE 550
Every possessor – refers to one in good or bad faith, concept of owner or holder, in one’s own name or another, and NOT to the owner or the person adjudged by the court to be lawfully entitled to possess. Litigation – refers to a court action
ARTICLE 551
Neither the possessor in good faith nor in bad faith is entitled to: • Improvements caused by NATURE
• Improvements caused by TIME ARTICLE 552
Rules applicable • Good faith
1. Before receipt of judicial summons – NOT liable 2. After judicial summons
• Loss or deterioration thru fortuitous event – NOT liable • Thru fraudulent intent or negligence - LIABLE
• Bad faith – LIABLE in any case ARTICLE 553
ARTICLE 554
--ARTICLE 555
Ways of Losing Possession
• Thru possessor’s voluntary will and intent 1. Abandonment
2. Assignment (onerous or gratuitous conveyance) • Against the possessor’s will
1. Possession of another for more than one year 2. Final judgment in favor of another
3. Expropriation
4. Prescription in favor of another
5. Recovery or reivindication by the legitimate owner • Because of the object
1. Destruction or total loss of the thing 2. Going out of commerce
Abandonment – voluntary renunciation of a thing Requisites:
• The abandoner must have been a possessor in the concept of owner • He must have the capacity to renounce or alienate
• No expectation to recover or intent to return or get back Additional Doctrines:
• A property owner cannot be held to have abandoned the same until at least he has some knowledge of the loss if its possession or the thing
• There is no real intention to abandon property when as in case of a shipwreck or a fire, things are thrown into the sea or upon the highway
• An owner may abandon possession merely, leaving ownership in force, but a mere possessor cannot abandon ownership since he never had the same
• If an owner has not lost possession because there has been no abandonment, it surely cannot be acquired by another thru prescription
• There is no abandonment if an owner merely tolerated another’s possession, nor if the latter was done by stealth or effected thru force and intimidation
• There is no abandonment of movables even if there is temporary ignorance of their whereabouts, so long as they remain under the control of the possessor (so long as another has not obtained control over them)
• In true abandonment, possession de facto and de jure are lost
• Abandonment which converts the thing into res nullius does not apply to land
Assignment – complete transmission of ownership rights to another person, onerously or gratuitously • at no time did the thing not have a possessor for possession merely changed hands or control • both possession de facto and de jure are lost, and no action will allow recovery
Possession of another
• If a person is not in possession for more than one year, he loses possession DE FACTO. Thus, he can no longer bring an action for forcible entry or unlawful detainer. Moreover, constructive possession is also lost possession. But may still institute an accion publiciana to recover possession de jure, possession as a legal right, or the real right of possession.
• If a person loses possession for more than 10 years, he loses possession de jure, or the real right of possession. Accion publiciana or reivindicatoria is still possible unless prescription has set in. Destruction, Loss, Withdrawal from commerce
• A thing is lost when it perishes, or goes out of commerce, or disappears in such a way that its existence is unknown, or it cannot be recovered.
• Partial loss in general results only in the loss of possession of the part lost • Art. 555 refer to both real and personal property except par. 4.
ARTICLE 556
• Possession is lost – when he has no idea at all about the whereabouts of the movable
• NOT lost – he more or less knows its general location, though he may not know its precise or definite location
ARTICLE 557
• If I leave my land and another possesses the same fro the required period, I have lost my possession and the ownership over the same, insofar as the occupier is concerned, but not insofar as other people. For strangers, relying on the Registry, are still privileged to consider me possessor and owner. ARTICLE 558
--ARTICLE 559
Possession of movable property acquired: • In bad faith – is never equivalent to title
• In good faith – as a general rule, equivalent to title. If the owner wants to get back, he must reimburse. • Exception: NOT equivalent to title when the owner had LOST it or UNLAWFULY DEPRIVED of it, UNLESS
the possessor had acquired it in good faith at a public sale. Note:
• The title is not that of an absolute owner but one that can be defeated only by the true owner who gives reimbursement
• Even if not the absolute owner yet, possession may eventually ripen into full ownership thru acquisitive prescription
• It is necessary that the possession be in the concept of owner an that the owner had not lost the property nor unlawfully deprived of it