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TABLE OF CONTENTS

I. DEFINITION OF PROPERTY ........................................................................................................................................ 3

A. Classification under the Civil Code ..................................................................................................................................................... 3
B. By Ownership ..................................................................................................................................................................................... 5
C. Other Classifications ........................................................................................................................................................................... 6
II. OWNERSHIP ............................................................................................................................................................ 8
A. Definition............................................................................................................................................................................................ 8
B. Bundle of Rights included in Ownership ............................................................................................................................................ 8
C. Other Specific Rights found in the Civil Code ..................................................................................................................................... 8
D. Limitations of Real Right of Ownership .............................................................................................................................................. 9
III. RIGHTS OF ACCESSION ......................................................................................................................................... 11
A. Concept ............................................................................................................................................................................................ 11
B. General Principles of Accession........................................................................................................................................................ 11
C. Obligations of Receiver of Fruits to Pay Expenses by 3rd person in producti on, gathering and preservation ................................. 12
D. Kinds of Accession ............................................................................................................................................................................ 12
1. Accession Discreta ....................................................................................................................................................................... 12
2. Accession Continua ..................................................................................................................................................................... 12
Over Immovables ............................................................................................................................................................................. 12
Over Movables ................................................................................................................................................................................. 16
IV. QUIETING OF TITLE .............................................................................................................................................. 17
A. Differences between Action to Quiet Title and Action: ................................................................................................................... 17
B. Prescription of Action to Quiet Title ................................................................................................................................................. 17
C. Who are Entitled to Bring Action? .................................................................................................................................................... 17
D. Notes ................................................................................................................................................................................................ 17
V. CO-OWNERSHIP .................................................................................................................................................... 18
A. Definition.......................................................................................................................................................................................... 18
B. Characteristics of co-ownership ....................................................................................................................................................... 18
C. Differences between Co-ownership and Joint Tenancy ................................................................................................................... 18
D. Differences between Co-ownership and Partnership ...................................................................................................................... 19
E. Source of Co-ownership ................................................................................................................................................................... 19
F. Rights of each co-owner as to the thing owned in common ............................................................................................................ 20
G. Implications of co-owners right over his ideal share ........................................................................................................................ 24
H. Rules on co-ownership not applicable to conjugal partnership of gains or absolute community of property ................................ 24
I. Special rules on co-ownership from provisions of Condominium Law (Act No. 4726)..................................................................... 24
J. Extinguishment of co-ownership...................................................................................................................................................... 25
VI. POSSESSION ......................................................................................................................................................... 29
A. Definition and Concept .................................................................................................................................................................... 29
B. Essential Requisites of Possession .................................................................................................................................................... 29
C. Degrees of Holding of Possession .................................................................................................................................................... 29
D. Cases of Possession .......................................................................................................................................................................... 29
E. What things or rights may be possessed .......................................................................................................................................... 29
F. What may not be possessed by private persons .............................................................................................................................. 29
G. Acquisition of Possession ................................................................................................................................................................. 30
H. Effects of Possession ........................................................................................................................................................................ 31
I. Effect of possession in the concept of an owner.............................................................................................................................. 31
J. Presumptions in favor of the possessor ........................................................................................................................................... 32
K. Possession may be lost by ................................................................................................................................................................ 32
VII. USUFRUCT .......................................................................................................................................................... 33
A. Concept ............................................................................................................................................................................................ 33
B. Historical considerations .................................................................................................................................................................. 33
C. Characteristics of Usufruct ............................................................................................................................................................... 33
D. Usufruct distinguished from lease; from servitude .......................................................................................................................... 33
E. Classes of Usufruct ........................................................................................................................................................................... 33
F. Rights of Usufruct ............................................................................................................................................................................. 34
G. Rights of Naked Owner .................................................................................................................................................................... 34
H. Obligations of Usufructuary ............................................................................................................................................................. 35
I. Special Cases of Usufruct ................................................................................................................................................................. 36
J. Extinguishment of Usufruct .............................................................................................................................................................. 36
VIII. EASEMENTS OR SERVITUDES .............................................................................................................................. 39
A. Definition.......................................................................................................................................................................................... 39
B. Essential feature of easements/real servitudes/praedial servitudes ............................................................................................... 39
C. Classification of Servitudes............................................................................................................................................................... 39
D. General rules relating to servitudes ................................................................................................................................................. 40
E. Modes of acquiring easements ........................................................................................................................................................ 40
F. Rights and obligations of owners of dominant and servient estates ............................................................................................... 40
G. Modes of extinguishment of easements .......................................................................................................................................... 41
H. Legal Easements ............................................................................................................................................................................... 41
BOOK III – DIFFERENT MODES OF ACQUIRING OWNERSHIP ......................................................................................... 43
Mode and Title Differentiated ................................................................................................................................................................... 43
Modes of Acquiring Ownership ................................................................................................................................................................. 43
Occupation................................................................................................................................................................................................. 44
Intellectual creation ................................................................................................................................................................................... 44
DONATION ............................................................................................................................................................... 45
Nature of donation .................................................................................................................................................................................... 45
Requisites of donation ............................................................................................................................................................................... 45
Kinds of donation ....................................................................................................................................................................................... 45
Who may not give or receive donations .................................................................................................................................................... 46
Who may give or receive donations .......................................................................................................................................................... 46
Acceptance of donation ............................................................................................................................................................................. 46
Form of donations ..................................................................................................................................................................................... 46
What may be donated ............................................................................................................................................................................... 46
Effect of donation ...................................................................................................................................................................................... 47
Revocation and Reduction of Donations ................................................................................................................................................... 48
LEASE....................................................................................................................................................................... 49
A. General characteristics of every lease .............................................................................................................................................. 49
B. Kinds of leases .................................................................................................................................................................................. 49
C. Lease of things ................................................................................................................................................................................. 50
I. DEFINITION OF PROPERTY
PROPERTY
 Is an economic concept, meaning a mass of things useful to human activity and which are necessary to life, for which reason
they may be organized and distributed in one way or another, but, always for the good of the main.
 In order that a thing may be considered as property:
o Utility – capacity to satisfy human wants
o Individuality or Substantivity – an autonomous or separate existence; materials composing a thing are not thing in
themselves.
o Appropriability or susceptibility to appropriation

A. Classification under the Civil Code

1. Immovable or Real Property

1. Lands, buildings, road and constructions of all kinds adhered to the soil.
2. Trees, plants, growing fruits while they are attached to the land or form an integral part of an immovable
3. Everything attached to an immovable in a fixed manner, in such a way that it cannot be removed without breaking the
material or deterioration of the object
4. Statues, reliefs, paintings or other objects for use or ornamentation, placed in buildings or on lands by the owner of the
immovable in such a manner that it reveals the intention to attach them permanently to the tenements
5. Machineries, receptacles, instruments and implements intended by the owner of the tenement for industry or works
which may be carried on in a building or on a piece of land, and which tends directly to meet the needs of the said industry
or works
6. Animal houses, pigeon houses, beehives, fish ponds or breeding places of similar nature, in case their owner has placed
them or preserves them with the intention to have them permanently attached to the land, and forming a permanent part
of it; the animals in these places are included;
7. Fertilizer actually used on a piece of land
8. Mines, quarries, and slag dumps, while the matter thereof forms part of the bed, and waters either running or stagnant
9. Docks and structures which, though floating are intended by their nature and object to remain at a fixed place on a river,
lake or coast
10. Contract for public works and servitudes and other real rights over immovable property

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

Art 415, Par 1 Land, buildings, road and constructions of all kinds
Art 415, Par 8 Mines, quarries and slag dumps and water either running or stagnant

b. By Incorporation

Art 415, Par 2 Trees, plants and growing fruits

Art 415, Par 3 Everything attached to an immovable
Art 415, Par 7 Fertilizers

c. By Destination

Art 415, Par 4 Statues, reliefs, paintings and other objects for use or ornamentation
Art 415, Par 5 Machines, receptacles, implements and instruments
Art 415, Par 6 Animal houses, pigeon-houses, beehives, fishponds and breeding places of similar nature
Art 415, Par 9 Docks and structures

d. By Analogy

Art 415, Par 10 Contracts for public works, servitudes and other real rights over immovable property

Movables or Personal Property

Art 416 The following are things deemed to be movable property:

(1) Those movables susceptible of appropriation which are not included in the preceding article
(2) RP which by any special provision of law is considered as personalty
(3) Forces of nature which are brought under the control by science
 (4) In general, all things which can be transported from place to place without impairment of the real property to which they are
fixed (c.f. Art 415 No 3)

Art 417 The following are also considered as personal property:

(1) Obligations and actions which have for their objects movables or demandable sums
(2) Shares of stock of agricultural, commercial and industrial entities, although they may have real estate

2. Importance and Significance of Classification

From point of view of:

i. Criminal Law
ii. Form of contracts involving movables or immovables
iii. Prescription
iv. Venue/Jurisdiction
v. Taxation
vi. Double Sales under Art 1544

Art 1544 If the same thing should have been sold to different vendees, the ownership shall be transferred to the person who may
have first taken possession thereof in good faith, if it should be IMMOVABLE PROPERTY. (applies to unregistered lands)

For registered lands: Should it be IMMOVABLE PROPERTY, the ownership shall belong to the person acquiring it who in good faith,
first recorded it in the Registry of Property.
Should there be no inscription, the ownership shall pertain to the person who in good faith was first in the possession; and, in the
absence thereof, to the person who presents the oldest title, provided there is good faith.

vii. Preference of Credits

viii. Causes of Action to Recover

3. Differences between Real Rights and Personal Rights

Point of comparison REAL RIGHTS PERSONAL RIGHTS

Definition Power belonging to a person over a
specific thing, without a passive subject
individually determined against whom
such right may be personally exercised
Elements 1) Subject and object connected by a
relation of ownership of the former
over the latter
2) A general obligation or duty of respect
for such relation, there being no
particular passive subject
3) Effective actions recognized by law to
protect such relation against anyone
who may want to disturb it
Also known as Jus in re
Number of persons involved in the juridical Active subject – 1
relation Passive subject - the rest of the world
without individual determination
Object of the juridical relation Generally a corporeal thing
By the manner in which the will of the Generally affects the thing directly
active subject affects the thing related to it
By the causes of creating the juridical By mode and title
relation
Power belonging to one person to demand
to another, as a definite passive subject,
the fulfillment of a prestation to give, to do
or not to do
1) Two subjects: active and passive
(bound to perform prestation
incumbent upon him by reason of a
juridical tie which binds him to the
active subject), who are determined
and specified
2) General obligation on the part of 3rd
persons to respect the relation
between the active and passive
subjects
3) Effective actions in favor of the active
subject against the passive subject for
the performance of the prestation by
the latter or so that the relation
between them may produce its
natural and juridical effects
Jus ad rem
Definite active subject
Definite passive subject
Intangible thing, i.e. the prestation of the
debtor
Indirectly through the prestation of the
debtor
By title alone
By the methods of extinguishment of the Extinguished by the loss or destruction of Not extinguished by the loss or destruction
juridical relation the thing of the thing
By the nature of the actions arising from Real actions against third persons Only personal actions against the definite
them debtor

Classification by Ownership

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

2. Public Dominion – owned by the state but enjoyed by all its citizens
cf. Patrimonial Property of State

Art 419 Property is either of public dominion or private ownership.

Art 420 The following are things of public dominion:

(1) Those intended for public use, such as roads, canals, rivers, torrents, ports and bridges, constructed by the State, banks, shores,
roadsteads and other of similar character
(2) Those which belong to the State, without being for public use, and are intended for some public service or for the development
of national wealth

Art 421 All other property of the State, which is not of the character stated in the preceding article, is patrimonial property

Art 422 Property of public dominion, when no longer intended for public use or public service, shall form part of the patrimonial
property of the State.

Art 424 Property for public use, in the provinces, cities, and municipalities, consists of the provincial roads, city streets, municipal streets,
the squares, fountains, public waters, promenades and public works for public service paid for by said provinces, cities, or municipalities.
All other property possessed by any of them is patrimonial, and shall be governed by this Code, without prejudice to the provisions of
special laws.

Effect and Significance of Classification of Property as Property of Public Dominion

a. Property is outside the commerce of man

b. Property cannot be the subject of acquisitive prescription
c. Property cannot be attached or levied upon in execution
d. Property cannot be burdened with a voluntary easement

3. Property of State
Art 420 Art 421 Art 422 see above

i. For public use

ii. For public service
iii. For development of national wealth

4. Property of Municipal Corporations

Art 424, Par 1 see above

i. For public use including public works for public service

5. Private Property

a. Patrimonial Property of State

Art 421 see above

b. Patrimonial Property of Municipal Corporations

Art 424, Par 2 see above

c. Private Property of Private Persons

Art 425 Property of private ownership, besides the patrimonial property of the State, provinces, cities and
municipalities, consists of all property belonging to private persons, either individually or collectively.
Other Classifications

1. By their physical existence

a. Corporeal – those which are manifest to the senses, which we may touch or take, which exist in space and have a body,
whether animate or inanimate
b. Incorporeal – personal prestations or acts or services productive of utility. They are not manifest to the senses but are
conceived only by the understanding. They must combine three requisites:
i. External – manifested act
ii. Personal – done by the debtor himself
iii. Possible – when it can be done both in nature and in law

2. By their autonomy or dependence

a. Principal – those which other things are considered dependent or subordinated e.g. lands on which a house is built
b. Accessory – dependent upon or subordinated to the principal e.g. house in the preceding example

3. By their subsistence after use

Art 418 Movable property is either consumable or non-consummable. To the first class belong those movables which cannot be
used in a manner appropriate to their nature without being consumed. To the second class belong all the others.
a. Consumable – whose used according to their nature destroys the substance of the thing or causes their loss to the owner
e.g. food
b. Non-consumable – not consumed by use
Differentiated from Fungible or Non-fungible
Fungible – depends upon possibility (because of their nature or the will of the parties) of being substituted by others of the same kind,
not having distinct individuality; those which belong to the common genus which includes several species of the same kind, perfectly
permitting substitution of one by the others
Non-fungible – those which have their own individuality (specifically determined) and do not admit of substitution
c. Deteriorable or non-deteriorable

4. By reason of their susceptibility to division

a. Divisible – can be divided physically or juridically without injury to their nature e.g. piece of land, inheritance
b. Indivisible – those which cannot be divided without destroying their nature or rendering impossible the fulfillment of the
juridical relation of which they are the object e.g. horse

5. By reason of designation
a. Generic – indicates its homogenous nature, but not the individual e.g. horse, house, dress
b. Specific – indicates the specie or its nature and the individual e.g. white horse of X or house No. 20 at Y Street

6. By their existence in point of time

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

7. By reason of contents and constitution

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

8. By reason of susceptibility to appropriation

a. Non-appropriable
b. Appropriable
i. Already appropriated
ii. Not yet appropriated

9. By reason of susceptibility to commerce

a. Within the commerce of man
b. Outside the commerce of man
II. OWNERSHIP
A. Definition

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

B. Bundle of Rights included in Ownership

Art 429 The owner or lawful possessor of a thing has the right to exclude any person from the enjoyment and disposal thereof. For this
purpose, he may use such force as may be reasonably necessary to repel or prevent an actual or threatened unlawful physical invasion or
usurpation of his property.

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

C. Other Specific Rights found in the Civil Code

1. Right to exclude; self-help; Doctrine of Self-help

Art 429 see above
ELEMENTS OF SELF-HELP

2. Right to enclose or fence

Art 430 Every owner may enclose of fence his land or tenements by means of walls, ditches, live or dead hedges, or by any
other means without detriment to servitudes consisted thereon.

3. Right to receive just compensation in case of expropriation

Art 435 No person shall be deprived of his property except by competent authority and for public use and always upon just
compensation.

4. Right to hidden treasure

Art 438 Hidden treasure belongs to the owner of the land, buiding or other property on which it is found.
Nevertheless, when the discovery is made on the property of another, OR of the State or any of its subdivisions, and by chance
– ½ thereof shall be allowed to the finder. If the finder is a trespasser, he shall not be entitled to any share of the treasure.
If the things found be of interest to science or the arts, the State may acquire them at their just price, which shall be divided in
conformity with the rule stated.

Art 439 By treasure is understood, for legal purposes, any hidden and unknown deposit of money, jewelry, or other precious
objects, the lawful ownership of which does not appear.

5. Right to space and subsoil

Art 437

6. Right to accession
Art 440 The ownership of property gives the right by accession to:
o Everything which is produced thereby (accession discreta)
o Incorporated or attached thereto, either naturally or artificially (accession continua)
 7. Right to recover possession and/or ownership (jus vindicandi)

a. Available actions to Recover Possession/Ownership

i. For immovable property

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

ii. For movable property

1) Replevin

b. Requisites for recovery

Art 434 In an action to recover, the property must be identified, and the plaintiff must rely on the strength of his
title and not on the weakness of the defendant’s claim.

i. Identify the property

ii. Prove his right of ownership – rely on the strength of his evidence not on the weakness of defendants

D. Limitations of Real Right of Ownership

1. General Limitation
a. Police power – salus populi suprema est lex
Art 436 When any property is condemned or seized by competent authority in the interest of health, safety or
security, the owner thereof shall not be entitled to compensation, UNLESS he can show that such condemnation or
seizure is unjustified.
b. Taxation
c. Eminent domain
Art 435

2. Specific Limitation
a. Legal servitudes
b. Limitations imposed by party transmitting the property
i. By contract or last will or donation
ii. Stipulation on inalienability

3. Limitation from scattered provisions of CC

Art 431 The owner of a thing cannot make use thereof in such manner as to injure the rights of a third person.
 Sis utere tuo ut alienum no laedas
Art 432 The owner of a thing has no right to prohibit the interference of another with the same, if the interference is necessary
to avert an imminent danger and threatened damage, compared to the damage arising to the owner from the interference is
much greater. The owner may demand from the person benefited indemnity for the damage to him
 Act in state of necessity
Art 2191 Proprietors shall also be responsible for damages caused:
(1) By the explosion of machinery which has not been taken care of with due diligence, and the inflammation of explosive
substances which have not been kept in a safe and adequate place
(2) By excessive smoke, which may be harmful to persons or property
(3) By the falling of trees situated at or near highways or lanes, if not caused by force majeure
(4) By emanations from tubes, canals, sewers or deposits of infectious matter, constructed without precautions suitable to
the place

Art 670 Distances for windows, apertures, balconies or other similar projection which afford direct and oblique views
Art 677 Constructions near fortified places or fortresses
Art 678 Building of aqueduct, well, sewer, furnace, chimney, stable, depository of corrosive substances, machinery or factory
Art 679 Planting of trees near a tenement
Art 649 Easement of right of way
Art 652 Acquisition of piece of land without right of way
Art 637 Receipt of lower estates of waters which naturally descend from higher estates
Art 676 Easement of drainage
Art 644 Limitations on the imposition of easement of aqueduct
Art 684-687 Lateral and subjacent support
III. RIGHTS OF ACCESSION
A. Concept
Art 440 The ownership of property gives the right by accession to everything which is produced thereby, or which is incorporated or
attached thereto, either naturally or artificially.

DEFINITIONS OF ACCESSION
 Tolentino: Right by virtue of which the owner of a thing becomes the owner of everything that the thing may produce or which
may be inseparably united or incorporated thereto, either naturally or principally.
 J. B. L. Reyes: Extension of ownership over a thing to whatever is incorporated thereto naturally or artificially (without or with
labor of man)
- Incorporation means a stable union or adherence, not mere juxtaposition
- Accession is one of the bundle of rights of ownership and is not a mode of acquiring property
- It does not depend upon a new title

B. General Principles of Accession

1. Applicable to BOTH accession discreta and accession continua

a. Accessory follows the principal (Accessor siquitur principale)

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

2. Applicable to ACCESSION CONTINUA alone

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

3. Applicable to ACCESSION DISCRETA alone

a. Ownership of fruits – To owner of principal thing belongs the NATURAL, INDUSTRIAL and CIVIL fruits Art 441
EXCEPTIONS:
iii. Possession in good faith
iv. In usufruct
v. In lease (although civil fruits go to the owner)
vi. In antichresis
C. Obligations of Receiver of Fruits to Pay Expenses by 3rd person in production, gathering and preservation

Art 443 He who receives the fruit has the obligation to pay the expenses made by a third person in their production, gathering and
preservation.
 BASIS: no one may unjustly enrich himself at the expense of another
 Characteristics of expenses covered:
o Dedicated to the annual production and not for the improvement of the property
o They must not be unnecessary, excessive or for pure luxury, but must be of such an amount naturally required by the
condition of the work cultivation made
 Even if expenses exceed the value of fruits, owner must pay expenses just the same, because the law makes no distinction. He
who is entitled to the benefits must bear the rishk and losses.
 WHAT MAY JUSTIFY NON-PAYMENT OF FRUITS: Owner may permit possessor to complete the harvesting of fruits
 Fruits not yet gathered and possessor is in bad faith: owner need not pay (Art 449)
 Fruits already gathered: owner has to pay, accession continua does not apply because fruits have already been separated from
the immovable. This provision makes no distinction as to good faith and baith faith.

D. Kinds of Accession

1. Accession Discreta (Fruits)

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

a. Natural – products of the soil in whose generation human labor does not intervene
b. Industrial – if it implies some kind of cultivation or labor
c. Civil – rents of lands and buildings, and certain kinds of incomes obtained from the land or building itself

2. Accession Continua

Over Immovables

1. Artificial or Industrial – Building, Planting, Sowing

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

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

 LO in bad faith

b. BPS builds, plants or sows on another’s land using his own material (LO and BPS-MM)
Article 448. The owner of the land on which anything has been built, sown or planted in good faith, shall have the right to
appropriate as his own the works, sowing or planting, after payment of the indemnity provided for in articles 546 and 548, or to
oblige the one who built or planted to pay the price of the land, and the one who sowed, the proper rent. However, the builder or
planter cannot be obliged to buy the land if its value is considerably more than that of the building or trees. In such case, he shall pay
reasonable rent, if the owner of the land does not choose to appropriate the building or trees after proper indemnity. The parties
shall agree upon the terms of the lease and in case of disagreement, the court shall fix the terms thereof. (361a)

Article 449. He who builds, plants or sows in bad faith on the land of another, loses what is built, planted or sown without right to
indemnity. (362)

Article 450. The owner of the land on which anything has been built, planted or sown in bad faith may demand the demolition of the
work, or that the planting or sowing be removed, in order to replace things in their former condition at the expense of the person
who built, planted or sowed; or he may compel the builder or planter to pay the price of the land, and the sower the proper rent.
(363a)

Article 451. In the cases of the two preceding articles, the landowner is entitled to damages from the builder, planter or sower. (n)

Article 452. The builder, planter or sower in bad faith is entitled to reimbursement for the necessary expenses of preservation of the
land. (n)

Article 453. If there was bad faith, not only on the part of the person who built, planted or sowed on the land of another, but also on
the part of the owner of such land, the rights of one and the other shall be the same as though both had acted in good faith.

It is understood that there is bad faith on the part of the landowner whenever the act was done with his knowledge and without
opposition on his part. (364a)

Article 454. When the landowner acted in bad faith and the builder, planter or sower proceeded in good faith, the provisions of
article 447 shall apply. (n)

 BPS in good faith

Art 448

 BPS in bad faith

Art 449
Art 450
Art 451

i. Options open to owner of the land

1) To acquire building, planting and sowing

 BP has right of retention
- Retains possession without paying rental
- Not entitled to fruits; his rights are the same as an antichretic creditor
 2) To sell land to BP OR to lease land to S
 BP may refuse if value of land considerably more than BP; then forced lease by LO and BP
 BPS in bad faith

ii. Rights of BPS in bad faith

Art 452 The builder, planter or sower in bad faith is entitled to reimbursement for the necessary expenses of preservation of
the land

Art 443 He who receives the fruits has the obligation to pay the expenses made by a third person in their production, gathering,
and preservation

Landowner in bad faith but BPS in good faith

Art 454 When the landowner acted in bad faith and the builder, planter or sower proceeded in good faith, the provisions of
article 447 shall apply

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

 Reason for adverting to rule in Art 447

c. BPS builds, plants or sows on another’s land with materials owned by 3rd persons
Art 455 If the materials, plants or seeds belong to a third person who has not acted in bad faith, the owner of the land shall answer
subsidiarily for their value and only in the event that the one who made use of them has no property with which to pay.

This provision shall not apply if the owner makes use of the right granted by article 450. If the owner of the materials, plants or
seeds has been paid by the builder, planter or sower, the latter may demand from the landowner the value of the materials and
labor.

N.B.: Good faith does not exclude negligence

Art 456 In the cases regulated in the preceding articles, good faith does not necessarily exclude negligence, which gives right to
damages under article 2176.

2. Natural (Accession Continua Natural)

a. Alluvium
Art 457 To the owners of lands adjoining the banks of rivers belong the accretion which they gradually receive from the effects of
the current of the waters.

 REQUISITES FOR LAND ACCRETION TO TAKE PLACE FOR THE BENEFIT OF THE RIPARIAN OWNER
(1) Deposit be gradual and imperceptible - exclusive work of nature
 (2) Made through the effects of the current of the water
(3) The land where accretion takes place is adjacent to the banks of the river
 “Banks of a river” – lateral strips or zones of its bend which are washed by the stream only during such high floods as do not
cause inundations or to the point reached by the river at high tide
 When is alluvion formed? When the deposit of sediment has reached a level higher than the highest level of water during the
year.
 Alluvion belongs to riparian owner from the time that the deposit created by the current of the water becomes manifest

b. Avulsion
Art 459 Whenever the current of a river, creek or torrent segregates from an estate on its bank a known portion of land and
transfers it to another estate, the owner of the land to which the segregated portion belonged retains ownership of it, provided that
he removes the same within 2 years.

c. Change of Course of River

Article 461. River beds which are abandoned through the natural change in the course of the waters ipso facto belong to the owners
whose lands are occupied by the new course in proportion to the area lost. However, the owners of the lands adjoining the old bed
shall have the right to acquire the same by paying the value thereof, which value shall not exceed the value of the area occupied by
the new bed. (370a)

Article 462. Whenever a river, changing its course by natural causes, opens a new bed through a private estate, this bed shall
become of public dominion. (372a)

Article 463. Whenever the current of a river divides itself into branches, leaving a piece of land or part thereof isolated, the owner of
the land retains his ownership. He also retains it if a portion of land is separated from the estate by the current. (374)

d. Formation of Islands
Article 461. River beds which are abandoned through the natural change in the course of the waters ipso facto belong to the owners
whose lands are occupied by the new course in proportion to the area lost. However, the owners of the lands adjoining the old bed shall
have the right to acquire the same by paying the value thereof, which value shall not exceed the value of the area occupied by the new
bed. (370a)

Article 462. Whenever a river, changing its course by natural causes, opens a new bed through a private estate, this bed shall become of
public dominion. (372a)

Article 463. Whenever the current of a river divides itself into branches, leaving a piece of land or part thereof isolated, the owner of the
land retains his ownership. He also retains it if a portion of land is separated from the estate by the current. (374)

Article 464. Islands which may be formed on the seas within the jurisdiction of the Philippines, on lakes, and on navigable or floatable
rivers belong to the State. (371a)

Article 465. Islands which through successive accumulation of alluvial deposits are formed in non-navigable and non-floatable rivers,
belong to the owners of the margins or banks nearest to each of them, or to the owners of both margins if the island is in the middle of
the river, in which case it shall be divided longitudinally in halves. If a single island thus formed be more distant from one margin than
from the other, the owner of the nearer margin shall be the sole owner thereof. (373a)

See PD 1067

3. Reverse Accession
 Art 120, FC The ownership of improvements, whether for utility or adornment, made on the separate property of the spouses
at the expense of the partnership or through the acts or efforts of either or both spouses shall pertain to the conjugal
partnership, or to the original owner-spouse, subject to the following rules:

When the cost of the improvement made by the conjugal partnership and any resulting increase in value are more than the
value of the property at the time of the improvement, the entire property of one of the spouses shall belong to the conjugal
partnership, subject to reimbursement of the value of the property of the owner-spouse at the time of the improvement;
otherwise, said property shall be retained in ownership by the owner-spouse, likewise subject to reimbursement of the cost of
the improvement.

In either case, the ownership of the entire property shall be vested upon the reimbursement, which shall be made at the time
of the liquidation of the conjugal partnership. (158a)

Art 321, CC The property which the unemancipated child has acquired or may acquire with his work or industry, or by any
lucrative title, belongs to the child in ownership, and in usufruct to the father or mother under whom he is under parental
authority and in whose company he lives; but if the child, with the parent's consent, should live independently from them, he
shall be considered as emancipated for all purposes relative to said property, and he shall have over it dominion, usufruct and
administration. (160)

Over Movables

1. Conjunction and Adjunction

a. Inclusion or Engraftment

b. Soldadura or Soldering
i. Plumbatura – different metals
ii. Ferruminatio – same metal

c. Tejido or Weaving

d. Escritura or Writing

e. Pintura or Painting

2. Commixtion and Confusion

3. Specification
IV. QUIETING OF TITLE
A. Differences between Action to Quiet Title and Action:

Action to Quiet Title Action to Remove a Cloud

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

Action to Quiet Title Action to Prevent a Cloud

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

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

B. Prescription of Action to Quiet Title

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

C. Who are Entitled to Bring Action?

Rule 64, Sec. 1, Par 2, Rules of Court The

D. Notes

1. There is a cloud on title to real property or any interest to real property.

Art 476 Whenever there is a cloud on title to real property OR any interest therein, by reason of any instrument, record, claim,
encumbrance, or proceeding which is apparently valid or effective but is in truth and in fact invalid, ineffective, voidable or
unenforceable, and may be prejudicial to said title, an action may be brought to remove such cloud or to quiet the title.
An action may also be brought to prevent a cloud from being cast upon title to real property or any interest therein.
2. Plaintiff has legal or equitable title to or interest in the subject/real property.
3. Instrument record claim, etc must be valid and binding on its face, but in truth and in fact, invalid, ineffective, voidable or
unenforceable.
4. Plaintiff must return benefits received from defendant.
5. Actions to quiet title are proceedings quasi in rem.
V. CO-OWNERSHIP
A. Definition

CO-OWNERSHIP
 The right of common dominion which two or more persons have a spiritual part (or ideal portion) or a thing which is not
physically divided.
 Req: a). An undivided thing or right
b). belongs to different persons
 No co-ownership if the different portions owner by the different people are already concretely determined and separately
identified, even if not yet technically described.

B. Characteristics of co-ownership

1. There is plurality of subjects who are the co-owners, but only one real right of ownership.
2. The recognition of ideal shares, defined but not physically identified.
3. Each co-owner has absolute control over his ideal share.
- A co-owner is free to alienate, assign or mortgage this undivided interest (except purely personal rights)
- Each co -owner is considered as the owner of the whole thing, the RATIO for this is the respective rights of each cannot be
determined, his share remains intangible.
- If subdivided, the co-ownership is terminated.
4. Mutual respect among co-owners in regard to use and enjoyment and preservation of thing as a whole.

C. Differences between Partnership and Joint Tenancy

Partnership Joint Tenancy

The concept of joint tenancy provides that
tenants are co-owners of inchoate portions of a particular
undivided property, depending on the number of tenants in
question. This means that no particular tenant owns a
delineated portion of the property since all tenants own the
property in common. Joint tenancy also provides for the
survivorship principle, which dictates that co-owners who
survive their contemporaries will have acquired ownership of
the deceased person’s portion.

Joint tenancy is distinguished by the four unities:

Unity of Possession means that each of the co-owners has an

equal right to possession of the entire property. If a joint tenant
excludes another joint tenant from the property, this amounts
to trespass. Co-owners have a right to joint possession of the
title deeds.

Unity of Interest means that both co-owners must have the

same estate – such as a freehold or fee simple estate – with the
same joint rights and obligations.

Unity of Title normally means that the tenancy must originate

from the same source, such as a single conveyance.

Unity of Time means that the interest of both co-owners must

have vested at the same time – again by a single indenture
document.
D. Differences between Co-ownership and Partnership

Co-ownership Partnership
As to creation May exist without the necessity of a contract Requires the existence of a contract in order to arise
As to Does not possess a juridical personality Has a juridical personality separate and distinct from that of
personality distinct from the co-owners each of the partners
As to purpose Only purpose is the common enjoyment of It is important that there must be an agreement to divide the
the thing owned in common profits among the partners (idea of common profit derived
from the things or service contributed to the partnership is an
essential feature)
As to An agreement not to divide the property for No limit as to the time of its existence
duration more than 10 years is not a valid with
respect to the excess
As to the Death of a co-owner does not dissolve the Death of a partner dissolves the partnership
effect of co-ownership
death

As to the A co-owner may freely dispose of his share No power of disposal

disposal of
share
As to the A co-owner does not represent the co-owner A partner usually represents the partnership and may bind the
power to act partnership
with 3rd
person

E. Source of Co-ownership
 Rule that will govern will depend on the source
2. Law

i. Cohabitation
Art 147, FC When a man and a woman who are capacitated to marry each other, live exclusively with each other as husband
and wife without the benefit of marriage or under a void marriage, their wages and salaries shall be owned by them in equal
shares and the property acquired by both of them through their work or industry shall be governed by the rules on co-
ownership.

Art 148, FC
Art 90 When a man and a woman who are capacitated to marry each other, live exclusively with each other as husband and
wife without the benefit of marriage or under a void marriage, their wages and salaries shall be owned by them in equal shares
and the property acquired by both of them through their work or industry shall be governed by the rules on co-ownership.

ii. Purchase
Art 1452 If two or more persons agree to purchase property and by common consent the legal title is taken in the name of one
of them for the benefit of all, a trust is created by force of law in favor of the others in proportion to the interest of each.
(Implied trust)

iii. Donation
Art 753 When a donation is made to several persons jointly, it is understood to be in equal shares, and there shall be no right of
accretion among them, unless the donor has otherwise provided.

The preceding paragraph shall not be applicable to donations made to the husband and wife jointly, between whom there shall
be a right of accretion, if the contrary has not been provided by the donor. (637)

iv. Easement of party wall

v. Condominium Law
Sec 6 (c), RA 4726

3. Contracts- governed primarily by the contract between the parties and in default Art. 484-501 NCC
 a. By agreement
Duration of co-ownership:

Art 494 No co-owner shall be obliged to remain in the co-ownership. Each co-owner may demand at any time the partition of
the thing owned in common, insofar as his share is concerned.
Nevertheless, an agreement to keep the thing undivided for a certain period of time, not exceeding ten years, shall be valid.
This term may be extended by a new agreement.
A donor or testator may prohibit partition for a period which shall not exceed twenty years.
Neither shall there be any partition when it is prohibited by law.
No prescription shall run in favor of a co-owner or co-heir against his co-owners or co-heirs so long as he expressly or impliedly
recognizes the co-ownership.

b. Universal partnership
Art 1778
Art 1779
Art 1780

c. Associations and societies with secret articles

Art 1775

4. Succession
 Intestate: Art 1452
 Testate: Property is given to 2 or more heirs, the whole estate is, before the partition, owned in common by such heirs

5. Chance
 Commixtion ( are not separable without injury)
Art 472 If by the will of their owners two things of the same or different kinds are mixed, or if the mixture occurs by chance, and in
the latter case the things are not separable without injury, each owner shall acquire a right proportional to the part belonging to
him, bearing in mind the value of the things mixed or confused.

6. Occupation
 Harvesting
 Fishing
 Hidden treasure

*For Special provisions of Law, such provisions shall primarily govern the co-ownership, Art. 484-501 shall be supplemental.

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

1. To use the thing according to the purpose intended may be altered by agreement, express or implied, provided:
a. It is without injury or prejudice to interest of co-ownership and;
b. Without preventing the use of other co-owners
c. Such use must bee in accordance with the purpose for which the thing is intended

Art 486 Each co-owner may use the thing owned in common, provided he does so in accordance with the purpose for which it is
intended and in such a way as not to injure the interest of the co-ownership or prevent the other co-owners from using it according
to their rights. The purpose of the co-ownership may be changed by agreement, express or implied.

 A co-owner can either exercise an equal right to live in the house or agree to lease it
 A co-owner cannot retain a house without paying rent
 A co-owner cannot give a consent to a 3rd person to build a house, it would tantamount to devoting the property to
exclusive use
 In determining the purpose, the agreement, express or implied, of the parties will first govern.

2. To share in the benefits in proportion to his interest, provided the charges are borne by each in the same proportion
 Art 485 The share of the co-owners, in the benefits as well as in the charges, shall be proportional to their respective interests. Any
stipulation in a contract to the contrary shall be void.

The portions belonging to the co-owners in the co-ownership shall be presumed equal, unless the contrary is proved.

 Contrary stipulation is void (If provided na un share niya, di pwede equal, BENEFIT = INTEREST)
 Presumption is that portions are equal unless contrary is proved

3. Each co-owner may bring an action in ejectment

Art 487 Any one of the co-owners may bring an action in ejectment.

 all co-owner are real parties in interest, anyone of the co-owners may bring an action in ejectment.
 An action in ejectment includes all kinds of action for recovery of possession such as a suit for forcible entry, unlawful
detainer, accion reinvicatoria and accion publiciana
 An action without the other co-owners is a suit deemed instituted in the benefit of all, if not, it will not prosper.
 The other co-owner are not indispensable parties
 An action provided in this article may also be filed against a co-owner who takes exclusive ownership of the said property,
but the only effect is to obtain recognition of the co-ownership.
 Any adverse judgement cannot prejudice the rights of the impleaded co-owners, but any judgemetn in favor of the co-
owners will benefit the others.

4. To compel other co-owner to contribute:

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

Art 488 Each co-owner shall have a right to compel the other co-owners to contribute to the expenses of preservation of the
thing or right owned in common and to the taxes. Any one of the latter may exempt himself from this obligation by renouncing
so much of his undivided interest as may be equivalent to his share of the expenses and taxes. No such waiver shall be made if
it is prejudicial to the co-ownership.

Art 489 Repairs for preservation may be made at the will of one of the co-owners, but he must, if practicable, first notify his co-
owners of the necessity for such repairs. Expenses to improve or embellish the thing shall be decided upon by a majority as
determined in article 492.

 The law grants each co-owner the right to demand contribution from the other co-owner for any and all expenses he
incurred for the purpose of preserving the thing or right owned in common.
 Consent of other not necessary
 Prior notice if practicable
 The effect of failure to notify co-owners is to place upon the co-owner who incurred the expenses the burden of proving
the necessity of the repairs and the reasonableness of the expenses.
 Co-owner’s option not to contribute by waiving his undivided interest equal to amount of contribution – dacion en pago
Exception: if waiver is prejudicial to co-ownership
 Requisites before repairs for preservation may be made or expenses for embellishment or improvement may be made
 Art 488 includes the payment of tax (real estate tax) even though it is not a necessary expense.
 Improvements or embellish the thing shall be decided upon by the majority

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

Art 491 None of the co-owners shall, without the consent of the others, make alterations in the thing owned in common, even
though benefits for all would result therefrom. However, if the withholding of the consent by one or more of the co-owners is clearly
prejudicial to the common interest, the courts may afford adequate relief.

ACTS OF ALTERATION
 a. Concept
 Any change injurious to the thing owned in common or to the rights of other co-owners or
 Any change material to the use, destination or state of thing which act is in violation of the express or tacit agreement
of the co-owners
 Affects the substance of the thing and changes its essence and nature
 Includes any act of strict dominion or ownership and any encumbrance or disposition
 Consent may be expressly or tacitly
 If unauthorized alteration, it will be illegal and void and the erring co-owner shall be liable

b. Distinguished from acts of administration

Art 492 For the administration and better enjoyment of the thing owned in common, the resolutions of the majority of the co-
owners shall be binding.

There shall be no majority unless the resolution is approved by the co-owners who represent the controlling interest in the
object of the co-ownership.

Should there be no majority, or should the resolution of the majority be seriously prejudicial to those interested in the property
owned in common, the court, at the instance of an interested party, shall order such measures as it may deem proper, including
the appointment of an administrator.

Whenever a part of the thing belongs exclusively to one of the co-owners, and the remainder is owned in common, the
preceding provision shall apply only to the part owned in common.

 Better enjoyment of the thing owned in common, the resolution of the majority of the co-owners shall refer to
the majority of interest.

Acts of Alteration Acts of Administration

 Have a more permanent result and relate to the substance
or form of the thing, acts of simple administration refer to
the enjoyment of the thing and are of a transitory character.
 When the enjoyment of the thing does not require its
modification, whatever modification or change that is done
will be considered an alteration within the terms of Article
491.
 Refers to the improvement or embellishment of the thing
owned in common for the purpose of better enjoyment.
 When the thing in its nature requires changes in its
exploitation, such modifications and variations should be
considered as falling under the acts of simple administration.

*In determining whether an act is that of administration or alteration, the nature of the thing itself must be considered.

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

 Remedy is to compel the erring co- owner to undo what has been done, at the latter’s expense.
o This remedy is explicitly authorized by the provisions of Article 1168 “when the obligation consists in
not doing, and the obligor does what has been forbidden him, it shall also be undone at his expense.”
 In addition, the erring co-owner shall likewise be liable for any losses or damages which the co-ownership may
have suffered.

QUERY: Is lease of real property owned in common an act of alteration?

Art 647 One who for the purpose of irrigating or improving his estate, has to construct a stop lock or sluice gate in the bed of the stream
from which the water is to be taken, may demand that the owners of the banks permit its construction, after payment of damages,
including those caused by the new easement to such owners and to the other irrigators.

Art 1878 (8) Special powers of attorney are necessary in the following cases:
(8) To lease any real property to another person for more than one year;

6. To protect against acts of majority which are prejudicial to minority

Art 492, 3rd Par Should there be no majority, or should the resolution of the majority be seriously prejudicial to those interested in the
property owned in common, the court, at the instance of an interested party, shall order such measures as it may deem proper, including
the appointment of an administrator.

 No Majority or Act of Majority is Seriously prejudicial:

o when the resolution calls for a substantial change or alteration of the common property or of the use
to which it has been dedicated by agreement or by its nature;
o when the resolution goes beyond the limit of mere administration or invades proprietary rights of the
co-owners in violation of Article 491;
o when the majority authorizes lease, loans or other contracts without security, exposing the thing to
serious danger to the prejudice of the other co-owners; and
o when the majority refuses to dismiss an administrator who is guilty of fraud or negligence in his
management, or he does not have the respectability, aptitude, and solvency required of persons
holding such positions.

7. To exercise legal redemption

Art 1620 A co-owner of a thing may exercise the right of redemption in case the shares of all the other co-owners or of any of them, are
sold to a third person. If the price of the alienation is grossly excessive, the redemptioner shall pay only a reasonable one.

Should two or more co-owners desire to exercise the right of redemption, they may only do so in proportion to the share they may
respectively have in the thing owned in common.

Art 1623 The right of legal pre-emption or redemption shall not be exercised except within thirty days from the notice in writing by the
prospective vendor, or by the vendor, as the case may be. The deed of sale shall not be recorded in the Registry of Property, unless
accompanied by an affidavit of the vendor that he has given written notice thereof to all possible redemptioners.
The right of redemption of co-owners excludes that of adjoining owners.

8. To ask for partition

Art 494 No co-owner shall be obliged to remain in the co-ownership. Each co-owner may demand at any time the partition of the thing
owned in common, insofar as his share is concerned.

Nevertheless, an agreement to keep the thing undivided for a certain period of time, not exceeding ten years, shall be valid. This term
may be extended by a new agreement.

A donor or testator may prohibit partition for a period which shall not exceed twenty years.

Neither shall there be any partition when it is prohibited by law.

No prescription shall run in favor of a co-owner or co-heir against his co-owners or co-heirs so long as he expressly or impliedly recognizes
the co-ownership.

9. Other cases where legal right of redemption is given

Art 1621 The owners of adjoining lands shall also have the right of redemption when a piece of rural land, the area of which does not
exceed one hectare, is alienated, unless the grantee does not own any rural land.

This right is not applicable to adjacent lands which are separated by brooks, drains, ravines, roads and other apparent servitudes for the
benefit of other estates.

If two or more adjoining owners desire to exercise the right of redemption at the same time, the owner of the adjoining land of smaller
area shall be preferred; and should both lands have the same area, the one who first requested the redemption. (1523a)

Art 1622 Whenever a piece of urban land which is so small and so situated that a major portion thereof cannot be used for any practical
purpose within a reasonable time, having been bought merely for speculation, is about to be re-sold, the owner of any adjoining land has
a right of pre-emption at a reasonable price.

If the re-sale has been perfected, the owner of the adjoining land shall have a right of redemption, also at a reasonable price.
When two or more owners of adjoining lands wish to exercise the right of pre-emption or redemption, the owner whose intended use of
the land in question appears best justified shall be preferred.

G. Implications of co-owners right over his ideal share

1. Co-owner has the right:

a. To share in fruits and benefits

b. To alienate, mortgage or encumber and dispose of his ideal share
BUT: Other co-owners may exercise right of legal redemption
c. To substitute another person in the enjoyment of thing
d. To renounce part of his interest to reimburse necessary expenses incurred by another owner

Art 488 Each co-owner shall have a right to compel the other co-owners to contribute to the expenses of preservation of the thing or
right owned in common and to the taxes. Any one of the latter may exempt himself from this obligation by renouncing so much of
his undivided interest as may be equivalent to his share of the expenses and taxes. No such waiver shall be made if it is prejudicial to
the co-ownership.

2. Effect of transaction by each co-owner

a. Limited to his share in the partition

b. Transferee does not acquire any specific portion of whole property until partition
c. Creditors of co-owners may intervene in partition or attack the same if prejudicial

Art 499 The partition of a thing owned in common shall not prejudice third persons, who shall retain the rights of mortgage,
servitude or any other real rights belonging to them before the division was made. Personal rights pertaining to third persons against
the co-ownership shall also remain in force, notwithstanding the partition.

EXCEPT that creditors cannot ask for rescission even if not notified in the absence of fraud

Art 497 The creditors or assignees of the co-owners may take part in the division of the thing owned in common and object to its
being effected without their concurrence. But they cannot impugn any partition already executed, unless there has been fraud, or in
case it was made notwithstanding a formal opposition presented to prevent it, without prejudice to the right of the debtor or
assignor to maintain its validity.

H. Rules on co-ownership not applicable to conjugal partnership of gains or absolute community of property

I. Special rules on co-ownership of different stories of a house as differentiated from provisions of Condominium Law
(Act No. 4726)
Article 490. Whenever the different stories of a house belong to different owners, if the titles of ownership do not specify the terms
under which they should contribute to the necessary expenses and there exists no agreement on the subject, the following rules shall be
observed:

(1) The main and party walls, the roof and the other things used in common, shall be preserved at the expense of all the owners in
proportion to the value of the story belonging to each;

(2) Each owner shall bear the cost of maintaining the floor of his story; the floor of the entrance, front door, common yard and sanitary
works common to all, shall be maintained at the expense of all the owners pro rata;

(3) The stairs from the entrance to the first story shall be maintained at the expense of all the owners pro rata, with the exception of the
owner of the ground floor; the stairs from the first to the second story shall be preserved at the expense of all, except the owner of the
ground floor and the owner of the first story; and so on successively. (396)

1. Concept of Condominium
  A “condominium” is an interest in real property consisting of a separate 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 of the building.
 Applies to a situation where the house consists of several stories and the different stories belong to different owners.
 “unit” means a part of the condominium project intended for any type of independent use or ownership, including one or more
rooms or spaces located in one or more floors (or part or parts of floors) in a building or buildings and such accessories as may
be appended thereto
 There are 2 situation contemplated in the Condominium Act.
i. The first contemplates of a situation where the land and other common areas in the condominium project are
held by the owners of separate units as co-owners thereof.110 In such a situation, there is co-ownership among
the unit owners, with respect to the undivided interest in the land and common areas.
ii. The second contemplates of a situation where the land and other common areas are to be held by the
condominium corporation, in which case, the owners of the individual units are automatically considered
members or shareholders of the corporation.
 Common Areas- in a condominium project refer to the entire project excepting all units separately granted or held or reserved
Rules:
o For maintenance of insurance policies insuring condominium owners against loss by fire, casualty, liability, workmen’s
compensation and other insurable risks, and for bonding of the members of any management body;
o Provisions for maintenance, utility, gardening and other services benefiting the common areas, for the employment
of personnel necessary for the operation of the building, and legal, accounting and other professional and technical
services;
o For purchase of materials, supplies and the like needed by the common areas;
o For payment of taxes and special assessments which would be a lien upon the entire project or common areas, and
for the discharge of any encumbrance levied against the entire project or the common areas;
o For reconstruction of any portion or portions of any damage to or destruction of the project;

2. Essential requisites for Condominium

 In a situation where the different stories of a house belong to different owners, the payment of necessary expenses shall be
governed by the following rules:
o if the manner of contribution is specified in the title of ownership, the same shall govern;
o in the absence of such provision in the title of ownership, the agreement of the parties shall control; or
o in the absence of such agreement, the following rules shall be observed:
 The main and party walls, the roof and the other things used in common, shall be preserved at the expense
of all the owners in proportion to the value of the story belonging to each.
 The floor of the entrance, front door, common yard and sanitary works common to all, shall be maintained
at the expense of all the owners pro rata.
 Each owner shall bear the cost of maintaining the floor of his story.
 The stairs from the entrance to the first story shall be maintained at the expense of all the owners pro rata,
with the exception of the owners of the ground floor, the stairs from the first to the second story shall be
preserved at the expense of all, except the owner of the ground floor and the owner of the first story; and
so on successively

3. Rights and obligations of Condominium owner

J. Extinguishment of co-ownership

1. Total destruction of thing

2. Merger of all interests in one person

3. Acquisitive prescription

a. By a third person
b. By one co-owner as against the other co-owners
 REQUISITES - Unequivocal acts of:
i. Unequivocal acts of repudiation of co-ownership (acts amounting to ouster of other co-owners) known to
other co-owners and shown by clear and convincing evidence
ii. Open and adverse possession, not mere silent possession for the required period of extraordinary
acquisitive prescription
iii. The presumption is that possession by co-owner is not adverse
4. Partition or division

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

i. When there is a stipulation against it (should not be over 10 years)

ii. When condition of indivision is imposed by transferor (donor or testator) not exceeding 20 years
Art 494

iii. When the legal nature of community prevents partition (party wall)

iv. When partition is generally prohibited by law

E.g. absolute community of property

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

b. Effect of partition
Art 1091 A partition legally made confers upon each heir the exclusive ownership of the property adjudicated to him.

Art 543 Each one of the participants of a thing possessed in common shall be deemed to have exclusively possessed the part
which may be allotted to him upon the division thereof, for the entire period during which the co-possession lasted.
Interruption in the possession of the whole or a part of a thing possessed in common shall be to the prejudice of all the
possessors. However, in case of civil interruption, the Rules of Court shall apply.

Art 1092 After the partition has been made, the co-heirs shall be reciprocally bound to warrant the title to, and the quality of,
each property adjudicated.

Art 1093 The reciprocal obligation of warranty referred to in the preceding article shall be proportionate to the respective
hereditary shares of the co-heirs, but if any one of them should be insolvent, the other co-heirs shall be liable for his part in the
same proportion, deducting the part corresponding to the one who should be indemnified.

Those who pay for the insolvent heir shall have a right of action against him for reimbursement, should his financial condition
improve.

Art 499 The partition of a thing owned in common shall not prejudice third persons, who shall retain the rights of mortgage,
servitude or any other real rights belonging to them before the division was made. Personal rights pertaining to third persons
against the co-ownership shall also remain in force, notwithstanding the partition.

Art 500 Upon partition, there shall be a mutual accounting for benefits received and reimbursements for expenses made.
Likewise, each co-owner shall pay for damages caused by reason of his negligence or fraud.

Art 501 Every co-owner shall, after partition, be liable for defects of title and quality of the portion assigned to each of the
other co-owners.

c. Right of creditors of individual co-owners

Art 497 The creditors or assignees of the co-owners may take part in the division of the thing owned in common and object to
its being effected without their concurrence. But they cannot impugn any partition already executed, unless there has been
fraud, or in case it was made notwithstanding a formal opposition presented to prevent it, without prejudice to the right of the
debtor or assignor to maintain its validity.

d. Procedure for partition

Rule 69, Rules of Court
Section 1. Complaint in action for partition of real estate. — A person having the right to compel the partition of real estate may do so as
provided in this Rule, setting forth in his complaint the nature and extent of his title and an adequate description of the real estate of
which partition is demanded and joining as defendants all other persons interested in the property. (1a)

Section 2. Order for partition and partition by agreement thereunder. — If after the trial the court finds that the plaintiff has the right
thereto, it shall order the partition of the real estate among all the parties in interest. Thereupon the parties may, if they are able to
agree, make the partition among themselves by proper instruments of conveyance, and the court shall confirm the partition so agreed
upon by all the parties, and such partition, together with the order of the court confirming the same, shall be recorded in the registry of
deeds of the place in which the property is situated. (2a)

A final order decreeing partition and accounting may be appealed by any party aggrieved thereby. (n)

Section 3. Commissioners to make partition when parties fail to agree. — If the parties are unable to agree upon the partition, the court
shall appoint not more than three (3) competent and disinterested persons as commissioners to make the partition, commanding them
to set off to the plaintiff and to each party in interest such part and proportion of the property as the court shall direct. (3a)

Section 4. Oath and duties of commissioners. — Before making such partition; the commissioners shall take and subscribe an oath that
they will faithfully perform their duties as commissioners, which oath shall be filed in court with the other proceedings in the case. In
making the partition, the commissioners shall view and examine the real estate, after due notice to the parties to attend at such view and
examination, and shall hear the parties as to their preference in the portion of the property to be set apart to them and the comparative
value thereof, and shall set apart the same to the parties in lots or parcels as will be most advantageous and equitable, having due regard
to the improvements, situation and quality of the different parts thereof. (4a)

Section 5. Assignment or sale of real estate by commissioners. — When it is made to appear to the commissioners that the real state, or a
portion thereof, cannot be divided without prejudice to the interests of the parties, the court may order it assigned to one of the parties
willing to take the same, provided he pays to the other parties such amount as the commissioners deem equitable, unless one of the
interested parties asks that the property be sold instead of being so assigned, in which case the court shall order the commissioners to
sell the real estate at public sale under such conditions and within such time as the court may determine. (5a)

Section 6. Report of commissioners; proceedings not binding until confirmed. — The commissioners shall make a full and accurate report
to the court of all their proceedings as to the partition, or the assignment of real estate to one of the parties, or the sale of the same.
Upon the filing of such report, the clerk of court shall serve copies thereof on all the interested parties with notice that they are allowed
ten (10) days within which to file objections to the findings of the report, if they so desire. No proceeding had before or conducted by the
commissioners and rendered judgment thereon. (6a)

Section 7. Action of the court upon commissioners report. — Upon the expiration of the period of ten (10) days referred to in the
preceding section or even before the expiration of such period but after the interested parties have filed their objections to the report or
their statement of agreement therewith the court may, upon hearing, accept the report and render judgment in accordance therewith,
or, for cause shown recommit the same to the commissioners for further report of facts; or set aside the report and appoint new
commissioners; or accept the report in part and reject it in part; and may make such order and render such judgment as shall effectuate a
fair and just partition of the real estate, or of its value, if assigned or sold as above provided, between the several owners thereof. (7)

Section 8. Accounting for rent and profits in action for partition. — In an action for partition in accordance with this Rule, a party shall
recover from another his just share of rents and profits received by such other party from the real estate in question, and the judgment
shall include an allowance for such rents and profits. (8a)

Section 9. Power of guardian in such proceedings. — The guardian or guardian ad litem of a minor or person judicially declared to be
incompetent may, with the approval of the court first had, do and perform on behalf of his ward any act, matter, or thing respecting the
partition of real estate, which the minor or person judicially declared to be incompetent could do in partition proceedings if he were of
age or competent. (9a)

Section 10. Costs and expenses to be taxed and collected. — The court shall equitably tax and apportion between or among the parties
the costs and expenses which accrue in the action, including the compensation of the commissioners, having regard to the interests of
the parties, and execution may issue therefor as in other cases. (10a)

Section 11. The judgment and its effect; copy to be recorded in registry of deeds. — If actual partition of property is made, the judgment
shall state definitely, by metes and bounds and adequate description, the particular portion of the real estate assigned to each party, and
the effect of the judgment shall be to vest in each party to the action in severalty the portion of the real estate assigned to him. If the
whole property is assigned to one of the parties upon his paying to the others the sum or sums ordered by the court, the judgment shall
state the fact of such payment and of the assignment of the real estate to the party making the payment, and the effect of the judgment
shall be to vest in the party making the payment the whole of the real estate free from any interest on the part of the other parties to the
action. If the property is sold and the sale confirmed by the court, the judgment shall state the name of the purchaser or purchasers and
a definite description of the parcels of real estate sold to each purchaser, and the effect of the judgment shall be to vest the real estate in
the purchaser or purchasers making the payment or payments, free from the claims of any of the parties to the action. A certified copy of
the judgment shall in either case be recorded in the registry of deeds of the place in which the real estate is situated, and the expenses of
such recording shall be taxed as part of the costs of the action. (11a)

Section 12. Neither paramount rights nor amicable partition affected by this Rule. — Nothing in this Rule contained shall be construed so
as to prejudice, defeat, or destroy the right or title of any person claiming the real estate involved by title under any other person, or by
title paramount to the title of the parties among whom the partition may have been made, nor so as to restrict or prevent persons
holding real estate jointly or in common from making an amicable partition thereof by agreement and suitable instruments of
conveyance without recourse to an action. (12a)

Section 13. Partition of personal property. — The provisions of this Rule shall apply to partitions of estates composed of personal
property, or of both real and personal property, in so far as the same may be applicable. (13)
VI. POSSESSION
A. Definition and Concept

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

B. Essential Requisites of Possession

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

a. The material or physical holding or occupation either

b. Exercise of a right
c. Constructive possession (intention to possess is very crucial)

2. Intention to possess (animus possidendi)

C. Degrees of Holding of Possession

1. Mere holding or possession without title whatsoever and in violation of the right of the owner
E.g. possession of a thief/robber or a usurper of land

2. Possession with a juridical title, but not that of ownership

E.g. possession of tenant, depository agent, bailee, trustee, lessee, antichretic creditor.
 This degree of possession will never ripen into full ownership as long as there is no repudiation of concept under which
property is held.

3. Possession with a just title or title sufficient to transfer ownership, but not from the true owner
E.g. possession of a vendee from vendor who pretends to be the owner
 This degree of possession ripens into full ownership by lapse of time.

4. Possession with a just title from the true owner

 The delivery of possession transfers ownership, and strictly speaking, is the jus possidendi.

D. Cases of Possession

1. Possession for oneself or possession exercised in one’s own name and possession in the name of another
Art 524

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

3. Possession in good faith and possession in bad faith

Art 526

a. Mistake upon a doubtful or difficult question of law as a basis of good faith

E. What things or rights may be possessed

Art 530 Only things or rights susceptible of appropriation may be the object of possession

F. What may not be possessed by private persons

1. Res Communes

2. Property of public dominion

3. Right under discontinuous and/or non-apparent easement

G. Acquisition of Possession

1. Ways of acquiring possession

Art 531

a. Material occupation of the thing

b. Subject to the action of our will

i. Doctrine of constructive possession
ii. Includes constructive delivery
1) Traditio brevi manu – thing is already in transferee’s hands
 E.g. under a contract of lease, then delivered under a sale
2) Traditio constitutum possessorium – thing remains in transferor’s hands
 E.g. sale, then retained under a commodatum

c. Proper acts and legal formalities

 Refers to the acquisition of possession by:
- Sufficient title
- Inter vivos
- Mortis causa
- Lucrative or onerous
 Includes traditio longa manu and tradition simbolica, donations, succession (testate or intestate), contracts, judicial
writs of possession, writ of execution of judgments, execution and registration of public instruments

2. By whom possession be acquired

Art 532

a. By same person
ELEMENTS OF PERSONAL ACQUISITION
1. Capacity to acquire possession
2. Intention to possess
3. Possibility of acquiring possession
b. By his legal representatives
REQUISITES

c. By his agent

d. By any person without any power whatsoever but subject to ratification, without prejudice to the proper case of negotiorum
gestio
Art 2144
Art 4129
Art 2150

e. Qualifiedly, minors and incapacitated persons

Art 535

3. What do not affect possession

Art 537
Art 1119

a. Acts merely tolerated

Art 537

b. Acts executed clandestinely and without the knowledge of the possessor

Art 537

c. Acts by violence as long as possessor objects thereto (i.e. he files a case)

Art 536

4. Rule to solve conflict of possession

Art 538
GENERAL RULE: Possession cannot be recognized in two different personalities.
EXCEPTION: In cases of co-possession by co-possessors without conflicting claims or interest

In case of conflicting possession, preference is given to:

a. Present possessor or actual possessor
b. If there are 2 or more possessors, the one longer in possession
c. If dates of possession are the same, the one who presents a title
d. If all conditions are equal, the thing shall be placed in judicial deposit pending determination of possession or ownership
through proper proceedings

H. Effects of Possession

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

a. Actions to recover possession

i. Accion interdictal or Summary proceedings – forcible entry and unlawful detainer

- Plaintiff may ask for writ of preliminary mandatory injunction
- Within 10 days from the filing of complaint in forcible entry
Art 539

ii. Accion publiciana – based on superior right of possession, not ownership

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

iv. Action for replevin – possession or ownership for movable property

b. Lawful possessor can employ self-help

Art 429

2. Entitlement to fruits – possessor in good faith/bad faith

Art 544
Art 549

3. Reimbursement for expenses – possessor in good faith/bad faith

 Liability for loss or deterioration of property by possessor in bad faith
Art 553
Art 552

4. Possession of movable acquired in good faith (in concept of owner) is equivalent to title
Art 559
 Possessor has actual title which is defeasible only by true owner
 One who has lost a movable or has been unlawfully deprived thereof may recover it but without reimbursement
EXCEPT: If possessor acquired it at a public sale

I. Effect of possession in the concept of an owner

1. Possession may by lapse of time ripen into full ownership, subject to certain exceptions.

2. Presumption of just title and cannot be obliged to show or prove it

Art 541
EXCEPTION: Art 1131

3. Possessor may bring all actions necessary to protect his possession except accion reivindicatoria

4. May employ self-help under Art 429

5. Possessor may ask for inscription of such real right of possession in the Registry of Property

6. Has rights to fruits and reimbursements for expenses (assuming he is a possessor in good faith)
7. Upon recovery of possession which he has been unlawfully deprived, may demand fruits and damages

8. Generally, he can do on the things possessed everything that the law authorizes the owner to do until he is ousted by the one who
has a better right

9. Possession in good faith and possession in bad faith

Art 528
 Mistake upon a doubtful or difficult question of law as a basis of good faith
Art 526, Par 3

J. Presumptions in favor of the possessor

1. Of good faith until the contrary is proved

Art 528

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

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

4. Of non-interruption of possession in favor of present possessor who proves possession at a previous time until the contrary is
proved
Art 554
Art 1120- 1124

5. Of continuous possession or non-interruption of possession of which he was wrongfully deprived for all purposes favorable to him
Art 561

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

a. Of extension of possession of real property to all movables contained therein so long as it is not shown that they should
be excluded
Art 426

b. Non-interruption of possession of hereditary property

Art 533
Art 1078

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

Art 541
cf. Art 1141

K. Possession may be lost by

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

Art 562

USUFRUCT
 Is a real right, temporary in character that authorizes the holder to enjoy all the advantages derived from a normal exploitation
of another’s property, according to its destination or purpose, and imposes an obligation of restoring at the time specified,
either the thing itself or its equivalent.
 In essence usufruct is nothing else but simply allowing one to enjoy another’s property
 Real right- right that you can assert against anyone, even the owner
 Temporary- limited by time and may last as long as the thing exists
- GR: Extinguished upon:
 Expiration of the period or must have a period
 Upon usufrutuary’s death
 Entitles the holder to Jus Utendi (right to enjoy the property) and Jus Fruendi ( right to receive the fruits)
 Jus in re Aliena – Usufruct is real right over another’s property, limitation upon the owner’s right of ownership
 Naked owner- left with no right over the property except the right of ownership

2. Historical Considerations

3. Characteristics of Usufruct

4. Usufruct Distinguished from Lease; from Servitude

5. Classes of Usufruct

1. By origin

a. Voluntary
– by the will of private persons expressed in acts inter vivos (contracts, donations) or expressed in a last will and testament
– NECESSARY that the usufruct be constituted by the owner of property

b. Legal
Art 321
Art 226, FC- IF grandparents are to be constituted as guardians, is a proceeding necessary?
c. Mixed – constituted by prescription

2. By person enjoying the right of usufruct

a. Simple- constituted in favor of one person

b. Multiple – constituted in favor of two persons or more
i. Simultaneous – usufructuaries may enjoy the thing AT THE SAME TIME
ii. Succession – usufructuaries may enjoy the thing ONE AFTER ANOTHER
Limitation on successive usufruct
Art 756
Art 863
Art 869

3. By object of usufruct

a. Rights
REQ:
1. Must NOT be strictly personal
2. Must NOT be intransmissible
3. Must have its own independent existence
Art 574
b. Things- may be Personal or Real property
i. Normal – constituted over a NON-CONSUMABLE THINGS
ii. Abnormal, irregular or quasi-usufruct – constituted over a CONSUMABLE THING
 - Deviates from the obligation of normal usufructuary

4. By the extent of usufruct

a. As to the fruits
i. Total – constituted on the whole
ii. Partial – constituted on a part
Art 598

b. As to object
i. Singular
ii. Universal
Art 595

Subject to provisions of:

Art 758 - 759

5. By the terms of the usufruct

Art 564

a. Pure
b. Conditional
c. With a term (period) – from or to a certain day

6. Rights of Usufructuary

1. As to the thing and its fruit

a. Right to possess and enjoy the thing itself, its fruits and accessions
 Fruits consist of natural, industrial and civil fruits – usufructuary has the absolute right to enjoy the fruits
 As to hidden treasure, usufructuary is considered a stranger
– may be given a share if he is the finder
– hidden treasure still belongs to the owner

Art 566 & 436

 Fruits pending at the beginning of usufruct
Art 567
 Civil fruits
Art 569 & 588

b. Right to lease the thing – usufructuary may lease the property and collect the rents thereof
Art 572
 Limitations – may be prohibited by the owner before entering the contract of usufruct
 Liability of usufructuary – any liability arising from the acts or omission of the lessee is the usufructuary’s liability
Art 590
 Exceptions to right of leasing the thing

c. Right to improve the thing

Art 579

2. As to the legal right of usufruct itself

a. Right to mortgage – only the right of a usufructuary can be mortgaged but NEVER the property because he must be the owner
Right of usufruct
Art 572

b. Right to alienate the usufruct

EXCEPT:
 In purely personal usufructs
 When title constituting it prohibits the same

7. Rights of Naked Owner

1. At the beginning, during, and termination of usufruct
(See obligations of usufructuary at the beginning of the usufruct)

2. During the usufruct

a. Retains title to the thing or property
b. He may alienate the property
Limitations:
Art 581

8. Obligations of Usufructuary

1. At the beginning of usufruct or before exercising the usufruct

a. To make inventory – because at the end of the contract , usufructuary is required to return the things inside the immovable
Art 583

i. REQUISITES OF INVENTORY
1) Immovables described
2) Movables appraised – if there are movables, there must be appraisal

ii. EXCEPTION TO REQUIREMENT OF INVENTORY

1) No one will be injured thereby
Art 585
2) Title constituting usufruct excused the making of inventory
3) Title constituting usufruct already makes an inventory

b. To give a bond for the faithful performance of duties as usufructuary

 CAUCION JURATORIA – an oath taken/ made by the usufructuary that he would return whatever he received at the
end of the contract of usufructuary
 Alternative for the bond

i. No bond are required in the following:

1) No prejudice would result
Art 585
2) Usufruct is reserved by donor
Art 584
3) Title constituting usufruct excused usufructuary
4) If usufructuary takes possession under a caucion juratoria

ii. Effect of filing a bond

Art 588

iii. Effect of failure to give bond

Art 586 & 599

2. During the usufruct

a. To take care of the thing like a good father of a family

Art 589

Effect of failure to comply with obligation

Art 610

b. To undertake ordinary repairs

Art 592
ORDINARY REPAIRS - the law imposes upon the usufructuary the obligation to make the ordinary repairs needed by the thing
given in usufruct and should he fail to make them after demand by the owner, the latter may make them
at his expense. Clearly, therefore the expenses incurred for the making of the ordinary repairs are to be
borne by the usufructuary
-req: 1. It is required by the wear and tear due to the natural use of the thing
2. it is indispensable for the preservation of the thing
* if both is not satisfied, then the repair is considered “extra-ordinary”

c. To notify owner of need to undertake extra-ordinary repairs- if made through text, email, etc – there must be proof of receipt
 Art 593
EXTRA-ORDINARY REPAIRS - shall be made at the expense of the owner. If the owner makes the extra-ordinary repairs, he has
the right to demand of the usufructuary payment of the legal interest on the amount expended
from the time they were made until the usufruct lasts
-the law does not oblige the owner to make extra-ordinary repairs even if the same are
indispensable for the preservation of the thing
1) Concept of extraordinary repairs
2) Naked owner obliged to undertake them but when made by owner, usufructuary pays legal interest on the amount
while usufruct lasts
Art 594, 1st Par
3) Naked owner cannot be compelled to undertake extraordinary repairs
 If indispensable and owner fails to undertake extraordinary repairs, it may be made by usufructuary;
 Repairs usufructuary rights
Art 594, 2nd Par

d. To pay for annual charges and taxes on the fruits – real property tax ( because he is still the owner)

e. To notify owner of any act detrimental to ownership - may file actions to protect his possession (example: Quieting of title)
except: accion reinvindicatoria
Art 601

f. To shoulder the costs of litigation re usufruct

Art 602

g. To answer for fault or negligence of alienee, lessee or agent of usufructuary

Art 590

3. At the time of termination of the usufruct

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

9. Special Cases of Usufruct

a. Usufruct over a pension or periodical income

Art 570

b. Usufruct of property owned in common

Art 582

c. Usufruct of head of cattle

Art 591

d. Usufruct over vineyards and woodlands

Art 575-576

e. Usufruct on a right of action

Art 578

f. Usufruct on mortgaged property

Art 600

g. Usufruct over an entire patrimony

Art 598
Liability of usufructuary for debts

h. Usufruct over deteriorable property

Art 578

i. Usufruct over consumable property (or quasi-usufruct)

Art 574

10. Extinguishment of Usufruct

Art 603
a. Death of usufructuary
EXCEPTION: unless a contrary intention clearly appeals
- Right is NOT inherited by the heirs of the usufructuary

b. Expiration of period or fulfillment of resolutory condition imposed on usufruct by person constituting the usufruct
 Time may elapse before a third person attains a certain age, even if the latter dies before period expires – unless granted only
in consideration of his existence
Art 606

c. Merger of rights of usufruct and naked ownership in one person

- By marriage

d. Renunciation of usufruct
a. Limitations
b. Must be express
c. If made in fraud of creditors, waiver may be rescinded by them through action under Art 1381

e. Extinction or loss of property

a. If destroyed property is insured before the termination of the usufruct

Art 608

1. When insurance premium paid by owner and usufructuary

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

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

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

3. When insurance taken by usufructuary only depends on value of usufructuary’s insurable interest (not provided for in the
Civil Code)
i. Insurance proceeds to usufructuary
ii. No obligation to rebuild
iii. Usufruct continues on the land
iv. Owner does not share in insurance proceeds

b. If destroyed property is not insured

Art 607

1. If building forms part of an immovable under usufruct

i. If owner does not rebuild, usufruct continues over the land and materials
ii. If owner rebuilds, usufructuary must allow owner to occupy the land and to make use of materials, but value of
both land and materials

f. Termination of right of person constituting the usufruct

g. Prescription

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

h. What do not cause extinguishment of usufruct

a. Expropriation of thing in usufruct – remedy: owner must look for another property or thing which will be given to the
usufructuary for the unexpired portion of the contract of usufructuary
Art 609

b. Bad use of thing in usufruct

Art 810
Owner’s right

c. Usufruct over a building

- Condominium units
Art 607
Art 608
VIII. EASEMENTS OR SERVITUDES
A. Definition

EASEMENT or REAL SERVITUDES

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

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

a. It is a real right, i.e. it gives an action in rem or real action against any possessor of servient estate.

b. It is a right enjoyed over another property (jus in re aliena or “a right in the property of another) i.e. it cannot exist in one’s own
property (nemini nulli res sua servit or “no one can have servitude on a property of his own”).

c. It is a right constituted over an immovable by nature (land and buildings), not over immovables.

d. It limits the servient owner’s right of ownership for the benefit of the dominant estate – Right of limited use, but no right to possess
servient estate. Being an abnormal limitation of ownership, it cannot be presumed.

e. It creates a relation between tenements.

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

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

CHARACTERISTICS OF EASEMENTS
 it is inseparable from the estate to which it actively or passively belongs
 it is indivisible

h. It is inherent or inseparable from estate to which they actively or passively belong.

Art 617

i. It is intransmissible, i.e. it cannot be alienated separately from the tenement affected, or benefited.

j. It is indivisible.
Art 616

k. It has permanence, i.e. once it attaches, whether used or not, it continues and may be used anytime.

C. Classification of Servitudes

1. As to recipient of benefits

a. Real or Praedial
b. Personal
N.B.: Under Roman Law, usufruct together with usus habitatio, and operae servorum were classified as personal servitude]
Art 614

2. As to course or origin

a. Legal, whether for public use or for the interest of private persons
Art 634
b. Voluntary
3. As to its exercise
Art 615

a. Continuous
b. Discontinuous

4. As indication of its existence

Art 615

a. Apparent
b. Non-apparent

5. By the object or obligation imposed

Art 616

a. Positive
b. Negative
 Prescription starts to run from service of notarial prohibition

D. General rules relating to servitudes

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

E. Modes of acquiring easements

1. By title
 Juridical act which give rise to the servitude e.g. law, donations, contracts or wills

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

2. By prescription

F. Rights and obligations of owners of dominant and servient estates

1. Right of owner of dominant estate

a. To use the easement

Art 626
To exercise all rights necessary for the use of the easement
Art 625
b. To do, at his expense, all necessary works for the use and preservation of the easement
Art 627
c. In a right of way, to ask for change in width of easement sufficient for needs of dominant estate
Art 651

2. Obligations of the owner of dominant estate

a. To use the easement for benefit of immovable and in the manner originally established
Art 626
b. To notify owner of servient estate before making repairs and to make repairs in a manner least inconvenient to servient
estate
Art 627
c. Not to alter easement or render it more burdensome
Art 627
 d. To contribute to expenses of works necessary for use and preservation of servitude, if there are several dominant estates,
unless he renounces his interest
Art 628

3. Rights of owner of servient estate

a. To retain ownership and use of his property

Art 630

b. To change the place and manner of use the easement

Art 629, 2nd Par

4. Obligations of the servient estate

a. Not to impair the use of the easement

Art 628, 1st Par

b. To contribute proportionately to expenses if he uses the easement

Art 628, 2nd Par

G. Modes of extinguishment of easements

Art 631 Easements are extinguished by:

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

2. Non-user for 10 years

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

3. Extinguishment by impossibility of use

4. Expiration of the term or fulfillment of resolutory condition

5. Renunciation of the owner of dominant estate

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

6. Redemption agreed upon between the owners

7. Other causes not mentioned in Art 631

a. Annulment or rescission of the title constituting the easement
b. Termination of the right of grantor
c. Abandonment of the servient estate
d. Eminent domain
e. Special cause for extinction of legal easement of rights of way; if right of way no longer necessary

H. Legal Easements

1. Law governing legal easements

a. For public easements

i. Special laws and regulations relating thereto
1) PD 1067 – Water Code
2) PD 705 – Forestry Reform Code
ii. Provisions of Chapter 2, Title VII, Book II of CC (Legal Easements)

b. For private legal easements

i. By agreement of the interested parties whenever the law does not prohibit it and no injury is suffered by a 3rd person
ii. By the provisions of Chapter 2, Title VII, Book II of CC (Legal Easements)
2. Private legal easements provided for by the New Civil Code

a) Those established for the use of water or easements relating to waters

1) Natural drainage of waters

Art 637

2) Easements on lands along riverbanks

Art 638
See Water Code

3) Abutment of a dam
Art 639

4) Aqueduct
Art 642-646

5) Drawing waters and watering animals

Art 640-641

6) Stop lock or sluice gate

Art 649

b) The easement of right of way

Art 649-657

c) The easement of party wall

Art 658-666

d) The easement of light and view

Art 667-673

e) The easement of drainage of buildings

Art 674-676

f) The easement of distance for certain constructions

Art 677-681

g) The easement against nuisances

Art 682-683

h) The easement of lateral and subjacent supports

Art 684-687
BOOK III – DIFFERENT MODES OF
ACQUIRING OWNERSHIP
Mode and Title Differentiated

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

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

Modes of Acquiring Ownership

ORIGINAL MODES
 Which produce the acquisition of ownership independent of any pre-existing right of another person, hence, free from any
burdens or encumbrances

a. Occupation
b. Intellectual creation

DERIVATIVE MODES
 Based on a right previously held by another person and therefore, subject to the same characteristics, powers, burden etc as
when held by previous owner
 Law - e.g.
o Registration under Act 496
o Estoppel of title
Art 1434
o Marriage under ACP
o Hidden treasure
o Accession
Art 445
o Change in river’s course
Art 461
o Accession continua over movables
Art 466
Art 6681
Art 1456
Art 120

a) Donation
b) Succession
c) Prescription
d) Tradition

REQUISITES:
(1) Pre-existence of right in estate of grantor
(2) Just cause or title for the transmission
(3) Intention (of both grantor and grantee)
(4) Capacity (to transmit and to acquire)
(5) An act giving it outward form, physically, symbolically or legally

LEGAL MAXIM: “Non nudis pactis, sed traditione, dominia rerum transferentur” (Not by mere agreement, but by delivery, is ownership
transferred.)

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

a. Not applicable to ownership of a piece of land

Art 714

b. Privilege to hunt and fish regulated by special law

Art 715

c. Occupation of a swarm of bees or domesticated animals

Art 716
Art 560

d. Pigeons and fish

Art 717

e. Hidden treasure
Art 718
Art 438
Art 439

f. Lost movables
Art 719
Art 720

Procedure after finding lost movables

Intellectual creation
Intellectual Property Code (RA 8293)

Intellectual Property Rights (IPR):

a. Copyright & related rights
b. Trademarks & service marks
c. Geographic indications
d. Industrial designs
e. Patents
f. Topographies of integrated circuits
g. Rights of performers, producers of sound recordings & broadcasting orgs
h. Protection of undisclosed information
i. Laws repealed by the IPC
Sec 239 All acts and part of acts inconsistent with Intellectual Property Code, particularly:
 PD 49 – Intellectual Property Decree, including PD 285 as amended
 RA 165, as amended – Patent Law
 RA 166, as amended
 Arts 188 and 189 of the RPC
DONATION
Nature of donation
 A bilateral contract creating unilateral obligations on donor’s part

Requisites of donation

a. Consent and capacity of the parties

b. Animus donandi (causa)
c. Delivery of the thing donated
d. Form as prescribed by law

NOTE
 There must be impoverishment (in fact) of donor’s patrimony and enrichment on part of donee

Kinds of donation

1. As to its taking effect

a. Inter vivos
Art 729
Art 730
Art 731
b. Mortis causa
Art 728
c. Propter nuptias
Art 82, FC
Art 87, FC

2. As to cause or consideration
a. Simple
b. Remuneratory
c. Onerous – imposes a burden inferior to the value of property donated
i. Improper – burden equal in value to property donated
ii. Sub-modo or modal – E.g. imposes a prestation upon donee as to how property donated will be applied
Art 882
iii. Mixed donations – negotium mixtum cum donatione e.g. sale for price lower than value of property

3. As to effectivity or extinguishment
a. Pure
b. Conditional
Art 730
Art 731
 EFFECT OF AN IMPOSSIBLE CONDITION:
c. With a term

4. Importance of classification
a. As to form
b. As to governing rules
c. As to impossible conditions
Art 727
Art 1183

5. Characteristics of a donation mortis causa

a. Convey no title or ownership before donor’s death
b. Before donor’s death, transfer is revocable
c. Transfer is void if donor survives donee

6. Distinction between donation mortis causa and donation inter vivos

a. What is important is the time of transfer of ownership even if transfer of property donated may be subject to a
condition or a term
b. Importance of classification – validity and revocation of donation
Who may not give or receive donations

Art 735
Art 737
Art 738
Art 741
Art 742

Who may give or receive donations

Art 736
Art 739
Art 1027
Art 1032
Art 740
Art 743
Art 744

Acceptance of donation

1. Who may accept

Art 745
Art 747

2. Time of acceptance
a. of donation inter vivos
Art 746
b. of donation mortis causa

Form of donations

1. Personal property
Art 748

2. Real property
Art 749

3. Rules in Art 748 and Art 749 not applicable to:

a. Onerous donations
b. Modal donations
c. Mortis causa donations
d. Donations propter nuptias

What may be donated

1. All present property, or part thereof, of donor

a. PROVIDED, he reserves in full ownership or usufruct, sufficient means for support of himself and all relatives entitled to be
supported by donor at the time of acceptance
Art 750

b. PROVIDED, that no person may give or receive, by way of donation, more than he may give or receive by will
Art 752

Also, reserves property sufficient to pay donor’s debts contracted before donation, otherwise, donation is in fraud of
creditors
Art 759
Art 1387

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

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

b. Donations propter nuptias by an ascendant consisting of jewelry, furniture or clothing not to exceed 1/10 of disposable
portion
Art 1070

3. What may not be donated

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

Effect of donation

A. In general

SHOPPER’S PARADISE REALTY v ROQUE (2004)

1. Donee may demand actual delivery of thing donated

2. Donee is subrogated to rights of donor in property donated

Art 754

3. Donor not obliged to warrant things donated, EXCEPT in onerous donations in which case donor is liable for eviction up to the
extent of burden
Art 754

4. Donor is liable for eviction or hidden defects in case of bad faith on his part
Art 754

5. In donations propter nuptias, donor must release property donated from mortgages and other encumbrances, unless contrary
has been stipulated
Art 131, CC

6. Donations to several donees jointly - no right of accretion, EXCEPT

a. Donor provides otherwise
b. Donation to husband and wife jointly with right of accretion (jus accrescendi) UNLESS donor provides otherwise
Art 753

B. Special provisions

1. Reservation by donor of power to dispose (in whole or in part) or to encumber property donated
Art 755
2. Donation of naked ownership to one donee and usufruct to another
Art 756
3. Conventional reversion in favor of donor or other person
Art 757
4. Payment of donor’s debt
Art 758
a. If expressly stipulated
o Donee to pay only debts contracted before the donation, UNLESS specified otherwise
o But in no case shall donee be responsible for debts exceeding the value of property donated, UNLESS clearly intended
b. If there is no stipulation
o Donee answerable only for donor’s debt only in case of donation is in fraud of creditors
5. Illegal or impossible conditions
Art 727
Art 1183
Revocation and Reduction of Donations

A. Revocation distinguished from reduction of donations

Revocation Reduction

B. Causes of Reduction/Revocation

1. Inofficiousness of donation
Art 752
Art 771
Art 773
Art 911
Art 912

a. Who may ask for reduction

Art 772

b. Rule applied: If disposable portion is not sufficient to cover 2 or more donation

Art 773

2. Subsequent birth, reappearance of child or adoption of minor by donor

Art 760

C. Revocation only

1. Ingratitude

a. Causes
Art 765

b. Time to file action for revocation

Art 769

c. Who may file

Art 770

d. Effect of revocation

On alienation and mortgages

Art 766
Art 767

2. Violation of condition

a. Prescription of action

b. Transmissibility of action

YULO AND SONS v ROMAN CATHOLIC BISHOP OF SAN PABLO (2005)

3. Effect of revocation or reduction

Art 762
Art 764 Par 2
Art 767

4. Effect as to fruits

Art 768
LEASE
A. General characteristics of every lease

1. Temporary duration
2. Onerous
3. Price is fixed according to contract duration

B. Kinds of leases

1. Lease of things – movables and immovables

2. Lease of work or contract of labor

Art 1700
Art 1701
Art 1702
Art 1703
Art 1704
Art 1705
Art 1706
Art 1707
Art 1708
Art 1709
Art 1710
Art 1711
Art 1712

3. Lease of services

a. Household service

b. Contract for a piece of work

Art 1713
Art 1714
Art 1715
Art 1716
Art 1717
Art 1718
Art 1719
Art 1720
Art 1721
Art 1722
Art 1723
Art 1724
Art 1725
Art 1726
Art 1727
Art 1728
Art 1729
Art 1730
Art 1731

c. Lease of services of common carriers

Art 1732
Art 1733
Art 1734
Art 1735
Art 1736
Art 1737
Art 1738
Art 1739
Art 1740
 Art 1741
Art 1742
Art 1743
Art 1744
Art 1745
Art 1746
Art 1747
Art 1748
Art 1749
Art 1750
Art 1751
Art 1752
Art 1753
Art 1754
Art 1755
Art 1756
Art 1757
Art 1758
Art 1759
Art 1760
Art 1761
Art 1762
Art 1763

C. Lease of things

1. Concept
Art 1643

2. Consumable things cannot be the subject matter of lease

EXCEPT
Art 1645
a. Consumable only for display or advertising
(Lease ad pompam et ostentationem)
b. Goods are accessory to an industrial establishment

3. Special characteristics of lease of things

a. Essential purpose is to transmit the use and enjoyment of a thing
b. Consensual
c. Onerous
d. Price fixed in relation to period of use or enjoyment
e. Temporary

4. Lease distinguished from Sale, Usufruct, Commodatum

5. Period of lease – cannot be perpetual

a. Definite period – not more than 99 years

b. Indefinite period
i. Rural land
Art 1682
ii. Urban land
Art 1687

6. Assignment of lease
Art 1649

7. Sublease
Art 1650

a. House Rental Law (RA 9653)

b. Obligation of sublessee to lessor

Art 1651
 For rents
Art 1652

8. Rights and obligations of lessor and lessee

a. Obligations of a lessor
Art 1654
Art 1661

b. Obligations of lessee
Art 1657
Art 1662
Art 1663
Art 1665
Art 1668
Art 1667

c. Right of lessee to suspend payment of rentals

Art 1658

d. Right to ask for rescission

Art 1659
Art 1660

e. Lessor not obliged to answer for mere act of trespass by a 3rd person
Art 1664

9. Grounds for ejectment of lessee by lessor

Art 1673

Note the grounds under the House Rental Law.

QUERY: Are they still effective?

10. Right to ask for writ of preliminary mandatory injunction in unlawful detainer cases
Art 1674
Art 539, Par 2

11. Implied extension of lease

Art 1670
Art 1682
Art 1687
Art 1675

12. Right of purchase of leased land

Art 1676
Art 1677

13. Useful improvements in good faith made by lessee

Art 1678

14. Special provisions for leases of rural lands

Art 1680
Art 1681
Art 1682
Art 1683
Art 1684
Art 1685

15. Special provisions for leases of urban lands

Art 1686
Art 1687
Art 1688