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Joan Pernes

Sept 11, 2017 Taxation – real property tax, a tax law problem it may be the same
problem in civil law however the answer is different, ordinarily if in
All properties are things but not all things are considered property. civil law the property will be personal however in tax the property
Properties are subject to appropriation, if not, cant be considered is real. The reason is so that the gov’t can collect more taxes –
property. Meralco (steel towers) and office equipment of the company

Before air cannot be considered property, but now can be US vs Carlos


considered. Example: air in scuba.
Other classification of property is based on WON it is owned
Body parts can be considered property; can be sold (dead body – privately or public dominion, owned by the State, for public use
donated to medical schools.) (can be use by everybody, flyover, EDSA, bridge, airport, highway
such as TIPLEX) or pubic service (used by authorized government
There are two classifications of prop officials e.g. fire engine of BOF, tanks by the PH Army and the
Immovable (real prop) ambulance of the DOH, for the development of national wealth)
Movables (personal property) can also be considered chattels
Properties of public dominion of LGUs have a different
Lands and buildings can be mortgaged separately even if land classification; Article X of the Constitution; provinces, cities and
and building may be owned by the same person municipalites; divided into patrimonial property and public use
however there are different classification found in the Local
Par (5) can be immobilized by destination – must be done by the Government Code
owner of the tenement.
If the property is not anymore for public use, it must be
If done by owner of the machineries – still personal property reclassified as patrimonial property; patrimonial property are still
public dominion but owned by the LGUs in its private capacity
Par (7) Fertilizer actually used on a piece of land; if the fertilizer is
still in a box – personal property Shares of stock by a business are considered personal property
even if the business owned real property, the share of stocks of
Par (8) – waters may be the water in a swimming pool or water SMC, PLDT, Globe, PAL, Jollibee are all considered as personal
tank; there’s no qualification in art 415 that the waters either property
running or stagnant needs to be natural waters. The law does not
qualify neither should we. Sept 18, 2017

Par (10) these are incorporeal intangible rights. These rights are There are 7 rights of ownership
real rights and considered real property – by analogy 1. jus possidendi
2. jus utendi
4 kinds of immobilization 3. jus fruendi
1. nature 4. jus abutendi
2. incorporation 5. jus disponendi
3. destination 6. jus vindicandi
4. analogy 7. jus accesionis

Test of exclusion – if the prop is not in the list of 10 kinds of The 7 rights of ownership can be specifically referred to as 7
immovable, everything else is personal property. rights of private ownership.

(Par 3 of 416) – electricity can be subject to theft Art 3 of Consti Sec 1 – the property there is private property

It is imp to know WON prop is real or personal is because often Limitations of the right to private property
times, this is a threshold issue of many legal questions. It should 1. Police power – does not require just compensation
be determined first WON the property involved is real or personal. 2. Eminent domain – requires just compensation; citizen
prefers this power;
For example: • Eminent domain is the power; expropriation is
Civpro – proper venue where the action must be filed the procedure
Credit transaction – when the real prop can be a subject of real 3. Taxation
estate mortgage or antichresis, on the other hand if the personal
prop can be subject to a pledge Right to private property is also known as right to be selfish
because of the & rights of ownership – Mr. Santos can use his
Parties are allowed to state if real prop should be treated as toothbrush as he wants.
personal prop however it will not bind the 3rd parties like the
sheriff(he needs to follow the rules on execution and levy); parties Communists – do not want private property;
cannot change their minds because they are estopped • Sec 1 Art 3 of the Consti is a confirmation that the RP is
not a communist country because it allows private
Criminal Law – personal property object of robbery or theft but if property
what is stolen is real property and the prosecution files for robbery
or theft the case would be dismissed because it should be things 7 remedies to recover property aka jus vindicandi
that can be taken with intent to gain is personal property; if what 

was stolen were machineries, receptacles and instruments and it Personal property
was found out that immobilized by destination then the case would 1. Action for replevin – use to recover personal property (Rule
not prosper 60)

Joan Pernes

 scope, practically impossible to find something or even if
Real property there is there is uncertainty
2. Accion interdictal – ejectment (both seek to recover 4. Do not include things in their natural state, if what is found
possession de facto/physical or material possession; both fall is mineral in there raw state the rule will not apply; the raw
under the original and exclusive jurisdiction of MTC; both material will be owned by the state as prescribe by the
have the same prescriptive period of 1 year; both covered by Regalian doctrine
the rule summary proceedings)
a. Forcible entry – possession is illegal from the very
beginning; plaintiff must have prior physical possession
and then it was lost because the defendant employed Sept 21, 2017
FISTS; If FIT – 1 year pres will begin from the
employment of FIT; if SS – 1 year will start from the Rules on accession to apply, there has to be an owner of land and
discovery of SS a bps who are two different people. If the prop is a subject of co-
b. Unlawful detainer – the possession was in the beginning ownership – rules of accession will not apply because both parties
lawful and then later on unlawful example: lessee-lessor; co-owned the land so both parties are entitled to be BPS over
1yr period starts from the last demand letter their own property
3. Accion publiciana – remedy to recover real property when
what is sought to be recovered is the real right of possession Rules of accession presupposes that there are 2 different people
or the better right of possession also knows an possession of conflicting rights and interest; also presupposes that there is no
de jure or legal/juridical possession contract between them – if there is such a contract to sell/lease,
a. Different from accion interdictal - merely possession de then it will be the contract that will govern the relationship between
facto them.
b. Prescriptive period is 10 years and the court that has
jurisdiction is the RTC Art 448 and the rules on accession are applicable only
4. Accion reindivicatoria – Action for reconveyance – seeks to 1. in the absence of contract and when there are two different
recover both ownership and possession parties; will only also apply if
a. Prescriptive of period depends on the adverse possession of 2. There is really accession – when the two things cannot be
the defendant separated without any kind of damage – if the things can be
5. Writ of Preliminary Mandatory Injunction separated without damage then there is no true accession
6. Writ of Possession – remedy available to recover, land with quotation marks – then just give the two things to the
registration case after unregistered land originally registered, owners
successful registrant can file for this
a. Available after a foreclosure of a REM In accession there is a fusion or combination of the properties of 2
b. (7)Writ of Demolition – if there is a structure on top of the different people such that the properties cannot be separated
property; compliment to the writ of possession without some kind of injury or damage

Before a person can go to court there is the doctrine of self-help Accession continua with respect to real property
w/c is only available immediately or simultaneously when the prop 1. accession industrial – LO, BPS (charts)
is being taken from a person; similar to self-defense in the RPC; 2. accession natural – accretion, avulsion, change of course of
unlawful aggression, there is reasonable necessity of the means rivers, formation of islands
use to repel or prevent the unlawful aggression and lack of
sufficient provocation; won’t be available if there is a lapse of time The fruits (natural, industrial, or civil) - Accession discreta
Natural fruits – do not involves the intervention of man or
In all actions, the property must be properly identified; in case unprocessed by man
there is a conflict between the area and the boundary – the Industrial fruits – subject to human effort or intervention
boundary will prevail and the area will only be use to help in Civil fruits – result of investment such as rental income or interest
identifying the property;
- in case the evidence of the plaintiff and defendant is weak, First step to accession industrial w/ respect to real property
the defendant will win; plantiff must rely on the strength of his 1. determine WON the parties are in good faith or in bad faith –
evidence this is where the controversy is centered – it is not necessary
- plantiff:weak evidence – defendant:no evidence = the anymore to determine which is the principal or the accessory
defendant still wins (we know that the land is principal and whatever was built,
- equi-ponderance/equi-poise of evidence – parties evidence planted or sown is the accessory)
are both weak, the defendant will win 2. determine the status of the parties WON they are in GF or in
BF, if the characterization is wrong then everything else
Tax declaration are not conclusive evidence; only when it is would be wrong this is because once the status of the parties
coupled with actual possession as to WON they are in GF or BF everything else becomes
automatic or mechanical
Hidden treasure – a. once the status of tha parties is determined, more
- treasure must be hidden particularly WON they are GF or BF, their rights and
- must be money, jewelry, or other precious object obligations are already automatic (CHARTS)
- lawful ownership of which does not appear – refers to the
object itself, no indication on who the owner is, must not Problem in the court is when both parties are in good faith/
contain initials the name of Mr. Nepumeceno innocent – both good people; if one of them are in BF he or she is
- A438 – rules not given any right – all the rights are given to the party in
1. Finder gets ½, the land owner gets ½ goodfaith
2. If the finder is a trespasser he gets nothing, the land
owner gets everything A448 both the LO and BPS are in goodfaith, LO not aware that
3. By chance – there cannot be a deliberate search (it is not there there is something built, planted or swon and the BPS
by chance) or by chance is considered to have a broader
Joan Pernes
doesn’t know that the property is owned by somebody else such There are 7 rights of ownership
as the case with the mother-in-law told the son-in-law to just build
- if the LO is in GF, the BPS in GF – the LO has 2 options Right of accession gives the owner the right to everything
5. appropriate(to buy) whatever has been built, planted or produced thereby (sir started to write on the white board)
sown
6. to sell the land, however the LO cannot exercise this if the SEE CHART!!!
value of the land is considerably more than that of what
was built; reason: quite possible that what was built cost Accession Discreta - Everything that is incorporated or attached
200php, and the land is 2Mphp so its not fair to compel
the BPS to buy the land = they can agree on voluntary Accession Continua – movable and immovable
lease, if they can’t agree Courts will intervene and there - attached or incorporated either artificially or naturally
will be a forced sale; the only time the LO can eject the - accession industrial – (points to the blackboard)
BPS is when they don’t pay rent.
- If the LO is in GF, and the LO in BF – the LO has 3 options The owner gets all of these things by operation of law (??? Sir
7. “To buy” but really he gets it for free as a penalty for the points something at the blackboard)
BPS
8. to sell his land – it doesn’t matter whether the value of the 7 modes of acquiring ownership (A712) LODTIPS
land is considerably more than that of the buildings or 1. loyalty
trees 2. occupation
9. “I don’t want the building and I don’t want to sell my land” 3. donation
– demolish or remove what was built, planted or sown 4. tradition
5. intellectual creation
If there is an OM involve, the LO can be subsidiary liable for the 6. prescription
value of the materials used, 3 requisties 7. succession
1. OM has to be in GF, if he is in BF he can’t go after the LO for
subsidiary liability (cause a party in BF has no rights as a Acquisitive prescription is based on possession.
general rule) Based on adverse possession (not friendly) – when the possessor
2. BPS has to be insolvent, if not then the OM cannot be claims ownership over the property. If the possession of the
subsidiary liable adverse possessor is open public not secret not clandestine,
3. the LO must exercise Option 1, w/c is to buy the building; if notorious (everybody knows it), peaceful, continuous
option 2 the LO can’t be subsidiary liable because if the LO uninterrupted in the concept of an owner
sells his land he doesn’t enjoy or benefit from the materials of - required # of years 4/8 if personal property; 10GF/30BF
the OM since he sold his lot hence he can’t be subsidiary for real property.
liable
If the possessor fulfills the requirements of acquisitive prescription
Question: when the LO chooses Option 2, and the BPS refuses to and is patient enough to hold on to the property, the law will
buy the land, sir, can you elaborate on that? And when can the LO punish the real owner and take ownership away from the real
eject the BPS owner and give it to the adverse possessor as a reward for his
patience. The law takes away ownership from the real owner
BPS has no choice, because the right of choice is granted by law because he did nothing for 4/8 years or 10/30 years.
to the LO. The rules on accession doesn’t require the consent of
the BPS, if the BPS consent then if will be a contract and When 2 or more persons are owners of an undivided thing or
whatever they agree to will govern them. right, there is co ownership. The law does not encourage co-
ownership, there may be conflict of rights and will lead to dispute.
Accession rules presuppose that they disagree, they are both (codal and pizza example; nag-mumultiply yung rights to how
good people but they don’t agree on what to do and the law says many owners there are and since iba-iba ang gusto ~ mag-aaway)
that the one who will be followed is the LO. Why is the LO given
the right of choice? Because of the principle that the principal Action for partition to terminate the co-ownership does not
follows the accessory, the accessory being whatever was built, prescribe. But when the law state that there is it refers to
planted or sown and the principal being the land, and that is the extinctive prescription.
right of the LO is older (whatever that means lol).
2 kinds of partition (Rule 69 of RoC)
What happens if the LO refuses to make a choice? The Court 1. extra judicial – out of court; preferred; based on
would give the LO a deadline to make a choice, if he doesn’t consent/agreement between or among co-owners
make a choice it will constitute as contempt because he 2. judicial – in court; two stages –
disobeyed a lawful order of the Court. The property dispute cannot a. Determining WON a co-ownership exists
remain unresolved. b. Actual partition

The BPS, the TC or the SC cannot make the choice. Acts of preservation – consent is no longer needed
Acts of administration – he needs the consent of the financial
Partur sicatur ventre(DI KO ALAM SPELLING) majority – not necessarily the numerical majority
- applies to accession discreta, fruits of an animal –
offspring, 6 owners: (book Php 100) = 2- 25 and 4- 12.50
- the ownership of the offspring will belong to the owner
of the mother The two co-owners can out vote the others. Their decision will
prevail.

Oct 5, 2017 Acts of alteration – unanimous consent of all is necessary, this is


because an act of alteration is an act of ownership. (swimming
Joan Pernes
pool to a fish pond, nature of prop being change so everyone’s When an agent converts or misappropriates the property of his
consent is needed). principal its not theft, its estafa. Bank teller on the other hand
should be charged with theft, possession is not juridical
If not agreement is reach regarding the alteration then the courts possession.
will settle; in the acts of preservation – the co-owners must notify
the others. OLDTIPS
T – tradition – seen in the law of sales, sale - not a mode of
The co-owner can have an agreement to keep a thing undivided acquiring ownership
for a period not exceeding 10 years. If agreement is more than 10 - delivery – constructive
years – 10 year period will be valid, the extra will be null and void. 10. traditio brevi manu – lessee buys the property and
(E.g. 15 years to keep it undivided, only the 5 year excess will be becomes the owner
null and void). 11. traditio longa manu – delivery by pointing, like Magellan
- They can keep on renewing the agreement, so along as each 12. constitutum possessirum – owner becomes a mere
renewal does not extend 10 years. possessor, opposite of brevi manu
13. traditio symbolica – delivery of the symbol like the keys of
If donor who gives the instruction not to partition the thing donated a car or signing a contract or public document
– the instruction of the donor must not exceed 20 years. - what transfer ownership is the delivery of the objects, can be
- Testator – same rule as a donor actual or the 4 above

The law says no prescription(acquisitive) will run in favor or In co-ownership there must be a distinction between the property
against a co-owner (refers to acquisitive prescription) w/c is the subject of the co-ownership and the abstract idea or the
- Why: possession of a co-owner is not adverse, possession is spiritual, metaphysical, fractional, pro rata share of a person
friendly, each are called trustee and the law presumes that - Mr. Santos gets 10php from 10 students of this class to buy
they are not enemies PIZZA, 10 slices
- No one in the class can point to any particular slice as his or
Acquisitive prescription will start to run the moment there is her own because the pizza hasn’t been partitioned but
repudiation (rejection) by a co-owner. everybody has a 10% interest or share in the pizza
- When a co owner repudiates the co ownership, he is - A co-owner has absolute total ownership and has 7 rights of
rejecting the co-ownership and basically saying the entire ownership over the ideal share or the 10%, that’s why one
property is mine and mine alone. He is rejecting the claim of can sell his 10% share to someone from the other section w/
the other co-owners; he claims TOTAL ownership o asking permission from anybody. However, no co-owner
can sell the entire pizza to the other class.
Once a co owner repudiates the co ownership and has - If a co-owner sells to another person in the other section, the
possession of the property, his possession is already adverse to co-owners can buy back or redeem the 10%, because the
his fellow co owners classmate here might not want somebody or a 3rd party
stranger to be part of the co-ownership. 30 day period of
Four requisites in order for acquisitive prescription to be available redemption and whoever sells must inform the others, if the
to a co owner other co-owners doesn’t know the 30day period doesn’t start
1. there must be a clear and unequivocal act of repudiation to run, it only starts from the time he gives written notification
amounting to an ouster of the fellow co-owners of a co owner to all the other co-owners.
of the trust entrust to him. - Redeeming is getting back –D. Annie Tan case, once the
2. Repudiation must be made known to the other co-owner. bank foreclosed the property there was a 1yr redemption
3. The evidence must be clear and conclusive period however since the co-owners failed to redeem the
4. All the other requirements for acquisitive prescription must be ownership was transferred to the bank, so the bank became
present- particularly the lapse of time. the owner, so there was no co-ownership anymore
- If one co-owner was able to redeem a prop for everyone’s
Four degrees of possession benefit, it is considered an act of preservation and the one
1. possession without any title whatsoever; such as title of a who redeems is entitled for reimbursement from his or her
thief fellow co-owners; benefit of all and said person advanced
2. possession with juridical title; lessee/pledgee the money
3. possession with just title; possession required in acquisitive
prescription Acquisitive prescription – involving real property, when will the 10
4. possession with true and valid title; possession in the concept yr period or 30 year period will start to run?
of an owner GR: registration by the co-owner of the property solely on his
name (this is a repudiation), even if the other co-owners doesn’t
A person can be an owner without having possession know about it. Basis for this rule is registration is constructive
A person can be a possessor without being the owner notice to the entire world, everybody is notified
XPN: if there is actual fraud employed against the co-owners,
Concept of ownership is different from the concept of possession case of Adille, Mariategui and Delima; prescriptive period runs
after the discovery of the fraud
Possession de jure – is the legal or juridical possession (sought to
be recovered in accion publiciana – remedy to recover the better
or real right of possession)
Possession de facto – is physical or material possession (sought
to be recovered in accion interdictal – ejectment cases)

Repudiation vs Redemption (different from each other)


In estafa – juridical possession Repudiation – is rejection
In theft – physical or material possession Redemption – taking back the interest; preserve the co-onwership
and prevents 3rd party to enter
Joan Pernes
- Only available when a co-owner sells to a third party
- When a co-owner sells to a fellow co-owner, there is no
right of redemption, case of the in-laws

Co-ownership basis for partnership and corporation


Corporation – undivided thing or right with a pool of assets, has a
separate juridical personality, every co-owner can sell his share
(share of stocks) however no shareholder can pinpoint an asset
as his own until partition or dissolution
Partnership – element of trust and confidence, one cannot enter
or exit w/o the consent of everyone in the partnership

Estate of a decedent also base on co-ownership


- When a person dies his entire estate is an undivided
thing or right until the estate is divided, all the heirs are
called co-heirs because they are co-owners of the
entire estate of the decedent; until it is partitioned no
heir can point a part of the estate as his or her own

Document lawyers use deed of extrajudicial partition/settlement


- CC uses partition, ROC uses settlement of estate but
its the same

Tacking – concept where the previous possessor can add his


possession to the possessor now, so if a person needs 4/8 yr or
10/30yr, he doesn’t need to wait till all the years have been
covered this is because he can use the period use by the previous
possessor. However it is only available if there is privity of
relationship, cannot be used if current possessor is a thief. Privity
- seller: buyer, donor: done, decedent: heir.

Look at the possession of the current possessor Convert the 3yrs


in good faith into bad faith years: MULTIPLY
There must be privity if not tacking is not available

REAL PROPERTY

A(old) GF 3 GF 9 BF 1 BF 3

B(new) GF 7 BF 21 GF 9 BF 27

10 30 10 30

PERSONAL PROPERTY

A(old) GF 3 GF 6 BF 1.5 BF 3

B(new) GF 1 BF 2 GF 2.5 BF 5

4 8 4 8

*All via acquisitive prescription (extinctive prescription – Statue of


Limitiations, set of deadlines for a person to ask the Court for
help)

Question re: financial majority = assuming all are joining forces


e.g. 1 = 50, but all the rest joined forces then the same
1 = 75, the rest cannot beat the 1

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