Professional Documents
Culture Documents
2011-2012
I. DEFINITION OF TERMS
Property Thing
Property - any physical or real, juridical, and legal entity of being capable of becoming the subject matter or objective terminus of a juridical relation (Sanchez Roman) Object for a validity of a contract. Can be appropriated Thing - any object that exists and is capable of satisfying human needs. -includes both objects that are already possessed or owned and those that are susceptible of appropriation REQUISITES OF PROPERTY (U-S-A) 1. Utility 2. Substantivity - has a separate or autonomous existence 3. Appropriability *not all kinds of things are property, all kinds of property are things Examples: 1. Kidney of a human being, thing or property?!? We must determine first W/N it can be sold. If it is a property, no problem because it can be appropriated. If it is a thing, the validity of the sale can be attacked because the object of the sale is outside the commerce of men. * outside the commerce of man , illegal * health and sanitation purpose *can only be donated to Filipinos 2. Corpse (usually found in med school) - thing, not susceptible of appropriation - in reality there might be illegal transactions, legally speaking it is not subject to sale (connect to OBLICON, elements of a valid contract: consent, object- within commerce of man, cause)
Movable Immovable
Art. 414. All things which are or may be the object of appropriation are considered either: (1) Immovable or real property; or (2) Movable or personal property
Example: a. chair in classroom - Is it the owner who placed it there? How relevant is a chair to the industry (education)? Have you been to a classroom without a chair? b. trash can - Can we still conduct classes eve if we do not have trash can? c. Vendo Machine - Is it relevant to our education? 2. ornaments - the person who introduced it is important, must be the owner. The intention to attach the property permanently is also important. Example: a. Statue of St. Raymond and Mother Perpetual - Is it important? OPKORS! It is an ornament, UST is a catholic school, intention of attaching it permanently without being transferred. Elements of Real Property by Destination 1. owner introduced it 2. necessary to the trade or industry, or even if not necessary there is the intention of attaching the property permanently
2. BY ANALOGY
Art. 417. The following are also considered as personal property: (1) Obligations and actions which have for their object movables or demandable sums; and (2) Shares of stock of agricultural, commercial and industrial entities, although they may have real estate.
Fungible Consummable
Q: Why do we need to classify property as real or personal? Why is it important? A: Because different provisions of law deals with different kinds of property. You dont believe me? Here are some examples: a) Credit Transactions If you want to obtain loan and you give your house to creditor as collateral, that is a REAL ESTATE mortgage. If you give your car as collateral, that is CHATTEL mortgage. b) Criminal Law The RPC defines theft as the unlawful taking of personal property with intent to gain. If its real property, it can be unlawful detainer or usurpation. (still not convinced?!? Eto pa isa) c) Taxation Tax on your land is REAL ESTATE tax, AMILYAR.
Art. 418. Movable property is either consumable or nonconsumable. To the first class belong those movables which cannot be used in a manner appropriate to their nature without their being consumed; to the second class belong all the others.
Consummable - cannot be used in a manner appropriate to their nature without being consumed. Mam LR: What do you mean without being consumed? In Philosophy, it is a number one rule that you do not use the rootword in the definition. Clearly, our legislators are not philosophers (very bright talaga si Mam! So in light of this BS definition given by the law, she formulated a formula (haha!) to determine consummability.)
In order to determine consummability: 1. Is there a reduction or decrease in the the quantity? - if you borrow the sign pen of your classmate because you are very burara you dont even have a pen, look at the ink, there is a decrease in the quantity! Unjust enrichment took place! Pay your classmate because you used the ink! UNJUST ENRICHMNET! 2. Is there a physical destruction of the property? - Example talaga ni Mam yun kandila at posporo, but I have another example YOSI! 3. Is there deterioration of the thing? - If you are washing your clothes, look at the water, not as clear as before? Well, that is the deterioration we are talking about. You cannot use the same water to drink or to take a bath unless you have a non-functioning mind
Fungible- property that can be replaced by another property of the same kind or quality. replaceable by equal quantity either by agreement or by nature Q: What kind of contract will require fungible goods? A: Contract of Loan! In credit transactions (mutuum), obligation of the debtor to return the value of the money he borrowed, but not the same money. Q. What kind of goods in a commodatum? A. Non-consumable. In a commodatum, the bailor delivers to the bailee the exact thing that the bailee left in his possession.
CASES Harty vs. Mun. of Victoria Plaza of the Church is property of public Dominion, therefore it cannot be alienated, sold, in short, it is outside the commerce of men. Ocsio vs. CA The Supreme Court held that Patrimonial Property may be acquired through prescription. A religious corporation is a juridical person, it can also acquire property Heirs of Sps. Palanca vs. Republic The subject parcel of land in this case is forest land, being a property of public dominion cannot be owned by private individuals.
CLASSIFICATION OF THINGS *RES - latin word for property Res Nullius- belongs to no one, not yet appropriated but susceptible to appropriation. - Look in the Botanical Garden of UST, you will see butterflies, salagubang, spiders etc If you want to get these poor insects and then a Dominican Father will reprimand you, Tell him Father, these are res nullius, nobody owns them. Res Communesbelonging everyone air, sun moon to
CASES Premier Bank vs. CA A purchaser of a property cannot be in good faith where the title thereof shows that it was reconstituted Banks, being in the business of extending loans secured by real estate mortgage, is familiar with rules on land registration , and as such, it is expected to exercise more care and prudence than private individuals in their dealing with registered land that Premiere Bank accepted in mortgage the property in question notwithstanding the existence of structures on the property and which were in actual, visible and public possession of a person other that the mortgagor, constitutes gross negligence amounting to bad faith. Cua vs. Vargas
Res Derelicta - abandoned property with the intention of no longer owning them garbage Res Alicujus - tangible or intangible things which are owned privately, either in a collective or individual capacity, belonging to someone Builder/Possessor in Good Faith Builder/Possessor in Bad Faith *Good Faith: In the Family Code - Authority of Solemnizing Officer must be mistake in fact not mistake in law. In Property - the belief that the person from whom he received the thing was its owner and could transfer valid title thereto. Builder in Good Faith - builder is considered in good faith if he thought that the land was his. Builder is also considered in good faith if he constructed on the land of another with the consent of that landowner.
Petitioner derived his title from the Extra-Judicial Settlement Among Heirs and he was very much aware that not all of the heirs participated therein as it was evident on the face of the document itself. Because the property had not yet been partitioned in accordance with the Rules of Court, no particular portion of the property could have been identified as yet and delineated as the object of the sale. This is because alienation made by respondents coheirs was limited to the portion which may be allotted to them in the division, upon termination of the co-ownership. Despite this glaring fact, and over the protests orf respondents, petitioner still constructed improvements on the property. For this reason, his claim of good faith lacks credence.
REMEMBER: Real Right = Action in REM it is attached to the property whoever the owner may be. The court will proceed to try the case even without defendant. E.G. In judicial foreclosure, the court will continue the proceedings even without the presence of the owner. You do not need the owner to foreclose the property. Personal Right = Action in PERSONAM The right is attached to the person. If person dies, no more right. It ceases upon the death of the person The court will not acquire jurisdiction unless the person submits himself before it. GEN. RULE. Right to Lease & Right to Usufruct are REAL RIGHTS. XPN: it may be stipulated in the contract that when the lessee or the usufruactuary dies before the end of the lease or usufruct period, the owner of the property may pre-terminate the contract, hence the heirs of the lessee or usufruactury must evacuate the property.
Useful Expenses - refer to those which increase the productivity or raise the value of the thing. REMEMBER: In all contracts, CONSENT from the owner is necessary for the owner to be
of
Ornamental/Luxury Expenses - refer to those which add to the value of the thing but is neither essential to the preservation nor useful to anybody in general. REMEMBER: In all contracts, the luxury expense is ALWAYS shouldered by the one who introduced it. No right to demand reimbursement from the owner. *In contracts you usually see: 1. Ordinary expense - due to the ordinary wear and tear, shouldered by the person enjoying the possession of the property. e.g. light bulbs, gasket in faucet 2. Extraordinary expense - equivalent to necessary expense, owner will be responsible e.g. leaking roof TAKE NOTE: WHO SHOULD BE RESPONSIBLE FOR DIFFERENT KINDS OF EXPENSES IN CONTRACTS THAT INVOLVES TEMPORARY TRANSFER OF OWNERSHIP?!?
Ownership Possession
OWNERSHIP - may be exercised over things or right (Art. 427) The independent and general right of a person to control a thing particularly in his possession, enjoyment, disposition and recovery subject to those established by law no restrictions except those imposed by law or private persons right to dispose, enjoy, recover the thing without further limitations
Art. 23 (Civil Code) - even when an act or event causing damage to anothers property was not due to fault / negligence of defendant, the one who was benefited will be liable.
Doctrine of Self-Help
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.
Liable - pro-rata proportionately 2. Remember Ondoy? The authorities released water to prevent damage to dam. 2. People inside elevator then there was a blackout. The elevator will be destroyed.
*enjoyment of property is limited if it will rd prejudice the rights of 3 persons. *even if you are the owner, you do not have absolute enjoyment, think of others Restrictions by the State: Q: Can you bury a corpse in your backyard? A:No, this is not allowed because of sanitation purposes.
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-any hidden & unknown deposit of money, jewelry or other precious objects, the lawful owner of which does not appear -discovered by chance By chance - good luck Doesnt preclude a finder who purposely hunt for hidden treasure
Gen.Rule. - If owner finder, totally belongs to the owner of land, bldg. / property XPNs. Finder different from owner, entitled to 1. discovered in property of another 2. discovery by chance
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Art. 441. To the owner belongs: (1) The natural fruits; (2) The industrial fruits; (3) The civil fruits. Art. 442. Natural fruits are the spontaneous products of the soil, and the young and other products of animals. Industrial fruits are those produced by lands of any kind through cultivation or labor. Civil fruits are the rents of buildings, the price of leases of lands and other property and the amount of perpetual or life annuities or other similar income.
III. ACCESSION
Accession Accessory Accession - not a mode of acquiring ownership (book 3 of NCC enumerates the modes of acquiring ownership, accession not include) -simply an extension of ownership over a thing to whatever is incorporated thereto naturally or artificially (with or without human labor) - Can happen both in real and personal property - fruits of or additions to improvements upon the principal Remember ( API ) Attached, Produced, Incorporated Note: Accession exists if the incorporation is such that separation would seriously damage either thing or diminish its value
Accessories - ornaments to add beauty and may be removed without causing injury Example : Ladies - those attached from head to foot are accessories - lahat ng pwedeng mapagsabitan / matusukan Reason: before you sleep, you can simply remove them.
Q: To whom will the fruits belong? A: Gen.Rule: 1. If you are the Owner of the property, you are entitled to the fruits of the property 2. Possessor in good faith, entitled to the fruits 3. Others who are still entitled to fruits: a. usufructuary Right to possess Right to use Right to enjoy b. antichresis creditor Antichresis - kind of security where in what is used in the security is fruits of the property to answer for the interest in the loan of a thing. - If no interest agreed upon, the fruits will be used to answer for the principal obligation c. lessee - if there is no express prohibition against sublease, is entitled to the fruits. 2. Accession Continua - by external forces (building, alluvium, etc.)
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With Respect to REAL PROPERTY 2.1 Accession Industrial - by the work of man (building, planting, sowing) - Involves a person who through building, planting or sowing, introduces an improvement on the property. 3 Categories of Builder/Planter/Sower 1. Landowner is the B/P/S, who is different from the owner of the material. (2 Personalities) Land owner B/P/S OM (owner of the material) 2. Landowner is different from the B/P/S who is the owner of the material. (2 Personalities) Land owner B/P/S OM 3. Landowner different from BPS, different from owner of the material. (3 personalities) landowner B/P/S OM Guidelines: 1) Is there really accession? - Remember the definition of Accession, whatever is Attached, Produced or Incorporated (A-P-I) 2) Accessory follows the principal - How will you apply? G.R. - owner of the real property w/n good faith or bad faith has the right to own whatever he planted, built or sowed in the property. Reason: Because of the principle that accessory follows the principal Example: a) between Land vs. building/planted/sowed land = principal Whatever is built, planted or sown = accessory Reason: because the land can exist by itself w/o any building or plant bldg. /plant cannot exist w/out being attached to the land b) hanging plant (on air)? *does not apply Gen. Rule - In BPS, whatever is planted on the soil should be attached to the land *Tignan ang definition!!! wag tamad 3) Whoever is the owner of the principal is the owner of the accessory.
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In relation to useful expense *good faith = can demand reimbursement from owner of property *bad faith = not demandable CASES Ballatan vs. CA The right to choose between appropriating the improvement or selling the land on which the improvement of the builder, planter or sower stands, is given to the owner of the land. In the event that the owner elects to sell to the builder, planter or sower the land which the improvement stands, the price must be fixed at the prevailing market value at the time of payment This case is not for expropriation. This is a case of an owner who has been paying real estate taxes on his land but has been deprived of the use of a portion of this land for years. It is but fair and just to fix compensation at the time of payment. Sulo Sa Nayon Inc. vs. Nayong Pilipino Foundation This article [Article 448] is manifestly intended to apply only to a case where one builds, plants, or sows on land in which he believes himself to have a claim of title, and not to lands where the only interest of the builder, planter or sower is that of a holder, such as a tenant. In the case at bar, petitioners have no adverse claim or title to the land. In fact, as lessees, they recognize that the respondent is the owner of the land. What petitioners insist is that because of the improvements, which are of substantial value, that they have introduced on the leased premises with the permission of respondent, they should be considered builders in good faith
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2.2. Accession Natural - by nature Involves: Alluvium -A Avulsion - A Uprooted trees - U Abandoned river beds - A Q. How come they are called accession natural? A. Because w/o human intervention something is added/attached to the property. Example: beach - seashore -watch the movement of water, the sediments upon the movement of H2O it will either be washed away or it will stick to the sand. Q. How did the alluvium / avulsion take place? A. Those sediments that accumulated on the seashore due to the force of the water. Q. Who now owns the sediment? A. Owner of the property where the sediments accumulated. Under the provisions of property, specifically alluvium: Alluvium- small particles of soil are being washed away by the movement of H2O w/out the owner of the real property knowing it. -real property must be located near the river -There is an increase in the area of owners property, that increase is due to alluvium - not identifiable w/ that of real property In relation to Land Registration Act Even if the civil code says that the owner of the real property, where all those particles are gradually deposited & attached can make owners ship through it, LR Act says that a resurvey must be done to include it in the technical description *intention of the law: not only 1 grain of sediment, those accumulated sediments *it is different if what is attached to the real property is an identifiable portion of a real
Reason: the owner of the real property where that identifiable portion has been separated has the right to claim it within 2 years. Once 2 years has lapsed, the owner of the neighboring property where the identifiable portion is now attached, can fully claim ownership, it can now be a notice to the world subject to resurvey to include it in the technical description in your title. ALLUVIUM deposit of soil is gradual unidentifiable belongs to owner of property to which it is attached malumay = gradual AVULSION sudden or abrupt process identifiable belongs to owner from whose property it was detached maragsa = with force
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Art. 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) Art. 465. Islands which through successive accumulation of alluvial deposits are formed in non-navigable and nonfloatable 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.
-owner of real property where the uprooted tree can now be found cannot claim ownership -original owner of the uprooted tree is given 6 months from the time it is uprooted -in the province, they convert it into furniture Delayed accession because of 6 month period given to owner to redeem the tree natural
Q: Juan has property near a body of water, 2 years after an island was formed near property of Juan. Can Juan claim ownership over the island? A: It depends if the body of water is: Navigable - Absolutely No!!! Remember the regalian doctrine?!? Right of way of boats and ferries. Non-navigable - depends again if: a. Nearer to Juans property, he is the SOLE owner b. If equidistant or the island is located at the center - by operation of law, CO-OWNERSHIP will apply. 1. Formed by the sea: a) within territorial waters - STATE b) outside territorial waters - FIRST OCCUPANT 2. Formed in lakes or navigable or floatable rivers - STATE 3. Formed in non-navigable or non-floatable rivers: a) equidistant from both banks (measured from the islands margins) - to the riparian owners by half (co-ownership) b) nearer one margin or bank - to the nearer riparian owner. Riparian Owner - owner of land located on the bank of a river or stream (or occasionally another body of water, such as a lake) Littoral - relating to the coast or shore of an ocean, sea or lake
Art. 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.
-applies in the province -not applicable in Manila (canal is not a river bed) -natural change in course biglang liko due to it, the abandoned river bed is now the subtitle of the area affected by the natural change in course EXCHANGE DEAL
Reason: For being fair, even if it is very far, abandoned part will be an exchange of the area affected. PRINCIPLE OF UNJUST ENRICHMENT!
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With Respect to PERSONAL PROPERTY There is Accession if it will cause injury to property, if no injury it is only accessory. Example: pair of glasses - it is composed of several properties merged together Frame, glass/lens, nose pad, rubber Q: If one is removed from the other, what will happen? A: In accession, personal properties are put together, once there is an attempt to remove another, it will cause injury or destruction to the thing. In the example, if the glass/lens are removed from the frame, it will cause injury to the frame/glasses then there is accession. Kinds of Accession In Personal Property 1. conjunction/ adjunction 2. conmixtion 3. specification CONJUNCTION/ADJUNCTION The union of materials belonging to different owners making up a new thing. Separation being impossible without injury. Elements of Adjunction/Conjunction: 1. Two personal properties put together 2. removal of which will cause injury or destruction 3. retains the identity of the separate personal properties. In the example given, the identity of the frame remains separate and distinct from the identity of the lens.
That the foreshore area had been reclaimed does not remove it from its classification of
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NOTA BENE:
Art. 469. Whenever the things united can be separated without injury, their respective owners may demand their separation. Nevertheless, in case the thing united for the use, embellishment or perfection of the other, is much more precious than the principal thing, the owner of the former may demand its separation, even though the thing to which it has been incorporated may suffer some injury.
Gen. Rule is ACCESSORY FOLLOWS THE PRINCIPAL (GOOD FAITH ON BOTH OWNERS) XPN: When accessory is much more precious than the principal, in which case the owner of the accessory may demand the separation even if the principal suffers some injury NOT destruction. OWNER OF PRINCIPAL IN BAD FAITH: Owner of the accessory has the option: a) to recover damages OR b) to demand separation even to the extent of destroying the principal + damges
Art. 470. (par.2) If the one who has acted in bad faith is the owner of the principal thing, the owner of the accessory thing shall have a right to choose between the former paying him its value or that the thing belonging to him be separated, even though for this purpose it be necessary to destroy the principal thing; and in both cases, furthermore, there shall be indemnity for damages.
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Art. 474. One who in good faith employs the material of another in whole or in part in order to make a thing of a different kind, shall appropriate the thing thus transformed as his own, indemnifying the owner of the material for its value. If the material is more precious than the transformed thing or is of more value, its owner may, at his option, appropriate the new thing to himself, after first paying indemnity for the value of the work, or demand indemnity for the material. If in the making of the thing bad faith intervened, the owner of the material shall have the right to appropriate the work to himself without paying anything to the maker, or to demand of the latter that he indemnify him for the value of the material and the damages he may have suffered. However, the owner of the material cannot appropriate the work in case the value of the latter, for artistic or scientific reasons, is considerably more than that of the material.
MIXTURE (conmixtion or confusion) Union of materials were the components lose their identity Results to CO-OWNERSHIP Separation of property is NOT possible, no principal/ accessory 1. conmixtion - mixture of two solids Example: cement + sand 2. confusion - mixture of two liquids Example: water + chlorine Vinegar + soy sauce Solid + Liquid = water + coffee
Adjunction - the identity of the 2 properties is separate and distinct Mixture - the identity of the 2 properties will disappear Q: Who will own the water mixed with the coffee? A: It DEPENDS! If by accident (good faith) coownership will apply. If intentional (bad faith), owner in bad faith will lose right to his own material + liable for damages. SPECIFICATION: It is the transformation of anothers material by the application of labor. The material becomes a thing of a different kind. HUMAN LABOR is deemed to be the principal Identity of the personal property is transferred to another due to human intervention Example: pants and jacket Cannot be immediately produced. These were transformed originally from a piece of cloth, the cloth
RULES: 1. Owner of Principal in Good Faith: Gen. Rule: Maker acquires the new thing and indemnify owner of material (unjust enrichment) XPN: if the value of the material is greater than value of labor, owner of material has option: a) to acquire the property + indemnify for labor OR b) demand indemnity for material 2. Owner of Principal in Bad Faith Owner of material has option: a) acquire the result without indemnity (due to impossibility of separation) OR b) indemnity for the material + damages 3. Owner of Material in Bad Faith - loses material and must pay damages.
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V. Co-ownership Created by law or by agreement Plurality of parties, like in a Corporation except corporation sole Not a juridical person The law says spiritual share meaning you cannot identify where is your exact share. If the specific share is identifiable then the coownership is extinguished.
Q: What if there is doubt on title? A: Proper remedy is to quiet title Q: Is there a prescriptive period for action of quieting? A: It depends If plaintiff in possession, action does not prescribe If plaintiff not in possession prescribes a) Good faith = 10 years b) Bad faith = 30 years Indispensable requisite which must be present so that you can file an action to quiet: Possessor has legal/equitable title Not necessary that he is in possession Legal registered owner Equitable Beneficiary Deed/ Instrument must be shown to be invalid and operative There must be evidence to prove
Art. 484. the right of common dominion which 2 or more persons have in a spiritual part of a thing which is not physically divided. a) Hidden treasure (chance) no problem if the property can be divided physically. - If it cannot be divided physically, automatically there is co-ownership. b) By Succession - only 1 property left and several compulsory heirs Upon death of decedent compulsory heirs automatically become co-owners. c) Property Relationship between common law spouses 147 and 148 of the FC.
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Right of Retention Sps. Nuguid vs. CA Under Art. 448, the owner is given the option: a) To appropriate the improvement as his own upon payment of the proper amount of indemnity; or b) To sell the land to the possessor in good faith Relatedly, Art. 546 provides: that a builder in good faith is entitled to full reimbursement for all necessary and useful expenses incurred. Also gives builder/possessor in good faith the right of retention until full reimbursement is made. Kinds of Action to Recover Possession of Real Property 1) Summons (Accion Interdictal) forcible entry/unlawful detainer. MTC 2) Accion Publiciana action for the recovery of possession. Based on superior right of plaintiff to possession (in concept of holder) RTC Issue: On possession NOT ownership 3) Accion Reinvindicatoria Issue: Based on ownership RTC 4) Injunction against continuation of trespass. 5) Interpleader a suit to determine a right to rd property held by a disinterested 3 party, who is in doubt about the ownership and who therefore deposits the property with the Court to permit interested parties to litigate ownership. Purpose: 1) Who should receive property; 2) avoid multiple liabilities.
Q: What is the principle of Irrevindicability? Art. 559 A: General Rule Under acquisitive prescription; if you are in possession of property in good faith, you can acquire it after 10 years. If you are in possession of a movable/personal property and you acquired it in good faith, acquisition of which is equivalent to a just title. Ex. 1) If owner of that property lost it No finders keepers under the civil code. It should be surrendered to proper authorities. Connect with modes of acquiring. 2) If owner has been illegally deprived of it Under Criminal Law Antifencing Act. Jimenez vs. Patricia Lessees, much less sub-lessees are not possessors or builders in good faith over rented land because they know that their occupancy of the premises continues only during the life of the lease or sublease as the case may be. They cannot as a matter of right recover the value of their improvements from the lessor, much less retain the premises until they are reimbursed.
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Characteristics/Elements: A. Essential without which it is not a usufruct. 1) Real right 2) Temporary in nature 3) Purpose: To enjoy the benefits B. Natural ordinarily is absent GR: to preserve it XPN: when the title/law provides that it is OK not to preserve. C. Accidental Difference between Usufruct Lease Lease consideration is regular, weekly, monthly Usufruct consideration is only ONCE, not a regular basis Reason: a) To prevent exploitation b) To prevent abuse w/c is frequent c) To prevent impairment Q: May a usufructuary lease the object? A: NHA vs CA Art. 565, 572 Usufructuary may lease the object, has the right to enjoy the fruits Has the right to choose tenants Usufructuary allowed to administer and manage the property Q: What happens to the contract of lease entered into by the usufructuary in relation to the stipulated period agreed upon by the naked owner and usufructuary? A: The lease contract entered into by the rd usufructuary with a 3 person will be terminated upon the termination of the contract of usufruct. Upon termination of usufruct, it is also termination of contract of lease. Usufructuary/heirs/succession Similar analogy shall only recover proportionate share of the rent. If lessee sublease the property under lease, original contract of lease is terminated, the sublease contract automatically terminated.
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Causes for Extinguishment of Usufruct: Waiver Expiration/loss of property Resolution/termination of the right to constitute usufruct Expropriation Prescription Merger Expiration of period/fulfilment of the resolutory condition Death Q: Can a usufructuary alienate his rights to the usufruct? A: Yes. He can alienate his right to the usufructuary. In accordance with Art. 577.
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Moralidad vs. Pernez SC: Usufructuary is nothing else but simply allowing one to enjoy anothers property temporarily Right to use Right to enjoy Right to possess With the owner retaining the right to dispose/power to alienate. Art. 579-580-BPS-usufructuary Do not have the right for reimbursement for the improvement he had introduced in the property usufructuary might depose owner of his property. e.g. usufructuary, builds a building in the first place he knows that it is not his, according to SC, he is not entitled to reimbursement. Q: What can the usufructuary do? A: He may remove them without damage to property Q: Is usufructuary builder in Good faith? A: No. He knows from the start that he does not own the property. He cannot be considered a builder in Good faith. Q: If the usufructuary wants to have the property leased, is consent from the Naked Owner necessary? A: NO CONSENT needed. One of the rights of a usufruactuary is to enjoy the fruits.
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