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PROPERTY LAW
Dean M. Mikhail Lee L. Maxino
First Semester, SY 2015-2016

Course Description and Objectives

This course deals with the fundamentals of private property Iaw in the
Philippines, specifically the basic concepts of property; the Iaw on
ownership, possession, usufruct, and easements; and certain modes of acquisition of
property as provided in the New Civil Code of the Philippines. Special laws such as the
Water Code, the law on intellectual property, and on land titles are excluded. The
objectives of the course are:

To impart to the students knowledge and understanding of the pertinent principles and
theories of property law, and how it relates to other laws.

To develop the students ability to analyze legal issues arising from fact situations, to tell
the difference between material facts and immaterial facts, and to apply the law to the
given facts, and to reason in a logical, lawyer-like manner.

To analyze the legal rules and principles applicable to a problem and formulate legal
theories from facts that may be only partly known and are being developed.

To recognize and resolve ethical issues arising in practical situations.

To apply problem-solving skills to diagnose a problem, generate alternative solutions,

and develop a plan of action.

To communicate effectively, whether advocating, advising a client, eliciting information,

or effectuating a legal transaction.

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References
The primary textbook for this class is Tolentino, A. Commentaries and Jurisprudence on
the Civil Code of the Philippines (VoI. 2). Any edition wiIIsuffice. In aII cases where the
Course Syllabus refers to a provisionof the New Civil Code (NCC), students are
required to read the corresponding commentaries by Prof. Tolentino.
Grading Requirements
The final grade shall have three components: recitations/quizzesincluding attendance
(20%), mid-term exam (40%) and the final exam(40%). For recitation, students shall be
called at random and then questioned about their knowledge and comprehension of the
provisionsand cases assigned.
Class discussions do not foIlow the linear path found in this course outline;
hence,students are advised to study the entireassigned topic and not just sequential
parts thereof.
If a student who is absent is called for a recitation, said student is given a failing mark
for that recitation.
Surprise quizzes or occasional assignments shall be considered as one recitation.
This course requires of every student the highest standardsof academic performance,
personal integrity, and self-discipline. Those who are unable to comply are advised to
withdraw.
Law students are expected at all times to observe proper decorum and conduct
themselves in a manner worthy of the legal profession. Childish or adolescent behavior
shall not be tolerated.
Laptops, tablets, smartphones, video recorders, cameras, and other similar electronic
devices capableof audio or video recording may be used in class provided these are
kept in a silent mode and will not disrupt or disturb classes in any way. However, only
personal notes on paper are allowed to be used or referred to during the students
recitation.
The grades given by the teacher are final. These are appealable only on two grounds:
(1) when there is error in the recording of grades or scores, and (2) when there is error
in the mathematical computation of the raw scores. No other ground is allowed.
The General Law on Property Rights
A. Constitutional Framework

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1. The Philippine 1987 Constitution, Article II, sections 5, 10; Articles III, sections
7, 9, 10; Article V, section 1; Article XII, section 6; Article XIII, sections 7 et
seq.
2. The Universal, Declaration of Human Rights (UDHR), Articles 2, 7l
3. Philippine Blooming Mills Employees Organization vs. Philippine Blooming
Mills Co., Inc. 90 SCRA 189 (1973)
B. Property Rights in Philippine Civil Law
1. NCC, Article 414
2. Ownership, NCC, Articles 421-428
3. Possession, NCC, Article 523
4. Usufruct, NCC, Article 562
C. Who may exercise property rights?
1. Natural Persons Individuals, NCC, Article 37-38, 1987 Const., Article II,
section 5; UDHR, sections 2, 17. Marital partners Family Code, sections 88,
90-93, 105-106, 108, 116. Indigenous peoples and communities -- RA 8371
(Indigenous Peoples' RightsAct), sections 3, 5, 7-8. Cruz vs. Secretary of
Environment and Natural Resources, et. al., 347SCRA 128 (NOTE: compare
separate opinions of Justices Puno, Kapunan, and Panganiban).
2. Juridical Persons -- In general, NCC, Articles 44-47; Partnerships, NCC,
Articles 7767-1768; Private corporations, BP 68 (The Corporation Code),
sections 2, 3,36, 109; Other private juridical entities, Rep. Act 6938
(TheCooperative Code), sections 3, 6, 9
3. Public corporations State, NCC, Articles 420-22; 1987 Philippine
Constitution, Article XII, section l-2, Subdivisions of the State, NCC, Articles 42324, LGC sections 17, 18-19,21-22,89, 447, 458; Government-owned and
controlled corporations, The Corporation Code, sections 4, 36.
D. Classifications of Property
1. With reference to the objectCorporeal (Immovable/Real Property and
Movable/Personal Property), Non-Corporeal (Intellectual property, Rights &
Choses in Action)
NCC, Articles 414-418; Lopez vs. Oroza, 103 Phil 98; Punzalan vs. Lacsamana,
121 SCRA 331; Associated Insurance vs. Iya, 103 Phil 972; Leung Yee vs.

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Strong Machinery, 37 Phil 644; Tumalad vs. Vicencio, 41 SCRA 143; Makati
Leasing vs. Wearever, 122 SCRA 296; Board of Assessment Appeals vs.
MERALCO, 10 SCRA 68; MERALCO Securities vs. CBAA, 114 SCRA 273;
Caltex vs. CBAA, 114 SCRA 296; Berkenkotter vs. Cu Unjieng, 61 Phil 663;
Mindanao Bus Co. vs. City Assessor, September 29, 1962; Sibal vs. Valdez, 50
Phil 512; Standard Oil Co vs. Jaramillo, 44 Phil 630; Davao Sawmill vs. Castillo,
61 Phil 710; US vs Carlos, September 1, 1911; US vs. Tambunting, 41 Phil 364;
Bachrach Motor Co. vs. Ledesma, August 31, 1937; Bachrach vs. Seifert,
August 31, 1937;Barlin vs. Ramirez, 7 Phil 41; Philippine Refining Co. vs. Jarque,
61 Phil 229; Prudential Bank vs. Panis, 153 SCRA 390; Benguet Corp. vs.
CBAA, 218 SCRA 271; Serg's Products vs. PCI Leasing, 338 SCRA 499; NCC,
sections 721-724; Rep. Act 8293 (Intellectual Property Code), sections 4, 22,
112, 172-173, 177, NCC, section 417.
2. According to Ownership Public Dominion, Private Ownership, Res Nullius
Public Dominion -- Pertaining to the State (for public use and for public service);
Pertaining to the political subdivisions (for public use)
Private Ownership Patrimonial; Pertaining to private individuals or entities
NCC, 419-425; Rep. Act 7160, The Loca1 Government Code (LGC), sections 18,
27-22,89; The Indigenous Peoples' Rights Act, sections 3, 5, 7, 8; LGC sections
17, 447, 458; Province of Zamboanga vs. City of Zamboanga, 22 SCRA 1334;
Salas vs. Jarencio, 46 SCRA 734; Chavez vs. PubLic Estates Authority, 384
SCRA 152; Cebu Oxygen vs. Bercilles, 66 SCRA 481; Government vs. Cabangis,
53 Phil 112; Ignacio vs. Director of Lands, May 30, 1960; Buyser vs. Director, 121
SCRA 13; Tan Toco vs. Mun. Council of Iloilo, March 25, 1926; Mun. ofPaoay vs.
Manaois, 86 Phil 629; Mun. of San Miguel vs. Fernandez, June 25, 1984; 1987
Const., Art. XII.
E. Ownership
Sole Ownership
1. Definition NCC, sections 427, 712
2. Rights of Owners NCC, sections 428-430, 435, 437-440
Rights of action in rem/in personam/quasi in rem
Sandejas vs. Robles, 81 Phil 421
Ching vs. Court of Appeals, 181 SCRA 9
Hernandez vs. Development Bank of the Philippines, 71
SCRA 290
Domagas vs. Jensen, 448 SCRA 663

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Specific rights to protection & enforcement
Doctrine of Self-help NCC, sections 429-430
Legal action NCC, sections 428, 433-434, 536
Quieting of title, NCC, sections 416-481, 1147
Heirs of Olviga vs. Court of Appeals, 227 SCRA 330
Pingol vs. Court of Appeals, 225 SCRA 118
Titong vs. Court of Appeals, 287 SCRA 102
Sps. Portic vs. Cristobal, 496 Phil 456
Recovery of possession, NCC, section 434
Reconveyance
Replevin
Damages
Bishop of Cebu vs. Mangaron, 6 Phil 286
Chacon vs. Court of AppeaTs, 124 SCRA 784
German Management vs. Court of Appeals, 177
SCRA 495
De La Paz vs. Panis, 245 SCRA 242
Vda. De Aviles vs. CA, 264 SCRA 473
Baricuatrovs. CA, 325 SCRA 137
BA Finance vs. Court of Appeals, 327 SCRA 716
PEZA v. Fernandez, 358 SCRA 489
3. Acquisition
Occupation NCC, sections 713-720
Cario vs. Insular Government, 41 Phil 935
Gold Creek Mining vs. Rodriguez, 66 Phil 259
Atok Big Wedge Mining vs. IAC, 261 SCRA 529
Cruz vs. Sec of Env and Nat Resources, et. al., 347 SCRA
165
NPC vs Ibrahim, 526 SCRA 149
Tradition NCC, sections 1495-1501
San Lorenzo vs. Court of Appeals, 449 SCRA 99
Equatorial Realty vs. Mayfair, 370 SCRA 56
Union Motors vs. Court of Appeals, 361 SCRA 506
Accession NCC, section 426
Right to accession NCC, section 426
Immovable Property
Discreta NCC, sections 440-441
Natural NCC, sections 442-444
Industrial NCC, section 442
Civil NCC, section 442
Continua
Naturally incorporated --NCC, sections 445456

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Zapata vs. Director of Lands, 5 SCRA
335
Cortez vs. Court of Appeals, 10 Phil 567
Hilario vs. City of Manila, 19 SCRA 931
Grande vs. Court of Appeals, 5 SCRA
524
Ignacio vs. Director of Lands, 727 SCRA
13
Republic vs. CA, 132 SCRA 514
Lunod vs. Meneses, 11 Phil 128
Binalay vs. Manalo, 195 SCRA 347
Baes vs. Court of Appeals, 224 SCRA
562
Vda.deNazareno vs. CA, 257 SCRA 589
Artificially incorporated NCC, sections 451465
Equatorial vs. Mayfair, 370 SCRA 56
Liwanag vs. Yu-songuian, 5 SCRA 147
JM Tuason vs. Vda.deLumanlan, 23
SCRA 231
Gaboya vs. Cui, 38 SCRA 95
Floresca vs. Evangelista, 96 SCRA 130
Manotok Realty vs. Tecson,164 SCRA
587
MWSS vs. CA, 143 SCRA 623
Pleasantville vs. CA, 253 SCRA 10
Alviola vs. CA, 289 SCRA 537
Heirs of R. Dunan vs. Uy, 344 SCRA
537
Movable Property
Conjunction/adjunction NCC, sections 466471, 475
Commixtion/confusion NCC, sections 472473, 475
Specification NCC, sections 474-475
Exceptions: FC, sections 119-120
Prescription
Acquisitive NCC, sections 554, 719, 1106-1138, 1505
Cutanda vs. Cutanda, 335 SCRA 418
Serespi vs. Court of Appeals, 331 SCRA 293
Extinctive NCC, sections 1139-1155
Cimafranca vs. Intermediate Appellate Court, 147
SCRA 611
Bureau of Forestry vs. Court of Appeals, 153 SCRA
351

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Bailon-Casilao vs. Court of Appeals, 160 SCRA 738
Villagonzalo vs. Intermediate Appellate Court, 167
SCRA 535
Bergado vs. Court of Appeals, 172 SCRA 497
Co-ownership
1. Definition NCC, sections 484-485, 493, 162O
Pardell vs. Bartolome, 23 Phil 450
Basa vs. Aguilar, 117 SCRA 128
Del Ocampo vs. Abesia, 160 SCRA 379
Bailon-Casilao vs. CA, 160 SCRA 738
Oliveras vs. Lopez, 168 SCRA 431
Tagarao vs. Garcia, 67 Phil 5
Rivera vs. People's Bank, 73 SCRA 546
Gatchalian vs. Collector of Customs, 67 Phil 666
2. Special Rights of Co-owners NCC, sections 487-492, 494,1088,162O,
1623
Melencio vs. DyTiao Lay, 55 Phil 100
Lavadia vs. Cosme, 72 Phil 196
Tuason vs. Tuason, 88 Phil 428
Mariano vs. CA, 222 SCRA 736
Arcelona vs. CA, 280 SCRA 20
Adlawan vs. Adlawan, 479 SCRA 275
3. Special Rule on Marital Properties NCC, section 90
F. Possession
1. In General NCC, sections 523-561
2. Definition NCC, sections 523, 525, 530
Who exercises NCC, sections 524, 532, 535, 538; animus possidendi
Status NCC, sections 526-529
3. Character and Effects
Right to be respected in possession NCC, sections 428, 539.
Right to accessories NCC, sections 542, 544, 547, 551, 550, 438-439

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Continuity of possession NCC, sections 544, 561, corpus possessionis
Right to reimbursement NCC, 546, 548-550, 553
Possession in common NCC, section 543
Basis of title NCC, sections 547, 559
Effect on true owner NCC, 558
G. Lease of Urban lands (lease of rural lands covered by agricultural and agrarian laws;
lease of work covered by labor laws)
1. Definition NCC, sections 1642-1645
2. Who are qualified/disqualified NCC, sections 7646, 1490-1491.
3. Obligations of parties
Lessor NCC, sections 7654-7656, 7667, 7664, 7678
Lessee NCC, sections 1657-1658, 1662-1663, 1665-1558
4. Payment NCC, 1619
5. Termination NCC, sections 1659-1660, 1669
6. Renewal NCC, sections 7670, 7672
7. Unlawful Detainer NCC, sections 1677, 1673-1675, 1671.
8. Transfer of lease NCC, 1649, 1676
9. Sublease NCC, sections 1650-1652
10. Warranties NCC, sections 1547-1548, 1561, 1653, 1666
H. Usufruct
1. In General
2. Definition NCC, section 562
Alunan vs. Veloso, 52 Phil 545
Belonio vs. Novella, 105 Phil 756

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3. Rights of Owners Alienate (NCC, sec. 581); Improvements (NCC, sec. 595);
taxes (NCC, sec. 597)
4. Usufructuary
Obliqations of Usufructuary
In general NCC, sections 583-585
Administration
Exercise diligence NCC, sections 573, 589
Vicarious liability NCC, section 590
Repair/Replace NCC, section 591-593
Notify owner of certain acts NCC, section 601
Give security NCC, sections 583-588, 599
Expenses
Pay charges and taxes NCC, sections 596-597
Pay debts NCC, sections 598, 600
Collect credits NCC, section 599
Shoulder legal expenses NCC, section 602
Return NCC, section 612
Mercado vs. Rizal, 67 Phil 608
Vda de Albar vs. Carandang, 106 Phil 855
Board of Assessment Appeals vs. Samar Mining, 37 SCRA 734
Rights of Usufructuary
In general NCC, section 565
Administration NCC, section 582
Alienate, Lease NCC, sections 568, 572, 581
Enjoy and use NCC, sections 563, 572-578
Make improvements NCC, sections 579-580
Suit NCC, sections 578, 602
Pichay vs. Querol, 11 Phil 386
Reyes vs, Grey, 21 Phil 73
Tufexis vs. Municipal Council of Guinobatan, 32 Phil 629
Municipality of Paoay vs. Manaois, 86 Phil 629
Fabie vs. David, 75 Phil 536

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Orozco vs. Araneta, 90 Phil 399
Bachrach vs. Seifert, 97 Phil 483
Baustista vs. Marcos, 113 Phil 421
Gaboya vs. Cui, 38 SCRA 85
Hemedes vs. CA, 316 SCRA 347
I. Easements
1. Definition NCC, section 613
2. Characteristics NCC, sections 617-618
3. Classification NCC, sections 613-616, 619, 634, 688
4. Rights and obligations NCC, sections 624-633
5. Creation
By title NCC, sections 622, 624
By will of the owners NCC, sections 619, 688, 693
By law NCC, sections 619, 634-636
By prescription NCC, sections 620-622
6. Extinguishment NCC, section 631
Cid vs Javier, 108 Phil 239.
Francisco vs. Paez, 54 Phil 239
Benedicto vs. CA, 134 Phil 122
7. Legal Easements
In favor or adjacent properties
Right of Way NCC, sections 649-657
Archbishop of Manila vs. Roxas, 22 Phil 450
Cuaycong vs. Benedicto, 37 Phil 781
Valderrama vs. North Negros, 48 Phil 492
North Negros vs. Hidalgo, 63 Phil 664
Bernardo vs. CA, 97 Phil 131
Francisco vs. IAC, 177 SCRA 527
Costabella vs. IAC, 193 SCRA 333
Encarnacion vs. CA, 195 SCRA 74

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Solid Manila Corp vs. Bio Hong, 195 SCRA 748
Quimen vs. CA, 257 SCRA 163
Party Wall
Lao vs. Heirs of Alburo, 33 Phil 48
Light and View
Cortes vs. Yu-Tibo, 2 Phil 24
Fabie vs. Lichauco, 11 Phil 14
Saenz vs. Figueras Hermanos, 13 Phil 666
Amor vs. Florentino, 74 Phil 403
Gargantos vs. Yanon, 108 Phil 888
Intermediate Distances NCC, sections 677-681
Lateral and Subjacent Support NCC, sections 684-687
Pertaining to waters
Natural drainage NCC, section 637; Pres. Decree No. 1067 Water
Code), section 50.
Riparian banks NCC, section 638; Water Code, section 51
Drainage of buildings NCC, sections 674-676
Dam NCC, sections 639, 647; Water Code, sections 38-39
Drawing water NCC, sections 640-641; RA 7942, section 73
Aqueduct NCC, sections 642-646; Water Code, secs 13, 25, 4649, 67
Sluice Gate NCC, section 647
Tanedo vs. Bernad, 165 SCRA 86
Ayala de Roxas vs. City of Manila, 9 Phil 215
Lunod vs. Meneses, 11 Phil 128
Salazar vs. Gutierrez, 33 SCRA 242
Relova vs. Lavarez, 9 Phil 149
Easement Against Nuisance NCC, sections 682-683
Special Easements Mining Code, sec 75

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3. Characteristics NCC, sections 617-618

4. Kinds NCC, sections 613-616, 619, 634, 636, 688
J. Waters
1. Ownership NCC, sections 502-503; Water Code, sections 5, 6
2. Use of Public Waters NCC, sections 504-506; Water Code, secs 31- 52
3. Waters in Private Property NCC, sections 507-511; Water Code, sections 56, 13-14, 25, 32, 41
4. Subterranean Waters NCC, sections 512-514; Water Code, sections 8-9, 13,
17, 32, 39, 64
5. General Provisions NCC, sections 515-518; Water Code (all remaining
provisions)
K. Contractual Limitations NCC, sections 1347-49
L. Creation, Transmission, and Termination of Property Rights