Property Under The Civil Code Page 1 of 16

Property under the Civil Code

Part of Civil Law
Family law; Contracts and obligations; Property Law; Succession, estate, probate, and
testamentary laws; Agency; Law of Torts

Rights Over Things

a) Things and Property Distinguish

(Tolentino) Property is an economic concept, meaning a mass of things or objects useful to

human activity and which are necessary to life, for which reason they may in one way or another
be organized and distributed, but always for the use of man.
The right to property is the juridical tie by virtue of which a person has the exclusive power
to receive or obtain all the benefits of a thing except, those prohibited or restricted by the law or by
the rights of the others. It emphasizes the vinculum between man and a thing compare to
ownership which refers to the mass of rights over the thing.
(Rabuya) The word property is derived from the Latin word proprius, meaning belonging
to one or ones own.Traditionally, therefore, the concept of property extends only to those things
which are already possessed and found in the possession of man.Hence, in the traditional notion,
the concept of property is inseparable from the relation which the object has with the person
exercising dominion or right over it. It is in this sense that the concept of property is said to be
limited compared to the concept of things, which extends to all objects that exist,whether it is
already in the possession of man or not.

The concept of property (bienes) is intimately related with the concept of things (cosa). It
must be noticed that the Civil Code does not define the term property but simply implies that the
concept refers to things which are susceptible of appropriation. With the foregoing in mind, it is but
proper to begin the discussion of property with the concept of things.

This is clear from the provisions of Article 414 which classifies as property all things which
are or may be the object of appropriation. From the viewpoint of the Code, therefore, the terms
property and things are identical to each other and may be used interchangeably.

Aside from the criterion of susceptibility to appropriation mentioned in Article 414, most authors in
the subject provide for two additional requisites before considering a thing as property:
(1) utility, or that it can serve as a means to satisfy human needs;
(2) and substantivity or individuality, or that the thing must have an autonomous and separate
existence.

(Paras) distinction between property and things

As used in the Civil Code, the word thing is apparently SYNONYMOUS with the word property.
However, technically, thing is broader in scope for it includes both appropriable and non-
appropriable objects. The planets, the stars, the sun for example, are things (cosas), but since
we cannot appropriate them, they are not technically property (bienes). Air, in general, is merely a
thing, but under certain condition.

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Tolentino Property vs Things

In order to be juridically considered as a thing or property, the object must have the following
requisite.
1. Utility or the capacity to satisfy human wants
2. Individuality and substance or a separate and autonomous existence-

The materials composing a thing are not things themselves. Physical unity
often determines individuality.

3. Susceptibility of being appropriated-

Objects which can not be appropriated because of their depth, size or

immensity cannot be considered as things. Examples: Sun, ocean and core of the earth
Diffused forces of nature in their totality can not be considered as things
juridically (Light, Rain ) but they can be considered as things if they can be appropriated in PARTS
(example electricity)

PROPERTY THINGS

As to Object All those Appropriated and in the All things that exists and can be of
possession of man some use to man
All that are already possessed Are all those that can be
and found in man's patrimony possessed by man

In Juridical sense things are property not only when things in juridical sense includes
they are useful to man but when objects which can be useful and
they are appropriated of some good and utility to man

c) Rights as Property

The word property is used sometimes to denote the thing with respect to which legal
relations between persons exist the res over which rights (particularly ownership) may be
exercised and sometimes to the rights with respect to the thing.
(Tolentino) Only rights which are patrimonial in character can be considered as things.
Rights which are not patrimonial such as Right to liberty, Right to honor, Family rights can not be
considered as property.

Such rights which are considered property are of two kinds: real and personal.

(1)real rights the power belonging to a person over a specific thing, without a passive
subject individually determined against whom such right may be personally exercised; it is
enforceable against the whole world? This is sometimes called jus in re

(De leon/Tolentino) A real right is the right or interest belonging to a person over a specific thing
without a definite passive subject against whom such right may be personally enforced.
It is sometimes called jus in re.

(Tolentino) 3 Elements characteristic of real rights

1. A Subject and an Object- Connected by a relation of ownership f subject over the object
2. A general obligation or duty of respect for such relation, there being no particular passive
subject

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3. Effective actions recognized by law - to protect such relation against anyone who may want
to disturb it.

Classification of real rights based upon dominion.

They have been classified as follows:

(1) Domino pleno, i.e., the powers to enjoy and to dispose are united:

(a) Dominion;
(b) (Civil) Possession;
and (c) Hereditary right.

(2) Domino menos pleno, i.e., the powers to enjoy and to dis- pose are separated:

(a) Surface right; and

(b) Usufruct.

(3) Domino limitado, i.e., the powers to enjoy and to dispose, though united, are limited:
(a) By a charge, such as easement, tax, etc.
(b) By a guaranty, such as mortgage, pledge, etc.
(c) By a privilege, such as pre-emption

(2) personal rights - (Tolentino) the power belonging to one person to demand of another, as
a definite passive subject, the fulfillment of a prestation to give, to do or not to do. It is simply
called the right of obligation

(De leon) Personal right is the right or power of a person (creditor or obligee) to demand from
another (debtor or obligor) as a definite passive subject, the fulfillment of the latters obligation.

It is sometimes known as jus in personam or jus ad rem.

(Tolentino) Personal right has the following Characteristics

A. Elements of an obligation
(1) active subject or the person in whom the right resides;
(2) passive subject or the person against whom the right is
available;
(3) object or prestation or the conduct which must be observed by the debtor which may consist in
giving (a thing or property), doing, or not doing; and

(4) juridical or legal tie or that which binds the parties to the obligation.

B. A general Obligation on the part of the third person to respect the relation between the
active and passive subjects

C. 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

(3) Distinctions between real rights and personal rights.(deleon)

Among them are the following

By number of persons who take part in the legal relation-

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In real right (e.g., ownership), there is a definite active subject who has a right against all persons
generally as an indefinite passive subject (Rest of the world).

personal right, there is a definite active subject and a definite passive subject;

By the subject-matter / object of juridical relation.

In real right, the object is generally a corporeal thing,
in personal right, it is always an incorporeal thing, i.e., the prestation of the debtor;

By the manner in which the will of the active subject affects the thing related to it
In real rights, he generally acts directly, while in
personal right, he acts indirectly through the promise of the obligor/ prestation of the debtor

By the causes of creating the juridical relation

Real rights are created by mode and title (see Art. 712.),
while personal rights are created merely by title;

By the modes of their extinction.

Real right is extinguished by the loss or destruction of the thing over which it is exercised,
personal right survives the subject matter

By the nature of the actions arising from the juridical relation.

Real right is directed against the whole world, giving rise to real actions (actio in rem) against third
persons,
personal right is binding or enforceable only against a particular person, i.e., the debtor, giving rise
to personal actions (actio in personam) against such definite debtor.

Kinds of Property
a) As to Ownership

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

Introduction
From the viewpoint of ownership, the Civil Code classifies properties, as follows:
(1) in relation to the State, its properties are either of public dominion or patrimonial
properties;
(2) in relation to the political subdivisions (provinces, cities and municipalities), their
properties are either of public dominion (for public use) or patrimonial properties
(3) in relation to persons and entities other than the State and its political subdivisions (or
private persons, either individually or collectively), their properties are denominated as
that of private ownership.

(1) Common (Res Nullius)

These things belong to no one, and the reason is that they have not yet been appropriated,
like fish still swimming in the ocean, or because they have been abandoned (res derelictae/ In
tolentino he still uses Res Nullius) by the owner with the intention of no longer owning them. Other
examples include wild animals (ferae naturae), wild birds, and pebbles lying on the seashore.

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(2) PublicDominion

(Paras)
In a sense, public dominion means ownership by the State in that the State has control and
administration; in another sense, public dominion means ownership by the public in general, in that
not even the State or subdivisions thereof may make them the object of commerce as long as they
remain properties for public use. Such is the case, for example, of a river or a town plaza.

In tolentino, Public dominion does not carry the idea of ownership, it is not owned by the
state but pertains to the state itself, which as territorial sovereign exercises certain juridical
prerogatives over such property. They cannot be subject oof appropriation. Churches and other
consecrated objects have been considered as outside the commerce of man, they are neither
public or private ownership.
(Rabuya)
In a sense, the term public dominion means ownership by the public in general or public
ownership. As used in this sense, the ownership referred to is a special collective ownership for
the general use and enjoyment, an application to the satisfaction of collective needs, and resides in
the social group.Viewed in this light, the State holds these properties not in the concept of an
owner but only in consequence of its territorial integrity.Hence, the relation of the State to these
properties arises from the fact that the State is the juridical representative of the social group, and
as such it takes care of them, preserves them and regulates their use for the general welfare.

Characteristic of Properties of Public Dominion (Tolentino)

1. They are outside the commerce of men

2. They Are Not Susceptible To Private Appropriation and Acquisitive Prescription

3. They Are Not Subject To Attachment and Execution

4. They Cannot Be Burdened With Voluntary Easements

Regalian Doctrine

"jura regalia" all lands of the public domain as well as all natural resources are owned by the State

(Rabuya)
Property of public dominion falling under the concept of State ownership by virtue of
regalian right must be distinguished from property of public dominion in the concept of public
ownership. In the latter, not even the State may make them the object of commerce. Hence, they
cannot be leased, donated, sold or be the object of any contract.With respect to natural resources,
they are not, however, totally outside the commerce of man as the Constitution allows the State to
enter into co-production, joint venture or production-sharing agreements with private individuals or
corporations for their exploration, development and utilization.With respect to fishponds, for
example, which are likewise owned by the State, they may be leased although they may not be
alienated.
The 1987 Constitution reaffirmed the Regalian doctrine in Section 2 of Article XII on
National Economy and Patrimony,to wit:

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Sec. 2. All lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all
forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural
resources are owned by the State. With the exception of agricultural lands, all other natural
resources shall not be alienated. The exploration, development and utilization of natural resources
shall be under the full control and supervision of the State. The State may directly undertake such
activities or it may enter into co- production, joint venture, or production-sharing agreements with
Filipino citizens, or corporations or associations at least sixty per centum of whose capital is owned
by such citizens. Such agreements may be for a period not exceeding twenty- five years,
renewable for not more than twenty-five years, and under such terms and conditions as may be
provided by law. In cases of water rights for irrigation, water supply, fisheries, or industrial uses
other than the development of water power, beneficial use may be the measure and limit of the
grant.

Under the Regalian Doctrine embodied in the present Constitution, all lands of the public domain
as well as all natural resources enumerated in the above-quoted provision, whether on public or
private land, belong to the State.

Art. 420. The following things are property 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 others of similar
character;

(2) Those which belongs to the State, without being for public use, and are intended
for some public service or for the development of the national wealth.

(a) Property Intended For Public Use (Art.420,par.1,NCC)

"Those intended for public use, such as roads, canals, rivers, torrents, ports and bridges
constructed by the State, banks, shores, roadsteads, and others of similar character;"

In Villarico v. Sarmiento,137 the Supreme Court defined the term public use as that use which is
not confined to privileged individuals, but is open to the indefinite public. or Public Use
The first paragraph of Article 420 enumerates the properties of public dominion which are intended
for public use, as follows: roads, canals, rivers, torrents, ports and bridges constructed by the
State; banks, shores, roadsteads, and others of similar character. Articles 5 and 6 of P.D. No.
1067, as amended, otherwise known as The Water Code of the Philippines, add to the above
enumeration, the following:

Art. 5. The following belong to the State:

a. Rivers and their natural beds;
b. Continuous or intermittent waters of springs and brooks running in their natural beds and the
bed themselves;
c. Natural lakes and lagoons;
d. All other categories of surface waters such as water flowing over lands, water from rainfall
whether natural or artificial, and water from agriculture runoff, seepage and drainage;
e. Atmospheric water;
f. Subterranean or ground waters; and
g. Seawater.

Art. 6. The following waters found on private lands also belong to the State:
a. Continuous or intermittent waters rising on such lands.
b. Lakes and lagoons naturally occurring on such lands;
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c. Rain water falling on such lands;
d. Subterranean or ground waters; and
e. Waters in swamps and marshes.

(b) Property For Public Service (Art.420,par.2,NCC)

"Those which belongs to the State, without being for public use, and are intended
for some public service or for the development of the national wealth."

All properties of the State that are devoted or intended for some public service are likewise part of
the public dominion. As earlier explained, these properties cannot be used indiscriminately by
anyone but only by those that are authorized by proper authority

Private buildings rented by the state for its office and functions are not property of public dominion

Distinguish public use vs public service

Hence, properties for public use may be distinguished from properties intended for public service in
that the
former (public use) may be used indiscriminately by the public while
the latter, (public service) although used for the benefit of the public, cannot be used
indiscriminately by anyone but only by those that are authorized by proper authority.

(C) Property of Public Dominion: For the Development of National Wealth

Those which belongs to the State, without being for public use, and are intended for
some public service or for the development of the national wealth."

Property of public dominion pertaining and/or belonging to the State refers not only to
property devoted to public use or to some public service, but also to property devoted to the
development of the national wealth. This class of property constituted property of public dominion
although employed for some economic or commercial activity to increase the national wealth.

(D)Patrimonial Property (Article421,NCC)

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

Patrimonial Property of the State

ToLentino
This is property over which the state has the same rights and of which it may dispose to the same
extent as private individuals in relation to their own property, subject only to administrative laws
and regulations on the procedure of exercising such rights. The state may dispose of patrimonial
property in accordance oof special law (commonwealth act141)

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 Property Under The Civil Code Page 8 of 16
They are subject to prescription and can be objects of ordinary contract.
rabuya
All other property of the State, which is not of the character stated in Article 420 of the New Civil
Code, is patrimonial property. It is considered as a property of the State in what may be called the
private sense. It is said that over this kind of property the State has the same rights and has the
same power of disposition as private individuals subject, of course, to existing rules and
regulations.

Examples of Patrimonial Property

1. Friar Lands (Tipton vs Andueza)

2. Alienable and Disposable Lands of the Public Domain

3. Lands Covered by Republic Act No. 7227 (creating the BCDA is a law that declares specific
military reservations no longer needed for defense or military purposes and reclassifies such lands
as patrimonial property for sale to private parties.)

4. Property acquired by the government in (tolentino)

A. Execution of sales
B. Tax sales
C. Escheats of estates of person who die intestate without legal heirs
D. Income or rents of the state

Art 422. Property of public dominion, when no longer intended for public use or for public
service, shall form part of the patrimonial property of the State.
- By legislative and executive department declaration

Art. 423. The property of provinces, cities, and municipalities is divided into property for
public use and patrimonial property.

Classification of Properties of Political Subdivisions

The property of provinces, cities and municipalities is divided into property for public use and
patrimonial property. The first consists of the provincial roads, city streets, municipal streets,
squares, fountains, public waters, promenades, and public works for public service paid for by said
provinces, cities or municipalities.All other property possessed by said provinces, cities or
municipalities is patrimonial.
The nature of properties owned by cities (municipalities and provinces) in this country is
determined by the character of the use or service for which they are intended or devoted.
Properties which are intended for public use or for some public service are properties for public
use. All others are patrimonial properties. It matters not that the property is not actually devoted for
public use or for some public service. If it has been intended for such use or service, and the city
(municipality or province) has not devoted it to other uses, or adopted any measure which
amounted to a withdrawal of the property from public use and service, the same remains property
for public use, the fact that it is not actually devoted for public use or service notwithstanding.

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.

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 Property Under The Civil Code Page 9 of 16
Note:: Property for Public Use of Provinces, Cities and Municipalities
Governed By Same Principles as Property of Public Dominion

(3) PrivateProperty
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.

(a) All properties belonging to private persons either individually or collectively (Art.
425, NCC)

Private properties may belong to the State, to provinces, cities and municipalities or may
belong to the private individuals either individually or collectively. Such properties when they
belong to the State, provinces, cities and municipalities are called patrimonial property; and when
they belong to private entities or individuals, they are called properties of private ownership.

The mere fact that property of a person lies within a military zone doesnt mean that his
property becomes part of public dominion.

i) Sole ownership where the ownership is vested in only one person.

ii) Co-ownership (or Tenancy in Common)

when the ownership is vested in two or more owners. Manresa says: The concept of co-
ownership is unity of the property, and plurality of the subjects. Each co-owner, together with the
other co-owners, is the owner of the whole, and at the same time, the owner of an undivided
aliquot part thereof. Co-ownership (Simple, Partnerships, Corporations, and other forms of
multiple ownership)

ARTICLE 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

As to Physical Characteristics

(1) ImmovableProperty(RealProperty)

(a) Enumeration of Immovable Property (Art.415,NCC)

Art. 415. The following are immovable property:

(1) Land, buildings, roads and constructions of all kinds adhered to the soil;

Notes: If a building is ordered to be demolished after being sold it will become movable property

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 Property Under The Civil Code Page 10 of 16
(2) Trees, plants, and growing fruits, while they are attached to the land or form an integral
part of an immovable;

Notes: Trees when cut became movable except when the timber constitutes the natural product of
the tenement in which case it still forms an integral part of the immovable.

(3) Everything attached to an immovable in a fixed manner, in such a way that it cannot be
separated therefrom 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) Machinery, receptacles, instruments or implements intended by the owner of the

tenement for an industry or works which may be carried on in a building or on a piece of
land, and which tend directly to meet the needs of the said industry or works;

Note: if they are separated not necessary from the immovable but on the industry which they are
devoted, they become movables

(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 slug 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) Contracts for public works, and servitudes and other real rights over immovable
property. (334a)

Classes of Immovable Property

Immovable or real property may be reduced to four general classes or kinds, notwithstanding the
enumerations in Article 415, to wit:

1. Immovable by nature - those which by their essence and nature are immovable or cannot be
moved from one place to another, such as lands and roads in paragraph 1 of Article 415 and
mines, quarries and slug dumps in paragraph 8 of Article 415;

8. "Mines, quarries and slug dumps, while the matter thereof; forms part of the bed, and waters
either running or stagnant;"

2. Immovable by incorporation those which are treated as immovable by reason of their

attachment or incorporation to an immovable in such manner as to be an integral part thereof, such
as buildings and constructions of all kinds adhered to the soil mentioned in paragraph 1 of Article
trees, plants and growing fruits mentioned in paragraph 2 of Article 415 while they are still attached
to the land or form an integral part of an immovable; and those that are attached to an immovable
in the manner provided for in paragraph 3 of Article 415; par 4 and 6

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 Property Under The Civil Code Page 11 of 16

3. Immovable by destination those which are essentially movable, but by the purpose for
which they have been placed in an immovable, partake of the nature of the latter because of the
added utility derived therefrom, such as those mentioned in paragraphs 4, 5, 6, 7 and 9 of Article
415;

4. Immovable by analogy or by law those that are mentioned in paragraph 10 of Article 415.

(10) Contracts for public works, and servitudes and other real rights over immovable property.

Extent of Ownership (Art. 437, NCC)

Art. 437. The owner of a parcel of land is the owner of its surface and of everything
under it, and he can construct thereon any works or make any plantations and
excavations which he may deem proper, without detriment to servitudes and subject
to special laws and ordinances. He cannot complain of the reasonable requirements
of aerial navigation

Cujus est solum, ejus est usque ad coelum ad infernos (to whomsoever the soil belongs,
he owns also to the sky and to the depths)

Includes the surface and everything under it and he can construct thereon any works or make any
plantations and exceptions which he may deem proper, without detriment to servitudes and subject
to special laws and ordinances. He cannot complain of the reasonable requirement of aerial
navigation.

ii) Minerals are not included; Article XII of the Constitution

iii) Republic Act No. 7942 (Philippine Mining Act of 1991)

(1) Section 76. Entry into Private Lands and Concession Areas. - Subject to prior notification,
holders of mining rights shall not be prevented from entry into private lands and concession areas
by surface owners, occupants, or concessionaires when conduction mining operations therein:
provided, that any damage done to the property of the surface owner, occupant, or concessionaire
as a consequence of such operations shall be properly compensated as may be provided for in the
implementing rules and regulations: provided further, that to guarantee such compensation, the
person authorized to conduct mining operation shall, prior thereto, post a bond with the regional
director used on the properties, the prevailing rices in and around the area where the mining
operations are to be conducted, with surety or sureties satisfactory to the regional director.

iv) Commonwealth Act No. 141 (Public Land Act)

(1.) Section 110. Patents or certificates issued under the provision of this Act shall not include nor
convey the title to any gold, silver, copper, iron, or other metals or minerals or other substances
containing minerals, guano, gum, precious stones, coal, or coal oil contained in lands granted
thereunder. These shall remain to be property of the State.
(2) The prohibition applies also to lease of public lands under Section 41. The lease of agricultural
lands may be cancelled after notice if the said lands is more valuable for mineral extraction.

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D. HiddenTreasures(Art.438/439,NCC)

For legal purposes, hidden treasure is understood to be any hidden and unknown deposit of
money, jewelry, or other precious objects, the lawful ownership of which does not appear. Hence,
for a property to be considered as hidden treasure the following requisites must be satisfied:
(1) they consist of deposit of money, jewelry or other precious objects
(2)must be hidden or unknown; and
(3) the lawful ownership of which must not appear.
Under the ejusdem generis rule, the term other precious objects should be understood as being
similar to money or jewelry. Hence, the concept does not include natural wealth, i.e., minerals and
petroleum.
The Regalian doctrine reserves to the State all natural wealth that may be found in the bowels of
the earth even if the land where the discovery is made be private.As such, the right of the owner of
the land with respect to the sub-surface or subsoil is subject to the application of the Regalian
doctrine.

(TOLENTINO NOTES)
Hidden treasures pertain to movables, a prehistoric tomb or buried city are not included. The
movables found herein may be consider as hidden treasure (THough there are conflicting ideas
pertains to this).
If a treasure was purposely hidden by the owner, he may recover it from the finder. Though, if the
owner abandons it or considers it lost, it will become a hidden treasure.

Art. 438. Hidden treasure belongs to the owner of the land, building, or other property on
which it is found.

Nevertheless, when the discovery is made on the property of an- other, or of the State or
any of its subdivisions, and by chance, one-half 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. (351a)

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.

i) Hidden and unknown deposit of money, jewelry or other precious objects (Personal Property)
the lawful ownership of which does not appear (Art. 439, NCC)

ii) Belongs to the owner of the land/building (Principle of Accession)

iii) If by chance 1/2 belongs to the finder and another half belongs to land owner.

A finder is the one who found the treasure first, who exposed the treasure although he may not
take material possession of it
(employee who digs or transport materials is not a finder)

Note: if the owner of the land knows or suspects that there is a hidden treasure, therein orders a
search instead of merely giving permission, the finder is not entitled to a share unless...... there is a
stipulation.

Effect of Concealment
1. He doesnt lose his share
2. Becomes criminally and civilly liable for taking a thing not belonging to him
By Samuel A Zacate MD DPSMID, DPCOM,FICS,FPSVI, FICS, TCM,MHA,CPSH, CESO II (Medicus et Legem)
 Property Under The Civil Code Page 13 of 16

but not when he is a trespasser- not entitled for shares

iv) The State may acquire hidden treasure at their just price; Ground: Science/
Art

Same rule is applicable to state. However, If the thing found be of interest to science or the Arts,
the State may acquire them by paying just price, whether the finder of the treasure is the owner of
the property on which it is found or a third person.

(Nice to know)
Rule on Treasure Hunting
The provisions of Article 438 of the New Civil Code on hidden treasure shall apply only if the
discovery of the treasure is by chance. If the search for the hidden treasure is deliberate, otherwise
known as treasure hunting, such activity is governed by the following:

(1) Republic Act No. 8492, otherwise known as the National Museum Act of 1998, for issuance of
permits for the discovery/recovery of hidden treasures, shipwrecks/sunken vessels recovery
exclusively for materials of cultural and historical values, such as objects of arts, archaeological
artifacts, ecofacts, relics and other materials embodying the cultural and natural heritage of the
Filipino nation, as well as those of foreign origin

(2) As to issuance of permits not covered by R.A. No. 8492, the same shall be governed by DENR
Administrative Order No. 2002- 04, as amended by DENR AO No. 2004-2003, in relation to
Executive Order No. 35, dated September 15, 2001. Pursuant to EO No. 35, the function to issue
licenses and permits for treasure hunting and shipwreck recovery has been transferred from the
Office of the President to the Department of Environment and Natural Resources.
In case of treasure hunting for treasures which are not of cultural and historical values, the same
shall require the issuance of a permit for treasure hunting or shipwreck/sunken vessel recovery to
be issued by the Department of Environment and Natural Resources, whether the treasure hunting
is to be undertaken on private lands or government lands and subject to the consent of the private
landowners or government agencies concerned. Upon discovery of valuable items such as monies,
things and articles of value, resulting from treasure hunting and shipwreck/ sunken vessel recovery
activities, the National Museum shall be called upon to determine whether or not they are
considered to have cultural and/or historical value. In the event that the items are considered to
have historical and cultural value, it shall be turned over to the National Museum for appropriate
action. Otherwise, the same shall be turned to an oversight committee created pursuant to DENR
AO No. 2002-04 for valuation and disposition.All treasures found shall be allowed for export only
upon the approval of the National Heritage Commission and other concerned government
agencies. After an audited report of expenses has been evaluated and approved by the oversight
committee, the sharing of the net proceeds shall be as follows:

(1) for treasure hunting within public lands 75% to the Government and 25% to the permit holder

(2) for treasure hunting in private lands 30% to the Government and 70% to be shared by the
permit holder and the landowner; and

(3) for shipwreck/sunken vessel recovery 50% to the Government and 50% to the permit holder.

As to physical characteristics

By Samuel A Zacate MD DPSMID, DPCOM,FICS,FPSVI, FICS, TCM,MHA,CPSH, CESO II (Medicus et Legem)

 Property Under The Civil Code Page 14 of 16
(2) MovableProperty (Personal Property)

(Rabuya) In general, all things susceptible of appropriation which can be transported from place to
place without impairment of the real property to which they are fixed106 and not included in the
enumeration in Article 415107 are classified as personal or movable property.

General test of Movable Character

1. Whether it can be TRAVELLED FROM ONE PLACE TO ANOTHER
2. Whether the CHANGE OF LOCATION CAN BE EFFECTED WITHOUT INJURY TO AN
IMMOVABLE to which it is attached
3. Whether the object IS NOT INCLUDED in any of the paragraphs of article 415 (Immovable
property)

(a) EnumerationunderArt.416and417,NCC

Art. 416. The following things are deemed to be personal property:

CODE :(MRFT)
(1) Those movables susceptible of appropriation which are not included in the
preceding article;
(2) Real property which by any special provision of law is considered as
personalty;
(3) Forces of nature which are brought under control by science; and
(4) In general, all things which can be transported from place to place without
impairment of the real property to which they are fixed. (335a)

Art. 417. The following are also considered as personal property: (Code OS)

(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. (336a)

(b) Consumables or Non -Consumables art.418,NCC

Art. 418. Movable property is either consumable or non-consumable. To the first

class belong those movables which cannot be used in a manner appropriate to their
without their being consumed; to the second class belong all the others. (337)

The classification of property into consumable or non-consumable applies only to movable property
and does not find application to immovable property. In addition, such classification does not find
application to all kinds of movable property but only to those which are corporeal in nature. As
defined, a consumable is a movable which cannot be used in a manner appropriate to its nature
without itself being consumed. For example, a cigarette cannot be used in a manner appropriate to
its nature, i.e., for smoking, without itself being consumed. A non-consumable, on the other hand,
is a movable which can be used in a manner appropriate to its nature without itself being
consumed. An example of a non-consumable is table which can be used in the manner appropriate
to its nature and, yet, it will not be consumed.

By Samuel A Zacate MD DPSMID, DPCOM,FICS,FPSVI, FICS, TCM,MHA,CPSH, CESO II (Medicus et Legem)

 Property Under The Civil Code Page 15 of 16
(Paras)
Consumable this cannot be used according to its nature without its being consumed.
Non-consumable any other kind of movable property

(c) Fungible or Non-Fungible

A . According to their nature: consumable and non-consum- able.

(b) According to the intention of the parties: fungible and non-fungible (res fungibles and res nec
fungibles).

Another classification of movable property according to the intention or purpose of the parties, is
into fungible and non-fungible. On the other hand, the consumability of movable prop erty depends
upon the nature of the thing itself.

A thing is fungible if it can be substituted by another thing of the same kind, quantity and quality,
and non-fungible if not replaceable in such equivalents. Thus:

(1) Rice is by its nature consumable but if the parties intend a loan of rice, for display or exhibition,
it is in that sense non- fungible because the identical rice need be returned. If the rice is loaned for
consumption, it is not only consumable but also fungible.

(2) Money is by its nature (physically) non-consumable but it is considered consumable in the
sense that when used, money leaves the owner who thereby parts with it. Money is fungible
because the debtor need only to return an equivalent amount in case of simple loan. But if the
obligation is that the identical bills given are the same ones to be returned, then the money is non-
fungible.

(3) The obligation to deliver ten copies of a particular book involves fungible, but non-consumable
things.

(3) Importance of Distinguishing Movable from Immovable

Importance of Classification
The classification of property in Article 414 into immovable (real) and movable (personal) is based
on the nature of the thing itself and is the most important in point of law because of the various
legal consequences flowing therefrom, as follows:

1. For purposes of applying the rules of acquisitive prescription: The ownership of movables
prescribes through uninterrupted possession for four years in good faith or through
uninterrupted possession for eight years, without need of any other condition. Ownership and
other real rights over immovable property, on the other hand, are acquired by ordinary
prescription through possession of ten years10 or thirty years, without need of title or of good
faith.

2. In determining the propriety of the object of the contracts of pledge, chattel mortgage and real
estate mortgage:
Only movables can be the object of the contracts of pledge and chattel mortgage.On the other
hand, only immovables can be the object of a real estate mortgage contract. As a consequence,
should the parties execute a chattel mortgage over a real property, the same is null and void and
registration of the instrument in the Registry of Property does not validate it insofar as third parties
are concerned.

3. For purposes of determining the formalities of a donation:

By Samuel A Zacate MD DPSMID, DPCOM,FICS,FPSVI, FICS, TCM,MHA,CPSH, CESO II (Medicus et Legem)

 Property Under The Civil Code Page 16 of 16
If the value of the personal property donated exceeds P5,000.00, the donation and the
acceptance are required to be in writing; otherwise, the donation is void.15 In order that the
donation of an immovable property may be valid, it must be made in a public document, as well as
the acceptance thereof.

4. In extrajudicial deposit: Only movable things may be the object of extrajudicial deposit.17

5. In crimes of theft, robbery and usurpation:

Only personal property can be the object of the crimes of theft and robbery.However, the
crime of usurpation defined in Article 312 of the Revised Penal Code can be committed only with
respect to a real property.

OwnershipRights

i) Statute of Limitations

ii) Registration of ownership and interest in Property Registries

Taxation
i) Real property Taxation
ii) Taxation of Certain Movable Property

By Samuel A Zacate MD DPSMID, DPCOM,FICS,FPSVI, FICS, TCM,MHA,CPSH, CESO II (Medicus et Legem)