COURSE OUTLINE IN PROPERTY

DEFINITION

Generally, property is an economic concept referring to a mass of things

useful for human activity. It is synonymous with the concept of thing which is
broader in scope as it includes both that which may be appropriated and that which
may not be appropriated.

As a course in law, property is that branch of civil law which classifies and
defines the different kinds of appropriable objects, provides for their acquisition
and loss. It treats of the nature and consequences of ownership and possession of
real rights.

I Classification

1.a. Importance of Classification

The classification of property is significant due to different applicable

provisions of the law governing acquisition, possession, disposition, loss,
registration, etc.

Criminal Law
E Commerce
Form of contracts
Prescription
Action and Venue
Taxation

1.b. Classification under the Civil Code (Art. 414)

1. Immovable or Real Property Art. 415

a. by nature -(1) and (8)
b. by incorporation (2), (3), (7)
c. by destination (4), (5), (6), (9)
d. by analogy (10)

2. Movable or Personal Property Arts. 416,417, 418

Differences between Real Rights and Personal Rights

1.c. By Ownership

1.c.1. Res Nullius

1.c.2. Public Domain (Arts. 419, 420-422, 424)
 Effect of Classification of Property as Property of Public Dominion

Property is Outside the Commerce of Man

Property Cannot be the Subject of Acquisitive Prescription
Property Cannot be Attached or Levied upon in Execution
Property Cannot be Burdened with a Voluntary Easement

1.c.3. Property of State Art. 420-422

For Public Use

For Public Service
For Development of National Wealth

1.c.4. Property of Municipal Corporations Art. 424, par. 1

1.c.5. Private property

Patrimonial Property of State Art. 421

Patrimonial Property of Municipalities, Cities and Provinces
Art. 424, par. 2
Private Property of Private Persons Art. 425, par.
Individually
Collectively
1.b. Other Classification based on viewpoints

1.b.1 By their physical existence

a. Corporeal (tangible)
b. Incorporeal (intangible)

1.b.2. By their dependence or importance

a. Principal
b. Accessory

1.b.3. By their Subsistence (Art. 418)

a. Consumable
b. Non-Consumable

1.b.4. By the intention of parties

a. Fungible (replaceable)
b. Non-fungible (irreplaceable)
1.b.5. By its susceptibility to Division
 a. Divisible
b. Indivisible

1.b.6. By reason of Designation

a. Generic
b. Specific

1.b.7. By its existence

a. Present
b. Future

1.b.8. By its susceptibility to Commerce

a. Within the Commerce of Man

b. Outside the Commerce of Man

Cases:

Laurel vs. Garcia G.R. No. 92013 & 92047. July 25, 1990
Leung Yee vs Strong Machinery 37 Phil 644
Tsai vs Court of Appeals 366 SCRA 324
Davao Sawmill vs Castillo 61 Phil 709
La Bugal vs Ramos GR No. 127882 December 1, 2004
II. OWNERSHIP

A. Definition

Ownership It is independent and general right of a person to control a

thing, particularly in his possession, enjoyment, disposition and recovery, subject
to no restrictions, except those imposed by law and the rights of others.

Ownership is a relation in private law by virtue of which a thing (or property

right) pertaining to one person is completely subjected to his will in everything not
prohibited by public law or the concurrence with the rights of another.

B. Kinds of Ownership

a. Full ownership
b. Naked ownership
c. Sole Ownership
d. Co-ownership

C. Rights of an owner under the Civil Code (Art. 428)

c.1. the right to enjoy

includes . . . the right to possess (jus possidendi)

the right to use (jus utendi)
the right to the fruits (jus fruendi)

c.2. the right to dispose (jus disponendi)

includes . . . the right to consume or destroy (jus abutendi)

the right to encumber or alienate

c.3. the right to recover (jus vindicandi)

Object of recovery

a. Recovery of personal property

Replevin

b. Recovery of real property

Accion Reivindicatoria (reivindicatory action)

Accion Publiciana (plenary action to recover possession)
Forcible Entry or Unlawful Detainer

Requisites in an action to recover (Art.434)

 Identity of property
Strength of plaintiffs title

c.4. Disputable presumption of ownership (Art. 433)

D. Other Specific Rights Found in Civil Code 249, 430, 437, 438,
444

a. Right to Exclude; Self-help; Doctrine of Self Help; Art. 429

b. Right to Enclose or Fence Art. 430

- the right to exclude and enclose is subject to Art. 431 and the
state of necessity (Art. 432)

c. Right to Receive Just Compensation in Case of Expropriation

Art. 435
d. Right to Hidden Treasure Arts. 438-439

e. Right to accession Art. 440

D. Limitation of Real Right of Ownership

1. General Limitation

a. Police power

b. Taxation

c. Eminent domain

2. Specific Limitation

3. Limitations from other provisions of Civil Code

Arts. 431, 432
Arts. 2919, 677, 670, 649, & 652, 637, 676, 644, 684-687

4. Limitation under our Constitution

Art. XII, Sections 7 & 8

Cases:

1. Valdez vs. CA GR No. 132424. May 4, 2006

2. De Gallego vs. Land Authority, L-26848, August 17, 1981 106 SCRA
598, 604-606
III RIGHT OF ACCESSION

A. Concept (Art. 440)

The right of a property owner to everything which is:

1) produced thereby (accession discreta)

2) which is incorporated/attached thereto,(accession continua) either:
2.a) artificially
2.b) naturally

B. General Principles of Accession

a. Accessory Follows the Principal
b. No Unjust enrichment
c. All Works, Sowing and Planting are Presumed made by
Owner and at his Expense, unless contrary is proved.
d. Accessory Incorporated to principal such that it cannot be
Separated without Injury to Work Constructed or Destruction to
Plantings, construction or works Art. 447
e. Bad Faith of one Party Neutralizes Bad Faith and other
Dire Consequences
f. Ownership of Fruits To the Owner of Principal Thing:
Exceptions:

i. Possession in Good Faith

ii. In Usufruct
iii. In Lease
iv. In Antichresis

C. Obligation of Receiver of Fruits to pay expenses by 3 rd person in

production , gathering and preservation Art. 443

D. Kinds of accession

1. Accession Discreta (Fruits) Art. 441

a. Natural
b. Industrial
c. Civil

2. Accession Continua
a. Over Immovables

1. Artificial or Industrial Building, Planting

Sowing (bps)

a. Owner is Builder, Planter, sower (BPS)

Using Material of Another Art. 447
- In Good Faith
- In bad Faith
 b. BPS Builds Plants or Sows on Another`s
Land Using his Own Materials Art. 448-
454
BPS in Good Faith Art. 448
BPS in Bad Faith Art. 449, 450, 451

i. Options Open to Owner of Land

a. To acquire building, planting and sowing

BPS has right of retention
- retains possession without paying rental
- not entitled to fruits; his rights are the same as an
antichretic creditor

b. To sell and to BP to lease land to S

- BP may refuse if value of land considerable more

than what was BPed; then forced lease by LO
and BP
- BPS in Bad Faith Art. 449, 450, 451

ii. Rights of Builder Planter Sower in bad faith Art. 452,

443

- Land owner in bad faith but BPS in good faith

Art. 454, 447 reason for adverting to rule 447

BPS builds, plants, sows on anothers land with material owned by 3rd
person Art. 455

Good faith does not exclude negligence Art. 456

2. Natural
a. Alluvium Art. 457
b. Avulsion
c. Change of Course of River Art. 461-463
d. Formation of Islands Art. 461-465 PD 1067, Water Code

3. Over Movables

a. Conjunction and Adjunction

i. Inclusion or Engraftment
ii. Soldadura or soldering
a. Plumbatura different metals
b. Ferruminatio same metal
iii. Tejido or Weaving
iv Escritura or writing
 v. Pintura or painting
c. Commixtion and Confusion
d. Specification

IV. QUIETING OF TITLE

A. Differences Between Action to Quiet Title and Action:

- To Remove A Cloud
- To Prevent a Cloud

B. Prescription of Action Imprescriptible if plaintiff is in possession; if

not, prescribes within period for filing accion publiciana, accion reivindicatoria

C. Who are Entitled to bring Action? Rule 63 Sec. 1 (par.2) RC

D. Principles:

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

(Art. 476)
2. Plaintiff has legal or equitable title to or interest in the suject/real property.
3. Instrument, record, claim, etc. must be valid and binding on its face but in
truth and in fact invalid, ineffective, voidable or unenforceable
4. Plaintiff must return benefits received from defendant

Cases:
1. Republic vs. CA [G.R. No. L-61647. October 12, 1984.]
2. Depra vs Dumlao [G.R. No. L-57348. May 16, 1985.]
3. Tecnogas vs CA[G.R. No. 108894. February 10, 1997.]

V. CO-OWNERSHIP

A. Definition

The right of common dominion which two or mere persons have in a

spiritual part (or ideal portion) or a thing which is not physically divided.

B. Characteristics

1. The recognition of ideal shares, defined but not physically identified.

2. Each co owner has absolute control over his ideal share;
3. Mutual respect among co-owner in regard to use enjoyment and
preservation of thing as a whole.

C. Differences between partnership and joint tenancy.

D. Differences between partnership and co-ownership.
E. Sources of co-ownership

a. Law, e.g., party walls, hedges and ditches; co-ownership

b. Contract (duration of co-ownership, Art. 494)
c. Succession
d. Chance (Commixtion, hidden treasure)
e. Occupation (harvesting and fishing)

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

a. To use the thing according to the purpose intended may be altered by

agreement, express or implied, provided:
i. It is without injury or prejudice to interest of co-ownership and;
ii. Without preventing the use of other co-owners, Art. 486

b. To share in the benefits in proportion to his interest, provided the charges

are borne by each in the same proportion (Art. 485)

- Contrary stipulation in void

- Presumption is that portions are equal unless contrary is proved.

c. Each co-owner may bring an action in ejectment (Art. 487)

d. To compel other co-owner to contribute to expenses for preservation of

the thing or right owned in common and to payment of taxes (Art. 488)

- Co-owners option not to contribute by waiving his undivided interest

equal to amount of contribution (exception: if waiver prejudicial to
co-ownership)
- Requisites before repairs for preservation may be made of expenses
for embellishment or improvement may be made (Art. 489)
- Effects of failure to notify co-owners

e. To oppose any act of alteration; remedy of other co-owners

re: acts of alteration (Art. 491)

1. Acts of alteration
Concept
Distinguished from acts of administration Art. 492.
Effect of acts of alteration and remedies of non-consenting co-
owner

Is lease of real property owned in common an act of alteration? Art.

647 in relation to Art. 1878(8)

f. To protest against acts of majority which are prejudicial to minority (Art.

492 par. 3)
 g. To exercise legal redemption Art. 1620, 1623

h. To ask for partition Art. 494

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

a. Co-owner has the right:

1. To share in fruits and benefits
2. To alienate, mortgage or encumber and dispose of his ideal share
(but other co-owners may exercise right of legal redemption)
3. To substitute another person in the enjoyment of thing
4. To renounce part of his interest to reimburse necessary expenses
incurred by another co-owner (art. 488)

b. Effect of transaction by each co-owner

1. Limited to his share in the partition

2. Transferee does not acquire any specific portion of whole property
until partition
3. Creditors of co-owners may intervene in partition or attack the
same if prejudicial (Art. 497)

H. Are the rules on co-ownership applicable to conjugal partnership of gains or

absolute community of property?
I. Special rules on ownership based on provisions of Condominium Act (RA No.
4726)
1. Concept of Condominium
2. Essential requisites for Condominium
3. Rights and Obligations of Condominium owner

J. Extinguishment of co-ownership

1. Total destruction of thing

2. Merger of all interests in one person
3. Acquisitive prescription
a. By a third person
b. By one co-owner as against the other co-owners requisites and
unequivocal acts of:

i. Unequivocal acts of repudiation of co-ownership (acts amounting to

ouster of other co-owners) known to other co-owners and shown by clear
and convincing evidence

ii. Open and adverse possession, not mere silent extraordinary

acquisitive prescription.

iii. The presumption is that possession by co-owner is not adverse

 4. Partition or Division

a. Right to ask for partition at any time except:

i. When there is a stipulation against it (not over ten years)
ii. When condition of indivision is imposed by transferor (donor
or testator) not exceed 20 years Art. 494
iii. When the legal nature of community prevents partition
(party wall)
iv. When partition is generally prohibited by law (e.g. absolute
community of property)
v. When partition would render the thing unserviceable (but the
thing may be sold and co-owners divide the proceeds ( Art.
494)

Action for partition will fail if acquisitive prescription has set in.

b. Effect of Partition
Arts. 1091, 543, 1092-1093, 499-501
c. Right of Creditors of individual co-owners Art. 497
d. Procedure for Partition Rule 69 Rules of Court

Cases:

Del Campo vs CA, GR 108228, February 1, 2001

De Guia vs CA, GR 120864, October 8, 2003

Mercado vs CA, G.R. No. 108952, January 26, 1995

Tan vs CA, G.R. No. 79899, April 24, 1989, 172 SCRA 660.
VI. POSSESSION

A. Definition and Concept (Art. 523)

Possession is the holding of a thing or the enjoyment of a right, whether by

material occupation or by the fact that the thing or the right is subjected to the
action of our will.

It is a real right independent of and apart from ownership i.e., the right of
possession (jus possession is as distinguished from the right to possess [just
possidendi]

1. Essential requisites of possession:

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

i. The material or physical
ii. Exercise of a right
iii. Constructive possession

b. Intention to possess (animus possidendi)

B. Degrees of holding or possession

1. Mere holding or possession without title whatsoever and in violation of

the right of the owner, e.g. possession of a thief or a usurper of land.

2. Possession with juridical title but not that of ownership e.g. possession of
tenant, depository agent, bailee, trustee, lessee, antichretic creditor. This degree of
possession will never ripen into full ownership as long as there is no repudiation of
concept under which property is held.

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

4. Possession with just title from the true owner. The delivery of possession
transfers ownership, and strictly speaking, is the jus possidendi.

C. Cases of possession:
 1. Possession for oneself, or possession exercised in ones own name and
possession in the name of another (Art. 524)

2. Possession in the concept of an owner and possession in the concept of a

holder with the ownership belonging to another (Art. 525)

3. Possession in good faith and possession in bad faith (Art. 526)

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

faith.

D. What things or rights susceptible of appropriation may be the object of

possession (Art. 530)

E. What may not be possessed by private persons

a. Res communes
b. Property of public dominion
c. Right under discontinuous and/or non-apparent easement

F. Acquisition of Possession

1. Ways of acquiring possession (Art. 531)

a. Material occupation to the thing

i. The doctrine of constructive possession

ii. Includes constructive delivery;

1. Traditio brevi manu (thing already in transferees hands, e.g.

under a contract of lease, then delivered under a sale)
2. Traditio constitutum possessorium (thing remains in trasferrors
hands, e.g. sale, then retained under a commodatum)

b. Subjection to the action of our will

Includes traditio longa manu and traditio symbolica

c. Proper acts and legal formalities refers to the acquisition of possession

by sufficient title, intervivos or mortis causa, lucrative or onerous. Example:
donations, succession ( testate on intestate), contracts, judicial writs of
possession, writ of execution of judgments execution and registration of
public instruments.

2. By whom may possession be acquired: (Art. 532)

a. By same person; elements of personal acquisition

b. By his legal representative; requisites
 c. By his agent
d. By any person without any power whatsoever but subject to ratification,
without prejudice to proper case of negotiorum gestio (Art. 2144), 4129,
2150)
e. Qualifiedly, minors and incapacitated persons (Art. 525)

3. What do not affect possession (Art. 537, 1119)

a. Acts merely tolerated

b. Acts executed clandestinely and without the knowledge of the possessor
c. Acts by violence as long as possessor objects thereto (i.e. he files a case)
(Art. 536)

4. Rules to solve conflict of possession (Art. 538)

General Rule: Possession cannot be recognized in two different

personalities, except in cases of co-possession by co-possessors without
conflicting claims or interest.

In case of conflicting possession preference is given to:

a. Present possessor or actual possessor

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

G. Effects of Possession

1. In general, every possessor has a right to be respected in his

possession; if disturbed therein, possessor has right to be protected in or restored to
said possession (Art. 539)

a. Action to recover possession

i. Summary proceedings forcible entry and unlawful detainer.

Plaintiff may ask for writ of preliminary mandatory injunction.
ii. accion publiciana (based on the superior right of possession, not
of ownership)
iii. accion Revindicatoria (recovery of ownership)
iv. Action for replevin (possession or ownership for
movable property)

2. Possessor can employ self-help (Art. 429)

 3. Entitlement to fruits possessor in good faith / bad faith

4. Reimbursement for expenses possessor in good faith /bad faith

Liability for loss or deterioration of property by possessor
in bad faith. (Art. 553; 552)

5. Possession of movable acquired in good (in concept of owner) is

equivalent to title (Art. 559)

- Possessor has actual title which is defeasible only by true owner

- One who has lost a movable or has been unlawfully deprived thereof
may recover it without reimbursement, except if possessor acquired it
at a public sale.

H. Effect of possession in the concept of owner:

a. Possession may ripen into full ownership, subject to certain

exceptions
b. Presumption of just title and cannot be obliged to show or prove it
(Art. 541); exceptions (Art. 1131)
c. possessor may bring all actions necessary to protect his possession
except accion reivindicatoria
d. May employ self-help under Art. 429
e. Possessor may ask for inscription of such real right of possession in
the registry of property
f. Has right to the fruits and reimbursement for expenses (assuming he is
a possessor in good faith)
g. Upon recovery of possession which he has been unlawfully deprived
may demand fruits and damages.
h. Generally, he can do on the things possessed everything that the law
authorizes owner to do until he is ousted by one who has a better
right.
i. Possession in good faith and possession in bad faith. (Art. 528).

I. Presumptions in favor of the possessor:

1. Of good faith until the contrary is proved (Art. 527)

2. Of continuity of initial good faith in which possession was

commenced or possession in good faith does not lose this character
except in the case and from the moment possessor became aware or is
not unaware of improper or wrongful possession. (Art. 528).

3. Of enjoyment of possession in the same character in which possession

was acquired until contrary is proved (Art. 529)
 4. Of non-interruption of possession in favor of present possessor who
proves possession at a previous time until the contrary is proved (Art.
554) Arts. 112-1124)

5. Of continuous possession or non-interruption of possession of which

he was wrongfully deprived for all purposes favorable to him (Art.
561)

6. Other presumptions with respect to specific properties of property

rights:

i. Of extension of possession of real property to all movables contained

therein so long as it is not shown that the should be excluded;
exceptions (Art. 426).
ii. Non-interruption of possession of hereditary property (Art. 533 &
1078)
iii. Of just title in favor of possessor in concept of owner (Art. 541; but
also see Art. 1141).

J. Possession may be lost by:

a. Abandonment
b. Assignment, either onerous or gratuitous
c. Destruction of total loss of thing or it goes out of commerce
d. Possession by another, if possession has lasted longer than one year;
real right of possession not lost until after ten (10) years.
- subject to art. 537 (acts merely tolerated, etc.)
VII. USUFRUCT

A. Concept (Art. 562)

Usufruct is a real right, temporary in character that authorizes the holder to enjoy all the
advantages derived from a normal exploitation of anothers property, according to its destination
or purpose, and imposes and obligation of restoring at the time specified, either the thing itself or
its equivalent.

B. Historical considerations
C. Characteristics of Usufruct
D. Usufruct distinguished from lease; from servitude
E. Classes of Usufruct

1. By origin:
a. Voluntary
b. Legal Art. 321 C.C.; Effect of Art. 226, Family Code
c. Mixed

2. By person enjoying right of usufruct (Art. 564)

a. Simple
b. Multiple
1. Simultaneous
2. Successive
Limitation on successive usufruct (Art. 756, 863 & 869)

3. By object of usufruct (Art. 564)

a. Rights
b. Things
1. Normal
2. Abnormal, irregular or quasi-usufruct

4. By the extent of the usufruct

a. As to the fruits (Art. 564)
1. Total
 2. Partial

b. As to object
1. Singular
2. Universal (Art. 598)
- subject to provisions of Arts. 758 & 759

5. By the terms of usufruct (Art. 564)

a. Pure
b. Conditional
c. With a term (period)

F. Rights

a. Right to possess and enjoy the thing itself, its fruits and accessions
- Fruit consist of natural, industrial and civil fruits.
- As to hidden treasure, usufructuary isconsidered a stranger (Art. 566; 436)
- Fruits pending at the beginning of usufruct (Art. 567)
- Civil fruits (Art. 569, 588)

b. Right to lease the thing (Art. 572)

- Limitations
- Liability of usufructuary lessor (Art. 590)
- Exceptions to right of leasing the thing

c. Right to improve the thing (Art. 579)

As to the legal right of usufruct itself

a. Right to mortgage
b. Right to alienate the usufruct, except in purely personal usufructs, or when title
constituting it prohibits the same.

G. Rights of the naked owner

1. At the beginning of usufruct

(obligations of usufructuary)

2. During the usufruct;

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

H. Obligations of Usufructuary

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

A. to make inventory (Art. 583)

1. Requisites of Inventory
i. Immovable described
ii. Movable appraised

2. Exception to requirement of inventory

i. No one will be injured thereby (Art. 585)

ii. Title constituting usufruct excused the making of inventory
 iii. Title constituting usufruct already makes an inventory

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

1. No bond is required in the following:

i. No Prejudice would result (Art. 585)

ii. usufruct is reserved by donor (Art. 584)
iii. Title constituting usufruct excused usufructuary

2. During the usufruct.

a. To take care of the thing like a good father or a family (Art. 589)
- Effect of failure to comply with obligation (Art. 610)

b. To undertake ordinary repairs (Art. 592)

Concept of ordinary repairs

c. To notify owner of need to undertake extra-ordinary repairs (Art. 593)

1. Concept of extraordinary repairs.

2. Naked owner obliged to undertake them but when make by

owner, usufructuary pays legal interest on the amount while
usufruct lasts (Art. 594, par. 1)

3. Naked owner cannot be compelled to undertake extra-ordinary

repairs.

a. If indispensable and owner fails to undertake extraordinary

repairs may be made by usufructuary; (Art. 594, 2)

d. To pay for annual charges and taxes on the fruits

e. To notify owner of any act detrimental to ownership (Art. 601)
f. To shoulder the costs of litigation re usufruct (Art. 602)
g. To answer for the fault or negligence of alienee, lessee, or agent of
usufructuary (Art. 590)

I. At the time termination of the usufruct

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

J. Special Cases of usufruct

1. Usufruct over a pension or periodical income (Art. 570)

2. Usufruct of property owned in common (Art. 582)
3. Usufruct of head of cattle (Art. 591)
4. Usufruct over vineyards and woodlands (Art. 575-576)
5. Usufruct on a right of action (Art. 578)
6. Usufruct on mortgaged property (Art. 660)
7. Usufruct over an entire patrimony (Art. 598)
- Liability of usufructuary for debts
8. Usufruct over deteriorable property (Art. 578)
9. Usufruct over consumable property (or quasi-usufruct)
Art. 574
K. Extinguishment of usufruct (Art. 603)

1. Death of usufructuary unless a contrary intention clearly appears

2. Expiration of period of fulfillment of resolutory condition imposed on usufruct by

person constituting the usufruct

. time that may elapse before a third person attains a certain age, even if the
latter dies before period expires
- unless granted only in consideration of his existence Art. 606

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

4. Renunciation of usufruct

a. Limitations
- Must be express
- If made in fraud of creditors, waiver may be
rescinded by them through action under Art. 1381

5. Extinction or loss of property

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

608)
1. When insurance premium paid by the owner and usufruct (Art.
608, Par 1)
a. If owner rebuilds, usufruct subsist on new building
b. If owner does not rebuild interest upon insurance proceed
paid to usufructuary

2. When the insurance taken by owner only because usufrutaury

refuses Art. 608, par. 2)

a. Owner entitled to insurance money (no

interest paid to usufructuary)
b. If he does not rebuild, usufruct continues over remaining
land and / or owner may pay the interest on value of both
(Art. 607)
c. If owner rebuilds, usufruct does not continue on new
building, but owner must pay interest on value on land and old
materials.

3. When insurance taken by usufructuary only depends on value of

usufructuarys insurable interest (not provided for in Civil Code).

a. Insurance proceeds to usufructuary

b. No obligation to rebuild
c. Usufruct continues on the land
d. Owner does not share in insurance proceeds

b. If destroyed property is not insured (Art. 607)

1. If building forms part of an immovable under

usufruct
 a. If owner does rebuild, usufruct
continues over the land and materials
b. If owner rebuilds, usufructuary must allow owner to
occupy the land and to make use of materials, but
value of both and land and materials

6. Termination of right of person constituting the usufruct

7. Prescription
Cases covered: If third party acquires ownership of thing or
property in usufruct or right of ownership lost through prescription or right
of usufruct not began within prescriptive period, or if there is a tacit
abandonment or non-user of thing held in usufruct for required period.

8. What do not cause extinguishment of usufruct

a.
Expropriation of thing in usufruct (Art. 609)
b.
Bad use of thing in usufruct (Art. 810
Owners right
c. Usufruct over a building (Art. 607, 608)
VII. EASEMENT OR SERVITUDES

A. Definition Easement or real servitudes is a real which burden a thing with a

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

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

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

2. It is a right enjoyed over another property

3. It is a right constituted over an immovable by nature (Land and buildings), not

over movables.

4. It limits the servient owners right of ownership for the benefit of the dominant
estate. Right of limited use, but no right to posses servient estate, Being an
abnormal limitation of ownership, it cannot be presumed.

5. It creates a relation between tenements

6. It cannot consist in requiring the owner of the servient estate to do an act,

(servitus in faciendo consistere nequit) unless the act is accessory to a praedial servitude
(obligation propter rem)

7. Generally, it may consist in the owner of the dominant estate demanding that the
owner of the servient estate refrain from doing something (servitus in non faciendo), or that the
latter permit that something be done over the servient property (servitus in patendo), but not the
right to demand that the owner of the servient estate do something (servitus in faciendo) except if
such obligation to a praedial sevitude (obligation propter rem).
 8. It is inherently or inseparable from estate to which they actively or passively
belong (Art. 617)

9. It is intransmissible, i.e., it cannot be alienated separately from the tenement

affected, or benefited.

10. It is indivisible. (Art. 618)

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

C. Classification of Servitudes

1. As to recipient of benefits:

a. Real or Praedial
b. Personal (Art. 614)

2. As to origin:
a.Legal whether for public use or for the interest of private persons (Art. 634)
b. Voluntary

3. As to its exercise (Art. 615)

a. Continuous
b. Discontinuous

4. As indication of its existence (Art. 615)

a. Apparent
b. Non-apparent

5. By the object or obligation imposed (Art. 616)

a. Positive
b. Negative (prescription start to run from service of notarial prohibition)

D. General rules relating to servitudes

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

E. Modes of Acquiring Easements.

1. By title-juridical act which give rise to the servitude, i.e. law donations, contracts
or wills.

a. If easement has been acquired but no proof of existence of easement

available, and easement is one that cannot be acquired by prescription then

1. May be cured by deed of recognition by owner of servient estate, or

 2. By final judgment
3. Existence of an apparent sign considered a title (Art. 624)

2. By prescription (distinguish bet. positive vs negative)

F. Rights and Obligations of Owners of Dominant and Servient Estates.

1. Right of owner of dominant estate

a. To use the easement (Art. 626) and exercise all rights necessary for the use of
the (Art. 625)

b. To do at his expense, all necessary works for the use and preservation of the
easement (Art. 627)

c. In a right of way, to ask for change in width of easement sufficient for needs of
dominant estate (Art. 651)

2. Obligations of the owner of Dominant Estate:

a. To use the easement for benefit of immovable and in the manner originally
established (Art. 626)

b. To notify owner of servient estate before making repairs and to make

repairs in a manner least inconvenient to servient estate.

c. To contribute to expenses of works necessary for use and preservation of

servitude, if there are several dominant estates, unless be
renounces his interest (Art. 628).

3. Rights of owner of servient estate

a. To retain ownership and use of his property (Art. 630)

b. To change the place and manner of use the easement (Art. 629, par. 2)

4. Obligations of the servient estate

a. Not to impair the use of the easement (Art. 628, par. 1)

b. To change the place and manner of use the easement (Art. 628, par. 2)

G. Modes of Extinguishment of Easements:

1. Merger must be absolute, perfect and definite, not merely temporary.

2. By non-user for 10 years.
a. Computation of the period

(1) discontinuous easements; counted from the day they ceased to be used.
(2) continuous easements: counted from the day an act adverse to the exercise
took place.
 b. The use by a co-power of the dominant estate bars prescription with
respect to the others (Art. 633)

c. Servitudes not yet exercised cannot be extinguished by non-user.

3. Extinguishment by impossibility of use

4. Expiration of the term or fulfillment of resolutory condition
5. Renunciation of the owner of dominant estate must be specific clear, express
(distinguished from non-user)
6. Redemption agreed upon between the owners
7. Other causes not mentioned in Art. 631

a. Annulment or rescission of the Title constituting the easement

b. Termination of the right of grantor
c. Abandonment of the servient estate
d. Eminent domain
e. Special cause for extinction of legal rights of way; if right of way; if right
of way no longer necessary Art. 651 655

H. Legal Easements

1. Law Governing Legal Easement

a. For public easements

1. Special laws and regulations relating thereto, e.g. Pres. Decree

1067, P.D. 705

2. By the provisions of Chapter 2, Title VII, book II New Civil Code

b. for private legal easements

1) by agreement of the interest parties whenever the law does not
prohibit it and no injury is suffered by a third person.
2) by the provisions of Chapter 2, Title VII book II

2. Private Legal Easements provided for by the new Civil Code

a. Those established for the use of water or easements relating to waters (Art.
637-648)

1) Natural drainage of waters (Art. 637)

2) Easements on lands along riverbanks (Art. 638), See Water Code.
3) Abutment of a dam (Art. 639)
4) Aqueduct (Art. 645-646)
5) Drawing waters and watering animals (Art. 640)
6) Stop lock or sluice gate (Art. 649)

b. The easement of party wall (Art. 649-657)

c. The easement of party wall (Art. 658-666)

d. The easement of light and view (Art. 667-673)

 e. The easement of drainage of buildings (Art. 674-676)

f. The easement of distance for certain constructions and plantings (Art. 677-681)

g. The easement against nuisances (Art. 682-683)

h. The easement of lateral and subjacent support (Arts. 684-687)

Book III Different Modes of Acquiring Ownership.

1. MODE AND TITLE DIFFERENTIATED

Mode is the specific cause which produces dominion and other real rights as a
result of the co-existence of special status of things, capacity and intention of person of persons
and fulfillment of the requisites of law.

Title is every juridical right which gives a means to the acquisition of real rights
but which in itself is insufficient.

2. MODES OF ACQUISITION OWNERSHIP

a. Original Modes which produce the acquisition of ownership independent

of any pre-existing right of another person, hence, free from any burdens or encumbrances.

i. Occupation
ii. Intellectual creation

b. Derivative Modes based on a right previously held by another person,

and therefore, subject to the same characteristics powers, burdens, etc. as when held by previous
owner.

1. Law e.g. registration under Act 496; estoppel of title under Art. 1434 CC
marriage under absolute community of property system; hidden treasure; accession (Art. 445);
change in rivers course (Art. 461); accession continua over movables (ART. 466); Art. 681,
1456 CC, and Art. 120 FC.

I. Donation
ii. Succession
iii. Prescription
iv. Tradition
 Requisites:

(1) Pre-existence of right in estate of grantor

(2) Just cause or title for the transmission
(3) Intention (of both grantor and grantee)
(4) Capacity to transmit and to acquire
(5) An act giving it outward form, physically, symbolically, or legally.

Legal Maxim: Non nudis pactis, sed traditione, dominia rerum transferentur (Not by mere
agreement, but by delivery, is ownership transferred).

Kinds of Tradition:

a. Real Tradition
b. Constructive Tradition

i. Symbolical delivery
ii. Delivery of Public Instrument
iii. Traditio Longa manu
iv. Traditio Brevi manu
v. Traditio Constitutum Possessorium
vi. Quasi-Tradition
vii. Tradition by operation of law.

3. OCCUPATION

a. Not applicable to ownership of a piece of land (Art. 714 CC)

b. Privilege to hunt and fish regulated by special law (Art. 715)
c. Occupation of a swarm of bees or domesticated animals (Art. 716) see also Art.
560
d. Pigeons and fish (Art. 717)
e. Hidden treasure (Art. 718) see also Art. 438-439
f. Lost movables; procedure after finding lost movables (Art. 719-720)

4. INTELLECTUAL CREATION Intellectual Property Code

(Rep. Act No. 8293)

Intellectual Property Rights (IPR):

A. Copyright & related rights
b. Trademarks & service marks
c. Geographic indications
d. Industrial designs
e. Patents
f. Topographies of integrated circuits
g. Rights of performers, producers of sound recordings & broadcasting orgs.
h. Protection of undisclosed information
i. Laws repealed by the Intellectual Property Code (Sec. 239)

All Acts and part of Acts inconsistent with Intellectual Property Code,
particularly:

- Pres. Decree No. 49 - Intellectual Property Decree, including PD 285 as amended

- Rep. Act. No 165, as amended Patent Law
 - Rep. Act. No. 166, as amended
- Arts. 188 & 189 of the Revised Penal Code

DONATION

I. Nature of Donation A bilateral contract creating unilateral obligations on

donors part.

II. Requisites of donation:

a. Consent and capacity of the parties
b. Anumus donandi (causa)
c. Delivery of thing donated.
d. Form as prescribed by law

Note: There must be impoverishment (in fact) of donors patrimony and enrichment on
part of donee)

III. Kinds of donations

1. As to its taking effect

a. Inter vivos (Art. 729, 730, 731)
b. Mortis causa (Art. 728)
c. Propter nuptias (Art. 82, 87, Family Code)

2. As to cause or consideration:
a. simple
b. renumeratory
c. onerous (imposes a burden inferior in t value property donated)

i. improper-burden equal in value to property donated

ii. sub-modo or modal e.g. imposes a prestation upon donee as to
how property donated will be applied.
iii. mixed donations negotium mixtum cum donatione e.g. sale for
price lower than value of property.

3. As to effectivity or extinguishment
a. pure
b. conditional of an impossible condition
c. with a term

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

5. Characteristics of a donation mortis causa

a. convey no title or ownership before donors death
b. before donors death transfer is revocable
c. transfer is void if donor survives donee.

6. Distinction between donation mortis causa and donation inter vivos.

a. What is important is the time of transfer of ownership, even if transfer of
property donated may be subject to a condition or term.
b. Importance of classification validity and revocation of donation.

IV Who may not give or receive donations Art. 735, 737, 738, 741, 742.
V. Who may give or receive donations (Art. 736, 739 (1027, 1032), 740, 743

VI. Acceptance of donation

a. Who may accept (Art. 745, 747)

b. time of acceptance of donation inter vivos ( Art. 746) donation mortis causa

VII. Form of donations

a. personal property (Art. 748)
b. real property (Art. 749)
c. Rules in Art. 748 and 749 not applicable to
i. onerous donations
ii. modal donations
iii. mortis causa donations
iv. donations propter nuptias

VIII. What may be donated

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

a. provided he reserves, in full ownership or usufruct, sufficient means for
support of himself and all relatives entitled to be supported by donor at time of
acceptance (Art. 750)
b. provided that no person may give or receive by way of donation, more
than he may give or receive by will (Art. 752) also, reserves property sufficient to pay donors
debts contracted before donation, otherwise, donation is in fraud of creditor, (Arts. 759, 1387)

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

Exceptions:

a. donations provided for in marriage settlements between future spouse (Art. 84,
Family Code; Art. 130 C.C.) not more than 1/5 of present property.
b. donations propter nuptias by an ascendant consisting of jewelry, furniture or
clothing not to exceed 1/10 of disposable portion (Art. 1070)

2. What may not be donated

a. future property meaning of property (Art. 751) exception: marriage settlements
of future spouses only in event of death to extent laid down in civil code re: testamentary
succession (Art. 130 C.C.; Art. 84 Family Code)

IX. Effect of Donation

A. In general

1. Donee may demand actual delivery of thing donated.

2. Donee is subrogated to rights of donor in the property donated (Art. 754)

3. Donor not obliged to warrant things donated, except in onerous donations

in which case donor is liable for eviction up to extent of burden (Art. 754)

4. Donor is liable for eviction or hidden defects in case of bad faith on his
part. (Art. 754)
 5. In donations propter nuptias, donor must release property donated from
mortgages and other encumbrances, unless contrary has been stipulated (Art. 131 C.C.0

6. Donations to several donees jointly no right of accretion, except;

a. Donor provides otherwise

b. Donation to husband and wife jointly with right fo accretion (jus
accrescindi), unless donor provides otherwise (Art. 753)

B. Special provisions
1. Reservation by donor of power to dispose (in whole or in part) or to encumber
property donated (Art. 755)
2. Donation of naked ownership to one donee and usufruct to another (Art. 756 CC)
3. Conventional reversion in favor of donor or other person (Art. 757)
4. Payment of donors debt-(Art. 758
a. If expressly stipulated-
1. donee to pay only debts contracted before the donation, unless
specified otherwise but in no case shall donee be responsible for debts exceeding
value of property donated, unless clearly intended.

b. If there is no stipulation- Donee answerable only for donors debt only in

case is fraud of creditors.

X. Revocation and reduction of donations

A. Revocation distinguished from reduction of donation.

B. Causes of reduction / Revocation

1. Inofficiousness of donation (Art. 752, 771, 773; Art. 911, & 912 also
govern reduction
a. Who may ask for reduction (772)
b. Rule applied if disposable portion not sufficient to cover two or
more donations (Art. 773)

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

(Art. 770)

C. Revocation (only)

1. Ingratitude (Art. 765)

a. Causes
b. Time to file action for reservation
(Art. 769)
c. Who may file (Art. 770)
d. Effect of revocation

i. On elienations and mortagages

(Art. 766; 767)

2. Violation of condition

a. Prescription of action
b. Transmissibility of action
 3. Effect of revocation or reduction Art. 762, 764 par. 2
767)
4. Effect as to fruits (Art. 768)

XI. Lease

1. General characteristics (of every lease)

i. Temporary duration
ii. Onerous
iii. Price is fixed according to contract duration

2. Kinds of Leases

a. Lease of things movables and immovables

b. Lease of work or contact of labor (Arts. 11700-1712)
c. Lease of service

i. Household service
ii. Contract of the piece of work (Arts. 1713-1731)
iii. Lease of service of common carriers
(Art. 1732-1763)

3. Lease of Things

a. concept- (Art. 1643)

b. consumable things cannot be the subject matter of lease, except;
(Art. 1645)

i. consumable only for the display or advertising (lease ad

pom pam et ostentationnem)
ii. goods are accessory to an industrial establishment, e.g.
coal in the factory

c. special characteristics of lease of things:

i. essential purpose is to transmit the use and enjoyment of a thing
ii. consensual
iii. onerous
iv. price fixed in relation to period of use or enjoyment
v. temporay

d. lease distinguished from sale, usufruct, commondatum

e period of lease cannot be perpetual