CHAPTER 2

ACQUISITION OF POSSESSION

Art. 531. Possession is acquired by the material occupation of a thing or the exercise of a right, or by
the fact that it is subject to the action of our will, or by the proper acts and legal formalities
established for acquiring such right. (438a)

How is Possession Acquired

1. By material occupation – detention of a thing or exercise of a right
2. By subjection to our will – by mere agreement; delivery of keys or by long hands. Do not
require actual physical detention or seizure.
3. By constructive possession – proper acts and legal formalities; succession, donation,
execution of public instruments; or thru possession by a sheriff thru court order.

Essential Requirements for Possession

1. corpus (thing physically detained)
2. animus intent to possess (whether evidenced expressly or impliedly)

Note:
 Execution of public instrument is equivalent to delivery of thing
 If tenancy is not enjoyed due to opposition of another, then delivery is not
effected.
 If a lot buyer cannot show a deed of conveyance, probability is that there was
no immediate transfer of ownership.

Art. 532. Possession may be acquired by the same person who is to enjoy it, by his legal
representative, by his agent, or by any person without any power whatever: but in the last case, the
possession shall not be considered as acquired until the person in whose name the act of possession
was executed has ratified the same, without prejudice to the juridical consequences of negotiorum
gestio in a proper case. (439a)

Acquisition of Possession of the Possessor

1. personal
-intent; capacity to possess; object must be capable of being possessed.
2. thru authorized person (agent or legal representative)
-intent tp for principal; ctp for another; principal has intent and capacity to
posses
3. thru Unauthorized person (negotiorum gestio)
-intent tp for another; capacity of principal to possess; ratification by principal
Note:
 NG- whoever voluntarily takes charge of the agency or management of the business or
property of another without any power from the latter, is obliged to continue the same until
termination of affairs and its incidents.

Art. 533. The possession of hereditary property is deemed transmitted to the heir without
interruption and from the moment of the death of the decedent, in case the inheritance is accepted.
One who validly renounces an inheritance is deemed never to have possessed the same. (440)

Acquisition of P thru Succession (Mortis Causa)

1. If heir accepts- from the moment of death since there is no interruption
“Father died on December 12, 2012, the son accepted the inheritance on December
2, 2012. Possession is deemed transmitted not on December 2, but on December 12,
due to the retroactive effect of the acceptance.

2. If heir refuses- one who validly renounces inheritance is deemed never to have
possessed the same.
“ Father died on February 4, 2012. Son repudiated inheritance on February 19, 2012.
 Who was then the owner before the date of repudiation? If the father left no other
heirs, the State is supposed to have succeeded him, and therefore the State was the
owner and possessor of the property here, after its escheat to the government, it will
become Patrimonial Property” – owned by the State but not devoted to public use,
service or development of national capacity. It is the property owned by the state in
its private or propriety capacity. Can be acquired by individuals thru prescription.
Possessor. (patrimonial property)

Art. 534. One who succeeds by hereditary title shall not suffer the consequences of the wrongful
possession of the decedent, if it is not shown that he was aware of the flaws affecting it; but the
effects of possession in good faith shall not benefit him except from the date of the death of the
decedent. (442)

If decedent acquire I bad faith, the son is presumed to be in good faith, but counted only upon
decedent’s death.
“Father possessed in bad faith, A’s land for 6 years. Upon his death, B his son, inherited the
land. B was in good faith. For how many years more from the father’s death, should B possess the land
in order to become its owner? For 8 years more, since the effects of his possession in good faith should
begin only upon the father’s death. Be noted that extraordinary prescription requires 30 years and
ordinary prescription requires 10 years, then 6 years possession in bad faith, equivalents to 2 years of
good faith. 3 years of bad faith is equivalent to 1 year of good faith. 2 years plus 8 is 10 years.

Art. 535. Minors and incapacitated persons may acquire the possession of things; but they need the
assistance of their legal representatives in order to exercise the rights which from the possession
arise in their favor. (443)

Possession by them is allowed only in those matters where they have capacity to act – ( to do
acts with legal effects such as physical seizure, donation of personal property) but not possession
where juridical acts – (fitness to be the subject of legal relations) are important, the intervention of
legal guardians is then needed.

“A minor may acquire the possession of a guitar donated to him, but in case of court action
regarding the ownership of the guitar, legal representative must intervene.

Art. 536. In no case may possession be acquired through force or intimidation as long as there is a
possessor who objects thereto. He who believes that he has an action or a right to deprive another
of the holding of a thing, must invoke the aid of the competent court, if the holder should refuse to
deliver the thing. (441a)

Possession cannot be acquired:

1. thru FORCE or INTIMIDATION – it will be this case, as long as there is a possessor who objects
thereto. The act of entering into the premises and excluding the lawful possessor therefrom
necessarily implies the exertion of force over the property.

The force maybe: actual or merely threatened; done by possessor or his agent; done against
the owner or against any possessor or against owner’s representative such as a capataz; done to oust
possessor; or if occupied during the latter’s absence, done to prevent his getting back the premises.

The objection may be made by suit of forcible entry within a year from the dispossession,
otherwise the possession de facto is lost.

Art. 537. Acts merely tolerated, and those executed clandestinely and without the knowledge of the
possessor of a thing, or by violence, do not affect possession.(444)

2. thru acts of TOLERANCE – where a person occupies another’s land with the latter’s
permission, the occupier, no matter how long he many remain, can never acquire ownership,
because he never had possession.
“Land belonging to Religious Organization was occupied by an LGU, erected thereon a Rizal
Monument, but which could not present no other proof of ownership. That there was mere
tolerance and permission on the part of the church was the conclusion the court reached,
resulting to the decision denying title to the LGU.
 3. thru CLANDESTINE – a secret possession, or possession by stealth. For clandestine
possession to affect the owner’s possession, the possession must also be known to the owner.
If it I secret to many, but known to the owner, his possession is affected. There is a
presumption however that when possession id clandestine, it is also unknown to the owner.

Art. 538. Possession as a fact cannot be recognized at the same time in two different personalities
except in the cases of co-possession. Should a question arise regarding the fact of possession, the
present possessor shall be preferred; if there are two possessors, the one longer in possession; if the
dates of the possession are the same, the one who presents a title; and if all these conditions are
equal, the thing shall be placed in judicial deposit pending determination of its possession or
ownership through proper proceedings. (445)

Possession as a fact cannot be recognized at the same time in 2 different personalities

Except;
 with co possessors (for there will be no conflict of interest, both of them act as co-owners)
 possession in different concepts or different degrees (owner and tenant are possessors as a
fact at the same time, in the concept of owner and in the concept of holder.

Rules or criteria in case of conflict.

a. present owner shall be preferred.
b. if both are present, the one longer in possession.
c. if both began to possess at the same time, the one who present a title.
d. if both present a title, the court will determine (meantime, thing shall be judicially
deposited). However in Manresa, the one who holds the older title, shall have the right.

“A began to possess a parcel of land in 2003; B began to do the same in 2007 and both are
actually there. Whose possession will be recognized?” “A’s possession as a fact will be recognized
since his possession is longer.”
“On March 15, 2007 both A and B, at exactly the same hour, began to possess my land, A
without any right whatsoever, B as my tenant or because he purchased the land from me. Who should
be preferred? “B because he has a title either the lease right or the purchase from me.
“ Suppose both possessors who began possessing at the same time could present a title, who
should be preferred?
“ Manresa says that the person with the older title must be preferred, which therefore, no
need for any judicial deposit.”

CHAPTER 3

EFFECTS OF POSSESSION

Art. 539. Every possessor has a right to be respected in his possession; and should he be disturbed
therein he shall be protected in or restored to said possession by the means established by the laws
and the Rules of Court.

A possessor deprived of his possession through forcible entry may within ten days from the filing of
the complaint present a motion to secure from the competent court, in the action for forcible entry,
a writ of preliminary mandatory injunction to restore him in his possession. The court shall decide
the motion within thirty (30) days from the filing thereof. (446a)

Right to be respected in Possession

1. right of person to be respected in his possession (first effect of possession)
2. protection or restoration to the possession thru legal means
3. preliminary mandatory injunction – granted at any stage of action/proceeding prior to final
order or judgement. Its either to refrain or perform a certain act or to preserve the stat quo.
This is not a substitute for the action to recover possession, for this is only applicable
temporarily. In the meantime, the possessor has in his favor the presumption of rightful
possession, till the case is finally decided. Why? Because there are at present prolonged
litigations between the owner and the usurper, and the former is frequently deprived of his
possession even when he has an immediate right thereto.
 “Villanueva and 47 others sued in the Court their alleged landowner whom they said was
threatening to eject them from a portion of the hacienda of which they were tenants. To
prevent their ouster, they asked for a restraining order (pendent lite). This restraining order
was granted.
“Should this order be allowed to continue?”
“Affording tenants a greater leverage (power authority), particularly in the area of security, Is
a governmental policy”. Its to prohibit the ejectment of said tenants until respective rights of
both parties are determined in accordance wth rules and regulations implementing PD 27.

Reason for protection of Possession

1. Possession is very similar to ownership, and as a matter of fact modifies ownership.
2. Possession almost invariably gives rise to the presumption that the possessor is the owner.

Note: “Every possessor” indicates that all kinds of possession, from that of the owner to that
of the mere holder, except that which constitutes to a crime, should be protected by means
established by law and rules of procedure.

Reason for requiring legal means

1. to prevent spoliation or a disregard of public order
2. to prevent deprivation of property without due process of law
3. to prevent person from taking the law into his own hands.

Art. 540. Only the possession acquired and enjoyed in the concept of owner can serve as a title for
acquiring dominion. (447)

If a person possesses in the concept of the owner, he may eventually become the owner by
prescription. Thus a possessor in the concept of the holder cannot acquire property by acquisitive
prescription. For prescription to set in, the possession must be adverse, public and to the exclusion of
all.

Possession in the concept of Holder

a. Lesses, Trustees, Antichretic creditors, agents, attorneys, depositories, co-owners

Art. 541. A possessor in the concept of owner has in his favor the legal presumption that he possesses
with a just title and he cannot be obliged to show or prove it. (448a)

Presumption that Possessor has a Just Title

a. One must be in possession
b. Possession must be in concept of owner
Actual possession of property under claim of ownership raises the disputable presumption of
ownership; the true owner must resort to judicial process for the recovery of the property.

Reason for presumption

a. P that one is in good faith
b. inconvenience of carrying proofs of ownership around.

Kinds of Titles
True and valid Title – there was a mode of transferring ownership and the grantor was
the owner. It’s a title which by itself is sufficient to transfer ownership without the necessity
of letting prescriptive period lapse.
“ B bought a Ford expedition limited from S, the owner thereof. Then S delievered the car to
B. B now has a true and valid title. Thus if B possesses the vehicke and drives it around as an
owner, other people cannot compel him to prove his ownership over the same.

Colorable Title – Although there was a mode of transferring ownership, something is

wrong, because grantor is not the owner.
“ B bought BMW car from S. S then delivered the car to B. but t turns out that S never owned
the car, and that somebody else was its owner. So B’s title is “colorado” or just title, and
willonly acquire ownership thru prescription.
 Putative Title – although the person believes himself to be the owner, he nonetheless
is not, because there was no mode of acquiring ownership.
“A is in possession of a piece of property in the mistaken belief that it had been inherited by
him from y.

Art. 542. The possession of real property presumes that of the movables therein, so long as it is not
shown or proved that they should be excluded. (449)

Presumption of Possession of Movables Found in an immovable.

“If I possess a house, it is presumed that I also possess the furniture therein.

This article refers to the personal things and not right.

Art. 543. Each one of the participants of a thing possessed in common shall be deemed to have
exclusively possessed the part which may be allotted to him upon the division thereof, for the entire
period during which the co-possession lasted. Interruption in the possession of the whole or a part
of a thing possessed in common shall be to the prejudice of all the possessors. However, in case of
civil interruption, the Rules of Court shall apply. (450a)

Exclusive Possession by Previous Co-owner

A and B have been co-possessors of a piece of land in Greenhills since 2002. If in 2004, there is
a partition, A is deemed to have possessed exclusively the portion given him, not since 2002 but since
2004.
Interruption in Possession of the Whole
A, B and C have been co-possessors of a piece of land since 2002, If in 2004, A, B, and C lose
possession over the whole land, it can be said that the three of them were in possession for only 2
years.
Interruption in Possession of Part of the thing
A and B have been co-possessors of a piece of land since 2002, thru a mutual agent X. In 2004,
X lost possession of one-fifth of the land. A’s and B’s possession over the remaining four-fifth
continues, the interruption being limited only one-fifth.

Civil Interruption
Produced by judicial summons to the possessor.

Art. 544. A possessor in good faith is entitled to the fruits received before the possession is legally
interrupted.

Natural and industrial fruits are considered received from the time they are gathered or severed.

Civil fruits are deemed to accrue daily and belong to the possessor in good faith in that
proportion. (451)

Right of Possessor in good faith to Fruits already received

Fruits be retained by the possessor who taught that he was really the owner of the property,
and who, because of such, thought had regulated his daily life, income and expense by virtue of such
fruits.
“A in good faith possessed land and received the fruits. In 1927, he was summoned to court.
But in the meantime he collected fruits. Should he return the value of said fruits?
“He should return only the value of the fruits he had collected after 1927, but not prior to said
date, since before said date, he was a possessor in good faith.

Time when natural and Industrial fruits are considered received

If, at the time llegal interruption, the crops are still growing, the rule on pending crops should
apply
If at the time of legal interruption, the crops have already been gathered, but are sold only
after such interruption, the sale is immaterial, for the law requires only a gathering or severance.

Civil Fruits Are deemed to accrue

If civil fruits, like rents accrued daily, the actual receipt will be immaterial. So even if received
only on the 30th day of the month, and a legal interruption happened on the 21st day of the month, all
the fruits accrued before the 21st must be given to the possessor in good faith.
Art. 545. If at the time the good faith ceases, there should be any natural or industrial fruits, the
possessor shall have a right to a part of the expenses of cultivation, and to a part of the net harvest,
both in proportion to the time of the possession.

The charges shall be divided on the same basis by the two possessors.

The owner of the thing may, should he so desire, give the possessor in good faith the right to finish
the cultivation and gathering of the growing fruits, as an indemnity for his part of the expenses of
cultivation and the net proceeds; the possessor in good faith who for any reason whatever should
refuse to accept this concession, shall lose the right to be indemnified in any other manner. (452a)

Rights re Pending fruits

“A possessed in gf a parcel of land. At the time he received judicial summons to answer complaint filed
by B, crops is still growing, had been there for two months. Harvest is made only after 4 months. How
should crop be divided?
“in proportion of 2 to 4 or 1 to 2. The net harvest shall be divided in proportion to the time of
possession.

Sharing of expenses and charges

Expenses shall also be divided pro rata.

Owner’s option
1. give the possessor in good faith to finish the cultivation and gathering of crops as an indemnity for
his part of the expenses of cultivation and net proceeds.

Art. 546. Necessary expenses shall be refunded to every possessor; but only the possessor in good
faith may retain the thing until he has been reimbursed therefor.

Useful expenses shall be refunded only to the possessor in good faith with the same right of
retention, the person who has defeated him in the possession having the option of refunding the
amount of the expenses or of paying the increase in value which the thing may have acquired by
reason thereof. (453a)

Necessary Expenses – those without which the thing would physically deteriorate or be lost; hence
those made for the preservation of the thing.
 Those incurred for cultivation, production and upkeep
 Those made for the necessary repairs of the house)

Rights of Possessor as to expenses

If in gf – refund; retain premises till paid
If in bf – only refund.

Useful expenses – those that add value to the property ot increases the object’s productivity or useful
for the satisfaction of spiritual and religious yearnings, or give rise to all kinds of fruits.
 Incurred for irrigation system
 For erection of chapel (satisfies the spiritual and religious aspirations and attainment
of man’s higher destinies
 For making of artificial fish ponds
 For the connstructions of additional rooms, kitchen, bathroom etc

Rights of Possessor as to Useful expenses

If in gf – right to reimbursement, right to retention till paid, right of removal provided that no
substantial damage or injury is caused to the principal reducing its value
If in bf – not entitled to any right, re the useful expenses.

Art. 547. If the useful improvements can be removed without damage to the principal thing, the
possessor in good faith may remove them, unless the person who recovers the possession exercises
the option under paragraph 2 of the preceding article. (n)
 “A possessed land in good faith, and he constructed a fence around it, a fence which he can
remove without destroying the land. If A wants to remove them, but the landowner wants to retain
them, who should prevail?”
“The owner of the land prevails for the removal is subordinate to the option to retain granted
the owner, but the proper indemnity must be paid.”

Damage – substantial ones that reduces the value of the property.

Art. 548. Expenses for pure luxury or mere pleasure shall not be refunded to the possessor in good
faith; but he may remove the ornaments with which he has embellished the principal thing if it
suffers no injury thereby, and if his successor in the possession does not prefer to refund the amount
expended. (454)

Pure luxury or ornamental expenses – those which add value to the thing only for certain determinate
persons in view of their particular whims. They are neither essential for preservation nor useful to
everybody in general.

Ornamental Expenses: 1. Hand paintings on the wall of the house 2. Garage made of platinum 3.
Water fountains in gardens

GF – no right of refund but can remove if no substantial injury is caused, under the option of the owner
if he allows: removal by the possessor; or retain for himself the ornament by refunding the amount
spent

“I have possessed land in good faith and introduced thereon ornamental expenses which cannot be
removed without substantial injury. The owner does not want to refund me any amount for said
ornaments. May I remove them?” “No, because in here, there would be no substantial injury.

Art. 549. The possessor in bad faith shall reimburse the fruits received and those which the legitimate
possessor could have received, and shall have a right only to the expenses mentioned in paragraph 1
of Article 546 and in Article 443. The expenses incurred in improvements for pure luxury or mere
pleasure shall not be refunded to the possessor in bad faith, but he may remove the objects for which
such expenses have been incurred, provided that the thing suffers no injury thereby, and that the
lawful possessor does not prefer to retain them by paying the value they may have at the time he
enters into possession. (445a)

BF – same with gf, the owner may also retain for himself the ornament by refunding the value it has at
the time owner enters into possession. Even if the value of the ornament at the time change of
possession is higher, than the amount spent, the possessor in bad faith shall not be paid the same,
because the law intended to penalized him. The refund should not exceed the amount spent,
otherwise he is placed in better position than the possessor in good faith.

Right of the possessor regarding fruits

GF – gathered or severed or harvested fruits are his own, while pending or ungathered fruits shall have
a pro rating between possessor in gf and owner of expenses, net harvest and charges.

BF – gathered fruits must return value of fruits already received as well as value of fruits which the
owner could have received with due care or diligence, minus the necessary expenses for cultivation,
gathering and harvesting to prevent the owner from be ing unjustly enriched, while on pending or
ungathered fruits – no rights at all, not even to expenses for cultivation because by accession all should
belong to the owner, ithout indemnity.

Art. 550. The costs of litigation over the property shall be borne by every possessor. (n)

“every possessor” – one in gf or bf, in the concept of owner or holder, in one’s own name or of
another, and not the owner or the person adjudged by the court to be lawfully entitled to possess.

Art. 551. Improvements caused by nature or time shall always insure to the benefit of the person who
has succeeded in recovering possession. (456)

Improvements caused by Nature or Time

Neither p gf nor bf is entitled to : improvememnt ccaused by natire (alluvium); improvements ccaused
by time (improved flavored wine). For the reason that this accrue to the owner or legitimate
possessor, so no reimbursement occurs.

Art. 552. A possessor in good faith shall not be liable for the deterioration or loss of the thing
possessed, except in cases in which it is proved that he has acted with fraudulent intent or
negligence, after the judicial summons.

A possessor in bad faith shall be liable for deterioration or loss in every case, even if caused by a
fortuitous event. (457a)

GF – Before receipt of judicial summons – not liable

After judicial summons – loss or detoriation thru fortuitous event – not liable;
Thru fraudulent intent or negligence liable
BF – whether before or after judicial summons, and whether due to fortuitous event or not, such
possessor is liable.
“ P GF burned a house, later he received judicial summons to answer a complaint filed by lawful owner.
Is he liable? No, he need not reimbursement of anything.
“ P BF occupied a house. Before judicial summons, the house was destroyed by frtuitos event, is he
liable? Yes, for he is in BF.

Art. 553. One who recovers possession shall not be obliged to pay for improvements which have
ceased to exist at the time he takes possession of the thing. (458)

Improvements which ceased to exist. (fish pond)

Art. 554. A present possessor who shows his possession at some previous time, is presumed to have
held possession also during the intermediate period, in the absence of proof to the contrary. (459)

If in 1941, A possessed the land which he now possesses, it is disputably presumed that he has been in
continuous possession from 1941 up to now.

Art. 555. A possessor may lose his possession:

(1) By the abandonment of the thing;

(2) By an assignment made to another either by onerous or gratuitous title;

(3) By the destruction or total loss of the thing, or because it goes out of commerce;

(4) By the possession of another, subject to the provisions of Article 537, if the new possession has
lasted longer than one year. But the real right of possession is not lost till after the lapse of ten
years. (460a)

Ways of losing Possession:

1. Abandonment – voluntary renunciation of a thing. With the requisites of the ff: 1. Abandoner must
have been a possessor in concept of owner. 2. Abandoner must have the capacity to renounce or to
alienate, 3. There must be physical relinquishment of the thing or object. 4. There must be no more
expectation to recover, and no more intent to return or get back.

2. Assignment – complete transmission of ownership rights to another person, onerously (when thing
is sold and delievered) or gratuitously (donation)

3. Desteuction, Total loss, withdrawal from commerce – A thing is lost when it perishes, or goes out of
commerce, or disappears in such a way that its existence is unknown or cannot be recoevered.

Art. 556. The possession of movables is not deemed lost so long as they remain under the control of
the possessor, even though for the time being he may not know their whereabouts. (461)

If possessor has no idea at all about the whereabouts of movable, possession is lost, but ot when he
more or less knows its general location though he may not be precise or definite location