PROPERTY LAW l Atty.

Bathan-Lasco l Tanya de la Cruz Ibanez JD2 407

CHAPTER 2: RIGHT OF ACCESSION ACCESSION DISCRETA

SEC 1. Right of accession with respect to what is 441. To the owner belongs the natural fruits, the industrial fruits and
produced by property the civil fruits.

GENERAL PROVISIONS GENERAL RULE

All fruits belong to the owner of a thing.
440. The ownership of property gives the right by accession to Take note: Art 441 refers to accession discreta – right of accession
everything which is produced thereby, or which is incorporated or with respect to what is produced by the property.
attached thereto, either naturally or artificially.
EXCEPTIONS
ACCESSION A person, other than the owner of a property, owns the fruits thereof.
The right of the owner of a thing to become the owner of everything
which is produced thereby or which is incorporated or attached thereto, 1. Possession in good faith by another – possessor in good faith
either naturally or artificially. is entitled to the fruits received before the possession is legally
interrupted.
Take Note: Does not apply to property of public dominion.
2. Usufruct – usurfructuary is entitled to all the fruits of the property.
DISTINGUISHED FROM ACCESSORY
3. Lease of rural lands – lessee is entitled to the fruits of the land,
Accession with the owner getting the civil fruits in the form of rents.
Fruits of, additions to or improvements upon the principal thing.
 Accession industrial – building, planting, sowing 4. Pledge – pledgee is entitled to receive the fruits, income,
 Accession natural – alluvion, avulsion, change of course of rivers, dividends or interests which the pledge earns, but with obligation
formation of islands to compensate or set-off what he receives with those which are
owing him.
Take note: Accessions are not necessary to the principal thing.
5. Antichresis – creditor acquires the right to receive the fruits of an
Accessory immovable of his debtor, but with the obligation to apply them first
Things joined to, or included with the principal thing for the latter’s to the interest and then to the principal amount of the credit.
embellishment, better use or completion. (e.g. key of a house, frame of
a picture, bow of a violin)
DIFFERENT KINDS OF FRUITS
Take note: Accessory and the principal thing must go together.
442. Defines natural, industrial and civil fruits.
ACCESSION NOT A MODE OF ACQUIRING OWNERSHIP
It is merely a consequence or incidence of ownership. Accession NATURAL FRUITS
presupposes a pre-existing right of ownership. (Unlike other modes The spontaneous products of the soil, and the young and other products
where there is no previously existing ownership) of animals.
1. Spontaneous products of the soil (not through human
Take note: Since the law itself gives the right, accession may in a sense cultivation or labor)
be considered as a mode of acquiring property under the law. 2. Young and other products of animals (i.e. chicks, eggs, wool)

KINDS OF ACCESSION Take note: Standing trees, being an integral part of the land are
generally not fruits. They are immovables.
Accession discreta (to the fruits)
The extension of the right of ownership of a person to the products of Partus sequitur ventrem – the owner of female animals also owns the
a thing. young of such animals, although this right is lost when the owner mixes
his cattle with those of another. (ownership continues while the young
Basis: Principle of justice – it is just that the owner of a thing should is still in the womb of the mother)
also own its fruits.
1. Natural fruits INDUSTRIAL FRUITS
2. Industrial fruits Those produced by lands of any kind through cultivation or labor.
3. Civil fruits Examples:
1. Lanzones and bananas
Accession continua (attachment or incorporation) 2. Palay and corn
The extension of the right of ownership of a person to that which is 3. Grass, when cultivated as food for horses
incorporated or attached to a thing. 4. All kinds of cultivated vegetables

Basis: Convenience and necessity – it is more practical that the owner Take note: Trees are strictly not fruits for they are immovables as long
of the principal should also own the accessory instead of establishing as they are still attached to the land. However, trees may be fruits when
co-ownership. they are cultivated or exploited to carry on an industry.

Take note: Under the Civil Code, this kind of accession may take place. CIVIL FRUITS
1. Rents of buildings
A. With respect to real property 2. Prices of leases (rentals) of lands and other property
1. Accession industrial 3. Amount of perpetual or life annuities
2. Accession natural
Some decided cases and doctrines
B. With respect to personal property
1. Conjunction or adjunction (i.e. engraftment, attachment,  A tenant who continues occupying a land after the expiration of
weaving, painting, writing) the lease contract despite the demand to vacate – usurper or
2. Commixtion or confusion possessor in bad faith
3. Specification
 May be sued for the return of the land, natural fruits and
civil fruits (rents for the building) and the price of the lease
of the land

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 When a real estate is sold under an execution.  Even where expenses exceed the value of the fruits – owner
must pay the expenses just the same
 Within the 1 year redemption period:
1. Judgment debtor in possession is entitled to remain in  He who is entitled to the benefits must assume the risks and
possession losses.
2. Entitled to collect the rents and profits The owner may free himself of the expenses by permitting the
possessor to complete the harvesting and gathering of the fruits for
 After the lapse of the 1 year redemption period: himself.
1. Ownership of the land is consolidated in favor of the
WHEN NATURAL & INDUSTRIAL FRUITS DEEMED TO EXIST
purchaser
2. Owner is now entitled to collect the fruits and rents
3. Owner is obligated to pay the judgment debtor the 444. Only such as are manifest or born are considered as natural or
expenses of cultivation, harvesting and preservation industrial fruits. With respect to animals, it is sufficient that they are in
the womb of the mother, although unborn.
 When a contract of sale is rescinded
WHEN NATURAL AND INDUSTRIAL FRUITS DEEMED TO EXIST
Rents falling due from the time of the perfection of the sale
to the buyer who never took actual control and possession of 1. Plants which produce only one crop and then perish
the property until its rescission – belongs to the owner of the (Examples: rice, corn, sugar)
property during the said period  From the time the seedlings appear from the ground

As a consequence of the rescission of the sale, it is as if the 2. Plants and trees which live for years and give periodic fruits
buyer never bought and became the lessor of the subject (Examples: mangoes, coconuts)
property.  Fruits are deemed existing when they actually appear on
the plants and trees
 A dividend, whether in cash or stock, should go to the
usurfructuary rather than the owner of the shares of stock – 3. Animals
only out of the profits of a corporation and not out of its  Beginning of the maximum ordinary period of gestation
capital.
4. Fowls (chicks)
 Bonus paid by the mortgage-debtor to another who  Beginning of incubation
mortgaged his land to secure the debtor’s debt to a bank –
not a civil fruit of the mortgaged property. 5. Young of animals
 If existing in the womb of the mother, though unborn.
Not income delivered but a compensation granted for the risk
assumed by the owner of the property.
SEC 2. Right of accession with respect
\ OBLIGATIONS OF RECIPIENTS OF FRUITS TO REIMBURSE to immovable property

443. He who receives the fruits has the obligation to pay the expenses KINDS OF ACCESSION (REAL PROPERTY)
made by a third person in their production, gathering and preservation. 1. Accession industrial (planting, sowing, building)
2. Accession natural (alluvium, avulsion, change in the course of
rivers, formation of islands)
APPLICATION
Owner is obliged to reimburse the previous possessor for the expenses
incurred by the latter for their production, gathering and preservation. ACCESSION CONTINUA

This article applies where: 445. Whatever is built, planted or sown on the land of another and
the improvements or repairs made thereon, belong to the owner of the
1. The owner of the property recovers the same from a land, subject to the provisions of the following articles.
possessor and the possessor has not yet received the fruits
although they may have already been gathered or harvested ACCESSION CONTINUA
The extension of the right of ownership of a person to that which is
2. Possessor has already received the fruits but is ordered to incorporated or attached to a thing.
return the same to the owner (possessor in bad faith has the
right to deduct the expenses of planting and harvesting) 1. Accession industrial – building, planting, sowing
2. Accession natural – alluvion, avulsion, change of course of
REASON FOR THE RULE rivers, formation of islands
For without such expenses, there would have been no fruits. Principle
of unjust enrichment applies. Basic principles:
1. Accession follows the principal – owner of the principal
EFFECT OF BAD FAITH
acquires the ownership of the fruits. Land is usually the
This article makes no distinction because the expenses made were
necessary, without which the owner would not have received the fruits. principal.

When material: When the fruits are still pending or ungathered at the 2. Incorporation or union must be intimate – such that the
removal or separation cannot be effected without substantial
time he gave up his possession.
injury to either or both.
 Article 449 – He who builds, plants or sows in bad faith on the
land of another, loses what is built, planted or sown without 3. Effect of good faith and bad faith
 Good faith – exonerates a person from punitive liability
right to indemnity.
 Bad faith – may give rise to dire consequences; has no
rights as a general rule and may be held liable for
 But possessor in bad faith is entitled to reimbursement for the
damages.
necessary expenses for the preservation of the land.

 Possessor in good faith has no right to reimbursement since

Take note: Whether in good faith or bad faith, he is entitled
to reimbursement for necessary expenses of preservation,
he is entitled to the fruits already received.
cultivation and gathering.
WHERE EXPENSES EXCEEDS FRUITS
4. Effect where both parties are in bad faith – bad faith of
Only expenses incurred by the possessor for the production, gathering
and preservation of the fruits are reimburseable. (not improvement) one neutralizes the bad faith of the other. They shall be
considered as being in good faith.
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5. Principle of unjust enrichment – right of the owner of land RIGHTS AND LIABILITIES
to acquire what is built, planted or sown with the materials of
Both in good faith
another is subject to the obligation to pay their value.
 LO to pay value of the materials
 OM has the right to remove materials, provided no injury is
ACCESSION INDUSTRIAL caused

Both in bad faith

KINDS OF ACCESSION INDUSTRIAL
Bad faith of one neutralizes that of the other. Both shall be treated to
1. Building
have been acted in good faith
2. Planting
3. Sowing
LO in bad faith, OM in good faith
 LO to pay value of the materials plus damages
RULES ON ACCESSION INDUSTRIAL
 OM has the right to remove materials with or without injury
GENERAL RULE ON ACCESSION INDUSTRIAL
LO in good faith, OM in bad faith
 LO to pay value of the materials
General rule: Accessory follows the principal. Land is the principal and
 OM has no right to remove materials and is liable for
what is built is the accessory.
consequential damages
Exception: Art 120 of the Family Code – ownership of improvements
Take note: This article is applicable to a leasehold in real estate. The
made on the separate property of the spouses at the expense of the
fact that the lessee uses materials belonging to another in constructing
partnership shall pertain to the conjugal partnership.
a building upon the land does not make owner of the materials the
owner of any part of the building.
Building – generic term for all architectural work with roof built for the
purpose of being used as man’s dwelling, or for offices, clubs.
BUILDER, PLANTER, OR SOWER IN GOOD FAITH
Repairs – putting of something back into the condition in which it was
originally. 448. The owner of the land on which anything has been built, sown or
planted in good faith, shall have the right to appropriate as his own
Take note: Owner of the land must be known. Otherwise, no decision the works, sowing or planting, after payment of the indemnity provided
can be rendered on the ownership of the things planted, built, etc. for in Articles 546 and 548, or to oblige the one who built or planted
to pay the price of the land, and the one who sowed, the proper rent.
BUILDER & OWNER OF LAND AND MATERIALS, SAME PERSON
Landowner wold necessarily own the building because he paid for the However, the builder or planter cannot be obliged to buy the land if its
materials and labor used in constructing it. Hence, recourse to the rules value is considerably more than that of the building or trees. In such
of accession is totally unnecessary. case, he shall pay the reasonable rent, if the owner of the land does
not choose to appropriate the building or trees after proper indemnity.
PRESUMPTIONS AS TO IMPROVEMENTS The parties shall agree upon the terms of the lease and in case of
disagreement, the court shall fix the terms thereof.
446. All works, sowing, and planting are presumed made by the owner
and at his expense, unless the contrary is proved. BUILDER, PLANTER OR SOWER IN GOOD FAITH
This Article is applicable when a person builds in good faith on the land
TWO DISPUTABLE PRESUMPTIONS of another.

1. The works, sowing & planting were made by the owner Good faith – honest belief that the land he is building, sowing or planting
– based on positive law; a land naturally has an owner and the on, is his or that by some title, he has a right to build, etc. thereon, and
law presumes that he made the works, sowing or planting. his ignorance of any defect or flaw in his title.

2. They were made at the owner’s expense – no one will build, Ownership of land claimed by two parties
sow or plant on another’s land at his expense but for the benefit This article refers to a land whose ownership is claimed by two or more
of the owner. Therefore, it is presumed that what is built, etc. is parties – one of whom has built some works or sown or planted
done at the owner’s expense, even if done by a third person. something.
(third person may only be acting as the agent)
Applies only to a possessor in good faith
Take note: He who alleges the contrary of the presumptions has the That is one who builds, etc. on land in the belief that he is the owner
burden of proof. thereof. It does not apply where one’s interest in the land is merely that
of a holder (i.e. mere tenant or lessee) because they recognize that the
WHERE LAND AND MATERIALS BELONG TO DIFF OWNERS lessor is the owner of the property.
Take note: Good faith is presumed. Hence, he who alleges bad faith on
447. The owner of the land who makes thereon, personally or through the part of the builder, etc. has the burden of proof.
another, plantings, constructions or works with the materials of
another, shall pay their value. If he acted in bad faith, he shall be Presence of negligence
obliged to the reparation of damages. Good faith of the builder, etc. does not necessarily preclude negligence
which gives rise to damages under Article 2176.
The owner of the materials shall have the right to remove them only
in case he can do so without injury to the work constructed, or without Application to both public and private lands
the plantings, constructions or works being destroyed. However, if the There is no distinction between private land and land of public dominion.
landowner acted in bad faith, the owner of the materials may remove
them in any event, with a right to be indemnified for damages. CASES:
1. Rosales v. Castelltort
GOOD FAITH PRESUMED 2. JM Tuazon v. Vda de Lumanlan
3. Quevada v. CA
This article presupposes that the owner of the materials is in good faith. 4. Macasaet v. Macasaet
He is deemed as a possessor in good faith who is not aware that there 5. Mores v. Yu-Go
exists in his title a flaw which invalidates it. 6. Del Campo v. Abesia
7. Boyer-Roxas v. CA
APPLICATION 8. Sarmiento v. Agana
This provision applies when the owner of the property builds, plants or
sows on his own land using the materials of another.

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OPTIONS GIVEN TO LANDOWNER When entitled

The landowner is entitled to such removal only when, after having
Option alternative or preclusive chosen to sell his land, the other party fails to pay for the same.
The landowner can exercise a remedy of his own liking. He is given an
option, either: Must be of permanent character
The construction must be of permanent character, attached to the soil
1. To appropriate improvement upon payment of the required with an idea of perpetuity. If it is of a transitory character or is
indemnity (pay for the value of improvement. transferable, there is no accession, and the builder must remove the
construction. The proper remedy of the landowner is an action to eject
2. To oblige the builder or planter to pay the price of the land the builder from the land.
and the sower, to pay the proper rent. (sell the portion of the
land where the improvement stands) Cases:
1. Rosales v. Castelltort
Provided, the value of the land should not be considerably 2. Depra v. Dumlao
higher than the value of the improvement. Otherwise, forced
lease is created. RIGHT OF BPS TO RETAIN IMPROVEMENT BEFORE PAYMENT

Take note: Where a co-ownership is terminated by a partition and it Builder’s right to retain
appears that the improvement constructed in good faith by an erstwhile The BPS in good faith may retain both the land and the improvements
co-owner has encroached upon a portion pertaining to another co- before indemnity has been fully paid by the LO who has elected to buy
owner, the provisions of Art 448 applies – to determine the respective the improvements.
rights of the parties.
Case: Nuguid v. CA
It is the co-owner whose portion is encroached upon who has the option
to sell that portion or buy the improvement. Purpose of the right: To protect the builder in good faith and to
guarantee full and prompt reimbursement.
Communication of choice
The choice of the owner shall produce effect from the time it has been Take note: This right applies only on private land, and not to property
communicated to the other party. Once made, it cannot be changed of public dominion.
without consent of the other party.
Prohibition on offsetting necessary and useful expenses
Good faith of BPS, immaterial The LO is prohibited from offsetting the necessary and useful expenses
It is immaterial that the builder acted in good faith because the option with the fruits received by the builder-possessor in good faith.
given by law to retain the premises, pay for the improvements or sell
the premises to the builder – belongs to the owner of the property. Reason: Because the right to the expenses and the fruits both pertain
to the possessor, and one cannot be used to reduce the other.
REASON FOR OPTION
Art 446 – whatever is built, planted or sown on the land of another, the According to Atty. Bathan – The rule now is that a builder in good faith
improvements or repairs made thereon, belong to the owner of the land. has the right to retain the premises until full reimbursement. However,
whatever fruits he may receive should be deducted from the value of
Forced co-ownership the improvement.
Conflict arises where the BPS has acted in good faith. It becomes
necessary to protect the owner of the improvements without causing Where improvements are destroyed by a fortuitous event
injustice to the owner of the land. If the improvements have been destroyed by a fortuitous event, without
the fault of the LO – the right of the builder to retain the premises is
Solution – the owner of the land is given the option to acquire the extinguished.
improvements after payment of the proper indemnity or to oblige the
builder or planter to pay for the land and the sower to pay the proper Where BPS is in bad faith
rent. If the BPS is in bad faith, he loses what he has built, planted or sown
without right to any indemnity.
Case: Ochoa v. Apeta
LIABILITY OF BPS TO PAY RENTS
Reason why option is given to the owner If the landowner does not choose to appropriate the improvements and
Because his right is older and because by principle of accession, he is cannot oblige the builder to pay the price of the land, the latter shall pay
entitled to the ownership of the accessory thing. the reasonable rent. If they cannot agree on the terms of the lease, the
court will fix the same.
Benefit to the BPS
He can compel the landowner to make a choice between the two Take note: The builder cannot be obliged to pay for the land if its value
options, either to pay for the improvement or to sell the land. is more than that of the improvements built.

BPS’S RIGHT TO LIMITED REIMBURSEMENT LIABILITY OF BPS TO ACCOUNT FOR FRUITS RECEIVED

Builder in good faith – his only right is the right to reimbursement for  If the improvements (e.g. building) are leased to another by the
the improvement. He cannot compel the LO to sell it to him. builder –

Sower in good faith – LO’s right is to merely to demand the proper rent Cannot be considered a possessor in good faith if the LO chooses
from the sower. (Reason: sowing is temporary and after harvest, the to appropriate the improvements. Hence, whatever fruits (rents)
conflict between the rights of the LO and the sower no longer exists) he receives during the period of retention must be deducted from
the value of the indemnity.
LANDOWNER’S RIGHT TO REMOVE/DEMOLISH IMPROVEMENT
 If the building is occupied by the builder himself who acted in
LO cannot refuse to exercise his right of choice good faith –
Landowner has to choose between the two options available to him. He
cannot refuse to exercise his right of choice and compel the builder to LO has no right to collect rents for the occupation of the land
remove or demolish the improvement. while the builder retains the building.
Take note: An order by a court compelling a builder in good faith to
RIGHT OF LO TO REQUIRE PAYMENT OF VALUE OF LAND
remove his building from a land belonging to another who chooses
neither to pay for such nor sell the land is null and void.
General rule and exception:
General rule: The landowner may oblige the builder or planter to buy
the land.
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Exception: When the value of the land is considerably more than that of 2. If the crop is still standing or growing at the time the
the improvements. (Purpose: To prevent injustice on the part of the landowner recovers it –
builder or planter)
The planter in bad faith loses them without the right to any
What happens – A forced lease is created between the parties if the LO indemnity.
does not choose to appropriate the improvement after proper indemnity.
The builder or planter shall pay reasonable rent. Instances of bad faith
1. One bought a house from another with full knowledge of the
Prevailing market value of land at the time of payment fact that the land belonged to the landlord of the seller
If landowner chooses to sell the subject land to the builder who agrees 2. Simply took possession of a land which its former possessors
to buy the same, the price must be fixed at the prevailing market value were compelled to abandon by reason of war
at the time of payment and not at the time of taking (which is the time 3. Bought a land with notice that there was defect in the title of
the improvements were built on the land) the vender

REMEDIES OF LANDOWNER WHERE BPS FAILS TO PAY Cases:

Suppose the landowner rightfully exercised his option to require the 1. Rodriguez v. Francisco – Had presumptive knowledge of the
builder or planter to pay the value of the land, but the builder or planter owner’s Torrens title
refuses or fails to pay, what remedies are available to the parties? 2. Mindanao Academy Inc. v. Yap – Bought a land and then
constructed a new building after the filing of action against him
1. Assume the relation of lessor-lessee. for annulment of the sale
2. Sell the property at public auction and apply the proceeds of the 3. Lumungo v. Usman – Bought a land with the knowledge that the
sale to the value of the land, and the excess to the property was under litigation and then planted about coconut
improvements. trees thereon.
3. Should no other arrangement be agreed upon, LO’s remedy is 4. Santos v. Mojica – Built a house on a lot after his predecessor-in-
an ordinary action for the recovery of the price of the land or to interest, his parents, had been summoned in a civil case regarding
have the improvements removed at the builder’s expense. said lot, and even reconstructed the house into a bigger one while
the case was pending.
EFFECT OF ALIENATION BY LANDOWNER W/ IMPROVEMENTS

Where purchaser paid only price of land RIGHTS OF LANDOWNER WHERE BPS IS IN BAD FAITH
A purchaser must pay both the value of the land and the improvements
built thereon. If he does not do so, he places himself in the position of 450. The owner of the land on which anything has been built, planted
an owner of land who has acted in bad faith. or sown in bad faith may demand the demolition of the work, or that
the planting or sowing be removed in order to replace things in their
Where purchaser paid also value of improvements former condition at the expense of the builder, planter or sower, or he
If the new owner has paid for the improvements, the action may still be
may compel the builder or planter to pay the price of the land, and the
brought against him without prejudice to his right to recover from the
sower the proper rent.
former owner.

Option given to purchaser 451. He who builds, plants or sows in bad faith on the land of
If the former owner has not exercised his option, the new owner of the another, loses what is built, planted or sown without right to indemnity.
land by purchase where a house was constructed by a builder in good
faith is given the choice to either: RIGHTS OF LANDOWNER WHERE BPS IS IN BAD FAITH
1. Pay for the value of the house, or These rights are alternative. Landowner can choose only one.
2. Require the builder to pay for the value of the land
1. To appropriate the improvement without payment of indemnity,
Where land registered under the Torrens system except for necessary expenses for preservation
If the COT shows the holder to be the owner of the land and its
improvements (in short, it was not stated that another person owns the 2. To ask the removal or demolition of the improvement at the
improvements), any purchaser for value, without notice, who buys the expense of the BPS, plus damages
land on reliance on such title will take the property free from the
builder’s lien. 3. To compel the builder or planter to pay the value of the land
regardless of whether the its value is considerably higher than
that of the improvements, and the sower to pay the proper rent,
BUILDER, PLANTER, OR SOWER IN BAD FAITH plus damages

449. He who builds, plants or sows in bad faith on the land of LIABILITIES OF BPS IN BAD FAITH
another, loses what is built, planted or sown without right to indemnity. 1. He loses what is built, planted or sown without right to
indemnity except for necessary expenses
BPS IN BAD FAITH 2. May be required to remove or demolish the improvement at
his expense
Right to what is built, planted or sown 3. May be compelled to pay the price of the land
As a just punishment for bad faith, the BPS forfeits what he has built, 4. Liable for damages
planted or sown without any right to be paid indemnity therefor. (Also
apply in pari delicto principle) RIGHT TO REIMBURSEMENT OF BPS IN BAD FAITH

Right to necessary expenses

452. The builder, planter or sower in bad faith is entitled to
However, as a matter of justice, he is entitled to reimbursement for
necessary expenses of preservation of the land incurred by him but reimbursement for the necessary expenses of preservation of the land.
without right of retention.
RIGHT TO REIMBURSEMENT FOR NECESSARY EXPENSES
Right to expenses of production Necessary expenses shall be reimbursed to the BPS, regardless of good
A distinction should be made with regard to the expenses incurred in or bad faith but only the possessor in good faith is entitled to right of
the production of the fruits. retention until he is reimbursed.

1. If the products have already been gathered by the builder, Reason: Because the landowner would have paid such expenses anyway
and they are ordered delivered to the landowner – even if the improvements had not been made.

The builder should be reimbursed for the expenses incurred Examples of necessary expenses of preservation:
for the production, gathering and preservation of the fruits. 1. Defense work to prevent erosion of land bordering a river

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2. Real property taxes – since non-payment may result in the 2. Have the improvement demolished at the expense
public sale of the land for tax delinquency of BPS, plus damages
3. Compel BPS to pay value of land regardless of
whether it is considerably higher or not
LANDOWNER AND BPS BOTH IN BAD FAITH
 OM entitled to reimbursement from BPS (Since both of them
453. If there was bad faith on the part of both the landowner and BPS, acted in bad faith = good faith)
the rights of one and the other shall be the same as though both had  LO not subsidiarily liable even if he wants to appropriate the
acted in good faith. improvement because both are in bad faith

BOTH LANDOWNER AND BPS IN BAD FAITH Subsidiary liability of LO

Bad faith of one extinguishes and neutralizes that of the other. Hence, Landowner shall be subsidiarily liable for the value of the materials if the
it shall be deemed as both acted in good faith. following requisites are present:

Bad faith of LO – Whenever the act was done with his knowledge and 1. LO appropriates the accession to himself
without opposition on his part 2. OM should be in good faith
3. BPS has not property with which to pay
Bad faith of BPS – If he build knowing that the land does not belong
to him and that he has no right or authority to do so. Right of BPS who pays OM
Presupposes a situation where the LO appropriates the improvement to
himself and it was the BPS in good faith who paid OM the value of the
LANDOWNER (BF) – BPS (GF) materials
C. BPS is entitled to reimbursement from LO (principle of unjust
enrichment)
454. When the landowner acted in bad faith and the builder, planter
or sower proceeded in good faith, the provisions of Art 447 applies.
GOOD FAITH MAY CO-EXIST WITH NEGLIGENCE
LO IN BAD FAITH BUT BPS IN GOOD FAITH
It is as if the owner built on his land in bad faith using the materials of
456. In the cases regulated in the preceding articles, good faith does
another. Art. 447 applies – landowner should pay the value of the
not necessarily exclude negligence, which gives right to damages
materials plus damages.
under Article 2176.

LO, BPS, OM – DIFFERENT PERSONS GOOD FAITH MAY CO-EXIST WITH NEGLIGENCE
In other words, just because you acted in good faith does not mean you
454. If the materials, plants or seeds belong to a third person who has were not negligent in your acts. Good faith does not preclude
not acted in bad faith, the owner of the land shall answer subsidiarily negligence.
for their value and only in the event that the one who made use of
them has no property with which the pay. Take note: If guilty of negligence, regardless of good faith – liable for
damage done or quasi-delict under Art 2176.
The provision shall not apply if the owner makes use of the right
granted by Article 450. If the owner of the materials, plants or seeds ACCESSION NATURAL
has been paid by the builder, planter or sower, the latter may demand
from the landowner the value of the materials and labor.
ACCESSION NATURAL
APPLICATION
A. Applies when the LO, BPS and OM are different persons
B. Solely deals with the right of the OM regardless of the good KINDS OF ACCESSION NATURAL
or bad faith of the landowner and BPS. 1. Alluvion
2. Avulsion
RULES 3. Change of course of rivers
4. Formation of islands
OM in good faith
 Entitled to reimbursement for the value of materials ALLUVION
principally from the builder.
457. To the owners of lands adjoining the banks of rivers belong the
Take note: If builder is insolvent, landowner is subsidiarily liable accretion which they gradually receive from the effects of the current
should he want to appropriate the improvement to himself. If not, of the waters.
he is not subsidiarily liable.
ALLUVION DEFINED
Only OM in bad faith The accretion which the banks of rivers gradually receive from the
 Forfeits his rights to his materials without right of indemnity effects of the current of the waters – belong to the owners of lands
 Liable for any consequential damages adjoining the said banks.

Only BPS in bad faith Distinguished from accretion

 BPS principally liable to OM for value of materials, plus 1. Accretion - Process by which a riparian land gradually and
damages imperceptively receives addition made by the water to which
 If insolvent, LO is subsidiarily liable but not for damages the land is contiguous
(applies only if LO wants to appropriate the accession) 2. Alluvion – soil deposits or the soil itself brought about by
accretion
Only LO in bad faith
A. Pay value of the materials with damages REQUISITES
B. BPS or OM is entitled remove improvements whether or not If these requisites are present, the owner of the land adjoining the river
injury would be caused, plus damages banks automatically becomes the owner of the accretion made from the
effects of the river currents. But of course, owner still has to register the
Only LO in good faith same under the Torrens system.
 LO can exercise his alternative rights under Art 449-451 with
a right to demand damages from both OM and BPS 1. Soil deposit must be gradual and imperceptible
1. Appropriate improvement without payment of 2. Accretion results from the action of the river currents
indemnity 3. Land where accretion takes place must be adjacent to the
riverbank.

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PROPERTY LAW l Atty. Bathan-Lasco l Tanya de la Cruz Ibanez JD2 407

1st Soil deposit must be gradual and imperceptible ACCRETIONS AFFECTING REGISTERED LANDS
If two estates is bounded by a river – neither of them owns the bed.
The gradual increase of one side is for the benefit of that owning the In case of diminution of area
land of said side. Registration under the Torrens system does not protect the riparian
owner against the diminution of the area of his land through gradual
Example of this first requisite: The Cagayan River moved year by year changes in the course of the river.
for 49 years, causing soil deposits in the land of A thereby making his
land bigger in area. In case of increase of area
An alluvion although automatically owned by the riparian owner, does
Take note: It must be a gradual and imperceptible accumulation of soil not automatically become registered land just because the land
deposits and not a sudden and forceful action like that of flooding. receiving such accretion is covered by a Torrens title. Hence, riparian
owner has to register the same.
2nd Accretion results from the action of the river currents
Current – participation of the body of water in the ebb and flow of waters Effect of failure to register – the accretion may be subject to acquisitive
due to high and low tide. It must be the exclusive work of nature and prescription by a third person
not made artificially by a riparian owner.
ESTATES ADJOINING PONDS OR LAGOONS
However, the alluvium produced gradually due to defensive works
constructed by a riparian owner to protect his property against the
damaging actions of the water and not designed expressly to bring 458. The owner of estates adjoining ponds or lagoons do not acquire
about accretion – should belong to him. the land left dry by the natural decease of the waters, or lose that
inundated by them in extraordinary floods.
3rd Land where accretion takes place must be adjacent to the
riverbank APPLICATION
Not applicable when: Applies when the estate adjoins a pond or lagoon. Does not apply
1. Accession on lands is situated on the seashore when the estate adjoins creeks, rivers, streams or lakes.
2. Accretion lies on a riverbank not adjacent to the land
Pond – body of stagnant water without an outlet, larger than a puddle
Take note: Lakes are covered by the provision. Hence, accretions on the and smaller than a lake.
bank of a lake belong to the owners of the land to which they are added.
(Laguna de bay is a lake) Lagoon – a small lake, ordinarily of fresh water, not very deep, fed by
floods and its hollow bed is bounded by elevations of land (separated
Principles: from a larger body of water by barrier islands or reefs)
1. Presupposes that the river continues its existence
2. Does not require an express act of appropriation from the Lake – body of water formed in depressions of the earth, ordinarily
government for the riparian owner to acquire ownership over fresh water, coming from rivers, brooks or springs and connected with
the alluvion. the sea by them.
However, riparian owner cannot by themselves reclaim land
from public waters without proper permission from the AVULSION
government. Even if authorized, reclaimed land does not
automatically belong to him. 459. Whenever the current of a river, creek or torrent segregates from
an estate on its bank a known portion of land and transfers it to another
ELEMENTS OF RIVER AND THEIR OWNERSHIP estate, the owner of the land to which the segregated portion belonged
retains the ownership of it, provided that he removes the same within
Elements:
two (2) years.
River is a compound concept consisting of three elements:
1. Running waters
AVULSION OR FORCE OF RIVER
2. River bed
Accretion which takes place when the current of a river segregates from
3. River banks
an estate on its bank a known portion and transfers it to another estate
– the old owner retains ownership, provided he removes the same within
Take note: Since it is but one compound concept, it should have only
2 years.
one nature – either totally public or completely private.
Take note: Caused by a violent and sudden action of a torrent and not
River bed
by the slow and constant action of the waters.
The ground covered by its waters during the highest floods. Classified
as property of the public domain hence not open to registration under
Distinguished from alluvion
the Torrens system.

River banks Alluvion Avulsion

Lateral strips or zones of its bed which are washed by the stream only Soil deposit is gradual Sudden or abrupt
during such high floods as do not cause inundations – part of the river Soil deposit belongs to the owner Owner of the property from
bed. (The land alongside a river) of the property where the same which a part was detached
was deposited retains ownership
REASONS FOR ALLUVION Soil cannot be identified Detached portion can be
The following are the reasons for granting a riparian owner the right to identified
any land or alluvion deposited by a river:
REQUISITES OF AVULSION
1. To compensate him for the danger of loss that he suffers 1. Segregation must be caused by the current of a river, creek
because of the location of his land (always exposed to floods or torrent
and other destructive force of the waters) 2. Segregation must be sudden or abrupt
2. To compensate him for the encumbrances and various kinds of 3. Portion of land segregated must be identifiable
easements to which his property is subject
3. To promote the interests of agriculture (he is in the best 1st Segregation caused by the current of river, creek or torrent
position to utilize and cultivate the accretion) Current – continuous movement of a body of water, often horizontal, in
a certain direction
ALLUVION CAUSED BY ARTIFICIAL WORKS
If the riparian owner caused special works like dikes expressly intended River – a natural surface stream of water of considerable volume and
by him to bring about accretion and not to protect his property from permanent seasonal flow, emptying into an ocean, lake or other body of
destructive force of the waters of the river – cannot claim ownership water.
over the accretion.

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PROPERTY LAW l Atty. Bathan-Lasco l Tanya de la Cruz Ibanez JD2 407

Creek – small inlet extending further into the land; smaller than and RIVER BEDS ABANDONED THRU NATURAL CHANGE
often tributary to a river.
Belong to the owners of lands occupied by new course
Torrent – violent stream of water as a flooded river or one suddenly The abandoned river bed is automatically owned by the owners of the
raised by a heavy rain and descending a steep incline lands occupied by the new course, in proportion to the area lost. (This
is because the new owners lost a portion of their land due to the new
Take note: When a portion of land is transferred from one estate to course of the river. In other words, their lands were invaded. Hence,
another by forces of nature other than the ones mentioned – like when they should own the old river bed, in proportion to the area of the land
land from a mountain slope rolls down to another estate by reason of they lost)
earthquake – this article can be applied by analogy.
In proportion to the area lost
2nd Segregation must be sudden or abrupt Implies that there are two or more owners whose lands are occupied by
In the absence of evidence as to whether the accretion is caused by the new bed.
alluvion or avulsion – presumption is that it was gradual and was caused
by alluvion. Take note: If only one owner lost a portion of his land, the entire old
river bed should belong to him.
3rd Portion of land segregated must be identifiable
The detached portion must be known or at least identifiable. It Ownership acquired ipso facto
contemplates mass of earth suddenly transferred to another’s estate and Rule applies by the mere fact of the occurrence of a natural change in
therefore removable by the original owner. the course of the waters.

Take note: If only soil is removed by the water and transferred over However, there must first be abandonment by the government of its
another’s land, it cannot be said to be identifiable. right over the old bed.

REMOVAL WITHIN 2 YEARS Right of owners of land adjoining the old bed
The original owner preserves his ownership of the segregated portion They are given preferential right to acquire the same by paying the value
provided he removes (not merely claims) the same within 2 years. thereof to promote the interest of agriculture because the riparian
owners of the old course can better cultivate the same.
Effect of failure to remove: Automatically transfers ownership to the
owner of the other estate. Take note: Indemnification shall not exceed the value of the area
occupied by the new bed. In case of disagreement, courts shall fix the
Reasons for clause on removal value.
1. The segregated portion is usually very small, thus useless to
the original owner REQUISITES FOR THE APPLICATION OF RULE
2. Without the qualification of 2 years, the original owner would
have a right to enter the estate at any time and this may create 1. There must be a natural change in the course of the river –
ill-feeling between them. not man-made or artificial
3. After a time, the transferred portion may become permanently 2. The change must be abrupt or sudden – if gradual, it is
attached to the other land, hence it must removed asap. alluvion and the accretion belongs to the owner of the riparian
lot
TREES UPROOTED AND CARRIED AWAY BY THE CURRENT 3. There must be a change of river course (not simply dries up
or disappears – public dominion)
460. Trees uprooted and carried away by the current of the waters
belong to the owner of the land upon which they may be cast, if the WHEN RIVER BEDS DEEMED ABANDONED
owners do not claim them within 6 months. If such owners claim them, The change in the course of a river does not ipso facto result in the
they shall pay the expenses incurred in gathering them or putting them abandonment of the old river bed. There needs to be a positive act from
the government to abandon the same.
in a safe place.
Abandonment – implies the giving up or relinquishment of something.
TREES UPROOTED AND CARRIED AWAY BY THE CURRENT
It cannot be done by an inanimate property like a river.
Application
NEW BED THROUGH PRIVATE ESTATE – PUBLIC DOMINION
Applies only to uprooted trees.

Take note: If a known portion of land with trees standing thereon is 462. Whenever a river, changing its course by natural causes, opens
carried away by the current to another land, Art 459 governs – 2 years. a new bed through a private estate, this bed shall become of public
dominion.
Liability of the claimant
Pay the expenses incurred by the owner of the land upon which the NEW BED THRU PRIVATE ESTATE BECOME PUBLIC DOMAIN
trees are cast in gathering or putting them in a safe place. If the river changes its course due to natural means and opens a new
bed, this becomes of public dominion even if it is on private property.
Period of making claim
6 months. The period is a condition precedent and not a period of Take note: The change of course must be by natural means and not
prescription. If no claim is made within 6 months, an action may be due to man-made causes.
brought within the period provided by law for prescription of movables.
RIVER DIVIDED ITSELF INTO BRANCHES
D. Art 1140 – actions to recover movables shall prescribe 8 years
from the time the possession thereof is lost. 463. Whenever a current of a river divides itself into branches, leaving
a piece of land or part thereof isolated, the owner of the land retains
RIVER BEDS ABANDONED THRU NATURAL CHANGE his ownership. He also retains it if a portion of land is separated from
the estate by the current.
461. River beds which are abandoned through the natural change
in the course of the waters ipso facto belong to the owners whose RIVER DIVIDES ITSELF INTO BRANCHES
lands are occupied by the new course, in proportion to the area lost.
However, the owners of the lands adjoining the old bed shall have the Application
right to acquire the same by paying the value thereof, which value shall Applies to the formation of an island caused by a river dividing itself into
not exceed the value of the area occupied by the new bed. branches and not through accretion.

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PROPERTY LAW l Atty. Bathan-Lasco l Tanya de la Cruz Ibanez JD2 407

The formation of an island caused by a river dividing itself into branches OWNERSHIP OF NEW OBJECT FORMED BY ADJUNCTION
results in:
1. The isolation of a piece of land or part thereof A. If union took place without bad faith, owner of the principal
acquires the accessory but with the obligation to indemnify
2. The separation of a portion of land from an estate by the the former owner of the accessory for its value in its
current uncontroverted state.

Take note: The owner preserves his ownership of the isolated or B. If union took place in bad faith, Art 470 applies.
separated property.
TESTS TO DETERMINE PRINCIPAL IN ADJUNCTION
FORMATION OF ISLANDS FORMATION OFISLAND
467. The principal thing, as between two things incorporated, is
464. Islands which may be formed on the seas within the jurisdiction deemed to be that to which the other has been united as an ornament,
of the Philippines, on lakes, and on navigable or floatable rivers belong or for its use or perfection.
to the State.
468. If It cannot be determined which of the two is the principal one,
465. Islands which through successive accumulation of alluvial the thing of the greater value shall be so considered, and as between
deposits are formed in non-navigable and non-floatable rivers, belong two things of equal value, that of the greater volume.
to the owners of the margins or banks nearest to each of them, or to
In painting and sculpture, writings, printed matter, engraving and
the owners of both margins if the island is in the middle of the river, in
lithographs, the board, metal, stone, canvas, paper or parchment shall
which case it shall be divided longitudinally in halves. If a single island
be deemed the accessory thing.
thus formed be more distant from one margin than from the other, the
owner of the nearer margin shall be the sole owner thereof.
TESTS TO DETERMINE PRINCIPAL
A. That thing to which the other has been united as an ornament
OWNERSHIP OF ISLANDS FORMED THROUGH ALLUVION or for its use or perfection
B. The one of greater value, if unequal value
Rules: C. The one of greater volume, if equal value
1. Belongs to the State as part of its patrimonial property – If D. That of greater merits taking into consideration all pertinent
formed on the seas within the jurisdiction of the Philippines, legal provisions applicable
on lakes and on navigable or floatable rivers
Take note: In paintings, etc. what is painted is of greater value or
2. Belongs to the nearest riparian owner – If formed in non- importance that the board, etc. Hence, the painting is the principal.
navigable and non-floatable rivers
WHERE ADJUNCTION INVOLVES THREE OR MORE THINGS
Concept of navigable river Art 466 should be applied. The principal should be determined and
One which forms in its ordinary condition by itself or by uniting with distinguished from the others.
other waters a continuous highway over which commerce is or may be
carried on.
469. WHEN SEPARATION OF THINGS UNITED ALLOWED
Test: Whether it is susceptible of being used as a highway of commerce,
that is for trade and travel in the usual and ordinary modes. TWO INSTANCES WHEN SEPARATION MAY BE ALLOWED:

SEC 3. Right of accession with respect 1. Separation without injury – when separation can be done
to movable property without injury, their respective owners may demand
separation.
KINDS OF ACCESSION (PERSONAL PROPERTY)
1. Conjunction or adjunction (i.e. engraftment, attachment, 2. Accessory much more precious – where the thing
weaving, painting, writing) (diamond) united for the embellishment or perfection of the
2. Commixtion or confusion other, is much more precious than the principal thing (gold
3. Specification ring), the owner of the diamond may demand its separation
even though the principal thing may suffer some injury.
ADJUNCTION
Who shall bear the expenses for separation?
The owner who caused the incorporation because he is the
466. Whenever two movable things belonging to different owners are, one considered at fault although he acted in good faith
without bad faith, united in such a way that they form a single object,
the owner of the principal thing acquires the accessory, indemnifying 3. Owner of principal acted in bad faith – owner of the
the former owner thereof for its value. accessory may separate it even if the principal be destroyed.

ADJUNCTION DEFINED
470. ADJUNCTION IN BAD FAITH
The union of two movable things belonging to different owners in such
a way that they form a single object.
RULES ADJUNCTION IS DONE IN BAD FAITH
Characteristics
1. There are two movables belonging to different owners 1. Bad faith on the part of the accessory owner
2. They are united in such a way that they form a single object A. He shall lose the thing incorporated
3. They are so inseparable that their separation would impair their B. Liable for damages
nature or result in substantial injury to either component.
2. Bad faith on the part of the principal owner
Kinds of adjunction Accessory owner is given the owner to:
1. Engraftment – when a diamond is set on a gold ring A. Require principal owner to pay the value of the
2. Soldering – when lead is united to an object made of lead accessory plus damages
i. Ferruminacion – if both the accessory and principal objects B. Have the accessory separated even if destroys the
are of the same metal principal, plus damages
ii. Plumbatura – if they are of different metals
3. Writing – when a person writes on another’s paper 3. Bad faith on the part of both = good faith
4. Painting – when a person paints on another’s canvas
5. Weaving – when thread belonging to different owners are used in
making textile

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PROPERTY LAW l Atty. Bathan-Lasco l Tanya de la Cruz Ibanez JD2 407

Worker made use of material of another in bad faith

471. FORM OF INDEMNITY
GR: Owner of the material has the option either to:
a. Appropriate the work to himself without paying the worker
FORM OF INDEMNITY b. Demand the value of the materials, plus damages
The material employed may be the principal or the accessory, the owner
of such material has the right to an indemnity because he acted in good XPN: First option not available if the value of the work is considerably
faith, while the other who made the incorporation without his consent, more than that of the material. Hence, labor or work is considered as
acted in bad faith. the principal.

Innocent owner has the option to either: Worker made use of material of another with the consent and
A. Demand the delivery of a thing equal in kind and value and in without objection of the latter = good faith
all other respects to that employed
B. Demand payment of its price, including its sentimental value as ADJUNCTION, MIXTURE AND SPECIFICATION DISTINGUISHED
appraised by experts
1. Adjunction and Mixture – there would be at least 2 things;
Take note: This is without prejudice to the right given to the accessory Specification – only one thing whose form is changed
owner to demand its separation from the principal thing.
2. Adjunction and Specification – component parts retain or
preserve their nature; Mixture – things mixed may or may not
472 – 473. MIXTURE, COMMIXTION AND CONFUSION
retain their respective original nature

Two kinds of mixture: 3. Adjunction and Specification – accessory follows the principle;
1. Commixtion – mixture of solid things belonging to different Mixture – co ownership results
owners
2. Confusion – mixture of liquid things belonging to different
475. APPRAISAL OF SENTIMENTAL VALUE
owners

Take note: May be voluntary of by chance. Sentimental value

Shall be duly appreciated in the payment of proper indemnity in
RULES GOVERNING MIXTURE accession with respect to movable property.

1. Mixture by will of the owners – Their rights shall first be Examples: Paintings, wedding rings, precious stones and other jewels –
governed by their stipulations. If there is none, each owner not always easy to estimate because it depends upon a person’s
acquires a right I the mixture in proportion to the value of his subjective evaluation.
material as in co-ownership.
CHAPTER 3: QUIETING OF TITLE
2. Mixture caused by an owner in good faith or by chance –
Share of each owner shall be proportional to the value which
belonged to him. 476. REASONS OF PROVISIONS ON QUIETING OF TITLE

A. If things mixed are exactly the same kind and quality:

Divide the mixture equally between the owners PURPOSE
The quieting of title or removal of a cloud therefrom when there is an
B. If things mixed are of different kinds or quality: apparently valid or effective instrument or other claim which is in reality
Co-ownership arises void, ineffective, voidable, unenforceable, etc. Equity comes to the aid
of him who would suffer if the instrument were enforced.
However, if the things mixed can be separated without
injury, their respective owners may demand their CLOUD ON TITLE
separation.
Meaning – a semblance of title, appearing in some legal form but which
3. Mixture caused by an owner in bad faith is in fact invalid or unfounded.
A. Owner in bad faith forfeits the thing belonging to him
B. Liable to pay indemnity for damages Requisites for existence of cloud
1. There is an instrument, record, encumbrance, etc. which is
4. Mixture made with the knowledge and without the apparently valid or effective
objection of the other owner = good faith 2. Such instrument, etc. is in truth and in fact invalid, ineffective,
voidable or unenforceable
3. Such instrument, etc. may be prejudicial to said title
474. SPECIFICATION
Take note: Claimant must show that there is an instrument, etc. which
SPECIFICATION casts a cloud upon his title.
Takes place whenever the work of a person is done on the material of
another and as a consequence of the work, such material undergoes a Grounds or reasons for filing a complaint for quieting of title
transformation; the making of the material of another into a thing of a “An instrument, record, claim, encumbrance or proceeding”
different kind.
Take note: These grounds are exclusive so other reasons may not be
Examples: flour into bread, grapes into wine, etc. considered valid for the same action.

RULES Cloud based on defect in instrument

Quieting of title assumes that the defect in the instrument, etc. is not
Worker made use of material of another in good faith apparent on its face, hence must be proved by extrinsic evidence (It
GR: Worker becomes owner of the new thing but he must indemnify must be apparently valid and effective but is in truth, not)
the owner of the material for its value
Example: If the consideration in the deed of sale is illegal, there is no
XPN: If material is more precious or of more value than the new thing, cloud because the contract is invalid on its face.
the owner of the material may choose to either:
a. Appropriate the new thing to himself upon payment of the Take note: Actual cloud is not essential, as long as there is potential
value of the work or labor danger that a cloud may be cast upon one’s right, relief may be granted.
b. Demand indemnity for the material

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PROPERTY LAW l Atty. Bathan-Lasco l Tanya de la Cruz Ibanez JD2 407

Instances of cloud of title B. Equitable title – beneficial interest in the property

1. Absolute fictitious contract of sale (homesteader)
2. A sale by an agent without written authority or after expiration
of his authority An interest in property – any interest short of ownership, like a
3. A forced contract mortgagee or a usurfructuary.
4. A contract of sale or donation which has become inoperative
because of non-performance by the vendee or donee of a
478. WHEN ACTION TO QUIET TITLE ALLOWED
condition precedent
5. A voidable contract where consent was given through
mistake, fraud, etc. An action to quiet title may be maintained when:

ACTION TO QUIET TITLE 1. The contract, instrument, or other obligation has been
A remedy or proceeding which has for its purpose an adjudication that extinguished or has terminated (ex. Donation of land cancelled
a claim of title to realty adverse to the plaintiff, is invalid, inoperative or upon failure of donee to build a school thereon within a certain
defective and hence, plaintiff may forever be free of any hostile claim. period)
2. The contract, instrument, etc. has been barred by extinctive
Only issue: Whether there is a cloud on a title to real property because prescription, as where the plaintiff has possessed in bad faith
of any instrument, etc. that has a prima facie appearance of validity. the property publicly, adversely and uninterruptedly for 30
years.
Purpose: To remove the cloud on plaintiff’s title.
479. OBLIGATION OF PLAINTIFF
Requisites:
1. Plaintiff has a legal or at least an equitable title to in the real Purpose of the action to quiet title is to remove the cloud on the
property subject to the action plaintiff’s title or to remove a cloud from being case thereon, and not
2. Defendant claims an interest therein adverse to the plaintiff to obtain any other benefit.
arising from an instrument, etc.
3. The instrument, etc. claimed to be casting cloud on plaintiff’s Obligation of plaintiff to return or reimburse
title must be shown to be in fact invalid despite its prima facie “He who seeks equity must do equity”
appearance of validity 1. Return to the defendant all the benefits he may have received
from the latter
Suitor 2. Reimburse defendant for the expenses the latter incurred
Suitor need not be in possession of the property nor have an absolute which redounded to his benefit
title – an equitable title is sufficient to clothe him with personality to
bring an action to quiet title.
CHAPTER 4: RUINOUS BULDINGS AND TREES
Distinguished from action to remove cloud on title IN DANGER OF FALLING
There is a difference between an action to quiet title and an action to
remove a cloud on title 482. BUILDING, WALL, ETC. IN DANGER OF FALLING

A. Action to quiet title – purpose is to put an end to troublesome DUTY OF THE OWNER
litigation in respect to the property involved; remedial action Owner has the duty to demolish a building, wall or any other
involving a present adverse claim construction in danger of falling or to repair the same in order to prevent
it from falling.
B. Action to remove cloud on title – removal of a possible
foundation for a future hostile claim; preventive action to Failure to do so
prevent a future cloud on the title Administrative authorities may order the demolition of the structures, in
the exercise of police power
Includes action to remove a cloud on title
Two classifications of an action to quiet title:
483. LARGE TREES ABOUT TO FALL
1. To remove a cloud on title (remedial action)
2. To prevent the casting of a cloud on title (preventive action)
DUTY OF OWNER OF TREE
NATURE OF ACTION To fell and remove the said threatening tree. Failure to do so, the work
shall be ordered done by the administrative authorities at his expense.
Quasi in rem – neither suits in rem or in personam. However, being
against the person in respect of the res, wherein the judgment does not Take note: Ruinous buildings and trees in danger of falling are nuisances
extend beyond the property in controversy, it acquires a status of quasi per se.
in rem.
 An individual is named as defendant. However, a quasi in rem TITLE III: CO-OWNERSHIP
judgment is conclusive only between the parties.
484. CO-OWNERSHIP DEFINED
PRESCRIPTIBILITY OF ACTION

Plaintiff in possession DEFINITION

If plaintiff is in actual possession of the property, action is imprescriptible A. As a manifestation of ownership – Form of ownership which
exists whenever an undivided thing or right belongs to
Plaintiff not in possession different persons.
10 or 30 years depending on ordinary or extraordinary prescription. B. As a right – right of common dominion which two or more
persons have in a spiritual or ideal part of a thing which is not
materially or physically divided.
477. TITLE AND POSSESSION OF PLAINTIFF
Requisites of co-ownership
The plaintiff must have legal or equitable title to, or interest in the real A. There must be a plurality of owners
property which is the subject matter of the action. He need not be in B. Object of ownership must be a thing or right which is
possession of said property. undivided
C. Each co-owner’s right must be limited only to his ideal share
Title – does not necessarily denote a certificate of title under the of the physical whole
Torrens system. Legal or equitable title is sufficient.
A. Legal title – full or naked ownership

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PROPERTY LAW l Atty. Bathan-Lasco l Tanya de la Cruz Ibanez JD2 407

Characteristics of co-ownership CO-OWNERSHIP V. PARTNERSHIP

A. There are two or more co-owners
B. There is a single object which is not materially or physically
divided Co-ownership Partnership
C. There is no mutual representation by the co-owners
D. It exists for the common enjoyment of the co-owners
E. It has no distinct legal personality Without the Can be created only
F. It is governed first of all by the contract of the parties, Creation formalities of a by contract, express
otherwise, by the special legal provisions, and in default of contract or implied (xpn:
such provisions, by the provisions of Title III on co-ownership. conjugal partnership)

OWNERSHIP OF A CO-OWNER Such juridical

Although the co-owners may have unequal shares in the common Personality No juridical or legal personality distinct
property, quantitatively speaking, each co-owner has a right in a personality from the partners
qualitative sense. exists
Collective enjoyment
Ownership of whole and over his aliquot share Purpose of the thing or right To obtain profits
Each co-owner is the absolute owner of his own ideal but definite share. Co-owner can dispose
Disposal of of his share without A partner cannot do
DISPUTED PORTION/S ALREADY CONCRETELY DETERMINED share the consent of the so unless authorized
There is no co-ownership when the different portions owned by different other
people are already concretely determined and separately identifiable,
A partner can
even if not yet technically described. No mutual
Mutual agency generally bind the
representation partnership
SOURCES OF CO-OWNERSHIP
Co-ownership may be created by any of the following causes: Must be proportional Subject to the
Distribution of to the respective stipulation of the
A. By contract – two persons shared in paying the land with profits interests of the co- partners
the agreement to divide the land equally between them owners
Not dissolved by
B. By law – easement of party walls, ACP between spouses Effect of death death or incapacity of Dissolves partnership
or incapacity a co-owner
C. By succession – heirs of undivided property before partition
Agreement to keep
D. By testamentary disposition or donation inter vivos – Duration the thing undivided of No limits
testator or donor prohibits partition for a period of time more than 10 years is
void
E. By fortuitous event or by chance – commixtion or
confusion CO-OWNERSHIP V. EASEMENT

F. By occupancy – when two persons catch a wild animal or

fish in the open sea or gather forest products Co-ownership Easement

CO-OWNERSHIP V. JOINT OWNERSHIP Each owner has a right of

dominion over the whole There is precisely a limitation on
property and over his undivided the right of dominion
Co-ownership Joint ownership share

Each co-owner is the There is no abstract Right of ownership rests solely The right of dominion is in favor
owner of the whole share ownership by on each and every co-owner of one or more persons and over
Ownership of undivided thing or the co-owners, the over a single object two or more different things
share right but at the same rights of the joint
time of his own ideal tenants being
part thereof inseparable 485. SHARE OF CO-OWNERS IN BENEFITS AND CHARGES

Co-owner is permitted SHARE OF CO-OWNERS IN BENEFITS AND CHARGES

to dispose of his Joint tenant is not Proportional to the respective interests of each. Hence, if one’s interest
Disposition of share or interest in permitted in the co-ownership is ¼, his share in the benefits and charges is also
shares the property without ¼.
the consent of the
others CONTRARY STIPULATION IN A CONTRACT

Heirs are subrogated If a joint tenant dies, General rule: Any stipulation in a contract making the share in the
Effect of death to the rights of the his ownership dies benefits of charges disproportional to the respective interests of the co-
deceased with him owners is void.

Exception: If the co-ownership is created other than by a contract (e.g.

by will, donation) – the share of the co-owners need not be
Disability (e.g.
proportionate to their respective interests.
minority) of a joint
tenant inures to the
Not the same as joint benefit of the others 486. LIMITATIONS ON CO-OWNERS’S RIGHT OF USE
Legal disability ownership for purposes of
or incapacity prescription. Hence,
LIMITATIONS ON CO-OWNER’S RIGHT OF USE
prescription will not
A co-owner may use the thing owned in common provided he does so:
run against the latter
who can invoke the
1. In accordance with the purpose for which the co-
disability as a
ownership is intended – to determine purpose, look into
defense.
the agreement, express or implied.

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 In the absence thereof, it is to be understood that Take note: Failure or refusal of co-owner to contribute is not tantamount
the thing is intended for that use for which it is to a renunciation.
ordinarily adapted according to its nature
 If previously used for a particular purpose – When renunciation not allowed
presumed that such is the purpose intended by the If it is prejudicial to the co-ownership like when a co-owner has the
parties means but refuses to contribute.
 Co-owners are free to change the purpose of the
co-ownership by agreement 489. NECESSITY FOR AGREEMENT ON EXPENSES
2. In such a way as not to injure the interest of the co-
ownership Repairs for preservation
A co-owner has the right to compel the others to contribute to the
expenses of preservation, maintenance or necessary repairs, even if
487. ACTION IN EJECTMENT
incurred without the knowledge of the others or prior notice to them.

ACTION IN EJECTMENT Rule on notification

The co-owner must, if practicable, first notify the others of the necessity
By anyone of the co-owners – Any co-owner may bring, in behalf of for the repairs.
himself and others, an action in ejectment affecting the co-ownership,
Take note: Lack of notice even if practicable would not exempt the other
Take note: co-owners from their obligation, but the co-owner who advanced them
 The suit may proceed without impleading the other co- has the burden of proving that they were property incurred.
owners.
 A favourable judgment shall benefit the other co-owners, but 490. DIFFERENT STORIES OF A HOUSE, DIFF OWNERS
if adverse, the same cannot be prejudice the rights of the co-
owners who were not impleaded
RULES
Against strangers or a co-owner When different stories of a house belong to different owners –
The action may be brought against strangers and even against a co- contribution to the necessary expenses for the preservation or
owner. maintenance of the house.

Take note: As against a co-owner, the only purpose of the action is to Take note: Only applies if the titles of ownership do not specify the terms
obtain recognition of the co-ownership. The plaintiff cannot seek or there is no agreement
exclusion of the other co-owner from the property because the latter
has a right of possession.  Each owner shall bear the cost of maintaining the floor
of his story
Building effect of adverse decision
GR: An adverse decision is not res judicata with respect to other co-  Main and party walls, roof and other things used in
owners who are not parties to the action common – maintained by all owners in proportion to the
value of the story belonging to each
XPN: If it appears that the action was instituted in their behalf.
 Floor of the entrance front door, common yard and
Against co-owners involving co-owned property sanitary works common to all – maintained at the
Treat all co-owners of a property as indispensable parties where the suit expense of all the owners pro rata.
involves the co-owned property. Purpose is to prevent multiplicity of
suits.  Stairs from the entrance to the first story – maintained
at the expense of all the owners pro rata, except the owner
Where co-ownership deemed terminated of the ground floor
When petitioner filed an action to compel the sale of the property and
the court granted the petitioner, the co-ownership was deemed  Stairs from the first to the second story – maintained by
terminated, hence right to enjoy possession ceased. all, except the owner of the ground floor and first story

488. OBLIGATION TO CONTRIBUTE TO EXPENSES 491. CONSENT OF OTHER CO-OWNERS FOR ALTERATIONS

OBLIGATION TO CONTRIBUTE TO EXPENSES

ALTERATION
The expenses of preservation of the thing owned in common and the
A change made by a co-owners in the thing owned in common, which
amount of taxes should be borne by all.
involves:
A co-owner who advanced payment
 Change of the thing from the state or essence in which the
Has a right to demand reimbursement from the others in proportion to
others believe it should remain
their respective interests in the co-ownership. Until reimbursed, he holds
 Withdrawal of the thing from the use to which they wish it to be
a lien upon the subject property for the amounts due therefrom.
intended
 Any other transformation which prejudices the condition or
Refers only to necessary expenses
substance of the thing or its enjoyment by the others
Examples are those incurred for repair of a building in a ruinous
condition or payment of taxes.
Examples: Addition of another story to a building, construction of a
house on a land owned in common
Take note: Useful expenses are not covered, unless others consented.
Any act of ownership included
RENUNCIATION BY A CO-OWNERS OF HIS SHARE
Alteration is not limited to material or physical changes. It includes any
act of ownership, such as:
Renunciation need not be total
 Real right or encumbrance is imposed on the common
The co-owner need only renounce so much of his undivided share as
property (e.g. servitude, registered lease, mortgage)
may be equivalent to his share of expenses and taxes.
Take note: A co-owner may alienate, assign, mortgage and even
Renunciation partakes of the nature of dacion en pago
substitute another person in the enjoyment of his undivided interest in
Constitutes a novation by change of the object of the obligation, the
the property because he has full ownership over it. (Except when
consent of the other co-owners and creditor is necessary.
personal rights are involved)

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PROPERTY LAW l Atty. Bathan-Lasco l Tanya de la Cruz Ibanez JD2 407

UNANIMOUS CONSENT NEEDED Examples:

Unanimous consent of all the co-owners (not just majority) is necessary 1. When the resolution calls for a substantial change of the thing
even if alteration would prove beneficial, because alteration is an act of or the use to which the property has been intended
ownership and not of mere administration. 2. When the resolution authorizes leases, loans and other
contract without the necessary security
Form of consent and their effect 3. When the resolution upholds the continued employment of an
A. Express consent – entitles the co-owner to recovery. Burden administrator who is guilty of fraud or negligence in his
of proof is upon him to prove that such consent was given. management

B. Implied consent – co-owner who made the alteration has no

493 – 494. RIGHTS OF EACH CO-OWNER
action against the others for their share of the expenses.

Take note: If consent can be shown even if merely tacit, there is still RIGHTS OF EACH CO-OWNER
consent so there is no reason why the other co-owners should not share
in the expenses. Besides, Article 491 does not expressly require express 1. Full ownership of his undivided share in the common property
consent. 2. Full ownership of the fruits and benefits pertaining thereto
3. Right to alienate, assign or mortgage his ideal interest
Liability for alteration independently of the other co-owners
A co-owner who makes such alteration without the express or implied 4. Right to substitute another person in the enjoyment of his
consent of the others acts in bad faith and as punishment, he should: part, except when personal rights are involved
A. Lose what he has spent 5. Demand at any time the partition of the thing owned in
B. Be obliged to demolish the improvements done common, insofar as his share is concerned
C. Be liable to pay for losses and damages the community
property or the other co-owners may have suffered Nature of right before partition
Before partition, a co-owner has only an ideal or abstract proportionate
Take note: Whatever is beneficial or useful to the co-ownership shall share in the entire property.
belong to it.
Legal right of redemption
Intervention of the courts A co-owner has the right to redeem the property in case the shares of
If the withholding of the consent by one or more of the co-owners is all the other co-owners or any of them are sold to a third person.
clearly prejudicial to the common interest, the courts may afford
adequate relief. Take note: Redemption by a co-owner does not terminate the co-
ownership nor give him title to the entire property
492. ACTS OF ADMINISTRATION & BETTER ENJOYMENT
Personal right
Right which cannot be transferred because it affects the personal
RULES FOR ACTS OF AMINISTRATION & BETTER ENJOYMENT relations of the co-owners with one another.

Meaning of acts of administration and better enjoyment SALE OR MORTGAGE OF COMMON PROPERTY
They contemplate acts or decisions for the common benefit of all the
co-owners and not for the benefit of only one or some of them. Undivided portion
A co-owner is free to dispose of his pro indiviso share and of the fruits
Examples: and other benefit arising from that share.
1. Appointment of administrator to manage the property
2. Engaging the services of a lawyer to preserve the ownership Take note: Transferee’s right is limited to the portion which may be
and possession of the property allotted to him upon partition (he does not acquire any determinate
3. Payment made in the ordinary course of management physical portion of the whole)
4. Unregistered lease of 1 year or less
Definite portion
Take note: Although the co-owners may have unequal shares in the A deed of sale appearing to convey a definite portion of the property
common property, quantitatively speaking, each co-owner has the same does not per se render the sale a nullity.
right as any of the others.
 Sale is valid subject to the condition that the interests
Distinguished from alteration acquired by vendee is limited to the part that may be assigned
 Alteration – is more or less permanent to the co-owner vendor upon partition
 Acts of administration – have transitory effects and the
purpose is for the preservation, preparation and better  There may also be a valid sale of a definite portion where
enjoyment of the thing which do not affect its essence, nature estoppel applies, as when the co-owners consented to the
or substance. same or never objected despite knowledge.

Majority rule prevails Whole property

The majority represent the controlling interests in the object of the co- Sale is valid only insofar as his ideal quota, unless authorized by the
ownership (51% of the financial interest). The majority also decides the other co-owners.
expenses to improve or embellish the common property.
Take note: Appropriate remedy of other co-owners who did not consent
Take note: Notice must be given to the minority, unless it is to the sale is an action for partition under Rule 69. Recovery of
impracticable to do so. possession nor restitution cannot be sustained since buyer is a legitimate
proprietor and possessor.
Intervention of the courts
If there is no majority or if the resolution of the majority is seriously Lease of half-interest
prejudicial to the interests of the other co-owners, the court may take A co-owner could validly lease his half-interest independently of the
such measures as it may deem proper, at the instance of the interested other co-owner and could cancel the said lease agreement without the
party. The court may also appoint an administrator. need of securing the consent of the other.

Acts seriously prejudicial

No hard and fast rule as to what should be considered as “seriously
prejudicial” as to justify the court’s intervention.

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494. TERMINATION OF CO-OWNERSHIP POSSESSION OF A CO-OWNER SAME TO THAT OF A TRUSTEE

Co-ownership, a form of trust

TERMINATION OF CO-OWNERSHIP Co-ownership is a form of trust, with each owner being a trustee for
Co-ownership may be terminated in different ways, as follows: each other. A trust relation inheres in a co-ownership. Hence, no co-
owner may acquire exclusive ownership of the common property
1. By consolidation or merger in only one of the co-owners of all through prescription for possession by the trustee alone is not deemed
the interests of the others adverse to the rest.
2. By the destruction or loss of the property co-owned
3. By acquisitive prescription in favor of a third person Claim of title by prescription founded on adverse possession
4. By the partition, judicial or extrajudicial of the respective Possession of a co-owner may be deemed adverse when he makes an
undivided shares of the co-owners open repudiation of the trust by unequivocal acts made known to the
5. By the sale by the co-owners of the thing to a third person other co-owners. Hence, he may claim title by prescription founded on
and the distribution of its proceeds among them adverse possession where it appears that:

Take note: Redemption is not a mode of terminating co-ownership. 1. He had performed unequivocal acts of repudiation of the co-
Hence, a co-owner who redeems the property in its entirety does not ownership amounting to an ouster of other
make him the owner of all of it. 2. Such positive acts of repudiation have been made known to
the other co-owners
RIGHT OF CO-OWNER TO DEMAND PARTITION 3. The evidence is clear, complete and conclusive in order to
establish prescription without any shadow of doubt
Partition 4. His possession is open, continuous, exclusive and notorious
The division between two or more persons of real or personal property
which they own in common so that each may enjoy and possess his sole POSITIVE ACTS OF REPUDIATION
estate to the exclusion of and without interference from the others.
GR: Action to compel partition is imprescriptible.
Right to demand
GR: A co-owner has the right to demand at any time partition of the XPN: If the co-owner repudiates the co-ownership. Prescription begins
thing owned in common, insofar as his share is concerned for no co- to run from the time of repudiation.
owner is obliged to remain in the co-ownership.
Clear acts of repudiation
Take note: Action to demand partition is imprescriptible and cannot be
barred by laches  Co-owner executed a deed of partition and obtained the
cancellation of the title in the name of their predecessor and the
XPNS: issuance of a new one wherein he appears as the new owner.
1. When the co-owners have agreed to keep the thing undivided Prescription began to run from issuance.
for a period of time, not exceeding 10 years
2. When the partition is prohibited by the donor or testator for a A COT is a notice to the whole world of his exclusive title to the land. The
certain period, not exceeding 20 years issuance thereof is an open and clear repudiation of the trust or co-
3. When the partition is prohibited by law (e.g. ACP, CPG, family ownership and the lapse of 10 years of adverse possession was sufficient
to vest title in the co-owner by prescription.
home, party walls and fences)
4. When partition wold render the thing unserviceable for the Take note: However, if title was secured through fraud, prescription
use for which it is intended begins to run only from the discovery thereof.
5. When another co-owner has possessed the property as
exclusive owner and for a period sufficient to acquire it by  Filing by a trustee of an action in court against the trustor to
prescription quiet title to property or recovery of ownership

Take note: If the period stipulated for indivision exceeding 10 years, the  Action for reconveyance of land based on implied trust
stipulation is only void insofar as the excess is concerned. prescribes within 10 years from date of issuance of title

Existence of the fact of co-ownership  Co-owner causes the cancellation of the title and gets a new
Partition presupposes that the thing to be divided is owned in common certificate of title in his own name
and it is presumed that the parties admit the fact of co-ownership.
Hence, it is immaterial in whose name the property is declared for Not clear acts of repudiation
taxation purposes. Cannot constitute adverse possession as basis for title by prescription

PRESCRIPTION IN FAVOR OR AGAINST A CO-OWNER  Mere silent possession without acts amounting to the ouster of
the other co-owners
Action to compel partition imprescriptible
GR: Prescription does not run in favor or against a co-owner. An action  Mere receipt of fruits, rents or profits, erecting fences an
to compel partition may be filed at any time by any of the co-owners buildings adapted for the cultivation of the land held in trust
against the actual possessor.
 Sole fact of a co-owner having declared the lands in his name
Reason: Because the possession of a co-owner is ordinarily not adverse for tax purposes and paid taxes
to the others.
495. WHEN RIGHT TO DEMAND PARTITION NOT AVAILABLE
XPN: If the co-owner repudiates the co-ownership. Prescription begins
to run from the time of repudiation. (There must be a clear repudiation)
When partition will render thing unserviceable
Doctrine of equity cannot be involved Co-owners cannot demand a physical division of the thing owned in
Imprescriptibility of action should pre-empt and prevail over all abstract common when to do so would render it unserviceable for the use for
arguments based only on equity which should only be applied in the which it is intended.
absence of and never against statutory law.
Take note: But co-ownership may be terminated in accordance with Art
Acquisitive prescription as laches which is based on equity cannot be 498 – sale, assignment, etc.
invoked to defeat justice.

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496. ACTION FOR PARTITION Take note: Third person – all those with real rights like mortgage or
servitude over the thing owned in common or with personal rights
against co-owners who had no participation whatever in the partition
Purpose and effect of partition
Action for partition implies that the subject property is still owned in
450-451. OBLIGATIONS OF CO-OWNERS UPON PARTITION
common. It is premature if property is still in dispute.

Purpose – separation, assignment of the thing held in common among Obligations of co-owners upon partition
those to whom it may belong. To put an end to co-ownership. 1. Mutual accounting for benefits, profits, or income received
for the fruits
Effect – to vest in each a sole estate in specific property, giving to each 2. Mutual reimbursement for expenses
one a right to enjoy his estate without supervision or interference from 3. Indemnity for damages by reason of negligence or fraud
others. 4. Reciprocal warrant for defects of title or quality of the
portion assigned to a co-owner
ACTION FOR PARTITION

Two principal issues involved

1. Whether the plaintiff is indeed a co-owner
2. How the property should be divided

Two actions involved

A co-owner can seek the partition of the property in co-ownership and
the conveyance to him of his lawful share. No need to file another action.

Issues of co-ownership to be resolved first

The issue of co-ownership must first be definitely resolved in order to
effect a partition of properties, otherwise it would be premature.

HOW PARTITION EFFECTED

Judicially or extra-judicially.

Take note: Rule governing partition is primarily the Civil Code. Rules of
Court is suppletory.

APPLICATION OF THE STATUTE OF FRAUDS

Statute of Frauds does not apply to partition because it is not legally
deemed a conveyance or sale of a property resulting in ownership, but
simply a segregation and designation of that part of the property which
belongs to each of the co-owners. Hence, partition is valid and
enforceable although made orally, where not third persons are involved.

497. PARTICIPATION OF CREDITORS AND ASSIGNEES

Scope of creditors and assignees

Creditors and assignees are given the right to participate in the
partition.

Creditors may refer to original or preferred, provided they became so

during the existence of the co-ownership.
Assignees – transferees of the interests of one or more of the co-
owners and there has been a delivery.

Right to notice of partition

They have the right to be notified thereof. Absent the notice, partition
will not be binding on them.

Right to object or to impugn partition

A. If no notice given – C/A may question the partition already
made
B. If notice is given – C/A to appear and make known their position
C. They cannot impugn a partition already executed, unless:
 There has been fraud, regardless of notice
 Partition was made notwithstanding that formal opposition

was presented to prevent it
498. SALE OF INDIVISIBLE THING TO A THIRD PERSON

Rule
Where the thing is essentially indivisible and the co-owners cannot
agree that it be allotted to one of them who shall indemnify the others,
it shall be sold and its proceeds distributed.

499. RIGHTS OF THIRD PERSONS BEFORE PARTITION

Rights of third persons before partition protected

Partition of a thing shall not prejudice third persons who shall retain
the rights of mortgage, etc. belonging to them before the division was
made.

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