Property Beda
Property Beda
SUBJECT COMMITTEE:
CATHERINE FLORES subject chair, CAMHELLA SANDOVAL assistant subject chair, JEZREEL CARIDAD TAGUBA edp, NOEL BURTON persons
and family relations, AYLA HERAZADE SALENDAB property, KRISTINE PAULA CHU and RIO ROSE SANTOS wills and succession, CHERRYLYN
NAVARRA and RAMIILA QUINTO obligations and contracts, THOMAS ANGELO SANTOS sales and lease, SOHAIRA DIMNATANG partnership,
agency and trust, LEANA MAE BLASCO credit transactions, CELESTINO VIERNES, JR. torts and damages, GENEVIEVE SEVIDAL land titles and
deeds, JOHN SAGABAEN conflict of laws
MEMBERS:
Alfredo Francisco Brettana, Alysse Adao, Angela Paminter, Angela Punzalan, Anthony Villamor, Arjay Manauis, Arjel De Guzman, Avril
Gamboa, Benjamin Estolas, Beverly Quintos, Cadilyn Bedol, Carissa Eñano, Cecille Benitez, Cerizar Torio, Charlotte Lyza Sayson, Chino
Ramos, Christian Joy Ocampo, Cindy Villareal, Crystal Faith De Torres, David Evelio Valencia, Denise Concepcion, Don Calugay, Donna
Frances Ylade, Dorothy Kate Punzalan, Emmanuel Jefferson Santiago, Erwin Legazpi, Eva Banzon, Farrah Mala, Felwin Rau Eltanal,
Fernando Tullao, Flocerfina Lloren, Garizaldy Anteola, Gideon Peña, Grace Del Rosario, Harold Talledo, Hera Aiza Barona, Irene Lipat, Irir
Fatima Cero, Irwin Peña, Isabel Suzara Zulueta, Jamella Anne Marie Joya, Jay Nieva, Jenno Antonio Villanueva, Jerico Galvez, Jerzy Torres,
Jhony Martin Alba, Joanna Marie Paguio, John Carlo Gil Sadian, Karen Kaye Go, Karlo Dialogo, Katrina Daniela Chavez, Kelvin Brian Pe,
Laurie Pe, Lendell Lota, Lorene Pe, Ma. Buenafe Carandang, Ma. Elena Saludes, Ma. Louise Aviso, Mabelle Palay, Mae Lane Ong, Marife
Andal, Mary Eileen Ang, Mary Jane Perez, Naomi Abrejera, Narseen Love Joy Balajadia, Neo Valerio, Nino Martin Cruz, Norly Villanueva,
Paola Rodriguez, Patrick Maglinao, Peter Glen Vinluan, Peter Labuguen, Peter Vinluan, Pia Callueng, Ralph Paguia, Ramona Diñozo,
Raymond Romano, Reinalee Susan Calvez, Roju Santino Ilagan, Ronald Ryan Suarez, Simon Simon, Stacy Cunanan, Trixy Comia, Uelah
Cangco, Vanessa Guinto, Vanessa Jacob, Victoria Panganiban, Walter Fernandez, Wendy Lynne Hernandez- Magallanes, Zenaida Razon
4. Real by analogy – it is so classified by appear to be immovable by nature,
express provision of law (par. 10, Art. 415) nothing prohibits the parties from
treating them as chattels to secure an
obligation under the principle of
Types of Immovable Properties (Art. 415) estoppel (Tsai vs. CA, GR No.
1. Land, buildings, roads and constructions 120098, October 2, 2001).
of all kinds adhered to the soil
4. Statues, reliefs, paintings, or other objects
Where a building is sold to be for use or ornamentation
demolished immediately, it is to be
Requisites:
regarded as movable because the a. Placed by the owner or by a tenant as
subject matter of the contract is really agent of the owner
the materials thereof. b. With the intention of attaching them
permanently, even if adherence will
not involve breakage or injury
Buildings are immovables by
incorporation. Hence, their adherence 5. Machinery, receptacles, instruments, or
to the land must be permanent and implements for an industry or works
substantial. Portable structures are not
immovables. Requisites:
A building is an immovable even if not a. The machinery, etc. must be placed
erected by the owner of the land. The by the owner of the tenement or his
only criterion is union or incorporation agent
with the soil. (Ladera vs. Hodges CA- b. The industry or works must be carried
GR No. 8027-R, September 23, on in a building or on a piece of land
1952). c. The machinery, etc. must tend directly
A building is real property thus, its sale to meet the needs of the said industry
as annotated in the Chattel Mortgage or works
Registry cannot be given the legal
effect of registration in the Registry of The equipment and living
Real Property (Leung Yee vs. Strong quarters of the crew, being permanently
Machinery Co. G.R. No. L-11658 attached to the platform which is also an
February 15, 1918). immovable, are immovables. This is
especially so that they are intended to
2. Trees, plants, and growing fruits meet the needs of the business and
When trees are cut or uprooted, industry of the corporation (Fels Energy,
incorporation ceases and they Inc v Province of Batangas, et al., GR No.
become movables; timber is still an 168557, Feb 16, 2007)
integral part of an immovable property
when it constitutes the natural product Movable equipments, to be
of the latter. immobilized in contemplation of law, must
For purposes of attachment, be essential and principal elements of an
execution, and the Chattel Mortgage industry or works (Mindanao Bus Co. vs.
Law, growing crops have the nature of City Assessor and Treasurer GR No. L-
personal property (Sibal vs. Valdez 17870, September 29, 1962).
G.R. No. L-27352, August 4, 1927).
Machinery, movable in nature,
3. Everything attached to an immovable in a becomes immobilized when placed on a
fixed manner plant by the owner of the property but not
The attachment need not be made by so when placed by a tenant, usufructuary
the owner. or a person having only a temporary right
The breakage or injury, in case of unless such person acted as agent of the
separation, must be substantial. owner (Davao Sawmill Co. vs. Castillo GR
The fact that the machineries were No. 40411, August 7, 1935).
bolted or cemented on real property
There are 2 views on the effect of the
mortgaged does not make them ipso
temporary separation of movables from the
facto immovable under Art. 415 (3)
immovables to which they are attached:
and (5) as the parties intent has to be
looked into. Even if the properties
San Beda College of Law
2010 Centralized Bar Operations
a. They continue to be regarded as A personal right is always regarded as
immovables. personal property. The exception is in
b. Fact of separation determines the the case of contracts for public works
condition of the object (supported by which are considered as real property.
Paras and Tolentino)
MOVABLE PROPERTIES
If the machine is still in the building, but is
no longer used in the industry, the Tests:
machine reverts to the condition of a 1. By exclusion: all those not included in Art.
chattel. On the other hand, if still needed 415
for the industry, but separated from the 2. By description: an object is movable if:
tenement temporarily, the property a. It can be transported from place to
continues to be an immovable (Paras, place;
p.20). b. Without substantial injury to the
immovable to which it is attached.
3. Real Property considered as personal
property by special provision of law.
3
Note: The New Civil Code, in many instances, it to patrimonial property. The conversion
uses the terms consumable and fungible happens only if the abandonment is
interchangeably. definite and upon a formal declaration on
the part of the government to withdraw it
PROPERTY IN RELATION TO WHOM IT from public use (Laurel vs. Garcia GR No.
BELONGS (Arts. 419–425) 92013, July 25, 1990).
5
1. Interference necessary to avert an As to necessity of proof of prior physical
imminent and threatened danger possession
2. Damage to another much greater than Plaintiff must prove that Plaintiff need not have
damage to property he was in prior physical been in prior physical
possession of the possession
LEGAL REMEDIES TO RECOVER premises until he was
POSSESSION OF ONE’S PROPERTY: deprived thereof by the
1. Personal Property defendant
As to when the 1 year period is counted from
Replevin – a remedy for the recovery of 1 year period is 1 year period is
possession of personal property which is generally counted from counted from the date
governed by Rule 60 of the Rules of Court the date of actual entry of last demand or last
on the land letter of demand
2. Real Property
a. Accion interdictal: A summary action b. Accion publiciana: An ordinary civil
to recover physical or material proceeding to recover the better right
possession of property. of possession of property and is
It must be brought in the proper resorted to when the dispossession
MTC or MeTC within one year has lasted for more than 1 year.
from the time the cause of action The issue involved is not
arises. possession de facto but
i. Forcible entry (detencion): An possession de jure of realty
action for recovery of material independent of the title.
possession of real property when Must be brought in the proper
a person originally in possession RTC within a period of 10 years
was deprived thereof by force, from the time the cause of action
intimidation, strategy, threat or arises.
stealth. c. Accion reinvidicatoria: An action to
ii. Unlawful Detainer (desahuico): An recover real property based on
action for recovery of possession ownership. The object is the recovery
of any land or building by a of dominion over the property as
landlord, vendor, vendee, or other owner.
person against whom the Must be brought in the proper
possession of the same was
RTC within a period of 10 years
unlawfully withheld after the
from the time the cause of action
expiration or termination of the
arises.
right to hold possession, by virtue
of any contract.
Requisites:
i. The thing must be corporeal,
Forcible Entry and Unlawful Detainer concrete, and determinate
Distinguished ii. Proof of identity
Forcible Entry Unlawful Detainer iii. Proof of title (Reyes-Puno, p.24)
As to when possession became unlawful
Possession of the Possession is
Surface Rights (Art. 437)
defendant is unlawful inceptively lawful but The owner of a parcel of land is the owner of
from the beginning as he becomes illegal from its surface and everything under it.
acquires possession by the time defendant
force, intimidation, unlawfully withholds Limitations:
strategy, threat or stealth possession after the Horizontally: extends up to the boundaries
expiration or Vertically: extends below the surface and
termination of his right above it to the extent required by the
thereto. economic interest of or utility to the owner, in
As to the necessity of demand relation to the exploitation that may be made
No previous demand for Demand is of the property
the defendant to vacate jurisdictional if the Airspace: the owner cannot complain of the
is necessary ground is non– reasonable requirements of aerial navigation
payment of rentals or
failure to comply with HIDDEN TREASURE (Arts. 438 & 439)
the lease contract
San Beda College of Law
2010 Centralized Bar Operations
Any hidden or unknown deposit of money, Kinds of Fruits
jewelry or other precious objects, the lawful a. Natural fruits – spontaneous products
ownership of which does not appear of the soil, the young and other
products of animals
General Rule: It belongs to the owner of the b. Industrial fruits – those produced by
land, building or other property on which it is lands of any kind through cultivation or
found. labor
c. Civil fruits – rents of buildings, price of
Exceptions: The finder is entitled to ½ leases or lands and the amount of
provided: perpetual or life annuities or other
1. Discovery was made on the property of similar income
another, or of the State or any of its
political subdivisions; Bonus to planters for the risk
2. The finding was made by chance; undergone in mortgaging property is
3. The finder is not a co–owner of the NOT a civil fruit of the mortgaged
property where it is found; property (Bachrach Motor Co. vs.
4. The finder is not a trespasser; Talisay-Silay Milling Co. GR No.
5. The finder is not an agent of the 35223, September 17, 1931).
landowner;
6. The finder is not married under the General Rule: To the owner of the
absolute community or the conjugal principal belongs the natural, industrial,
partnership system (otherwise his share and civil fruit.
belongs to the community).
7
2. To the owner of a thing belongs the improvement expenses for from B, P, S
extension or increase of such thing. w/o paying preservation (as if both
3. Bad faith of one party neutralizes the bad indemnity and Lose acted in good
faith of the other. collect improvements faith)
damages, or w/o right to If B, P, S
4. There should be no unjust enrichment at
Demolition or indemnity acquires
the expense of others. restoration, from LO (452) improvements
5. Bad faith involves liability for damages. and collect unless the LO , remove
6. Accessory follows the principal. damages, or sells land materials if
7. Accession exists only if the incorporation Sell to B, P or w/o injury
is such that separation would either rent to S, and (447)
seriously damage the thing or diminish its collect No action
value. damages versus LO
Pay
necessary
Right of Accession With Respect to Real
expenses to
Property B, P, S (449,
450, 451)
Accession Industrial Bad Faith
Table of Rights and Obligations:
Builder, Same as though all acted in good faith (453)
Owner of the
Landowner Planter,
Materials Bad Faith Good Faith Good Faith
(LO) Sower
(OM)
(B,P,S) Acquire Remove Remove
Good Faith Good Faith Good Faith improvements improvements materials if
after paying in any event w/o injury
Acquire Right of Collect value indemnity and Be Collect value
improvements retention for of materials damages to B, indemnified of materials,
and pay to B, necessary primarily from P, S for damages primarily from
P, S and useful B, P, S; Subsidiarily B, P, S;
indemnity; expense subsidiarily liable to owner subsidiarily
subsidiarily Pay value of from land of materials from LO (447,
liable to owner materials to owner if B, P, (454, 447, 455)
of materials owner of S insolvent 455)
a. Sell land materials Remove only
to B or P if without Bad Faith Bad Faith Good Faith
except if injury (455, Acquire Right of Collect value
the value 447) improvements retention for of materials
of the after necessary primarily from
land is indemnity to expenses B, P, S;
considera B, P, S; Pay value of subsidiarily
bly more subsidiarily materials to from LO
b. Rent to S liable to owner owner of 2. Collect
(448, of materials materials and damages
546, 455) a. Sell to B, pay him 3. If B, P, S
Good Faith Good Faith Bad Faith P except: damages acquires
Acquire Right of Lose them if the (546, 447) improvements
improvements retention for without right to value is remove
and pay necessary indemnity considera materials in
indemnity to and useful (449) bly more any event
B, P, S expenses b. Rent to S (447, 455)
A. Sell to B, P Keep building, (453,
except if the planting or 448, 546,
value of land sowing w/o 548, 455)
is indemnity to Good Faith Bad Faith Good Faith
considerably owner of Option to: Recover Good Faith
more, forced materials and Acquire w/o necessary Collect value
lease collect paying expenses of materials
Without damages indemnity and (452, 443) and damages
subsidiary (546, 449) collect Lose from B, P, S
liability for damages improvements and
cost of Sell to B, P w/o right of subsidiarily
material and rent to S retention from from LO
Good Faith Bad Faith Bad Faith and collect LO (452) Remove
damages unless LO materials in
Option to: Recover Bad Faith Demolish or sells the land any event if B,
Acquire necessary Recover value restore and P, S acquires
San Beda College of Law
2010 Centralized Bar Operations
collect improvements primary intent of the law is to avoid a state
damages of forced co–ownership especially where
Pay the parties agree that Arts. 448 and 546
necessary are applicable and indemnity for the
expenses to
improvements may be paid although they
B, P, S
Subsidiarily differ as to the basis of the indemnity. It is
liable to owner the current market value of the
of materials improvements which should be made the
(449, 450, basis of reimbursement to the builder in
451) good faith (Pecson vs. CA, GR No. 94033,
Bad Faith Good Faith Bad Faith May 29, 1995).
Acquire Indemnity for No indemnity; Article 448 refers to a land whose
improvements damages lose materials ownership is claimed by two or more
& pay Remove (449) parties, one of whom has built some
indemnity & improvements works, or sown or planted something. It
damages to B, in any event does not apply to a case where the owner
P, S (454, 447) of the land is the builder, sower, or planter
(454,447) who then later loses ownership of the land
by sale or donation. Where the true owner
Article 448: himself is the builder of the works, the
Application: issue of good faith or bad faith is entirely
Applies only when the builder, planter or irrelevant. The rule on good faith laid down
sower believes he has the right to build, in Article 526 of the Civil Code shall be
plant or sow because he thinks he owns applied to determine the good faith of the
the land or believes himself to have a builder in Article 448. (Pecson v CA GR
claim of title (Morales vs. CA, GR No. No. 115814, et al. , May 26, 1995)
126196, January 28, 1998). After the government sold the property of
When the co-ownership is terminated by a a person due to non-payment of taxes, the
partition and it appears that the house of buyer moved for delivery not only of the
an erstwhile co-owner has encroached lot, but even the improvement. Only the lot
upon a portion pertaining to another co- was sold. The motion was granted subject
owner which was however made in good to the condition of reimbursement of the
faith, then the provisions of Art. 448 should value of the improvement. Reason: he is a
apply to determine the respective rights of builder in good faith. He was still the
the parties (Ignao vs. Intermediate owner of the lot when he constructed the
Appellate Court GR No. 72876, January improvement.(Nuguid v CA GR No.
18, 1991). 151815, February 23, 2005)
Does not apply where one’s interest in the
land is merely that of a holder such as a Options of the landowner:
mere lessee under a rental contract The owner of the land shall have the right
(Balucanag vs. Francisco GR No. L- to appropriate as his own the building,
33422, May 30, 1983), an agent, or a planting or sowing, after payment of the
usufructuary (Macasaet vs. Macasaet GR necessary and useful expenses. The
No. 154391, September 30, 2004). owner of the land may also oblige the
Lessees came into possession of the lot builder, planter or sower to pay the price of
by virtue of a contract of lease. They are the land. If the owner chooses to sell his
then estopped to deny their landlord’s title land, the builder, etc. must purchase the
or to assert a better title not only in land; otherwise, the owner may remove
themselves, but also in some third person the improvements thereon. The builder,
while they remain in possession of the etc. is not obliged to purchase the land if
land until they surrender such possession its value is considerably more than the
to the landlord (Munar v. CA). The building. In such case, the builder, etc.
estoppel applies even though the lessor must pay rent. If the parties cannot come
had no title at the time. The relation of to terms over the conditions of the lease,
lessor and lessee may also be asserted by the court must fix the terms thereof.
the successor’s of the original lessor to the (Ballatan vs. CA, GR No. 125683, March
latter’s title (Feliciano v Sps. Zaldivar, GR. 2, 1999).
No 162593, Sept 26, 2006) The landowner can choose between
The provision on indemnity in Art. 448 may appropriating the building by paying the
be applied by analogy considering that the proper indemnity or obliging the builder to
9
pay the price of the land, unless its value right to choose because it would be
is considerably more than that of the impractical to choose the first alternative
structures, in which case the builder in for the whole improvement might be
good faith shall pay reasonable rent. If the rendered useless, is contrary to the
parties cannot come to terms over the explicit provisions of Art. 448 to the effect
conditions of the lease, the court must fix that "(t)he owner of the land . . . shall have
the terms thereof.(Rosales, et al. v. the right to appropriate . . .or to oblige the
Castellfort, et al., Oct 5, 2005) one who built . . . to pay the price of the
The landowner may not refuse both to pay land . . . ." The law is clear and
for the building or to sell the land and, unambiguous when it confers the right of
instead seek to compel the owner of the choice upon the landowner and not upon
building to remove the building from the the builder and the courts. (Ignao vs. IAC,
land. He is entitled to such removal ONLY Iganao and Ignao, GR No. 72876 January
when, after having chosen to sell the land, 18, 1991)
the other party fails to pay for said land
(Ignacio vs. Hilario GR No. L-175, April Reason for the law:
30, 1946). The raison d’etre for the law is that, where
Should no other arrangement be agreed the builder, planter or sower has acted in
upon, the owner of the land does not good faith, a conflict of rights arises
automatically become the owner of the between the owners, and it becomes
improvement (Filipinas Colleges, Inc. vs. necessary to protect the owner of the
Timbang GR No. L-12812, September 29, improvements without causing injustice to
1959). the owner of the land. In view of the
impracticability of creating a state of forced
Rights of the builder in good faith: co-ownership, the law has provided a just
He has the right to be reimbursed the solution. (Depra v Dumlao GR No. L-
value of the improvement. He has the right 57348, May 16, 1985)
of retention until fully reimbursed.
The builder in good faith cannot be Accession Natural
compelled to pay rentals during the period 1. Alluvion or Alluvium (Art. 457-458)
of retention. He cannot be ordered to Increment which lands abutting rivers
vacate. gradually receive as a result of the current
The owner of the land cannot offset the of the waters
necessary and useful expenses with the
fruits received by the builder in good faith. Accretion - the process by which a
Otherwise, the security would be impaired. riparian land gradually and imperceptibly
(Rosales v Castellfort, Oct 15, 2005) receives addition made by the water to
which the land is contiguous
Right to choose:
The option to appropriate the building or Requisites of alluvion or accretion:
sell the land belongs to the landowner. a. the deposit or accumulation of soil or
The only right of the builder in good faith is sediment must be gradual and
the right to reimbursement, not to compel imperceptible (increase must be
the owner of the land to sell. The option is comparatively little)
not to buy but to sell. The option is given b. the accretion must result from the
to the landowner because his right is effects or action of the current of the
older, and because of the principle of water
accession, he is entitled to the thing c. that the land where accretion takes
attached to his land. (Quemuel v Olaes place is adjacent to the bank of the
GR No. L-11084, April 29,1961). Not even river
a declaration of the builder’s bad faith
shifts the option to him per Article 450 of Accretions belong to the riparian
the CC. (Germiniano, et al. v. CA et al. GR owners upon whose lands the alluvial
No. 120303, July 24, 1996) deposits were made (Agustin vs.
The so-called “workable solution” Intermediate Appellate Court GR Nos.
suggested in the case of Grana vs. CA 66075-76, July 5, 1990).
(GR No. L-49219, April 18, 1988), where
the Court ordered the owner of the land to Reasons for the rule:
sell to the builder, etc. the part of the land a. To compensate the owner for losses
intruded upon thereby depriving him of his which they may suffer by erosion.
San Beda College of Law
2010 Centralized Bar Operations
b. To compensate them for the burdens b. the segregation and transfer must be
of legal easements, which are sudden or abrupt
imposed upon them c. the portion of land transported must
c. Because it is the owner of the be known or identified
contiguous land who can utilize the
increment to the best advantage Note: The owner must remove (not
d. Because this is the only feasible merely claim) the transported portion
solution, since the previous owners within two years to retain ownership.
can no longer be identified. Art. 460 applies only to uprooted
trees. If a known portion of land with
An alluvion is automatically owned by trees standing thereon is carried away
the riparian owner from the moment by the current to another land, Art. 459
the soil deposit can be seen but the govern and the 2 year period applies.
additional area does not automatically In case of uprooted trees, the owner
become registered land just because retains ownership if he makes a claim
the lot which receives such accretion within 6 months. This does not include
is covered by a Torrens title. The trees which remain planted on a
riparian owner must register the known portion of land carried by the
additional area (Heirs of E. Navarro force of the waters. In the latter case,
vs. Intermediate Appellate Court GR the trees are regarded as accessions
No. 68188, October 13, 1997). of the land through gradual changes in
Failure to register the acquired alluvial the course of adjoining stream
deposit by accretion subjects said (Payatas-Estate Improvement Co. vs.
accretion to acquisition thru Tuason GR No. L-30067, March 23,
prescription by third persons 1929).
(Reynante vs. CA, GR No. 95907,
April 8, 1992). Alluvium and Avulsion Distinguished
A riparian owner cannot acquire the Alluvium Avulsion
addition to his land caused by special Gradual and Sudden or abrupt
works (e.g., dikes) expressly intended imperceptible process
by him to bring about accretion (i.e.,
Soil cannot be identified Identifiable and
for reclamation purposes) and not to
verifiable
protect his property from the
destructive force of the waters of the Belongs to the owner of Belongs to the owner
river (Republic vs. CA, GR No. L- the property to which it is from whose property it
attached was detached
43105, August 31, 1984).
Art 457 excludes all deposits caused
by human intervention. Alluvion must 3. Change of Course of Rivers (Art. 461–
be the exclusive work of nature. (Vda 462)
De Nazareno, et al. v. CA, GR. No.
98405, June 26, 1996 ) Requisites: (NAPA)
In the absence of evidence that the a. There must be a natural change in the
change in the course of the river was course of the waters of the river;
sudden, the presumption is that the otherwise, the bed may be the subject
change was gradual and was caused of a State grant (Reyes–Puno, p.54).
by alluvium and erosion (Payatas- b. The change must be abrupt or sudden
Estate Improvement Co. vs. Tuason c. The change must be permanent; the
GR No. L-30067, March 23, 1929). rule does not apply to temporary
overflowing
2. Avulsion (Art. 459) d. There must be abandonment by the
The transfer of a known portion of land owner of the bed i.e. a decision not to
from one tenement to another by the force bring back the river to the old bed.
of the current. The portion of land must be (Reyes–Puno, p.53).
such that it can be identified as coming
from a definite tenement. Once the river bed has been
abandoned, the owners of the invaded
Requisites: land become owners of the
a. the segregation and transfer must be abandoned bed to the extent as
caused by the current of a river, creek provided by Art. 462. No positive act is
or torrent needed on their part, as it is subject
11
thereto ipso jure from the moment the
mode of acquisition becomes evident.
It does not apply to cases where the
river simply dries up because there
are no persons whose lands are
occupied by the waters of the river.
Rules on Ownership:
a. If formed by the sea:
i. within territorial waters – State
ii. outside territorial waters – to the
first occupant
b. If formed in lakes, or navigable or
floatable rivers – State
c. If formed on non–navigable or non–
floatable rivers:
i. if nearer to one margin or bank –
to the nearer riparian owner
ii. if equidistant from both banks – to
the riparian owners, by halves
44
San Beda College of Law
2010 Centralized Bar Operations
Indemnity of the material, how paid (Art Exception: Certain personal properties like
471): vessels may be the object of quieting of title.
a. The delivery of the same kind and
value and in all other respects to that Nature:
employed; or Actions for quieting of title are neither suits in
b. The payment of the value, as per rem nor suits in personam. They are suits
expert appraisal. against a particular person in respect to the
res and the judgment will apply only to the
In determining the value, sentimental property in dispute. They are suits quasi in
value must be taken into account. rem (Realty Sales Enterprises, Inc. vs.
Intermediate Appellate Court GR No. L-67451,
Adjunction, Mixture and Specification September 28, 1987).
Distinguished
Requisites: (LCD-R)
Adjunction Mixture Specification
1. Plaintiff must have a legal or equitable title
Involves at Involves at May involve one to, or interest in the real property which is
least 2 things least 2 thing (or more) the subject matter of the action;
things but form is
2. There must be a cloud in such title;
changed
3. Such cloud must be due to some
Accessory Co- Accessory instrument, record, claim, encumbrance or
follows the ownership follows the proceeding which is APPARENTLY VALID
principal results principal
but is in truth invalid, ineffective, voidable
Things joined Things The new object or unenforceable, and is prejudicial to the
retain their mixed or retains or plaintiff’s title; and
nature confused preserves the 4. Plaintiff must return to the defendant all
may either nature of the
retain or original object.
benefits he may have received from the
lose their latter, or reimburse him for expenses that
respective may have redounded to his benefit.
natures
Classes:
QUIETING OF TITLE (Arts. 476–481) 1. Remedial (Action to quiet title) - the action
may be brought to remove a cloud or quiet
Cloud on title title to real property or an interest therein
A semblance of title, either legal or equitable, (Art. 476 par. 1)
or a claim or a right in real property, appearing 2. Preventive (Action quia timet) - to prevent
in some legal form but which is, in fact, invalid a future cloud (doubt) from being cast
or which would be inequitable to enforce upon the title to real property or an interest
therein (Art. 476 par. 2).
Action to quiet title
Prescriptive Period:
45
San Beda College of Law
Property
1. Plaintiff in possession – imprescriptible, tree is liable for damages under the law on
because the owner is given the continuing quasi-delict (Art. 2191, par. 3).
aid by the court to ascertain and determine
the nature of such claim and its effect on CO- OWNERSHIP
his title. He can wait until his possession is
disturbed and attacked before taking steps
to vindicate his right. (Coronel v IAC, GR That form of ownership which exists whenever
No. 70191, October 29, 1987) an undivided thing or right belongs to different
2. Plaintiff not in possession – 10 (ordinary) persons.
or 30 years (extraordinary) By the nature of co–ownership, a co–
owner cannot point to any specific portion
The action to quiet title does NOT apply: of the property owned in common as his
1. To questions involving interpretation of own because his share in it remains
documents intangible and ideal (Avila et al. vs. Sps.
2. To mere written or oral assertions of Barabat GR No. 141993, May 17, 2006).
claims, EXCEPT: The possession of a co–owner is like that
a. if made in a legal proceeding of a trustee and shall not be regarded as
b. if it is being asserted that the adverse to the other co–owner but in fact
instrument or entry in plaintiff’s favor is beneficial to all of them (Salvador vs. CA,
not what it purports to be G.R. No. 109910, April 5, 1995)
3. To boundary disputes
4. To deeds by strangers to the title UNLESS REQUISITES:
purporting to convey the property of the 1. Plurality of owners
plaintiff 2. The object of ownership must be a thing
5. To instruments invalid on their face or right which is undivided
6. Where the validity of the instrument 3. Each co–owner’s right must be limited
involves pure questions of law only to his ideal share of the physical
whole
Duty of plaintiff to restore benefits and
expenses (Art. 479): CHARACTERISTICS: (PSNCLG)
1. Restoration is required whenever the 1. Plurality of subjects/owners
complainant is shown to be morally bound 2. There is a single object which is not
to reimburse the defendant materially divided
2. Even if the debt is not enforceable by 3. There is no mutual representation by the
reason of the statue of limitations, co–owners
payment may be required by the court 4. It exists for the common enjoyment of the
co–owners
Reason: “He who seeks equity must do 5. It has no distinct legal personality
equity.” 6. It is governed first of all by the contract of
the parties; otherwise, by special legal
RUINOUS BUILDINGS AND TREES IN provisions, and in default of such
DANGER OF FALLING (Arts. 482–483): provisions, by the provisions of Title III on
co–ownership
As to buildings:
The complainant must show that his SOURCES: (C2LOST)
property is adjacent to the dangerous 1. Contract
construction, or must have to pass by 2. Chance
necessity in the immediate vicinity. 3. Law
Lack of knowledge of the falling condition 4. Occupation
of the structure will not excuse the owner 5. Succession
from liability. 6. Testamentary disposition or donation inter
vivos
If the damage is caused by defects in the
construction, then the builder is
Co–ownership and Partnership
responsible for the damages.
Distinguished
Co–Ownership Partnership
As to trees: Can be created Can be created
If by the the fall of the tree, occasioned by without the only by contract,
the inaction or negligence of the owner, Creation
formalities of a express or
someone has been hurt, the owner of the contract implied
Personality Has no juridical Has juridical
46
San Beda College of Law
2010 Centralized Bar Operations
or legal
personality 3. To the benefits of prescription:
distinct from the prescription by one co–owner benefits
personality
partners all.
Purpose is 4. Repairs and taxes: to compel the
collective Purpose is to
Purpose others to share in the expenses of
enjoyment of obtain profits
the thing preservation even if incurred without
Co–owner can prior notice.
dispose of his A partner, unless The co–owner being compelled
shares without authorized, may exempt himself from the
the consent of cannot dispose payment of taxes and expenses
Disposal of the others with of his share and by renouncing his share
Share the substitute equivalent to such taxes and
transferee another as a expenses. The value of the
automatically partner in his
becoming a co– place.
property at the time of the
owner. renunciation will be the basis of
There is no A partner can the portion to be renounced.
Mutual 5. Alterations: to oppose alterations
mutual generally bind
Agency
representation. the partnership. made without the consent of all, even
Distribution of if beneficial.
profits must be Distribution of Alteration is an act by virtue of which a
Distribution proportional to profits is subject co–owner changes the thing from the
of Profits the respective to the stipulation state in which the others believe it
interests of the of the parties
should remain, or withdraws it from
co–owners
A co– the use to which they desire it to be
ownership is Death or intended.
Effect of 6. To protest against seriously prejudicial
not dissolved incapacity
Death or decisions of the majority
by the death or dissolves the
Incapacity
incapacity of a partnership 7. Legal redemption: to be exercised
co–owner. within 30 days from written notice of
No public sale of an undivided share of another
instrument May be made in co–owner to a stranger
needed even if any form except
Formal 8. To defend the co–ownership’s interest
real property is when real
Requisites
the object of property is
in court
the co– contributed 9. To demand partition at any time
ownership Partition is the division between 2 or
An agreement more persons of real or personal
There may be
to keep the property which they own in common
agreement as to
Agreement thing undivided so that each may enjoy and possess
a definite term
as to Period for a period of his sole estate to the exclusion of and
without limit set
more than 10 without interference from others.
by law.
years is void. (Avila vs. Sps. Barabat GR No.
141993, March 17, 2006). An action
RULES: for partition is at once an action for
A. Rights of each co–owner as to the thing declaration of co-ownership and for
owned in common: (USBRAP–LDP) segregation and conveyance of a
1. To use the thing owned in common determinate portion of the properties
Limitations: involved (Balo v. CA, G.R. No.
a. use according to the purpose for 129704)
which it was intended
b. interest of the co–ownership must
General Rule: Partition is
not be prejudiced
demandable by any of the co–
c. other co–owners must not be
owners as a matter of right at any
prevented from using it according
time.
to their own rights
2. To share in the benefits and charges
Exceptions: (SCLUPA)
in proportion to the interest of each.
a. When there is a stipulation against
Any stipulation to the contrary is it; but not to exceed 10 years.
void. b. When the condition of indivision is
imposed by the donor or testator;
but not to exceed 20 years.
47
San Beda College of Law
Property
48
San Beda College of Law
2010 Centralized Bar Operations
ownership over the said property. areas are opposed to restoration of the
Redemption duly made within the period projects;
prescribed by law inures to the benefit of 3. When the project has been in existence for
the co-ownership and does not put an end more than 50 years, that it is obsolete and
to its existence (Mariano vs CA, G.R. No. uneconomic, and the condominium
101522, May 28, 1993). owners holding in aggregate more than
50% interest in the common areas are
EXTINGUISHMENT OF CO–OWNERSHIP opposed to restoration, remodeling or
(CALSTEP): modernizing;
1. Consolidation or merger in one co–owner 4. When the project or a material part thereof
2. Acquisitive prescription in favor of a third has been condemned or expropriated and
person or a co–owner who repudiates the the project is no longer viable, or that the
co–ownership condominium owners holding in aggregate
3. Loss or destruction of property co–owned more than 70% interest in the common
4. Sale of property co–owned areas are opposed to the continuation of
5. Termination of period agreed upon by the the condominium regime;
co–owners 5. When conditions for partition by sale set
6. Expropriation forth in the declaration of restrictions duly
7. Judicial or extra–judicial partition registered have been met.
49
San Beda College of Law
Property
50
San Beda College of Law
2010 Centralized Bar Operations
51
San Beda College of Law
Property
52
San Beda College of Law
2010 Centralized Bar Operations
53
San Beda College of Law
Property
Usufruct and Lease Distinguished d. To lease the thing, generally, for the
Usufruct Lease same or shorter period as the
Nature of Always a real Generally a usufruct.
Right right personal right e. To improve the thing without altering
its form and substance
Person creating
Lessor may f. Right to set–off the improvements he
the usufruct
not be the may have made on the property
Creator of should be the
owner,ex. against any damage to the same
Right owner or his
Sub-lessor, g. To retain the thing until he is
duly authorized
usufructuary
agent reimbursed for advances for
Generally extraordinary expenses and taxes on
May be created created by the capital
by law, by contract h. To collect reimbursements from the
contract, by will owner for indispensable extraordinary
Origin
of the testator, Exception: by repairs, taxes on the capital he
or by law, i.e. advanced, and damages caused to
prescription implied new him.
lease i. To remove improvements made by
As a rule, him if the same will not injure the
Lease
usufruct covers property
generally
Extent of all the fruits and
refers to uses
Enjoyment all the uses and
only,i.e. those 2. As to the usufruct itself:
benefits of the
entire property.
stipulated a. To mortgage the right of usufruct
except parental usufruct
Involves a more Lease b. To alienate the usufruct
or less passive involves a
c. To bring action and oblige owner
owner who more active
allows the owner or thereof to give him proper authority
Cause and necessary proof in a usufruct to
usufructuary to lessor who
enjoy the object makes the recover property or a real right
given in lessee to
usufruct enjoy 3. At the expiration of the usufruct:
Lessee is not a. To collect reimbursement from the
Usufructuary generally owner:
pays for under i. For indispensable extraordinary
Repairs and
Taxes
ordinary repairs obligation to repairs made by the usufructuary
and taxes on undertake ii. For taxes on the capital advanced
the fruits repairs or pay by the usufructuary
taxes iii. For damages caused by the
usufructuary
SPECIAL USUFRUCTS: b. To retain the thing until reimbursement
1. Of pension or income (Art. 570) is made
2. Of property owned in common (Art. 582) c. To remove improvements made by
3. Of cattle (livestock) (Art. 591) him, but without injuring the property
4. On vineyards and woodlands (Art. 575–
576) 4. Other Rights:
5. On a right of action (Art. 578) a. Right to make use of the land and
6. On mortgaged property (Art. 600) materials, when building forming part
7. Over the entire patrimony (Art. 598) of the usufruct on immovable has
8. Over things which gradually deteriorate been destroyed in any manner (Same
(Art. 573) rule if Usufruct is constituted on
9. Of consumable property (Art. 574) building only)
b. If usufructuary shares in insurance of
RIGHTS OF THE USUFRUCTUARY tenement in usufruct, and it was lost,
1. As to the thing and its fruits: he shall continue in enjoyment of the
a. To receive and benefit from the fruits new one if one be constructed OR
b. To enjoy any increase through receive interest on the insurance
accessions and servitudes indemnity.
c. To the half of the hidden treasure he
accidentally finds In a usufruct, only the jus utendi and jus
fruendi over the property are transferred to
54
San Beda College of Law
2010 Centralized Bar Operations
the usufructuary. The owner of the b. The net product shall be delivered to
property maintains the jus disponendi or the usufructuary
the power to alienate, encumber, c. Usufructuary cannot collect credits
transform, and even destroy the same due or make investments of the capital
(Hemedes vs. CA, GR No. 107132, without the consent of the owner or of
October 8, 1999). the court until the bond is given
Under the Massachusetts Rule, a stock
dividend is considered part of the capital B. During the usufruct:
and belongs to the remainderman; while 1. To take care of the property
under the Pennsylvania Rule, all earnings 2. To replace with the young thereof
of a corporation, when declared as animals that die or are lost in certain
dividends in whatever form, made during cases when the usufruct is constituted
the lifetime of the usufructuary, belong to on flock or herd of livestock
the latter. The Pennsylvania Rule is more 3. To make ordinary repairs
in accord with our laws than the 4. To notify the owner of urgent extra–
Massachusetts Rule (Bachrach vs. Seifert ordinary repairs
and Elianoff, GR No. L-2659, October 12, 5. To permit works and improvements by
1950). the naked owner not prejudicial to the
Corollary to the right to all the rents, to usufruct
choose the tenant, and to fix the amount of 6. To pay annual taxes and charges on
the rents, a usufructuary of the rents has the fruits
the right to choose himself as the tenant, 7. To pay interest on taxes on capital
provided that the obligations he has paid by the naked owner
assumed towards the owner of the 8. To pay debts when the usufruct is
property are fulfilled (Fabie vs. Gutierrez constituted on the whole patrimony
David, GR No. L-123, December 12, 9. To secure the naked owner’s or
1945). court’s approval to collect credits in
certain cases
OBLIGATIONS OF THE USUFRUCTUARY 10. To notify the owner of any prejudicial
A. Before exercising the usufruct: act committed by third persons
1. To make an inventory of the property 11. To pay for court expenses and costs
2. To give a bond, EXCEPT regarding usufruct
a. When no prejudice would result
b. When the usufruct is reserved by C. At the termination of the usufruct:
the donor or parents 1. To return the thing in usufruct to the
c. In cases of caucion juratoria owner unless there is a right of
where the usufructuary, being retention
unable to file the required bond or 2. To pay legal interest on the amount
security, files a verified petition in spent by the owner for extraordinary
the proper court asking for the repairs or taxes on the capital
delivery of the house and furniture 3. To indemnify the owner for any losses
necessary for himself and his due to his negligence or of his
family without any bond or transferees
security.
i. Takes an oath to take care of RIGHTS OF THE OWNER DURING THE
the things and restore them USUFRUCT:
ii. Property cannot be alienated 1. He retains title
or leased because this would 2. He may alienate the property, but he may
mean that the usufructuary not:
does not need it a. Alter the form or substance of the
thing
Effects of failure to post bond: b. Do anything prejudicial to the
a. Owner shall have the following usufructuary
options: 3. He may construct buildings, make
i. receivership of realty, sale of improvements and plantings, provided:
movables, deposit of securities, or a. The value of the usufruct is not
investment of money; OR impaired
ii. retention of the property as b. The rights of the usufructuary are not
administrator prejudiced
55
San Beda College of Law
Property
56
San Beda College of Law
2010 Centralized Bar Operations
57
San Beda College of Law
Property
58
San Beda College of Law
2010 Centralized Bar Operations
59
San Beda College of Law
Property
Rebuttal of Presumption:
1. Title Restrictions on openings in one’s own
2. By contrary proof wall when contiguous (less than 2m) to
3. By signs contrary to the existence of another’s tenement:
the servitude (Arts. 660 & 661) 1. It cannot exceed 30cm each side
2. Openings must be at the height of the
If the signs are contradictory, they joists, near the ceiling (Choco vs.
cancel each other Santamaria, GR No. 6076, December
29, 1911).
Rights of Part Owners: 3. The abutting owner may:
1. To make use of the wall in proportion a. Close the openings if the wall
to their respective interests, resting becomes a party wall
buildings on it or inserting beams up to b. Block the light by building or
one–half of the wall’s thickness erecting his own wall unless a
2. To increase the height of the wall servitude is acquired by title or
a. At his expense prescription
b. Upon payment of proper indemnity c. Ask for the reduction of the
c. To acquire half interest in any opening to the proper size
increase of thickness or height,
paying a proportionate share in Restrictions as to views:
the cost of the work and of the 1. Direct views: the distance of 2m
land covered by the increase between the wall and the boundary
must be observed
Obligations of Each Part–Owner: 2. Oblique views: (walls perpendicular or
1. To contribute proportionately to the at an angle to the boundary line) must
repair and maintenance unless he not be less than 60cm from the
renounces his part–ownership boundary line to the nearest edge
2. If one part-owner raises the height of of the window
the wall, he must:
a. Bear the cost of maintenance of Any stipulation permitting lesser
the additions distances is void (Art. 673).
b. Bear the increased expenses of
preservation Modes of Acquisition
c. Bear the cost of construction 1. By title
d. Give additional land, if necessary, 2. By prescription
to thicken the wall a. Positive – counted from the time
of the opening of the window, if it
I. Easement of Light and View (Arts. 667– is through a party wall
673) b. Negative – counted from the
1. Easement of Light (jus luminum) – formal prohibition on the servient
right to admit light from the owner.
neighboring estate by virtue of the
opening of a window or the making of Mere non–observance of distances
certain openings. prescribed by Art. 670 without formal
prohibition, does not give rise to
Requisites: prescription.
a. Opening must not be greater
than 30 centimeters square, J. Drainage of Buildings (Arts. 674–676)
made on the ceiling or on the wall; 1. Easement of drainage of buildings –
and the right to divert or empty the rain
b. There must be an iron grating waters from one’s own roof or shed to
the neighbor’s estate either drop by
2. Easement of view (jus prospectus) drop or through conduits
– the right to make openings or 2. Easement to receive falling rain
windows, to enjoy the view through waters – deals not with legal
the estate of another and the power to easement but with a voluntary
prevent all constructions or work easement to receive rain water falling
which would obstruct such view or from the roof of an adjoining building
make the same difficult. It necessarily
includes easement of light.
60
San Beda College of Law
2010 Centralized Bar Operations
61
San Beda College of Law
Property
62
San Beda College of Law
2010 Centralized Bar Operations
63
San Beda College of Law
Property
64
San Beda College of Law
2010 Centralized Bar Operations
the donor, and as an act of liberality and 3. Made to a public officer or his/her spouse,
generosity” is sufficient cause for a descendants or ascendants in
donation (Quilala vs. Alcantara, GR No. consideration of his/her office;
132681, December 3, 2001). 4. Made to the priest who heard the
confession of the donor during the latter’s
Donation Inter Vivos and Donation Mortis last illness, or the minister of the gospel
Causa Distinguished who extended spiritual aid to him during
Donation Inter Vivos Donation Mortis Causa the same period;
Takes effect Takes effect upon the 5. Made to the relatives of such priest, etc.
independently of the death of the donor within the 4th degree, or to the church to
donor’s death which such priest belongs;
Made in contemplation of
6. Made by a ward to the guardian before the
his death without the
Made out of donor’s
intention to lose the thing approval of accounts;
pure generosity 7. Made to an attesting witness to the
or its free disposal in
case of survival execution of donation, if there is any, or to
Title conveyed to the Title conveyed upon the spouse, parents, or children, or
donee before the donor’s death anyone claiming under them.
donor’s death 8. Made to a physician, surgeon, nurse,
Valid if donor survives Void if donor survives health officer or druggist who took care of
donee donee the donor during his/her last illness;
Generally irrevocable Always revocable at 9. Made by individuals, associations or
during donor’s lifetime anytime and for any
corporations not permitted by law to make
except for grounds reason before the
provided by law (Arts. donor’s death donations; and
760, 765) 10. Made by spouses to each other during the
Must comply with the Must comply with the marriage or to persons of whom the other
formalities required by formalities required by spouse is a presumptive heir.
Arts. 748 and 749 of law for the execution of
the Code wills FORMS OF DONATIONS:
Must be accepted by 1. Donations of movable property:
Can only be accepted
the donee during his a. If donation is oral, simultaneous
after the donor’s death
lifetime
delivery of property donated is
Subject to donor’s tax Subject to estate tax
required if the value is P5,000.00 or
less. Acceptance may be oral or
The title given to a Deed of Donation is written.
NOT the determinative factor which makes b. If donation is in writing, simultaneous
the donation “inter vivos” or “mortis delivery of property donated is not
causa.” Whether a donation is inter vivos required regardless of value.
or mortis causa depends upon the nature Acceptance may be oral or written.
of the disposition made (Reyes vs. c. If the value exceeds P5,000.00, the
Mosqueda, GR No. 45262, July 23, 1990). donation and acceptance must be in
Art. 729 speak of donations in praesenti writing. Simultaneous delivery of
which take effect during the lifetime of the property donated is not required.
donor but the property shall be delivered 2. Donation of immovable property:
only after the donor’s death. Such a. Must be in a public instrument
donations are inter vivos although the specifying the property donated and
subject matter is not delivered at once, or the burdens assumed by donee,
the delivery is to be made post mortem, regardless of value
which is a simple matter of form and does b. Acceptance must be either:
not change the nature of the act (Vita vs. i. in the same instrument
Montanano GR No. L-50553, February 19, ii. in another public instrument,
1991). notified to the donor in authentic
form, and noted in both deeds
DONATIONS PROHIBITED BY LAW: Expression of gratitude to the donor
1. Made by persons guilty of adultery or without express acceptance was held a
concubinage at the time of donation (Art. sufficient acceptance (Cuevas vs. Cuevas
739); GR No. L-8327, December 14, 1955).
2. Made between persons found guilty of the
A donation of immovable to be valid must
same criminal offense in consideration
be in a public instrument. Even if void, it
thereof;
can be the basis of acquisitive prescription
for as long as there is adverse possession
65
San Beda College of Law
Property
66
San Beda College of Law
2010 Centralized Bar Operations
67
San Beda College of Law
Property
Period Of
Actions
Prescription
Written contract
Obligation created by law Within 10 yrs.
Judgment
Oral contract
Within 6 yrs.
Quasi-contract
Injury to the rights of the
plaintiff
Quasi-delict
Revoke or reduce donation
based on the birth,
appearance or adoption of a
child Within 4 yrs.
Revoke donation based on
non-compliance with a
condition
Annul a contract
Rescind a rescissible
contract
Forcible entry and detainer
For defamation
Recover possession de
facto
Revoke a donation on the
ground of ingratitude Within 1 yr.
Rescind or recover damages
if immovable is sold with
non-apparent burden or
servitude
Enforce warranty of solvency
in assignment of credits
INTERRUPTION OF PRESCRIPTION OF
ACTIONS:
1. Filing of an action in court;
2. Written extrajudicial demand by the
creditor;
3. Written acknowledgment of the debt by the
debtor.
68