PROPERTY Prof.

Labitag

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TABLE OF CONTENTS
I. DEFINITION OF PROPERTY .................................................................................................................................. 3 A. Classification under the Civil Code ............................................................................................................................................. 3 B. By Ownership............................................................................................................................................................................ 4 C. Other Classifications.................................................................................................................................................................. 5 II. OWNERSHIP ..................................................................................................................................................... 7 A. Definition.................................................................................................................................................................................. 7 B. Bundle of Rights included in Ownership ..................................................................................................................................... 7 C. Other Specific Rights found in the Civil Code .............................................................................................................................. 7 D. Limitations of Real Right of Ownership ...................................................................................................................................... 8 III. RIGHTS OF ACCESSION .................................................................................................................................... 10 A. Concept ...................................................................................................................................................................................10 B. General Principles of Accession ................................................................................................................................................10 rd C. Obligations of Receiver of Fruits to Pay Expenses by 3 person in producti on, gathering and preservation ................................10 D. Kinds of Accession....................................................................................................................................................................10 1. Accession Discreta ...............................................................................................................................................................10 2. Accession Continua..............................................................................................................................................................11 Over Immovables .....................................................................................................................................................................11 Over Movables.........................................................................................................................................................................12 IV. QUIETING OF TITLE ........................................................................................................................................ 14 A. Differences between Action to Quiet Title and Action: ..............................................................................................................14 B. Prescription of Action to Quiet Title ..........................................................................................................................................14 C. Who are Entitled to Bring Action?.............................................................................................................................................14 D. Notes.......................................................................................................................................................................................14 V. CO-OWNERSHIP............................................................................................................................................... 15 A. Definition.................................................................................................................................................................................15 B. Characteristics of co-ownership................................................................................................................................................15 C. Differences between Co-ownership and Joint Tenancy..............................................................................................................15 D. Differences between Co-ownership and Partnership .................................................................................................................15 E. Source of Co-ownership ...........................................................................................................................................................15 F. Rights of each co-owner as to the thing owned in common .......................................................................................................16 G. Implications of co-owners right over his ideal share ..................................................................................................................17 H. Rules on co-ownership not applicable to conjugal partnership of gains or absolute community of property ...............................18 I. Special rules on co-ownership from provisions of Condominium Law (Act No. 4726)..................................................................18 J. Extinguishment of co-ownership ..............................................................................................................................................18 VI. POSSESSION ................................................................................................................................................... 20 A. Definition and Concept.............................................................................................................................................................20 B. Essential Requisites of Possession.............................................................................................................................................20 C. Degrees of Holding of Possession .............................................................................................................................................20 D. Cases of Possession ..................................................................................................................................................................20 E. What things or rights may be possessed ...................................................................................................................................20 F. What may not be possessed by private persons ........................................................................................................................21 G. Acquisition of Possession..........................................................................................................................................................21 H. Effects of Possession ................................................................................................................................................................22 I. Effect of possession in the concept of an owner........................................................................................................................23 J. Presumptions in favor of the possessor.....................................................................................................................................23 K. Possession may be lost by ........................................................................................................................................................24 VII. USUFRUCT .................................................................................................................................................... 25 A. Concept ...................................................................................................................................................................................25 B. Historical considerations ..........................................................................................................................................................25 C. Characteristics of Usufruct .......................................................................................................................................................25 D. Usufruct distinguished from lease; from servitude ....................................................................................................................25 E. Classes of Usufruct ...................................................................................................................................................................25 F. Rights of Usufruct ....................................................................................................................................................................26 G. Rights of Naked Owner.............................................................................................................................................................26 H. Obligations of Usufructuary......................................................................................................................................................27 I. Special Cases of Usufruct ..........................................................................................................................................................28 J. Extinguishment of Usufruct ......................................................................................................................................................28

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VIII. EASEMENTS OR SERVITUDES ......................................................................................................................... 31 A. Definition.................................................................................................................................................................................31 B. Essential feature of easements/real servitudes/praedial servitudes...........................................................................................31 C. Classification of Servitudes .......................................................................................................................................................31 D. General rules relating to servitudes ..........................................................................................................................................32 E. Modes of acquiring easements .................................................................................................................................................32 F. Rights and obligations of owners of dominant and servient estates ...........................................................................................32 G. Modes of extinguishment of easements ...................................................................................................................................33 H. Legal Easements.......................................................................................................................................................................34 BOOK III DIFFERENT MODES OF ACQUIRING OWNERSHIP ..................................................................................... 36 Mode and Title Differentiated............................................................................................................................................................36 Modes of Acquiring Ownership..........................................................................................................................................................36 Occupation .......................................................................................................................................................................................37 Intellectual creation ..........................................................................................................................................................................37 DONATION ......................................................................................................................................................... 38 Nature of donation............................................................................................................................................................................38 Requisites of donation.......................................................................................................................................................................38 Kinds of donation ..............................................................................................................................................................................38 Who may not give or receive donations .............................................................................................................................................39 Who may give or receive donations ...................................................................................................................................................39 Acceptance of donation.....................................................................................................................................................................39 Form of donations .............................................................................................................................................................................39 What may be donated .......................................................................................................................................................................39 Effect of donation..............................................................................................................................................................................40 Revocation and Reduction of Donations.............................................................................................................................................41 LEASE ................................................................................................................................................................ 44 A. General characteristics of every lease .......................................................................................................................................44 B. Kinds of leases .........................................................................................................................................................................44 C. Lease of things .........................................................................................................................................................................45

PROPERTY Prof. Labitag

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I. DEFINITION OF PROPERTY
PROPERTY
y y

Is an economic concept, meaning a mass of things useful to human activity and which are necessary to life, for which reason they may be organized and distributed in one way or another, but, always for the good of the main. In order that a thing may be considered as property: o Utility capacity to satisfy human wants o Individuality or Substantivity - an autonomous or separate existence; materials composing a thing are not thing in themselves. o Appropriability or susceptibility to appropriation

A.

Classification under the Civil Code

1.

Immovable or Real Property a. By Nature those which cannot be moved from place to place

Art 415, Par 1 Lands, buildings, roads and constructions of all kinds adhered to the soil. Art 415, Par 8 b. Art 415, Par 2 Art 415, Par 3 Art 415, Par 7 c. Art 415, Par 4 Art 415, Par 5 Art 415, Par 6 Art 415, Par 9 d. By Analogy By Destination By Incorporation

Art 415, Par 10 Movables or Personal Property Art 416 Art 417 DAVAO SAWMILL v CASTILLO () BERKENKOTER v CU UNJIENG () LOPEZ v OROSA () TUMALAD v VICENCIO () ASSOCIATED INSURANCE v IYA () MAKATI LEASING v WEAREVER () BD. OF ASSESSMENT APPEALS v MERALCO () MERALCO v BD. OF ASSESSMENT APPEALS () MERALCO v BD. OF ASSESSMENT APPEALS () CALTEX v BD. OF ASSESSMENT APPEALS () BENGUET CORP. v BD. OF ASSESSMENT APPEALS () 2. Importance and Significance of Classification From point of view of:

i. ii.

Criminal Law Form of contracts involving movables or immovables

PROPERTY Prof. Labitag

Prescription Venue/Jurisdiction Taxation Double Sales under Art 1544 Art 1544 vii. Preference of Credits viii. Causes of Action to Recover 3. Differences between Real Rights and Personal Rights REAL RIGHTS Power belonging to a person over a specific thing, without a passive subject individually determined against whom such right may be personally exercised Gives to a person direct and immediate juridical power over the thing, which is susceptible of being exercised, not only against a determinate person, but against the whole world. 1) Subject and object connected by a relation of ownership of the former over the latter 2) A general obligation or duty of respect for such relation, there being no particular passive subject 3) Effective actions recognized by law to protect such relation against anyone who may want to disturb it iii. iv. v. vi.

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Point of comparison Definition

PERSONAL RIGHTS Power belonging to one person to demand to another, as a definite passive subject, the fulfillment of a prestation to give, to do or not to do More properly called right of obligation or simply obligation

Elements

1)

Also known as Number of persons involved in the juridical relation Object of the juridical relation By the manner in which the will of the active subject affects the thing related o it By the causes of creating the juridical relation By the methods of extinguishment of the juridical relation By the nature of the actions arising from them

Jus in re Active subject 1 Passive subject - the rest of the world without individual determination Generally a corporeal thing Generally affects the thing directly

Two subjects: active and passive (bound to perform prestation incumbent upon him by reason of a juridical tie which binds him to the active subject), who are determined and specified rd 2) General obligation on the part of 3 persons to respect the relation between the active and passive subjects 3) Effective actions in favor of the active subject against the passive subject for the performance of the prestation by the latter or so that the relation between them may produce its natural and juridical effects Jus ad rem Definite active subject Definite passive subject Intangible thing, i.e. the prestation of the debtor Indirectly through the prestation of the debtor

By mode and title

By title alone

Extinguished by the loss or destruction of the thing

Not extinguished by the loss or destruction of the thing

B.

Classification by Ownership

1. 2.

Res Nullius Public Dominion cf. Patrimonial Property of State

Art 419 Art 420 Art 421

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Art 422 Art 424 a. Art 420 Art 421 Art 422 i. ii. iii. For public use For public service For development of national wealth Property of State

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LA BUGAL B LAAN TRIBAL ASSN. v RAMOS (2004) ON RECONSIDERATION (2005) CHAVEZ v PEA AMARI (2002) ON RECONSIDERATION (2003) USERO v CA (2006) b. Art 424, Par 1 i. 3. For public use including public works for public service Private Property a. Patrimonial Property of State Art 424 Patrimonial Property of Municipal Corporations Art 424, Par 2 Private Property of Private Persons Art 425, Par 2 Property of Municipal Corporations

b.

c.

TANTOCO v MUNICIPAL COUNCIL () ZAMBOANGA DEL NORTE v CITY OF ZAMBOANGA () SALAS v JARENCIO () CEBU ACETYLENE v BERCILLES () MUNICIPALITY OF SAN MIGUEL v FERNANDEZ () GOVERNMENT v CABANGIS () CHAVEZ v PEA AMARI (2002) ON MOTION FOR RECONSIDERATION (2003) 4. Effect and Significance of Classification of Property as Property of Public Dominion a. b. c. d.
C.

Property is outside the commerce of man Property cannot be the subject of acquisitive prescription Property cannot be attached or levied upon in execution Property cannot be burdened with a voluntary easement

Other Classifications

1.

By their physical existence a. Corporeal those which are manifest to the senses, which we may touch or take, which exist in space and have a body, whether animate or inanimate b. Incorporeal personal prestations or acts or services productive of utility. They are not manifest to the senses but are conceived only by the understanding. They must combine three requisites:

PROPERTY Prof. Labitag

i. External manifested act ii. Personal done by the debtor himself iii. Possible when it can be done both in nature and in law 2. By their autonomy or dependence a. Principal b. Accessory By their subsistence after use a. Consumable Art 418 (1) b. Non-consumable Art 418 Differentiated from Fungible or Non-fungible c. Deteriorable or non-deteriorable By reason of their susceptibility to division a. Divisible b. Indivisible By reason of designation a. Generic b. Specific Existence in point of time a. Present b. Future Contents and constitution a. Singular i. Simple ii. Compound b. Universal Susceptibility to appropriation a. Non-appropriable b. Appropriable i. Already appropriated ii. Not yet appropriated Susceptibility to commerce a. Within the commerce of man b. Outside the commerce of man

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3.

4.

5.

6.

7.

8.

9.

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II. OWNERSHIP
A. Definition

OWNERSHIP
y

J. B. L. Reyes: It is independent right of exclusive enjoyment and control of a thing for the purpose of deriving therefrom all the advantages required by the: o Reasonable needs of the owner (or holder of the right) and o Promotion of the general welfare But subject to the restrictions imposed by: o Law o Rights of others Scialoja: It is a relation in private law by virtue of which is a thing (or property right) pertaining to one person is completely subjected to his will in everything not prohibited by public law or the concurrence with the rights of another

B.

Bundle of Rights included in Ownership

Art 429 Jus Utendi y definition Jus Fruendi y definition Jus Abutendi y definition Jus Disponendi y definition Jus Vindicandi y definition
C. Other Specific Rights found in the Civil Code

1.

Right to exclude; self-help; Doctrine of Self-help Art 429 ELEMENTS OF SELF-HELP Right to enclose or fence Art 430 Right to receive just compensation in case of expropriation Art 435 Right to hidden treasure Art 438 Art 439 Right to accession Art 440 Right to recover possession and/or ownership (Jus Vindicandi) a. Available actions to Recover Possession/Ownership i. Immovable property 1) Accion reivindicatoria

2.

3.

4.

5.

6.

PROPERTY Prof. Labitag

2) 3) 4) Accion publiciana Forcible entry Unlawful detainer

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HILARIO v SALVADOR (2005) SAMPAYANG v CA (2005) SANTOS v AYON (2005) GANILA v CA (2005) ROSS RICA SALES CENTER v SPS. ONG (2005) PERALTA-LABRADOR v BUARIN (2005) ii. Movable property 1) Replevin b. Requisites for recovery Art 434 i. Identify the property

SERINA v CABALLERO (2004) ii. Prove his right of ownership rely on the strength of his evidence not on the weakness of defendant PEREZ v MENDOZA (1975) DIZON v CA (1993)
D. Limitations of Real Right of Ownership

1.

General Limitation a. b. c. Police power Taxation Eminent domain

2. 3.

Specific Limitation Limitation from Scattered provisions of CC Art 431 Art 432 Art 2191 Art 670 Art 677 Art 678 Art 679 Art 649 Art 652 Art 637 Art 676 Art 644 Art 684 Art 685 Art 686 Art 687

US v CAUSBY ( ) LUNOD v MENESES ( ) a. Latin Maxim: Sic Utere Tuo Ut Alienum Non Laedas Art 431 Act in State of Necessity

b.

PROPERTY Prof. Labitag

Art 432

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PROPERTY Prof. Labitag

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III. RIGHTS OF ACCESSION

A. Concept Art 440 The ownership of property gives the right by accession to everything which is produced thereby, or which is incorporated or attached thereto, either naturally or artificially.

DEFINITIONS OF ACCESSION y Tolentino: Right by virtue of which the owner of a thing becomes the owner of everything that the thing may produce or which may be inseparably united or incorporated thereto, either naturally or principally. y J. B. L. Reyes: Extension of ownership over a thing to whatever is incorporated thereto naturally or artificially (without or with labor of man) Incorporation means a stable union or adherence, not mere juxtaposition Accession is one of the bundle of rights of ownership and is not a mode of acquiring property It does not depend upon a new title
B. General Principles of Accession

1.

Applicable to BOTH accession discreta and accession continua a. b. Accessory follows the principal No one shall be unjustly enriched at the expense of another

2.

Applicable to accession continua alone a. Whatever is built, planted or sown on the land of another and the improvements or repairs made thereon, belongs to the owner of the land, subject to the provisions of the following articles. Art 445 All works, sowing and planting are presumed made by owner and at his expense, unless the contrary is proved. Art 446 Accessory incorporated to principal such that it cannot be separated without injury to work constructed or destruction to plantings, construction or works. Art 447 Bad faith involves liability for damages and other dire consequences. Bad faith of one party neutralizes bad faith of the other. Art 453

b.

c.

d. e.

3.

Applicable to accession discreta alone a. Ownership of fruits To owner of principal thing belongs the NATURAL, INDUSTRIAL and CIVIL fruits Art 441 EXCEPTIONS: i. Possession in good faith ii. In usufruct iii. In lease iv. In antichresis

C.

Obligations of Receiver of Fruits to Pay Expenses by 3rd person in production, gathering and preservation

Art 443
D. Kinds of Accession 1. Accession Discreta (Fruits)

Art 440

PROPERTY Prof. Labitag

a. b. c. Natural Industrial Civil

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BACHRACH v SEIFERT ( ) BACHRACH v TALISAY ( )

2. Accession Continua

Over Immovables

1. a.

Artificial or Industrial Building, Planting, Sowing

Owner is BPS using material of another (LO-BPS and MM) Art 447
y y

In good faith In bad faith

b.

BPS builds, plants or sows on another s land using his own material (LO and BPS-MM) Art 448 The Art 449 The Art 450 The Art 451 The Art 452 The Art 453 The Art 454 The
y

BPS in good faith Art 448 The BPS in bad faith Art 449 The Art 450 The Art 451 The Options open to owner of the land 1) To acquire building, planting and sowing  BP has right of retention Retains possession without paying rental Not entitled to fruits; his rights are the same as an antichretic creditor To sell land to BP OR to lease land to S  BP may refuse if value of land considerably more than BP; then forced lease by LO and BP  BPS in bad faith

i.

2)

ii.

Rights of BPS in bad faith Art 452 The Art 443 The Landowner in bad faith but BPS in good faith Art 454 Art 447 Reason for adverting to rule in Art 447

c.

BPS builds, plants or sows on another s land with materials owned by 3rd persons Art 455 The N.B.: Good faith does not exclude negligence Art 456 The

PROPERTY Prof. Labitag

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BERNARDO v BATACLAN ( ) IGNACIO v HILARIO ( ) SARMIENTO v AGANA ( ) DEPRA v DUMLAO ( ) TECHNOGAS PHIL v CA ( ) ORTIZ v KAYANAN ( ) GEMINIANO v CA ( ) PLEASANTVILLE DEV T CORP v CA ( ) FELICES v IRIOLA ( ) SPOUSES NUGUID v CA (1993) SPOUSES NUGUID v CA (2005) 2. a. Natural (Accession Continua Natural)

Alluvium Art 457 The

REPUBLIC v CA ( ) GRANDE v CA ( ) MENESES ( ) b. Avulsion (Art 459-460)

NAVARRO ( ) c. Change of Course of River (Art 461-463) Art 461 The Art 462 The Art 463 The

BAES v CA ( ) BINALAY v MANALO d. Formation of Islands Art 461 The Art 462 The Art 463 The Art 464 The Art 465 The See PD 1067, Water Code 3. Reverse Accession Art 120, FC The Art 321, CC The

Over Movables

1. a. b.

Conjunction and Adjunction

Inclusion or Engraftment Soldadura or Soldering i. Plumbatura different metals ii. Ferruminatio same metal Tejido or Weaving Escritura or Writing Pintura or Painting

c. d. e.

PROPERTY Prof. Labitag

2. Commixtion and Confusion

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SIARI VALLEY ESTATES v LUCASAN (1955) SANTOS v BERNABE () 3. Specification

PROPERTY Prof. Labitag

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IV. QUIETING OF TITLE

A. Differences between Action to Quiet Title and Action:

Action to Quiet Title

Action to Remove a Cloud

Action to Quiet Title

Action to Prevent a Cloud

B.

Prescription of Action to Quiet Title y If plaintiff is in possession: imprescriptible y If plaintiff is not in possession: prescribes within period of filing accion publiciana, accion reivindicatoria

OLVIGA v CA (1993) PINGOL v CA (1993)

C. Who are Entitled to Bring Action? Rule 64, Sec. 1, Par 2, Rules of Court The Notes

D.

1.

There is a cloud on title to real property or any interest to real property. Art 476 The Plaintiff has legal or equitable title to or interest in the subject/real property. Instrument record claim, etc must be valid and binding on its face, but in truth and in fact, invalid, ineffective, voidable or unenforceable. Plaintiff must return benefits received from defendant.

2. 3.

4.

TITONG v CA (1998) 5. Actions to quiet title are proceedings quasi in rem.

SPS. PORTIC v CRISTOBAL (2005)

PROPERTY Prof. Labitag

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V. CO-OWNERSHIP
A. Definition

CO-OWNERSHIP
y

The right of common dominion which two or more persons have a spiritual part (or ideal portion) or a thing which is not physically divided.

B.

Characteristics of co-ownership

1. 2. 3. 4.

There is plurality of owners, but only one real right of ownership. The recognition of ideal shares, defined but not physically identified. Each co-owner has absolute control over his ideal share. Mutual respect among co-owners in regard to use and enjoyment and preservation of thing as a whole.

PARDELL v BARTOLOME ( )
C. Differences between Co-ownership and Joint Tenancy

Co-ownership

Joint Tenancy

D.

Differences between Co-ownership and Partnership

Co-ownership

Partnership

GATCHALIAN v COLLECTOR ( )
E. Source of Co-ownership

1.

Law i. Cohabitation Art 147, FC Art 148, FC Art 90 Purchase Art 1452 Succession y Intestate: Art 1452 y Testate: Property is given to 2 or more heirs Donation Art 753 nd Art 573, 2 Par Chance Art 472

ii.

iii.

iv.

v.

SIARI VALLEY ESTATE v LUCASAN () vi. Hidden treasure Art 348 Easement of party wall Art 658

vii.

PROPERTY Prof. Labitag

viii. Occupation

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PUNZALAN v BOON LIAT ( ) ix. Condominium Law Sec 6 (c), RA 4726

2.

Contracts a. By agreement Duration of co-ownership: Art 494 Universal partnership Art 1778 Art 1779 Art 1780 Associations and societies with secret articles Art 1775

b.

c.

F.

Rights of each co-owner as to the thing owned in common

1.

To use the thing according to the purpose intended may be altered by agreement, express or implied, provided: a. It is without injury or prejudice to interest of co-ownership and; b. Without preventing the use of other co-owners Art 486

PARDELL v BARTOLOME ( ) 2. To share in the benefits in proportion to his interest, provided the charges are borne by each in the same proportion Art 485
y y

Contrary stipulation is void Presumption is that portions are equal unless contrary is proved

3.

Each co-owner may bring an action in ejectment Art 487

RESUENA v CA (2005) ACABAL v ACABAL (2005) 4. To compel other co-owner to contribute: a. to expenses for preservation of the thing or right owned in common b. to payment of taxes Art 488
y y y

Co-owner s option not to contribute by waiving his undivided interest equal to amount of contribution dacion en pago Exception: if waiver is prejudicial to co-ownership Requisites before repairs for preservation may be made or expenses for embellishment or improvement may be made Art 489 Effects of failure to notify co-owners

5.

To oppose any act of alteration Remedy of other co-owners re acts of alteration Art 491 ACTS OF ALTERATION a. Concept

PROPERTY Prof. Labitag

y y

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Any change injurious to the thing owned in common or to the rights of other co-owners or Any change material to the use, destination or state of thing which act is in violation of the express or tacit agreement of the co-owners Distinguished from acts of administration Art 492 Acts of Alteration Acts of Administration

b.

c.

Effect of acts of alteration and remedies of non-consenting co-owner

QUERY: Is lease of real property owned in common an act of alteration? Art 647 in relation to Art 1878 (8) 6. To protect against acts of majority which are prejudicial to minority rd Art 492, 3 Par

LAVADIA v COSME () MELENCIO v DY TIAO LAY () TUASON v TUASON () 7. To exercise legal redemption Art 1620 Art 1623

MARIANO v CA () VERDAD v CA () 8. To ask for partition Art 494

RAMIREZ v RAMIREZ () AGUILAR v CA (1993) VDA DE APE v CA (2005) 9. Other cases where legal right of redemption is given Art 1621 Art 1622

HALILI v CA (1998) FRANCISCO v BOISER (2000)

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

1.

Co-owner has the right: a. b. c. d. To share in fruits and benefits To alienate, mortgage or encumber and dispose of his ideal share BUT: Other co-owners may exercise right of legal redemption To substitute another person in the enjoyment of thing To renounce part of his interest to reimburse necessary expenses incurred by another owner Art 488

2.

Effect of transaction by each co-owner a. b. c. Limited to his share in the partition Transferee does not acquire any specific portion of whole property until partition Creditors of co-owners may intervene in partition or attack the same if prejudicial Art 499

PROPERTY Prof. Labitag

EXCEPT that creditors cannot ask for rescission even if not notified in the absence of fraud Art 497 CARVAJAL v CA () PAMPLONA v MORETO () CASTRO v ATIENZA () ESTOQUE v PAJIMULA () DIVERSIFIED CREDIT v ROSADO () PNB v CA ()
H. I.

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Rules on co-ownership not applicable to conjugal partnership of gains or absolute community of property Special rules on co-ownership of different stories of a house as differentiated from provisions of Condominium Law (Act No. 4726)

1. 2. 3.

Concept of Condominium Essential requisites for Condominium Rights and obligations of Condominium owner

SUNSENT VIEW CONDOMINIUM v JUDGE CAMPOS (1981)

J. Extinguishment of co-ownership

1. 2. 3.

Total destruction of thing Merger of all interests in one person Acquisitive prescription a. b. By a third person By one co-owner as against the other co-owners y REQUISITES - Unequivocal acts of: i. Unequivocal acts of repudiation of co-ownership (acts amounting to ouster of other co-owners) known to other co-owners and shown by clear and convincing evidence ii. Open and adverse possession, not mere silent possession for the required period of extraordinary acquisitive prescription iii. The presumption is that possession by co-owner is not adverse

CAPITLE v DE GABAN (2004) 4. Partition or division a. Right to ask for partition at any time, EXCEPT: i. When there is a stipulation against it (should not be over 10 years) Art When condition of indivision is imposed by transferor (donor or testator) not exceeding 20 years Art 494 When the legal nature of community prevents partition (party wall) Art When partition is generally prohibited by law E.g. absolute community of property When partition would render the thing unserviceable (but the thing may be sold and co-owners divide the proceeds) Art 494  Action for partition will fail if acquisitive prescription has set in

ii.

iii.

iv.

v.

PROPERTY Prof. Labitag

b. Effect of partition Art 1091 Art 543 Art 1092 Art 1093 Art 499 Art 500 Art 501 Right of creditors of individual co-owners Art 497 Procedure for partition Rule 69, Rules of Court

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c.

d.

PROPERTY Prof. Labitag

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VI. POSSESSION
A. Definition and Concept

POSSESSION
y y

Is the holding of a thing OR the enjoyment of a right, whether by material occupation or by the fact that the thing or the right is subjected to the action of our will It is a real right independent of and apart from ownership i.e. the right of possession (jus possessionis) as distinguished from the right to possess (jus possidendi)

B.

Essential Requisites of Possession

1.

Holding or control of a thing or right (corpus) consists of either a. b. c. The material or physical holding or occupation either Exercise of a right Constructive possession (intention to possess is very crucial)

RAMOS v DIRECTOR OF LANDS ( ) DIRECTOR v CA ( ) 2.

C.

Intention to possess (animus possidendi)

Degrees of Holding of Possession

1.

Mere holding or possession without title whatsoever and in violation of the right of the owner E.g. possession of a thief/robber or a usurper of land Possession with a juridical title, but not that of ownership E.g. possession of tenant, depository agent, bailee, trustee, lessee, antichretic creditor. y This degree of possession will never ripen into full ownership as long as there is no repudiation of concept under which property is held. Possession with a just title or title sufficient to transfer ownership, but not from the true owner E.g. possession of a vendee from vendor who pretends to be the owner y This degree of possession ripens into full ownership by lapse of time. Possession with a just title from the true owner y The delivery of possession transfers ownership, and strictly speaking, is the jus possidendi.
Cases of Possession

2.

3.

4.

D.

1.

Possession for oneself or possession exercised in one s own name and possession in the name of another Art 524 Possession in the concept of an owner and possession in the concept of a mere holder with the ownership belonging to another Art 525 Possession in good faith and possession in bad faith Art 526

2.

3.

PLEASANTVILLE DEV T CORP v CA ( ) a. Mistake upon a doubtful or difficult question of law as a basis of good faith

KASILAG v ROQUE (1939)

E. What things or rights may be possessed

PROPERTY Prof. Labitag

Art 530 Only things or rights susceptible of appropriation may be the object of possession
F. What may not be possessed by private persons

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1. 2. 3.

Res Communes Property of public dominion Right under discontinuous and/or non-apparent easement

G.

Acquisition of Possession

1.

Ways of acquiring possession Art 531 a. b. Material occupation of the thing Subject to the action of our will i. Doctrine of constructive possession ii. Includes constructive delivery 1) Traditio brevi manu thing is already in transferee s hands y E.g. under a contract of lease, then delivered under a sale 2) Traditio constitutum possessorium thing remains in transferor s hands y E.g. sale, then retained under a commodatum Proper acts and legal formalities y Refers to the acquisition of possession by: Sufficient title Inter vivos Mortis causa Lucrative or onerous y Includes traditio longa manu and tradition simbolica, donations, succession (testate or intestate), contracts, judicial writs of possession, writ of execution of judgments, execution and registration of public instruments

c.

BANCO ESPANOL FILIPINO v PETERSON ( ) 2. By whom possession be acquired Art 532 a. By same person ELEMENTS OF PERSONAL ACQUISITION By his legal representatives REQUISITES By his agent By any person without any power whatsoever but subject to ratification, without prejudice to the proper case of negotiorum gestio Art 2144 Art 4129 Art 2150 Qualifiedly, minors and incapacitated persons Art 535

b.

c. d.

e.

3.

What do not affect possession Art 537 Art 1119 a. Acts merely tolerated

PROPERTY Prof. Labitag

Art 537 MACASAET v MACASAET (2004) b. Acts executed clandestinely and without the knowledge of the possessor Art 537 Acts by violence as long as possessor objects thereto (i.e. he files a case) Art 536

Page 22 of 47

c.

CUAYCONG v BENEDICTO () ASTUDILLO v PHHC () PERAN v CFI () 4. Rule to solve conflict of possession Art 538

GENERAL RULE: Possession cannot be recognized in two different personalities. EXCEPTION: In cases of co-possession by co-possessors without conflicting claims or interest In case of conflicting possession, preference is given to: a. Present possessor or actual possessor b. If there are 2 or more possessors, the one longer in possession c. If dates of possession are the same, the one who presents a title d. If all conditions are equal, the thing shall be placed in judicial deposit pending determination of possession or ownership through proper proceedings
H. Effects of Possession

1.

In general, every possessor has a right to be respected in his possession; if disturbed therein, possessor has right to be protected in or restored to said possession Art 539 a. Actions to recover possession i. Accion interdictal or Summary proceedings forcible entry and unlawful detainer Plaintiff may ask for writ of preliminary mandatory injunction Within 10 days from the filing of complaint in forcible entry Art 539

YU v HONRADO ( ) ii. iii. iv. b. Accion publiciana based on superior right of possession, not ownership Accion reivindicatoria recovery of ownership, including the right to possess Action for replevin possession or ownership for movable property

Lawful possessor can employ self-help Art 429

2.

Entitlement to fruits possessor in good faith/bad faith Art 544 Art 549 Reimbursement for expenses possessor in good faith/bad faith y Liability for loss or deterioration of property by possessor in bad faith Art 553 Art 552 Possession of movable acquired in good faith (in concept of owner) is equivalent to title Art 559

3.

4.

PROPERTY Prof. Labitag

y y

Page 23 of 47

Possessor has actual title which is defeasible only by true owner One who has lost a movable or has been unlawfully deprived thereof may recover it but without reimbursement EXCEPT: If possessor acquired it at a public sale

I.

Effect of possession in the concept of an owner

1. 2.

Possession may by lapse of time ripen into full ownership, subject to certain exceptions. Presumption of just title and cannot be obliged to show or prove it Art 541 EXCEPTION: Art 1131 Possessor may bring all actions necessary to protect his possession except accion reivindicatoria May employ self-help under Art 429 Possessor may ask for inscription of such real right of possession in the Registry of Property Has rights to fruits and reimbursements for expenses (assuming he is a possessor in good faith) Upon recovery of possession which he has been unlawfully deprived, may demand fruits and damages Generally, he can do on the things possessed everything that the law authorizes the owner to do until he is ousted by the one who has a better right Possession in good faith and possession in bad faith Art 528 y Mistake upon a doubtful or difficult question of law as a basis of good faith Art 526, Par 3
Presumptions in favor of the possessor

3. 4. 5. 6. 7. 8.

9.

J.

1.

Of good faith until the contrary is proved Art 528 Of continuity of initial good faith in which possession was commenced or possession in good faith does not lose his character except in the case and from the moment possessor became aware or is not unaware of improper or wrongful possession Art 528

2.

CORDERO v CABRAL ( ) 3. Of enjoyment of possession in the same character in which possession was acquired until contrary is proved Art 529 Of non-interruption of possession in favor of present possessor who proves possession at a previous time until the contrary is proved Art 554 Art 1120 Art 1121 Art 1122 Art 1123 Art 1124 Of continuous possession or non-interruption of possession of which he was wrongfully deprived for all purposes favorable to him Art 561 Other presumptions with respect to specific properties of property rights a. Of extension of possession of real property to all movables contained therein so long as it is not shown that they should be excluded Art 426

4.

5.

6.

PROPERTY Prof. Labitag

b. Non-interruption of possession of hereditary property Art 533 Art 1078 Of just title in favor of possessor in concept of owner Art 541 cf. Art 1141

Page 24 of 47

c.

K.

Possession may be lost by

1. 2. 3. 4.

Abandonment Assignment, either onerous or gratuitous Destruction or total loss of thing or it goes out of commerce Possession by another; if possession has lasted longer than one year; real right of possession not lost until after 10 years y Subject to Art 537 (on acts merely tolerated, etc)

PROPERTY Prof. Labitag

Page 25 of 47

VII. USUFRUCT
A. Concept

Art 562

USUFRUCT
y

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

B. C. D.

Historical Considerations Characteristics of Usufruct Usufruct Distinguished from Lease; from Servitude

Usufruct

Lease

Usufruct

Servitude

E.

Classes of Usufruct

1.

By origin a. b. Voluntary Legal Art 321 Art 226, FC Mixed

c. 2.

By person enjoying the right of usufruct a. b. Simple Multiple i. Simultaneous ii. Succession Limitation on successive usufruct Art 756 Art 863 Art 869

3.

By object of usufruct a. b. Rights Art 574 Things i. Normal ii. Abnormal, irregular or quasi-usufruct

4.

By the extent of usufruct a. As to the fruits i. Total ii. Partial Art 598

PROPERTY Prof. Labitag

b. As to object i. Singular ii. Universal Art 595 Subject to provisions of: Art 758 Art 759 5. By the terms of the usufruct Art 564 a. b. c.
F.

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Pure Conditional With a term (period)

Rights of Usufructuary

1.

As to the thing and its fruit a. Right to possess and enjoy the thing itself, its fruits and accessions y Fruits consist of natural, industrial and civil fruits y As to hidden treasure, usufructuary is considered a stranger Art 566 Art 436 y Fruits pending at the beginning of usufruct Art 567 y Civil fruits Art 569 Art 588 Right to lease the thing Art 572 y Limitations y Liability of usufructuary Art 590 y Exceptions to right of leasing the thing

b.

FABIE v DAVID () c. Right to improve the thing Art 579

2.

As to the legal right of usufruct itself a. Right to mortgage Right of usufruct Art 572 Right to alienate the usufruct EXCEPT: y In purely personal usufructs y When title constituting it prohibits the same

b.

G.

Rights of Naked Owner

1.

At the beginning, during, and termination of usufruct (See obligations of usufructuary at the beginning of the usufruct) During the usufruct

2.

PROPERTY Prof. Labitag

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

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H.

Obligations of Usufructuary

1.

At the beginning of usufruct or before exercising the usufruct a. To make inventory Art 583 i. REQUISITES OF INVENTORY 1) Immovables described 2) Movables appraised EXCEPTION TO REQUIREMENT OF INVENTORY 1) No one will be injured thereby Art 585 2) Title constituting usufruct excused the making of inventory 3) Title constituting usufruct already makes an inventory

ii.

b.

To give a bond for the faithful performance of duties as usufructuary i. No bond are required in the following: 1) No prejudice would result Art 585 2) Usufruct is reserved by donor Art 584 3) Title constituting usufruct excused usufructuary 4) If usufructuary takes possession under a caucion juratoria Effect of filing a bond Art 588 Effect of failure to give bond Art 586 Art 599

ii.

iii.

2.

During the usufruct a. To take care of the thing like a good father of a family Art 589 Effect of failure to comply with obligation Art 610 b. To undertake ordinary repairs Art 592 ORDINARY REPAIRS To notify owner of need to undertake extra-ordinary repairs Art 593 EXTRA-ORDINARY REPAIRS 1) Concept of extraordinary repairs 2) Naked owner obliged to undertake them but when made by owner, usufructuary pays legal interest on the amount while usufruct lasts st Art 594, 1 Par 3) Naked owner cannot be compelled to undertake extraordinary repairs  If indispensable and owner fails to undertake extraordinary repairs, it may be made by usufructuary;  Repairs usufructuary rights nd Art 594, 2 Par

c.

PROPERTY Prof. Labitag

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

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BD. OF ASSESSMENT APPEALS OF ZAMBOANGA DEL SUR v SAMAR MINING COMPANY INC () e. To notify owner of any act detrimental to ownership Art 601 To shoulder the costs of litigation re usufruct Art 602 To answer for fault or negligence of alienee, lessee or agent of usufructuary Art 590

f.

g.

3.

At the time of termination of the usufruct a. To deliver the thing in usufruct to the owner in the condition in which he has received it, after undertaking ordinary repairs EXCEPTION: abnormal usufruct

I.

Special Cases of Usufruct

1.

Usufruct over a pension or periodical income Art 570 Usufruct of property owned in common Art 582 Usufruct of head of cattle Art 591 Usufruct over vineyards and woodlands Art 575 Art 576 Usufruct on a right of action Art 578 Usufruct on mortgaged property Art 600 Usufruct over an entire patrimony Art 598 Liability of usufructuary for debts Usufruct over deteriorable property Art 578 Usufruct over consumable property (or quasi-usufruct) Art 574
Extinguishment of Usufruct Art 603

2.

3.

4.

5.

6.

7.

8.

9.

J.

1.

Death of usufructuary EXCEPTION: unless a contrary intention clearly appeals Expiration of period or fulfillment of resolutory condition imposed on usufruct by person constituting the usufruct y Time may elapse before a third person attains a certain age, even if the latter dies before period expires unless granted only in consideration of his existence Art 606

2.

BALURAN v NAVARRO ()

PROPERTY Prof. Labitag

NHA v CA () BULACAN GARDEN CORP v MANILA SEEDLING BANK ()

Page 29 of 47

3. 4.

Merger of rights of usufruct and naked ownership in one person Renunciation of usufruct a. Limitations b. Must be express c. If made in fraud of creditors, waiver may be rescinded by them through action under Art 1381 Extinction or loss of property a. If destroyed property is insured before the termination of the usufruct Art 608 1. When insurance premium paid by owner and usufructuary st Art 608, 1 Par i. If owner rebuilds, usufruct subsists on new building ii. If owner does not rebuild, interest upon insurance proceeds paid to usufructuary When the insurance taken by owner only because usufructuary refuses nd Art 608, 2 Par i. Owner entitled to insurance money (no interest paid to usufructuary) ii. If he does not rebuild, usufruct continues over remaining land and/or owner may pay interest on value of both Art 607 iii. If owner rebuilds, usufruct does not continue on new building, but owner must pay interest on value on land and old materials When insurance taken by usufructuary only depends on value of usufructuary s insurable interest (not provided for in the Civil Code) i. Insurance proceeds to usufructuary ii. No obligation to rebuild iii. Usufruct continues on the land iv. Owner does not share in insurance proceeds

5.

2.

3.

b.

If destroyed property is not insured Art 607 1. If building forms part of an immovable under usufruct i. If owner does not rebuild, usufruct continues over the land and materials ii. If owner rebuilds, usufructuary must allow owner to occupy the land and to make use of materials, but value of both land and materials (____???)

6. 7.

Termination of right of person constituting the usufruct Prescription Cases covered: a. If third party acquires ownership of thing or property in usufruct b. Right of ownership lost through prescription c. Right of usufruct not began within prescriptive period d. If there is a tacit abandonment or non-user of thing held in usufruct for required period

8.

What do not cause extinguishment of usufruct a. Expropriation of thing in usufruct Art 609 Bad use of thing in usufruct Art 810 Owner s right

b.

PROPERTY Prof. Labitag

c. Usufruct over a building Art 607 Art 608

Page 30 of 47

PROPERTY Prof. Labitag

Page 31 of 47

VIII. EASEMENTS OR SERVITUDES

A. Definition

EASEMENT or REAL SERVITUDES

y y

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

B.

Essential feature of easements/real servitudes/praedial servitudes

1. 2.

It is a real right, i.e. it gives an action in rem or real action against any possessor of servient estate. It is a right enjoyed over another property (jus in re aliena or a right in the property of another) i.e. it cannot exist in one s own property (nemini nulli res sua servit or no one can have servitude on a property of his own ). It is a right constituted over an immovable by nature (land and buildings), not over immovables. It limits the servient owner s right of ownership for the benefit of the dominant estate Right of limited use, but no right to possess servient estate. Being an abnormal limitation of ownership, it cannot be presumed. It creates a relation between tenements. It cannot consists in requiring the owner of the servient estate to do an act (servitus in faciendo consistere nequit or servitudes may not impose positive acts ) unless the act is accessory to a praedial servitude (obligation propter rem) Generally, it may consist in the owner of the dominant estate demanding that the owner of the servient estate refrain from doing something (servitus in non faciendo), or that the latter permit that something be done over the servient property (servitus in patendo), but not in the right to demand that the owner of the servient estate to do something (servitus in faciendo) EXCEPT if such act is an accessory obligation to a praedial servitude (obligation propter rem)

3. 4.

5. 6.

7.

CHARACTERISTICS OF EASEMENTS (Nos. 8-11) 8. It is inherent or inseparable from estate to which they actively or passively belong. Art 617 It is intransmissible, i.e. it cannot be alienated separately from the tenement affected, or benefited.

9.

10. It is indivisible. Art 616 11. It has permanence, i.e. once it attaches, whether used or not, it continues and may be used anytime.
C. Classification of Servitudes

1.

As to recipient of benefits a. b. Real or Praedial Personal N.B.: Under Roman Law, usufruct together with usus habitatio, and operae servorum were classified as personal servitude] Art 614

2.

As to course or origin a. b. Legal, whether for public use or for the interest of private persons Art 634 Voluntary

PROPERTY Prof. Labitag

3. As to its exercise Art 615 a. b. 4. Continuous Discontinuous

Page 32 of 47

As indication of its existence Art 615 a. b. Apparent Non-apparent

5.

By the object or obligation imposed Art 616 a. b. Positive Negative y Prescription starts to run from service of notarial prohibition

D.

General rules relating to servitudes

1. 2. 3. 4. 5.
E.

No one can have a servitude over his own property (nulli res sua servit) A servitude cannot consist in doing (servitus in faciendo consistere nequit) There cannot be a servitude over another servitude (servitus servitudes esse non potest) A servitude must be exercised civiliter, i.e. in a way least burdensome to the owner of the land. A servitude must have a perpetual cause.
Modes of acquiring easements

NORTH NEGROS v HIDALGO () 1. By title y Juridical act which give rise to the servitude e.g. law, donations, contracts or wills

DUMANGAS v BISHOP OF JARO () a. If easement has been acquired but no proof of existence of easement available, and easement is one that cannot be acquired by prescription, then i. May be cured by deed of recognition by owner of servient estate ii. By final judgment iii. Existence of an apparent sign considered a title Art 624

AMOR v FLORENTINO () 2. By prescription

RONQUILLO v ROCO ()
F. Rights and obligations of owners of dominant and servient estates

Dominant Estate 1. Right of owner of dominant estate a. To use the easement Art 626 To exercise all rights necessary for the use of the easement Art 625 To do, at his expense, all necessary works for the use and preservation of the easement Art 627 In a right of way, to ask for change in width of easement sufficient for needs of dominant estate

b. c.

PROPERTY Prof. Labitag

Art 651 DE LUNA v ENCARNACION () 2. Obligations of the owner of dominant estate a. b.

Page 33 of 47

c.

To use the easement for benefit of immovable and in the manner originally established Art 626 To notify owner of servient estate before making repairs and to make repairs in a manner least inconvenient to servient estate Art 627 Not to alter easement or render it more burdensome Art 627

VALDERRAMA v NORTH NEGROS () d. To contribute to expenses of works necessary for use and preservation of servitude, if there are several dominant estates, unless he renounces his interest Art 628

Servient Estate 3. Rights of owner of servient estate a. To retain ownership and use of his property Art 630 To change the place and manner of use the easement nd Art 629, 2 Par

b.

4.

Obligations of the servient estate a. Not to impair the use of the easement Art 628, 1st Par To contribute proportionately to expenses if he uses the easement nd Art 628, 2 Par

b.

G.

Modes of extinguishment of easements

Art 631 Easements are extinguished by: 1. Merger in the same person of the ownership of the dominant and servient estates y Must be absolute, perfect and definite, not merely temporary Non-user for 10 years a. Computation of the period i. Discontinuous easements counted from the day they ceased to be used ii. Continuous easements counted from the day an act adverse to the exercise took place b. The use by a co-owner of the dominant estate bars prescription with respect to the others Art 633 c. Servitudes not yet exercised cannot be extinguished by non-use Extinguishment by impossibility of use Expiration of the term or fulfillment of resolutory condition Renunciation of the owner of dominant estate y Must be specific, clear, express (distinguished from non-user) Redemption agreed upon between the owners

2.

3. 4. 5.

6.

PROPERTY Prof. Labitag

7. Other causes not mentioned in Art 631 a. Annulment or rescission of the title constituting the easement b. Termination of the right of grantor c. Abandonment of the servient estate d. Eminent domain e. Special cause for extinction of legal easement of rights of way; if right of way no longer necessary
Legal Easements

Page 34 of 47

H.

1.

Law governing legal easements a. For public easements i. Special laws and regulations relating thereto 1) PD 1067 Water Code 2) PD 705 Forestry Reform Code ii. Provisions of Chapter 2, Title VII, Book II of CC (Legal Easements) For private legal easements rd i. By agreement of the interested parties whenever the law does not prohibit it and no injury is suffered by a 3 person ii. By the provisions of Chapter 2, Title VII, Book II of CC (Legal Easements)

b.

2.

Private legal easements provided for by the New Civil Code a) Those established for the use of water or easements relating to waters

1)

Natural drainage of waters Art 637

ONGSIAKO v ONGSIAKO () 2) Easements on lands along riverbanks Art 638 See Water Code Abutment of a dam Art 639 Aqueduct Art 642 Art 643 Art 644 Art 645 Art 646 Drawing waters and watering animals Art 640 Art 641 Stop lock or sluice gate Art 649 b) The easement of right of way

3)

4)

5)

6)

Art 649 Art 650 Art 651 Art 652 Art 653 Art 654 Art 655 Art 656 Art 657

PROPERTY Prof. Labitag

Page 35 of 47

QUIMEN v CA (1996) CHAN v CA () LA VISTA ASSN v CA (1997) VDA. DE BELTAZAr v CA () SPS. DELA CRUZ v RAMISCAL (2005) c) The easement of party wall

Art 658 Art 659 Art 660 Art 661 Art 662 Art 663 Art 664 Art 665 Art 666 d) The easement of light and view

Art 667 Art 668 Art 669 Art 670 Art 671 Art 672 Art 673 e) The easement of drainage of buildings

Art 674 Art 675 Art 676 f) The easement of distance for certain constructions

Art 677 Art 678 Art 679 Art 680 Art 681 g) The easement against nuisances

Art 682 Art 683 h) The easement of lateral and subjacent supports

Art 684 Art 685 Art 686 Art 687

PROPERTY Prof. Labitag

Page 36 of 47

BOOK III DIFFERENT MODES OF ACQUIRING OWNERSHIP

Mode and Title Differentiated

MODE
y y

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

TITLE
y y

Every juridical right which gives a means to the acquisition of real rights but which in itself is insufficient Remote cause

Modes of Acquiring Ownership

ORIGINAL MODES y Which produce the acquisition of ownership independent of any pre-existing right of another person, hence, free from any burdens or encumbrances a. b. Occupation Intellectual creation

DERIVATIVE MODES y Based on a right previously held by another person and therefore, subject to the same characteristics, powers, burden etc as when held by previous owner y Law - e.g. o Registration under Act 496 o Estoppel of title Art 1434 o Marriage under ACP o Hidden treasure o Accession Art 445 o Change in river s course Art 461 o Accession continua over movables Art 466 Art 6681 Art 1456 Art 120 a) b) c) d) Donation Succession Prescription Tradition REQUISITES: (1) Pre-existence of right in estate of grantor (2) Just cause or title for the transmission (3) Intention (of both grantor and grantee) (4) Capacity (to transmit and to acquire) (5) An act giving it outward form, physically, symbolically or legally LEGAL MAXIM: Non nudis pactis, sed traditione, dominia rerum transferentur (Not by mere agreement, but by delivery, is ownership transferred.)

PROPERTY Prof. Labitag

KINDS OF TRADITION a. b. Real tradition Constructive tradition i. Symbolical delivery ii. Delivery of public instrument iii. Traditio longamanu iv. Traditio brevi manu v. Traditio constitutum possessorium vi. Quasi-tradition vii. Tradition by operation of law

Page 37 of 47

Occupation

a.

Not applicable to ownership of a piece of land Art 714 Privilege to hunt and fish regulated by special law Art 715 Occupation of a swarm of bees or domesticated animals Art 716 Art 560 Pigeons and fish Art 717 Hidden treasure Art 718 Art 438 Art 439 Lost movables Art 719 Art 720 Procedure after finding lost movables

b.

c.

d.

e.

f.

Intellectual creation Intellectual Property Code (RA 8293)

Intellectual Property Rights (IPR): a. Copyright & related rights b. Trademarks & service marks c. Geographic indications d. Industrial designs e. Patents f. Topographies of integrated circuits g. Rights of performers, producers of sound recordings & broadcasting orgs h. Protection of undisclosed information i. Laws repealed by the IPC Sec 239 All acts and part of acts inconsistent with Intellectual Property Code, particularly: y PD 49 Intellectual Property Decree, including PD 285 as amended y RA 165, as amended Patent Law y RA 166, as amended y Arts 188 and 189 of the RPC

PROPERTY Prof. Labitag

Page 38 of 47

DONATION
Nature of donation y A bilateral contract creating unilateral obligations on donor s part Requisites of donation

a. b. c. d. NOTE y

Consent and capacity of the parties Animus donandi (causa) Delivery of the thing donated Form as prescribed by law

There must be impoverishment (in fact) of donor s patrimony and enrichment on part of donee

Kinds of donation

1.

As to its taking effect a. Inter vivos Art 729 Art 730 Art 731 b. Mortis causa Art 728 c. Propter nuptias Art 82, FC Art 87, FC As to cause or consideration a. Simple b. Remuneratory c. Onerous imposes a burden inferior to the value of property donated i. Improper burden equal in value to property donated ii. Sub-modo or modal E.g. imposes a prestation upon donee as to how property donated will be applied Art 882 iii. Mixed donations negotium mixtum cum donatione e.g. sale for price lower than value of property As to effectivity or extinguishment a. Pure b. Conditional Art 730 Art 731  EFFECT OF AN IMPOSSIBLE CONDITION: c. With a term Importance of classification a. As to form b. As to governing rules c. As to impossible conditions Art 727 Art 1183 Characteristics of a donation mortis causa a. Convey no title or ownership before donor s death b. Before donor s death, transfer is revocable c. Transfer is void if donor survives donee Distinction between donation mortis causa and donation inter vivos

2.

3.

4.

5.

6.

PROPERTY Prof. Labitag

a. b.

Page 39 of 47

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

Who may not give or receive donations

Art 735 Art 737 Art 738 Art 741 Art 742
Who may give or receive donations

Art 736 Art 739 Art 1027 Art 1032 Art 740 Art 743 Art 744
Acceptance of donation

1.

Who may accept Art 745 Art 747 Time of acceptance a. of donation inter vivos Art 746 b. of donation mortis causa

2.

Form of donations

1.

Personal property Art 748 Real property Art 749 Rules in Art 748 and Art 749 not applicable to: a. Onerous donations b. Modal donations c. Mortis causa donations d. Donations propter nuptias

2.

3.

What may be donated

1.

All present property, or part thereof, of donor a. PROVIDED, he reserves in full ownership or usufruct, sufficient means for support of himself and all relatives entitled to be supported by donor at the time of acceptance Art 750 PROVIDED, that no person may give or receive, by way of donation, more than he may give or receive by will Art 752 Also, reserves property sufficient to pay donor s debts contracted before donation, otherwise, donation is in fraud of creditors Art 759 Art 1387

b.

PROPERTY Prof. Labitag

Page 40 of 47

2.

If donation exceeds the disposable or free portion of his estate, donation is inofficious EXCEPTIONS a. Donations provided for in marriage settlements between future spouses not more than 1/5 of present property Art 84, FC Art 130, CC Donations propter nuptias by an ascendant consisting of jewelry, furniture or clothing not to exceed 1/10 of disposable portion Art 1070

b.

3.

What may not be donated a. Future property Art 751 Anything which donor cannot dispose of at the time of donation EXCEPTION y Marriage settlements of future spouses only in event of death to extent laid down in CC re: testamentary succession Art 84, FC Art 130 CC

Effect of donation

A.

In general

SHOPPER S PARADISE REALTY v ROQUE (2004) 1. 2. Donee may demand actual delivery of thing donated Donee is subrogated to rights of donor in property donated Art 754 Donor not obliged to warrant things donated, EXCEPT in onerous donations in which case donor is liable for eviction up to the extent of burden Art 754 Donor is liable for eviction or hidden defects in case of bad faith on his part Art 754 In donations propter nuptias, donor must release property donated from mortgages and other encumbrances, unless contrary has been stipulated Art 131, CC Donations to several donees jointly - no right of accretion, EXCEPT a. Donor provides otherwise b. Donation to husband and wife jointly with right of accretion (jus accrescendi) UNLESS donor provides otherwise Art 753

3.

4.

5.

6.

B.

Special provisions 1. 2. 3. 4. Reservation by donor of power to dispose (in whole or in part) or to encumber property donated Art 755 Donation of naked ownership to one donee and usufruct to another Art 756 Conventional reversion in favor of donor or other person Art 757 Payment of donor s debt Art 758 a. If expressly stipulated o Donee to pay only debts contracted before the donation, UNLESS specified otherwise

PROPERTY Prof. Labitag

b. 5.

Page 41 of 47

o But in no case shall donee be responsible for debts exceeding the value of property donated, UNLESS clearly intended If there is no stipulation o Donee answerable only for donor s debt only in case of donation is in fraud of creditors Illegal or impossible conditions Art 727 Art 1183

Revocation and Reduction of Donations

A.

Revocation distinguished from reduction of donations Revocation Reduction

B.

Causes of Reduction/Revocation 1. Inofficiousness of donation Art 752 Art 771 Art 773 Art 911 Art 912 a. Who may ask for reduction Art 772 Rule applied: If disposable portion is not sufficient to cover 2 or more donation Art 773

b.

2.

Subsequent birth, reappearance of child or adoption of minor by donor Art 760

C.

Revocation only

1.

Ingratitude a. Causes Art 765 Time to file action for revocation Art 769 Who may file Art 770 Effect of revocation On alienation and mortgages Art 766 Art 767

b.

c.

d.

2.

Violation of condition a. b. Prescription of action Transmissibility of action

YULO AND SONS v ROMAN CATHOLIC BISHOP OF SAN PABLO (2005)

3.

Effect of revocation or reduction

PROPERTY Prof. Labitag

Art 762 Art 764 Par 2 Art 767

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4.

Effect as to fruits Art 768

PROPERTY Prof. Labitag

Page 43 of 47

PROPERTY Prof. Labitag

Page 44 of 47

LEASE
A. General characteristics of every lease

1. 2. 3.
B.

Temporary duration Onerous Price is fixed according to contract duration

Kinds of leases

1. 2.

Lease of things movables and immovables Lease of work or contract of labor Art 1700 Art 1701 Art 1702 Art 1703 Art 1704 Art 1705 Art 1706 Art 1707 Art 1708 Art 1709 Art 1710 Art 1711 Art 1712 Lease of services a. b. Household service Contract for a piece of work Art 1713 Art 1714 Art 1715 Art 1716 Art 1717 Art 1718 Art 1719 Art 1720 Art 1721 Art 1722 Art 1723 Art 1724 Art 1725 Art 1726 Art 1727 Art 1728 Art 1729 Art 1730 Art 1731 Lease of services of common carriers Art 1732 Art 1733 Art 1734 Art 1735 Art 1736 Art 1737

3.

c.

PROPERTY Prof. Labitag

Art 1738 Art 1739 Art 1740 Art 1741 Art 1742 Art 1743 Art 1744 Art 1745 Art 1746 Art 1747 Art 1748 Art 1749 Art 1750 Art 1751 Art 1752 Art 1753 Art 1754 Art 1755 Art 1756 Art 1757 Art 1758 Art 1759 Art 1760 Art 1761 Art 1762 Art 1763
C. Lease of things

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1.

Concept Art 1643 Consumable things cannot be the subject matter of lease EXCEPT Art 1645 a. Consumable only for display or advertising (Lease ad pompam et ostentationem) b. Goods are accessory to an industrial establishment Special characteristics of lease of things a. Essential purpose is to transmit the use and enjoyment of a thing b. Consensual c. Onerous d. Price fixed in relation to period of use or enjoyment e. Temporary Lease distinguished from Sale, Usufruct, Commodatum Period of lease cannot be perpetual a. b. Definite period not more than 99 years Indefinite period i. Rural land Art 1682 ii. Urban land Art 1687

2.

3.

4. 5.

6.

Assignment of lease Art 1649 Sublease Art 1650

7.

PROPERTY Prof. Labitag

a. b. House Rental Law (RA 9653) Obligation of sublessee to lessor Art 1651 For rents Art 1652

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8.

Rights and obligations of lessor and lessee a. Obligations of a lessor Art 1654 Art 1661 Obligations of lessee Art 1657 Art 1662 Art 1663 Art 1665 Art 1668 Art 1667 Right of lessee to suspend payment of rentals Art 1658 Right to ask for rescission Art 1659 Art 1660 Lessor not obliged to answer for mere act of trespass by a 3 person Art 1664
rd

b.

c.

d.

e.

9.

Grounds for ejectment of lessee by lessor Art 1673 Note the grounds under the House Rental Law. QUERY: Are they still effective?

10. Right to ask for writ of preliminary mandatory injunction in unlawful detainer cases Art 1674 Art 539, Par 2 11. Implied extension of lease Art 1670 Art 1682 Art 1687 Art 1675 12. Right of purchase of leased land Art 1676 Art 1677 13. Useful improvements in good faith made by lessee Art 1678 14. Special provisions for leases of rural lands Art 1680 Art 1681 Art 1682 Art 1683 Art 1684 Art 1685

PROPERTY Prof. Labitag

15. Special provisions for leases of urban lands Art 1686 Art 1687 Art 1688

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