Notes On Fundamentals of Property Ownership
Notes On Fundamentals of Property Ownership
Notes On Fundamentals of Property Ownership
Dalangin
NOTE: the 1987 Constitution emphasizes the stewardship concept of property ownership where
the owner, recognizing the primacy of the state under REGALIAN DOCTRINE, exercises the right of
ownership
- Section 2. All lands of the public domain, waters, minerals, coal, petroleum, and other
mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife, flora and
fauna, and other natural resources are owned by the State. With the exception of
agricultural lands, all other natural resources shall not be alienated. The exploration,
development, and utilization of natural resources shall be under the full control and
supervision of the State. The State may directly undertake such activities, or it may
enter into co-production, joint venture, or production-sharing agreements with Filipino
citizens, or corporations or associations at least sixty per centum of whose capital is
owned by such citizens. Such agreements may be for a period not exceeding twenty-
five years, renewable for not more than twenty-five years, and under such terms and
conditions as may be provided by law. In cases of water rights for irrigation, water
supply fisheries, or industrial uses other than the development of water power,
beneficial use may be the measure and limit of the grant.
The State shall protect the nation’s marine wealth in its archipelagic waters,
territorial sea, and exclusive economic zone, and reserve its use and enjoyment
exclusively to Filipino citizens.
The Congress may, by law, allow small-scale utilization of natural resources by
Filipino citizens, as well as cooperative fish farming, with priority to subsistence
fishermen and fishworkers in rivers, lakes, bays, and lagoons.
The President may enter into agreements with foreign-owned corporations
involving either technical or financial assistance for large-scale exploration,
development, and utilization of minerals, petroleum, and other mineral oils according to
the general terms and conditions provided by law, based on real contributions to the
economic growth and general welfare of the country. In such agreements, the State
shall promote the development and use of local scientific and technical resources.
- Section 3. Lands of the public domain are classified into agricultural, forest or timber,
mineral lands and national parks. Agricultural lands of the public domain may be
further classified by law according to the uses to which they may be devoted. Alienable
lands of the public domain shall be limited to agricultural lands. Private corporations
or associations may not hold such alienable lands of the public domain except by
lease, for a period not exceeding twenty-five years, renewable for not more than
twenty-five years, and not to exceed one thousand hectares in area. Citizens of the
Philippines may lease not more than five hundred hectares, or acquire not more than
twelve hectares thereof, by purchase, homestead, or grant.
Land Acquisition for Both • either of the spouses may avail of the • either of the spouses may avail of the
Spouses privilege privilege
• in case both spouses wish to acquire • in case both spouses wish to acquire
lands for this purpose, the total area lands for this purpose, the total area
acquired should not exceed the acquired should not exceed the
maximum allowed maximum allowed
Additional Land In case he/she already owns urban or In case he/she already owns urban
Acquisition rural lands for residential purposes, or rural lands for business purposes,
he/she may acquire additional urban or he/she may acquire additional urban or
rural lands, which when added to those rural lands, which when added to those
he/she presently owns shall not exceed he/she presently owns shall not exceed
the authorized maximum area the authorized maximum area
Limits to Acquisition of A person may acquire not more than A person may acquire not more than
Land two (2) lots which should be situated two (2) lots which should be situated
in different municipalities or cities in different municipalities or cities
anywhere in the Philippines, provided anywhere in the Philippines, provided
that the total area of these lots do that the total area of these lots do not
not exceed 1,000 sq. meters for exceed 5,000 sq. meters for urban land
urban land or one (1) hectare for or three (3) hectares for rural land for
rural land for use as residence. business purposes.
An individual who has already A transferee who has already acquired
acquired urban land shall be urban land shall be disqualified from
disqualified from acquiring rural land acquiring rural land and vice versa.
and vice versa. However, if the transferee has disposed
of his/her urban land, he/she may still
acquire rural land and vice versa,
provided that this will be used for
business.
Use of Land For residence purposes A transferee of residential land
acquired under Batas PambansaBlg.
185 may still avail of the privilege
granted under this law.
Special Requirements The transferee should submit to the In addition to the usual registration
Register of Deeds of the province or requirements pertinent to the
city where the property is located a conveyance of real estate, the transfer
sworn statement stating the contemplated shall not be recorded
following: unless the transferee submits to the
Registry of Deeds of the province or
a. date and place of birth; city where the land is situated, the
b. names and addresses of his/her following:
parents, spouse, and children, if a. certification of business
any; registration issued by the
c. area, location, and mode of Bureau of Trade Regulation and
acquisition of landholdings in the Consumer Protection of the
Philippines, if any DTI;
d. his/her intention to reside b. sworn statement stating
permanently in the Philippines; information required under
e. date he/she lost his/her Philippine Batas Pambansa 185;
citizenship c. certification from assessor of
f. country of which he/she is municipality or province where
presently a citizen the property is situated that
the subject land for transfer is
an urban or rural area;
d. if an agricultural land is
acquired, a certification from
the Department of Agrarian
Reform that the land is a
retained area of the transferor
e. affidavit of the transferee
attesting that his/her total
landholding inclusive of the
land to be acquired does not
exceed the 5-hectare limit
CONTRACTUAL OR VOLUNTARY
1. Those imposed by the grantor of the property on the grantee by contract
a. Donation
b. Last will
c. Usufruct: right to enter the property of another with the obligation of preserving its
form and substance; right to enjoy the fruits of the property
d. Deed/Use Restrictions in Subdivision Contracts
2. Those imposed by the owner himself
a. Voluntary easement: right to established easement which the owner may deem
suitable and in the manner and form he deems best
b. Lease Contract: temporary surrender of the right to possess, use and enjoy in favour
of another person in exchange for appropriate consideration
c. Mortgage
CLASSIFICATION OF PROPERTY
All things which are or may be the object of appropriation are considered either:
(2) Real property which by any special provision of law is considered as personal property;
(3) Forces of nature which are brought under control by science; and
(4) In general, all things which can be transported from place to place without impairment of the
real property to which they are fixed
(2) Shares of stock of agricultural, commercial and industrial entities, although they may have
real estate.
Movable property is either consumable or non-consumable. To the first class belong those
movables which cannot be used in a manner appropriate to their nature without their being
consumed; to the second class belong all the others.
Classifications:
1. Nature (land, buildings, trees, plants, etc.)
**LAND is the first to be listed as immovable property or real property by nature
2. Incorporation (machineries, statues, fish ponds, etc)
3. Destination (mines, fertilizers, quarries, docks, etc)
4. Analogy or Law (servitudes and other real rights over the property)
**NOTE: Whenever the word "muebles," or "furniture," is used alone, it shall not be deemed to include
money, credits, commercial securities, stocks and bonds, jewelry, scientific or artistic collections, books,
medals, arms, clothing, horses or carriages and their accessories, grains, liquids and merchandise, or
other things which do not have as their principal object the furnishing or ornamenting of a building,
except where from the context of the law, or the individual declaration, the contrary clearly appears.
b) The owner of the land on which anything has been built, planted or sown In bad faith may:
aa) Demand the demolition of the work or removal of the planting or sowing at the
expense of the builder or planter
bb) compel the builder or planter to pay the price of the land and the sower, the proper rent.
The landowner is also entitled to damages from the builder planter or sower.
cc) To the owners of land adjoining the banks of rivers belong the accretion which they gradually
receive from the effects of the current of the water.
dd) Whenever a river, changing its course by natural causes, opens a new bed through a private
estate, the new bed shall become a public dominion.
CONCEPT OF TITLE
- A person is deemed to have title to a property when he can exercise or has the bundle of rights
over it.
- Evidence or proof of ownership
o Tax declaration
o Realty tax receipt
o Deed of sale
o Torrens Certificate of Title: best evidence of ownership because it is imprescriptible and
indefeasible.
NOTE: The peaceful and adverse possession of land that is continuous and uninterrupted for a certain
period of time may be converted into ownership of the land.
10years by ordinary prescription (with just title and in good faith)
30years by extraordinary prescription (without need of title and good faith)
(1) Those intended for public use, such as roads, canals, rivers, torrents, ports and bridges
constructed by the State, banks, shores, roadsteads, and others of similar character;
(2) Those which belong to the State, without being for public use, and are intended for some
public service or for the development of the national wealth.
All other property of the State, which is not of the character stated in the preceding article, is
patrimonial property. (340a)
Property of public dominion, when no longer intended for public use or for public service, shall
form part of the patrimonial property of the State. (341a)
The property of provinces, cities, and municipalities is divided into property for public use and
patrimonial property. (343)
Property for public use, in the provinces, cities, and municipalities, consist of the provincial
roads, city streets, municipal streets, the squares, fountains, public waters, promenades, and
public works for public service paid for by said provinces, cities, or municipalities.
All other property possessed by any of them is patrimonial and shall be governed by this Code,
without prejudice to the provisions of special laws.
Property of private ownership, besides the patrimonial property of the State, provinces, cities,
and municipalities, consists of all property belonging to private persons, either individually or
collectively.
OWNERSHIP IN GENERAL
Art. 428. The owner has the right to enjoy and dispose of a thing, without other limitations than those
established by law.
The owner has also a right of action against the holder and possessor of the thing in order to recover it.
(348a)
Art. 429. The owner or lawful possessor of a thing has the right to exclude any person from the
enjoyment and disposal thereof. For this purpose, he may use such force as may be reasonably
necessary to repel or prevent an actual or threatened unlawful physical invasion or usurpation of his
property. (n)
Art. 430. Every owner may enclose or fence his land or tenements by means of walls, ditches, live or
dead hedges, or by any other means without detriment to servitudes constituted thereon. (388)
Art. 431. The owner of a thing cannot make use thereof in such manner as to injure the rights of a third
person. (n)
Art. 432. The owner of a thing has no right to prohibit the interference of another with the same, if the
interference is necessary to avert an imminent danger and the threatened damage, compared to the
damage arising to the owner from the interference, is much greater. The owner may demand from the
person benefited indemnity for the damage to him. (n)
Art. 433. Actual possession under claim of ownership raises disputable presumption of ownership. The
true owner must resort to judicial process for the recovery of the property. (n)
Art. 434. In an action to recover, the property must be identified, and the plaintiff must rely on the
strength of his title and not on the weakness of the defendant's claim. (n)
Art. 435. No person shall be deprived of his property except by competent authority and for public use
and always upon payment of just compensation.
Should this requirement be not first complied with, the courts shall protect and, in a proper case,
restore the owner in his possession. (349a)
Art. 436. When any property is condemned or seized by competent authority in the interest of health,
safety or security, the owner thereof shall not be entitled to compensation, unless he can show that
such condemnation or seizure is unjustified. (n)
Art. 437. The owner of a parcel of land is the owner of its surface and of everything under it, and he can
construct thereon any works or make any plantations and excavations which he may deem proper,
without detriment to servitudes and subject to special laws and ordinances. He cannot complain of the
reasonable requirements of aerial navigation. (350a)
Art. 438. Hidden treasure belongs to the owner of the land, building, or other property on which it is
found.
Nevertheless, when the discovery is made on the property of another, or of the State or any of its
subdivisions, and by chance, one-half thereof shall be allowed to the finder. If the finder is a trespasser,
he shall not be entitled to any share of the treasure.
If the things found be of interest to science of the arts, the State may acquire them at their just price,
which shall be divided in conformity with the rule stated. (351a)
Art. 439. By treasure is understood, for legal purposes, any hidden and unknown deposit of money,
jewelry, or other precious objects, the lawful ownership of which does not appear. (352)