Civil Law 1 Review: PROP ERT Y (De Leon) !

PROPERTY, OWNERSHIP AND • Domino limitado

ITS MODIFICATIONS B) PERSONAL RIGHTS (jus un personam or jus ad rem)

- Right or power of a person to demand from another as a
( DE LEON) definite passive subject, the fulfillment of the latter’s
obligation
Title I — CLASSIFICATION OF PROPERTY - Elements:
• Active subject
PRELIMINARY PROVISIONS • Passive subject
• Object or prestation
Chapter 1 • Juridical or legal tie
IMMOVABLE PROPERTY

ART. 414 REAL RIGHTS PERSONAL RIGHTS

• Thing (cosa) By the number of persons who take part in the legal relation
- Any object that exists and is capable of satisfying some human
needs There is a definite active subject There is a definite active subject
- Includes:
who has a real right against all and a definite passive subject
1. Those already possessed or owned (res alicujus) persons as indefinite passive
2. Those that are susceptible of appropriation subject
• Property By the subject matter
- Any thing which is already the object of appropriation or found
in the possession of man Object is generally a corporeal Always an incorporeal thing
thing
• Requisites of Property
1. Utility By the manner in which the will of the active subject acts
- Capacity to satisfy some human wants
2. Substantivity or individuality Acts directly Acts indirectly through the
- Quality of having existence apart from any other thing promise of the obligor
3. Appropriability
- Susceptibility of being possessed by men By the causes of their creation
- Common things (res communes) are not capable of
Created by “mode” and “title” Created by mere “title”
appropriation in their entirety as such although they may be
appropriated under certain conditions in a limited way
- Things which have no owner (res nullius) because it has not By the modes of their extinction
been appropriated or has been lost or abandoned by the
owner Extinguished by the loss or Survives the subject matter
- Not property when they are not susceptible of appropriation destruction of the thing over
because of physical impossibility (sun and moon) or legal which it is exercised
impossibility (human body while the person is alive
By the nature of the actions arising from the juridical realtion
• Property may be used to denote a thing with respect to which legal
relations between persons exist — the res over the rights may be Directed against the whole Binding or enforceable only
exercised — and the rights with respect to the thing world, giving rise to real actions against a particular person
against third persons (actio in
• Kinds of Rights rem)
A) REAL RIGHTS (jus in re)
- Right or interest belonging to a person over a specific thing
without a definite passive subject against whom such right • Property may be classified as follows:
1. As to Nature
may be personally enforced - real
- Real rights under NCC:
- personal
• Ownership or dominion - mixed
• Surface right 2. As to their Ownership
• Possession - public
• Usufruct - private
• Easement or servitude 3. As to their Divisibility
• Hereditary right - divisible
- The subject mater may be personal property or real property
- If the res of a real right is real property, the right itself is real - indivisible
4. As to their Consumability
property; otherwise, it is personal property - consumable
- Classification based upon dominion
- non-consumable
• Domino pleno 5. As to their Susceptibility of substitution
• Domino menos pleno - fungible

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 Civil Law 1 Review: PROP ERT Y (De Leon) !2

- non-fungible - Pars. 1, 2, 3, 4, 6
6. As to their Alienability 3. By Destination
- within the commerce of man - Placed in an immovable for the utility it gives to the activity
- outside the commerce of man carried therein, such as machinery installed in a building to
7. As to their Existence in time meet the needs of the an industry in the building, and docks
- existing or present on a river
- future - Pars. 4, 5, 6, 7, 9
8. As to their Dependence or importance 4. By Analogy
- principal - So classified by express provision of law because it is
- accessory regarded as united to the immovable property
9. As to their Definiteness or designation
- generic • Lands, buildings, roads, and constructions of all kinds
- specific - A building is immovable provided it is more or less of a
10. As to their Manifestability to the senses permanent structure independent of and regardless of the
- corporeal ownership of the land on which it is erected
- incorporeal • But, a structure which is merely superimposed on the
soil (barong-barong) may be considered movable
• Classification of things into movables or immovables is important • Also, a building or house which is sold to be
because there are some rules applicable to one class only demolished immediately or after a short time is to be
- In private international law, GR is that immovables are regarded as movable
governed by the law of the country in which they are located; • Once the house is demolished, its character as an
movables are governed by the personal law of the owner immovable ceases
- In criminal law, usurpation of authority can take place only with - A building is by itself an immovable property irrespective of
respect to real property; robbery and theft can be committed whether or not said structure and the land on which it is adhered
only against personal property to belong to the same owner (Lopez v. Orosa, 1958)
- In procedure, real actions are brought in the court where the • However, the contracting parties may validly stipulate that
property or any part thereof lies; personal actions are brought in real property be considered as personal. After agreeing to
the court where the defendant/s resides or may be found, or such stipulation, they are estopped form claiming
where the plaintiff/s resides, at the election of the plaintiff otherwise (Serg’s Products, Inc. v. PCI Leasing and
- In contracts, only real property can be the subject matter of real Finance, Inc., 2000)
mortgage and antichresis; only personal property can be the • The view that parties to a deed of chattel mortgage may
subject matter of simple loan or mutuum agree to consider a house as personal property for the
- Donation of an immovable is valid if it is made in a public purpose of said contract “is good only insofar as the
instrument (Art. 749); donation of a movable may be made contracting parties are concerned” (Evangelista v. Alto
orally or in writing unless the value exceeds P5000 in which Surety & Insurance Co., 1958)
case, it must be in a private instrument (Art. 748) • With respect to third persons who are not parties to the
- Determination of prescriptive period depends on whether the contract and especially in execution proceedings, the
property is real or personal house is considered as immovable property (Navarro v.
- Generally transaction involving real property must be recorded Pineda, 1941)
in the Registry of Property to affect third persons - The law makes no distinction as to the ownership of the land on
which the house is built (Makati Leasing and Finance Corp. v.
• Mixed property or semi-movables Wearever Textile Mills, Inc., 1983)
- Things which are strictly neither movables nor immovables but • Where a house stands on a rented land belonging to
partake the nature of both another person, it was held that the house may be the
- Movables (machines, paintings) that are rendered immovable by subject matter of chattel mortgage as personal/movable
reason of their being immobilized by destination property if so stipulated in the document of mortgage, the
- Immovables but treated as movables because they can be validity of the chattel mortgage cannot be assailed by the
transported (plants) or dismantled and moved (house of light parties to the contract of mortgage (Navarro v. Reyes,
materials) to another place without impairing their substance 1983)
- Animals in animal houses, pigeon houses which are classified as • A mortgaged house built on rented land was held to be
immovables though transferable from place to place or they can personal property not only because the deed of mortgage
move by themselves considered it as such, but also because it did not form part
of the land for it is now settled that an object placed in
land by one who has only a temporary right to the same
ART. 415 such as the lessee or usufructuary, does NOT become
• Classes of immovable or real property immobilized by attachment (Davao Sawmill Co., Inc., v.
1. By Nature Castillo)
- It cannot be carried from place to place, like roads, lands and - The fact that the machines were heavy, bolted or cemented on
trees the real property mortgaged does not make them ipso facto
- Pars. 1 and 2 immovable as the parties’ intent has to be looked into
2. By Incorporation • Even if the properties are considered immovable by
- Attached to an immovable in a fixed manner to be an nature, nothing detracts the parties from treating them as
integral part thereof, like buildings, walls or fences, statues, chattels to secure an obligation under the principle of
animal houses estoppel (Tsai v. CA, 2001)

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 Civil Law 1 Review: PROP ERT Y (De Leon) !3

- Roads are considered integral part of the lands property (Mindanao Bus Co. v. City Assessor and
Treasurer)
• Trees, plants, and growing fruits 3. The machinery, etc. must tend directly to meet the needs of
- They are immovable property WHILE THEY ARE ATTACHED the said industry or works
to the land or form an integral part of an immovable - To be immobilized, it must be essential and principal
- Once tress or plants are cut or uprooted, they become movable elements of an industry or works without which, such
except in the case of uprooted timber, which according to industry or works would be unable to function or carry on
Manresa still forms an integral part of timber land the industrial purpose for which it was established
- Trees and plants are immovable by NATURE if they are the - Where movables are merely incidentals, they are not and
spontaneous products of the soil should not be considered immobilized by destination, for
- Trees and plants are immovable by incorporation if they are the businesses can continue or carry on their functions
produced by lands of any kind through cultivation or labor (Art. without such equipments
442) - Electric poles and steel supports or towers of an electric
- For the purposes of attachment, execution, and the chattel company are PERSONAL property for the purpose of
mortgage law, growing fruits or crops have the nature of taxation (Board of Assessment Appeals v. Manila Electric
personal property (Sibal v. Valdez) Co., 1964)
• When growing crops are sold, the transaction is - The immovable character of the objects in par. 5 depends
considered sale of movables because it is understood upon their being destined for use in the industry or works
that they are to be gathered or harvested for delivery carried on in a building or on a piece of land; they may or
and thus, are no longer attached to the land or integral may not be attached to an immovable
parts thereof • The moment they are no longer used or needed in
the industry, they revert to their normal condition
• Everything attached to an immovable in a fixed manner of movables, although they are not separated from
- The attachment must be such that it cannot be separated from the immovable
the immovable without breaking the material or deterioration of
the object • Animal houses, pigeon houses, beehives, fish ponds or breeding
- Thing included are called rex vinta, such as walls, canals and places of similar nature
aqueducts - The constructions must permanently form part of the land and
- Immovable by incorporation or attachment so intended by the owner
- The material fact of incorporation or separation is what - For the purposes of criminal law and alienation, animals are to
determines the condition of theses objects; so that, as soon as be regarded as personal property
they are separated from the tenement, they recover their
condition as movables, IRRESPECTIVE of the intention of the • Fertilizers actually used on a piece of land
owner - Immovable by destination
- All objects placed by human agency or under the surface with - It is only when they form part of the land
the intention of permanent annexation become part of the land - Fertilizers kept in a barn are not immovable; fertilizers already
and lose their identity as movables or chattels on the land for cultivation, but sill in containers, should still be
- Physical attachment, WITHOUT intent of permanent regarded as movable property
annexation, is not itself enough
• Mines, quarries, and slag dumps
• Statutes, reliefs, paintings, or other objects for use or ornamentation - Must remain unsevered from the soil
- Objects must be placed on the immovable by the OWNER of - Once severed, they become movables (minerals)
the latter, although not necessarily by him personally
- In case of immovables by incorporation, such as houses, trees • Waters, wither running or stagnant
and plants, Art. 415 does NOT require that the attachment be - Sea (as to the part which may be appropriated), river, lake,
made by the owner of the land canals and aqueducts
• The only criterion is the UNION or incorporation with
the soil • Docks and structures
- The main consideration is the intention to attach the objects - Constructions that are united to “waters either running or
permanently to the immovable stagnant” in a fixed and permanent manner are also immovables
- Carpets nailed to the floor are immovable but a picture hanging
on the wall is movable unless the physical attachment is such as • Ship or vessels
to reveal an intention to make it permanent - Although considered personal property, they partake of the
nature and condition of real property on account of their value
• Machinery, receptacles, instruments, or implements for an industry and importance in the world of commerce
or works; requisites
1. The machinery, etc. must be placed by the owner of the • Contracts for public works and servitudes and other real rights over
tenement or his agent immovables
2. The industry or works must be carried on in a building or a - A real estate mortgage which is not registered in the Registry of
piece of land Property cannot be classified as immovable property, although it
- A transportation business is not carried on in a building is valid as between the contracting parties
or on a specified land. Hence, equipment to repair or
service a transportation business may not be deemed real

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 Civil Law 1 Review: PROP ERT Y (De Leon) !4

Chapter 2 • Property of Public Dominion

MOVABLE PROPERTY 1. Property intended for public use and others of similar
character
ART. 416 - ART. 417 2. Property which is not for public use but intended for some
• Growing crops are considered personal property under Chattel specific public service
Mortgage Law 3. Property, even if not employed for public use or public
service, intended for the development of the national wealth
• A machinery placed on a tenement by a lessee or usufructuary who
did not act as the agent of the tenement owner is personal property • Charging of fees to the public does not determine the character of
the property
• Tests to determine whether a particular object is movable property
or not • The mere reclamation of certain foreshore land and submerged areas
1. Whether the property can be transported or carried from by a government agency does not convert these inalienable natural
place to place resources of the state into alienable lands of public domain. There
2. Whether such change of location can be made without must be a law or presidential proclamation officially classifying
injuring the immovable to which the object may be attached these reclaimed lands which are lands of the public domain as
3. Whether the object does not fall within any of the 10 cases alienable or disposable (Chavez v. PEA, 2003)
enumerated in Art. 415
• Property of public dominion are outside the commerce of men
1. They cannot be sold, leased or otherwise be the subject
ART. 418 matter of contracts
• Consumable goods cannot be the subject matter of a contract of 2. They cannot be acquired by prescription not even by
commodatum unless the purpose of the contract is not the municipalities as against the State
consumption of the object 3. They cannot be encumbered, attached, or be the subject to
levy and sold at public auction to satisfy a judgment
• In simple loan, the subject matter is money or other consumable 4. They cannot be burdened with easements
thing 5. They cannot be registered under the land registration law
and be the subject of a Torrens title
• Fungible: if it can be substituted by another thing of the same kind,
quality and quantity • The right of reversion or reconveyance to the State of public
property registered and which is not capable of private appropriation
• Non-fungible: not replaceable in such equivalents or acquisition does not prescribe

Chapter 3 PUBLIC LANDS GOVERNMENT LANDS

PROPERTY IN RELATION TO THE PERSON TO WHOM IT Used to describe so much of the Includes not only public lands,
BELONGS national domain under the but also other lands of the
legislative power of Congress government already reserved or
ART. 419 devoted to public use, or subject
• Property classified according to ownership to private rights, and patrimonial
1. Public dominion lands
- Property owned by the State (or its political subdivisions)
in its public or sovereign capacity and intended for public Includes only lands as are
use thrown open to private
- Arts. 420, 423, 424 appropriation and settlement
2. Private ownership
- Property owned by:
• The State in its private capacity known as • The government owns real estate which is part of the “public lands”
Patrimonial Property (Arts. 421 - 424); and and other real estate which is not part thereof (Montaño v. Insular
• Private persons, either individually or collectively Government, 1909)
(Art. 425)
• Public agricultural lands are not subject to alienation, unless it is
• Property is presumed to be State property in the absence of any reclassified and alienated by the State to a private person
showing to the contrary (Salas v. Jarencio, 1974)
• Regalian Doctrine
• Public dominion does not import the idea of ownership
- All lands not otherwise appearing to be clearly within private
- It is not owned by the State but simply under its jurisdiction and ownership acquired by anyone through purchase or grant or any
administration for the collective enjoyment of all people other mode of acquisition are presumed to belong to the State
- It is intended for the common and public welfare and so it
cannot be the object of appropriation
- Outside the commerce of men ART. 421
• Patrimonial property is the property of the State owned by it in its
private or proprietary capacity
ART. 420

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- It is the property over which the State has the same rights, and
of which it may dispose, to the same extent as private
individuals according to laws and regulations
- It may be acquired by private individuals or juridical persons
through prescription
- It can be the object of an ordinary contract

ART. 422
• Provision is not self-executing
- There must be a formal declaration by the executive or possibly
legislative department that the property of the State is no longer
needed for public use or for public services before it can be
classified as patrimonial or private property of the State
(Ignacio v. Dir. of Lands, 1960)

• Occupation of lands of public domain in the concept of owner, no

matter how long, cannot ripen in ownership and be registered as a
title

• In case of provinces, cities, and municipalities, the conversion must

be authorized by law

ART. 423 - ART. 424

• Arts. 423 and 424 speak of property for PUBLIC USE, indicating
that the property fort PUBLIC SERVICE are patrimonial; property
of the Stat intended for public service, without being for public use,
are property of public dominion

• Political subdivisions have no authority to control or regulate the

use of public properties such as roads and parks unless specific
authority is vested upon them by Congress

• If the property is owned by the municipality in its public and

governmental capacity, the property is public and Congress has
ABSOLUTE control over it. But if the property is owned in is
private or proprietary capacity, then it is PATRIMONIAL and
Congress has no absolute control (Province of Zamboanga Del
Norte v. City of Zamboanga, 1967)
- To be considered public, it is enough that the property be held
and devoted for governmental purposes like local
administration, public education, public health, etc.
- Buildings follow the classification of the lands on which they
are built

ART. 425
• Refers to all property belonging to private persons, individually or
collectively, and those belonging to the State and any of its political
subdivisions which are patrimonial in nature

PROVISIONS COMMON TO THE THREE PRECEDING

CHAPTERS

ART. 426
• The purpose is to protect the interest of the transferor by preventing
the conveyance of objects which are not intended to be transferred

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Title II. — OWNERSHIP

• In ejectment suits, the only issue is who between the contending
Chapter 1 parties had the better right to possess the contested property,
OWNERSHIP IN GENERAL independent of any claim of ownership
- Issue: Possession de facto
ART. 427 - The plaintiff need only to allege and prove prior possession de
• Ownership facto and undue deprivation thereof
- Independent right of a person to the exclusive enjoyment and
control of a thing including its disposition and recovery subject • Action to recover possession is filed after the expiration of one year
only to the restrictions or limitations established by law and the from the occurrence of the cause of action or one year from the
rights of others unlawful withholding of possession of the realty (Cruz v. Torres,
1997)
• Beneficial Ownership - Issue: Possession de jure independently of title
- Right to the enjoyment of property in one person where the
legal title is in another • In action to recover based on ownership, the issue involved is
ownership which ordinarily includes possession
• Naked Ownership
- The enjoyment of all benefits and privileges of ownership, as • In action for reconveyance, the decree of registration is respected as
against the bare title to property incontrovertible but what is sought is the transfer of the property
which has been wrongfully or erroneously registered in another
person’s name, to its rightful and legal owner, or to one with a better
ART. 428 right (De la Cruz c. CA, 1998)
• Attributes of ownership - An action for damages, not reconveyance, is the proper remedy
1. Right to possess if the party has passed into the hands of innocent party for value
2. Right to use and enjoy
3. Right to the fruits • A person entitled to recover possession of property from another
4. Right to the accessories who is in actual possession thereof, is ordinarily not allowed to avail
5. Right to consume the thing by its use himself of the remedy of injunction but must bring the necessary
6. Right to dispose or alienate action for recovery of possession (Idolor v. CA, 2001)
7. Right to vindicate or recover - The writ of injunction is an equitable relief and the
determination of title is a legal remedy
• Ownership is different from possession; right to possess does not - The sole object of a preliminary injunction is to preserve the
always include right to use status quo until the issues of the case can be heard
- A judgment of ownership does not necessarily include - But the court may grant preliminary injunction to prevent the
possession as a necessary incident (Jabon v. Alo, 1952) defendant from committing further acts of dispossession against
• May only be invoked in instances where the actual the plaintiff
possessor has some rights which must be respected
- Where the ownership of a property was decided in a judgment, • Where the actual possessor of the property who is admittedly the
the delivery of possession should be considered included in the owner, seeks the protection from repeated or further intrusions into
decision where the defeated party’s claim to the possession is his property by a stranger, the writ of injunction may be issued to
based on his claim of ownership or such party has not shown restrain the acts of trespass and illegal interference with his
any right to possess the property independently of his claim of possession (Rustia v. Franco, 1967)
ownership which was rejected (Perez v. Evite, 1961)
• However, an exception exists where the actual • The writ of possession is to place the winning party in possession of
possessor has shown a valid right over the property the property covered by such decree
enforceable even against the owner thereof
• The writ of execution does not necessarily carry with it the right to a
• Action to recover personal property writ of possession. The latter compliments the former only when the
- Replevin, both a form of a principal remedy and a provisional right of possession or ownership has been validly determined in a
remedy case directly relating to either

• Action to recover real property • Limitation on the right of ownership

- Forcible entry and unlawful detainer (accion interdictal) 1. Those imposed in general by the State in the exercise of the
- Action to recover possession (accion publiciana) power of taxation, police power, and power of eminent
- Action to recover possession based on ownership (accion domain (Art. 435);
reivindicatoria) 2. Those imposed by law such as legal easement and the
- These actions are in personam and the judgment binds only the requirement of legitime in succession
same parties and their privies or successors-in-interest in the 3. Those imposed by the grantor of the property on the grantee,
same action arising from the same cause either by contract or by last will
4. Those imposed by the owner himself, such as voluntary
• In FE and UD, actual or physical occupation is not always necessary easement, mortgage, pledge, and lease
in order that possession may be acquired 5. Those arising from conflicts of private rights such as those
- One need not be in actual possession of the property at all times which take place in accession continua
to be considered in possession

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6. Limitations provided by the Constitution, particularly the to him, unless the owner would have been liable under
prohibition against the acquisition of private lands by aliens the law for the damage

ART. 429 ART. 433

• Principle of Self-help, requisites • Applies to both movable and immovable property
1. The person defending the property must be the owner or
lawful possessor; hence, if his possession is wrongful, the • Requisites
right to use force cannot be availed of; 1. There must be actual (physical or material) possession of the
2. Must use only such force as may be reasonably necessary to property; and
repel or prevent an invasion or usurpation of his property; 2. The possession must be under the claim of ownership
otherwise, he shall be liable for damages
3. Can only be exercised at the time of an actual or threatened
dispossession or immediately after the dispossession to ART. 434
regain possession • In an action to recover, the person who claims that he has a better
- Once delay has taken place, even if excusable the owner right to the property must satisfactorily prove both ownership and
or lawful possessor must resort to judicial process for the identity
recovery of the property - The party must fix the identity of the land claimed by describing
4. The person against whom force is employed has acted or is the location, area and boundaries thereof
acting wrongfully or unlawfully; hence, the right of self-help
is not available against a sheriff attaching property in lawful • Where there is a conflict between the area and the boundaries of a
exercise of his functions land, the latter prevails

**Art. 432 is an exception to Art. 429 • In an action to recover possession of a property, under an alleged
title of ownership, the plaintiff must rely upon the strength of his
Note: The principle of self-defense in RPC covers not only defense of own title and not upon the weakness of that of the defendant, and
a man’s property but also extends to his rights, including right of must establish the allegations by preponderance of evidence
property. (Misamis Lumber Co. v. Director of Lands)

• There fact of working over a land without expressing the concept in

ART. 430 which the land was being worked, in the absence of any other proof,
• The limitation to this right is the right of others to existing is not sufficient to support an action to recover
servitudes imposed on the land or tenement
• Tax declarations and tac receipts are merely indicia of a claim of
ownership; they do not, by themselves, conclusively prove
ART. 431 ownership
• It does not apply where the owner of a thing makes use of it in a - But they become strong evidence of ownership of land acquired
lawful manner for then it cannot be said that the manner of the use is by prescription when accompanied by proof of actual
such “as to injure the rights of a third person” possession of the property for a sufficient time or supported by
- But an owner of land will not be permitted to use it in a other effective proof (San Miguel Corp. v. CA, 1990)
particular way with no other purpose than to damage his
neighbor, such as by the erection of a high fence out of spite to • The purpose of an annotation of an adverse claim is to serve as a
obstruct the light and view of his neighbor notice and warning to third parties dealing with a real property that
someone is claiming an interest on the same or a better right than a
registered owner (Garbin v. CA, 1996)
ART. 432
• GR: A person cannot interfere with the right of ownership of another • An original certificate of title indicates true and legal ownership of a
• EXCPN: State of Necessity (Art. 432) private land and should be accorded great weight as against tax
- But it does not exempt the offender from civil liability declarations and/or tax receipts
- Embodies the principle of “the least evil” rule

• Requisites ART. 435

1. The interference must be necessary to avert an imminent • Power of Eminent Domain is the right or power of the State or of
danger and the threatened damage to the actor or a third those to whom the power has been lawfully delegated to take private
person property for public use upon payment to the owner of just
- If interference is disproportionate to the necessity of compensation
averting the threatened danger of damage, it becomes
unlawful or wrongful • Requisites of ED:
2. The imminent danger or threatening damage, compared to 1. Taking must be done by competent authority
the damage arising to the owner from the interference, must 2. It must be for public use
be much greater 3. Owner must be paid just compensation
- He may demand from the person benefited (not 4. Requirement of due process of law must be observed
necessarily the actor) indemnity for the damage made

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 Civil Law 1 Review: PROP ERT Y (De Leon) !8

• Public use may be identified with “public benefit”, “public utility” • The right of the owner to a parcel of land to construct any works or
or “public advantage” make any plantations and excavations on his land is subject to
- That only a few actually benefit from the expropriation of 1. Existing servitudes or easements
private property does not diminish its public use as long as 2. Special laws
public benefit or advantage is present although it may be 3. Local ordinances
indirect (Phil. Columbian Assn. v. Panis) 4. Reasonable requirements of aerial navigation — Designed to
place a limitation on the legal theory that the landowner is
• The question whether a particular use is a public one is ultimately a entitled to the space over the whole space above his land
judicial question 5. Rights of third persons
- But where the Congress has specified the public purpose for
which the authority to expropriate is granted, the courts are • If a person is the owner of agricultural land in which minerals are
without jurisdiction to inquire into the necessity of such purpose discovered, his ownership of said land does not give him the right to
- If the authority os a general one, courts have the power to extract or utilize the said materials without the permission of the
inquire into the issue of whether the particular expropriation is State to which said minerals belong
indeed for public use or not - Once minerals are discovered in the land, the same is converted
to mineral land
• Just compensation means the full and fair equivalent for the loss - It cannot be classified as mineral underneath and agricultural on
sustained, which is the measure of the indemnity, not whatever gain the surface, subject to separate claims of title, for the rights over
would accrue to the expropriating entity (JM Tuason & Co., Inc. v. land could not be used for both mining and non-mining
Land Tenure Administration, 1970) purposes simultaneously (Republic v. CA, 1988)

• Without prompt payment, compensation cannot be considered “just” • The landowner’s right extends to such height or depth where it is
for the owner is made to suffer the consequence of being possible for him to obtain some benefit or enjoyment, and it is
immediately deprived of his property while being made to wait extinguished beyond such limit are there would be no more interest
before actually receiving the amount necessary to cope with his loss protected by law (National Power Corp. v. Ibrahim, 2007)
(Coscolluela v. CA, 1988)

• Procedural and substantive due process must be observed ART. 438

• Hidden treasure found by the finder on his land, building, or other
• If he owner of the land allows a public utility company to occupy property, belongs entirely to him
his land, without objection, he is considered to have waived his right
to the possession thereof and may sue only for just compensation • If things found be of interest to science or the arts, the State may
- The primary reason for denying to the owner the remedies acquire them at their just price — a special case of eminent domain
usually afforded to him against usurpers is the irremedial injury
which would result to the railroad company and to the public in • “and by chance” are intended to mean “and by good luck”
general (Manila Railroad Co. v. Paredes, 1915) - They do not preclude a finder who purposely hunts for hidden
treasure
• While the power of eminent domain is usually and ordinarily - But one who looks for hidden treasure on the property of
delegated to all such enterprises, and may be considered essential to another should have the latter’s permission
their proper development and efficiency, it is theirs only by grant - A trespasser is NOT entitled to any share in the hidden treasure
from the state and within the limits prescribed he may find

• If a person has been employed precisely to look for hidden treasure,

ART. 436 he is not a trespasser but he is not also entitled to any part of the
• An holder of property, however absolute and unqualified be his title, treasure which may be found unless there is agreement to the
holds it under the implied condition that his manner of using shall contrary
not be injurious to the enjoyment of others having an equal right to - His only right is to be paid his salary or wage
the enjoyment of their property, nor injurious to the community - Deemed a stranger but not a trespasser
- sic utero tuo ut alienum non laedas — relates to the use and
enjoyment, and not the ownership of property • If the treasure is found by the lessee or usufructuary on the land or
tenement, he gets 1/2; if found by another person, 1/2 goes to him
• A prohibition on the use of property, for purposes that are declared and the other half to the owner of the property in which it was found
by valid legislation to be injurious to health, morals, or safety of the
community cannon be deemed a taking or an appropriation of
property for the public benefit ART. 439
• Requisites
• Unlike eminent domain, the person affected by the exercise of 1. It consists of money, jewelry or other precious objects
police power is not entitled to financial compensation, unless he can - also movables which are similar to money or jewelry
show that the condemnation or seizure is unjustified 2. Its existence is hidden and unknown
- But he derives compensation through his altruistic recognition - If the treasure is purposely hidden, it is neither hidden
that the just restraint is for the public good not unknown insofar as the owner is concerned
- He can recover it from the finder unless he has
abandoned the property of considered it lost without
ART. 437 hope of ever finding it

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 Civil Law 1 Review: PROP ERT Y (De Leon) !9

3. Its lawful ownership does not appear

- Where the things discovered do not qualify as a
hidden treasure, the rules on occupation, as a mode of
acquiring ownership, would be applicable

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 Civil Law 1 Review: PROP ERT Y (De Leon) !10

Chapter 2 4. Pledge, the pledgee is entitled to receive the fruits, income,

RIGHT OF ACCESSION dividends, or interests which the pledge earns or produces
but with the obligation to compensate or set-off what he
General Provisions receives with those which are owing him (Art. 2102, par. 7)
5. Antichresis, the creditor acquires the right to receive the
fruits of an immovable of his debtor, but with the obligation
ART. 440 to apply them, first, to the interest of owing, and then to the
• Accession is the right of the owner of a thing, real or personal, to principal amount of the credit (Art. 2132)
become the owner of everything which is produced thereby, or
which is incorporated or attached thereto, either naturally or
artificially ART. 442
• The young and other products of animals are considered natural
**Art. does not apply to property that belongs to the public domain fruits whatever care of management, scientific or otherwise, may
have been given by man since the law makes no distinction
- The owner of a female cow is presumed to be the owner of its
ACCESSION ACCESSORY young by the right of accretion
Fruits of, or additions to, or Things joined to, or included • Under the rule of partus sequitur ventrem, the owner of female
improvements upon, a thing (the with, the principal thing for the animals would also belong the young of such animals although this
principal) latter’s embellishment, better right is lose then the owner mixes his cattle with those of another
use, or completion (Shari Valley Estates, Inc. v. Lucasan, 1955)
- This rule merely continues the ownership which the owner of
Not necessary to the principal Accessory and principal must go the female had while the young was still in the womb of the
thing together mother

• Accession is NOT a mode of acquiring ownership; it is merely a • Grass is ordinarily natural fruit but is considered an industrial fruit
consequence or incidence of ownership when it is cultivated as food for horses

• Kinds of Accession • Standing trees are not fruits although they produce fruits themselves
1. Accession discreta is the extension of the right of ownership but they may be considered as industrial fruits when they are
of a person to the products of a thing which belongs to such cultivated or exploited to carry on an industry
person
- It takes place with respect to natural fruits, industrial • A tenant who continues occupying a land after the expiration of the
fruits and civil fruits lease contract inspite of the demand made upon them to vacate may
2. Accession continua is the extension of the right of ownership be considered a usurper and may be sued not only for the return of
of a person to that which is incorporated or attached to a the land but also the natural fruits as well as the civil fruits
thing which belongs to such person
- With respect to real property • When a real estate is sold under execution, the judgment debtor in
• accession industrial — building, planting or possession is entitled to remain in possession an to collect rents and
sowing profits during the period fixed by law for redemption and he cannot
• accession natural — alluvion, avulsion, change of be required by the purchaser to pay rent to the said period (Rosa v.
rover course, and formation of islands Verzosa, 1913)
- With respect to personal property
• conjunction or adjunction • A dividend, whether in the form of cash or stock, is income or fruit
• commixtion or confusion for it is declared only out of the profits of a corporation and not out
• specification of its capital (Bachrach v. Seifert, 1950)

• A bonus paid by the mortgage-debtor to another who had mortgaged

SECTION 1. — Right of Accession with Respect to What is his land to secure the payment of the debtor’s obligation to a bank,
Produced by Property is not a civil fruit of the mortgaged property; it is not income
derived from the property but a compensation granted for the risk
ART. 441 (accession discreta) assumed by the owner of the property (Bachrach Motor Co. v.
• GR: All fruits belong to the owner of a thing Talisay-Silay Milling Co., 1931)
• EXCPNS: In the following cases, a person, other than the owner of
a property, owns the fruits thereof
1. Possession in good faith by another, in which case, the ART. 443
possessor in GF is entitled to the fruits received before the • The article applies where:
possession is legally interrupted (Art. 546) 1. The owner of property recovers the same from a possessor
2. Usufruct, the usufructuary is entitled to all the fruits of the and the possessor had not yet received the fruits although
property on usufruct (Art. 566) they may have already been gathered or harvested; or
3. Lease of rural lands, the lessee is likewise entitled to the 2. The possessor has already received the fruits but is ordered
fruits of the land (Art. 1680) with the owner getting the civil to return the same to the owner
fruits in the form of rents paid by the lessee (Art. 1654)

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 Civil Law 1 Review: PROP ERT Y (De Leon) !11

- The owner is obliged to reimburse the previous possessor for well as expenses for cultivation, gathering, and
the expenses incurred by the latter for their production, preservation
gathering, and preservation 4. Effect where both parties are in BF — the BF of one
• DOES NOT INCLUDE IMPROVEMENTS neutralizes the BF of the other
- Where the parties are equally in BF, they shall both be
• The owner cannot excuse himself from his obligation by alleging considered as bing in GF
bad faith on the part of the possessor because Art. 433 makes no 5. Principle against unjust enrichment
distinction and because the expenses made were necessary without
which the owner would not have received the fruits • “Repairs” implies the putting of something back into the condition
which it was originally and not an improvement in the condition
• The article is applicable when the fruits or crops have already been thereof
gathered or harvested when the owner recovers possession
**For Art. 445 to be applicable, OWNER OF THE LAND MUST BE
• Good faith or bad faith is MATERIAL where the fruits are still KNOWN
pending (ungathered) at the time he gave up his possession - Otherwise, no decision can be rendered on the ownership of the
things planted, built, or sown until a hearing shall have been
**CW ARTS. 544 to 551 accorded to whomsoever is entitled thereto (Binondo v. Mier)

• Where the expenses exceed the value of the fruits, the owner must • Under Arts. 445 - 456 on industrial accession, such accession is
pay the expenses just the same because the law makes no distinction limited either to buildings erected on the land of another (Art. 445)
- He who is entitled to the benefits and advantages must assume or building constructed by the owner of the land with materials
the risks and losses owned by someone else (Art. 449)
- Recourse to the rules of accession are totally unnecessary and
inappropriate where the ownership of land and of the materials
ART. 444 used to build thereon are concentrated on one and the same
• Under Art. 544, civil fruits are deemed to accrue daily and belong to person
the possessor in good faith in that proportion

• Natural and industrial fruits while still pending (ungathered) are real
property

• Plants which produce only one crop then perish (rice, corn, sugar)
— deemed manifest or existing from the time the seedlings appear
from the ground

• Plants and trees which live for years and give periodic fruits
(mangoes, coconuts, oranges) — fruits are not deemed existing until
they actually appear on the plants or trees

• Animals are deemed existing at the beginning of the maximum

ordinary period of gestation

• With respect to fowls, the fact of appearance of the chicks should

retroact to the beginning of incubation

• The young of animals are considered natural fruits only if existing

in the womb of the mother, though unborn

SECTION 2. — Right of Accession with Respect to Immovable

Property

ART. 445 (accession continua)

• Principles
1. Accession follows the principal — owner of the latter
acquires ownership of the former
2. Incorporation of union must be intimate — it must be such
that the removal or separation cannot be affected without
substantial injury to either or both
3. Effect of GF and BF — GF exonerates a person from
punitive liability but BF may give rise to dire consequences
- A person, whether in GF or BF, is entitled to
reimbursement for necessary expenses of preservation as

Abesamis, Austinne Joyce D.