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Property – Possession (Art. 523 – Art.

561) 1
2015

Title V. - POSSESSION 2. Deliberate intent to possess


CHAPTER 1 (animus possidendi)
POSSESSION AND THE KINDS 3. Possession by virtue of one’s
THEREOF own right (because he is the
owner, or a right derived from the
Possession is NOT ownership. owner, i.e. lessee)
Art. 523. Possession is the holding of a
thing or the enjoyment of a right. (430a) Classes of Possession:
1. NAME (Art 524)
Both Fact (because it exists) and a. In one’s own name;
Right (From the moment it exists, it b. In that of another.
becomes a right.) 2. CONCEPT [Art 525]
a. Owner (En Concepto de
RIGHT TO POSSESSION (Jus Possidendi) dueno)
– incident to ownership. (I own a house, I b. Holder
have the right to possess it. 3. How
RIGHT OF POSSESSION (Jus a. Good Faith
possessionis) – Independent from b. Bad Faith
ownership (ex: possession by virtue of
lease agreement Art. 524. Possession may be exercised
in one's own name or in that of another.
Degrees of Possession: (413a)
1. MERE HOLDING W/O ANY
RIGHT (Ex: possession by a I possess my land. .: I am in
thief) possession in one’s own name.
2. possession WITH JURIDICAL How about an AGENT? The agent
TITLE or juridical possession (Ex (name in that of another) is not truly in
Possession that of a lessee) possession. It is the owner who possesses
3. POSSESSION WITH JUST through the agent.
TITLE or real possessory right
(Ex: A (in GF) bought from Possession in another’s name:
B(Thief) a bag owned by C) 1. Voluntary – Possession by agent
4. POSSESSION WITH A TITLE by virtue of an agreement
OF DOMINIUM or ownership (Ex: 2. Necessary – Mother possesses a
A bought from B(true owner) a thing for his unborn child.
car) 3. Unauthorized – like in
Negotiorum Gestio
Requisites of possession:
1. Holding or control of the thing, If a tenant is ousted by an intruder, who can
which may be actual (He is in bring an action? Both Owner and tenant.
control of the car) or constructive In ejectment cases that the
(he actually possess only ¼ of only issue to be resolved therein is
the land but considered as who is entitled to the physical or
constructively possessing the material possession of the premises,
whole 5has land). or possession de facto, independent
of any claim of ownership that either
Property – Possession (Art. 523 – Art. 561) 2
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party may set forth in their pleadings. holder, but with regard to the right
If petitioner can prove prior to use and right to the fruits, U is in
possession in himself, he may the concept of an owner.
recover such possession from even
the owner himself . Whatever may Art. 526. He is deemed a possessor in
be the character of his prior good faith who is not aware that there
possession, if he has in is favor exists in his title or mode of acquisition
priority of time, he has the security any flaw which invalidates it.
that entitles him to stay on the He is deemed a possessor in bad
property until he is lawfully ejected faith who possesses in any case
by a person having a better right by contrary to the foregoing.
either accion publiciana or accion Mistake upon a doubtful or
reindivicatoria. difficult question of law may be the
De Luna was able to prove basis of good faith. (433a)
prior possession over the property. This article can only be applied if there is a
(De Luna vs CA, 1992) flaw.

Art. 525. The possession of things or Bad Faith is Personal. Just because
rights may be had in one of two a person is in bad faith does not necessarily
concepts: either in the concept of mean that his successors-in-interest are
owner, or in that of the holder of the also in bad faith. As a matter of fact, a child
thing or right to keep or enjoy it, the or heir may even be presumed in good
ownership pertaining to another faith, notwithstanding the father’s bad faith.
person. (432) (Sotto v. Enage, [CA] 43 O.G. 5057)

In the concept of an owner is the Mistake upon a doubtful or difficult question


possession that may ripen into ownership. of law (provided that such ignorance is not
One who claims to be and acts as if he is gross and therefore inexcusable) may be
the owner, whether in GF or BF. the basis of good faith. (Kasilag v.
In the concept of a holder is the Rodriguez, 69 Phil. 217)
possession that will NEVER RIPEN INTO
OWNERSHIP. Art. 527. Good faith is always presumed,
Ex: and upon him who alleges bad faith on
1. Tenant the part of a possessor rests the burden
2. Usufructuary of proof. (434)
3. Depositary
4. Bailee in commodatum If no evidence is presented proving bad
BUT: with regard to the thing itself, faith, the presumption of good faith
they are in the possession in the remains. (Sideco v. Pascua, 13 Phil. 342).
concept of a holder. With regard to
the respective rights, they are in Art. 528. Possession acquired in good
the concept of owner. faith does not lose this character except
Ex: U (usufructuary) possesses the in the case and from the moment facts
land of O (owner) by virtue of a exist which show that the possessor is
usufruct agreement. The land is not unaware that he possesses the thing
possessed by U in the concept of a improperly or wrongfully. (435a)
Property – Possession (Art. 523 – Art. 561) 3
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possessor who was also the


Possession in Good Faith is Converted to possessor at previous time, has
Possession in Bad Faith continued to be in possession
(a.) From the moment facts exist during the intervening time,
showing the possessor’s knowledge unless there is proof to the
of the fl aw, from that time should he contrary.”
be considered a possessor in bad Art. 542 Possession of movables with real
faith. (Art. 528). property
(b.) It does not matter whether the Art. 543 Exclusive possession of common
“facts” were caused by him or by property
some other person.

When a contract of sale is void, the Art. 530. Only things and rights which
possessor is entitled to keep the fruits are susceptible of being appropriated
during the period for which it held the may be the object of possession. (437)
property in good faith, which good faith of Only those things and rights which
the possessor ceases when an action to are susceptible of being appropriated
recover possession of the property is filed (PROPERTY).
against him and he is served summons The following cannot be appropriated
therefor. (Development Bank of the Phils. v. and hence cannot be possessed: property
Court of Appeals, 316 SCRA 650 (1999)) of public dominion, res communes,
easements (if discontinuous or non-
Art. 529. It is presumed that possession apparent), things specifically prohibited by
continues to be enjoyed in the same law.
character in which it was acquired, until
the contrary is proved. (436)
CHAPTER 2
Presumption on the CONTINUITY ACQUISITION OF POSSESSION
OF CHARACTER OF POSSESSION
whether in good faith or bad faith — “It is HOW POSSESSION IS ACQUIRED
presumed that possession continues to be Art. 531. Possession is acquired by the
enjoyed in the same character in which it material occupation of a thing or the
was acquired, until the contrary is proved.’’ exercise of a right, or by the fact that it
is subject to the action of our will, or by
Other presumptions: the proper acts and legal formalities
Art. 527 Good Faith established for acquiring such right.
Art. 529 Continuity of Character of (438a)
Possession
Art. 533 Non Interruption of possession Ways of acquiring possession
Art. 541 Just title  To be considered in possession, one
Art. 561 Non interruption of possession of need not have actual or physical
property unjustly lost but legally occupation of a thing all times. There
recovered are three ways of acquiring possession,
Art. POSSESSION DURING namely:
1138[2] INTERVENING PERIOD — “It is
presumed, that the present
Property – Possession (Art. 523 – Art. 561) 4
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1. By the material occupation in some other capacity, such as that


(detention) or exercise of a right of lessee, pledgee, or depositary.
(quasi-possession);
2. By the subjection of the thing or Subject of the action of will
right to our will (does not require  The second method of acquisition is so
physical detention); and broad in scope that it practically covers
3. By proper acts and legal all means of acquiring possession.
formalities established for  What the law contemplates is a distinct
acquiring such right of cause of acquiring possession and not
possession or CONSTRUCTIVE merely an effect.
POSSESSION (ex: donation,  It refers more to the right of possession
succession, execution of public than to possession as a fact.
instruments, possession by a sheriff  Examples of which are these kinds of
by virtue of court order). constructive delivery:
 The modes of acquiring ownership can 1. Tradicion longa manu, which is
be seen in Article 712. effected by the mere consent or
agreement of the parties, as when
Material occupation or exercise of right the vendor merely points to the thing
1. With respect to things – the law requires sold
material occupation as one of the 2. Tradicion simbolica, which is
modes of acquiring possession. effected by delivering an object such
2. With respect to rights – since rights are as a key where the thing sold is
intangible and cannot logically be stored or kept
occupied, what is acquired is the
exercise of a right. For example, Proper acts and legal formalities
possession of a servitude of way, which  This last method of acquiring
is a right, is acquired by the exercise of possession refers to acquisition by
the right (by passing over the servient virtue of a just title such as when
land) property is transmitted by succession,
donation, contract, or execution of a
Material occupation by delivery public instrument, or when possession is
 The material occupation of a thing as a given by the sheriff to the highest bidder
means of acquiring possession may at a public auction, or pursuant to a writ
take place by actual or constructive of execution.
delivery. Constructive delivery includes:  Unless there is a stipulation to the
1. Tradicion brevi manu which takes contrary, the execution of a sale thru a
place when one already in public instrument shall be equivalent to
possession of a thing by a title other the delivery of the thing. But there is no
than ownership continues to possess delivery notwithstanding the execution
the same under a new title, that of of the instrument, where the purchaser
ownership. cannot have the enjoyment and make
2. Tradicion constitutum possessorium use of the thing sold because such
which happens when the owner enjoyment and use are opposed or
continues in possession of the prevented by another.
property alienated not as owner but  Under Article 538, possession as a fact
cannot be recognized at the same time
Property – Possession (Art. 523 – Art. 561) 5
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in two different personalities except in Pajuyos absence did not affect his
the cases of co-possession actual possession of the disputed
 A sale with pacto de retro transfers the property. Possession in the eyes of the
legal title to the vendee, and in the law does not mean that a man has to
absence of an agreement to the have his feet on every square meter of
contrary, carries with it the right to the the ground before he is deemed in
possession of the property sold. possession. One may acquire
possession not only by physical
ESSENTIAL REQUIREMENTS FOR occupation, but also by the fact that a
POSSESSION thing is subject to the action of ones will.
1. The corpus or the thing physically Actual or physical occupation is not
detained; always necessary. (Pajuyo vs CA)
2. The animus or intent to posses
whether evidences expressly or 1. Rizal - Registration
impliedly Cement - Applicant presented
Co. v. witnesses
Case doctrines Villareal - Opposition presented tax
Possession alone is not sufficient to declaration
acquire title to alienable lands of the - Whether applicant in
public domain because the law requires actual possession? YES
possession AND occupation. - Credence to the
Possession is broader than testimony of the
occupation because it includes witnesses
constructive possession. When the law - Right to possess flows
adds the word occupation, it seeks to from ownership
delimit the all encompassing effect of - Possession acquired by
constructive possession. One’s material occupation of
possession must not be a mere fiction. the thing
Acutla possession of a land consists in - Tax dec, survey plan are
the manifestation of acts of dominion not enough to prove
over it of such a nature as a party would possession
naturally exercise over his own property. 2. Wong - Deed of sale
(Ong v Republic) v. Carpio - Planted
- Did not constituted house
Possession cannot be acquired thereon
through force or violence. To all intents - Knew there where
and purposes, a possessor, even if laborers there, happy
physically ousted, is still deemed the there were people
legal possessor. (Cequena v Bolante) - Wong went to the land
Pajuyo and Guevarra were and tried to register it
squatters, hence in pari delicto. (also built a house and
However the application of the pari fenced)
delicto rule is not available in cases of - Mercado went to the land
forcible entry and unlawful detainer as it to make copras, brought
will violate the established rule on public attention of the police
policy. - Filed forcible entry
Property – Possession (Art. 523 – Art. 561) 6
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- Whether Mercado By whom possession acquired


established prior  Possession may be acquired:
possession? YES 1. Personally or by the same person
Wong liable to pay rent? who is to enjoy it; There must be:
YES; summons a. Intent to possess
extinguishes GF b. Capacity to possess
- Possession acquired by c. Object must be capable of being
material occupation possessed
- Clear that seller passed 2. Thru an authorized person or by his
title to buyer legal representative or by his agent,
- Actual, longer, with title, and
judicial determination a. intent to possess for principal (not
3. - After partition, they for agent)
Somodio immediately took b. authority or capacity to possess
v. CA possession (for another)
- Somodio planted ipil-ipil, c. principal has intent and capacity
coconut to possess
- Allowed Ayco to enter 3. Thru an unauthorized person or by
premises and any person without any power or
constructed nipa hut authority whatever.
- Time came, he wanted to a. intent to possess for another (the
remove Ayco “principal)
- Forcible entry was filed b. capacity of “principal” to possess
- Whether Somodio had c. ratification by “principal” (The
prior possession? YES possession although cured only
- Ejectment cases, only by the express or implied
issue is who is entitled to ratification should be regarded as
possession having a RETROACTIVE effect.)
- True regardless of
character of possession Acquisition of possession through another
- Constructive possession  Possession acquired by a person
(not every square meter) personally or thru another may be
exercised by him in his own name or in
Art. 532. Possession may be acquired by that of another. But minors and other
the same person who is to enjoy it, by incapacitated persons need the
his legal representative, by his agent, or assistance of their legal representatives
by any person without any power to exercise the rights arising from
whatever: but in the last case, the possession.
possession shall not be considered as  If a person authorized to acquired
acquired until the person in whose name possession for another acted beyond his
the act of possession was executed has powers, the principal is not bound
ratified the same, without prejudice to unless the latter ratifies the act of
the juridical consequences of acquisition.
negotiorum gestio in a proper case.  The exception is when a person
(439a) voluntarily manages the property or
business of another. In such case, the
Property – Possession (Art. 523 – Art. 561) 7
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stranger’s (gestor’s) possession takes decedent, if it is not shown that he was


effect even without ratification by the aware of the flaws affecting it; but the
owner of the property or business. effects of possession in good faith shall
not benefit him except from the date of
Art. 533. The possession of hereditary the death of the decedent. (442)
property is deemed transmitted to the
heir* without interruption and from the Applicable only when decedent is in bad
moment of the death of the decedent, in faith.
case the inheritance is accepted.
One who validly renounces an Effects of bad faith of decedent on heir
inheritance is deemed never to have  If the decedent was in bad faith, the heir
possessed the same. (440) shall not suffer the consequences of the
*of possessor wrongful possession of the latter
because bad faith is personal to the
Acquisition of possession through decedent and is not deemed transmitted
succession to the heirs.
 The rights to the succession are  The heir suffers the consequences of
transmitted from the moment of the such possession only from the moment
death of the decedent. he becomes aware of the flaws affecting
 From that moment, each of his heirs the decedent’s title.
becomes the undivided owner of the  Successor cannot acquire by
whole estate left with respect to that succession, but may acquire it through
portion which might be adjudicated to acquisitive prescription.
him.
Case doctrine
 The inheritance may be accepted or A possessor in bad faith should not
repudiated. prejudice his successors-in-interest. Bad
- In case the inheritance is faith is personal and intransmissible.
accepted, the possession of the (Escritor vs IAC)
hereditary property is deemed
transmitted by operation of law to the Art. 535. Minors and incapacitated
heir without interruption and from the persons may acquire the possession of
moment of death of the decedent. things; but they need the assistance of
- In case inheritance is validly their legal representatives in order to
renounced, the heir is deemed exercise the rights which from the
never to have possessed the same. possession arise in their favor. (443)
 There is no doubt that an heir can sell
whatever right, interest or participation Acquisition and exercise of rights of
he may have in the property under possession by minors and incapacitated
administration, subject to the result of persons
said administration.  The persons referred to in the provision
are unemancipated minors and other
Art. 534. On who succeeds by hereditary persons who have no capacity to act like
title shall not suffer the consequences of spendthrifts, deaf-mutes who cannot
the wrongful possession of the read and write, those under civil
interdiction, etc.
Property – Possession (Art. 523 – Art. 561) 8
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 Things here are limited to corporeal  Every possessor has a right to be


things only. respected in his possession. The lawful
 This article refers principally but not possessor may use such force as may
exclusively to material occupation. be reasonably necessary to repel or
 Incapacitated persons may acquire prevent invasion or usurpation of his
property or rights by prescription either property.
personally or through their parents,  This article applies to one who believes
guardians or legal reps. Once himself the owner of real property. If he
possession of a thing is acquired by takes justice into his own hands, he is a
such persons, there is born the right of mere intruder; and he can be compelled
possession. In the exercise of this right, to return the property in an action for
they need the assistance of their legal forcible entry and must suffer the
reps. necessary and natural consequences of
his lawlessness.
Juridical Capacity Capacity to Act  A party who can prove prior possession,
Fitness to be the Power to do acts whatever may be the character of the
subject of legal with legal effects possession, has the security that entitles
relation him to recover such possession or to
Minors have juridical Minors do not have remain on the property even against the
Capacity capacity to act (Ex: owner himself until he is lawfully ejected
Court action) by accion publiciana or accion
reivindicatoria.
Art. 536. In no case may possession be
acquired through force or intimidation Art. 537. Acts merely tolerated, and
as long as there is a possessor who those executed clandestinely and
objects thereto. He who believes that he without the knowledge of the possessor
has an action or a right to deprive of a thing, or by violence, do not affect
another of the holding of a thing, must possession. (444)
invoke the aid of the competent court, if
the holder should refuse to deliver the Acts which DO NOT give rise to possession
thing. (441a)  The acts mentioned do not affect
possession, i.e. the person in
Objection is manifested through filing possession does not lose the same nor
of a forcible entry case. does the person who results to them
acquire it. In other words, the true
Example: possessor is deemed to have enjoyed
P was in the possession of a land. F uninterrupted possession.
removed P through FISTS. Did F possess o Force or intimidation (FISTS) –
the land? as long as there is a possessor
a. If P objected by filing of a who objects thereto, such as by
Forcible entry case, then F did suit of forcible entry. The rule
not acquire possession. does not apply if the possessor
b. If P did not file a F/E case within makes no objection, withdraws
1 year, Y possesses it in fact. his objection or takes no action
whatsoever after initially objecting
Recourse to the courts to the deprivation.
Property – Possession (Art. 523 – Art. 561) 9
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o Acts executed clandestinely (b) The legal possessor, even if


and without the knowledge of physically ousted, is still the possessor
the possessor –Clandestine and therefore —
possession is secret possession, 1) still entitled to the benefits of
or possession by stealth. For prescription;
clandestine possession to affect 2) still entitled to the fruits;
the owner’s possession, the 3) still entitled as possessor for all
possession must also be purposes favorable to his possession.
unknown to the owner. If it is (Ayala de Roxas v. Maglonso, 8 Phil.
secret to many, but known to the 745).
owner, his possession is affected. (c) The intruder cannot acquire the
o Acts merely tolerated – which property by prescription. (Ayala de
do not refer to all kinds of Roxas v. Maglonso; Cuaycong v.
tolerance on the part of the owner Benedicto, 37 Phil. 781).
or possessor in view of the use of
the word ‘merely’; it means POSSESSION IN FACT
permission, express or tacit, by Art. 538. Possession as a fact cannot be
virtue of which the acts of recognized at the same time in two
possession are performed. different personalities except in the
Hence, it is simply a question of cases of co-possession. Should a
whether permission was given or question arise regarding the fact of
not. possession, the present possessor shall
be preferred; if there are two
 Possession of another by mere possessors, the one longer in
tolerance is not adverse and no matter possession; if the dates of the
how long continued, cannot ripen to possession are the same, the one who
ownership by prescription (Heirs of presents a title; and if all these
Gamos vs Heirs of Frando) conditions are equal, the thing shall be
 The mere silence or failure to take any placed in judicial deposit pending
action will not be construed as determination of its possession or
abandonment of rights on the part of the ownership through proper proceedings.
real possessor. It is, of course, for the (445)
courts to decide whether there has been
an abandonment or not. Possession as a fact at the same time in
 Possession by tolerance is lawful but two different personsalities
becomes illegal when, upon demand to  The word “personalities” is not
vacate by the legal owner, the synonymous to “persons.” For example,
possessor refuses to comply with such in co-ownership, there are two or more
demand. persons, but there is only one
personality.
“Acts ... do not affect possession”  Possession as a fact may exist at the
means same time in two or more distinct
(a) The intruder does not acquire any personalities, but as a general rule, the
right to possession (NO LEGAL law will recognize only one as the actual
POSSESSION). or real possessor.
Property – Possession (Art. 523 – Art. 561) 10
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 The exception is provided in the cases EFFECTS OF POSSESSION


of co-possession, such as co-
ownership, where the property is Art 539 Every possessor has a right to
possessed at the same time in common be respected in his possession and
by the co-owners also; and possession should he be disturbed therein he shall
where the property is possessed at the be protected in or restored to said
same time by two persons, one in the possession by the means established by
concept of owner and the other, in the the laws and the Rules of Court.
concept of holder. A possessor deprived of his
 In co-possession, there is no conflict of possession through forcible entry may
interests of claims among the parties. within ten days from the filing of the
complaint present a motion to secure
Preference of possession from the competent court, in the action
 Article 538 applies whether the property for forcible entry, a writ of preliminary
is real or personal. In case a dispute mandatory injunction to restore him in
arises regarding the fact of possession, his possession. The court shall decide
the order of preference is as follows: the motion within thirty days from the
1. The present or actual possessor filing thereof.
shall be preferred
2. If there are two possessors, the Rights of every possessor
longer in possession; Every possessor, whether in the concept of
3. If the dates of possession are the owner of in the concept of holder, is given
same, the possessor with a title; i.e. the following rights:
right or document evidencing his 1. Right to be respected in his possession;
right to support his possession; and 2. Right to be protected in or restored to
4. If all the above are equal, the fact of said possession by legal means should
possession shall be judicially he be disturbed therein; and
determined, and in the meantime, 3. Right to secure from a competent court
the thing shall be placed in judicial in an action for forcible entry the proper
deposit. writ to restore him in his possession (Art
428)
Rules or Criteria to be Used in Case of
Conflict or Dispute Regarding Possession  The mere possession of a thing is
(BAR) sufficient to insure respect to the
(a) present possessor shall be possessor while no other person
preferred appears to show and prove a better
(b) if both are present, the one right.
longer in possession  To all intents and purposes, a possessor
(c) if both began to possess at the even if physically ousted as through
same time, the one who present (or force and violence, is still deemed the
has) a title legal possessor.
(d) if both present a title, the Court
will determine. (Meantime, the thing The fact, however, that a person was never
shall be judicially deposited.) in prior physical possession of a land is of
no moment where he has a Torrens Title
CHAPTER 3 over the property as prior physical
Property – Possession (Art. 523 – Art. 561) 11
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possession is necessary only in forcible Issuance of a writ of preliminary mandatory


entry cases. injunction
 In forcible entry actions, the plaintiff
Reasons for protection must present within ten days from the
1. To aid criminal law (by preserving the filing of the complaint a motion to secure
peace. Order is best secured by from the competent court, a writ of
protecting a possessor and leaving the preliminary mandatory injunction to
true owner to seek his remedy in a court restore him in his possession
of law)  In unlawful detainer cases where an
2. As part of the law of tort (these rights of appeal is taken, the motion shall be filed
action are given in respect of the within ten days from the time the appeal
immediate and present violation of the is perfected, if the high court is satisfied
rights of the possessor independently of that the lessee’s appeal is frivolous or
his rights of property) dilatory, or the lessor’s appeal is prima
3. As part of the law of property (law does facie meritorious.
not always known that the possession in  In an appeal from a lower court in an
question is unlawful. It would be unjust ejectment case, the issue of ownership
to cast on every man whose possession should not be delved into, for an
is disturbed the burden of proving a ejectment action lies even against the
flawless title) owner of a property.

Remedies of persons deprived of Prior peaceful possession of plaintiff


possession (see discussions in Art 428) required in forcible entry action
1. forcible entry or unlawful detainer  Where a dispute over possession arises
2. accion publiciana between two persons, the person first
3. accion reivindicatoria having actual possession, as between
4. replevin or manual delivery of personal them, is the one who is entitled to
property maintain the action for forcible entry.
 The main issue is possession de facto,
 In forcible entry and unlawful detainer independently of any claim of ownership
cases, subject to some exceptions, the or possession de jure that either party
immediate execution of the judgment in may set forth in his pleadings, and an
favor of the plaintiff is a matter of right appeal does not operate to change the
and mandatory. nature of the original action
 Considering that the only issue in  Even a mere applicant of public land
ejectment is that of rightful possession, who is in occupation and in peaceful
damages that could be recovered are possession thereof can file an action for
those which the plaintiff could have forcible entry
sustained as a mere possessor, or  Question of ownership is unessential
those caused by the loss of the use and and should be raised by the defendant
occupation of the property, and not the in an appropriate action
damages which he may have suffered o Judgment rendered in an action
but which have no direct relation to his for forcible entry shall not bar an
loss of material possession. action between the same parties
respecting the title to the land or
building
Property – Possession (Art. 523 – Art. 561) 12
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o The court has competence to o The trespasser does not have to


resolve the issue of ownership institute a state of war. The act of
but only to determine the issue of going on the property and
priority of possession, as its excluding the lawful possessor
decision does not bind the title or therefrom necessarily implies the
affect the ownership of the exertion of force over the
property involved (any property, and this is all that is
pronouncement on ownership is necessary. Under the law,
provisional) entering upon the premises by
 The purpose of the law is to protect the strategy or stealth is equally as
person who has actual possession obnoxious as entering by force.
 The plaintiff in an action for forcible o The words “by force, intimidation,
entry and detainer cannot succeed threat, etc” include every situation
when it appears that, as between or condition under which one
himself and the defendant, the latter had person can wrongfully enter upon
possession antedating his own; and to real property to exclude another,
ascertain this, it is proper to look on to who has prior possession
the situation as it existed before the first therefrom. (Banes case)
act of spoliation occurred  Wrongful exclusion of prior possessor
 Legal right of prior possessor is not an o The foundation of the action is
issue really the forcible exclusion of the
o If the plaintiff can prove prior original possessor by a person
possession, he may recover who has entered without right.
possession even against the
owner himself. Possession that ripens to ownership
o If he can’t prove prior Art 540 Only the possession acquired
possession, he has no right of and enjoyed in the concept of owner can
action even if he should be the serve as a title for acquiring dominion.
owner himself.
 In case of controverted right, the law Possession as basis for acquiring
requires the parties to preserve the ownership
status quo until one or the other of them Possession acquired and enjoyed in the
sees fit to invoke the decision of a court concept of owner may ripen into ownership
upon the question of possession and/or by means of prescription.
possession
 A forcible entry or unlawful detainer is 1. As holder
not suspended, abated, barred or  Cannot be the basis of prescription
affected by actions filed in the RTC  So with possession acquired through
which do not involve physical or de facto force or intimidation (Art 536), merely
possession tolerated or which is not public and is
unknown to the present possessor
Conditions under which action for forcible (Art 537)
entry will lie 2. As equitable mortgage
 Wrongful entrance by one not in  Constructive possession over the
possession land cannot ripen into ownership as
it cannot be said to have been
Property – Possession (Art. 523 – Art. 561) 13
2015

acquired and enjoyed in the concept In order than an action for recovery
of owner of possession may prosper, it is
3. As claimant under a possessory indispensable that he who brings the
information title (meh) action fully proves not only his
4. As claimant under a certificate of title ownership but also the identity of the
 Mere possession cannot defeat the property claimed, by describing the
title of a holder of a registered location, area and boundaries thereof.
Torrens title to real property Insufficient identification of the portion of
 But the true owner of the property land claimed in absolute ownership
may be defeated by an innocent cannot ripen into ownership. (Serina v
purchaser for value notwithstanding Caballero)
the fraud employed by the seller
(forger) in securing his title The notice of adverse claim did not
 Generally, a forged deed is a nullity interrupt the running of prescriptive
and conveys no title. However, there period. A notice of adverse claim is
are instances when such a merely a notice. There must be a civil
document may become the root of a interruption, that is receipt of judicial
valid title. As when the certificate of summon. The open, continuous,
title was already transferred from the exclusive and notorious possession by
name of the true owner to the forger, respondents of the subject property for a
and while it remained that way, the period of more than 30 years in
land was subsequently sold to an repudiation of petitioners’ ownership had
innocent purchaser for value (land been established. During such length of
titles!) time, respondents had exercised acts of
5. As possessor of forest land (not dominion over the subject property, and
possible!) paid taxes in their name. Jurisprudence
is clear that although tax declarations or
 Mere tax declarations of ownership do realty tax payments of property are not
not vest or prove ownership of the conclusive evidence of ownership,
property in the declarant nor are even nevertheless, they are good indicia of
sufficient to sustain a claim for possession in the concept of owner for
possession over a land, in the absence no one in his right mind would be paying
of actual possession of the same. taxes for a property that is not in his
 They are merely an indicum of a claim actual or at least constructive
of ownership possession. They constitute at least
 Nevertheless, they are good indicia of proof that the holder has a claim of title
possession in the concept of owner over the property. As is well known, the
 Payment of realty tax coupled with payment of taxes coupled with actual
actual possession in the concept of possession of the land covered by the
owner is one of the most persuasive and tax declaration strongly supports a claim
positive indicia, which shows the will or of ownership. (Heirs of Crisologo vs
desire of a person to possess with claim Ranon)
of ownership or to obtain title to the land
or property Juliana Frando is deemed to have
acquired equitable title to the property,
Case doctrines because her heirs have adequately
Property – Possession (Art. 523 – Art. 561) 14
2015

proved her open, continuous, exclusive  NB: Presumption of just title does not
and notorious possession and apply in acquisitive prescription.
occupation of alienable and disposable Adverse possessor must prove his just
land of the public domain. Her heirs title.
were in the concept of an owner as
shown by the fact that they have been Burden of proving just title
receiving the proceeds of the land and  The onus probandi is on the plaintiff who
other evidences. Juliana Frando’s seeks the recovery of property
possession thus ripened into ownership,  A person who is not, in fact, in
even if the sales patent was said to be possession cannot acquire a
denied, because she has been in prescriptive right to a land by the mere
OCEAN possession of an alienable and assertion of a right therein. Where the
disposable agricultural public land for a possessor is really the owner, the fact
period of 30 years, the prescribed period that a third person questions his right
under CA 141. does not impair said right.
The heirs of Gamos’s possession  An owner and possessor whose title is
was by mere tolerance, hence cannot true and valid cannot be required to
ripen into ownership. (Heirs of Gamos show that his possession is or has been
vs Heirs of Frando) adverse as against a new claimant who
has neither title nor possession.
Art 541 A possessor in the concept of
owner has in his favor the legal What are the different kinds of title?
presumption that he possesses with a 1. Titulo verdadero y valido or true and
just title and he cannot be obliged to valid
show or prove it.  This is the title presumed in this
provision
Possessor in concept of owner presumed  Sufficient to transfer ownership
with just title without need of possessing the
 Just title does not always mean a property for the period necessary for
document or a written instrument acquiring title by prescription
 Title is that upon which ownership is 2. Titulo justo or just title
based  For the purposes of prescription,
 Actual or constructive possession under there is just title…
claim of ownership raises the disputable o When the adverse claimant came
presumption of ownership. In other into possession of the property
words, a possession is presumed through one of the modes
ownership until the contrary is shown. recognized by law for the
 A possessor is presumed to have a just acquisition of ownership or other
title, and he cannot be obliged to show real rights,
or prove it. o but the grantor was not the owner
o Reason? To protect the owner or could not transmit any right
from inconvenience, otherwise,  For prescription, just title must be
he will always have to carry his proved, it is never presumed.
titles under his arms to show  It must be remembered that the
them to whoever who wants to burden of proving the status of a
see it purchaser in good faith lies upon him
Property – Possession (Art. 523 – Art. 561) 15
2015

who asserts that status. It is not to the beneficiary or the other co-
sufficient to invoke the ordinary owners
presumption of good faith, that is, 3. That the evidence thereon must be
that everyone is presumed to have clear and convincing (Aguirre v CA)
acted in good faith, since the good
faith that is here essential is integral The mere possession of a strip of
with the very status that must be land for a period of 20 years is not
established. (Aguirre v CA) sufficient to acquire ownership by
3. Titulo colorado or colorable title acquisitive prescription. It must be
 One which a person has when he acquired in good faith and with just
buys a thing in good faith, from one title(Color of title), or for a period of 30
who is not the owner but whom he years without just title and whether or
believes to be the owner not in good faith [Art. 1117]. Further, the
 The just title required for acquisitive strip of land is acquired without just title
prescription is titulo Colorado because there is no mode of transferring
4. Titulo putativo or putative title title. (Titong vs CA)
 One which a person believes he has
title but in fact he has not because Art 542 The possession of real property
there was no mode of acquiring presumes that of movables therein, so
ownership long as it is not shown or proved that
 As when one is in possession of a they should be excluded.
thing in the mistaken belief that it
had been bequeathed to him Possession of real property presumed to
include movables
What’s the difference between titulo  Article 542 refers to material possession
Colorado and titulo verdadero y valido? In only of real or personal things, not
Colorado, there is a need for prescription to rights
transfer ownership. In true and valid title,  It is normal that movables which are
there is no need for prescription, ownership found in an immovable belong to the
is transferred once the mode of transfer has possessor of the latter
been perfected. (Be it by sale, donation,  If the building is occupied by the lessee,
succession, etc). we can suppose the same with respect
to him because in this case, the
possessor is the lessee
Case doctrine  Again, this is a mere presumption.
 In order that a co-owner’s possession
may be deemed adverse to the cestui Art. 542 is applicable even if Possession is:
que trusti or the other co-owners, the a. in the concept of owner or of
following elements must concur: holder
1. That he has perfomrmed b. in one’s own name or in another’s
unequivocal acts of repudiation c. in good faith or in bad faith
amounting to an ouster of the
beneficiary or the other co-owners Art 543 Each one of the participants of a
2. That such positive acts of thing possessed in common shall be
repudiation have been made known deemed to have exclusively possessed
Property – Possession (Art. 523 – Art. 561) 16
2015

the part which may be allotted to him years, for he is deemed to have possessed
upon the division thereof, for the entire his portion exclusively and continuously for
period during which the co-possession a period of 12 years.
lasted. Interruption in the possession of
the whole or a part of a thing possessed Interruption in possession of the thing
in common shall be to the prejudice of  Both the benefits and the prejudices that
all the possessors. However, in case of might have taken place during the co-
civil interruption, the Rules of Court possession shall attach to each of the
shall apply. co-participants
 Prescription obtained by a co-possessor
Effect of interruption: The possession can shall benefit the others
no longer be considered continuous; hence  Interruption in the possession of the
the running of the prescriptive period for whole or part of a thing shall be to the
acquisition is interrupted. prejudice of all the possessors.
Exclusive possession of previous co-owner  Possession is interrupted for purposes
deemed continuous of prescription either
 Article 543 speaks of co-possession of a o Naturally (when through any
thing, not of co-ownership cause it should cease for more
 Nevertheless, its principle is applicable than 1 year)
to co-possession of a real right o Civilly (when the interruption is
 Co-possession can be over a thing or a produced by judicial summons to
right the possessor)
 All participants of a thing possessed in  In civil interruption, only
common constitute only one personality those possessors served
and the personality ceases when there with judicial summons are
is a partition. affected.
 From that moment of cessation, the  For civil interruption to
personality of each participant begins. take place, the possessor
 Each co-possessor is deemed (not must have received
merely presumed!) to have possessed judicial summons.
exclusively and continuously during the  When will summons not be
period of co-possession the part deemed to have been
assigned to him in the division. issued and shall not give
 The effects of the division retroact to the rise to interruption?
commencement of the co-possession. 1. If it should be void for
 But the division shall be without lack of legal
prejudice to the rights of creditors. solemnities, or
2. If the plaintiff should
Harry, Ron, and Hermione have been co- desist from the
possessors in the concept of owners of a complaint or should all
15 hectare parcel of land until they divided the proceedings to
the property equally on the 8th year. If on lapse, or
the 4th year after the division, Draco claims 3. If the possessor should
ownership of the portion allotted to Harry, be absolved from the
Harry can assert title by acquisitive complaint.
prescription through possession for 10
Property – Possession (Art. 523 – Art. 561) 17
2015

 A notice for adverse claim  The fruits of a thing generally belong to


does NOT interrupt the owner (Art 441) but a possessor in
prescription (Heirs of good faith is entitled to the fruits
Arzadon-Crisologo v received until good faith ceases and bad
Ranon) faith begins.
 Interruption must refer to the whole thing  Legal interruption of possession in good
itself or part of it and not to a part or faith takes place upon service of judicial
right of a co-possessor. summons to the possessor.
 In a co-possession, there is only one o All fruits that the possessor may
thing and many possessors. If the right receive from the time that he is
of a co-possessor is contested, he alone summoned, or when he answers
shall be prejudiced. the complaint, must be delivered
 With respect to the thing, the prejudice or paid by him to the owner or
shall be against all. lawful possessor.
 Whenever there is cessation of good
Art 544 A possessor in good faith is faith in the eyes of the law, whether by
entitled to the fruits received before the reason of the filing of a complaint or not,
possession is legally interrupted. possession in good faith should be
Natural and industrial fruits are deemed legally interrupted from such
considered received from the time they cessation and not merely from the
are gathered or severed. service of judicial summons.
Civil fruits are deemed to accrue  When the owner or possessor with a
daily and belong to the possessor in better right comes along, when he
good faith in that proportion. becomes aware that what he had taken
for granted is at least doubtful, and
Art 545 If at the time the good faith when he learns the grounds in support
ceases, there should be any natural or of the adverse claim, good faith ceases.
industrial fruits, the possessor shall  Possessor in bad faith is not entitled to
have a right to a part of the expenses of the fruits. He has the duty to reimburse
cultivation, and to a part of the net the fruits received including that which
harvest, both in proportion to the time of the legitimate possessor could have
possession. received.
The charges shall be divided on  The right of the possessor in good faith
the same basis by the two possessors. is limited to the fruits, referring to
The owner of the thing may, natural, industrial and civil fruits (Art
should he so desire, give the possessor 441). Other things (building) belong to
in good faith the right to finish the the owner of the land.
cultivation and gathering of the growing
fruits, as an indemnity for his part of the When fruits considered received
expenses of cultivation and the net 1. For natural and industrial fruits – from
proceeds; the possessor in good faith the time they are gathered or severed.
who for any reason whatever should Fruits gathered before legal interruption
refuse to accept this concession, shall belong to the possessor in good faith.
lose the right to be indemnified in any 2. For civil fruits – their accrual, not their
other manner. actual receipt, shall determine when
they are considered received at the time
Property – Possession (Art. 523 – Art. 561) 18
2015

the good faith is legally interrupted. options: term of


They are deemed to accrue daily and possession.
belong to the possessor in good faith in First: Pro-
that proportion. rating But entitled
(based on to
Kinds of Fruits Possess Possessor period of necessary
or in in Bad possessio expenses
Good Faith n) for
Faith between preservation
1. Civil fruits Entitled to Not entitled possesso , cultivation,
fruits from to fruits. r and and
start of owner of: gathering of
possessio Must pay expenses fruits.
n until damages as , net
legal rental from harvest
interruptio time and No rights,
n possession charges not even
started until reimbursem
possession ent of
is finally Second: expenses
defeated To allow for
2. Natural/Indus possesso cultivation
trial Fruits r to stay (because by
in right of
a. Gathered Right to Must possessio accession,
retain account for n until all fruits
fruits fruits and after all belong to
return value fruits are owner
of: gathered without
fruits (which need to pay
actually shall indemnity)
received, serve as
and fruits the Must pay
which the indemnity damages as
legal for reasonable
possessor expenses rent for the
could have ) term of
received possession
with due
care and
diligence. Proportionate division of fruits and
expenses
b. Pending Must pay  Art 545 does not apply when the
damages as possessor is in bad faith, the fruits are
Owner reasonable civil, or the fruits are natural or industrial
has 2 rent for the
Property – Possession (Art. 523 – Art. 561) 19
2015

but they have been gathered or severed Useful expenses shall be refunded
when good faith ceases only to the possessor in good faith with
 A possessor in bad faith has no right the same retention, the person who has
whatsoever to the fruits, gathered or defeated him in the possession having
pending, except only necessary the option of refunding the amount of
expenses for gathered fruit (Art 443, the expenses or of paying the increase
449). Since civil fruits are produced day in value which the thing may have
by day, Art 545 does not apply to them. acquired by reason thereof.
 In the case of fruits already gathered at
the time good faith ceases, it is Art 544 Art 547 If the useful improvements can
that is applicable. be removed without damage to the
 If there are pending natural and principal thing, the possessor in good
industrial fruits at the time good faith faith may remove them, unless the
ceases, the two possessors shall share person who recovers the possession
in the expense of cultivation and the exercises the option under paragraph 2
charges (expenses made not on the of the preceding article.
property itself but on account of it, such Option granted to possessor in GF
as taxes, interest on mortgages) in only if the owner does not choose to
proportion to the time of possession. exercise the rights granted to him under Art.
 They will also share on the fruits in 546.
proportion to the time of possession as
well. Art 548 Expenses for pure luxury or
 What if there are no fruits or the fruits mere pleasure shall not be refunded to
are less than expenses? the possessor in good faith; but he may
o If there is no net harvest because remove the ornaments with which he
there are no fruits or the fruits are has embellished the principal thing if it
less than the expenses, art 545 suffers no injury thereby, and if his
won’t apply. If the fruits are successor in the possession does not
merely insufficient, the same prefer to refund the amount expended.
should be divided in proportion to
their respective expenses. Right of removal is given to both
o No fruits? Each should bear his possessors in GF and BF.
own expenses subject to the right
of the possessor in good faith to Art 549 The possessor in bad faith shall
be refunded for necessary reimburse the fruits received and those
expenses under Art 546, unless which the legitimate possessor could
the owner of new possessor have received, and shall have a right
exercises his option referred to only to the expenses mentioned in
above. paragraph 1 of Article 546 and in Article
443. The expenses incurred in
Art 546 Necessary expenses shall be improvements for pure luxury or mere
refunded to every possessor; but only pleasure shall not be refunded to the
the possessor in good faith may retain possessor in bad faith, but he may
the thing until he has reimbursed remove the objects for which such
therefore. expenses have been incurred, provided
Property – Possession (Art. 523 – Art. 561) 20
2015

that the thing suffers no injury thereby, provided no


and that the lawful possessor does not substantial
prefer to retain them by paying the value damage or
they may have at the time he enters into injury is
possession. caused
Luxurious Owner has 2 Owner has
expenses options: 2 options:
Expenses Possessor Possessor
in Good in Bad Option 1: to Option 1: to
Faith Faith allow allow
Necessary Entitled to Entitled to possessor to possessor
Expenses reimburseme reimbursem remove to remove
nt ent ornaments if ornaments
Right of No right of the principal if the
retention retention; suffers no principal
pending full must vacate injury suffers no
reimburseme property injury
nts (recourse is Option 2: to
to file retain the Option 2: to
collection ornament by retain the
case) refunding the ornament
Liable for amount by
damages as spent for the refunding
reasonable ornament the value of
rent for the
period of ornament at
possession the time
Useful Owner has 2 No rights owner
expenses options: enters into
possession
Option 1: (which
reimburseme means
nt of either depreciated
(a) amount value)
spent or (b) Deterioration/l No liability Always
increase in oss unless due liable
value with to fraudulent whether
right of intent or before or
retention negligence after service
with full after service of judicial
payment. of judicial summons,
summons for any
Option 2: To cause, even
allow fortuitous
possessor to event.
remove
Property – Possession (Art. 523 – Art. 561) 21
2015

Right of possessors  Useful expenses are expenses which


Exp add value to a thing, or augment its
ens GF BF
Refu Ret Rem Ref Ret Rem income.
es
nd ain ove und ain ove  Luxurious expenses are expenses not
Ye necessary for the preservation of a thing
s Yes nor do they increase its productivity
Nec Yes although they add value to the thing, but
(Ar (Art N/
ess (Art N/A N/A are incurred merely to embellish the
t 542 A
ary 546) thing and for the convenience or
54 )
6) enjoyment of particular possessors.
Yes
Yes Case doctrine
(Art
- A possessor in bad faith is entitled to
546)
Exc be reimbursed for her expenses in
The
Ye ept restoring a house to its original condition
amou
s whe after it had been partly damaged by fire,
nt of
Use (Ar n N/ because such expenses are necessary,
expe N/A N/A
ful t own A and under 546, are to be refunded even
nse
54 er to possessors in bad faith.
or the
6) opts A builder in bad faith, under 449, is
incre
to not entitled to reimbursement. But 449 is
ase
refu a rule of accession, which is not
in
nd applicable where a new house was not
value
Yes built on the land of another but only
Yes - repairs were made on a house that had
- Exc been partly destroyed by fire. This latter
Exc ept case comes under 546 which provides
ept N/ whe for the refund of necessary expenses to
whe N/A A n every possessor. (Cosio v Palileo)
Lux
N/ n (Art (Ar own
urio N/A
A own 549 t er
us Florentino is NOT entitled to
er ) 54 opts
opts 9) pay reimbursement of the property. Art 546
to for is applicable only to possessors in good
refu its faith (or bad faith in case of necessary
nd valu expenses). Florentino, being a LESSEE
e of supervalue, is not entitled to the rights
under Art. 546. (Florentino vs
 Necessary expenses are made for the Supervalue)
preservation of the thing of those which
seek to prevent the waste, deterioration, Art. 550. The costs of litigation over the
or loss of the thing; or those without property shall be borne by every
which the thing would deteriorate or be possessor. (n)
lost.
Art. 551. Improvements caused by
nature or time shall always insure to the
Property – Possession (Art. 523 – Art. 561) 22
2015

benefit of the person who has liable for necessary expenses even if
succeeded in recovering possession. the thing for which they were incurred
(456) no longer exists.
 Necessary expenses are not considered
“The person who has succeeded” refers improvements.
to the OWNER.
Art. 554. A present possessor who
Improvements caused by nature or time shows his possession at some previous
 Article 551 covers all the natural time, is presumed to have held
accessions mentioned in Articles 457 to possession also during the intermediate
465 which must follow the ownership of period, in the absence of proof to the
the principal thing, and generally, all contrary. (459)
improvements that are not due to the
will of the possessor. Presumption of possession during
 The former possessor got the benefits intervening period
from the property during his possession.  This article contemplates a situation
It is but just that the improvements where a present possessor is able to
mentioned which take place after the prove his possession of a property at a
possession is recovered inure to the prior period but not his possession
owner or lawful possessor. Hence, he during the intervening period.
should not pay for them.  He is presumed to have possessed the
property continuously without
Art. 552. A possessor in good faith shall interruption, unless the contrary is
not be liable for the deterioration or loss proved.
of the thing possessed, except in cases  The presumption is useful for purposes
in which it is proved that he has acted of prescription.
with fraudulent intent or negligence,
after the judicial summons. Art. 555. A possessor may lose his
A possessor in bad faith shall be possession:
liable for deterioration or loss in every 1. By the abandonment of the
case, even if caused by a fortuitous thing;
event. (457a) 2. By an assignment made to
another either by onerous or
Art. 553. One who recovers possession gratuitous title;
shall not be obliged to pay for 3. By the destruction or total loss
improvements which have ceased to of the thing, or because it goes
exist at the time he takes possession of out of commerce;
the thing. (458) 4. By the possession of another,
subject to the provisions of Article
Improvements which have ceased to exist 537, if the new possession has
 The improvements referred to were lasted longer than one year. But
enjoyed by the possessor alone. the real right of possession is not
 Having ceased to exist, the owner or lost till after the lapse of ten years.
lawful possessor who came too late (460a)
cannot benefit from them. But he is
Property – Possession (Art. 523 – Art. 561) 23
2015

Modes of losing possession possessed and the legal capacity to


 This provision applies to both real and renounce it.
personal property except no. 4 which  An owner of property cannot be held to
obviously refers only to personal have abandoned the same until at least
property (obvious raw eh, sabi ni de he has some knowledge of the loss of
Leon. Yabang naman niya). The next its possession or of the thing, and a
article is expressly made applicable only thing cannot be considered abandoned
to movables. under the law until the spes recuperandi
(hope of recovery) is gone and the
What is abandonment? animus revertendi (intention to return) is
 Abandonment must be TOTAL finally given up.
 Abandonment is the voluntary  By voluntary abandonment, a thing
renunciation of all rights which a person becomes without an owner or possessor
has over a thing thereby allowing a third and is converted into res nullius and
person to acquire ownership or may thus be acquired by a third person
possession thereof by means of by occupation.
occupancy.  Abandonment which converts the thing
Requisites: into res nullius can hardly apply to land.
1. the abandoner must have been a  Castellano v Francisco stated that
possessor in the concept of abandonment requires:
owner (either an owner or mere 1. A clear and absolute intention to
possessor may respectively renounce a right or a claim or to
abandon either ownership or abandon a right or property, and
possession). 2. An external act by which that
2. the abandoner must have the intention is expressed or carried into
capacity to renounce or to effect.
alienate (for abandonment is the  The intention to abandon implies a
repudiation of a property right). departure, with the avowed intent of
3. there must be a physical never returning, resuming or claiming
relinquishment of the thing or the right and the interest that have been
object. (Yu v. De Lara, L-16084, abandoned. (Castellano v Francisco)
Nov. 30, 1962).  Abandonment is always gratuitous.
4. there must be no more spes
recuperandi (expectation to Assignment?
recover) and no more animus  Assignment is understood to mean the
revertendi (intent to return or get complete transmission of the thing or
back). (U.S. v. Rey, 8 Phil. 500; right to another by any lawful manner.
Yu v. De Lara, L-16084, Nov. 30,  It may be onerous or by gratuitous title.
1962).  The effect is that he who was the owner
 The abandoner may be the owner or a or possessor is no longer so.
mere possessor but the latter obviously
cannot abandon ownership which Abandonment Assignment
belongs to another. (obviously raw!) Always gratuitous
May be onerous or
 Since abandonment involves the gratuitous
renunciation of a property right, the There is a time There is not a time
abandoner must have a right to the thing
Property – Possession (Art. 523 – Art. 561) 24
2015

when the thing has that the thing has Catholic - RESPONDENTS
no owner no owner Vicar PROVED: predecessor’s
Apostolic house was borrowed by
v. CA VICAR
Destruction, total loss, or withdrawal from - after the church
commerce 
allowed it free use, they
 Destruction or total loss covers not only became bailors and
that which is caused voluntarily or petitioner bailee
intentionally but also that which is - Bailee’s failure to return
caused by accident. the subject matter to the
 A thing is lost when it perishes, or goes bailor DID NOT MEAN
out of commerce, or disappears, etc. ADVERSE
(Art 1189) 
POSSESSION ON
THE PART OF THE
Possession of another for more than one BORROWER
year - Adverse claim of VICAR
 This refers to possession de facto (as a did not ripen into
fact or material possession) and not de ownership
jure (legal right or real right of - REPSONDENTS IN
possession) POSSESSION IN GF
 After one year, the former possessor SINCE 1906
can no longer bring any action for - VICAR 1951 - Bailee
forcible entry or unlawful detainer.
 Possession by mere tolerance even for
over a year does not affect possession U.S. v. Rey
de facto. 8 Phil. 500
 After 10 years, the possessor or owner FACTS: A vessel Cantabria while on its
may bring an accion publiciana or way to Albay was shipwrecked, resulting
reivindicatoria to recover possession de among other things in the loss of P25,000;
jure unless he is barred by prescription. P15,000 of which were later salvaged by a
group of men who distributed the amount
Recovery by lawful owner or possessor among themselves. The real owner,
 Possession may also be lost when it is however, had no knowledge of the loss till
recovered from the person in after six weeks, shortly after which period,
possession by the lawful owner in a searchers were sent. But by that time, the
reivindicatory action or by the lawful money was nowhere to be found.
possessor in an action to recover the
better right of possession. ISSUE: Was there abandonment, and can
the money still be recovered from the
Case Doctrine finders?
Abandonment for a long period of
time converts the thing to a res nullius. HELD: There was no abandonment for the
However, abandonment does not apply to spes recuperandi had not yet gone, nor the
land, much more a registered land. (Yu vs animus revertendi finally given up. This is
de Lara) evident from the fact that a search party
had looked for the money. Hence, the
Property – Possession (Art. 523 – Art. 561) 25
2015

owner can still recover, less the necessary this case, the possessor has not lost his
expenses for salvaging the same. legal right to the object.
A property owner cannot be held to o He retains his juridical control of
have abandoned the same until at least he the thing which remains in his
has some knowledge of the loss of its patrimony.
possession or the thing.
There is no real intention to abandon Art. 557. The possession of immovables
property when as in the case of a shipwreck and of real rights is not deemed lost, or
or a fire, things are thrown into the sea or transferred for purposes of prescription
upon the highway. to the prejudice of third persons, except
in accordance with the provisions of the
Mortgage Law and the Land Registration
Art. 556. The possession of movables is laws. (462a)
not deemed lost so long as they remain
under the control of the possessor, even Loss of possession of immovables and real
though for the time being he may not rights with respect to third persons
know their whereabouts. (461)  Third persons are not prejudiced except
in accordance with the provisions of the
Loss of possession of movables mortgage law and the registration law.
 The possession of movables shall be  Against a recorded title, ordinary
deemed lost when they cease to be prescription of ownership or real rights
under the control of the possessor either shall not take place to the prejudice of a
because: third person, except in virtue of another
o They have come into the title also recorded and the time shall
possession of a third person; or begin to run from the recording of the
o Although, they have not been latter.
taken by another,
 The possessor has Example:
completely no idea of their O bought an unregistered land from
whereabouts or location A. O registered the deed of sale in the
(the pet rat has been Registry of Property. O went abroad and
missing for sometime; or left his land. P possesses the same for 30
 Even if known, they cannot years. O has lost his possession and
be recovered, whether as ownership over the same, insofar as the P
a matter of fact (an is concerned, but not insofar as G, H, and I
unopened box of pastillas (strangers) are concerned. For said
has been dropped in a strangers, relying on the Registry, are still
deep lake) or of law (a privileged to consider O possessor and
movable lost by owner.
prescription).
 Possession is not lost by the mere fact Art. 558. Acts relating to possession,
that the possessor does not know for executed or agreed to by one who
the time being the precise whereabout possesses a thing belonging to another
of a specific movable when he has not as a mere holder to enjoy or keep it, in
given up all hope of finding it (like a ring any character, do not bind or prejudice
misplaced or lost in particular vicinity). In the owner, unless he gave said holder
Property – Possession (Art. 523 – Art. 561) 26
2015

express authority to do such acts, or thereto is acquired by the possessor.


ratifies them subsequently. (463) The property may be recovered by the
true owner or possessor without
Possessory acts of a mere holder reimbursement.
 The possessor referred to in this article  If the acquisition was in good faith, here
is the same possessor mentioned in are the rules:
Article 525. o Possession in good faith of a
 Acts relating to possession of a mere movable is presumed ownership. It is
holder do not bind or prejudice the equivalent to title. This is known as
possessor in the concept of owner the doctrine of irrrevindicability. No
unless said acts were previously further proof is necessary.
authorized or subsequently ratified by o The possessor’s title, however, is not
the latter. absolute. It is equivalent to title but is
 Possession may be acquired for another not title itself. It is merely
by a stranger provided there be presumptive because it can be
subsequent ratification. (Art 532) defeated by the true owner.
 These are the two exceptions to the
Example: general rule of irrevindicability. An
O owns a dormitory. T, R and D owner can recover in these two
presented themselves as students, but instances:
turned out to be criminals. This fact was 1. When one has lost the movable,
unknown to O. One room is leased to R, a or
rapist; another to T, a thief; and one to D, a 2. When one has been unlawfully
drug pusher. Crimes were committed in deprived.
their respective rooms. Is O liable (or does  He may recover without
T, R, and D’s acts bind O?) NO, unless O reimbursement. But if the thing
allowed it or ratifies their acts subsequently. was sold at a public sale, the
owner must reimburse the buyer.
Art. 559. The possession of movable
property acquired in good faith is  These are the exceptions to the
equivalent to a title. Nevertheless, one exceptions. Even when an owner has
who has lost any movable or has been lost or has been unlawfully deprived, he
unlawfully deprived thereof may recover still cannot recover in these instances:
it from the person in possession of the 1. When the sale is made at
same. merchant’s stores, fairs or
If the possessor of a movable lost markets.
or which the owner has been unlawfully 2. When the owner of the movable
deprived, has acquired it in good faith at is, by his conduct, precluded from
a public sale, the owner cannot obtain denying the seller’s authority to
its return without reimbursing the price sell;
paid therefor. (464a) 3. Where the law enables the
apparent owner to dispose of the
Right of possessor who acquires movable movables as if he were the true
claimed by another owner thereof
 If the possession of a movable property 4. Where the sale is sanctioned by
who acquired in bad faith, no right statutory or judicial authority
Property – Possession (Art. 523 – Art. 561) 27
2015

5. Where the seller has a voidable


title which has not been avoided A third party who acquired in good
at the time of the sale to the faith a stolen vehicle and registered it in
buyer in good faith for value and his own name cannot lawfully refuse to
without notice of the seller’s return it to the true owner and insist
defect of title (remember CLV!) upon reimbursement before delivery.
(Tagatac vs Jimenez, cited in Art. 559 is applicable since Santos was
EDCA vs Santos) unlawfully deprived of the car, and there
6. Where recovery is no longer was no mode of transfer from Santos to
possible because of prescription Marella as the car was stolen. Marella,
7. Where the possessor becomes from whom Aznar bought the car, has
the owner of the thing in no title to the same. Hence, Santos is
accordance with the principle of entitled to recover it without reimbursing
finder’s keepers Aznar. Art. 1506 does not apply
because it presupposes at least a title.
(Aznar v Yapdiangco – stealing equals
Case doctrines unlawful deprivation)
EDCA can no longer recover the
books from Santos because he was not The owner of a ring pledged to a
unlawfully deprived thereof by Cruz. pawnshop by one to whom he has
EDCA delivered the books to Cruz, who entrusted it to be sold on commission
in turn sold it to Santos. Santos is not can recover it from the pawnshop.
merely a possessor, but an OWNER. (Dizon v Suntay)
Non-payment does not void a sale. It is
perfected upon the meeting of the POSSESSION; REQUISITES TO
minds. Hence, ownership shall pass MAKE POSSESSION OF MOVABLE
from the vendor to the vendee upon the PROPERTY EQUIVALENT TO TITLE.
actual or constructive delivery of the — It is quite clear that a party who (a)
thing sold. It does not constitute has lost any movable or (b) has been
unlawful deprivation of personal unlawfully deprived thereof can recover
property. It is a mere voidable sale, and the same from the present possessor
unless it is avoided before the execution even if the latter acquired it in good faith
of the second sale, then the second sale and has, therefore, title thereto for under
is valid. (EDCA v Santos) the first sentence of Article 559, such
manner of acquisition is equivalent to a
Purchaser in good faith of a chattel or title.
movable property is entitled to be There are three (3) requisites to
respected and protected in his make possession of movable property
possession as if he were the true owner equivalent to title, namely:
thereof until a competent court rules (a) the possession should be in
otherwise. In the meantime, as the true good faith;
owner, the possessor in good faith (b) the owner voluntarily parted
cannot be compelled to surrender with the possession of the thing;
possession nor to be required to and
institute an action for the recovery of the (c) the possession is in the concept
chattel. (Edu v Gomez) of owner.
Property – Possession (Art. 523 – Art. 561) 28
2015

Undoubtedly, one who has lost a had mistakenly debited from FMICs
movable or who has been unlawfully account and credited to Tevestecos,
deprived of it cannot be said to have and subsequently traced to Francos
voluntarily parted with the possession account. In fact, this is what BPI-FB did
thereof. This is the justification for the in filing the Makati Case against
exceptions found under the second Franco, et al. It staked its claim on the
sentence of Article 559 of the Civil money itself which passed from one
Code. (Ledesma vs CA) account to another, commencing with
the forged Authority to Debit.
BPI-FB contends that its position is It bears emphasizing that money
not unlike that of an owner of personal bears no earmarks of peculiar
property who regains possession after it ownership, and this characteristic is all
is stolen, and to illustrate this point, BPI- the more manifest in the instant case
FB gives the following example: where which involves money in a banking
Xs television set is stolen by Y who transaction gone awry. Its primary
thereafter sells it to Z, and where Z function is to pass from hand to hand as
unwittingly entrusts possession of the a medium of exchange, without other
TV set to X, the latter would have the evidence of its title. Money, which had
right to keep possession of the property passed through various transactions in
and preclude Z from recovering the general course of banking business,
possession thereof citing Art. 559. even if of traceable origin, is no
BPI-FBs argument is unsound. To exception.
begin with, the movable property Thus, inasmuch as what is
mentioned in Article 559 of the Civil involved is not a specific or determinate
Code pertains to a specific or personal property, BPI-FBs illustrative
determinate thing. A determinate or example, ostensibly based on Article
specific thing is one that is 559, is inapplicable to the instant case.
individualized and can be identified Article 559 does not apply to
or distinguished from others of the money. (BPI Family Savings vs Franco)
same kind.
In this case, the deposit in Franco’s
accounts consists of money which, Art. 560. Wild animals are possessed
albeit characterized as a movable, is only while they are under one's control;
generic and fungible. The quality of domesticated or tamed animals are
being fungible depends upon the considered domestic or tame if they
possibility of the property, because of its retain the habit of returning to the
nature or the will of the parties, being premises of the possessor. (465)
substituted by others of the same kind,
not having a distinct individuality. Possession of animals
Significantly, while Article 559  Animals may be:
permits an owner who has lost or has 1. Wild or animals living in a state of
been unlawfully deprived of a movable nature independently of and without
to recover the exact same thing from the the aid and care of man (great white
current possessor, BPI-FB simply claims shark, ornate wobbegong, brazilian
ownership of the equivalent amount of slug)
money, i.e., the value thereof, which it
Property – Possession (Art. 523 – Art. 561) 29
2015

2. Domesticated or tamed, or animals


which are wild or savage by nature
but have been subdued and made
use of by man and become
accustomed to live in a tamed
condition (tiger ni Chavit)
3. Domestic or tame, or any of the
various animals which live and are
born and reared, under the control
and care of man, lacking the instinct
to roam freely (dog, cat, carabao,
cow)
 Wild animals may be the object of
hunting. They are possessed only if they
are under one’s control. Possession of
wild animals are lost when they regain
their freedom or come under another’s
control.
 Domesticated animals are possessed if
they habitually return to the premises of
the possessor.

Art. 561. One who recovers, according to


law, possession unjustly lost, shall be
deemed for all purposes which may
redound to his benefit, to have enjoyed
it without interruption. (466)

 This article applies to both possession in


good faith as well as to possession in
bad faith, but only if beneficial to the
possessor (like for purposes of
prescription)
 The recovery of possession must be
according to law – through legal means;
otherwise, the benefit of continuous and
uninterrupted possession during the
intervening period cannot be invoked.

Example:
P possessed a parcel of land on Jan.
1, 2000. In 2005, P was ousted by O. P was
able to recover the possession in 2010. P is
considered to have possessed the land
from 1995.

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