POSSESSION

Sir: It is important to distinguish between the two since some

rights are only available to one as compared to the other.

A . In General
-

Note: They are NOT mutually exclusive; both status

may reside in the same person (ex. actual possessor
is also the possessor recognized by law)

How Exercised
Material Possession of the Thing
Utilization
Constructive Possession (as held in Ramos v. Dir. of 1.
Lands)
Enjoyment of the Right
Thing Subjected to Ones Will
Execution of the Proper Acts and Legal Formalities
Established by Law for Acquiring such Right

Rights Arising From Possession

Right to be Respected Possession
o Entitles the possessor to take preventive actions and protect
himself against deprivation
o Actions available from this right:
Fencing the property (Art. 430)
Doctrine of Self-Help (Art. 429) the possessor is
entitled to use reasonably necessary force to repel an
actual or threatened unlawful physical invasion of
the property. The exercise of such force must be
immediate; otherwise he will need to course his
action through the courts
Right to be Restored in Possession
Derived from the right to be respected in ones possession
Remedial in nature; actions based on this right are instituted
after the unlawful deprivation
There are however cases of lawful deprivations:
Expropriation, after proceedings have
been instituted and the provisional
Cases of necessary interferences as
provided in NCC Art. 432
In these cases of lawful deprivation, the possessor is
not entitled to the actions for recovery.
Actions for recovery:
Accion interdictal may only be filed within one year from
the time of the deprivation. The issue resolved is
possession; plaintiff only needs to proved that he had prior
possession and was forcibly deprived of his property or that
property was unlawfully detained from him. Divided
further into:

Characteristics/Qualities of Possession
Exclusive only the possessor can exercise the right
of possession.
Indivisible the right of possession cannot be recognized in
another personality. There are however exceptions to the 2.
indivisibility of possession:
Married Persons
Partnerships
Co-ownership
Intestate Heirs
With Intent/Animus Possidendi
Sir: If any of these are absent, then possession is not
de jure at the very least; it may only be de facto.
Characters of Exercise
As to Name
Self the right of possession is exercised in ones own name
In Name of Another the right of possession is vested in another
and the one in actual possession is exercising it in his name
As to Knowledge of Status of Title/Acquisition
Good Faith when possessor is NOT aware of the
existing flaw in his title that may invalidate his
acquisition
Bad Faith when possessor IS aware of the flaw in
the title which may invalidate his acquisition
As to Concept
Owner (note: look/remember how sir discussed this
-Ron) possessor believes himself to be the owner and
does not recognize a superior right in anyone else
Holder actual (and may even be legal) possessor
who recognizes in another a superior right, which is
usually ownership
As to Status
De Jure possession is one recognized by law

De Facto possession, which is actual, only gives rise

to a presumption that the possession is one recognized
by law; said presumption is rebuttable and can be
defeated by the possessor de jure

Forcible Entry when current possessor (defendant) took

possession by violence, intimidation, force, stealth or
strategy.
Unlawful Detainer when current possessor initially
possessed the property validly but is now refusing to return
possession of the same when his right to possess it has
abated.
Accion publiciana available when deprivation of
possession does not fall under the grounds covered by
interdictal or when 1 year has passed since the time of the
deprivation. It may however be filed within the 1 year
period as well. The action prescribes in 10 years. The issue
resolved is the real right of possession; to garner favorable
judgment, the party must show that he has a better right of
possession as against the adverse party.

Accion reinvindicatoria - the action to recover ownership. It

compensation for it,

computed as (a) the expenses
Entitled to reimbursement
Entitled to reimbursement
made to make the useful
with right to retain property
but has NO right to retain the
improvement OR (b) the
until fully reimbursed
property
prescribes in 10 years when ordinary acquisitive prescription is amount of the increase in value
applicable or in 30 years when it is extraordinary. The issue of the property due to the useful
improvement
resolved is ownership (and hence is not barred by res judicata
from the two abovementioned actions); plaintiff will have to
Necessary Expenses
prove his title and the identity of the
Luxurious Expenses
property
Both
GF
and
BF
possessors are NOT entitled to
o Replevin the action to recover movable property
reimbursement but both have the limited right of removal (see
above).
3. Right to Accession
Note:
The
right
of
retention
acts as a security for the possessor
o Entitles possessor to everything produced by the property
in good faith so that reimbursement to him is assured by the
AND everything attached or incorporated
fact that the rightful owner may not recover property until he
thereto.
o Accessions include:
has fully reimbursed him.
Fruits produced by the property; may be natural, *Note: The repayment of useful expenses is based on the
industrial, and civil
principle against unjust enrichment; since it would be unfair if
Accessories those attached to the property which may rightful owner will benefit from the useful improvement but
(a) increase the value or utility of the property,
will not be required to pay for it. However, only the good faith
preserve the property, or (c) embellish the property.
possessor is entitled to it since a person is not allowed to profit
from his wrongdoing.
4. Right to Enjoy
o Entitles possessor to use the property according to its 6. Right to Dispose
purpose
o Entitles possessor a limited right to dispose; it is limited
in the sense that he may only dispose of his right of
5. Right to Reimbursement
possession (ex. a lessee sublets the property to a
o Should the rightful owner recover the property from the
sublessee).
actual possessor, the actual possessor is entitled to
reimbursements for certain expenses, depending on the 7. Right to Exclude
presence of good faith or bad faith,
o Possession is a real right, which may be enforced against
the whole world.
Good Faith
Bad Faith
o Actions are available to enforce this real right (see
discussion on Right to Be Respected + Right to Be
Useful Expenses
Restored in Possession)
Entitled to reimbursement
Not entitled to
with right to retain property
reimbursement
- Loss of Possession
until fully reimbursed and also
o Under NCC Art. 555, there are 4 ways that a possessor
a limited right of removal
may lose his right of possession:
Limited Right of Removal:
Abandonment
Possessor may also choose to
Assignment to another may be done through an
remove the useful
onerous or gratuitous title
improvement provided that
Loss or Total Destruction of the Property or Thing Goes
such removal will not cause
Out of the Commerce of Man
any damage.
Possession of Another possession by another must not be
*However, should the rightful
owner choose to keep the
useful improvement,
possessor cannot remove it
but is entitled to
With regard to possession by another, there are however, recognized
exceptions to the rule. Under these circumstances, possession is not
lost even if property is possessed by another:

under the tolerance of the rightful possessor (otherwise it will

not affect the right of possession). If the possession of another
has lasted for more than a year, the rightful possessor shall
lose the right to file an accion interdictal. But he shall not lose
the real right of possession until after the lapse of 10 years

Presumption of Continuity a present possessor who can

prove his possession at a prior point in time is presumed to also Art. 555 A possessor may lose his possession:
(1) By the abandonment of the thing;
have had possession of the property during the intermediate
By an assignment made to another either by onerous or gratuitous
period. Such presumption, however, is rebuttable.
Tolerance when the rightful possessor does not give his title;
express consent but allows actual possessor to continue with his By the destruction or total loss of the thing, or because it goes out
of commerce;
actions
License when the rightful possessor gives his express consent By the possession of another, subject to the provisions of Article
537, if the new possession has lasted longer than one year. But the
to actual possessors actions
Acts done clandestinely, or with violence, force or intimidation real right of possession is not lost till after the lapse of ten years.
(460a)
Under NCC Art. 537, these acts do not affect possession

B . Definition

Art. 523 Possession is the holding of a thing or the enjoyment of a

right. (430a)
Art. 525 The possession of things or rights may be had in one of
two concepts: either in the concept of owner, or in that of the
holder of the thing or right to keep or enjoy it, the ownership
pertaining to another person. (432)

Owner possessor believes himself to be the owner and does

not recognize a superior right in anyone else
Holder actual (and may even be legal) possessor who
recognizes in another a superior right, which is usually
ownership
Sir: Someone who possesses the property in the concept of a
holder is necessarily a possessor in bad faith, as he knows that
someone has a superior right (existence of which then
constitutes a flaw in his title).
Art. 530 Only things and rights which are susceptible of being
appropriated may be the object of possession. (437)

Possession is defined by NCC Art. 523 to be the holding of a

thing or enjoyment of a right.
Sir: It is essentially subjecting the object under ones exclusive
control.
Art. 531 Possession is acquired by the material occupation of a
thing or the exercise of a right, or by the fact that it is subject to the
action of our will, or by the proper acts and legal formalities
established for acquiring such right. (438a)

Possession from the POV of an actual possessor (possessor de

facto)

Possession from the POV of the one who lost possession

(possessor de jure)
Loss of Possession
o Under NCC Art. 555, there are 4 ways that a possessor may
lose his right of possession:
Abandonment
Assignment to another may be done through an onerous
or gratuitous title
Loss or Total Destruction of the Property or Thing Goes
Out of the Commerce of Man
Possession of Another possession by another must not be under
the tolerance of the rightful possessor (otherwise it will not affect
the right of possession). If the possession of another has lasted for
more than a year, the rightful possessor shall lose the right to file
an accion interdictal. But he shall not lose the real

right of possession until after the lapse of 10 years.

o With regard to possession by another, there are however,
recognized exceptions to the rule. Under these
circumstances, possession is not lost even if property is
possessed by another:
Presumption of Continuity a present possessor who can
prove his possession at a prior point in time is presumed to
also have had possession of the property during the
intermediate period. Such presumption, however, is
rebuttable.
Tolerance when the rightful possessor does not give his
express consent but passively allows actual possessor to
continue with his actions
License when the rightful possessor gives his express
consent to actual possessors actions
Acts done clandestinely, or with violence, force or
intimidation Under NCC Art. 537, these acts do not
affect possession
When violence, force, or intimidation is used to take
possession, there is a natural objection on the part of the
dispossessed person by the very fact that violence, force, or
intimidation had to be used.
The law does not allow violence as a means to acquire to
acquire property; to do so would promote lex tallones (law of
retaliation) wherein everyone would continue the use of
violence to claim and/or reclaim property.

Who Exercises animus possidendi

Art. 528 Possession acquired in good faith does not lose this
character except in the case and from the moment facts exist
Art. 524 Possession may be exercised in ones own name or in that which show that the possessor is not unaware that he possesses
the thing improperly or wrongfully. (435a)
of another.
-

Self the right of possession is exercised in ones own name

Art. 529 It is presumed that possession continues to be enjoyed on
In Name of Another the right of possession is vested in another the same character in which it was acquired, until the contrary is
and the one in actual possession is exercising it in his name
proved. (436)
Art. 532 Possession may be acquired by the same person who is to
enjoy it, by his legal representative, by his agent, or by any person C . Character and Effects
without any power whatever; but in the last case, the possession
shall not be considered as acquired until the person in whose name 1. Right to be Respected in Possession
the act of possession was executed has ratified the same, without- Includes the right to recover/be restored in his possession
prejudice to the juridical consequences of negotiorum gestio in a
proper case. (439a)
Art. 428 The owner has the right to enjoy and dispose of a thing,
without other limitations than those established by law.
Art. 535 Minors and incapacitated persons may acquire the
possession of things; but they need the assistance of their legal The owner has also a right of action against the holder and
representatives in order to exercise the rights which from the possessor of the thing in order to recover it. (348a)
possession arise in their favor. (443)
Art. 539 Every possessor has a right to be respected in his
Art. 538 Possession as a fact cannot be recognized at the same time possession; and should he be disturbed therein he shall be
in two different personalities except in the cases of co-possession. protected in or restored to said possession by the means
Should a question arise regarding the fact of possession, the present established by the laws and the Rules of Court.
possessor shall be preferred; if there are two possessors, the one
longer in possession; if the dates of the possession are the same, the A possessor deprived of his possession through forcible entry
one who presents a title; and if all these conditions are equal, the may within ten days from the filing of the complaint present a
thing shall be placed in judicial deposit pending determination of its motion to secure from the competent court, in the action for
forcible entry, a writ of preliminary mandatory injunction to
possession or ownership through proper proceedings. (445)
restore him in his possession. The court shall decide the motion
within thirty (30) days from filing thereof. (446a)
Status
Art. 526 He is deemed a possessor in good faith who is not aware Art. 537 Acts merely tolerated, and those executed clandestinely
that there exists in his title or mode of acquisition any flaw which and without the knowledge of the possessor of a thing, or by
violence, do not affect possession. (444)
invalidates it.
He is deemed a possessor in bad faith who possesses in any case
2. Right to Accessories
contrary to the foregoing.

Mistake upon a doubtful or difficult question of law may be the Art. 542 The possession of real property presumes that of the
basis of good faith. (433a)
movables therein, so long as it is not shown or proved that they
should be exlcluded. (449)
- Good Faith when possessor is NOT aware of the existing flaw
in his title that may invalidate his acquisition
Art. 544 A possessor in good faith is entitled to the fruits received
- Bad Faith when possessor IS aware of the flaw in the title before the possession is legally interrupted.
which may invalidate his acquisition
Natural and industrial fruits are considered received from the time
Art. 527 Good faith is always presumed, and upon him who alleges they are gathered or severed.
bad faith on the part of a possessor rests the burden of proof. (434)
Civil fruits are deemed to accrue daily and belong to the
possessor in good faith on that proportion. (451)

Art. 547 If the useful improvements can be removed without

damage to the principal thing, the possessor in good faith may
remove them, unless the person who recovers the possession
exercises the option under paragraph 2 of the preceding article. (n)

Such presumption, however, is rebuttable.

Art. 561 One who recovers, according to law, possession unjustly

Art. 551 Improvements caused by Nature or time shall always inure lost, shall be deemed for all purposes, which may redound to his
to the benefit of the person who has succeeded in recovering benefit, to have enjoyed it without interruption. (466)
possession. (456)
Art. 556 The possession of movables is not deemed lost so long
Art. 560 Wild animals are possessed only while they are under onesas they remain under the control of the possessor, even though for
control; domesticated or tamed animals are considered domestic or the time being he may not know their whereabouts. (461)
tame, if they retain the habit of returning to the premises of the
Art. 557 The
possessor. (465)
deemed lost,
Art. 438 Hidden treasure belongs to the owner of the land, building, prejudice of
provisions of
or other property on which it is found.
(462a)

possession of immovables and of real rights is not

or transferred for purposes of prescription to the
third persons, except in accordance with the
the Mortgage Law and the Land Registration laws.

Nevertheless, when the discovery is made on the property of

another, or of the State or any of its subdivisions, and by chance,
one-half thereof shall be allowed to the finder. If the finder is a Art. 533 The possession of hereditary property is deemed
transmitted to the heir without interruption and from the moment
trespasser, he shall not be entitled to any share of the treasure.
of the death of the decedent, in case the inheritance is accepted.
If the things found be of interest to science or the arts, the State may
acquire them at their just price, which shall be divided in One who validly renounces an inheritance is deemed never to
have possessed the same. (440)
conformity with the rule stated. (351a)
Art. 534 On who succeeds by hereditary title shall not suffer the
Art. 439 By treasure is understood, for legal purposes, any hidden consequences of the wrongful possession of the decedent, if it is
and unknown deposit of money, jewelry, or other precious objects, not shown that he was aware of the flaws affecting it; but the
effects of possession in good faith shall not benefit him except
the lawful ownership of which does not appear. (352)
from the date of the death of the decedent. (442)
Right to Accession
o Entitles possessor to everything produced by the property AND
4. Right to Reimbursement
everything attached or incorporated thereto.
o Accessions include:
Fruits produced by the property; may be natural, industrial,Art. 546 Necessary expenses shall be refunded to every
possessor; but only the possessor in good faith may retain the
and civil
thing until he has been reimbursed therefor.
Accessories those attached to the property which may
increase the value or utility of the property, (b) preserve
Useful expenses shall be refunded only to the possessor in good
the property, or (c) embellish the property.
faith with the same right of retention, the person who has defeated
him in the possession having the option of refunding the amount
of the expenses or of paying the increase in value which the thing
3. Continuity of Possession corpus possessionis
may have acquired by reason thereof. (453a)
Art. 554 A present possessor who shows his possession at some
previous time, is presumed to have held possession also during the Art. 548 Expenses for pure luxury or mere pleasure shall not be
intermediate period, in the absence of proof to the contrary. (459) refunded to the possessor in good faith; but he may remove the
ornaments with which he has embellished the principal thing if it
- Presumption of Continuity a present possessor who can prove suffers no injury thereby, and if his successor in the possession
his possession at a prior point in time is presumed to also have does not prefer to refund the amount expended. (454)
had possession of the property during the intermediate period.
Art. 549 The possessor in bad faith shall reimburse the fruits
received and those which the legitimate possessor could have

received, and shall have a right only to the expenses mentioned

in paragraph 1 of Article 546 and in Article 443. The expenses

incurred in improvements for pure luxury or mere pleasure shall

not be refunded to the possessor in bad faith; but he may remove
the objects for which such expenses have been incurred,
provided that the thing suffers no injury thereby, and that the
lawful possessor does not prefer to retain them by paying the
value they may have at the time he enters into possession. (455a)

a limited right of removal

Limited Right of Removal:
Possessor may also choose to
remove the useful improvement
provided that such removal will
not cause any damage.

Art. 545 If at the time the good faith ceases, there should be any
natural or industrial fruits, the possessor shall have a right to a
part of the expenses of cultivation, and to a part of the net
harvest, both in proportion to the time of the possession.

*However, should the rightful

owner choose to keep the useful
improvement, possessor cannot
remove it but is entitled to
compensation for it, computed as
(a) the expenses made to make
the useful improvement OR (b)
the amount of the increase in
value of the property due to the
useful improvement

The charges shall be divided on the same basis by the two

possessors.
The owner of the thing may, should he so desire, give the
possessor in good faith the right to finish the cultivation and
gathering of the growing fruits, as an indemnity for his part of
the expenses of cultivation and the net proceeds; the possessor in
good faith who for any reason whatever should refuse to accept
this concession, shall lose the right to be indemnified in any
other manner. (452a)
Art. 550 The costs of litigation over the property shall be borne
by every possessor. (n)
Art. 552 A possessor in good faith shall not be liable for the
deterioration or loss of the thing possessed, except in cases in
which it is proved that he has acted with fraudulent intent or
negligence, after the judicial summons.
A possessor in bad faith shall be liable for deterioration or loss in
every case, even if caused by a fortuitous event. (457a)

Art. 553 One who recovers possession shall not be obliged to pay
for improvements which have ceased to exist at the time he takes
possession of the thing. (458)
-

Should the rightful owner recover the property from the

actual possessor, the actual possessor is entitled to
reimbursements for certain expenses, depending on the
presence of good faith or bad faith,

Good Faith

Bad Faith

Useful Expenses
Entitled to reimbursement
Not entitled to
with right to retain property
reimbursement
until fully reimbursed and also

Necessary Expenses
Entitled to reimbursement
Entitled to reimbursement
with right to retain property
but has NO right to retain the
until fully reimbursed
property
Luxurious Expenses
Both GF and BF possessors are NOT entitled to reimbursement
but both have the limited right of removal (see above).
Note: The right of retention acts as a security for the possessor in
good faith so that reimbursement to him is assured by the fact
that the rightful owner may not recover property until he has
fully reimbursed him.
*Note: The repayment of useful expenses is based on the
principle against unjust enrichment; since it would be unfair if
rightful owner will benefit from the useful improvement but will

not be required to pay for it. However, only the good faith
possessor is entitled to it since a person is not allowed to profit
from his wrongdoing.

5. Possession in Common
Art. 543 Each one of the participants of a thing possessed in
common shall be deemed to have exclusively possessed the
part which may be allotted to him upon the division thereof,
for the entire period during which the co-possession lasted.
Interruption in the possession of the whole or a part of a thing
possessed in common shall be to the prejudice of all the
possessors. However, in case of civil interruption, the Rules of
Court shall apply. (450a)

6. Basis of Title
Art. 1643 In the lease of things, one of the parties binds himself to
Art. 541 A possessor in the concept of owner has in his favor the give to another the enjoyment or use of a thing for a price certain,
legal presumption that he possesses with a just title and he cannot and for a period which may be definite or indefinite. However, no
be obliged to show or prove it. (448a)
lease for more than ninety-nine years shall be valid. (1543a)
Art. 559 The possession of movable property acquired in good
faith is equivalent to a title. Nevertheless, one who has lost any
movable or has been unlawfully deprived thereof, may recover it
from the person in possession of the same.
If the possessor of a movable lost or of which the owner has been
unlawfully deprived, has acquired it in good faith at a public sale,
the owner cannot obtain its return without reimbursing the price
paid therefor. (464a)
Art. 540 Only the possession acquired and enjoyed in the concept
of owner can serve as a title for acquiring dominion. (447)

7. Effect on True Owner

Art. 558 Acts relating to possession, executed or agreed to by one
who possesses a thing belonging to another as a mere holder to
enjoy or keep it, in any character, do not bind or prejudice the
owner, unless he gave said holder express authority to do such acts,
or ratifies them subsequently. (463)

D. Lease of Urban Lands

-

Lease of rural lands are governed by agricultural or agrarian

laws
Lease of work covered by labor laws
1. Definition
Art. 1642 The contract of lease may be of things, or of work and
service. (1542)

Art. 1644 In the lease of work or service, one of the parties binds
himself to execute a piece of work or to render to the other some
service for a price certain, but the relation of principal and agent
does not exist between them. (1544a)

Art.
1645
bemerely
the
subject
of aor
contract
ofConsumable
lease,
exceptgoods
when
they are
to bematter
exhibited
when
they
are
accessory
to ancannot
industrial
establishment.
(1545a)
(2) Agents, the property whose administration or sale may have been
entrusted to them, unless the consent of the principal has been
given;
2. Who is Qualified/Disqualified
(3) Executors and administrators, the property of the estate under
Art. 1646 The persons disqualified to buy referred to in Articles
1490 and 1491, are also disqualified to become lessees of the administration;
things mentioned therein. (n)
(4) Public officers and employees, the property of the State or of any
subdivision thereof, or of any government-owned or controlled
Art. 1490 The husband and the wife cannot sell property to each
corporation, or institution, the administration of which has been
other, except:
intrusted to them; this provision shall apply to judges and
government experts who, in any manner whatsoever, take part in
(1) When a separation of property was agreed upon in the marriage
the sale;
settlements; or
(5) Justices, judges, prosecuting attorneys, clerks of superior and
(2) When there has been a judicial separation or property under Article
inferior courts, and other officers and employees connected with
191. (1458a)
the administration of justice, the property and rights in litigation
or levied upon an execution before the court within whose
Art. 1491 The following persons cannot acquire by purchase, even
jurisdiction or territory they exercise their respective functions;
at a public or judicial auction, either in person or through the
this prohibition includes the act of acquiring by assignment and
mediation of another:
shall apply to lawyers, with respect to the property and rights
which may be the object of any litigation in which they may take
(1) The guardian, the property of the person or persons who may be
part by virtue of their profession.
under his guardianship;
(6) Any others specially disqualified by law. (1459a)
3. Obligations of Parties
a. Lessor
Art. 1654 The lessor is obliged:
(1) To deliver the thing which is the object of the contract in such
a condition as to render it fit for the use intended;
(2) To make on the same during the lease all the necessary repairs
in order to keep it suitable for the use to which it has been
devoted, unless there is a stipulation to the contrary;
(3) To maintain the lessee in the peaceful and adequate enjoyment
of the lease for the entire duration of the contract. (1554a)
Art. 1655 If the thing leased is totally destroyed by a
fortuitous event, the lease is extinguished. If the destruction is
partial, the lessee may choose between a proportional
reduction of the rent and a rescission of the lease. (n)
Art. 1656 The lessor of a business or industrial establishment
may continue engaging in the same business or industry to
which the lessee devotes the thing leased, unless there is a
stipulation to the contrary. (n)
Art. 1661 The lessor cannot alter the form of the thing leased
in such a way as to impair the use to which the thing is

devoted under the terms of the lease. (1557a)

Art. 1664 The lessor is not obliged to answer for a mere
act of trespass which a third person may cause on the use
of the thing leased; but the lessee shall have a direct
action against the intruder.
There is a mere act of trespass when the third person
claims no right whatever. (1560a)
Art. 1678 If the lessee makes, in good faith, useful
improvements which are suitable to the use for which the
lease is intended, without altering the form or substance
of the property leased, the lessor upon the termination of
the lease shall pay the lessee one-half of the value of the
improvements at that time. Should the lessor refuse to
reimburse said amount, the lessee may remove the
improvements, even though the principal thing may
suffer damage thereby. He shall not, however, cause any
more impairment upon the property leased than is
necessary.
With regard to ornamental expenses, the lessee shall not
be entitled to any reimbursement, but he may remove the
ornamental objects, provided no damage is caused to the

principal thing, and the lessor does not choose to retain them
by paying their value at the time the lease is extinguished. (n)

b. Lessee

proportion to the time - including the first forty days - and the
part of the property of which the lessee has been deprived.

Art. 1657 The lessee is obliged:

(1) To pay the price of the lease according to the terms stipulated;
(2) To use the thing leased as a diligent father of a family, devoting it
to the use stipulated; and in the absence of stipulation, to that which
may be inferred from the nature of the thing leased, according to
the custom of the place;
(3) To pay expenses for the deed of lease. (1555)
Art. 1658 The lessee may suspend the payment of the rent in case
the lessor fails to make the necessary repairs or to maintain the
lessee in peaceful and adequate enjoyment of the property leased.
(n)
Art. 1662 If during the lease it should become necessary to make
some urgent repairs upon the thing leased, which cannot be
deferred until the termination of the lease, the lessee is obliged to
tolerate the work, although it may be very annoying to him, and
although during the same, he may be deprived of a part of the
premises.
If the repairs last more than forty days the rent shall be reduced in
Art. 1665 The lessee shall return the thing leased, upon the
termination of the lease, as he received it, save what has been
lost or impaired by the lapse of time, or by ordinary wear and
tear, or from an inevitable cause. (1561a)
Art. 1666 In the absence of a statement concerning the
condition of the thing at the time the lease was constituted, the
law presumes that the lessee received it in good condition,
unless there is proof to the contrary. (1562)
Art. 1667 The lessee is responsible for the deterioration or loss
of the thing leased, unless he proves that it took place without
his fault. This burden of proof on the lessee does not apply
when the destruction is due to earthquake, flood, storm or
other natural calamity. (1563a)
Art. 1668 The lessee is liable for any deterioration caused by
members of his household and by guests and visitors. (1564a)

When the work is of such a nature that the portion which the
lessee and his family need for their dwelling becomes
uninhabitable, he may rescind the contract if the main purpose
of the lease is to provide a dwelling place for the lessee.
(1558a)
Art. 1663 The lessee is obliged to bring to the knowledge of
the proprietor, within the shortest possible time, every
usurpation or untoward act which any third person may have
committed or may be openly preparing to carry out upon the
thing leased.

He is also obliged to advise the owner, with the same urgency,

of the need of all repairs included in No. 2 of Article 1654.
In both cases the lessee shall be liable for the damages which,
through his negligence, may be suffered by the proprietor.
If the lessor fails to make urgent repairs, the lessee, in order to
avoid an imminent danger, may order the repairs at the lessor's
cost. (1559a)

5. Termination
Art. 1659 If the lessor or the lessee should not comply with the
obligations set forth in Articles 1654 and 1657, the aggrieved
party may ask for the rescission of the contract and
indemnification for damages, or only the latter, allowing the
contract to remain in force. (1556)
Art. 1660 If a dwelling place or any other building intended
for human habitation is in such a condition that its use brings
imminent and serious danger to life or health, the lessee may
terminate the lease at once by notifying the lessor, even if at
the time the contract was perfected the former knew of the
dangerous condition or waived the right to rescind the lease on
account of this condition. (n)
Art. 1669 If the lease was made for a determinate time, it
ceases upon the day fixed, without the need of a demand.
(1565)

4. Payment
Art. 1679 If nothing has been stipulated concerning the place
and the time for the payment of the lease, the provisions or
Article 1251 shall be observed as regards the place; and with
respect to the time, the custom of the place shall be followed.
(1574)

6. Renewal
Art. 1670 If at the end of the contract the lessee should
continue enjoying the thing leased for fifteen days with the

acquiescence of the lessor, and unless a notice to the contrary

by either party has previously been given, it is understood that
there is an implied new lease, not for the period of the original
contract, but for the time established in Articles 1682 and
1687. The other terms of the original contract shall be revived.
(1566a)
Art. 1672 In case of an implied new lease, the obligations
contracted by a third person for the security of the principal
contract shall cease with respect to the new lease. (1567)

7. Unlawful Detainer
Art. 1671 If the lessee continues enjoying the thing after the
expiration of the contract, over the lessor's objection, the
former shall be subject to the responsibilities of a possessor in
bad faith. (n)
Art. 1673 The lessor may judicially eject the lessee for any of
the following causes:
(1) When the period agreed upon, or that which is fixed for the
duration of leases under Articles 1682 and 1687, has expired;
(2) Lack of payment of the price stipulated;

(3) Violation of any of the conditions agreed upon in the contract;

(4) When the lessee devotes the thing leased to any use or service
not stipulated which causes the deterioration thereof; or if he
does not observe the requirement in No. 2 of Article 1657, as
regards the use thereof.
The ejectment of tenants of agricultural lands is governed by
special laws. (1569a)
Art. 1674 In ejectment cases where an appeal is taken the
remedy granted in Article 539, second paragraph, shall also
apply, if the higher court is satisfied that the lessee's appeal is
frivolous or dilatory, or that the lessor's appeal is prima facie
meritorious. The period of ten days referred to in said article
shall be counted from the time the appeal is perfected. (n)
Art. 1675 Except in cases stated in Article 1673, the lessee
shall have a right to make use of the periods established in
Articles 1682 and 1687. (1570)

Art. 1677 The purchaser in a sale with the right of

redemption cannot make use of the power to eject
the lessee until the end of the period of redemption

8. Transfer of Lease
Art. 1650 When in the contract of lease of things there is no
Art. 1649 The lessee cannot assign the lease without the consent express prohibition, the lessee may sublet the thing leased, in
of the lessor, unless there is a stipulation to the contrary. (n)
whole or in part, without prejudice to his responsibility for the
performance of the contract toward the lessor. (1550)
Art. 1676 The purchaser of a piece of land which is under a lease
that is not recorded in the Registry of Property may terminate the Art. 1651 Without prejudice to his obligation toward the
lease, save when there is a stipulation to the contrary in the sublessor, the sublessee is bound to the lessor for all acts which
contract of sale, or when the purchaser knows of the existence of refer to the use and preservation of the thing leased in the manner
the lease.
stipulated between the lessor and the lessee. (1551)
If the buyer makes use of this right, the lessee may demand that
he be allowed to gather the fruits of the harvest which Art. 1652 The sublessee is subsidiarily liable to the lessor for any
corresponds to the current agricultural year and that the vendor rent due from the lessee. However, the sublessee shall not be
indemnify him for damages suffered.
responsible beyond the amount of rent due from him, in
If the sale is fictitious, for the purpose of extinguishing the lease,
the supposed vendee cannot make use of the right granted in the
first paragraph of this article. The sale is presumed to be fictitious
if at the time the supposed vendee demands the termination of the
lease, the sale is not recorded in the Registry of Property. (1571a)
9. Sub-lease

10. Warranties

accordance with the terms of the sublease, at the time of the

extrajudicial demand by the lessor.
Payments of rent in advance by the sublessee shall be deemed not
to have been made, so far as the lessor's claim is concerned,
unless said payments were effected in virtue of the custom of the
place. (1552a)
Art. 1547 In a contract of sale, unless a contrary intention
appears, there is:

(1) An implied warranty on the part of the seller that he has a right to
sell the thing at the time when the ownership is to pass, and that Art. 1561 The vendor shall be responsible for warranty against
the buyer shall from that time have and enjoy the legal and the hidden defects which the thing sold may have, should they
peaceful possession of the thing;
render it unfit for the use for which it is intended, or should they
diminish its fitness for such use to such an extent that, had the
(2) An implied warranty that the thing shall be free from any hidden vendee been aware thereof, he would not have acquired it or
faults or defects, or any charge or encumbrance not declared or would have given a lower price for it; but said vendor shall not be
known to the buyer.
answerable for patent defects or those which may be visible, or
for those which are not visible if the vendee is an expert who, by
This Article shall not, however, be held to render liable a sheriff, reason of his trade or profession, should have known them.
auctioneer, mortgagee, pledgee, or other person professing to sell (1484a)
by virtue of authority in fact or law, for the sale of a thing in
which a third person has a legal or equitable interest. (n)
Art. 1653 The provisions governing warranty, contained in the
Title on Sales, shall be applicable to the contract of lease.
Art. 1548 Eviction shall take place whenever by a final judgment
based on a right prior to the sale or an act imputable to the In the cases where the return of the price is required, reduction
vendor, the vendee is deprived of the whole or of a part of the shall be made in proportion to the time during which the lessee
thing purchased.
enjoyed the thing. (1553)
The vendor shall answer for the eviction even though nothing has
been said in the contract on the subject.
Art. 1666 In the absence of a statement concerning the condition
of the thing at the time the lease was constituted, the law
The contracting parties, however, may increase, diminish, or presumes that the lessee received it in good condition, unless
suppress this legal obligation of the vendor. (1475a)
there is proof to the contrary. (156