Property

I. Definition
Property – an economic concept, meaning a mass of things useful to human activity and which are
necessary to life, for which reason they may be organized and distributed in one way or another,
considered as property.
It must have:
a. Utility – ability to serve as a means to satisfy human needs
b. Substantivity – an autonomous or separate existence
c. Appropriability or susceptibility to appropriation

Differences between Real Rights and Personal Rights

II. Classification
A. Classification under the Civil Code
a. Immovable or Real Property [Art.415]
i. By nature – their intrinsic quality have no utility except in a fixed place
1. [1] Land, buildings, roads and constructions of all kinds adhered to the soil;
2. [8] Mines, quarries, and slag dumps, while the matter thereof forms part of
the bed, and waters either running or stagnant
ii. By incorporation –
1. [2] Trees, plants and growing fruits, while they are attached to the land or
form part of an integral part of an immovable
2. [3] Everything attached to an immovable in a fixed manner, in such a way
that it cannot be separated therefrom without breaking the material or
deterioration of the object
3. [7] Fertilizer actually used on a piece of land
iii. By destination –
1. [4] Statues, reliefs, paintings, or other objects for use or ornamentation
placed in buildings or on lands by the owner of the immovable in such a
manner that it reveals the intention to attach them permanently to the
tenements
 REQUISITES:
o Placed by the owner or by a tenant as agent of the owner
o With the intention of attaching them permanently, even if
adherence will not involve breakage or injury
 Where the improvements or ornaments placed by the lessee are not
to pass to the owner at the expiration of the lease, they remain
movables for chattel mortgage purposes (Davao Sawmill v. Castillo)
2. [5] Machinery, receptacles, instruments or implements intended by the
owner of the tenement for an industry or works which may be carried on in
a building or on a piece of land, and which tend directly to meet the needs
of the said industry or works
 REEQUISITES:
 o Placed by the owner or a tenant as agent of the owner
(Davao Saw Mill v Castillo)
o Adapted to the needs of the industry or work carried on
 Machinery placed in a mortgaged central, to replace old machinery,
becomes subject to the prior real estate mortgage (Berkenkotter v.
Cu Unjieng)
3. [6] Animal houses, pigeon-houses, beehives, fish ponds or breeding places
of similar nature in case the owner has placed them with the intention to
have them permanently attached to the land, and forming a permanent
part of it. The animals in these places are included.
 REQUISITES:
o Placed by the owner, or by a tenant as agent of the owner,
with the intention of permanent attachment
o Forming a permanent part of the immovable
4. [9] Docks and structures which, though floating, are intended by their
nature and object to remain at a fixed place on a river, lake or coast.
iv. By analogy –
1. [10] Contracts for public works, and servitudes and other real rights over
immovable property
b. Movable or Personal Property [Art.416-417]
i. Art.416
1. Those movables susceptible of appropriation which are not included in the
preceding article
2. Real property which by any provision of law is considered personalty
3. Forces of nature which are brought under control by science
 Gas and electricity are considered personal property (US v.
Tambunting)
4. In general, all things which can be transported from place to place to which
they are fixed.
ii. Art.417
1. Obligations and actions which have for their object movables or
demandable sums
2. Shares of stock of agricultural, commercial and industrial entities, although
they may have real estate
B. By Ownership
a. Res Nullius
b. Public Dominion – held in trust for the interest of the community
i. Characteristics
1. Inalienable
 But may be declared private property and disposed of when no
longer need for public use
2. Not acquired by adverse possession
3. Not subject to attachment or execution
 ii. Property of State [Art.420-422]
1. For Public Use - may be used by anyone indiscriminately
 Art.420[1] Roads, canals, rivers, torrents, ports and bridges
constructed by the State, banks, shores, roadsteads and others of
similar character
2. For Public Service – may be used only by authorized persons
3. For Development of National Wealth
iii. Property of Municipal Corporations [Art.424, par.1]
 Property for public use consisting of provincial roads, city streets,
municipal streets, the squares, fountains, public waters,
promenades and public works for public service
iv. Effect and Significance of Classification of Property as Property of Public
Dominion
1. Property is outside the commerce of man
2. Property cannot be the subject of acquisitive presecription
3. Property cannot be attached or levied upon in execution
4. Property cannot be burdened with a voluntary easement
c. Private Property
i. Patrimonial Property of the State [Art.421] –
1. Property of the State which is not of the character stated in Art. 420
2. Property over which the State has the same right a private individual has
over his own private property
3. Enables the State to attain its economic ends and to fulfil its primary
mission
4. Serves as a means for the State’s subsistence and preservation
5. Cannot be acquired by adverse possession except as allowed by law
ii. Patrimonial Property of Municipal Corporations [Art.424, par.2] – all other
property not stated in Art.424, par.1
iii. Private Property of Private Persons [Art.425] – consists of all property belonging to
private persons, either individually or collectively
C. Other Classification
a. By their Physical Existence
i. Corporeal – all property the existence of which can be determined by the senses
ii. Incorporeal – things having abstract (ideal) existence, created by man and
representing value
1. Rights over incorporeal things
2. Credits
3. Real rights other than ownership over corporeal things
b. By their Autonomy of Dependence
i. Principal -
ii. Accessory – destined to complete, enhance or ornament another property
c. By their Subsistence after Use
 i. Consumable [Art.418] – those movables which cannot be used in a manner
appropriate to their nature without their being consumed
ii. Non-Consumable [Art.418]
1. Differentiated from Fungible or Non-fungible
 Fungible – goods of which any unit is treated as the equivalent of
any other unit
 Non-Fungible – irreplaceable by equal quantity and quality
iii. Deteriorable (deteriorates through use or by time) or Non-deteriorable (do not
deteriorate)
d. By Reason of their Susceptibility to Division
i. Divisible
ii. Indivisible
e. By Reason of Designation
i. Generic
ii. Specific
f. Existence in Point in Time
i. Present
ii. Future
g. Contents and Constitution
i. Singular
1. Simple
2. Compound
ii. Universal
h. Susceptibility to Appropriation
i. Non-appropriable
ii. Appropriable
1. Already appropriated
2. Not yet appropriated
i. Susceptibility to Commerce
i. Within the commerce of man
ii. Outside the commerce of man
III. Ownership
A. Definition
Ownership – it is the independent right of exclusive enjoyment and control of a thing for the
purpose of deriving therefrom all the advantages required by the reasonable needs of the owner
(or the holder of the right) and the promotion of the general welfare, but subject to the
restrictions imposed by law and rights of others [J.B.L. Reyes]
Ownership is a relation in private law by virtue of which a thing (or property right) pertaining to
one person is completely subjected to his will in everything not prohibited by public law or the
concurrence with the rights of another [Scialoja]
B. Characteristics of Ownership
 a. Elastic – any power can be detached therefrom and its contents reduced accordingly, but
upon cessation of the limiting rights, it recovers the powers lost, immediately and
automatically, without necessity of any juridical act or conveyance.
b. Generality – it is a right to make use of all possibilities or utility of a thing, except those
attached to other real rights existing
c. Exclusiveness – there can only be one ownership over a thing at a time; there may be two
or more owners but only one ownership
d. Independence – it exists without necessity of any other right
e. Perpetuity – cannot be extinguished by non-user ; ownership lasts as long as the thing
exists
C. Bundle of Rights included in Ownership [Art.429]
a. Jus Utendi – the right to use
b. Jus Fruendi – the right to the fruits and accessions
c. Jus Abutendi – the right to abuse the thing in the sense that consumes the thing itself
d. Jus Disponendi- the power to dispose
i. Alienation
ii. Encumbrance
iii. Transformation
iv. Destruction
e. Jus Vindicandi – the power to vindicate
i. Pursuit
ii. Right to recover the property
f. Jus Possidendi - the right to possess
D. Other Specific Rights Found in Civil Code [Art.429,430,437,438,440]
a. Right to Exclude;
i. Doctrine of Self-help – the right of the owner to repel or prevent an actual or
threatened physical invasion or usurpation of property
1. Elements [Art.429]
2. Limitation: the owner may use only such force as may be reasonably
necessary
b. Right to Enclose or Fence [Art.430]
i. Limitation: should be without detriment to servitudes constituted thereon
c. Right to Receive Just Compensation in Case of Expropriation [Art.435]
i. Requisites of Eminent Domain
1. Power must be exercised by competent authority
2. Expropriation should be for public use
3. Should be made upon payment of just compensation
a. Market value – value that the property will bring when it is offered
for sale by one who desires but is not obliged to sell it, and is
bought by one, who is under no necessity of having it, plus the
consequential damages
d. Right to Hidden Treasure [Art.438-439]
 i. Presumption: Hidden treasure belongs to the owner of the land, building or other
property on which it is found [Art.438]
ii. REQUISITES OF A HIDDEN TREASURE:
1. Hidden and unknown deposit
2. Of valuable objects
3. The lawful owner is unknown
iii. REQUISITES FOR A FINDER TO BE ENTITLED TO ½:
1. Finding is by chance
2. Finder is a stranger; cannot be the co-owner of the property
3. Finder is not a trespasser
4. Finder is not an agent of the landowner
5. Finder is not married under ACP or CPG: if married, the share belongs to
the ACP or the CPG
e. Right to Accession [Art.440]
f. Right to Recover Possession and/or Ownership – Jus Vindicandi [Art.429]
i. Available Actions to Recover Possession/Ownership
1. For Immovable Property
a. Accion Reinvindicatoria – restitution of the thing with its accession
b. Accion Publiciana -
c. Action for Forcible Entry -
d. Action for Unlawful Detainer -
2. For Movable Property
a. Replevin
ii. Requisites for Recovery
1. Identify the property
2. Prove his right of ownership – rely on the strength of his evidence not on
weakness of defendant [Art.434]
IV. Right of Accession
A. Accession is the extension of ownership. It is everything which is produced thereby or which is
incorporated or attached thereto, either naturally or artificially [Art.440]
B. General Principles of Accession
a. Applicable to both accession continua and accession discrete
i. Accessory follows the principal
ii. No one shall be unjustly enriched at the expenses of another
b. Applicable to accession continua
i. Whatever is built, planted or sown on the land of another and the improvements
or repairs made thereon, belong to the owner of the land, subject to the provisions
of the following articles
ii. All works, sowing and planting are presumed made by the owner and at his
expense, unless contrary is proved
iii. Accessory incorporated to principal such that it cannot be separated without
injury to work constructed or destruction to plantings, construction or works
[Art.453]
 iv. Bad faith involves liability for damages and other dire consequences
v. Bad faith of one party neutralizes bad faith of the other [Art.453]
c. Applicable to accession discreta
i. Ownership of the fruits – t0 the owner of principal thing belongs the natural,
industrial and civil fruits [Art.441]
ii. Exceptions
1. Possession in good faith
2. Usufruct
3. Lease
4. Antichresis
iii. Obligations of Receiver of Fruits to Pay Expenses to Third Person in Production,
Gathering and Preservation [Art.443]
1. This applies only to fruits harvested and gathered; applicable irrespective
of whether the planter or sower is in good faith or in bad faith
2. Basis: no person may unjustly enrich himself at the expense of another
3. REQUISITES:
a. Expenses are those dedicated to the needs of annual production
and not for mere enhancement or improvement of the estate, not
for mere luxury
b. Expenses must not be superfluous but commensurate with the
normal needs of productrion
C. Kinds of Accession
a. Accession Discreta (Fruits – all periodical additions to a principal thing produced by forces
inherentto the thing itself) [Art.440]
i. Natural – spontaneous products of the soil and the young and other products of
animals
ii. Industrial – produced by lands of any kind through cultivation or labor
iii. Civil – periodical increase of incorporeal property due to operation of law
b. Accession Continua
i. Over Immovables
1. Artificial or Industrial – BPS
a. Owner is BPS using Material of Another [Art.447]
i. In good faith
ii. In bad faith
b. BPS on Another’s Land Using his Own Materials [Art.448-545]
i. BPS in good faith [Art.448]
ii. BPS in bad faith [Art.449,450,451]
iii. Options Open to Owner of Land
1. To acquire building, planting and sowing – BPS has
right of retention (retains possession without paying
rental; not entitled to fruits; his rights are the same
as an antichretic creditor)
 2. To sell land to BP and to lease land to S – BP may
refuse if value of land considerably more than bp
unless owner chooses to acquire bps; then forced
lease by LO and BP; BPS in bad faith
[Art.449,450,451]
iv. Rights of BPS in Bad Faith
1. Land owner in bad faith but BPS in good faith

SUMMARY OF BPS RULES

Where the Landowner is the Improver

Landowner and Builder, Planter, Sower Owner of the Materials
Good Faith Good Faith
Acquire the building, planting or sowing after Remove the materials if there would be no
paying indemnity for value of materials injury to work constructed, or without
[Art.447] plantings or constructions being destroyed
[Art.447]
Receive indemnity for the value of materials
Bad Faith Good Faith
Acquire after paying value and paying Remove the materials in any event
indemnity for damages [Art.447] but subject to Be indemnified for damages
material owner’s right to remove the materials
Good Faith Bad Faith
Acquire without paying indemnity [by analogy Lose the materials without right to indemnity
with Art.449] [by analogy with Art.449]
Bad Faith Bad Faith
They will be treated as though both acted in good faith [Art.453]

Where the Landowner is Not the Improver

Landowner Builder, Planter or Sower is the Owner of
Materials
Good Faith Good Faith
Landowner has the option to:
a. Sell land to planter or builder or collect rent
from sower;
EXCEPT:
If the value of the land is considerably more
than that of building or trees  the builder or
planter shall pay reasonable rent under the
terms fixed by the parties
OR
b. Acquire improvement upon paying If the landowner chose to acquire the
indemnity improvement  the builder has the option to
 Value of indemnity: RETAIN the improvements until indemnity has
The original cost of improvement or the been paid and cannot be required to pay rent
increase in value of whole

Good Faith Bad Faith

Landowner has the option to: The BPS shall:
a. Acquire improvements without paying a. Lose them without right to indemnity
indemnity and collect damages b. Recover necessary expenses for the
b. Sell the land to BP and rent land to S and preservation of the land
collect damages from BPS c. Pay damages to the landowner
c. Order the demolition of the work, or the [Art.449,450,451]
restoration to former condition and collect
damages
Landowner has the obligation to:
a. Pay the necessary expenses for preservation
[Art.449,450,451]
Bad Faith Good Faith
a. Landowner must indemnify builder for the a. Remove them in any event
improvements and pay damages b. Be indemnified for damages
b. Cannot compel the builder to buy the land
without builder’s consent (otherwise,
builder could collect price as damage)
[Art.454,447]
Bad Faith Bad Faith
If both parties are in bad faith  they will be treated as when both acted in good faith

Where the Landowner , the Improver and the Material Owner are Three Different Persons
Landowner Builder, Planter or Sower(BPS) Owner of Materials
Good Faith Good Faith Good Faith
a. Acquire improvements and a. Right of retention for a. Collect value of materials
pay indemnity to BPS; necessary and useful primarily from BPS;
Subsidiarily liable to the expenses subsidiarily from
owner of materials b. Pay value of materials to landowner if BPS is
b. Sell land to B or P (except owner of materials insolvent
if value of land is b. Remove only if it can be
considerably more) and done without injury
rent land to S [Art.455,447]
Good Faith Good Faith Bad Faith
a. Acquire improvements and a. Right of retention for a. Lose the materials
pay indemnity to BPS; necessary and useful without right to
b. Sell land to B or P (except expenses indemnity [Art.449]
if value of land is b. Keep building, planting or b. Pay damages
 considerably more) or rent
land to S
c. Without subsidiary
liability for the cost of
materials
Good Faith
The landowner has the option:
a. Acquire the improvement
without paying indemnity
and collect damages
b. Order demolition or
restoration and collect
damages
c. Sell to B or P, or rent to S,
and collect damages
Obligation to:
Pay necessary expenses to BPS
Bad Faith
If all acted in bad faith  They shall be treated as though all of them acted in good faith
Bad Faith
a. Acquire improvements
after paying indemnity and
damages to BPS unless BPS
decides to remove
b. Subsidiariy liable to the
owner of the materials
Bad Faith
a. Acquire improvements
after indemnity;
subsidiarily liable to the
owner of the materials
b. Sell to B or P (except if
value of land is
considerably more) or rent
to S
Good Faith
The landowner has the option:
a. Acquire without paying
indemnity and collect
damages
b. Sell land to BP or rent to S
and collect damages
sowing without indemnity
to owner of materials and
collect damages from him
Bad Faith
a. Recover necessary
expenses for preservation
of the land
b. Loses improvements
without right to indemnity
from landowner
Bad Faith
Good Faith
a. May remove
improvements
b. Be indemnified for
damages in any event
Bad Faith
a. Right of retention for
necessary expenses
b. Pay value of materials to
owner of materials and
pay him damages
Bad Faith
a. Recover necessary
expenses
b. Loses improvements
without right of indemnity
from landowner, unless
landowner sells the land
Bad Faith
a. Recover value of materials
from BPS
b. If BPS acquires
improvements, remove
materials if feasible
without injury
c. No action against the
landowner but may be
liable to landowner for
damages
Bad Faith
Good Faith
a. Remove materials if
possible without injury
b. Collect value of materials
primarily from BPS and
subsidiarily from the
landowner
Good Faith
a. Collect value of materials
primarily from BPS and
subsidiarily from the
owner of the land
b. Collect damages
c. If BPS acquires
improvements, remove
materials in any event
Good Faith
a. Collect value of the
materials and damages
from BPS
b. Remove materials in any
event if BPS acquires
improvement
c. Demolish or restore and
collect damages
Obligation to:
a. Pay necessary expenses to
BPS
b. Subsidiarily liable to owner
of materials
Bad Faith Good Faith Bad Faith
a. Acquire improvements and a. Indemnity for damages a. No indemnity
pay indemnity and b. Remove improvements in b. Loses the materials
damages to BPS unless BPS any event
decides to remove
BASIC PRINCIPLES WHEN LO, BPS AND MO ARE 3 DIFFERENT PERSONS:

1. Rights between the LO and the BPS must be decide first before the rights of the MO can be determined

2. The owner of the materials in bad faith loses his materials, unless the other parties are also in bad faith

3. Bad faith of one neutralizes that of the other

4. The party in bad faith pays damages to the party in good faith

5. The owner of the materials in good faith collects from the builder and subsidiarily from the landowner

2. Natural
a. Accretion/Alluvium [Art.457] – the gradual deposit of sediment by
natural action of a current of fresh water, the original identity of
the deposit being lost
i. REQUISITES:
1.
b. Avulsion [Art.459] – the deposit is a known portion of land;
considered as a delayed accession;
c. Change of Course of River [Art.461-463]
i. REQUISITES OF CHANGE OF BED
1. It must be sudden so the old river bed can be
identified
2. The change must be permanent
3. There must be an abandonment by the owner of the
bed
4. The change of bed must be natural
d. Formation of Islands [Art.464-465] PD 1067 Water Code
i. RULES:
1. If the islands are formed by the sea [Art.464]
a. Within territorial waters  it shall belong to
the STATE
b. Outside territorial waters  belongs to the
FIRST OCCUPANT
 2. Islands formed in lakes or navigable or floatable
rivers  it shall belong to the STATE [Art.464]
3. If formed in non navigable or non-floatable rivers 
shall belong to the nearest riparian owner [Art.465]
4. If the island formed is equidistant from two riparian
owners  belongs to the riparian owners in halves
(measured longitudinally from the island’s margin)
[Art.465]
e. Reverse Accession – 120 FC, 321 CC
i. The ownership of improvements made on the property of
the spouses at the expense of the partnership  shall
pertain to the conjugal partnership or to the original owner-
spouse
ii. RULES:
1. If the cost of the improvement made by the conjugal
partnership or any increase in the value are more
than the value of the property  entire property
shall belong to the conjugal partnership
a. Subject to reimbursement of the value of the
owner-spouse
2. If the cost is less than the value of the property 
shall be retained by the owner-spouse
a. Subject to reimbursement of the cost of
improvement
3. The ownership of the entire property shall be vested
upon the reimbursement  at the time of
liquidation of the conjugal partnership
ii. Over Movables – accession only exists if separation is not possible
1. Conjunction and Adjunction – the union of materials of different owners
making up a new thing wherein each component retains its nature
a. RULES IN ADJUNCTION:
i. The accessory follows the principal
1. Tests in identifying the principal:
a. Intent - that to which another is united as
ornament, or for its use or perfection is
deemed the principal
b. Value – the thing of greater value is
considered the principal
c. Volume – if the values are equal, that of
greater volume is the principal
ii. If adjunction is done in good faith by either owner 
Accessory follows the principal
 1. EXCEPT: if the accessory is much more precious
than the principal: owner of the accessory may
demand separation even if the principal suffers
injury (not destruction) [Art.469]
iii. If the owner of the principal acted in bad faith  the owner
of the accessory has two options
1. Recover the value plus damages OR
2. Demand separation (even to the extent of destroying
the principal) plus damages
iv. If the owner of the accessory acted in bad faith  he shall
lose the accessory and will be liable for damages
b. Inclusion or Engraftment -
c. Soldadura or soldering
i. Plumbatura – different metals
ii. Ferruminatio – same metal
d. Tejido or weaving
e. Escritura or writing
f. Pintura or painting
2. Mixture – union of materials where the components lose their identity
a. Commixtion – in case of solids
b. Confusion – in case of liquids
c. RULES ON MIXTURE:
i. If the mixture was caused by the will of both owners or by
accident  each owner acquires an interest in proportion to
the value of his material (will result in co-ownership)
ii. If the mixed by the will of only one owner  the owners will
have a right proportional to the part belonging to him
iii. If one owner acted in bad faith  he loses all the rights to
his own material and his answerable for damages
3. Specification – the transformation of another’s material by the application
of labor (the principal); the material becomes a thing of different kind
a. RULES ON SPECIFICATION:
i. If the owner of the principal is in good faith  the maker
acquires the new thing AND must indemnify the owner of
the material
1. EXCEPTION: if the material is more precious than
the resulting thing  the owner of the material has
the option to acquire the work, indemnifying for the
labor OR demand indemnity for the material
ii. If the owner of the principal acted in bad faith  the
material owner has the option to acquire the result without
indemnity for the labor OR demand indemnity for the
material plus damages
 iii. If the material owner acted in bad faith  the material
owner loses the material AND he must pay for damages
V. Limitations of Real Right of Ownership
A. General Limitation
a. Police Power
b. Taxation
c. Eminent Domain
B. Specific Limitation
a. By Law
i. Limitation from Scattered Provisions of Civil Code
ii. Sic Utere Tuo Ut Alienum Non Laedas [Art.431]
iii. Act in State of Necessity [Art.432]
b. By the party transmitting property, be it in a contract, or last will or donation
c. By owner himself (voluntary servitude, mortgage)
d. Inherent limitations from conflict of rights arising from contiguity of property
VI. Quieting of Title – an equitable action in rem to determine the condition of the ownership or the
rights to immovable property, and remove doubts thereon
A. Classes
a. Action to Remove a Cloud – it is remedial in nature and may be brought to remove a cloud
or quiet title to real property and any interest therein
i. Requisites
1. There is a present cloud on the title that may be prejudicial to the same
2. A cloud exists by reason of any instrument, record, claim, encumbrance,
proceeding or obligation that is apparently valid or effective but in truth
and in fact, such instrument is invalid, ineffective, voidable, unenforceable,
extinguished or terminated, or barred by extinctive prescription
b. Action to Prevent a Cloud – preventive in nature and is brought to prevent a future cloud
(doubt) from being cast upon title to real property or an interest therein
B. Rules in Quieting of Title
a. The plaintiff must have legal or equitable title to, or interest in, the real property which is
the subject matter of the action
b. The plaintiff need not be in possession of the property [Art.477]
c. Action to Quiet Title does not apply to the following:
i. Questions involving interpretations of documents
ii. Mere written or oral assertions of claims
iii. Boundary disputes
iv. Deeds by strangers to the title unless purporting to convey the property of the
plaintiff
v. Instruments invalid on their face
vi. Validity of the instrument involves a pure question of law
C. Prescription of Action –
a. If plaintiff is in possession  Action is imprescriptible
 b. If plaintiff is not in possession  the action prescribes within the period for filing accion
publiciana, accion reinvindicatoria
D. Who are entitled to bring action? [Rule 64, Sec.1, par.2 of ROC]
E. Notes:
a. There is a cloud on title to real property or any interest to real property [Art.476]
b. Plaintiff has legal or equitable title to or interest in the subject/real property
c. Instrument record claim, etc. must be valid and binding on its face but in truth and in fact
invalid, ineffective, voidable or unenforceable
d. Plaintiff must return benefits received from defendant
e. Actions to quiet title are proceedings quasi in rem
VII. Co-ownership – when the ownership of an undivided thing or right belongs to different persons
[Art.484]
A. Definition
The right of common dominion which two or more person have in a spiritual part (or ideal
portion) or a thing which is not physically divided [Sanchez Roman]
B. Characteristics
a. There is plurality of owners, but only one real right of ownership
b. The recognition of ideal shares, defined but not physically identified
c. Each co-owner has absolute control over his ideal share
d. Mutual respect among co-owners in regard to use enjoyment and preservation of thing as
a whole
C. Differences between co-ownership and joint tenancy

D. Differences between partnership and co-ownership

CO-OWNERSHIP
Created by other sources besides contract
No juridical personality
Involves no legal representation of other co-
owners
Has for its purpose, common enjoyment
May not stipulate indivision for more than 10
years (20 years if imposed by testator or donor)
Not dissolved by the death of a co-owner
PARTNERSHIP
Created by contract, except conjugal
partnership
Has juridical personality distinct from the
members
May be represented by any partner
Has for its purpose, profit
May be for more than 10 years
May be dissolved by any partner’s death

E. Source of Co-ownership
a. Law (party walls, hedges, and ditches; co-ownership in hidden treasure)
i. Cohabitation [Art.147,148]
ii. Purchase [Art.1452]
iii. Succession [Art. 1078(intestate), Property is given to two or more heirs (testate)]
 iv. Donation [Art.753,573 par.2]
v. Chance [Art.472]
vi. Hidden Treasure [Art.348]
vii. Easement of Party Wall [Art.658]
viii. Occupation
ix. Condominium Law
b. Contract
i. By agreement (duration of co-ownership) [Art.494]
ii. Universal Partnership [Art.1778-1780]
iii. Associations and societies with secret articles [Art.1775]
c. Succession
d. Chance (Commixtion, hidden treasure)
e. Occupation (harvesting and fishing)
F. Rights of Each Co-Owner as to Thing Owned in Common
a. To use the thing according to the purpose intended; may be altered by agreement, express
or implied; provided
i. It is without injury or prejudice to interest of co-ownership
ii. Without preventing the use of other co-owners [Art.486]
b. To share in the benefits in proportion to his interest, provided the charges are borne by
each in the same proportion[Art.485]
c. Each co-owner may bring an action in ejectment [Art.487]
d. To compel other co-owner to contribute to expenses for preservation of the thing or right
owned in common and to payment of taxes [Art.488]
i. Co-owner’s option not to contribute by waiving his undivided interest equal to
amount of contribution
1. Exception: if waiver is prejudicial to co-ownership
ii. Requisites before repairs for preservation may be made of expenses for
embellishment or improvement may be made [Art.489]
1. Repairs for Preservation  may be made by will of one of the parties but
must first notify his co-owners of the necessity of the repairs, if possible
2. Repairs for Embellishment or Improvement  shall be decided by the
MAJORITY of the co-owners
iii. Effects of Failure to Notify Co-owners: can still compel co-owners to contribute to
the expenses
e. To oppose any act of alteration;
i. Remedy of Other Co-owners regarding Acts of Alteration
1. The Court may grant relief if the refusal of a co-owner is prejudicial to the
common interest
ii. Acts of Alteration
1. Alterations – any change injurious to the thing owned in common or to the
rights of other co-owners or any change material to the use, destination or
state of thing which act is in violation of the express or tacit agreement of
the co-owners
 2. Distinguished from acts of administration [Art.492]
a. Acts of Administration
i. Do not involve alteration
ii. Renewable from time to time
iii. Do not bind the community for a long time in the future
iv. Do not give rise to a real right over the thing owned in
common
3. Effects of Acts of Alteration: Consent of ALL the co-owners is required; any
act of alteration by a majority only is VOID [Melencio v. Dy Tial Lay]
4. Remedies of Non-consenting Owner: Appeal to Court
a. Query: Is lease of real property owned in common an act of
alteration? [Art.647 in relation to Art.1878(8)] – only if the lease is
long term
5. Instances when the minority may appeal to Court for relief:
a. When an alteration is decided upon
b. When it is prejudicial to the rights of an individual co-owner
c. When serious risk is incurred
d. When there is refusal to correct maladministration
e. When fraud is committed upon the minority
f. To protest against acts of majority which are prejudicial to minority [Art.492 par.3]
g. To exercise legal redemption [Art.1620,1623]
i. Notice should be given by the vendor
ii. Redemption may be exercised within 30 days from written notice of the sale of an
undivided share of another to a stranger
h. To ask for partition [Art.494]
i. Other cases where right of legal redemption is given [Art.1621,1622]
G. Implications of Co-owners Right over His Ideal Share
a. Co-owner has the right:
i. To share in fruits and benefits
ii. To alienate, mortgage or encumber and dispose of his ideal share – but other co-
owners may exercise right of legal redemption
iii. To substitute another person in the enjoyment of thing
iv. To renounce part of his interest to reimburse necessary expenses incurred by
another co-owner [Art.488]
b. Effect of Transaction by Each Co-owner
i. Limited to his share in the partition
ii. Transferee does not acquire any specific portion of whole property until partition
iii. Creditors of co-owners may intervene in partition or attack the same if prejudicial
[Art.499]
1. Exception: creditors cannot ask for rescission in the absence of fraud or if
formal objection was not made by them [Art.497]
H. Rules on Co-Ownership not applicable to conjugal partnership of gains or absolute community of
property
I. Special rules on ownership of different stories of a house as differentiated from provisions of
condominium act (Act No.4726)
a. Concept of Condominium
b. Essential Requisites for Condominium
c. Important Documents to Consider in Purchase of Condominium Units
i. Master or Enabling Deed
ii. Declaration of Restrictions
iii. Articles and By-Laws of Condominium Corporation, if applicable
iv. Contract of Sale
d. Rights and Obligations of Condominium Owner
J. Extinguishment of Co-ownership
a. Total Destruction of thing
b. Merger of all interests in one person
c. Acquisitive prescription
i. By a third person
ii. By one co-owner as against the other co-owners
1. Requisites and Unequivocal Acts of:
a. Repudiation of co-ownership (Acts amounting to ouster of other
co-owners) known to other co-owners and shown by clear and
convincing evidence
b. Open and adverse possession not mere silent possession for the
required period of extraordinary acquisitive prescription
c. The presumption is that possession by co-owner is not adverse
d. Partition or Division
i. General Rule: Right to ask partition any time
1. Exception:
a. When there is a stipulation against it not over 10 years
b. When condition of indivision is imposed by transferor (donor or
testator) not exceeding 20 years [Art.494]
c. When the legal nature of community prevents partition (party wall)
d. When partition is generally prohibited by law (ACP)
e. When partition would render the thing unserviceable (but the
thing may be sold and co-owners divide the proceeds) [Art.494]
ii. Effect of Partition [Art.1091, 543, 1092,1093, 499-501]
1. Partition confers exclusive title to each over his respective share
2. Each owner is deemed to have exclusively possessed the part which may be
allotted to him upon the division for the entire period of co-possession
3. There arises a reciprocal warranty against eviction and loss of quality, in
proportion to the shares [Art.501]
4. Accounting of benefits and damages [Art.500]
5. Partition does not affect the rights of strangers [Art.499]
iii. Right of Creditors of Individual Co-owners: they may object if prejudiced [Art.497]
iv. Procedure for Partition [ROC, Rule 69]
VIII. Possession
A. Definition and Concept [Art.523]
Possession is the holding of a thing or the enjoyment of a right, whether by material occupation
or by the fact that the thing or the right is subjected to the action of our will
It is a real right independent of and apart from ownership (jus possessionis (right of possession)
as distinguished from jus possidendi (right to possess)
B. Differences between a Possession and Occupation
C. Essential Requisites of Possession:
a. Holding or control of a thing or right (corpus) consists of either:
i. The material or physical holding or occupation
ii. Exercise of a right
iii. Constructive possession (intention to possess is very crucial)
b. Intention to possess (animus possidendi)
D. Degrees of Holding or Possession
a. Mere holding or possession without the title whatsoever and in violation of the right of
the owner (e.g. possession of a thief or a usurper of land)
b. Possession with juridical title but not that of ownership (e.g. possession of tenant,
depository agent, bailee trustee, lessee, antichretic creditor). – this degree of possession
will never ripen into full ownership as long as there is no repudiation of concept under
which property is held.
c. Possession with just title or title sufficient to transfer ownership, but not from the true
owner (e.g. possession of vendee from vendor who pretends to be the owner). – this
degree of possession ripens into full ownership by lapse of time
d. Possession with just title from true owner. The delivery of possession transfers ownership,
and strictly speaking, is the jus possidendi
E. Cases of Possession
a. Possession for oneself, or possession exercised in one’s own name and possession in the
name of another [Art.524]
b. Possession in the concept of an owner and possession in the concept of a holder with the
ownership belonging to another [Art.525]
c. Possession in good faith and possession in bad faith [Art.526]
F. What things or rights may be possessed
a. Only things or rights susceptible of appropriation may be the object of possession
[Art.530]
G. What may not be possessed by private persons
a. Res communes – beyond human control
b. Property of public dominion
c. Right under discontinuous and/or non-apparent easement
H. Acquisition of Possession
a. Ways of Acquiring Possession
i. Material occupation of the thing
ii. Subjection to the action of our will
 1. Doctrine of constructive possession – the possession of a portion of a tract
of land, under claim of ownership of the whole is constructive possession
of the whole tract provided that the remainder is not adversely possessed
by another.
2. Includes constructive delivery
a. Traditio brevi manu (thing already in transferee’s hands, ie. Sale of
leased property)
b. Traditio constitutum possessorium (thing remains in transferor’s
hands, ie. Sale of property with condition to remain as lessees for
said property)
3. Proper acts and legal formalities – refers to the acquisition of possession by
sufficient title, intervivos or mortis causa, lucrative or onerous (includes
traditio longa manu [sale of goods in transit] and traditio symbolica [giving
of key to car], donations, succession, contracts, judicial writs of possession,
writ of execution of judgments, execution and registration of public
instruments.)
b. By Whom May Possession be Acquired
i. By same person; elements of personal acquisition
ii. By his legal representative; requisites
iii. By his agent
iv. By any person without power whatsoever but subject to ratification, without
prejudice to proper case of negotiorum gestio
v. Qualifiedly, minors and incapacitated persons – they need the assistance of their
legal representatives in order to exercise the rights which from the possession arise
in their favor [Art.535]
c. What do not affect possession
i. Acts merely tolerated [Art. 537]
ii. Acts executed clandestinely and without the knowledge of the possessor [Art. 537]
iii. Acts by violence (through force or intimidation) as long as possessor objects
thereto [Art.536]
d. Rules to resolve conflict of possession [Art.538]
i. General Rule: Possession cannot be recognized on two different personalities,
except in cases of co-possession by co-possessors without conflicting claims or
interest
ii. In case of conflicting possession, preference is given to:
1. Present possessor or actual possessor
2. If there are two or more possessors, the one longer in possession
3. If dates of possession are the same, the one who presents a title
4. If all conditions are equal, the thing shall be placed in judicial deposit
pending determination of possession or ownership through proper
proceedings
I. Effects of Possession
 a. In general, possession has a right to be respected in his possession; if disturbed therein,
possessor has right to be protected in or restored to said possession [Art.539]
i. Actions to Recover Possession
1. Summary Proceedings – Accion Interdictal or Forcible Entry and Unlawful
Detainer. Plaintiff may ask for writ of preliminary mandatory injunction.
(within 10 days from filing of complain in forcible entry [Art.539]. The same
writ is available in unlawful detainer actions upon appeal [Art.1674]
2. Accion Publiciana (based on superior right of possession, not ownership)
3. Accion Reinvindicatoria (recovery of ownership), including right to possess
4. Action for Replevin (possession or ownership for movable property)
ii. Lawful possessor can employ self help [Art.429]

He may use such force as may be reasonably necessary to repel or prevent an actual
or threatened unlawful physical invasion or usurpation of his property.

b. Entitlement to fruits – possessor in good faith/bad faith [Art.544,549]

Possessor in good faith – is entitled to fruits received before possession is legally interrupted.
[Art. 544]

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 necessary expenses, and expenses
made in production, gathering, and preservation. [Art. 549]

c. Reimbursement for expenses – possessor in good faith/bad faith

i. Liability for loss or deterioration of property by possessor in bad faith [Art.553,552]

Possessor in good faith – shall not be liable for deterioration or loss of thing
possessed, except when it is proved that he acted with fraudulent intent or
negligence after judicial summons. [Art. 552]

Possessor in bad faith – shall be liable for deterioration or loss in every case, even if
caused by fortuitous event.

d. Possession of movable acquired in good faith (in concept of owner) is equivalent to title
[Art.559]
i. Possessor has actual title which is defeasible only by true owner
ii. One who has lost a movable or has been unlawfully deprived thereof may recover
it without reimbursement, except if possessor acquired it at a public sale
J. Effect of possession in the concept of owner
a. Possession may by lapse of time ripen into full ownership, subject to certain exceptions
b. Presumption of just title and cannot be obliged to show or prove it [Art.541]; Exception:
for purposes of prescription, just title must be proved [Art. 1131]
c. Possessor may bring all actions necessary to protect his possession except Accion
Reinvindicatoria
d. May employ self-help [Art.429]
e. Possessor may ask for inscription of such real right of possession in the registry of
property
 f. Has the right to the fruits and reimbursement for expenses (assuming he is a possessor in
good faith)
g. Upon recovery of possession which he has been unlawfully deprived may demand fruit
and damages
h. Generally, he can do on the things possessed everything that the law authorizes owner to
do until he is ousted by one who has a better right
i. Possession in good faith and possession in bad faith [Art.528]
i. Mistake upon a doubtful or difficult question of law as a basis of good faith
[Art.526 par.3]
K. Presumptions in favor of the possessor
a. Of good faith until the contrary is proved [Art.527]
b. Of continuity of initial good faith in which possession was commenced or possession in
good faith does not lose this character except in the case and from the moment possessor
became aware or is not unaware of improper or wrongful possession [Art.528]
c. Of enjoyment of possession in the same character in which possession was acquired until
contrary is proved [Art.529]
d. Of non-interruption of possession in favour of present possessor who proves possession at
a previous time until the contrary is proved [Art.554,1120-1124]
e. Of continuous possession or non-interruption of possession of which he was wrongfully
deprived for all purposes favourable to him [Art.561]. present possession presumed to be
the possession at previous time and has continued to be so during intervening time,
unless proved contrary [Art.1138(2)]
f. Other presumptions with respect to specific properties of property rights
i. Of extension of possession of real property to all movables contained therein so
long as it is not show that they should be excluded; exception [Art.426]
ii. Non-interruption of possession of hereditary property [Art.533,1078]
iii. Of just title in favor of possessor in concept of owner [Art.541,1141]
L. Possession may be lost by:
a. Abandonment
b. Assignment, either by onerous or gratuitous title
c. Destruction or total loss of thing or it goes out of commerce
d. Possession by another; if possession has lasted longer than one year; real right of
possession not lost until after 10 years
i. Subject to Art.537
IX. Usufruct
A. Concept [Art.562]
Usufruct is a real right, temporary in character that authorizes the holder to enjoy all the
advantages derived from a normal exploitation of another’s property, according to its destination
or purpose, and imposes an obligation of restoring, at the time specified, either the thing itself or
its equivalent
B. Historical considerations
C. Characteristics of Usufruct
D. Usufruct distinguished from Lease; from Servitude
E. Classes of Usufruct
a. By origin
i. Voluntary
ii. Legal [Art.321, Art.226,FC]
iii. Mixed
b. By person enjoying usufruct
i. Simple
ii. Multiple
1. Simultaneous
2. Successive
a. Limitation on Successive Usufruct [Art.756,863,869]
c. By object of usufruct
i. Rights [Art.574]
ii. Things
1. Normal
2. Abnormal, irregular or quasi-usufruct
d. By the extent of the usufruct
i. As to the fruits
1. Total
2. Partial [Art.598]
ii. As to object
1. Singular
2. Universal [Art.595]
a. Subject to provisions of Arts 758 and 759
e. By the terms of usufruct [Art.564]
i. Pure
ii. Conditional
iii. With a term or period
F. Rights of Usufructuary
a. As to the thing and its fruit
i. Right to possess and enjoy the thing itself, its fruits and accessions
1. Fruit consists of natural, industrial and civil fruits
2. As to hidden treasure, usufructuary is considered a stranger [Art.566,436]
3. Fruits pending at the beginning of usufruct [Art.567]
4. Civil fruits [Art.569,588]
ii. Right to lease the thing [Art.572]
1. Limitations
2. Liability of usufructuary – lessor [Art.590]
3. Exceptions to right of leasing the thing
iii. Right to improve the thing [Art.579]
b. As to the legal right of usufruct itself
i. Right to mortgage; right of usufruct [Art.572]
 ii. Right to alienate the usufruct, except in purely personal usufructs, or when title
constituting it prohibits the same
G. Rights of the naked owner
a. At the beginning, during and at termination of usufruct (obligations of usufructuary at the
beginning of usufruct)
b. During the usufruct
i. Retains title to the thing or property
ii. He may alienate the property
1. Limitations [Art.581]
H. Obligations of the Usufructuary
a. At the beginning of usufruct or before exercising usufruct
i. To make inventory [Art.538]
1. Requisites of Inventory
a. Immovables described
b. Movables appraised
2. Exception to requirement of inventory
a. No one will be injured thereby [Art.585]
b. Title constituting usufruct excused the making of inventory
c. Title constituting usufruct already makes an inventory
ii. To give a bond for the faithful performance of duties as usufructuary
1. No bond are required in the following
a. No prejudice will result [Art.585]
b. Usufruct is reserved by donor [Art.584]
c. Title constituting usufruct excused usufructuary
d. If usufructuary takes possession under a caucion juratoria
2. Effect of filing a bond [Art.588]
3. Effect of failure to give bond [Art.586,599]
b. During the usufruct
i. To take care of the thing like a good father of a family [Art.589]
1. Effect of failure to comply with obligation [Art.610]
ii. To undertake ordinary repairs [Art.592]
1. Concept of ordinary repairs
iii. To notify owner of need to undertake extra-ordinary repairs [Art.593]
1. Concept of extraordinary repairs
2. Naked owner obliged to undertake them but when made by owner,
usufructuary pays legal interest on the amount whiles usufruct lasts
[Art.594 par.1]
3. Naked owner cannot be compelled to undertake extra-ordinary repairs
a. If indispensable and owner fails to undertake extraordinary repairs
may be made by usufructuary; repairs usufrustuary right [Art.594
par.2]
4. To pay for annual charges and taxes on the fruits
5. To notify owner of any act detrimental to ownership [Art.601]
 6. To shoulder the costs of litigation re usufruct [Art.602]
7. To answer for fault or negligence of alienee, lessee or agent of usufructuary
[Art.590]
I. At the time of termination of the usufruct
a. To deliver the thing in usufruct to the owner in the condition in which he has received it,
after undertaking ordinary repairs
i. Exception: Abnormal Usufruct
J. Special cases of usufruct
a. Usufruct over a pension or periodic income [Art.570]
b. Usufruct of property owned in common [Art.582]
c. Usufruct of head of cattle [Art.591]
K. Extinguishment of Usufruct [Art.603]
a. Death of Usufructuary
i. Exception: unless a contrary intention clearly appears
b. Expiration of period of fulfilment of resolutory condition imposed on usufruct by person
constituting the usufruct
i. Time that may elapse before a third person attains a certain age, even if the latter
dies before period expires- unless granted only in consideration of his existence
[Art.606]
c. Merger of rights of usufruct and naked ownership in one person
d. Renunciation of usufruct
i. Limitations
1. Must be express
2. If made in fraud of creditors, waiver may be rescinded by them through
action under Art. 1381
e. Extinction or loss of property
i. If insured, property is insured before the termination of the usufruct [Art.608]
1. When insurance premium paid by owner and usufructuary
a. If owner rebuilds, usufruct subsists on new building
b. If owner does not rebuild interest upon insurance proceeds paid to
usufructuary
2. When the insurance taken by owner only because usufructuary refuses
[Art.608 par.2]
a. Owner entitled to insurance money (no interest paid to the
usufructuary)
b. If he does not rebuild, usufruct continues over remaining land
and/or owner may pay interest on value of both [Art.607]
c. If owner rebuilds, usufruct does not continue on new building, but
owner must pay interest on value on land and old materials
3. When insurance taken by usufructuary only depends on value of
usufructuary’s insurable interest
a. Insurance proceeds to usufructuary
b. No obligation to rebuild
 c. Usufruct continues on the land
d. Owner does not share in insurance proceeds
ii. If destroyed property is not insured [Art.607]
1. If building forms part of an immovable under usufruct
a. If owner does not rebuild, usufruct continues over the land and
materials
b. If owner rebuilds, usufructuary must allow owner to occupy the
land and to make use of materials, but value of both land and
materials
f. Termination of right of person constituting the usufruct
g. Prescription
Cases covered: if third party acquires ownership of thing or property in usufruct or right of
ownership lost through prescription or right of usufruct not began within prescriptive
period, or if there is a tacit abandonment or non-user of thing held in usufruct for
required period
h. What do not cause extinguishment of usufruct
i. Expropriation of thing in usufruct [Art.609]
ii. Bad use of thing in usufruct [Art.810]
iii. Usufruct over a building [Art.607,608]
X. Easement or Servitudes
A. Definition
Easements or real servitudes is a real right which burdens a thing with a presentation consisting of
determinate servitudes for the exclusive enjoyment of a person who is not its owner or of a tenement
belonging to another, or, it is the real right over an immovable by nature, by virtue of which the
owner of the same has to abstain from doing or to allow somebody else to do something in his
property for the benfit of another thing or person
B. Essential feature of easements/real servitudes/praedal servitudes
a. It is a real right (gives an action in rem or real action against any possessor of servient
estate
b. It is a right enjoyed over another property (jus in re aliena); it cannot exist in one’s own
property (nulli res sua servit)
c. It is a right constituted over an immovable by nature, not movables
d. It limits the servient owner’s right of ownership for the benefit of the dominant estate;
Right of limited use, but no right to possess servient estate. Being an abnormal limitation
of ownership, it cannot be presumed
e. It creates a relation between tenements
f. It cannot consist in requiring the owner of the servient estate to do an act (servitus in
faciendo consistere nequit) unless the act is accessory to a praedial servitude (obligation
propter rem)
g. Generally, it may consist in the owner of the dominant estate demanding that the owner
of the dominant estate demanding that the owner of the servient estate refrain from doing
something (servitus non faciendo) or that the latter permit that something be done over
the servient property (servitus in patendo), but not in the right to demand that the owner
 of the servient right to demand that the owner of the servient estate do something
(servitus in faciendo) except if such act is an accessory obligation to a praedial servitude
(obligation propter rem)
h. It is inherent or inseparable from estate to which they actively or passively belong
[Art.617]
i. It is intransmissible; it cannot be alienated separately from the tenement affected or
benefited
j. It is indivisible
k. It has permanence; once it attaches, whether used or not, it continues and may be used at
anytime
C. Classification of Servitudes
a. As to recipient of benefits
i. Real or Praedial - in favor of the easement
ii. Personal [Art.614] - in favor of a community, or of one or more persons, and these
beneficiaries do not own a dominant estate
b. As to course or origin
i. Legal, whether for public use or for the interest of private persons [Art.634] - by
law
ii. Voluntary - will of the owners
c. As to its exercise [Art.615]
i. Continuous - is or may be incessant (continuing without interruption), without
the intervention of any act of man
ii. Discontinuous - used at intervals and depend upon the acts of man
d. As indication of its existence [Art.615]
i. Apparent - made known and kept in view by external signs that reveal the use and
enjoyment of the same
ii. Non-apparent - show no external indication of their existence
e. By the object or obligation imposed [Art.616]
i. Positive - allowing something to be done
ii. Negative (prescription start to run from service of notarial prohibition) - prohibits
servient from doing something which he could lawfully do if the easement did not
exist
D. General rule relating to servitudes
a. No one can have a servitude over his own property
b. A servitude cannot consist in doing
c. There cannot be a servitude over another servitude
d. A servitude must be exercised civiliter i.e. in a way least burdensome to the owner of the
land
e. A servitude must have a perpetual cause
E. Modes of Acquiring Easements
a. By the juridical act which gives rise to the servitude (law, donation, contract or wills)
i. If easement has been acquired but no proof of existence of easement available, and
easement is one that cannot be acquires by prescription –
 1. May be cured by deed of recognition by owner of servient estate
2. By final judgment
3. Existence of an apparent sign considered a title [Art.624]
b. By prescription
i. Continuous and apparent easements - a) title b) prescription of 10 years
1. In positive easements, counted from the day the dominant estate
commenced to exercise the easement
2. In negative easements, from the day the dominant forbade, in a notarized
document, the servient from executing an act otherwise legal were it not
for the easement
ii. Continuous and non-apparent - a) title
iii. Discontinous - b) title
F. Rights and Obligations of Owners of Dominant and Servient Estates
a. Right of Owner of Dominant Estate
i. To use the easement [Art.626] and exercise all rights necessary for the use of the
easement [Art.625]
ii. To do at his expense, all necessary works for the use and preservation of the
easement [Art.627]
iii. In a right of way, to ask for change in width of easement sufficient for needs of
dominant estate [Art.651]
b. Obligations of the Owner of Dominant Estate
i. To use the easement for benefit of immovable and in the manner originally
established [Art.626]
ii. To notify owner of servient estate before making repairs and to make repairs in a
manner least inconvenient to servient estate [Art.627]
iii. Not to alter easement or render it more burdensome [Art.627]
iv. To contribute to expenses of works necessary for use and preservation of servitude,
if there are several dominant estates, unless he renounces his interest [Art.628]
c. Rights of Owner of Servient Estate
i. To retain ownership and use of his property [Art.630]
ii. To change the place and manner of use the easement [Art.629 par.2]
d. Obligations of the Servient Estate
i. Not to impair the use of the easement [Art.628, par.1]
ii. To contribute proportionately to expenses if he uses the easement [Art.628 par.2]
G. Modes of Extinguishment of Easements
a. Merger – must be absolute, perfect and definite, not merely temporary
b. By non-user for 10 years
i. Computation of the period
1. Discontinuous easements - counted from the day they ceased to be used
2. Continuous easement - counted from the day an act adverse to the exercise
took place
ii. The use by a co-owner of the dominant estate bars prescription with respect to the
others [Art.633]
 iii. Servitudes not yet exercised cannot be extinguished by non-user
c. Extinguishment by impossibility of use
d. Expiration of the term or fulfilment of resolutory condition
e. Renunciation of the owner of the dominant estate – must be specific, clear, express
(distinguished by non-user)
f. Redemption agreed upon between the owners
g. Other causes not mentioned in Art.631
i. Annulment or rescission of the Title constituting the easement
ii. Termination of the right of grantor
iii. Abandonment of the servient estate
iv. Eminent domain
v. Special cause for extinction of legal rights of way; if right of way no longer
necessary
H. Legal Easements
a. Law Governing Legal Easements
i. For public easements
1. Special laws and regulations relating thereto
2. By the provisions of Chapter 2,Title VII, Book II, NCC
ii. For private legal easements
1. By agreement of the interested parties whenever the law does not prohibit
it and no injury is suffered by a third person
2. By the provisions of Chapter 2, Title VII, Book II, NCC
b. Private Legal Easements provided for by the NCC
i. Those established for the use of water or easements relating to waters [Art.637-
648]
1. Natural drainage of waters [Art.637]
a. Lower estates are obliged to receive the waters naturally and
without intervention of man descend from higher estates, as well as
stones or earth which they carry with them
2. Easements on lands along riverbanks [Art.638] See Water Code
a. Three meter zone - banks of rivers and streams, within zone of 3
meters along margins
b. Establishes an easement of public use
3. Abutment of a dam [Art.639]
a. For diversion or taking out of water
b. Payment of indemnity
4. Aqueduct [Art.642-646]
a. use of water which one can dispose
b. Has right to make it flow through intervening estates
c. Payment of indemnity
d. Must prove that he can dispose of water and that the proposed
easement is most convenient and least onerous
 a. EXCEPTION, aqueduct not applicable to: Buildings,
courtyard, annexed… already existing
5. Drawing waters and watering animals [Art.640]
a. Imposed for reasons of public use
b. Payment of indemnity
6. Stop lock or sluice gate [Art.649]
a. For the purpose of irrigating or improving the estate
ii. The easement of right of way [Art.649-657]
1. when immovable is surrounded by other immovables pertaining to other
persons and without adequate outlet to public highway
2. Requisites:
a. Surrounded by other immovables
b. No adequate outlet to public highway
c. Isolation is not due to proprietor’s own acts
d. Indemnity
a. Permanent: value of land plus damage
b. Temporary/Seasonal: damage
e. Least prejudicial to servient estate, shortest distance
3. Other Cases
a. In case of sale/exchange/partition
a. If acquired land surrounded by estates of vendor, exchanger
or co-owner Obliged to grant right of way without
indemnity
b. In case of simple donation
a. If donee needs right of way donor shall be indemnified by
done
b. If donor needs right of way May demand right of way
without indemnity
4. Other details
a. Width: sufficient for dominant estate’s needs
b. Repairs: if permanent, necessary repairs shall be made by the
dominant estate
c. Taxes: proportionate share of taxes shall be reimbursed by DE to SE
d. Extinguishment
a. When no longer necessary (not applicable to voluntary)
Joined it to another land abutting public road
New road gives access to isolated estate which must
substantially meet needs of DE
b. Must return indemnity
e. Other forms of right of way
a. For construction
1. To carry materials through estate of another
a. After payment of indemnity
 2. For passage of livestock, watering places
a. Governed by ordinances, and in absence
thereof, by custom
b. Maximum distances
i. Animal path - 75 meters
ii. Animal trail - 37.50 meters
iii. Watering place - 10 meters
iii. Easement of party wall [Art.658-666]
1. Presumption of party wall
a. Dividing walls of adjoining buildings
b. Dividing walls of garden or yards (urban or rural)
c. Fences walls and live hedges (rural)
d. Ditches or drains opened between two estates
2. Exception to presumption: when party wall not presumed
a. If there is exterior sign, or proof to the contrary
a. Window or opening on the dividing wall
b. Wall is on one side straight and other side straight on upper
part but slanted on lower
c. Wall is within boundaries of one estate
d. Wall bears burden of one of buildings, but not the other
e. Wall sheds water only open one of the estates
f. Stepping stones on one side only
g. Inclosed land adjoins one that is not inclosed
h. Ditch is opened on one estate only
1. In case of sign that favor both parties  considered
a party wall
2. In case of contradiction of signs from both parties
Court will decide which signs are more important
and preponderant
3. Rights and Obligations
a. Right to use: without interfering with common and respective use
of co-owners
b. Repairs and maintenance
a. GR: Borne by all owners in proportion to right of each
b. EXCEPTION: One may exempt himself by renouncing his
co-ownership
1. Except if wall supports building belonging to him
c. Increase height of wall
a. Owner who increases height is obliged to:
1. Pay for expense
2. Pay for damage, even temporary
3. Pay for maintenance of wall in parts newly raised or
deepened for its foundation
 4. Pay for increased expenses necessary for
preservation
5. Reconstruct the wall at his own expense, if party
wall cannot bear additional height
6. Give space from his own land to make party wall
thicker
d. Opening a window
a. Needs consent of other co-owners
iv. Easement of light and view [Art.667-673]
1. Openings other than party wall
a. May make openings
a. Required distances (from wall to adjoining land)
1. Direct: 2 meters
2. Side/oblique: 60 centimeters
3. Exception: buildings separated by public way or
alley, not less than 3 meters wide
b. If distance not observed, only small openings for light are
observed
1. Height at ceiling joints or immediately under the
ceiling
2. 30 cm square
3. Iron grating embedded in the wall and with a wire
screen
4. If not complied with, owner of adjoining property
may compel the closure of windows or compliance
with the limitations
5. Owner of adjoining property has the right:
a. To obstruct by constructing a building or
raising a wall contiguous
i. UNLESS easement of light has been
acquired
b. To close such openings if it becomes a party
wall
2. Altius non tollendi (not building higher)
a. GR: owner may build up to any height even if may block neighbor’s
light and view
b. EXC: easement of altius non tollendi
a. Obliges owner to refrain from building higher and blocking
light and view of DE
b. If SE wishes to build higher, must maintain distance of 3
meters from boundary line
3. Prescription
a. Counted from opening of window through party wall
 b. Counted from time of formal (notarial act) prohibition of DE upon
SE from blocking his window
v. Easement of drainage of buildings [Art.674-676]
1. Obliged to construct its roof in a manner that rain water shall fall on his
own land or street or public place, and not the land of his neighbour
a. Even if rainwater falls on his land, he is obliged to collect water in
such a wat as to not damage adjacent land or tenement
2. Whenever yard is surrounded by other houses, and it is not possible to give
outlet through the house for rainwater collected thereon, easement of
drainage can be demanded
a. Requisites:
a. DE surrounded by other houses, impossible to give outlet
through the house to the rainwater collected
b. Drainage should be where water’s egress is easiest
c. Least damage to servient estate
d. Indemnity
vi. The easement of distance for certain constructions and plantings [Art.677-681]
1. Near fortresses
a. Subject to special laws and ordinances
2. Dangerous or noxious constructions
a. Such as aqueduct, sewer, well, furnace, chimney, depository of
corrosive substances, or machinery which is by nature dangerous or
noxious
b. Must take the following precautions
a. Observe distances of local regulations and customs
b. Make necessary protective works
3. Trees
a. Distance authorized by local regulations and customs
a. In absence thereof
1. For tall trees - 2 meters
2. For shrubs and small trees - 50 cm
b. Every landowner shall have right to demand trees not observing the
distance be uprooted
a. Even if these have grown spontaneously
b. If branches extend to neighboring estate, may demand the
owner of tree to cut off the branch insofar as it reached his
property
c. If roots extend to neighboring estate, estate owner may cut
it off himself
c. Fruits naturally falling on estate of another belong to that estate
vii. Easement against nuisances [Art.682-683]
 1. Every building or land is subject to easement which prohibits proprietor
from committing nuisance through noise, odor, smoke, heat, dust, water,
glare and other causes
viii. Easement of lateral and subjacent support
1. No proprietor shall make excavations on his land to deprive neighboring
land of sufficient lateral or subjacent support
a. Not only for buildings standing at the time
a. But also for constructions that may be erected
b. Any proprietor intending to make excavation which may deprive
adjacent lands of lateral or subjacent support shall notify owners of
said lands
c. May provide artificial support if necessary
XI. Book III – Different Modes of Acquiring Ownership
A. Mode and Title Differentiated
Mode is a specific cause which produces dominion and other real rights as a result of the co-
existence of special status of things. Capacity and intention of persons and fulfilment of the
requisites of law
Title is every juridical right which gives a means to the acquisition of real rights but which in itself
is insufficient
B. Modes of Acquiring Ownership
a. Original Modes – which produce the acquisition of ownership independent of any pre-
existing right of another person, hence, free from any burdens or encumbrances
i. Occupation
1. Not applicable to ownership of a piece of land [Art.714]
2. Privilege to hunt and fish regulated by special law [Art.715]
3. Occupation of a swarm of bees or domesticated animals [Art.716, see also
Art.560]
4. Pigeons and fish [Art.717]
5. Hidden treasure [Art.718, See also Srt.438-439]
6. Lost movables; Procedure after finding lost movable [Art.729-720]
ii. Intellectual Creation [RA8293]
1. Copyright and related rights
2. Trademarks and service marks
3. Geographic indications
4. Industrial designs
5. Patents
6. Topographies of integrated circuits
7. Rights of performers, producers of sound recordings and broadcasting
organizations
8. Protection of undisclosed information
9. Laws repealed by the IP Code [Sec.239]
b. Derivative Modes – based on a right previously held by another person and therefore,
subject to the same characteristics, powers, burdens, as when held by the previous owner
 i. Law
1. Registration under Act 496
2. Estoppels of title under Art.1434, CC
3. Marriage under absolute community of property system
4. Hidden treasure
5. Accession [Art.445]
6. Change in the river course [Art.461]
7. Accession continua over movables [Art.466]
8. Art.681,1456, Art.120,,FC
ii. Donation
iii. Succession
iv. Prescription
v. Tradition
1. Requisites
a. Pre-existence of right in estate of grantor
b. Just cause of title for the transmission
c. Intention – of both grantor and grantee
d. Capacity – to transmit and to acquire
e. An act giving it outward form, physically, symbolically or legally
2. Kinds of tradition
a. Real Tradition
b. Constructive Tradition
i. Symbolical Delivery
ii. Delivery of Public Instrument
iii. Traditio Longa Manu
iv. Traditio Brevi Manu
v. Traditio Constitutum Possessorium
vi. Quasi-tradition
vii. Tradition by operation of law
XII. Donation
A. Nature of Donation – a bilateral contract creating unilateral obligations on donor’s part
B. Requisites of Donation
a. Consent and capacity of the parties
b. Animus donandi (causa)
c. Delivery of thing donated
d. Form as prescribed by law
C. Kinds of Donations
a. As to its taking effect
i. Inter vivos [Art.729,730,731]
ii. Mortis causa [Art.728]
iii. Propter nuptias [Art.82,87,FC]
b. As to cause or consideration
i. Simple
 ii. Remuneratory
iii. Onerous – imposes a burden inferior to the value of property donated
1. Improper – burden equal in value to property donated
2. Sub modo or Modal – imposes a prestation upon the donee as to how
property donated will be applied [Art.882]
3. Mixed Donations – negotium mixtum cum donation (e.g. sale for price
lower than value of property)
c. As to effectivity or estinguishment
i. Pure
ii. Conditional [Art.730,731]
1. Effect of an impossible condition
iii. With a term
d. Importance of classification
i. As to form
ii. As to governing rules
iii. As to impossible conditions [Art.727,1183]
e. Characteristics of a donation mortis causa
i. Convey no title or ownership before donor’s death
ii. Before donor’s death, transfer is revocable
iii. Transfer is void if donor survives donee
f. Distinction between donation mortis causa and donation inter vivos
i. What is important is the time of transfer of ownership, even if transfer of property
donated may be subject to a condition or a term
ii. Importance of classification – validity and revocation of donation
D. Who may not give or receive donations [Art.735,737,738,741,742]
E. Who may give or receive donations [Art.736,739,1027,1032,740,743,744]
F. Acceptance of Donation
a. Who may accept [Art.745,747]
b. Time of acceptance of donation inter vivos [Art.746] – donation mortis causa
G. Form of Donations
a. Personal Property [Art.748]
b. Real Property [Art.749]
c. Rules in Art.748 and 749 not applicable to
i. Onerous donations
ii. Modal donations
iii. Mortis causa donations
iv. Donations propter nuptias
H. What may be donated
a. All present property, or part thereof, of donor
i. Provided he reserves, in full ownership or usufruct, sufficient means for support of
himself and all relatives entitled to be supported by donor at time of acceptance
ii. Provided that no person may give or receive by way of donation, more than he may
give or receive by will [Art.752]. also, reserves property sufficient to pay donor’s
 debts contracted before donation, otherwise, donation is in fraud of creditors
[Art.759,1381]
iii. If donation exceed the disposable of free portion of his estate, donation is
inofficious
1. Exceptions:
a. Donations provided for in marriage settlements between future
spouses [Art.84,FC] – not more than 1/5 of present property
b. Donations propter nuptias by an ascendant consisting of jewelry,
furniture or clothing not to exceed 1/10 of disposable portion
[Art.1070]
I. What May not be Donated
a. Future Property – meaning, anything which donor cannot dispose of at the time of
donation [Art.751]
i. Exception: Marriage settlements of future souses only in event of death to extent
laid down in civil code re testamentary succession [Art.130,CC, Art.84,FC]
J. Effect of Donation
a. In general
i. Donee may demand actual delivery of thing donated
ii. Donee is subrogated to rights of donor in the property donated [Art.754]
iii. Donor not obliged to warrant things donated, except in onerous donations in
which case, donor is liable for eviction up to extent of burden [Art.754]
iv. Donor is liable for eviction or hidden defects in case of bad faith on his part
[Art.754]
v. In donations propter nuptias, donor must release property donated from
mortgages and other encumbrances, unless contrary has been stipulated
1. Donations propter nuptias of property subject to encumbrances are valid
2. Effect of Foreclosure [Art.85,FC]
vi. Donations to several donees jointly – no right of accretion
1. Exceptions:
a. When donor provides otherwise
b. Donation to husband and wife jointly with right of accretion, unless
donor provides otherwise [Art.753]
b. Special Provisions
i. Reservation by donor of power to dispose (in whole or in part) or to encumber
property donated [Art.755]
ii. Donation of naked ownership to one donee and usufruct to another person
[Art.756]
iii. Conventional reversion in favour of donor or other person [Art.757]
iv. Payment of donor’s debt – [Art.758]
1. If expressly stipulated
a. Donee to pay only debts contracted before the donation, unless
specified otherwise. But in no case shall donee be responsible for
 debts exceeding the value of property donated, unless clearly
intended
2. If there is no stipulation, donee is answerable only for donor’s debt only
incase of donation is in fraud of creditors
v. Illegal or impossible conditions [Art.272,1183]
K. Revocation and Reduction of Donations
a. Revocation Distinguished from Reduction of Donations
b. Causes of Reduction/Revocation
i. Inofficiousness of donation [Art.752,771,773,911,912]
1. Who may ask for reduction [Art.772]
2. Rule applied – if disposable portion not sufficient to cover two or more
donations [Art.773]
ii. Subsequent birth, reappearance of child or adoption of minor by donor [Art.760]
c. Causes of Applicable to Revocation only
i. Ingratitude [Art.765]
1. Causes
2. Time to file action for revocation [Art.769]
3. Who may file [Art.770]
4. Effect of Revocation
a. On alienations and mortgages [Art.766,767]
ii. Violation of Condition
1. Prescription of Action
2. Transmissibility of Action
3. Effect of Revocation of Reduction [Art.762,764 par.2,767]
4. Effect as to fruits [Art.768]
XIII. Lease

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