BOOK II capability of substitution, (8) consumability, and (9)
alienability3
PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS
Title I. — CLASSIFICATION OF PROPERTY
PRELIMINARY PROVISIONS
Property is that branch of civil law which classifies
and defines the different kinds of appropriable
objects, provides for their acquisition and loss, and
in general, treats of the nature and consequences
of real rights.
Property refers to “all things which are or may be
the object of appropriation” (Art. 414)
“Thing” is broader in scope for it includes both
appropriable and non-appropriable objects.
Classification of Things according on the nature of
their ownership:
(a) res nullius (belonging to no one)
(b) res communes (belonging to everyone)
(c) res alicujus (belonging to someone)
Res Nullius
These things belong to no one, and the reason is
that they have not yet been appropriated, like fi sh
still swimming in the ocean, or because they have
been abandoned (res derelictae) by the owner
with the intention of no longer owning them. Other
examples include wild animals (ferae naturae), wild
birds, and pebbles lying on the seashore.
Res Communes
While in particular no one owns common property,
still in another sense, res communes are really
owned by everybody in that their use and
enjoyment are given to all of mankind. Examples
would be the air we breathe, the wind, sunlight,
and starlight.
Res Alicujus
These are objects, tangible or intangible, which are
owned privately, either in a collective or individual
capacity. And precisely because they can be
owned, they really should be considered
“property.” Examples: your book, your shares of
stock, your parcel of land.
CLASSIFICATION of things in general:
(1) Corporeal or Tangible or
(2) Incorporeal or Intangible
Corporeal things may be further classified by reason
of (1) mobility, (2) ownership, (3) definiteness, (4)
existence, (5) divisibility, (6) importance, (7)
1
The most important classification is based on
mobility.
REASON: Because different provisions of the law
govern the acquisition, possession, disposition, loss
and registration of immovables and movables and
stricter formalities are required by law in
transactions involving immovables, e.g. in donations
(Art. 749), contribution of immovables to a
partnership (Art. 1771) and antichresis (Art. 2134).
Article 414. All things which are or may be the
object of appropriation are considered either:
(1) Immovable or real property; or
(2) Movable or personal property.
P – ossession
E – enjoyment
D – dispose
R – ecover
O – thers
Possession – is that right to hold and enjoy or
exercise the right over the property of another.
Usufruct – use and enjoyment of the property of
another.
A human body can never be a property.
XPN: Organ Donation
A person is dead when all the life’s processes have
stopped.
Q: How to justify that what you bought is your
property?
Ans: The thing I bought is my property because I
acquired all the rights of ownership – possession,
enjoyment, dispose, recover and others.
Chapter 1
IMMOVABLE PROPERTY
Art. 415. The following are immovable property:
(1) Land, buildings, roads and constructions of all
kinds adhered to the soil;
(2) Trees, plants, and growing fruits, while they are
attached to the land or form an integral part of an
immovable;
(3) Everything attached to an immovable in a fi xed
manner, in such a way that it cannot be separated
therefrom without breaking the material or
deterioration of the object;
(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 latter because of the added utility derived
the tenements; therefrom, such as those mentioned in
(5) Machinery, receptacles, instruments or paragraphs 4, 5, 6, 7 and 9 of Article 415;
implements intended by the owner of the tenement and
for an industry or works which may be carried on in 4. Immovable by analogy or by law — those
a building or on a piece of land, and which tend that are mentioned in paragraph 10 of
directly to meet the needs of the said industry or
Article 415.
works;
(6) Animal houses, pigeon-houses, beehives, fi sh
ponds or breeding places of similar nature, in case ART. 415 LIST OF CLASSIFICATION An
their owner has placed them or preserves them with IMMOVABLES immovable by:
the intention to have them permanently attached to Paragraph 1 Nature and
the land, and forming a permanent part of it; the incorporation
animals in these places are included; Paragraph 2 Incorporation
(7) Fertilizer actually used on a piece of land; Paragraph 3 Incorporation
(8) Mines, quarries and slug dumps, while the matter Paragraph 4 Destination
thereof forms part of the bed, and waters either Paragraph 5 Destination
running or stagnant;
Paragraph 6 Destination
(9) Docks and structures which, though floating, are
Paragraph 7 Incorporation
intended by their nature and object to remain at a
fixed place on a river, lake, or coast; Paragraph 8 Nature
(10) Contracts for public works, and servitudes and Paragraph 9 Destination
other real rights over immovable property. (334a) Paragraph 10 Analogy

Academic Classification of Immovables (NIDA)

1. Nature (trees and plants, land)
2. Incorporation (buildings)
3. Destination or purpose (machinery placed by
owner on tenement for direct use of industry or
works to be carried on therein)
4. Analogy (like the right of usufruct, public works,
servitudes)
Kinds of Immovable (Real) Property
1. Immovable by nature — those which by
their essence and nature are immovable or
cannot be moved from one place to
another, such as lands and roads in
paragraph 1 of Article 415 and mines,
quarries and slug dumps in paragraph 8 of
Article 415;
2. Immovable by incorporation — those which
are treated as immovable by reason of their
attachment or incorporation to an
immovable in such manner as to be an
integral part thereof, such as buildings and
constructions of all kinds adhered to the soil
mentioned in paragraph 1 of Article 415;
trees, plants and growing fruits mentioned in
paragraph 2 of Article 415 while they are still
attached to the land or form an integral
part of an immovable; and those that are
attached to an immovable in the manner
provided for in paragraph 3 of Article 415;
3. Immovable by destination — those which
are essentially movable, but by the purpose
for which they have been placed in an
immovable, partake of the nature of the
2
Paragraph 1: “Lands, buildings, roads and
constructions of all kinds adhered to the soil …”
- “adhered”
- By their nature, they are considered as immovable
or real property.
Q: What if you build a Nipa Hut but it is not
grounded on the soil and can be transferred?
A: It is movable property.
Q: What if you put your bed in Burnham park and
adhered to the soil?
A: It is not within the enumeration. It is not a house
or a building. It is a movable property.
Note: If a building is not adhered to the soil and
there is no intent of permanency, it is personal
property.
If you are a squatter in the Burnham Park, you can
be summarily ejected because it belongs to the
State. It is not a violation of Human Rights.
Paragraph 2: Trees, plants, and growing fruits, while
they are attached to the land or form an integral
part of an immovable
 “attached”
 If it is planted in a pot it is no longer a immovable
property because it should be attached to the
land or an immovable
Bar Q: A plant box was attached to an immovable
property in the sea. Is it an immovable property?
A: Yes, it is an immovable property according to
Pars. 2 and 9.
- Inasmuch as the law makes no distinction, growing
crops whether on one’s land or on another’s, as in
the case of a usufructuary, a possessor or a tenant,
should be considered real property. (3 Manresa 22).
The important thing is for them to be still attached
to the land. On the other hand, once they have
been severed, they become personal property,
even if left still scattered or lying about the land.
Paragraph 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;
- for the incorporated thing to be considered real
property, the injury or breakage or deterioration in
case of separation, must be SUBSTANTIAL
- things included in par. 3 were called res vinta
Examples:
1. If a person attaches a bayonet in the wall, it
is now considered as an immovable.
2. A fixed fire escape stairway firmly
embedded in the walls of a house, an
aqueduct, or a sewer, or a well.
3. A person disassembled his car and put it in
his home as a design. It is considered as an
immovable. (If the person applies for REM,
all the mementos including the car will be
foreclosed. For the reason that if it will be
removed from the house, it will be
destroyed.
Query: Suppose the properties referred to in
paragraph 3 are temporarily removed, but there is
an intention to replace them, should they be
considered real or personal property?
ANS.: It is believed that they should be regarded as
personal property inasmuch as the “incorporation”
has ceased. The Partidas contained an express
provision making said property real, but in view of
the elimination in the Code of said provision, we
may say that same should no longer apply, despite
a contrary opinion expressed by a member of the
Code Commission.
Mortgage – mortgagor offers a property by means
to secure the repayment of a loan of which that
property is duly accepted by the oblige.
Real Estate Chattel
Mortgage Mortgage
As to Real property Personal
object Property
3
As to form ???? Affidavit of
Good Faith
Q: Is it possible that a land is owned by another and
a house is owned by another? A: Yes.
Q: If A mortgaged his house to X under Chattel
Mortgage and later when X foreclosed the property
of A for non payment and interposed the defense
that their contract is not valid because it should
have been in a REM. Is X correct?
A: No. X is not correct because he is now in
estoppel.
Q: Supposing the land belongs to A and the house
was built after the land was already mortgaged to
X. A considered the house as chattel mortgage
and mortgaged to Y. A did not able to pay to X
(REM Mortgagee) and was foreclosed with the
house which is not there when the land was
mortgaged. Was the foreclosure correct?
A: In the case of Berkenkotter v. Cu Unjieng, all
those improvements which are introduced to a
property already mortgaged shall be included if
ever there is foreclosure.
Berkenkotter v. Cu Unjieng 61 Phil. 663
FACTS: The Mabalacat Sugar Company borrowed
from the defendant a sum of money, mortgaging
as security two lots together with all its buildings and
improvements. Later, to increase its productive
capacity, the Company purchased additional
machines and a new sugar mill which were needed
for the sugar industry. Issue: Are the additional
machines also considered mortgaged?
HELD: The mortgage of a parcel of land generally
includes all future improvements that may be found
on said parcel. These improvements include real
properties, like the additional machines and sugar
mill purchased. Said additional machinery are real
properties because they are essential and principal
elements of the sugar central. Without them, the
sugar central would be unable to carry out its
industrial purpose.
Paragraph 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;
Note:
1. movable property must be placed in an
immovable property
2. by the owner of the immovable
3. the intention must be to attach it permanently industry…; tend directly to meet…; essential… If
(destination) other person’s house, immovable Effect of
separation: If temporarily taken away, still
Q: Provision in lease that improvements made shall immovable.
belong to the lessor upon termination of the lease –
air-conditioner installed by lessee. Will AC be turned BAR QUESTION
over to the lessor? 1) When is machinery attached to land or a
A: Yes. Lessee acted as an agent of the lessor. tenement considered immovable?
[ANS.: Par. 5, Art. 415].
Paragraph 3 Paragraph 4
Cannot be separated Can be separated 2) Give the exception.
from immovable from immovable [ANS.: When placed on the land or tenement by a
without breaking without breaking tenant.] (Davao Sawmill v. Castillo, supra).
or deterioration or deterioration
Need not be placed Must be placed by the 3) Give the exception to the exception.
by the owner owner, or by his agent, [ANS.: when the tenant had promised to leave the
expressed or implied machinery on the tenement at the end of the
Real property by Real property by lease, or when he acted only as agent of the owner
incorporation incorporation and of the land.]. (Valdez v. Central, supra).
destination
Paragraph 6:Animal houses, pigeon-houses,
beehives, fish ponds or breeding places of similar
Paragraph 5: Machinery, receptacles, instruments nature, in case their owner has placed them or
or implements intended by the owner of the preserves them with the intention to have them
tenement for an industry or works which may be permanently attached to the land, and forming a
carried on in a building or on a piece of land, and permanent part of it; the animals in these places
which tend directly to meet the needs of the said are included;
industry or works; - It is submitted that even if the animals are
temporarily outside, they may still be considered as
Requisites: “real property,’’ as long as the intent to return is
1. Placed by the owner; present, as in the case of a homing pigeon. But
2. Intended for an industry or works carried on from the point of view of criminal law, they must be
in building or land; considered as personal property, and may properly
3. Machines must tend to directly meet the be the object of theft or robbery.
needs of the industry;
4. Machines must be essential and principal Q: If a person owns an animal house who built it
elements in the industry; not mere permanently and stray animal went there to make
incidentals. it as a home, is the person guilty of theft?
A: Yes, the person is guilty of theft. This principle
If the machine is still in the building, but is no longer Animus revertendi or intent to return or get back
used in the industry conducted therein, the says that it is your property already.
machine reverts to the condition of a chattel.
Paragraph 7: Fertilizer actually used on a piece of
If it is still needed for the industry, but separated land;
from the tenement temporarily, the property - Two Kinds: Organic and inorganic
continues to be immovable, inasmuch as
paragraph 5 refers, not to real property by Paragraph 8: Mines, quarries and slug dumps, while
incorporation, but to real property by destination or the matter thereof forms part of the bed, and waters
purpose. either running or stagnant;
**Things INCIDENTAL to the industry are movable - the matter thereof remains unsevered from the soil
property even if they are fixed permanently.** - Once separated they are no longer mines but
minerals and are considered as personal property
- High grading: a violation when people collect
Ex. Sewing machines placed in own house these slag dumps
intended to be used as a garments factory.
Immovable? Yes. Machines placed by owner; for
4
Paragraph 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;
- A floating house tied to a shore or bank post and
used as a residence is considered real property,
considering that the “waters” on which it floats, are
considered immovables.
- Although vessels are personal property, they
partake to a certain extent of the nature and
conditions of real property because of their value
and importance in the world of commerce. Hence,
the rule in the Civil Code with reference to
acquisition of rights over immovable property
(particularly the rules on double sale) can be
applied to vessels.
BAR
Is the steamship President Cleveland personal or
real property?
ANS.: It can be moved from place to place, hence,
it is personal property, although it PARTAKES THE
NATURE of real property in view of its importance in
the world of commerce.
Paragraph 10: Contracts for public works, and
servitudes and other real rights over immovable
property.
Servitude or Easement – is an encumbrance
imposed on an immovable for the benefit of
another immovable belonging to another owner, or
for the benefit of a person, group of persons, or a
community (like the easement of right of way).
- Any right to an immovable or any contract or
transaction is a real contract.
- The piece of paper on which the contract for
public works has been written is necessarily personal
property, but the contract itself, or rather, the right
to the contract, is real property.
- Other real rights over real property include real,
antichresis, possessory retention, usufruct and leases
of real property, when the leases have been
registered in the Registry of Property; or even if not
registered, if their duration is for more than a year.
**Usufruct of personal property or a lease of
personal property, should be considered personal
property.
**insert house discussion?**
- It should be noted that the properties or rights
referred to in paragraph 10 are considered real
property by analogy, inasmuch as, although they
5
are not material, they nevertheless partake of the
essential characteristics of immovable property.
Sale with mortgage
Chapter 2
MOVABLE PROPERTY
Art. 416. The following things are deemed to be
personal property:
(1) Those movables susceptible of appropriation
which are not included in the preceding article;
(2) Real property which by any special provision of
law is considered as personalty;
(3) Forces of nature which are brought under control
by science; and
(4) In general, all things which can be transported
from place to place without impairment of the real
property to which they are fixed.
Par. 1 — a fountain pen; a piano; animals.
Par. 2 — growing crops for the purposes of the
Chattel Mortgage Law; machinery placed on a
tenement by a tenant who did not act as the
agent of the tenement owner.
Par. 3 — electricity, gas, light, nitrogen.
Par. 4 — machinery not attached to land nor
needed for the carrying on of an industry
conducted therein; portable radio; a laptop
computer; a diploma hanging on the wall.
Sibal v. Valdez 50 Phil. 512
FACTS: In a case brought by plaintiff against
defendant, the latter won. For the purpose of
satisfying the judgment won by the defendant, the
sheriff attached the sugar cane that was then
growing on the lots of the plaintiff. Said lots
incidentally had already been previously attached
by another judgment creditor of the plaintiff. Within
the one-year period given by law for redemption,
the plaintiff wanted to redeem the lots from one
creditor, and the sugar cane from the other
creditor. The lots were redeemed, the redemption
of the sugar cane was however refused by the
defendant, who contended that the sugar cane
was personal property, and therefore could not be
the subject of the legal redemption sought to be
enforced. The plaintiff upon the other hand
claimed that the sugar cane was real property for
same could be considered as “growing fruits” under
par. 2 of Art. 415. Issue: How should the sugar cane
be regarded — as real property or as personal
property?
HELD: The sugar cane, although considered as
“growing fruits” and therefore ordinarily real
property under Par. 2 of Art. 415 of the Civil Code,
must be regarded as PERSONAL PROPERTY for
purposes of the Chattel Mortgage Law, and also for
purposes of attachment, because as ruled by the
Louisiana Supreme Court, the right to the growing
crops mobilizes (makes personal, as
contradistinguished from immobilization) the crops
by ANTICIPATION. More specifi cally, it said that the
existence of a right on the growing crop is a
mobilization by anticipation, a gathering as it were,
in advance, rendering the crop movable.
Art. 417. The following are also considered as
personal property:
(1) Obligations which have for their object
movables or demandable sums; and
(2) Shares of stock of agricultural, commercial
and industrial entities, although they may
have real estate.
Paragraph 1:
The term “obligations” really refers to rights or
credits.
Examples:
 The right to recover a stolen car
 The right to collect a debt of P1 million
 The right to eventually collect credit that has
not yet matured
 Promissory note and the right to collect it
Exclusions:
 The right to recover possession of a piece of
land is considered real property because
the object of such right is immovable.
 A mortgage on real estate is real property
by analogy.
Paragraph 2:
The term “stock” should be understood in its generic
meaning of “participation” and not in its technical
sense of being categorized under securities.
Examples:
 A share of stock in a gold mining
corporation is personal property but the
gold mine itself as well as any land
belonging to the corporation is real
property.
 All shares in all juridical persons
When money is in domestic circulation, money is
legal tender and is therefore NOT merchandise. It
6
still personal property whether it is legal tender or
not, whether it is merchandise or not.
Art. 418. Movable property is either consumable or
non-consumable. To the first class belong those
movables which cannot be used in a manner
appropriate to their nature without their being
consumed; to the second class belong all others.
NOTE: Look at the intention of the parties to identify
whether the property is consumable or non-
consumable, fungible or non-fungible.
Illustrations:
 A sack of rice borrowed for exhibition is
consumable by its nature but if it is agreed
that it be returned as it was when it was
borrowed, the same is also non-fungible.
 Vinegar borrowed for consumption with the
promise to return an equivalent amount of
the same quality is consumable and
fungible.
 A loan of rice for consumption is simple loan
or mutuum and a loan of rice for exhibition is
a commodatum.
CHAPTER 3
PROPERTY IN RELATION TO THE PERSON TO WHOM IT
BELONGS
Art. 419. Property is either of public dominion or of
private ownership.
All lands of the public domain belong to the state.
 Regalian Doctrine (Sec. 2, Art. XII 1987
Constitution)
Properties are owned either:
1) In a public capacity (dominio public)
2) In a private capacity (propriedad privado)
The State may own properties in its public capacity
(properties of public dominion) and in its private
capacity (patrimonial property).
Executive officials are entrusted with the function of
administering and disposing of lands of the public
domain in the manner prescribed by law. Only
agricultural lands may be so alienated.
Art. 420. The following things are property of public
dominion:
 (1) Those intended for public use, such as
roads, canals, rivers, torrents, ports and
bridges constructed by the State, banks,
shores, roadsteads, and others of similar
character;
(2) Those which belong to the State, without
being for public use, and are intended for
some public service or for the development
of the national wealth.
Public dominion means ownership by the State in
that it has control and administration. It means
ownership by the public in general, in that not even
the State or its subdivisions may make them the
object of commerce as long as they remain
properties for public use.
Three Kinds of Property of Public Dominion:
1) For public use (used by anybody)
2) For public service (used only by duly
authorized persons)
3) For the development of national wealth –
national resources
Shore – space alternately covered and uncovered
by the movement of the tide;
Foreshore lands – the land formed by recession of
the sea
Torrent – amount of water which in case of heavy
rains rathers in deep places or canals where it is
supposed to flow afterwards
Santos v. Moreno
Canals constructed by the State and devoted to
public use are of public ownership. Conversely,
canals constructed by private persons within
private lands and devoted exclusively for private
use must be of private ownership.
Art. 420 makes no distinction whether rivers must be
navigable or not for them to be considered part of
the public dominion.
Navigable rivers are outside the commerce of man
and cannot be registered under the Land
Registration Law.
Void land decisions may be attacked collaterally.
The action of the State for reversion does not
prescribe.
Paragraph 1 also includes:
a) Public streams
b) Natural beds of rivers
7
c) River channels
d) Waters of rivers
e) Creeks – an arm extending from a river
f) All lands thrown up by the sea and formed
by accretion upon the shore by the action
of water together with the adjacent shore
g) Lands reclaimed from the sea by the
Government
h) Manila bay or coastal area inasmuch as it
belongs to the state and is used as a
waterway
i) Private lands which have been invaded by
natural waters or by the waves of the sea
and converted into portions of shore or
beach
j) Streets even when planted with coconut
trees
Characteristics of Properties of Public Dominion:
1) Outside the commerce of man; cannot be
leased, donated, sold or be the object of
any contract except insofar as they may be
the object of repairs and improvements and
other incidental things of similar character
2) Cannot be acquired by prescription
3) Cannot be registered nor be the subject of
Torrens Title
4) Cannot be levied upon by execution nor
attached; includes their usufruct
5) Can be used by everybody
6) May be real or personal property
Public lands refer to that part of government lands
which are thrown open to private appropriation
and settlement by homestead and other like
general laws.
Public agricultural lands refer to those alienable
portions of the public domain which are neither
timber nor mineral lands.
Forest and mining lands are properties of public
dominion for the development of the national
wealth.
Public agricultural lands before being made
available to the general public should also be
properties of public dominion for the development
of national wealth and cannot be acquired by
prescription. After being made available (or
alienable) they become patrimonial property of the
State and therefore subject to prescription. Once
acquired by private persons, they become private
property.
Art. 421. All other property of the State, which is not
of the character stated in the preceding article, is
patrimonial property.

Patrimonial property is wealth owned by the state in

its private capacity and is not devoted to public
use, public service nor the development of national
wealth.

Other examples of patrimonial property:

 Friar lands
 San Lazaro Estate
 Properties obtained by the government in
escheat proceedings; those inherited by or
donated to the government; also the rents
of buildings owned by the state
 Municipal-owned waterworks system

Patrimonial properties may be acquired by private

individuals or corporations through prescription.

Art. 422. Property of public dominion, when no

longer intended for public use or for public service,
shall form part of the patrimonial property of the
State.

NOTE: Art. 461 provides that an abandoned river

belongs not to the state but to private land owner
whose land is now occupied by the changed
course, in proportion to the area lost.

Art. 423. The property of provinces, cities, and

municipalities is divided into property for public use
and patrimonial property.