PROPERTY, OWNERSHIP, AND ITS MODIFICATIONSTitle I- CLASSIFICATION OF PROPERTY

PRELIMINARY PROVISIONS

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. (333)

THING (COSA)- is generally understood to be any object that exists and is capable of satisfying some human needs. It includes both objects that are already possessed or owned (res alicujus) and those that are susceptible of appropriation.

PROPERTY (BIENES)- refers to anything which is already the object of appropriation or is found in the possession of man.

All though the civil code use both terms interchangeably, thing covers also objects not susceptible of appropriation hence thing is much comprehensive.

Requisites of property:1. UTILITY- or the capacity to satisfy some human want, such as for food, shelter, clothing, knowledge, comfort, recreation, etc. Utility which is generally economic endows property with value susceptible of pecuniary estimation;2. SUBSTANTIVITY OR INDIVIDUALITY- or quality of having existence apart from any other thing. 3. APPROPRIABILITY- susceptibility of being possessed by men. Rights as property:1. Real Right- is the right or interest belonging to a person over a specific thing without a definite passive subject against whom such right may be personally enforced. Also called Jus in Re

Classification of real rights based upon dominion:a) Domino pleno- the powers to enjoy and to dispose are united:DominionCivil PossessionHereditary Right.b) Domino menos pleno- the powers to enjoy and to dispose are separated:Surface RightUsufructc) Domino limitado-the powers to enjoy and to dispose are united but limited:By charge such as easement, taxBy guarantee, such as mortgage, pledgeBy privilege such as pre-emption

2. Personal Right- is the right or power of a person to demand from another as a definite passive subject, the fulfillment of the latters obligation. Also called Jus in Personam or Jus ad Rem

Elements of Personal Property:Active SubjectPassive SubjectObject/prestationJuridical/legal tie

Distinction between real rights and personal rightsReal RightPersonal Right

Number of persons who take part in the legal relation.Definite active subject who has a right against all persons generally as an indefinite passive subject.There is a definite passive and definite active subject.

Subject matterObject is generally corporeal thingIt is always incorporeal thing

The manner in which the will of the active subject actsActs directly Acts indirectly through the promise of the obligor

By the cause of their creationCreated by mode or titletitle

By the modes of their extinctionBy loss or destruction of the thingSurvives the subject matter

By the nature of the actions arising from juridical relationDirected against the whole world giving rise to real action (actio in rem)Binding or enforceable only against a particular person (actio in personam)

Classification of Property1) As to their naturea) Realb) Personalc) Mixed2) As to their ownershipa) Publicb) Private3) As to their divisibilitya) Divisibleb) Indivisible4) As to their consumabilitya) Consumableb) Non-consumable5) As to their susceptibility of substitutiona) Fungible-can be substitutedb) Non-fungible-cannot be substituted6) As to their alienabilitya) Within the commerce of manb) Outside the commerce of man7) As to their existence in timea) Existing or presentb) Future

8) As to their dependence or importancea) Principalb) Accessory9) As to their definiteness or designationa) Genericb) Specific10) As to their manifestability to the senses:a) Corporealb) Incorporeal

The main classification given by the Civil Code are Real or Personal (Art. 414) and Public or Private (Art. 419).

Classification into real and personal property:

American LawRealPersonal

EnglishImmovableMovable

SpanishBienes immueblesBienes Muebles

Most fundamental juristic classification based on the nature of the thing. That is its mobility or immobility. Classification is important because it affects all property as to acquisition, use and loss. Also as to prescription, registration and possession.

Difference:Real PropertyPersonal Property

Private Intl LawGoverned by the law of the country where the property is located.Law of the owners nationality or domicile

Criminal LawUsurpation of property only involves real propertyTheft and Robbery can only be committed against personal property

ProcedureActions concerning Real property are brought to RTC where the property liesPersonal Property is brought where the defendant/plaintiff reside, or may be found

ContractsOnly subject matter for mortgage and antichresisSubj. matter of deposit, mutuum, pledge and chattel mortgage

DonationValid only through a public instrumentMay be done orally if value does not exceed P5,000

Prescription30 yrs8 yrs

RecordingRecorded in the Registry of property to affect 3rd personNot required except for chattel mortgage and Ships in the Philippine Coast Guard)

Mixed properties/Semi-movables-partakes the nature of booth movable and immovable. Chapter 1 IMMOVABLE PROPERTY

Article 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 fixed 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 the tenements; (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; (6) Animal houses, pigeon-houses, beehives, fish ponds or breeding places of similar nature, in case their owner has placed them or preserves 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; (7) Fertilizer actually used on a piece of land; (8) Mines, quarries, and slag dumps, while the matter thereof forms part of the bed, and waters either running or stagnant; (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; (10) Contracts for public works, and servitudes and other real rights over immovable property. (334a)

Classes of immovable or real property:1) By nature- it cannot be carried from place to place2) By incorporation-it is attached to an immovable in a fixed manner to be an integral part thereof3) By destination- it is placed in an immovable for the utility it gives to the activity carried thereon, such as machinery installed in a building to meet the needs of an industry in the building, and docks on a river 4) By analogy- it is so classified by express provision of law because it is regarded as united to the immovable property.

Buildings is immovable provided it is more or less permanent structure independent. A structure superimposed on the soil (like barong barong) may be considered as movable A building sold to be demolished immediately is movable But the contracting parties, however may validly stipulate that a real property be considered as personal. After agreeing to such stipulation, they are consequently stopped from claiming otherwise. The parties to a contract of chattel mortgage may, by agreement, treat as personal property that which by its nature would be real property. But this is only good between contracting parties. The same cannot bind third persons who are not parties thereto or their privies. Same goes with rented house. Immobilized machineries and equipment can be considered personal depending on the intent of the owners.

Trees, plants and growing fruits They are immovable property while they are attached to the land or form an integral part of an immovable on the theory that they derive their existence or sustenance from the soil. Once they are cut or uprooted they become movable except in the case of uprooted timber, which according to Manresa still forms an integral part of timber land. Since trees and plants annexed to the land are parts thereof, unless rights or interests in such trees or plants are claimed in the registration proceedings by others, they become the property of the person to whom the land is adjudicated. Growing fruits, under certain conditions growing crops or fruits or ungathered products or fruits MAY be treated as personal property.

Everything attached to an immovable in a fixed manner Things included are called rex vinta are walls, canals and aqueducts. They are immovable by incorporation or attachment. Things which are temporarily separated from the immovable shall continue to be regarded as immovable if there is an intent to put them back. -however Tolentino feels that this is already not applicable. That once a immovable is removed they are considered movable. Intent to attach permanently is essential to be immovable.

Statues, reliefs, paintings or other objects for use or ornamentation. Objects must be placed by owner.-If placed by a person not the owner the object will not be immovable unless he acts as agent of the owner. It has been held that in case of immovables by incorporation, such as houses, trees and plants, Article 415 does not require that the attachment be made by the owner of the land, the only criterion is the union (or incorporation) with the soil. Intent to attach permanently is essential

Machiner, receptacles, instruments or implements for an industry or works There are three requisites for this class be immovable1) The machinery must be placed by the owner of the tenement or his agent. 2) The industry or works must be carried on in a building or on a piece of land3) The machinery must tend directly to meet the needs of the said industry or works. Cash registers, typewriters are merely incidental and not be considered immobilized. Because business can survive without it. Work animals are movable Electric poles and steel supporters are movable. The moment they are no longer used or needed in the industry, they revert to their normal condition of movables, although they are not separated from the immovable. But if still utilized even if temporarily separated from the tenament continues to be immovable.

Animal houses, pigeon houses, beehives, fish ponds, or breeding places of similar nature They are considered real property in case their owner has placed them or preserves 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. Have to be adhered to the soil. But animals can be regarded as personal property in case of alienation and for the purpose of criminal law. They can be the object of robbery and theft.

Fertilizers actually used on a piece of land Fertilizers are immovable if they are actually used because it is only then when there can be no question that they form part of the land. Hence, fertilizers kept in a barn are not immovable. Fertilizers already on the land for cultivation of which they are intended, but still in their containers, should still be regarded as movable property in the same manner as building materials on the land intended for construction of building.

Mines, quarries and slag dumps. Considered immovable property while he matter thereof forms part of the bed. Once served they become movable.

Waters either running or stagnant Considered immovable except for water per se which is movable

Docks and structures Though floating they are classified as real property if intended by their nature and object to remain at a fixed place on a river, lake or coasts.

Ships and vessels Considered personal property. Although they partake of the nature and condition of real property on account of their value and importance in the world of commerce. For this reason, in case of double sale, the rules in Article 1544 of the civil code is applicable. [footnoteRef:1] [1: Article 1544. If the same thing should have been sold to different vendees, the ownership shall be transferred to the person who may have first taken possession thereof in good faith, if it should be movable property. Should it be immovable property, the ownership shall belong to the person acquiring it who in good faith first recorded it in the Registry of Property. Should there be no inscription, the ownership shall pertain to the person who in good faith was first in the possession; and, in the absence thereof, to the person who presents the oldest title, provided there is good faith. (1473)]

Contracts for public works and servitudes and other real right over immovables Are considered immovables.

Chapter 2: Movable PropertyArticle 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. (335a)

Article 417. The following are also considered as personal property: (1) Obligations and actions 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. (336a)

Real property which by any special provision of law is considered personal property Growing crops are considered immovable under Art. 415 (2) but they are recognized as personal property by the Chattel Mortgage Law.

Forces of nature Electricity, gas, rays, heat, light, oxygen, etc.

In general, all movable Three tests may be applied to determine whether a particular object is movable property:1. Whether the property can be transported or carried from place to place;2. Whether such change of location can be made without injuring the immovable to which the object may be attached3. Whether the object does not fall within any of the ten cases enumerated in Article 415

Obligations and actions A promissory note is personal but if secured by a real estate mortgage the loan is real property. Shares of stocks are personal property

Other incorporeal personal property Intellectual property such as copy rights, patents, trademarks, right to invention is movable

Article 418. Movable property is either consumable or nonconsumable. 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 the others. (337)

Consumability/Non-consumability-depends on the nature of the thing

Fungible and non-fungible-depend on the intent of the parties.

FUNGIBLE- it can be substituted by another thing of the same kind, quality and quantity

NON-FUNGIBLE- if not replaceable in such equivalents.

Chapter 3: Property in Relation to the Person to whom it belongs

Article 419. Property is either of public dominion or of private ownership. (338)

Property classified according to ownership1) Public dominion- or property owned by the State (or its political subdivisions) in its public or sovereign capacity and intended for public use and not for the use of the State as a juridical person. 2) Private ownership- property owned by:a) The state in its private capacity, known as patrimonial property (Art. 421-424); b) Private persons, either individually or collectively.

Property is presumed to be State property in the absence of any showing to the contrary. All lands not appearing to be clearly private dominion presumably belong to the State. The burden of proof to overcome the presumption of ownership of lands of the public domain is on the person applying for registration.

Difference between dominion and ownership Property of public dominion is not owned by the State but simply under its jurisdiction and administration for the COLLECTIVE ENJOYMENT of all the people of the State which it is the territorial sovereign. The purpose of property of public dominion is not to serve the State as a juridical person but the citizens. It is intended for the common and public welfare, and so it cannot be the object of appropriation either by the State or by private persons. The relation of the State to this property arises from the fact that the State is the juridical representative of the social group, and as such it takes care of and preserves the same, and regulates its use for the general welfare.

Article 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. (339a)

Property of Public Dominion:There are three kinds of this propertya) Property intended for public use-which can be used by the public or everybody, and not limited to privileged individuals and others of similar character.b) Property intended for public service- which can be used only by duly authorized persons, such as government buildings and vehiclesc) Property intended for the development of national wealth- minerals, coal, oil, forest and other natural resources.

The charging of fees to the public does not determine the character of property. Thus a property of public dominion even charges fees do not affect the public character of the road or its character for public use. Canals constructed by private persons over private property are of private ownership

Property of similar character to those intended for public use:1) Public streams, rivers channels, river beds, creeks and esteros2) Accretions to the shores of the sea by action of the water3) Submerged lands, lands reclaimed from the sea4) Lands that disappeared into the sea by natural erosion. Even after its reclaimed it still belongs to the government5) Canals constructed on private lands of private ownership but the owner loses his proprietary rights over said canal through prescription by allowing the pubic to use it for transportation and fishing purpose. 6) Foreshore lands 7) A lot on which stairways were built for the use of the people as passageway to the highway.

Property outside the commerce of men Property of public dominion are outside of the commerce of men. It has the characteristic of COLLECTIVE OWNERSHIP. They cannot be sold, leased or otherwise be the subject matter of contracts Property donated to a town for use as public plaza becomes property for public use and cannot be the subject of contracts. They cannot be acquired by prescription Land formed by the action of the sea as accretion forms part of the public domain; it cannot be appropriated not can it acquired by prescription. They cannot be encumbered, attached or be subject to levy and sold at public auction to satisfy a judgment They cannot be burdened with easements. They cannot be registered under the land registration law and be the subject of a torrens title. The right of reversion to the State of public property registered and which is not capable of private appropriation or acquisition does not prescribe.

Public lands and government landsPUBLIC LANDSGOVERNMENT LANDS

Used to describe so much of the national domain under the legislative power of Congress as has not been subjected to private right or devoted to public use.It is held equivalent to lands of the public domain and does not include by any means all lands of government ownership but only so much of said lands as are thrown open to private appropriation and settlement by homestead law and other like general laws. Broader term. It includes not only the first but also other lands of the government already reserved or devoted to public use or subject to private rights and patrimonial lands.

Alienation of public agricultural land Under the Constitution, all natural resources belong to the state, except of public agricultural lands, they are not subject to alienation. Unless public land is shown to have been reclassified and alienated by the State to a private person, it remains part of the inalienable public domain. Before public agriculture lands are made available for disposition, they are property of public dominion. They are not capable of private appropriation but after being made available they become patrimonial or private property In the hands of government agency tasked to dispose lands of the public domain, these lands are still public. Only when qualified parties acquire these lands will they become private lands.

Article 421. All other property of the State, which is not of the character stated in the preceding article, is patrimonial property. (340a)

Patrimonial property- is the property of the State owned by it in its private or proprietary capacity. It is the property over which the State has the same rights and which it may dispose to the same extent as private individuals. This kind of lands may be acquired by private individuals or juridical persons through prescription. It can be the object of an ordinary contract.

Examples: incomes or rents of the State; vacant lands without known owner or possessor property escheated to the State; property acquired in execution and tax sales, property donated to the government; waterworks; slaughter houses, markets, cemeteries

Article 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. (341a)

Conversion of property of public dominion to patrimonial property

This provision is not self-executing. There must be a formal declaration by the executive or possibly legislative department of the government that the property of the State is no longer needed for public use or for public service before the same can be classified as patrimonial or private property of the State. Under the Regalian doctrine, all lands of the public domain belong to the State and lands not otherwise appearing to be clearly within private ownership are presumed to belong to the State. Unless public land is shown to have been reclassified as disposable and subsequently alienated to a private person. The disposition of reclaimed lands is governed by Public land act. In case of provinces, cities and municipalities, the conversion must be authorized by law. Under the revised admin code the provincial board was held without power to grant exclusive use of an unfinished provincial road for twenty years to a lumber company in consideration of the latter completing the construction thereof, much less declare it private property.

Article 423. The property of provinces, cities, and municipalities is divided into property for public use and patrimonial property. (343)

Article 424. Property for public use, in the provinces, cities, and municipalities, consist of the provincial roads, city streets, municipal streets, the squares, fountains, public waters, promenades, and public works for public service paid for by said provinces, cities, or municipalities.

All other property possessed by any of them is patrimonial and shall be governed by this Code, without prejudice to the provisions of special laws. (344a)

Property of political subdivisions Property of political subdivisions are divided into:Property for public use and patrimonial property. All property other than property enumerated in Art. 424 are patrimonial property. They have no authority to control or regulate the use of public properties such as roads and parks unless specific authority is vested upon them by congress.

Article 425. Property of private ownership, besides the patrimonial property of the State, provinces, cities, and municipalities, consists of all property belonging to private persons, either individually or collectively. (345a)

Refer to all property belonging to private persons wither collectively or individually and those belonging to the State and any of its political subdivisions which are patrimonial in nature. A possessory information inscribed in the Register of Property showing possession by their occupants and their predecessors since time immemorial demonstrates prima facie that the possessors of the land to which it refers are the owners thereof. The fact that a road has been kept in repair by a private enterprise and the government has not contributed to the const tends strongly to support the contention that its private The mere fact that a tract of land has been used for a long time as a road will not alone warrant the presumption that is has been dedicated to the public

Property owned by the catholic church- with the separation of the Church and state, there is nothing prohibiting the church from alienating any property.

Provisions common to the three preceding chapters

Article 426. Whenever by provision of the law, or an individual declaration, the expression "immovable things or property," or "movable things or property," is used, it shall be deemed to include, respectively, the things enumerated in Chapter 1 and Chapter 2.

Whenever the word "muebles," or "furniture," is used alone, it shall not be deemed to include money, credits, commercial securities, stocks and bonds, jewelry, scientific or artistic collections, books, medals, arms, clothing, horses or carriages and their accessories, grains, liquids and merchandise, or other things which do not have as their principal object the furnishing or ornamenting of a building, except where from the context of the law, or the individual declaration, the contrary clearly appears. (346a)

TITLE II.-OWNERSHIP

CHAPTER 1: OWNERSHIP IN GENERAL

Article 427. Ownership may be exercised over things or rights. (n)

OWNERSHIP- is that independent right of a person to the exclusive enjoyment and control of a thing including its disposition and recovery subject only to the restrictions or limitations established by law and the rights of others.

Beneficial ownership, legal ownership and naked ownership

BENEFICIAL OWNERSHIP- is ownership recognized by law and capable of being enforced in court, as distinct from legal ownership and control. Beneficial use, ownership or interest in property means right to its enjoyment in one person where the legal title is in another.

It is used in two senses:1) To indicate the interest of a beneficiary in trust property (also called equitable ownership)2) To refer to power of a shareholder of a corporation to buy or sell, the shares though the shareholder is not registered in the corporations books as the owner.

NAKED OWNERSHIP- the enjoyment of all the benefits and privileges of ownership as against the bare title to property.

Subject-matter of ownership1) By thing is understood generally any material object. Things usually refer to corporeal property. 2) Rights whether real or personal, are classified as incorporeal property.

Article 428. The owner has the right to enjoy and dispose of a thing, without other limitations than those established by law.

The owner has also a right of action against the holder and possessor of the thing in order to recover it. (348a)

Rights included in ownership1. Jus possidendi or the right to possess2. Jus utendi or the right to use and enjoy;3. Jus fruendi or the right to the fruits;4. Jus accessionis or right to accessories;5. Jus abutendi or the right to consume the thing by its use;6. Jus disponendi or the right to dispose or alienate7. Jus vindicandi or the right to vindicate or recover

RIGHT TO POSSESS- is the right to hold a thing or enjoy a right. It may be exercised in ones own name or in that of another.

Ownership is different with possession. The right to possess does not always include the right to use. Ones possession may be in the concept of owner or a mere holder with the ownership pertaining to another. A person may be declared owner but he may not be entitled to possession which may be in the hands of another such as a tenant or a lessee. Therefore a judgment of ownership does not necessarily include possession as a necessary incident. However where the ownership of a property was decided in a judgment the delivery of possession should be considered included in the decision where the defeated partys claim to the possession is based on his claim of ownership. An exception exists where the actual possessor has shown a valid right over the property enforceable even against the owner thereof. In a contract of sale, the vendor is bound not only to transfer the ownership of, but also to deliver as well as warrant the thing which is the object of the sale (Art. 1495). The ownership of the thing sold is acquired by the vendee from the moment it is delivered to him (Art. 1496). The thing shall be understood as delivered, when it is placed in the control and possession of the vendor.

RIGHT TO USE AND ENJOY- Includes the right to transform and the right to exclude any person from the enjoyment and disposal thereof.

For this purpose he may use force as may be reasonably necessary to repel or prevent an actual or threatened unlawful physical invasion or usurpation of his property. Like enclose or fence his property.

However he cannot make use his property to injure the rights of third persons otherwise he is liable for damages. The use of property has a social function to contribute to the common good.

TITLE II. OWNERSHIP

CHAPTER 1: OWNERSHIP IN GENERAL

Article 427. Ownership may be exercised over things or rights. (n)

OWNERSHIP- is that independent right of a person to the exclusive enjoyment and control of a thing including its disposition and recovery subject only to the restrictions or limitations established by law and the rights of others.

Beneficial ownership, legal ownership, and naked ownership

BENEFICIAL OWNERSHIP: is ownership recognized by law and capable of being enforced in court. Right to its enjoyment in one person where the legal title is in another.

Used in two senses:a) To indicate the interest of a beneficiary in trust property= equitable ownershipb) To refer to power of a shareholder of a corporation to buy or sell, the shares though the shareholder is not registered in the corporations books as the owner

NAKED OWNERSHIP: enjoyment of all benefits and privileges of ownership, as against the bare title to property.

Subject-matter of ownershipOwnership may be exercised over things or rights1) THING: understood generally any material object. Usually refer to corporeal property. 2) RIGHT: real or personal, are classified incorporeal property. The res of rights may be corporeal or incorporeal.

Article 428. The owner has the right to enjoy and dispose of a thing, without other limitations than those established by law. The owner has also a right of action against the holder and possessor of the thing in order to recover it. (348a)

Rights included in ownership (includes both things and rights)1) Right to Enjoy and use-Jus utendia) Right to possess-Jus possidendib) Right to enjoy and use-Jus Utendic) Right to fruits-Jus Fruendid) Right to accessories-Jus Accessionis2) Right to Dispose or alienate-Jus disponendia) Right to consume the thing byits use-Jus abutendib) Right to alienate or dispose-Jus disponendi3) Right to Recover or to vindicate-Jus vindicandi

RIGHT TO POSSESS-is the right to hold a thing or enjoy a right. It may be exercised in ones own name or in that of another1) Ownership is different from possession. The right to possess does not always include the right to use (e.g. Deposit)2) A owner may not be entitled to possession (lease). Therefore, a judgment of ownership does not necessarily include possession as a necessary incident. 3) A claim of ownership was decided in judgment, the delivery of possession should be considered included in the decision where the defeated partys claim to the possession is based on his claim of ownership or the other party has no right to possess. Exception is when possessor has valid right over property (no. 2). 4) In a contract of sale, the vendor is bound not only to transfer the ownership but deliver the thing/object of the sale. Delivery happens when the property is placed in the control and possession of the person.

RIGHTS TO USE AND ENJOY1) The right to transform2) The right to exclude any person from the enjoyment and disposal thereof.

He may use such force as may be reasonably necessary to repel or prevent an actual threat, unlawful physical invasion, or usurpation of his property. He may enclose or fence his property subject to the servitudes that may be constituted thereon An owner cannot make use of his property in such a manner as to injure the rights of a third person. Otherwise he is liable for damages. The use of property has a social function to contribute to the common good.

RIGHT TO RECEIVE THE FRUITS AND ACCESSORIES. The ownership of property gives the right by accession to everything incorporated or attached to the property either naturally or artificially. Accession includes the right to fruits and the right to accessories of a thing. But there are instances when the right to fruits is given to the possessor not the owner. The general rule is that all accessions and accessories are included in the obligation to deliver a determinate thing although they may not have been mentioned.

RIGHT TO CONSUME Also known as Jus abutendi. This means that the owner has the right to consume a thing by its use The owner has even the right to abuse or even destroy the thing owned.

RIGHT TO DISPOSE OR ALIENATE An owner may dispose of or alienate his property either totally as in sale and donation or partially without transferring ownership, encumber as in lease, pledge and mortgage. Includes the right not to dispose. The contract of pledge or mortgage may be constituted only by the absolute owner of the thing pledged or mortgaged otherwise the pledge/mortgage is void.

RIGHT TO RECOVER POSSESSION AND/OR OWNERSHIP The owner has a right of action against the holder and possessor of the thing in order to recover it. A possessor however has the presumption of title in his favor. (he has the right to be respected in his possession)-solution is to go to judicial process.

ACTIONS AVAILABLE TO RECOVER POSSESSION AND/OR OWNERSHIP:1) RECOVERY OF PERSONAL PROPERTY REPLEVIN (MANUAL DELIVERY OF PERSONAL PROPERTY) Governed by Rule 60 of the Rules of Court (Sec. 2) Requires the plaintiff to state in an affidavit that he is the owner of the property claimed, particularly describing it, or that he is entitled to the possession thereof and that it is wrongfully detained by the adverse party. The applicant for the writ of replevin has the burden of proving ownership/right of possession. Both a form of principal and provisional remedy. A property under cutodia legis cannot be a subject of replevin. The action shall prescribe 4 or 8 years from the time the possession thereof is lost. 2) RECOVERY OF REAL PROPERTY FORCIBLE ENTRY UNLAWFUL DETAINER Ejectment suit which may be instituted by a person deprived of the possession of any land or building by force, intimidation, threat, strategy or stealth or landlord, vendor, vendee or other person against whom the possession of any land or building is unlawfully withheld after the expiration or termination of the right to hold possession by virtue of any contract JURISDICTION: municipal trial court; metropolitan trial court PRESCRIPTION: within one year from the date of actual entry on the land or date of last demand to vacate. Deals only with physical possession. The question of ownership is only answered provisionally Summary in nature After one year, the owner of the property cannot resort to either of these remedies. FORCIBLE ENTRY- it is from the time of entry that it became unlawful UNLAWFUL DETAINER- possession is at first lawful later became illegal due to expiration or termination of the right to possess. ACTION TO RECOVER POSSESSION (ACCION PUBLICIANA/ACCION PLENARIA DE POSESION) Is an ordinary civil proceeding to recover the better right of possession of realty independently of title, except in cases of forcible entry and unlawful detainer. Or after prescription of 1 year for bringing forcible entry and unlawful detainer has already expired. PRESCRIPTIVE PERIOD- 10 years otherwise the real right of possession is lost. JURISDICTION- RTC ACTION TO RECOVER POSSESSION BASED ON OWNERSHIP (ACCION REIVINDICATORIA OR ACCION DE REINVINDICACION) Seeks the recovery of possession based on ownership The 4 cases above are in personam proceedings meaning they only bind the same parties or their successor in interest ACTION FOR RECONVEYANCE What is sought is the transfer of the property which has been wrongfully or erroneously registered in another persons name, to its rightful and legal owner, or to one with a better right. The complaint must allege two facts: 1) that the plaintiff was the owner of the land or possessed the land in the concept of owner; 2) that the defendant had illegally disposed him of the land. An action for damages not reconveyance is the proper remedy if the property has passed into the hands of innocent party for value. Prescriptive period-4 years from date of issuance of the certificate of title over the property; 10 years if based on implied or constructive trust ; imprescriptible when the plaintiff is in possession of the property. Available not only to legal owner but also to the person with better right than the person under whose name the property was erroneously registered. CONCEPTS OF IN REM AND IN PERSONAMIN REM-Is an action affecting title to real property or recovery of possession. Action against the thing itself.IN PERSONAM- action against a person on his personal liability; Enforcement of contract, recovery of possession. INJUNCTION AS A REMEDY FOR RECOVERY OF POSSESSIONINJUNCTION- is a writ framed according to the circumstances of the case commanding an act which the court regards as essential to justice or restraining an act it deems contrary to equity and good conscience. It is a judicial process whereby a person is required to do or refrain from doing a particular thing. In order that a preliminary injunction may be granted at any time after the commencement of the action and before judgment:1) There must exist a CLEAR AND POSITIVE RIGHT over the property in question which should be judicially protected through the writ2) The acts against which the injunction is to be directed are violative of said rights.

Jurisdiction- Regional Trial Court Injunctive relief will not be granted to take property out of possession or control of one party. Its proper function is to maintain status quo at the commencement of the action. Injunction cannot be substitute for other suits of recovery.

CASES WHERE INJUNCTION IS ALLOWED:1) Actions for forcible entry- the dispossessed plaintiff may file within 10 days from the filing of the complaint, a motion for preliminary mandatory injunction to restore to him in possession. Reason to prevent defendant from committing further acts of dispossession against the plaintiff.2) Ejectment cases- Usually involves contracts of lease. Where an appeal is taken, the lessor is given the same remedy granted in Article 539 if the higher court is satisfied that the lessees appeal is frivolous or dilatory or that the lessors appeal is prima facie meritorious. 3) Possessor admittedly owner or in possession in concept of owner- where the actual possessor of the property is the owner seeks protection from repeated intrusions into his property by a stranger, the writ of injunction may be issued to restrain the acts of trespass and illegal interference with his possession4) Possessor clearly not entitled to property- Although as a general rule, a court should not by means of a preliminary injunction, transfer property in litigation from the possession of one party to another, the exception is when there is a clear finding of right of ownership and possession of a land in favor of the party who claims the subject property is covered by a Torrens title pointing to such party as the undisputed owner especially where the certificate of title was never converted by the possessor not its issuance tainted with bad faith. 5) Extraordinary cases-where immediate possession is a necessity. Where irreparable injury will be done if adequate remedy is not given.

WRIT OF POSSESSION- is generally understood to be an order whereby a sheriff is commanded to place a person in possession of a real or personal property, such as when a property is extrajudicially foreclosed, or to enforce a judgment and give possession of the property to the person entitled under the judgment.

Summary in nature, without need of notice to any adverse party, as it is brought for the benefit of one party only.

The writ is improper to eject another from possession unless sought in connection with a land registration proceeding.

1) LAND REGISTRATION PROCEEDING- the judgment confirming the title of the applicant and ordering the registration in his name carries with it the delivery of possession which is an inherent element of ownership. No period of prescription as to the issuance of a writ of possession,

A) AGAINST DEFEATED PARTY AND ADVERSE OCCUPANT-adversely occupying the land or any portion thereof during the land registration proceedings. The purpose of the writ is to place the winning party in possession of the property covered by such decree. B) AGAINST SUBSEQUENT TRANSFEREE OR POSSESSOR-Writ is not issued to them. Remedy is a forcible entry or lawful detainer case. C) MAY INCLUDE WRIT OF DEMOLITION

2) REAL ESTATE MORTGAGE-the possession of the property sold may be given to the purchaser by the sheriff as against the mortgagor or judgment debtor after the period of redemption is expired unless a third peerson is actually holding the property adversely. 3) CHATTEL MORTGAGE-necessary to recover possession of the mortgaged chattel in case of the refusal of the mortgagor to surrender it. 4) EMINENT DOMAIN PROCEEDINGS- The following requisite must be satisfied:a) Complaint for expropriation sufficient in form and substanceb) Provisional determination of just compensation made by trial court on the basis of judicial discretionc) The deposit requirement in the Rules of court must be complied5) EJECTMENT6) EXECUTION SALES

LIMITATIONS ON THE RIGHT OF OWNERSHIP1) Imposed by the state in the exercise of the power of taxation, police power and eminent domain2) Those imposed by law such as LEGAL EASEMENT and the requirement of legitime in succession3) Those imposed by the grantor of the property either by contract or will4) Imposed by the owner himself (easement, mortgage, pledge and lease)5) Conflicts of private rights-accession continua6) Acquisition of private lands by aliens

Article 429. The owner or lawful possessor of a thing has the right to exclude any person from the enjoyment and disposal thereof. For this purpose, 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. (n)

Embodies the doctrine of self-help (the owner may use only such force as may be reasonably necessary; the right to repel or prevent an actual or threatened physical invasion or usurpation of property is essential to the maintenance of property rights. Requisites for the article to apply:1) Owner or lawful possessor- The person defending his property must be the owner or lawful possessor; hence, if his possession is wrongful, the right to use force cannot be availed of;2) Reasonable force- He must use only such force as may be reasonably necessary to repel or prevent an invasion or usurpation of his property; otherwise, he shall be liable for damages. 3) No delay- the doctrine of self-help can only be exercised at the time of an actual or threatened dispossession or immediately after the dispossession to regain possession. Once delay has taken place the owner must resort to judicial process for the recovery of the property for he is not longer justified in taking the law into his own hands.4) Actual or threatened physical invasion or usurpation

Art. 432 is an exception of Art. 429

Article 430. Every owner may enclose or fence his land or tenements by means of walls, ditches, live or dead hedges, or by any other means without detriment to servitudes constituted thereon. (388)

Flows from the right of ownership is the right of others to existing servitudes imposed on the land or tenement.

Article 431. The owner of a thing cannot make use thereof in such manner as to injure the rights of a third person. (n)

Article 432. The owner of a thing has no right to prohibit the interference of another with the same, if the interference is necessary to avert an imminent danger and the threatened damage, compared to the damage arising to the owner from the interference, is much greater. The owner may demand from the person benefited indemnity for the damage to him. (n)

This article is an exemption to the general rule that a person cannot interfere with the right of ownership. This article is based on the state of necessity, a justifying circumstance recognized in the RPC but which does exempt civil liability. Two requisites:1) Interference necessary- interference is necessary to prevent imminent danger (E.g. Firemen breaking in a house on fire)2) Damage to another much greater than damage to property

Article 433. Actual possession under claim of ownership raises disputable presumption of ownership. The true owner must resort to judicial process for the recovery of the property. (n)

Applies to both movable and immovable property. Requisite to raise the presumption:1) There must be actual (physical/material) possession of the property2) The possession must be under claim of ownership When a person is peacefully in possession of the property he shall not be turned out by force, by violence or by terror. Real owner must use judicial process (ejectment case or reinvindicatoria). Exception to Art. 429. Cases which are summary in nature like ex parte petition cannot be used to claim possession held by a possessor of property.

Article 434. In an action to recover, the property must be identified, and the plaintiff must rely on the strength of his title and not on the weakness of the defendant's claim. (n)

Preponderance of evidence is the quantum of evidence needed. Must prove not only his ownership of the property but to be able to identify the lands he claim (describing the location, area and boundaries). Failure to prove, his action will fail. Evidence to prove ownership Maybe written, oral Torrens Title Title from Spanish Government Patent duly registered in the Registry of Property by the grantee Deed of sale Operating a business for 9 years in defendants own name representing himself to the public to be the owner and the plaintiff never made any protest or objection Occupation of a building for a long time by a party without paying rent A letter in which defendant recognized the ownership of the property by the plaintiff Adverse and exclusive possession and ownership of parcels of land for a long time attested not only by witnesses but also by declaration of properties payment of taxes and deed of mortgage executed by the possessors predecessors-in-interest as owners of the property. Indicia of claim of ownership- maybe support but does is not sufficient to claim ownership alone:1) Mere fact of working in the land without expressing the concept in which the land was being worked2) Mere leasing of property and receiving rent3) Tax declaration and tax receipts4) Deed of Donation inter vivos and proper nuptias that is void5) Mere registration of adverse claim

What is conclusive are certificates of title. It indicates true and legal ownership of a private land. Although when the CTC is subsequently registered (a earlier certificate was issued) the subsequent TCT is null and void.

Article 435. No person shall be deprived of his property except by competent authority and for public use and always upon payment of just compensation. Should this requirement be not first complied with, the courts shall protect and, in a proper case, restore the owner in his possession. (349a)

Known as eminent domain[footnoteRef:2] [2: to expropriate private property for public use paying the owner just compensation to be ascertained according to law.]

Requisites:1) Taking by competent authority2) For public use3) Owner to be paid just compensation4) Due process must be observed

Owner losses his right1) Where there is estoppel or acquiescence on part of owner (e.g. he allows public utility company to construct a tower without objection)-he may only sue for just compensation.

Article 436. When any property is condemned or seized by competent authority in the interest of health, safety or security, the owner thereof shall not be entitled to compensation, unless he can show that such condemnation or seizure is unjustified. (n)

Provision is based on Police Power and is related to use and enjoyment and not ownership Person affected not entitled to financial compensation, unless he shows that condemnation is unjustified.

ARTICLE 437. The owner of a parcel of land is the owner of its surface and of everything under it, and he can construct thereon any works or make any plantations and excavations which he may deem proper, without detriment to servitudes and subject to special laws and ordinances. He cannot complain of the reasonable requirements of aerial navigation. (350a)

The right of the owner of a parcel of land to construct any works or make any plantations and excavations on his land is subject to:1) Existing servitudes or easements2) Special laws-springs from the concept of regalian doctrine that all mineral and other natural resources found either in public or private lands are owned by the state (ART XII, Sec. 2; Art 519)3) Local ordinances4) Reasonable requirements of aerial navigation5) Rights of third persons

Art. 438. Hidden treasure belongs to the owner of the land, building, or other property on which it is found.

Nevertheless, when the discovery is made on the property of another, or of the State or any of its subdivisions, and by chance, one-half thereof shall be allowed to the finder. If the finder is a trespasser, he shall not be entitled to any share of the treasure.

If the things found be of interest to science of the arts, the State may acquire them at their just price, which shall be divided in conformity with the rule stated. (351a)

Place where treasure may be found- land building or other property Belongs to owner of land if he is the finder-except if found in the interest of science which is tantamount to special case of eminent domain. Finders entitled to one-half if he is not the owner of land. Meaning of by chance-synonymous to good luck Finder not entitled to share if a trespasser Right of finder employed to look for treasure-is for compensation only and not share, unless there is a stipulation. Right of lessee of usufructuary-he gets half

Art. 439. By treasure is understood, for legal purposes, any hidden and unknown deposit of money, jewelry, or other precious objects, the lawful ownership of which does not appear. (352)

Unknown-totally hidden or unexpected. Hence it is not unknown if purposely hidden by owner of property who can recover it from the finder, unless he abandoned it or considered it loss without expectation of finding it. Its essential that no lawful ownership appearsTITLE III- CO OWNERSHIP

Article 484. There is co-ownership whenever the ownership of an undivided thing or right belongs to different persons. In default of contracts, or of special provisions, co-ownership shall be governed by the provisions of this Title. (392)

CO-OWNERSHIP- as a manifestation of ownership, form of ownership which exists whenever an undivided thing or right belongs to different persons. It is one aspect of ownershipAs a right, the right of common dominion which two or more persons have in a spiritual or ideal part of a thing which is not materially or physically divided.

Requisites of Co-ownership1) There must be plurality of owners2) The object of ownership must be a thing or right which is undivided- may be real or personal, or a right3) Each co-owners right must be limited only to his ideal share of the physical whole. He cannot point to a particular portion of the property as his very own.

Characteristics of Co-ownership1) There are two or more co-owners2) There is a single object which is not materially or physically divided, each co-owner exercise ownership, together with other co-owners3) There is no mutual representation by the co-owners 4) It exists for the common enjoyment of the co-owners5) It has no distinct legal personality6) It is governed first of all by the contract of the parties otherwise by special legal provisions and in default of provisions under title III.

There is NO co-ownership when the different portions owned by different people are already CONCRETELY DETERMINED AND SEPARATELY IDENTIFIABLE, even if not yet technically described.

Sources of co-ownership1. By Contract- such as when two persons shared in paying the purchase price of a parcel of land with the agreement to divide the land equally between them. 2. By Law- absolute community of property between spouses; easement of party walls3. By Succession- heirs of undivided property before partition.4. By testamentary disposition or donation intervivos- where the testator or donor prohibits partition of the property for a certain period of time.5. By fortuitous event or by chance- discovery of hidden treasure, confusion which takes place by accident. (example of sir: two old ladies grab each others identical pearl necklaces that was scattered in the floor-they are co-owners)6. By occupancy- when two persons catch a wild animal or fish in the open sea or gather forest products. But if there is agreement between them it would arise from contract.

Co-ownership distinguished from joint ownership

CO-OWNERSHIPJOINT OWNERSHIP

Ownership of ShareOwner of the whole undivided thing or right but at the same time of his own ideal part thereof.No abstract share, the rights of the joint tenants being inseparable

Disposition of SharesCan dispose of without consent of the otherNot permitted to dispose of his share without the consent of the other

Effect of deathThe heirs are subrogated to the rights of the deceasedHis ownership dies with him and instead of his heirs inheriting his share

Legal disability or incapacity

Not true with co-ownershipHis disability inures to the benefit of the others for purposes of prescription and therefore prescription will not run against the latter who can invoke the disability as a defense

Co-ownership distinguished from partnership

CO-OWNERSHIPPARTNERSHIP

CREATIONMay be created without the formalities of a contractCreated only by a contract

PERSONALITYHas no juridical or legal personalityHas juridical personality distinct from the partners

PURPOSEPurpose of collective enjoyment of the thingTo obtain profits

DISPOSAL OF SHARECan dispose share without consent of the other with the transferee automatically becoming a co-ownerCannot be substituted without consent of the other partners

MUTUAL AGENCYNo Mutual RepresentationA partner can bind the partnership

DISTRIBUTION OF PROFITSProportional to respective interest of co-ownersSubject to stipulation of parties

EFFECT OF DEATH AND INCAPACITYNot dissolved by death or incapacity of a co-ownerDissolves partnership

DURATIONA agreement to keep the thing divided more than 10 years is voidWithout limit depending on the will of the partners.

Co-ownership distinguished from easement

CO-OWNERSHIPEASEMENT

A co-owner has a right of dominion over the entire property and his undivided shareA limitation on the right of dominion

Right of co-ownership rests solely on each and every co-owner over a single objectRight of dominion is in favor of one or more persons and over two or more different things.

Article 485. The share of the co-owners, in the benefits as well as in the charges, shall be proportional to their respective interests. Any stipulation in a contract to the contrary shall be void.

The portions belonging to the co-owners in the co-ownership shall be presumed equal, unless the contrary is proved. (393a)

Applicable only if stipulation in contract, hence is created by will or donation, the share of the co-owners need not be proportionate to their respective interest.

Article 486. Each co-owner may use the thing owned in common, provided he does so in accordance with the purpose for which it is intended and in such a way as not to injure the interest of the co-ownership or prevent the other co-owners from using it according to their rights. The purpose of the co-ownership may be changed by agreement, express or implied. (394a)

Limitations on co-owners right of use1) In accordance with the purpose for which the co-ownership is intended- to determine the purpose, one must resort to the agreement of the co-owners. In the absence thereof, it is understood that the use is for the ordinary use of it. If the thing has been previously used for a particular purpose it is presumed that its till what is intended by the parties. The co-owners can change the purpose by agreement. Mere tolerance and prescription cannot be invoked. 2) In such a way as not to injure the interest of the co-ownership3) In such a way as not to prevent the other co-owners from using it according to their rights.

Article 487. Any one of the co-owners may bring an action in ejectment. (n)

Co-owners are authorized to bring in behalf of himself and the other co-owners an action in ejectment affecting the co-ownership. It can proceed without impleading the other co-owners Any judgment of the court in favor of the plaintiff will benefit the other co-owners but if the judgment is ADVERSE the same cannot prejudice the rights of the unpleaded co-owners. But they are bound where it appears that the action was instituted in their behalf with their express or implied consent.

Article 488. Each co-owner shall have a right to compel the other co-owners to contribute to the expenses of preservation of the thing or right owned in common and to the taxes. Any one of the latter may exempt himself from this obligation by renouncing so much of his undivided interest as may be equivalent to his share of the expenses and taxes. No such waiver shall be made if it is prejudicial to the co-ownership. (395a)

Obligation to contribute expenses The expenses of preservation of the thing or right owned in common and the amount of taxes due thereon should be borne by all. Hence a co-owner who advanced them as a right to demand reimbursement from the others in proportion to their respective interests in the co-ownership. Until reimbursed, he holds a lien upon the subject property for the amounts due. Article 488 only refers to necessary expenses Although useful expenses can also be but needs to be with the consent of the other co-owners. Expenses for pure luxury are not refundable.

Renunciation of his share Renunciation need not be in total. But only equivalent to his share of expense.-Proportionate to his share. The nature of the renunciation is in realty a case of DACION EN PAGO But the renunciation needs to have the consent of the owner of the share. A co-owner who has not waived his share in the co-ownership may be compelled (by action in court) to pay his share in the cost of its maintenance. He may not be compelled to renounce. But renunciation is not allowed in all cases (e.g. a co-owner having the means cannot renounce to exempt himself from the duty to contribute for the repair of ruinous building in danger of falling.)

Article 489. Repairs for preservation may be made at the will of one of the co-owners, but he must, if practicable, first notify his co-owners of the necessity for such repairs. Expenses to improve or embellish the thing shall be decided upon by a majority as determined in Article 492. (n)

Talks about the ACTS OF PRESERVATION The law requires that the co-owner if practical must first notify his co-owners of the necessity to repair. This can be dispensed if co-owners are cannot be reached by ordinary means of communication. The lack of notice even if practicable would not exempt the other co-owners from the obligation. Reason of the notice is to prevent fraud. The unjustified opposition of a co-owner which resulted to losses, those who opposed shall be liable for it.

Article 490. Whenever the different stories of a house belong to different owners, if the titles of ownership do not specify the terms under which they should contribute to the necessary expenses and there exists no agreement on the subject, the following rules shall be observed: (1) The main and party walls, the roof and the other things used in common, shall be preserved at the expense of all the owners in proportion to the value of the story belonging to each; (2) Each owner shall bear the cost of maintaining the floor of his story; the floor of the entrance, front door, common yard and sanitary works common to all, shall be maintained at the expense of all the owners pro rata; (3) The stairs from the entrance to the first story shall be maintained at the expense of all the owners pro rata, with the exception of the owner of the ground floor; the stairs from the first to the second story shall be preserved at the expense of all, except the owner of the ground floor and the owner of the first story; and so on successively. (396)

Although there are apparently separate and distinct properties, these are indestructively united for their ornamentation and use even for their very existence with other necessary and essential things which are the main and party walls, the roof and other things used in common.

Article 491. None of the co-owners shall, without the consent of the others, make alterations in the thing owned in common, even though benefits for all would result therefrom. However, if the withholding of the consent by one or more of the co-owners is clearly prejudicial to the common interest, the courts may afford adequate relief. (397a)

Known as the acts of alteration Alteration- change made by a co-owner in the thing owned which involves: Change of the thing from the state or essence in which the others believe should remain Withdrawal of the things from the use to which they wish it to be intended Any other transformation which prejudices the condition or substance of the thing or its enjoyment by the others. Major changes (e.g. building a house; attached as encumbrance; selling) Requires the UNANIMOUS CONSENT OF ALL CO-OWNERS, because alteration constitutes an act of ownership and not administration. Consent may be obtained by express or implied A co-owner who made the alteration cannot ask share from other co-owner with the expenses EXCEPT if they expressly consented.

Liability of alteration without consent of other co owners: Punishments: Lose of what he has spent Be obliged to demolish the improvements done Be liable to pay for loses and damages the community property or the other co-owners may have suffered.

Article 492. For the administration and better enjoyment of the thing owned in common, the resolutions of the majority of the co-owners shall be binding.

There shall be no majority unless the resolution is approved by the co-owners who represent the controlling interest in the object of the co-ownership.

Should there be no majority, or should the resolution of the majority be seriously prejudicial to those interested in the property owned in common, the court, at the instance of an interested party, shall order such measures as it may deem proper, including the appointment of an administrator.

Whenever a part of the thing belongs exclusively to one of the co-owners, and the remainder is owned in common, the preceding provision shall apply only to the part owned in common. (398)

Known as acts of administration Administration- contemplate acts or decisions for the common benefit of all the co-owners and not for the benefit of only one or some of them. Distinguished from alteration, acts of administration have transitory (not for long duration) effects for the purpose of preservation, preparation and better enjoyment of the things which do not affect its essence nature or substance. Majority prevails Court can intervene in instance there is no majority resolution or if acts is seriously prejudicial to the interest of co-owners.

Article 493. Each co-owner shall have the full ownership of his part and of the fruits and benefits pertaining thereto, and he may therefore alienate, assign or mortgage it, and even substitute another person in its enjoyment, except when personal rights are involved. But the effect of the alienation or the mortgage, with respect to the co-owners, shall be limited to the portion which may be allotted to him in the division upon the termination of the co-ownership. (399)

Rights of each co-owner1) He shall have full ownership of his part2) He shall have full ownership of the fruits and benefits pertaining thereto3) He may alienate, assign, or mortgage his ideal interest or share independently of the other co-owners4) He may substitute another person in the enjoyment of his part except when personal rights are involved5) He may demand at any time the partition of the thing owned in common in so far is his share is concern.

Nature of right before partition All the co-owners has an IDEAL OR ABSTRACT QUOTA OR PROPORTIONATE SHARE in the entire property.

Legal right of redemption A co-owner is given right of redemption in case the shares of all the other co-owners or any of them are sold to a third person. The share of a co-owner may be attached. Redemption by a co-owner does not terminate the co-ownership not give him title to the entire property.

Renunciation of interest A co-owner may exempt himself from the obligation to contribute to the expenses of preservation of the thing or right owned in common and to the taxes by RENOUNCING HIS INTEREST equivalent to the expenses.

Sale or mortgage of common property A owner can sell his pro indiviso share of the fruits and other benefits. But the transferee only acquires a share and not a physical portion of the whole A sale can be valid as long as it has a condition that it only covers the property that might be assigned to him. The sale of a co-owner of the whole property as his own without the consent of his co-owners will make the sale valid up to his entire quota unless authorized by the other co-owners. A co-owner may substitute another thing of his undivided interest of another except when its personal rights. Personal right in this case is personal relations of the co-owners. (Property used as their house).

Article 494. No co-owner shall be obliged to remain in the co-ownership. Each co-owner may demand at any time the partition of the thing owned in common, insofar as his share is concerned.

Nevertheless, an agreement to keep the thing undivided for a certain period of time, not exceeding ten years, shall be valid. This term may be extended by a new agreement.

A donor or testator may prohibit partition for a period which shall not exceed twenty years.

Neither shall there be any partition when it is prohibited by law.

No prescription shall run in favor of a co-owner or co-heir against his co-owners or co-heirs so long as he expressly or impliedly recognizes the co-ownership. (400a)

Important Provision

Termination of Co-ownership-maybe terminated in1) By the consolidation or merger in only one of the co-owners of all the interests of the others. 2) By the destruction or loss of the co-owned property3) By acquisitive prescription in favor of a third person. 4) By partition5) By the termination of the period agreed upon by the donor or testator or allowed by law. 6) By the sale of the thing to third person.

PARTITION-is the division between two or more persons of real or personal property which they own in common so that each may enjoy and possess his sole estate to the exclusion of and without interference from the others.

The policy of the law is not to favor co-ownership. This provision grants co-owners the right to demand at any time partition of the thing owned in common. The action to partition is imprescriptible.

Exception to partition:1) When there is an agreement to keep the thing undivided (should not exceed ten years).2) When the partition is prohibited by the donor or testator (should not exceed twenty years)3) When partition is prohibited by law4) When the partition would render the thing unserviceable for the use for which it is intended. 5) When another co-owner has possessed the property as exclusive owner and for a period sufficient to acquire it by prescription.

EFFECTS OF REPUDIATION Prescription begins to run from time of repudiation for recovery of property.

Title may be claimed by prescription to the entire property by satisfying the following:1. He had performed unequivocal acts of repudiation of his co-owners amounting to their ouster2. The positive acts of repudiation have been made known to the other co-owners3. The evidence is clear and complete to establish prescription4. His possession is OPEN, CONTINUOUS, EXCLUSIVE AND NOTORIOUS.

Specific acts of repudiation1. Filing by a trustee of an action in court2. Issuance of the certificate of title3. Cancellation of title of co-owners and gets a new certificate in his own name.

Article 495. Notwithstanding the provisions of the preceding article, the co-owners cannot demand a physical division of the thing owned in common, when to do so would render it unserviceable for the use for which it is intended. But the co-ownership may be terminated in accordance with article 498. (401a)

Article 496. Partition may be made by agreement between the parties or by judicial proceedings. Partition shall be governed by the Rules of Court insofar as they are consistent with this Code. (402)

The issue of co-ownership should be resolved first in order to take effect a partition of properties. When judicial discretion is needed (parties cannot make up their mind)- partition is based on nearest equity.

Article 497. The creditors or assignees of the co-owners may take part in the division of the thing owned in common and object to its being effected without their concurrence. But they cannot impugn any partition already executed, unless there has been fraud, or in case it was made notwithstanding a formal opposition presented to prevent it, without prejudice to the right of the debtor or assignor to maintain its validity. (403)

Right to impugn partition1) If no notice is given, the creditors or assignees may question the partition already made2) If notice is given it is their duty to make appear their position3) They cannot impugn a partition already executed.

Article 498. Whenever the thing is essentially indivisible and the co-owners cannot agree that it be allotted to one of them who shall indemnify the others, it shall be sold and its proceeds distributed. (404)

Article 499. The partition of a thing owned in common shall not prejudice third persons, who shall retain the rights of mortgage, servitude or any other real rights belonging to them before the division was made. Personal rights pertaining to third persons against the co-ownership shall also remain in force, notwithstanding the partition. (405)

Article 500. Upon partition, there shall be a mutual accounting for benefits received and reimbursements for expenses made. Likewise, each co-owner shall pay for damages caused by reason of his negligence or fraud. (n)

Article 501. Every co-owner shall, after partition, be liable for defects of title and quality of the portion assigned to each of the other co-owners. (n)

Obligation of co-owners upon partition1) Mutual accounting for benefits, profits or income received for the fruits and other benefits of the things belong to all co-owners2) Mutual reimbursement for expenses3) Indemnity for damages because of negligence and fraud4) Reciprocal warranty for defects of title or quality of the portion assigned to a co-owner.

CHAPTER 2 RIGHT OF ACCESSION GENERAL PROVISIONS

SECTION 1-RIGHT OF ACCESSION WITH RESPECT TO WHAT IS PRODUCED BY PROPERTY

Article 440. The ownership of property gives the right by accession to everything which is produced thereby, or which is incorporated or attached thereto, either naturally or artificially. (353)

ACCESSION- the right of the owner of a thing, real or personal to become the owner of everything which is produced, incorporated or attached, either naturally or artifically.

This article does not apply to the public domain.

ACCESSION CAN BE-1) Building, planting or sowing2) Accession natural like alluvion 3) Avulsion4) Change of course of river 5) Formation of islands.

ACCESSORIES-are things joined to or included with the principal thing for the latters embellishment, better use or completion. Accessions are not mode of acquiring ownership

KINDS OF ACCESSION1) ACCESSION DISCRETA- is the extension of the right of ownership of a person to the products of a thing which belongs to such person. a) Natural Fruitsb) Industrial Fruitsc) Civil Fruits2) ACCESSION CONTINUA- extension of the right of ownership of a person to that which is incorporated or attached to a thing which belongs to such person. a) With respect to real propertyi) Accession industrial (Building planting or sowing)ii) Accession natural (alluvion, avulsion, change of river course and formation of islands)b) With respect to personal propertyi) Conjunction or adjunction(which may take place by inclusion or engraftment, soldadura or attachment, tejido or weaving, pintura or painting and escritura or writing.ii) Commixtion or confusioniii) Specification

Article 441. To the owner belongs: (1) The natural fruits; (2) The industrial fruits; (3) The civil fruits. (354)

Right of owner to the fruitsGEN RULE: All fruits belong to the owner of a thing. It may be in the form of damages suffered by the owner of a land.

Article 441 refers to accession discreta Accession discreta refers property BY ACCESSION TO EVERYTHING WHICH IS PRODUCED THEREBY. Exception Possession in Good faith by another- the possessor in good faith is entitled to the fruits received before the possession is legally interrupted. Usufruct Lease of rural lands Pledge Antichresis

Article 442. Natural fruits are the spontaneous products of the soil, and the young and other products of animals.

Industrial fruits are those produced by lands of any kind through cultivation or labor.

Civil fruits are the rents of buildings, the price of leases of lands and other property and the amount of perpetual or life annuities or other similar income. (355a)

Natural Fruits1) Spontaneous products of the soil2) The young and other products of animals

Standing trees being an integral part of the land are generally not fruits, they are immovables. The owner of a female cow is presumed to be the owner of its young by the right of accretion. -partus sequitur ventrem- except if there is a stipulation to the contrary.

Industrial fruits When it is cultivated or exploited

Civil fruits Rents of buildings Prices of leases of movable or immovable Amount of perpetual or life annuities or other similar income.

Article 443. He who receives the fruits has the obligation to pay the expenses made by a third person in their production, gathering, and preservation. (356)

Application- is when a planter sower buyer has fruits to the property The owner of the land must pay all NECESSARY EXPENSES (production, gathering and preservation) if the possessor is in good faith. (Concept of unjust enrichment) If he is in bad faith he can only be reimbursed for NECESSARY EXPENSE OF PRESERVATION OF THE LAND.

Article 444. Only such as are manifest or born are considered as natural or industrial fruits. With respect to animals, it is sufficient that they are in the womb of the mother, although unborn. (357)

1) Plants- deemed existing from the time the seedlings appear from the ground2) Fruits of trees- existing when they actually appear3) Animals-beginning of the gestation period. Womb of mother animal4) Fowls-beginning of incubation

SECTION 2: Right of Accession with Respect to Immovable Property Article 445. 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. (358)

Accession Continua Accession follows the principal Incorporation or union must be intimate-removal can cause substantial injury Effect of good faith and bad faith Good faith-exonerates a person from punitive liability Bad faith- may give rise to dire consequence. He has no right and may be liable for damages. Effect where both parties in bad faith-both will be considered in good faith. Owner of the land is subsidiary liable to owner of material.

Article 446. All works, sowing, and planting are presumed made by the owner and at his expense, unless the contrary is proved. (359)

Article 447. The owner of the land who makes thereon, personally or through another, plantings, constructions or works with the materials of another, shall pay their value; and, if he acted in bad faith, he shall also be obliged to the reparation of damages. The owner of the materials shall have the right to remove them only in case he can do so without injury to the work constructed, or without the plantings, constructions or works being destroyed. However, if the landowner acted in bad faith, the owner of the materials may remove them in any event, with a right to be indemnified for damages. (360a)

Rules that apply when the owner of the property uses the materials of another

1. Rights and liabilities of the owner of land who used materials of another: A. GOOD FAITH- the owner of the land becomes the owner of the materials but he shall pay their value. BUT the owner of the material can remove them if the removal can be done without injury to the plantin etc., B. BAD FAITH- the owner of the land becomes the owner of the materials but he shall be obliged: 1) to pay their value and 2) in addition to pay damages. BUT the owner of the materials may remove them if the removal may cause injury to the plantings.

2. Rights and liabilities of the owner of materials who acted in good faith:A. If the landowner acted in good faith, the owner of the materials is entitled to: Reimbursement for the value of the materials or To removal of the materials if the same can be done without injury to the plantingsB. If the landowner acted in bad faith, the owner of the materials is entitled To indemnification for damages To absolute right of removal whether or not injury would be caused. 3. Rights and liabilities of owners of materials who acted in bad faith Where the landowner is in good faith and the owner of materials is in bad faith, the latter would be liable for any CONSEQUENTIAL DAMAGES without right of removal whether not injury would be caused

Article 448. The owner of the land on which anything has been built, sown or planted in good faith, shall have the right to appropriate as his own the works, sowing or planting, after payment of the indemnity provided for in articles 546 and 548, or to oblige the one who built or planted to pay the price of the land, and the one who sowed, the proper rent. However, the builder or planter cannot be obliged to buy the land if its value is considerably more than that of the building or trees. In such case, he shall pay reasonable rent, if the owner of the land does not choose to appropriate the building or trees after proper indemnity. The parties shall agree upon the terms of the lease and in case of disagreement, the court shall fix the terms thereof. (361a)

Yvette Lim 2A (Property) 19