1.
Property Book 2 New Civil Code
Thing - broader in scope for it includes both
appropriable and non-appropriable objects.
There are three kinds of things, depending
on the nature of their ownership:
(a) res nullius (belonging to no one)
- These things belong to no one, and
the reason is that they have not yet
been appropriated
- i.e. fish 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
(b) res communes (belonging to everyone)
- 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
- i.e. air we breathe, the wind, sunlight,
and starlight.
(c) res alicujus (belonging to someone)
- 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.
- i.e. your book, your shares of stock, your
parcel of land
Property
- an object, is that which is, or may be,
appropriated.
- Considered as a subject or course in law,
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.
- involves not only material objects but also
intangible things, like rights or credits.
Characteristics of Property
(a) utility for the satisfaction of moral or
economic wants
(b) susceptibility of appropriation
(c) individuality or substantivity (i.e., it can
exist by itself, and not merely as a part of a
whole). (Hence, the human hair becomes
property only when it is detached from the
owner.)
Classifications of Property
OWNERSHIP
1) public dominion or ownership (like rivers)
2) private dominion or ownership (like a
fountain pen)
SUBSTITUTION
1) within the commerce of man (or which may
be the objects of contracts or judicial
transactions)
2) outside the commerce of man (like
prohibited drugs)
Capability of Substitution:
1) fungible (capable of substitution by other
things of the same quantity and quality)
2) non-fungible (incapable of such
substitution, hence, the identical thing must be
given or returned)
ALIENABILITY
1) present property (res existentes)
2) future property (res futurae)
DEPENDENCE
1) Principal
2) Accessory
EXISTENCE
1) present property (res existentes)
2) future property (res futurae)
NATURE
1) generic (one referring to a group or class)
2) specific (one referring to a single, unique
object)
MATERIALITY
1) tangible or corporeal (objects which can be
seen or touched, like the paper on which is
printed a P1,000 Bangko Sentral Note)
2) intangible or incorporeal (rights or credits, like
the credit represented by a P1,000 Bangko
Sentral Note)
MOBILITY
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.
(Article 414,NCC)
CUSTODY
1) in custodia legis (in the custody of the
court)when it has been seized by an
officer under a writ of attachment or
under a writ of execution. (De Leon v.
Salvador, L-30871, Dec. 28, 1970).
2) free property (not in custodia
legis).
IMMOVABLES
Article 415, NCC
 (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 there- from 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.
Classification of Real Property
(a) Real property by nature (like trees and plants)
(b) Real property by incorporation (like a building)
(c) Real property by destination or purpose (like
machinery placed by the owner of a tenement
on it for direct use in an industry to be carried
on therein)
(d) Real property by analogy (like the right of
usufruct, or a contract for public works, or
easements and servitudes, or sugar quotas
under Republic Act 1825 and Executive Order
873. (Presbitero v. Fernandez, L-19527, Mar.
30, 1963).
MOVABLES/PERSONAL
Article 416 and 417, NCC
(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 personality;
(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.
(5) Obligations and actions which have for their
object movables or demandable sums; and
(6) Shares of stock of agricultural, commercial and
industrial entities, although they may have real
estate.
Movable property is either
Consumable
movables which cannot be used in a
manner appropriate to their nature
without their being consumed
Non-Consumable
to the second class belong all the
others
(ART. 418, NCC)
Manresas Three Tests
(a) If the property is capable of being carried from
place to place (test by description);
(b) If such change in location can be made without
injuring the real property to which it may in the
meantime be attached (test by description); and
(c) If finally, the object is not one of those
enumerated or included in Art. 415, then the
inevitable conclusion is that the property is
personal property (test by exclusion). (3 Manresa
46-47).
Properties of Public Dominion
Those which are intended for public use
Those which belong to the State, without
being for public use but are:
intended for some public
service
for the development of
national wealth
Characteristics of Properties of Public Dominion
1. Outside the commerce of man
2. Cannot be acquired by prescription
3. Cannot be registered under the Land
Registration Law and be a subject of a
Torrens title
4. Cannot be levied upon by execution nor can
they be attached
5. In general, they can be used by everybody
6. Maybe a real or personal property
Patrimonial Property
 Property owned by the State but which is not
devoted to public use, public service or the
development of national wealth
Wealth owned by the State in its private, as
distinguished from public property
Maybe acquired through prescription
Property of the State that is no longer for
public use or public service
Property of Private Ownership
May be patrimonial property of the State,
provinces, cities and municipalities
All property belonging to private persons,
either individually or collectively
OWNERSHIP
The independent and general right of a person
to control a thing particularly in his
possession, enjoyment, disposition and
recovery, subject to no restrictions except
those imposed by the State or private
persons, without prejudice to the provisions of
the law.
Kinds of Ownership
Full ownership
Naked ownership
Sole ownership
Co-ownership
Full vs. Naked Ownership
FULL OWNERSHIP includes all the rights of
an owner
NAKED OWNERSHIP ownership where the
right to use and the fruits have been denied
NAKED OWNERSHIP + USUFRUCT = FULL
OWNERSHIP
FULL OWNERSHIP NAKED OWNERSHIP
= USUFRUCT
FULL OWNERSHIP USUFRUCT = NAKED
OWNERSHIP =
Rights of an Owner
RIGHT TO ENJOY
RIGHT TO POSSESS
RIGHT TO USE
RIGHT TO THE FRUITS
RIGHT TO DISPOSE
RIGHT TO CONSUME OR DESTROY
OR ABUSE
RIGHT TO ENCUMBER OR
ALIENATE
RIGHT TO RECOVER OR
VINDICATE
Rights of an owner (Under Roman Law)
JUS POSSIDENDI
RIGHT TO POSSESS
JUS UTENDI
RIGHT TO USE
JUS FRUENDI
RIGHT TO THE FRUITS
JUS ABUTENDI
RIGHT TO CONSUME (OR TRANSFORM
OR ABUSE)
JUS DISPONENDI
RIGHT TO POSSESS
JUS VINDICANDI
RIGHT TO RECOVER
Limitations on Ownership
THOSE GIVEN BY THE STATE OR LAW
THOSE GIVEN BY THE OWNER OR
GRANTEE HIMSELF
THOSE GIVEN BY THE GRANTOR WHO
GAVE THE THING TO THE PRESENT
OWNER
Doctrine of Self-Help
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.
Doctrine of State of Necessity
Art. 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.
See Justifying Circumstances (Art. 11, RPC)
Disputable Presumption of Ownership
Requirements to raise a disputable (rebuttable)
presumption of ownership:
Actual possession
Claim of ownership
Either movable or immovable
Requisites in an action for recovery:
Property must be identified
Owner should rely on the strength of
his title
Rights of Owner on Surface
Right of ownership of real property includes
ownership of surface, up to the boundaries of
the land, with the right to make allowable
constructions, plantings, excavations subject
to:
Servitudes & easements
Special laws - mining law
Ordinances
Reasonable requirements of aerial
navigation
 Principles of human relations and the
prevention of injury to the rights of 3rd
persons
Hidden Treasure
Hidden and unknown deposit
Consists of money, jewelry or other precious
objects
Their lawful ownership does not appear
Rights of Owner on Hidden Treasure
- Belongs to the owner of the land, building, or
other property on which it is found
- If found by chance on anothers property or
the state or any of its subdivisions,
to the finder, to landowner
None to the finder, if trespasser
Of interest to science or the arts, state may
acquire at a just price
ACCESSION
- One of the rights of an owner & one of the
attributes of ownership
- Presupposes a previously existing ownership
by the owner over the principal
Right to Own Everything
Produced thereby or fruits (Acession discreta)
Which is incorporated or attached thereto
(accession continua)
CLASSIFICATION OF ACCESSION
1. ACCESSION DISCRETA
TO THE OWNER BELONGS THE FRUITS:
NATURAL FRUITS spontaneous products
of the soil the young and other products of
animals including those in the womb yet
unborn
INDUSTRIAL FRUITS produced by lands of
any kind through cultivation or labor
- CIVIL FRUITS rents of buildings, the price of
leases of lands and other property, and the
amount of perpetual or life annuities or other
similar income
Rights to the Fruits
- Recipient of fruits produced, gathered &
preserved by 3rd person
o Obligation to pay only necessary but
not luxurious expenses
- Deemed manifest or existing
o Annual crops from seedlings
o Perennial crops when they appear
on trees
o Young of animals or if still in womb
o Owner of the mother/female
EXCEPTION:
Possessor in good faith
Usufructruary
Lessee get the fruits of the land
Contract of antchresis
2. ACCESSION CONTINUA REAL OR
PERSONAL PROPERTY
Rights of accession to immovables
Acession industrial
Building
Planting
Sowing
Accession natural
Alluvium
Avulsion
Change of course or rivers
Formation of islands
Rights of accession to movables
Adjunction or conjunction
Inclusion (engraftment)
Soldadura (attachment)
Tejido (weaving)
Pintura (painting)
Escritura (writing)
Mixture
Confusion (liquids)
Commistion (solids)
Specification
BASIS
for accession discreta (to the fruits) justice,
pure and simple, for one who owns a thing
should justly enjoy its fruits;
for accession continua (attachment or
incorporation) economic convenience is
better attained in a state of single ownership
than in a co-ownership. Moreover, natural
justice demands that the owner of the
principal or more important thing should also
own the accessory.
In general, the right to accession is automatic
(ipso jure), requiring no prior act on the part of
the owner of the principal.
BASIC PRINCIPLES IN ACCESSION CONTINUA
1. The owner of the land is the owner of all
accessions
2. Union must be in such a manner that
separation of the principal from accessory
would result in substantial injury to either
3. One in good faith may be held responsible
but should not be penalized
4. One in bad faith must be penalized
5. No one should enrich himsdelf unjustly at
the expense of others
6. Follow rule in pari delicto both in good
faith
Rights of an Owner in Accession Industrial
Owner of land owns all that is built, planted or
sown including all other improvements
 All works, sowing & planting are presumed to The process whereby the current of a river,
be made by the owner of the land creek or torrent segregates from an estate on
Owner of land who uses materials of another its bank a known potion of land and transfers
becomes owner of the materials - it to another estate
In good faith obliged to pay its value The removal of a considerable quantity of
Exception if materials can be earth upon or annexation to the land of
removed without injury or damage to another, suddenly & by the perceptible action
property then the owner of the of water or force of the river
materials can remove them Owner of trees uprooted may claim them
In bad faith - obliged to pay its value + within 6 months & after payment of necessary
damages expenses for gathering & preservation
Exception if the owner of the otherwise, ownership is transferred to the
materials decides to remove them owner of the land where the uprooted trees
even if the property would be may be cast
destroyed + payment of damages Alluvium vs. Avulsion
If there is a builder/sower in good faith ALLUVIUM AVULSION
Owner has a right to appropriate as
his own the works, sowing & planting THE DEPOSIT OF THE REMOVAL IS
after payment of the indemnity THE SOIL IS A SUDDEN OR
Or oblige the builder to pay for the GRADUAL ABRUPT
price of the land if the price is not PROCESS
considerably more than the price of
the construction or if the price is SOIL CANNOT BE SOIL IS
higher, then require the payment of IDENTIFED IDENTIFIABLE OR
reasonable rent VERIFIABLE
Or oblige the sower to pay the rent IT BELONGS TO IT BELONGS TO
In case there are three parties involved THE OWNER OF THE OWNER
landowner, builder & owner of materials THE PROPERTY FROM WHOSE
In bad faith loses right to be indemnified TO WHICH IT IS PROPERTY IT
& liable for consequential damages ATTACHED WAS DETACHED
In good faith entitled to reimbursement from UNTIL TWO
builder YEARS
Bad faith among landowner, builder & owner
of materials good faith Change of course of rivers
Rights of an Owner in Accession Natural o Ownership of abandoned river beds
To the owners of land adjoining banks of the belongs to the landowners whose
river belong the accretion which they lands are occupied by the new course
gradually receive from the effects of the in proportion to the area lost
current of the waters o Landowners adjoining the old river
Riparian owner owner of the land adjoining bed shall have the right to acquire it by
the river paying the value thereof but which
Alluvium shall not exceed the value of the area
Soil deposited or added to the lands occupied by the new bed
adjoining river banks and gradually New river bed on private estate
received as an effect of the current of o The new bed becomes of public
the waters. dominion
Essential requisites of alluvium River divides itself into branches
The deposit should be gradual & o Landowner becomes owner of the of
imperceptible the isolated property or the separated
Casue is the current of the river property
Current must be that of a river REQUISITES FOR CHANGE OF COURSE OF
River must continue to exist RIVERS TO APPLY:
Increase must be comparatively little 1. The change must be sudden in order that the
Avulsion old river may be identified
 2. The changing of the course must be more or SPECIFICATION
less permanent & not merely temporary Giving new form to anothers material thru the
flooding of anothers land application of labor & the material undergoes
3. The change of the river bed must be a natural a transformation or a change of identity
one Rules in specification: worker vs. Owner of
4. There must be definite abandonment by the material
government Worker in good faith
5. The river must continue to exist & must not Appropriates the new thing
completely dry up or disappear Must indemnify cost of materials used
Formation of islands Worker in bad faith
On the sea owned by the state if Owner can appropriate the work
within territorial waters or maritime without paying for labor or
zone Demand indemnity for the material +
High seas owned by the first country damages
to effectively occupy the same RIGHTS OF ACCESSION TO MOVABLE
On lakes, navigable or floatable rivers PROPERTY
owned by the state
ADJUNCTION MIXTURE SPECIFICATION
On non-navigable or non-floatable
rivers
Of nearer in margin to the INVOLVES INVOLVES MAY INVOLVE
bank owner of the nearer AT LEAST 2 AT LEAST 2 ONLY ONE
margin is sole owner THINGS THINGS THING (MAYBE
If equidistant the island shall MORE) BUT
be divided longitudinally in FORM IS
halves among the landowners CHANGED
nearer to the island, each
ACCESSORY CO- ACCESSORY
getting half
FOLLOWS OWNERSHIP FOLLOWS
PRINCIPAL VS. ACCESSORY
PRINCIPAL RESULTS PRINCIPAL
The principal is:
That to which the other has been
united as an ornament or for its use, THE THINGS THE THINGS THE NEW
or perfection JOINED MIXED MAY OBJECT
That of greater value RETAIN EITHER RETAINS OR
That of greater volume THEIR RETAIN OR PRESERVES
That which has greater merits from the NATURE LOSE THEIR THE NATURE
combined consideration of utility and NATURE OF THE
volume ORIGINAL
ADJUNCTION/CONJUNCTION OBJECT
- Process by which two movable things
belonging to different owners are united in CO-OWNERSHIP
such a way that they form a single object Rules of Ruinous Buildings and Trees in Danger
- Kinds of adjunction: of Falling
- Inclusion Any building, wall, column, or any other construction
- Soldering may be same metal or or large tree in danger of falling that may cause
different metals damage to anothers land or to travellers or any public
- Escritura - writing or private road:
- Pintura - painting Obligation of Owner
- Weaving to demolish, fell or remove the structure or
MIXTURE tree
Combination or union of materials where the to execute the necessary work in order to
respective identities of the component prevent it from falling.
elements are lost If Owner Fails to Comply:
Kinds of mixture: Administrative authorities may order demolition at
Conmixtion - solids the expense of owner or take measures to insure
Confusion liquids public safety
 Liability for Damages
Co-Ownership
Whenever the ownership of an undivided thing
or right belongs to different persons
The right of common dominion which two or
more persons have in a spiritual or ideal part
of a thing which is not physically divided
No Co-Ownership
There is no co-ownership when the different
positions owned by different people are
already concretely determined and
identifiable, even if not yet technically
described
Characteristics of Co-Ownership
It is not a juridical person
Possession of a co-owner is like that of a
trustee and shall not be regarded as adverse
to the other co-owners but in fact as beneficial
to all of them
It cannot sue in court
Co-owners may only litigate in their individual
capacities
Sources of Co-Ownership
1. LAW
2. CONTRACT
3. CHANCE
4. OCCUPATION
5. WILL OR SUCCESSION
Share in Co-Ownership
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.
Right over the thing owned in common
1) 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
2) The PURPOSE of the co-ownership may be
changed by agreement, express or Implied.
3) Any one of the co-owners may bring an ACTION
for ejectment
4) Each co-owner shall have a right to COMPEL the
other co-owners to contribute to the EXPENSES for
preservation of the thing or right owned in common
and tot the taxes
5) Any one of the co-owners may EXEMPT himself
from the obligation to contribute by renouncing so
much of his undivided interest as may be equivalent
to his share of the expenses and taxes but NO
WAIVER shall be made if it is prejudicial to the co-
ownership
6) 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.
7) Expenses to IMPROVE OR EMBELLISH the thing
shall be decided upon by a MAJORITY
8) 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 WITHOLDING
of the consent by one or more of the co-owners is
clearly prejudicial to the common interest, the courts
may afford adequate relief.
9) Each co-owner shall have the full ownership of his
part and 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.
Acts of Administration/Management
(a) that do not involve an alteration;
(b) those that may be renewed from time to time;
(c) those that have transitory effects, that is, do not
bind the co-ownership for a long time in the future;
(d) those that do not give rise to a real right over the
thing owned in common;
(e) those, which even if called an alteration, do not
affect the substance or nature of the thing);
(f) those for the common benefit of all the co-owners
and not for only one or some of them.
Rules of Perpendicular Ownership
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.
Partition in Co-Ownership
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.
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.
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.
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.
Legal Partition in Ownership
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.
Procedure for the Legal Partition
(a) First, give the whole to one co-owner who will
now be required to indemnify the rest.
(b) If this is not agreed upon (as when nobody wants
to get it, or more than one desire it), there must be a
sale PUBLIC sale, such as an auction or a PRIVATE
sale) where strangers are allowed to purchase.
The procedure applies whether the property is
real or personal. (See Garcia de Lara v.
Gonzales de Lara, 2 Phil. 294).
There is no right of legal redemption here for
the co-ownership has ceased.
Effect of Partition
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.
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.
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.
How Co-Ownership is Extinguished
1. judicial partition
2. extrajudicial partition
3. when by prescription, one co-owner has
acquired the whole property by adverse
possession as against all the others, and
repudiating unequivocally the co-ownership of
the other
4. when a stranger acquires by prescription the
thing owned in common
5. merger in one co-owner
6. loss or destruction
7. expropriation (here the indemnity will be
distributed accordingly).