24634687 PROPERTY Syllabus Labitag 1st Sem 2009 2010

PROPERTY – Prof. Labitag of 48

TABLE OF CONTENTS

I. DEFINITION OF PROPERTY............................................................................3A. Classification under the Civil Code...........................................................................................................3B. By Ownership..........................................................................................................................................4C. Other Classifications................................................................................................................................5

II. OWNERSHIP...........................................................................................7A. Definition.................................................................................................................................................7B. Bundle of Rights included in Ownership...................................................................................................7C. Other Specific Rights found in the Civil Code...........................................................................................7D. Limitations of Real Right of Ownership....................................................................................................8

III. RIGHTS OF ACCESSION.............................................................................10A. Concept.................................................................................................................................................10B. General Principles of Accession.............................................................................................................10C. Obligations of Receiver of Fruits to Pay Expenses by 3rd person in producti on, gathering and preservation..................................................................................................................................................10D. Kinds of Accession.................................................................................................................................10

1. Accession Discreta.............................................................................................................................102. Accession Continua............................................................................................................................11

Over Immovables..................................................................................................................................11Over Movables.......................................................................................................................................12

IV. QUIETING OF TITLE.................................................................................14A. Differences between Action to Quiet Title and Action:...........................................................................14B. Prescription of Action to Quiet Title.......................................................................................................14C. Who are Entitled to Bring Action?..........................................................................................................14D. Notes.....................................................................................................................................................14

V. CO-OWNERSHIP.....................................................................................15A. Definition...............................................................................................................................................15B. Characteristics of co-ownership.............................................................................................................15C. Differences between Co-ownership and Joint Tenancy...........................................................................15D. Differences between Co-ownership and Partnership..............................................................................15E. Source of Co-ownership.........................................................................................................................15F. Rights of each co-owner as to the thing owned in common...................................................................16G. Implications of co-owners right over his ideal share..............................................................................17H. Rules on co-ownership not applicable to conjugal partnership of gains or absolute community of property........................................................................................................................................................18I. Special rules on co-ownership from provisions of Condominium Law (Act No. 4726).............................18J. Extinguishment of co-ownership............................................................................................................18

VI. POSSESSION........................................................................................20A. Definition and Concept..........................................................................................................................20B. Essential Requisites of Possession.........................................................................................................20C. Degrees of Holding of Possession..........................................................................................................20D. Cases of Possession...............................................................................................................................20E. What things or rights may be possessed...............................................................................................20F. What may not be possessed by private persons....................................................................................21G. Acquisition of Possession.......................................................................................................................21H. Effects of Possession.............................................................................................................................22I. Effect of possession in the concept of an owner....................................................................................23J. Presumptions in favor of the possessor.................................................................................................23K. Possession may be lost by.....................................................................................................................24

VII. USUFRUCT.........................................................................................25A. Concept.................................................................................................................................................25B. Historical considerations........................................................................................................................25C. Characteristics of Usufruct.....................................................................................................................25D. Usufruct distinguished from lease; from servitude.................................................................................25E. Classes of Usufruct................................................................................................................................25F. Rights of Usufruct..................................................................................................................................26G. Rights of Naked Owner..........................................................................................................................26H. Obligations of Usufructuary...................................................................................................................27I. Special Cases of Usufruct......................................................................................................................28J. Extinguishment of Usufruct...................................................................................................................28


VIII. EASEMENTS OR SERVITUDES.....................................................................31A. Definition...............................................................................................................................................31B. Essential feature of easements/real servitudes/praedial servitudes.......................................................31C. Classification of Servitudes....................................................................................................................31D. General rules relating to servitudes.......................................................................................................32E. Modes of acquiring easements..............................................................................................................32F. Rights and obligations of owners of dominant and servient estates......................................................32G. Modes of extinguishment of easements................................................................................................33H. Legal Easements...................................................................................................................................34

BOOK III – DIFFERENT MODES OF ACQUIRING OWNERSHIP..........................................36Mode and Title Differentiated........................................................................................................................36Modes of Acquiring Ownership......................................................................................................................36Occupation....................................................................................................................................................37Intellectual creation......................................................................................................................................37

DONATION..............................................................................................38Nature of donation........................................................................................................................................38Requisites of donation...................................................................................................................................38Kinds of donation..........................................................................................................................................38Who may not give or receive donations........................................................................................................39Who may give or receive donations..............................................................................................................39Acceptance of donation.................................................................................................................................39Form of donations.........................................................................................................................................39What may be donated...................................................................................................................................39Effect of donation..........................................................................................................................................40Revocation and Reduction of Donations........................................................................................................41

LEASE..................................................................................................44A. General characteristics of every lease...................................................................................................44B. Kinds of leases.......................................................................................................................................44C. Lease of things......................................................................................................................................45

Lease of things


I. DEFINITION OF PROPERTYPROPERTY

• Is an economic concept, meaning a mass of things useful to human activity and which are necessary to life, for which reason they may be organized and distributed in one way or another, but, always for the good of the main.

• In order that a thing may be considered as property: ○ Utility – capacity to satisfy human wants○ In dividuality or Substantivity - an autonomous or separate existence; materials composing a

thing are not thing in themselves. ○ Appropriability or susceptibility to appropriation

A. Classification under the Civil Code

1. Immovable or Real Property

a. By Nature – those which cannot be moved from place to place

Art 415, Par 1 Lands, buildings, roads and constructions of all kinds adhered to the soil. Art 415, Par 8

b. By Incorporation

Art 415, Par 2Art 415, Par 3Art 415, Par 7

c. By Destination

Art 415, Par 4Art 415, Par 5Art 415, Par 6Art 415, Par 9

d. By Analogy

Art 415, Par 10

Movables or Personal Property

Art 416Art 417

DAVAO SAWMILL v CASTILLO ()BERKENKOTER v CU UNJIENG ()LOPEZ v OROSA ()TUMALAD v VICENCIO ()ASSOCIATED INSURANCE v IYA ()MAKATI LEASING v WEAREVER ()BD. OF ASSESSMENT APPEALS v MERALCO ()MERALCO v BD. OF ASSESSMENT APPEALS ()MERALCO v BD. OF ASSESSMENT APPEALS ()CALTEX v BD. OF ASSESSMENT APPEALS ()BENGUET CORP. v BD. OF ASSESSMENT APPEALS ()

1. Importance and Significance of ClassificationFrom point of view of:

i. Criminal Lawii. Form of contracts involving movables or immovables


iii. Prescriptioniv. Venue/Jurisdiction v. Taxation vi. Double Sales under Art 1544

Art 1544vii. Preference of Creditsviii. Causes of Action to Recover

1. Differences between Real Rights and Personal Rights

Point of comparison

REAL RIGHTS PERSONAL RIGHTS

Definition Power belonging to a person over a specific thing, without a passive subject individually determined against whom such right may be personally exercised

Power belonging to one person to demand to another, as a definite passive subject, the fulfillment of a prestation to give, to do or not to do

Gives to a person direct and immediate juridical power over the thing, which is susceptible of being exercised, not only against a determinate person, but against the whole world.

More properly called “right of obligation” or simply “obligation”

Elements 1) Subject and object connected by a relation of ownership of the former over the latter

2) A general obligation or duty of respect for such relation, there being no particular passive subject

3) Effective actions recognized by law to protect such relation against anyone who may want to disturb it

1) Two subjects: active and passive (bound to perform prestation incumbent upon him by reason of a juridical tie which binds him to the active subject), who are determined and specified

2) General obligation on the part of 3rd

persons to respect the relation between the active and passive subjects

3) Effective actions in favor of the active subject against the passive subject for the performance of the prestation by the latter or so that the relation between them may produce its natural and juridical effects

Also known as Jus in re Jus ad rem

Number of persons involved in the juridical relation

Active subject – 1Passive subject - the rest of the world without individual determination

Definite active subjectDefinite passive subject

Object of the juridical relation

Generally a corporeal thing Intangible thing, i.e. the prestation of the debtor

By the manner in which the will of the active subject affects the thing related o it

Generally affects the thing directly Indirectly through the prestation of the debtor

By the causes of By mode and title By title alone


creating the juridical relation

By the methods of extinguishment of the juridical relation

Extinguished by the loss or destruction of the thing

Not extinguished by the loss or destruction of the thing

By the nature of the actions arising from them

A.Classification by Ownership

1. Res Nullius

2. Public Dominion cf. Patrimonial Property of State

Art 419Art 420Art 421Art 422Art 424

a. Property of State

Art 420Art 421Art 422

i. For public useii. For public serviceiii. For development of national wealth

LA BUGAL B’LAAN TRIBAL ASSN. v RAMOS (2004)ON RECONSIDERATION (2005)

CHAVEZ v PEA AMARI (2002)ON RECONSIDERATION (2003)

USERO v CA (2006)

a. Property of Municipal Corporations

Art 424, Par 1

i. For public use including public works for public service

1. Private Property

a. Patrimonial Property of StateArt 424

b. Patrimonial Property of Municipal CorporationsArt 424, Par 2

c. Private Property of Private PersonsArt 425, Par 2


TANTOCO v MUNICIPAL COUNCIL ()ZAMBOANGA DEL NORTE v CITY OF ZAMBOANGA ()SALAS v JARENCIO ()CEBU ACETYLENE v BERCILLES ()MUNICIPALITY OF SAN MIGUEL v FERNANDEZ ()GOVERNMENT v CABANGIS ()CHAVEZ v PEA AMARI (2002)ON MOTION FOR RECONSIDERATION (2003)

1. Effect and Significance of Classification of Property as Property of Public Dominion

a. Property is outside the commerce of manb. Property cannot be the subject of acquisitive prescriptionc. Property cannot be attached or levied upon in execution d. Property cannot be burdened with a voluntary easement

A.Other Classifications

1. By their physical existencea. Corporeal – those which are manifest to the senses, which we may touch or take, which exist

in space and have a body, whether animate or inanimateb. Incorporeal – personal prestations or acts or services productive of utility. They are not

manifest to the senses but are conceived only by the understanding. They must combine three requisites:

i. External – manifested actii.Personal – done by the debtor himselfiii.Possible – when it can be done both in nature and in law

2. By their autonomy or dependencea. Principalb. Accessory

3. By their subsistence after usea. Consumable

Art 418 (1)b. Non-consumable

Art 418Differentiated from Fungible or Non-fungible

c. Deteriorable or non-deteriorable

4. By reason of their susceptibility to divisiona. Divisibleb. Indivisible

5. By reason of designation a. Genericb. Specific

6. Existence in point of timea. Present b. Future

7. Contents and constitutiona. Singular

i. Simpleii.Compound

b. Universal

8. Susceptibility to appropriationa. Non-appropriableb. Appropriable

i. Already appropriatedii.Not yet appropriated


9. Susceptibility to commercea. Within the commerce of manb. Outside the commerce of man


II. OWNERSHIP A. Definition

OWNERSHIP • J. B. L. Reyes: It is independent right of exclusive enjoyment and control of a thing for the purpose of

deriving therefrom all the advantages required by the:○ Reasonable needs of the owner (or holder of the right) and ○ Promotion of the general welfare

But subject to the restrictions imposed by: ○ Law○ Rights of others

• Scialoja: It is a relation in private law by virtue of which is a thing (or property right) pertaining to one person is completely subjected to his will in everything not prohibited by public law or the concurrence with the rights of another

A.Bundle of Rights included in Ownership

Art 429

Jus Utendi• definition

Jus Fruendi• definition

Jus Abutendi• definition

Jus Disponendi • definition

Jus Vindicandi• definition

A.Other Specific Rights found in the Civil Code

1. Right to exclude; self-help; Doctrine of Self-helpArt 429ELEMENTS OF SELF-HELP

2. Right to enclose or fenceArt 430

3. Right to receive just compensation in case of expropriationArt 435

4. Right to hidden treasureArt 438Art 439

5. Right to accessionArt 440

6. Right to recover possession and/or ownership (Jus Vindicandi)

a. Available actions to Recover Possession/Ownership

i. Immovable property


1) Accion reivindicatoria2) Accion publiciana3) Forcible entry4) Unlawful detainer

HILARIO v SALVADOR (2005)SAMPAYANG v CA (2005)SANTOS v AYON (2005)GANILA v CA (2005)ROSS RICA SALES CENTER v SPS. ONG (2005)PERALTA-LABRADOR v BUARIN (2005)

ii.Movable property 1) Replevin

b. Requisites for recoveryArt 434

i. Identify the property

SERINA v CABALLERO (2004)

ii. Prove his right of ownership – rely on the strength of his evidence not on the weakness of defendant

PEREZ v MENDOZA (1975)DIZON v CA (1993)

A. Limitations of Real Right of Ownership

1. General Limitation

a. Police powerb. Taxationc. Eminent domain

2. Specific Limitation

3. Limitation from Scattered provisions of CC

Art 431Art 432Art 2191Art 670Art 677Art 678Art 679Art 649Art 652Art 637Art 676Art 644Art 684Art 685Art 686Art 687

US v CAUSBY ( )

LUNOD v MENESES ( )

a. Latin Maxim: Sic Utere Tuo Ut Alienum Non LaedasArt 431

b. Act in State of Necessity


Art 432


III. RIGHTS OF ACCESSIONA. Concept

Art 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.

DEFINITION S OF ACCESSION • Tolentino: Right by virtue of which the owner of a thing becomes the owner of everything that the

thing may produce or which may be inseparably united or incorporated thereto, either naturally or principally.

• J. B. L. Reyes: Extension of ownership over a thing to whatever is incorporated thereto naturally or artificially (without or with labor of man)

– Incorporation means a stable union or adherence, not mere juxtaposition– Accession is one of the bundle of rights of ownership and is not a mode of acquiring property– It does not depend upon a new title

A. General Principles of Accession

1. Applicable to BOTH accession discreta and accession continua

a. Accessory follows the principalb. No one shall be unjustly enriched at the expense of another

1. Applicable to accession continua alone

a. Whatever is built, planted or sown on the land of another and the improvements or repairs made thereon, belongs to the owner of the land, subject to the provisions of the following articles.Art 445

b. All works, sowing and planting are presumed made by owner and at his expense, unless the contrary is proved.Art 446

c. Accessory incorporated to principal such that it cannot be separated without injury to work constructed or destruction to plantings, construction or works. Art 447

d. Bad faith involves liability for damages and other dire consequences.

e. Bad faith of one party neutralizes bad faith of the other. Art 453

1. Applicable to accession discreta alone

a. Ownership of fruits – To owner of principal thing belongs the NATURAL, INDUSTRIAL and CIVIL fruits Art 441

EXCEPTIONS: i. Possession in good faithii. In usufructiii.In leaseiv.In antichresis

A.Obligations of Receiver of Fruits to Pay Expenses by 3rd person in production, gathering and preservation

Art 443


B. Kinds of Accession

1. Accession Discreta (Fruits)

Art 440

a. Naturalb. Industrialc. Civil

BACHRACH v SEIFERT ( )BACHRACH v TALISAY ( )

1. Accession Continua

Over Immovables

1. Artificial or Industrial – Building, Planting, Sowing

a. Owner is BPS using material of another (LO-BPS and MM)Art 447

• In good faith • In bad faith

a. BPS builds, plants or sows on another’s land using his own material (LO and BPS-MM)Art 448 The Art 449 The Art 450 The Art 451 The Art 452 The Art 453 The Art 454 The

• BPS in good faithArt 448 The

• BPS in bad faithArt 449 The Art 450 The Art 451 The

i. Options open to owner of the land

1) To acquire building, planting and sowing BP has right of retention

– Retains possession without paying rental– Not entitled to fruits; his rights are the same as an antichretic creditor

1) To sell land to BP OR to lease land to S BP may refuse if value of land considerably more than BP; then forced lease by LO and

BP BPS in bad faith

i. Rights of BPS in bad faithArt 452 The Art 443 The

Landowner in bad faith but BPS in good faithArt 454Art 447 Reason for adverting to rule in Art 447

a. BPS builds, plants or sows on another’s land with materials owned by 3rd persons


Art 455 The

N.B.: Good faith does not exclude negligenceArt 456 The

BERNARDO v BATACLAN ( )IGNACIO v HILARIO ( )SARMIENTO v AGANA ( )DEPRA v DUMLAO ( )TECHNOGAS PHIL v CA ( )ORTIZ v KAYANAN ( )GEMINIANO v CA ( )PLEASANTVILLE DEV’T CORP v CA ( )FELICES v IRIOLA ( )SPOUSES NUGUID v CA (1993)SPOUSES NUGUID v CA (2005)

1. Natural (Accession Continua Natural)

a. AlluviumArt 457 The

REPUBLIC v CA ( )GRANDE v CA ( )MENESES ( )

b. Avulsion (Art 459-460)

NAVARRO ( )

c. Change of Course of River (Art 461-463)Art 461 TheArt 462 TheArt 463 The

BAES v CA ( )BINALAY v MANALO

d. Formation of IslandsArt 461 TheArt 462 TheArt 463 TheArt 464 TheArt 465 TheSee PD 1067 , Water Code

1. Reverse Accession Art 120, FC TheArt 321, CC The

Over Movables

1. Conjunction and Adjunction

a. Inclusion or Engraftment

b. Soldadura or Solderingi. Plumbatura – different metalsii. Ferruminatio – same metal

a. Tejido or Weaving

b. Escritura or Writing


c. Pintura or Painting

1. Commixtion and Confusion

SIARI VALLEY ESTATES v LUCASAN (1955)SANTOS v BERNABE ()

2. Specification


IV. QUIETING OF TITLEA.Differences between Action to Quiet Title and Action:

Action to Quiet Title Action to Remove a Cloud

Action to Quiet Title Action to Prevent a Cloud

B. Prescription of Action to Quiet Title • If plaintiff is in possession: imprescriptible• If plaintiff is not in possession: prescribes within period of filing accion publiciana, accion

reivindicatoria

OLVIGA v CA (1993)PINGOL v CA (1993)

A. Who are Entitled to Bring Action?Rule 64, Sec. 1, Par 2, Rules of Court The

B. Notes

1. There is a cloud on title to real property or any interest to real property. Art 476 The

2. Plaintiff has legal or equitable title to or interest in the subject/real property.

3. Instrument record claim, etc must be valid and binding on its face, but in truth and in fact, invalid, ineffective, voidable or unenforceable.

4. Plaintiff must return benefits received from defendant.

TITONG v CA (1998)

5. Actions to quiet title are proceedings quasi in rem.

SPS. PORTIC v CRISTOBAL (2005)


V. CO-OWNERSHIPA. Definition

CO-OWNERSHIP • The right of common dominion which two or more persons have a spiritual part (or ideal portion) or a

thing which is not physically divided.

A.Characteristics of co-ownership

1. There is plurality of owners, but only one real right of ownership. 2. The recognition of ideal shares, defined but not physically identified.3. Each co-owner has absolute control over his ideal share.4. Mutual respect among co-owners in regard to use and enjoyment and preservation of thing as a whole.

PARDELL v BARTOLOME ( )

A. Differences between Co-ownership and Joint Tenancy

Co-ownership Joint Tenancy

B.Differences between Co-ownership and Partnership

Co-ownership Partnership

GATCHALIAN v COLLECTOR ( )

C. Source of Co-ownership

1. Law

i. Cohabitation Art 147, FCArt 148, FC Art 90

ii. PurchaseArt 1452

iii. Succession • Intestate: Art 1452• Testate: Property is given to 2 or more heirs

i. DonationArt 753Art 573, 2 nd Par

ii. ChanceArt 472

SIARI VALLEY ESTATE v LUCASAN ()

iii. Hidden treasure


Art 348

iv. Easement of party wallArt 658

v. Occupation

PUNZALAN v BOON LIAT ( )

vi. Condominium Law Sec 6 (c), RA 4726

1. Contracts

a. By agreementDuration of co-ownership: Art 494

b. Universal partnership Art 1778Art 1779Art 1780

c. Associations and societies with secret articlesArt 1775

A.Rights of each co-owner as to the thing owned in common

1. To use the thing according to the purpose intended may be altered by agreement, express or implied, provided:

a. It is without injury or prejudice to interest of co-ownership and; b. Without preventing the use of other co-owners

Art 486

PARDELL v BARTOLOME ( )

2. To share in the benefits in proportion to his interest, provided the charges are borne by each in the same proportionArt 485

• Contrary stipulation is void• Presumption is that portions are equal unless contrary is proved

1. Each co-owner may bring an action in ejectment Art 487

RESUENA v CA (2005)ACABAL v ACABAL (2005)

2. To compel other co-owner to contribute:a. to expenses for preservation of the thing or right owned in common b. to payment of taxes

Art 488

• Co-owner’s option not to contribute by waiving his undivided interest equal to amount of contribution – dacion en pago

Exception: if waiver is prejudicial to co-ownership • Requisites before repairs for preservation may be made or expenses for embellishment or

improvement may be madeArt 489

• Effects of failure to notify co-owners

1. To oppose any act of alteration

Remedy of other co-owners re acts of alteration


Art 491

ACTS OF ALTERATION

a. Concept• Any change injurious to the thing owned in common or to the rights of other co-owners or • Any change material to the use, destination or state of thing which act is in violation of the

express or tacit agreement of the co-owners

a. Distinguished from acts of administration Art 492

Acts of Alteration Acts of Administration

b. Effect of acts of alteration and remedies of non-consenting co-owner

QUERY: Is lease of real property owned in common an act of alteration? Art 647 in relation to Art 1878 (8)

2. To protect against acts of majority which are prejudicial to minorityArt 492, 3 rd Par

LAVADIA v COSME ()MELENCIO v DY TIAO LAY ()TUASON v TUASON ()

3. To exercise legal redemption Art 1620Art 1623

MARIANO v CA ()VERDAD v CA ()

4. To ask for partitionArt 494

RAMIREZ v RAMIREZ ()AGUILAR v CA (1993)VDA DE APE v CA (2005)

5. Other cases where legal right of redemption is given Art 1621Art 1622

HALILI v CA (1998)FRANCISCO v BOISER (2000)

A. Implications of co-owners right over his ideal share

1. Co-owner has the right:

a. To share in fruits and benefitsb. To alienate, mortgage or encumber and dispose of his ideal share

BUT: Other co-owners may exercise right of legal redemption c. To substitute another person in the enjoyment of thingd. To renounce part of his interest to reimburse necessary expenses incurred by another owner

Art 488

1. Effect of transaction by each co-owner

a. Limited to his share in the partition


b. Transferee does not acquire any specific portion of whole property until partition c. Creditors of co-owners may intervene in partition or attack the same if prejudicial

Art 499EXCEPT that creditors cannot ask for rescission even if not notified in the absence of fraudArt 497

CARVAJAL v CA ()PAMPLONA v MORETO ()CASTRO v ATIENZA ()ESTOQUE v PAJIMULA ()DIVERSIFIED CREDIT v ROSADO ()PNB v CA ()

A. Rules on co-ownership not applicable to conjugal partnership of gains or absolute community of property

B. Special rules on co-ownership of different stories of a house as differentiated from provisions of Condominium Law (Act No. 4726)

1. Concept of Condominium

2. Essential requisites for Condominium

3. Rights and obligations of Condominium owner

SUNSENT VIEW CONDOMINIUM v JUDGE CAMPOS (1981)

A. Extinguishment of co-ownership

1. Total destruction of thing

2. Merger of all interests in one person

3. Acquisitive prescription

a. By a third personb. By one co-owner as against the other co-owners

• REQUISITES - Unequivocal acts of:i. Unequivocal acts of repudiation of co-ownership (acts amounting to ouster of other co-

owners) known to other co-owners and shown by clear and convincing evidenceii. Open and adverse possession, not mere silent possession for the required period of

extraordinary acquisitive prescriptioniii. The presumption is that possession by co-owner is not adverse

CAPITLE v DE GABAN (2004)

1. Partition or division

a. Right to ask for partition at any time, EXCEPT:

i. When there is a stipulation against it (should not be over 10 years)Art

ii. When condition of indivision is imposed by transferor (donor or testator) not exceeding 20 yearsArt 494

iii. When the legal nature of community prevents partition (party wall)Art

iv. When partition is generally prohibited by law E.g. absolute community of property


v. When partition would render the thing unserviceable (but the thing may be sold and co-owners divide the proceeds) Art 494

Action for partition will fail if acquisitive prescription has set in

a. Effect of partition Art 1091Art 543Art 1092Art 1093Art 499Art 500Art 501

b. Right of creditors of individual co-ownersArt 497

c. Procedure for partition Rule 69, Rules of Court


VI. POSSESSIONA. Definition and Concept

POSSESSION• Is the holding of a thing OR the enjoyment of a right, whether by material occupation or by the fact

that the thing or the right is subjected to the action of our will• It is a real right independent of and apart from ownership i.e. the right of possession (jus possessionis)

as distinguished from the right to possess (jus possidendi)

A. Essential Requisites of Possession

1. Holding or control of a thing or right (corpus) consists of either

a. The material or physical holding or occupation eitherb. Exercise of a rightc. Constructive possession (intention to possess is very crucial)

RAMOS v DIRECTOR OF LANDS ( )DIRECTOR v CA ( )

1. Intention to possess (animus possidendi)

A.Degrees of Holding of Possession

1. Mere holding or possession without title whatsoever and in violation of the right of the owner E.g. possession of a thief/robber or a usurper of land

2. Possession with a juridical title, but not that of ownership E.g. possession of tenant, depository agent, bailee, trustee, lessee, antichretic creditor. • This degree of possession will never ripen into full ownership as long as there is no repudiation

of concept under which property is held.

1. Possession with a just title or title sufficient to transfer ownership, but not from the true ownerE.g. possession of a vendee from vendor who pretends to be the owner• This degree of possession ripens into full ownership by lapse of time.

1. Possession with a just title from the true owner • The delivery of possession transfers ownership, and strictly speaking, is the jus possidendi.

A.Cases of Possession

1. Possession for oneself or possession exercised in one’s own name and possession in the name of another Art 524

2. Possession in the concept of an owner and possession in the concept of a mere holder with the ownership belonging to anotherArt 525

3. Possession in good faith and possession in bad faithArt 526

PLEASANTVILLE DEV’T CORP v CA ( )

a. Mistake upon a doubtful or difficult question of law as a basis of good faith

KASILAG v ROQUE (1939)


A. What things or rights may be possessed

Art 530 Only things or rights susceptible of appropriation may be the object of possession

B. What may not be possessed by private persons

1. Res Communes

2. Property of public dominion

3. Right under discontinuous and/or non-apparent easement

A.Acquisition of Possession

1. Ways of acquiring possession Art 531

a. Material occupation of the thing

b. Subject to the action of our willi. Doctrine of constructive possessionii. Includes constructive delivery

1) Traditio brevi manu – thing is already in transferee’s hands • E.g. under a contract of lease, then delivered under a sale

1) Traditio constitutum possessorium – thing remains in transferor’s hands• E.g. sale, then retained under a commodatum

a. Proper acts and legal formalities• Refers to the acquisition of possession by:

– Sufficient title– Inter vivos– Mortis causa– Lucrative or onerous

• Includes traditio longa manu and tradition simbolica, donations, succession (testate or intestate), contracts, judicial writs of possession, writ of execution of judgments, execution and registration of public instruments

BANCO ESPANOL FILIPINO v PETERSON ( )

1. By whom possession be acquired Art 532

a. By same personELEMENTS OF PERSONAL ACQUISITION

b. By his legal representativesREQUISITES

c. By his agent

d. By any person without any power whatsoever but subject to ratification, without prejudice to the proper case of negotiorum gestioArt 2144Art 4129Art 2150

e. Qualifiedly, minors and incapacitated persons Art 535

1. What do not affect possession Art 537Art 1119


a. Acts merely toleratedArt 537

MACASAET v MACASAET (2004)

b. Acts executed clandestinely and without the knowledge of the possessorArt 537

c. Acts by violence as long as possessor objects thereto (i.e. he files a case) Art 536

CUAYCONG v BENEDICTO ()ASTUDILLO v PHHC ()PERAN v CFI ()

1. Rule to solve conflict of possession Art 538

GENERAL RULE: Possession cannot be recognized in two different personalities.EXCEPTION: In cases of co-possession by co-possessors without conflicting claims or interest

In case of conflicting possession, preference is given to: a. Present possessor or actual possessorb. If there are 2 or more possessors, the one longer in possession c. If dates of possession are the same, the one who presents a titled. If all conditions are equal, the thing shall be placed in judicial deposit pending determination of

possession or ownership through proper proceedings

A. Effects of Possession

1. In general, every possessor has a right to be respected in his possession; if disturbed therein, possessor has right to be protected in or restored to said possession Art 539

a. Actions to recover possession

i. Accion interdictal or Summary proceedings – forcible entry and unlawful detainer– Plaintiff may ask for writ of preliminary mandatory injunction – Within 10 days from the filing of complaint in forcible entry

Art 539

YU v HONRADO ( )

i. Accion publiciana – based on superior right of possession, not ownership

ii. Accion reivindicatoria – recovery of ownership, including the right to possess

iii. Action for replevin – possession or ownership for movable property

a. Lawful possessor can employ self-help Art 429

1. Entitlement to fruits – possessor in good faith/bad faithArt 544Art 549

2. Reimbursement for expenses – possessor in good faith/bad faith• Liability for loss or deterioration of property by possessor in bad faithArt 553Art 552


1. Possession of movable acquired in good faith (in concept of owner) is equivalent to titleArt 559• Possessor has actual title which is defeasible only by true owner• One who has lost a movable or has been unlawfully deprived thereof may recover it but without

reimbursement EXCEPT: If possessor acquired it at a public sale

A. Effect of possession in the concept of an owner

1. Possession may by lapse of time ripen into full ownership, subject to certain exceptions.

2. Presumption of just title and cannot be obliged to show or prove itArt 541EXCEPTION: Art 1131

3. Possessor may bring all actions necessary to protect his possession except accion reivindicatoria

4. May employ self-help under Art 429

5. Possessor may ask for inscription of such real right of possession in the Registry of Property

6. Has rights to fruits and reimbursements for expenses (assuming he is a possessor in good faith)

7. Upon recovery of possession which he has been unlawfully deprived, may demand fruits and damages

8. Generally, he can do on the things possessed everything that the law authorizes the owner to do until he is ousted by the one who has a better right

9. Possession in good faith and possession in bad faithArt 528

• Mistake upon a doubtful or difficult question of law as a basis of good faithArt 526, Par 3

A. Presumptions in favor of the possessor

1. Of good faith until the contrary is provedArt 528

2. Of continuity of initial good faith in which possession was commenced or possession in good faith does not lose his character except in the case and from the moment possessor became aware or is not unaware of improper or wrongful possession Art 528

CORDERO v CABRAL ( )

3. Of enjoyment of possession in the same character in which possession was ac quired until contrary is proved Art 529

4. Of non-interruption of possession in favor of present possessor who proves possession at a previous time until the contrary is provedArt 554Art 1120Art 1121Art 1122Art 1123Art 1124

5. Of continuous possession or non-interruption of possession of which he was wrongfully deprived for all purposes favorable to him Art 561


6. Other presumptions with respect to specific properties of property rights

a. Of extension of possession of real property to all movables contained therein so long as it is not shown that they should be excluded Art 426

b. Non-interruption of possession of hereditary propertyArt 533Art 1078

c. Of just title in favor of possessor in concept of owner Art 541cf. Art 1141

A. Possession may be lost by

1. Abandonment2. Assignment, either onerous or gratuitous3. Destruction or total loss of thing or it goes out of commerce4. Possession by another; if possession has lasted longer than one year; real right of possession not lost until

after 10 years• Subject to Art 537 (on acts merely tolerated, etc)


A.

VII. USUFRUCTA. Concept

Art 562

USUFRUCT• Is a real right, temporary in character that authorizes the holder to enjoy all the advantages derived

from a normal exploitation of another’s property, according to its destination or purpose, and imposes an obligation of restoring at the time specified, either the thing itself or its equivalent.

A.Historical Considerations

B. Characteristics of Usufruct

C. Usufruct Distinguished from Lease; from Servitude

Usufruct Lease

Usufruct Servitude

D.Classes of Usufruct

1. By origin

a. Voluntaryb. Legal

Art 321Art 226, FC

c. Mixed

1. By person enjoying the right of usufruct

a. Simpleb. Multiple

i. Simultaneousii. Succession

Limitation on successive usufructArt 756Art 863Art 869

1. By object of usufruct

a. RightsArt 574

b. Thingsi. Normal ii. Abnormal, irregular or quasi-usufruct

1. By the extent of usufruct


a. As to the fruitsi. Total ii. Partial

Art 598

b. As to objecti. Singularii. Universal

Art 595

Subject to provisions of:Art 758Art 759

1. By the terms of the usufructArt 564

a. Pureb. Conditionalc. With a term (period)

A.Rights of Usufructuary

1. As to the thing and its fruit

a. Right to possess and enjoy the thing itself, its fruits and accessions• Fruits consist of natural, industrial and civil fruits• As to hidden treasure, usufructuary is considered a stranger

Art 566Art 436

• Fruits pending at the beginning of usufructArt 567

• Civil fruitsArt 569Art 588

a. Right to lease the thing Art 572

• Limitations• Liability of usufructuary

Art 590• Exceptions to right of leasing the thing

FABIE v DAVID ()

a. Right to improve the thingArt 579

1. As to the legal right of usufruct itself

a. Right to mortgageRight of usufructArt 572

b. Right to alienate the usufructEXCEPT:

• In purely personal usufructs• When title constituting it prohibits the same

A. Rights of Naked Owner

1. At the beginning, during, and termination of usufruct


(See obligations of usufructuary at the beginning of the usufruct)

2. During the usufructa. Retains title to the thing or property b. He may alienate the property

Limitations: Art 581

A. Obligations of Usufructuary

1. At the beginning of usufruct or before exercising the usufruct

a. To make inventory Art 583

i. REQUISITES OF INVENTORY 1) Immovables described2) Movables appraised

ii. EXCEPTION TO REQUIREMENT OF INVENTORY 1) No one will be injured thereby

Art 5852) Title constituting usufruct excused the making of inventory3) Title constituting usufruct already makes an inventory

a. To give a bond for the faithful performance of duties as usufructuary

i. No bond are required in the following: 1) No prejudice would result

Art 5852) Usufruct is reserved by donor

Art 5843) Title constituting usufruct excused usufructuary 4) If usufructuary takes possession under a caucion juratoria

ii. Effect of filing a bond Art 588

iii. Effect of failure to give bondArt 586Art 599

1. During the usufruct

a. To take care of the thing like a good father of a familyArt 589

Effect of failure to comply with obligation Art 610

b. To undertake ordinary repairsArt 592ORDINARY REPAIRS

c. To notify owner of need to undertake extra-ordinary repairsArt 593EXTRA-ORDINARY REPAIRS

1) Concept of extraordinary repairs2) Naked owner obliged to undertake them but when made by owner, usufructuary pays legal

interest on the amount while usufruct lasts Art 594, 1 st Par 3) Naked owner cannot be compelled to undertake extraordinary repairs If indispensable and owner fails to undertake extraordinary repairs, it may be made by

usufructuary;


Repairs usufructuary rightsArt 594, 2 nd Par

a. To pay for annual charges and taxes on the fruits

BD. OF ASSESSMENT APPEALS OF ZAMBOANGA DEL SUR v SAMAR MINING COMPANY INC ()

b. To notify owner of any act detrimental to ownership Art 601

c. To shoulder the costs of litigation re usufructArt 602

d. To answer for fault or negligence of alienee, lessee or agent of usufructuary Art 590

2. At the time of termination of the usufruct

a. To deliver the thing in usufruct to the owner in the condition in which he has received it, after undertaking ordinary repairsEXCEPTION: abnormal usufruct

A. Special Cases of Usufruct

1. Usufruct over a pension or periodical income Art 570

2. Usufruct of property owned in common Art 582

3. Usufruct of head of cattleArt 591

4. Usufruct over vineyards and woodlandsArt 575Art 576

5. Usufruct on a right of actionArt 578

6. Usufruct on mortgaged property Art 600

7. Usufruct over an entire patrimony Art 598Liability of usufructuary for debts

8. Usufruct over deteriorable propertyArt 578

9. Usufruct over consumable property (or quasi-usufruct)Art 574

B. Extinguishment of UsufructArt 603

1. Death of usufructuary EXCEPTION: unless a contrary intention clearly appeals

2. Expiration of period or fulfillment of resolutory condition imposed on usufruct by person constituting the usufruct


• Time may elapse before a third person attains a certain age, even if the latter dies before period expires – unless granted only in consideration of his existenceArt 606

BALURAN v NAVARRO ()NHA v CA ()BULACAN GARDEN CORP v MANILA SEEDLING BANK ()

1. Merger of rights of usufruct and naked ownership in one person

2. Renunciation of usufructa. Limitationsb. Must be express c. If made in fraud of creditors, waiver may be rescinded by them through action under Art 1381

1. Extinction or loss of property

a. If destroyed property is insured before the termination of the usufructArt 608

1. When insurance premium paid by owner and usufructuaryArt 608, 1 st Par

i. If owner rebuilds, usufruct subsists on new buildingii. If owner does not rebuild, interest upon insurance proceeds paid to usufructuary

1. When the insurance taken by owner only because usufructuary refuses Art 608, 2 nd Par

i. Owner entitled to insurance money (no interest paid to usufructuary) ii. If he does not rebuild, usufruct continues over remaining land and/or owner may pay

interest on value of bothArt 607

iii. If owner rebuilds, usufruct does not continue on new building, but owner must pay interest on value on land and old materials

1. When insurance taken by usufructuary only depends on value of usufructuary’s insurable interest (not provided for in the Civil Code)

i. Insurance proceeds to usufructuary ii. No obligation to rebuildiii. Usufruct continues on the landiv. Owner does not share in insurance proceeds

a. If destroyed property is not insuredArt 607

1. If building forms part of an immovable under usufructi. If owner does not rebuild, usufruct continues over the land and materialsii. If owner rebuilds, usufructuary must allow owner to occupy the land and to make use of

materials, but value of both land and materials (____???)

1. Termination of right of person constituting the usufruct

2. Prescription

Cases covered: a. If third party acquires ownership of thing or property in usufructb. Right of ownership lost through prescriptionc. Right of usufruct not began within prescriptive periodd. If there is a tacit abandonment or non-user of thing held in usufruct for required period

1. What do not cause extinguishment of usufruct

a. Expropriation of thing in usufructArt 609


b. Bad use of thing in usufructArt 810Owner’s right

c. Usufruct over a building Art 607Art 608


A.

VIII. EASEMENTS OR SERVITUDESA.Definition

EASEMENT or REAL SERVITUDES • Is a real right which burdens a thing with a prestation consisting of determinate servitudes for the

exclusive enjoyment of a person who is not its owner or of a tenement belonging to another, • Is the real right over an immovable by nature i.e. land and buildings, by virtue of which the owner of

the same has to abstain from doing or to allow somebody else to do something in his property for the benefit of another thing or person.

A. Essential feature of easements/real servitudes/praedial servitudes

1. It is a real right, i.e. it gives an action in rem or real action against any possessor of servient estate.

2. It is a right enjoyed over another property (jus in re aliena or “a right in the property of another) i.e. it cannot exist in one’s own property (nemini nulli res sua servit or “no one can have servitude on a property of his own”).

3. It is a right constituted over an immovable by nature (land and buildings), not over immovables.

4. It limits the servient owner’s right of ownership for the benefit of the dominant estate – Right of limited use, but no right to possess servient estate. Being an abnormal limitation of ownership, it cannot be presumed.

5. It creates a relation between tenements.

6. It cannot consists in requiring the owner of the servient estate to do an act (servitus in faciendo consistere nequit or “servitudes may not impose positive acts”) unless the act is accessory to a praedial servitude (obligation propter rem)

7. Generally, it may consist in the owner of the dominant estate demanding that the owner of the servient estate refrain from doing something (servitus in non faciendo), or that the latter permit that something be done over the servient property (servitus in patendo), but not in the right to demand that the owner of the servient estate to do something (servitus in faciendo) EXCEPT if such act is an accessory obligation to a praedial servitude (obligation propter rem)

CHARACTERISTICS OF EASEMENTS (Nos. 8-11)

8. It is inherent or inseparable from estate to which they actively or passively belong.Art 617

9. It is intransmissible, i.e. it cannot be alienated separately from the tenement affected, or benefited.

10. It is indivisible.Art 616

11. It has permanence, i.e. once it attaches, whether used or not, it continues and may be used anytime.

A. Classification of Servitudes

1. As to recipient of benefits

a. Real or Praedialb. Personal

N.B.: Under Roman Law, usufruct together with usus habitatio, and operae servorum were classified as personal servitude]Art 614


1. As to course or origin

a. Legal, whether for public use or for the interest of private personsArt 634

b. Voluntary

1. As to its exerciseArt 615

a. Continuousb. Discontinuous

1. As indication of its existenceArt 615

a. Apparentb. Non-apparent

1. By the object or obligation imposedArt 616

a. Positiveb. Negative • Prescription starts to run from service of notarial prohibition

A. General rules relating to servitudes

1. No one can have a servitude over his own property (nulli res sua servit)2. A servitude cannot consist in doing (servitus in faciendo consistere nequit)3. There cannot be a servitude over another servitude (servitus servitudes esse non potest)4. A servitude must be exercised civiliter, i.e. in a way least burdensome to the owner of the land. 5. A servitude must have a perpetual cause.

A. Modes of acquiring easements

NORTH NEGROS v HIDALGO ()

1. By title• Juridical act which give rise to the servitude e.g. law, donations, contracts or wills

DUMANGAS v BISHOP OF JARO ()

a. If easement has been acquired but no proof of existence of easement available, and easement is one that cannot be acquired by prescription, then…

i. May be cured by deed of recognition by owner of servient estateii. By final judgmentiii. Existence of an apparent sign considered a title

Art 624

AMOR v FLORENTINO ()

1. By prescription

RONQUILLO v ROCO ()

A. Rights and obligations of owners of dominant and servient estates

Dominant Estate

1. Right of owner of dominant estate

a. To use the easement Art 626


To exercise all rights necessary for the use of the easement Art 625

b. To do, at his expense, all necessary works for the use and preservation of the easementArt 627

c. In a right of way, to ask for change in width of easement sufficient for needs of dominant estateArt 651

DE LUNA v ENCARNACION ()

1. Obligations of the owner of dominant estate

a. To use the easement for benefit of immovable and in the manner originally established Art 626

b. To notify owner of servient estate before making repairs and to make repairs in a manner least inconvenient to servient estateArt 627

c. Not to alter easement or render it more burdensomeArt 627

VALDERRAMA v NORTH NEGROS ()

d. To contribute to expenses of works necessary for use and preservation of servitude, if there are several dominant estates, unless he renounces his interestArt 628

Servient Estate

1. Rights of owner of servient estate

a. To retain ownership and use of his propertyArt 630

b. To change the place and manner of use the easement Art 629, 2 nd Par

1. Obligations of the servient estate

a. Not to impair the use of the easementArt 628, 1 st Par

b. To contribute proportionately to expenses if he uses the easement Art 628, 2 nd Par

A.Modes of extinguishment of easements

Art 631 Easements are extinguished by:

1. Merger in the same person of the ownership of the dominant and servient estates• Must be absolute, perfect and definite, not merely temporary

1. Non-user for 10 yearsa. Computation of the period

i. Discontinuous easements – counted from the day they ceased to be usedii. Continuous easements – counted from the day an act adverse to the exercise took place

a. The use by a co-owner of the dominant estate bars prescription with respect to the others Art 633

b. Servitudes not yet exercised cannot be extinguished by non-use

1. Extinguishment by impossibility of use

2. Expiration of the term or fulfillment of resolutory condition

3. Renunciation of the owner of dominant estate


• Must be specific, clear, express (distinguished from non-user)

1. Redemption agreed upon between the owners

2. Other causes not mentioned in Art 631 a. Annulment or rescission of the title constituting the easementb. Termination of the right of grantorc. Abandonment of the servient estated. Eminent domain e. Special cause for extinction of legal easement of rights of way; if right of way no longer necessary

A. Legal Easements

1. Law governing legal easements

a. For public easementsi. Special laws and regulations relating thereto

1) PD 1067 – Water Code2) PD 705 – Forestry Reform Code

i. Provisions of Chapter 2, Title VII, Book II of CC (Legal Easements)

a. For private legal easements i. By agreement of the interested parties whenever the law does not prohibit it and no injury is

suffered by a 3rd person ii. By the provisions of Chapter 2, Title VII, Book II of CC (Legal Easements)

1. Private legal easements provided for by the New Civil Code

a) Those established for the use of water or easements relating to waters

1) Natural drainage of watersArt 637

ONGSIAKO v ONGSIAKO ()

2) Easements on lands along riverbanksArt 638See Water Code

3) Abutment of a damArt 639

4) AqueductArt 642Art 643Art 644Art 645Art 646

5) Drawing waters and watering animalsArt 640Art 641

6) Stop lock or sluice gate Art 649

b) The easement of right of way



Art 654Art 655Art 656Art 657

QUIMEN v CA (1996)CHAN v CA ()LA VISTA ASSN v CA (1997)VDA. DE BELTAZAr v CA () SPS. DELA CRUZ v RAMISCAL (2005)

c) The easement of party wall

Art 658Art 659Art 660Art 661Art 662Art 663Art 664Art 665Art 666

d) The easement of light and view

Art 667Art 668Art 669Art 670Art 671Art 672Art 673

e) The easement of drainage of buildings


f) The easement of distance for certain constructions


g) The easement against nuisances

Art 682Art 683

h) The easement of lateral and subjacent supports



BOOK III – DIFFERENT MODES OF ACQUIRING OWNERSHIPMode and Title Differentiated

MODE• The specific cause which produces dominion and other real rights as a result of the co-existence of

special status of things, capacity and intention of persons and fulfillment of requisites of law• Proximate cause

TITLE• Every juridical right which gives a means to the acquisition of real rights but which in itself is

insufficient • Remote cause

Modes of Acquiring Ownership

ORIGINAL MODES• Which produce the acquisition of ownership independent of any pre-existing right of another person,

hence, free from any burdens or encumbrances

a. Occupationb. Intellectual creation

DERIVATIVE MODES • Based on a right previously held by another person and therefore, subject to the same characteristics,

powers, burden etc as when held by previous owner• Law - e.g.

○ Registration under Act 496○ Estoppel of title

Art 1434 ○ Marriage under ACP ○ Hidden treasure○ Accession

Art 445○ Change in river’s course

Art 461○ Accession continua over movables


a) Donationb) Successionc) Prescriptiond) Tradition

REQUISITES:(1) Pre-existence of right in estate of grantor(2) Just cause or title for the transmission(3) Intention (of both grantor and grantee)(4) Capacity (to transmit and to acquire)(5) An act giving it outward form, physically, symbolically or legally

LEGAL MAXIM: “Non nudis pactis, sed traditione, dominia rerum transferentur” (Not by mere agreement, but by delivery, is ownership transferred.)


KINDS OF TRADITIONa. Real traditionb. Constructive tradition

i. Symbolical deliveryii.Delivery of public instrumentiii.Traditio longamanuiv.Traditio brevi manuv.Traditio constitutum possessoriumvi.Quasi-traditionvii.Tradition by operation of law

Occupation

a. Not applicable to ownership of a piece of landArt 714

b. Privilege to hunt and fish regulated by special lawArt 715

c. Occupation of a swarm of bees or domesticated animalsArt 716Art 560

d. Pigeons and fishArt 717

e. Hidden treasureArt 718Art 438Art 439

f. Lost movables Art 719Art 720

Procedure after finding lost movables

Intellectual creation Intellectual Property Code (RA 8293)

Intellectual Property Rights (IPR):a. Copyright & related rightsb. Trademarks & service marksc. Geographic indicationsd. Industrial designse. Patentsf. Topographies of integrated circuitsg. Rights of performers, producers of sound recordings & broadcasting orgsh. Protection of undisclosed informationi. Laws repealed by the IPC

Sec 239 All acts and part of acts inconsistent with Intellectual Property Code, particularly:• PD 49 – Intellectual Property Decree, including PD 285 as amended• RA 165, as amended – Patent Law• RA 166, as amended• Arts 188 and 189 of the RPC


DONATIONNature of donation

• A bilateral contract creating unilateral obligations on donor’s part

Requisites of donation

a. Consent and capacity of the partiesb. Animus donandi (causa)c. Delivery of the thing donatedd. Form as prescribed by law

NOTE• There must be impoverishment (in fact) of donor’s patrimony and enrichment on part of donee

Kinds of donation

1. As to its taking effecta. Inter vivos


b. Mortis causa Art 728

c. Propter nuptias Art 82, FCArt 87, FC

2. As to cause or considerationa. Simpleb. Remuneratoryc. Onerous – imposes a burden inferior to the value of property donated

i. Improper – burden equal in value to property donatedii. Sub-modo or modal – E.g. imposes a prestation upon donee as to how property

donated will be appliedArt 882

iii. Mixed donations – negotium mixtum cum donatione e.g. sale for price lower than value of property

1. As to effectivity or extinguishmenta. Pureb. Conditional

Art 730Art 731 EFFECT OF AN IMPOSSIBLE CONDITION:

a. With a term

2. Importance of classificationa. As to formb. As to governing rulesc. As to impossible conditions

Art 727Art 1183

3. Characteristics of a donation mortis causaa. Convey no title or ownership before donor’s deathb. Before donor’s death, transfer is revocablec. Transfer is void if donor survives donee

4. Distinction between donation mortis causa and donation inter vivos


a. What is important is the time of transfer of ownership even if transfer of property donated may be subject to a condition or a term

b. Importance of classification – validity and revocation of donation

Who may not give or receive donations


Who may give or receive donations

Art 736Art 739Art 1027Art 1032Art 740Art 743Art 744

Acceptance of donation

1. Who may acceptArt 745Art 747

2. Time of acceptancea. of donation inter vivos

Art 746b. of donation mortis causa

Form of donations

1. Personal propertyArt 748

2. Real propertyArt 749

3. Rules in Art 748 and Art 749 not applicable to: a. Onerous donations b. Modal donationsc. Mortis causa donationsd. Donations propter nuptias

What may be donated

1. All present property, or part thereof, of donor

a. PROVIDED, he reserves in full ownership or usufruct, sufficient means for support of himself and all relatives entitled to be supported by donor at the time of acceptanceArt 750

b. PROVIDED, that no person may give or receive, by way of donation, more than he may give or receive by will Art 752

Also, reserves property sufficient to pay donor’s debts contracted before donation, otherwise, donation is in fraud of creditors Art 759Art 1387


1. If donation exceeds the disposable or free portion of his estate, donation is inofficious

EXCEPTIONS

a. Donations provided for in marriage settlements between future spouses – not more than 1/5 of present propertyArt 84, FCArt 130, CC

b. Donations propter nuptias by an ascendant consisting of jewelry, furniture or clothing not to exceed 1/10 of disposable portion Art 1070

1. What may not be donated

a. Future propertyArt 751 Anything which donor cannot dispose of at the time of donationEXCEPTION

• Marriage settlements of future spouses only in event of death to extent laid down in CC re: testamentary succession

Art 84, FCArt 130 CC

Effect of donation

A. In general

SHOPPER’S PARADISE REALTY v ROQUE (2004)

1. Donee may demand actual delivery of thing donated

2. Donee is subrogated to rights of donor in property donatedArt 754

3. Donor not obliged to warrant things donated, EXCEPT in onerous donations in which case donor is liable for eviction up to the extent of burdenArt 754

4. Donor is liable for eviction or hidden defects in case of bad faith on his partArt 754

5. In donations propter nuptias, donor must release property donated from mortgages and other encumbrances, unless contrary has been stipulatedArt 131, CC

6. Donations to several donees jointly - no right of accretion, EXCEPTa. Donor provides otherwiseb. Donation to husband and wife jointly with right of accretion (jus accrescendi) UNLESS donor

provides otherwiseArt 753

A. Special provisions

1. Reservation by donor of power to dispose (in whole or in part) or to encumber property donatedArt 755

2. Donation of naked ownership to one donee and usufruct to another Art 756

3. Conventional reversion in favor of donor or other personArt 757

4. Payment of donor’s debtArt 758a. If expressly stipulated


○ Donee to pay only debts contracted before the donation, UNLESS specified otherwise○ But in no case shall donee be responsible for debts exceeding the value of property donated,

UNLESS clearly intendeda. If there is no stipulation

○ Donee answerable only for donor’s debt only in case of donation is in fraud of creditors1. Illegal or impossible conditions

Art 727Art 1183

Revocation and Reduction of Donations

A. Revocation distinguished from reduction of donations

Revocation Reduction

B. Causes of Reduction/Revocation

1. Inofficiousness of donationArt 752Art 771Art 773Art 911Art 912

a. Who may ask for reductionArt 772

b. Rule applied: If disposable portion is not sufficient to cover 2 or more donation Art 773

2. Subsequent birth, reappearance of child or adoption of minor by donorArt 760

A. Revocation only

1. Ingratitude

a. CausesArt 765

b. Time to file action for revocationArt 769

c. Who may fileArt 770

d. Effect of revocation

On alienation and mortgagesArt 766Art 767

2. Violation of condition

a. Prescription of action

b. Transmissibility of action

YULO AND SONS v ROMAN CATHOLIC BISHOP OF SAN PABLO (2005)

3. Effect of revocation or reduction


Art 762Art 764 Par 2Art 767

4. Effect as to fruits

Art 768


LEASEA. General characteristics of every lease

1. Temporary duration2. Onerous3. Price is fixed according to contract duration

A. Kinds of leases

1. Lease of things – movables and immovables

2. Lease of work or contract of laborArt 1700Art 1701Art 1702Art 1703Art 1704Art 1705Art 1706Art 1707Art 1708Art 1709Art 1710Art 1711Art 1712

3. Lease of services

a. Household service

b. Contract for a piece of workArt 1713Art 1714Art 1715Art 1716Art 1717Art 1718Art 1719Art 1720Art 1721Art 1722Art 1723Art 1724Art 1725Art 1726Art 1727Art 1728Art 1729Art 1730Art 1731

c. Lease of services of common carriersArt 1732Art 1733Art 1734Art 1735Art 1736Art 1737Art 1738


Art 1739Art 1740Art 1741Art 1742Art 1743Art 1744Art 1745Art 1746Art 1747Art 1748Art 1749Art 1750Art 1751Art 1752Art 1753Art 1754Art 1755Art 1756Art 1757Art 1758Art 1759Art 1760Art 1761Art 1762Art 1763

A. Lease of things

1. Concept Art 1643

2. Consumable things cannot be the subject matter of lease EXCEPTArt 1645a. Consumable only for display or advertising

(Lease ad pompam et ostentationem)b. Goods are accessory to an industrial establishment

1. Special characteristics of lease of thingsa. Essential purpose is to transmit the use and enjoyment of a thingb. Consensualc. Onerousd. Price fixed in relation to period of use or enjoyment e. Temporary

2. Lease distinguished from Sale, Usufruct, Commodatum

3. Period of lease – cannot be perpetual

a. Definite period – not more than 99 yearsb. Indefinite period

i. Rural landArt 1682

ii. Urban landArt 1687

4. Assignment of leaseArt 1649

5. SubleaseArt 1650

a. House Rental Law (RA 9653)


b. Obligation of sublessee to lessorArt 1651For rentsArt 1652

6. Rights and obligations of lessor and lessee

a. Obligations of a lessorArt 1654Art 1661

b. Obligations of lessee Art 1657Art 1662Art 1663Art 1665Art 1668Art 1667

c. Right of lessee to suspend payment of rentalsArt 1658

d. Right to ask for rescissionArt 1659Art 1660

e. Lessor not obliged to answer for mere act of trespass by a 3rd personArt 1664

7. Grounds for ejectment of lessee by lessorArt 1673

Note the grounds under the House Rental Law. QUERY: Are they still effective?

8. Right to ask for writ of preliminary mandatory injunction in unlawful detainer casesArt 1674Art 539, Par 2

9. Implied extension of leaseArt 1670Art 1682Art 1687Art 1675

10. Right of purchase of leased landArt 1676Art 1677

11. Useful improvements in good faith made by lesseeArt 1678

12. Special provisions for leases of rural landsArt 1680Art 1681Art 1682Art 1683Art 1684Art 1685

13. Special provisions for leases of urban landsArt 1686Art 1687Art 1688

24634687 PROPERTY Syllabus Labitag 1st Sem 2009 2010

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Transcript of 24634687 PROPERTY Syllabus Labitag 1st Sem 2009 2010