PROPERTY NOTES

Use at your own risk.

I. REAL PROPERTY v. PERSONAL PROPERTY action which must be filed defendant resides at the
in the proper court where election of the plaintiff.
Property: under the Civil Code, the term refers to things which the real property involved
are susceptible of appropriation or a portion thereof is
Thing: objects external to man. situated
- All property are things but not all things may be considered
property (ex. The moon. It is an object external to man but Immovable Properties
it cannot be appropriated)
Kinds
Classification of Property Immovable by Nature – cannot be moved from one place to
another such as lands and roads under par. 1 of Art. 415, mines,
Importance of Classification quarries, and slug dumps in par. 8 of Art. 415.
Immovable Movable
For purposes of applying rules on acquisitive Immovable by Incorporation – immovable by reason of their
prescription attachment or incorporation to an immovable in such a manner
Acquired by ordinary Acquired through as to be an integral part thereof such as buildings, constructions
prescription through uninterrupted possession of all kinds adhered to the soil in par. 1 of Art. 415;
possession of ten (10) for four (4) years in good - trees, plants, and growing fruits in par. 2 of Art. 415;
years or thirty (30) years faith or uninterrupted - those attached to an immovable in a fixed manner in such
without just title and good possession for eight (8) a way that it cannot be separated therefrom without
faith years without need of any destroying the immovable to which it is attached or
other condition material deterioration of the same
For purposes of determining the formalities of
donation Immovable by destination – essentially movable, but by the
Donation and acceptance If the value of personal purpose for which they have been placed in an immovable,
of donation of immovable property donated exceeds partake of the nature of the latter because of the added utility
must be in a public Php 5,000.00, donation derived therefrom
document must be in writing. - pars. 4,5,6,7, and 9 of Art. 415
For purposes of determining venue in remedial law
If it affects title to or Personal actions may be Immovable by analogy or by law – mentioned in par. 10 of Art.
possession of real commenced and tried 415
property, or interest where the plaintiff or
therein, the action is a real Art. 415

Daverick Pacumio
UST Faculty of Civil Law
Par. 1. Lands, buildings, roads, and constructions of all 2. They must be placed by the owner of the tenement or by
kinds adhered to the soil … his agent
Lands 3. There must be an industry or work carried in such building
Q: Can we just say that land or anything which is immovable by or on the piece of land
nature, be considered immovable? 4. They must tend directly to meet the needs of said industry
Suggested A: Principle of estoppel as shown in Tumalad v. or work
Vicencio, viz:
Since parties so agreed that the building (or house) is a Mindanao Bus Co. v. City Assessor
personal property and a proper subject of the contract of - In order that movable equipment to be immobilized in
chattel mortgage, they are estopped from denying the contemplation of the law they must first be essential and
existence of the chattel mortgage which, as between them, principal elements of an industry or works without
must be upheld. which such industry or works would be unable to
- YES between the parties who agreed that it is a movable. function or carry on the industrial purpose for which it
However, as to its legal classification, and as to the whole was established.
world, the property is still immovable under the law.
Movable properties
Q: What if the agreement treating the immovable as movable was
registered with the Register of Deeds? May the RD refuse Movable properties under Art. 416
registration of the same? 1. Those susceptible of appropriation which are not included
A: Generally, no. the RD’s function is ministerial. However, he in the preceding article
may elevate the same to the Land Registration Authority via 2. Real property which by any special provision of law is
consulta (P.D. 1529) considered as personalty
3. Forces of nature which are brought under control by
Q: What if the agreement treating the real property as chattel thus science
subjecting the same as a chattel mortgage was registered with 4. In general, all things which can be transported from place
the RD, but the same real property was sold to a third person and to place without impairment of the real property to which
thus, the title of the real property contains a lien which was the they are fixed
chattel mortgage? Art. 417
A: Principle of estoppel is inapplicable when a third party’s rights 1. Obligations and actions which have for their object
are to be prejudiced or affected. In this case, the agreement is movables or demandable sums
invalid. 2. Shares of stock of agricultural, commercial, and industrial
entities although they may have real estate
Par. 5. Machineries, receptacles, instruments, or implements
… Q: How do you classify movables and immovables?
Requisites A: Know the real properties.
1. They must be machinery, receptacles, instruments, or Test of exclusion – all those included in Art. 415 are immovable,
implements all those excluded are movable
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Test of mobility – whether it may be transported from one place 3. Private ownership – belongs to private individual
to another
Classification of public lands according to alienability
Property in relation to the person to whom it belongs - Depends on the classification of public lands under the
Constitution
Public dominion: - Only agricultural lands are alienable and disposable (A &
1. Those intended for public use such as: D)
a. Roads;
b. Canals; How public lands are classified as patrimonial property
c. Rivers; Heirs of Malabanan v. Republic
d. Torrents; - For as long as the property belongs to the State, although
e. Ports and bridges constructed by the State; already classified as A & D, it remains property of public
f. Banks; dominion when it is still intended for some public service
g. Shores; or for the development of the national wealth.
h. Roadsteads; - There must be an express declaration by the State through
i. Others of similar character. a law duly enacted by Congress or a Presidential
2. Those which belong to the State, without being for public Proclamation to the effect that the public dominion
use, and are intended for some public service or for the property is no longer intended for public service or the
development of the national wealth development of the national wealth or that the property has
Terms been converted into patrimonial, before public lands are
Public use – use which is not confined to privileged individuals converted into patrimonial.
but is open to the indefinite public - It is only when the property has become patrimonial
Public service – although used for the benefit of the public, that the prescriptive period for the acquisition of
cannot be used indiscriminately by anyone but only by those that property of public dominion begin to run
are authorized by proper authority
Property for the development of national wealth – employed II. DONATION
for some economic or commercial activity to increase national
wealth Donation – an act of liberality whereby a person disposes
gratuitously of a thing or right in favor of another, who accepts it
Lands of the public domain (Art. 725)
Classification of land according to ownership
1. Public dominion if it either is for: Donative intent
a. Public use; or - Presumed present when one gives a part of one’s
b. Public service; or patrimony to another without consideration.
c. For the development of national wealth - Donative intent is not negated by the presence of other
2. Patrimonial property – no longer intended for public use or intentions, motives, or purposes which do not contradict
for public service donative intent.
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 - For donation to exits, the intent to donate must be the intention of the donor, all of the deed’s provisions
effectively carried out. A mere declaration of an intention must be read together. Thus, in Austria-Magat v. CA, the
or desire to donate is not a donation SC held that while there is a prohibition to alienate the
Q: Distinguish donative intent from intention to defraud creditors donated property, the deed [of donation], on the other
A: Art. 759 – the donation is always presumed to be in fraud of hand, expressly declares that the donation is
creditors, when at the time thereof, the donor did not reserve irrevocable.
sufficient property to pay his debts prior to the donation. Kinds of Donation Inter Vivos
Pure or simple donation
Donation Mortis Causa v. Donation Inter Vivos - Where the underlying cause is plain gratuity or pure
Donation Mortis Causa Donation Inter Vivos liberality (no strings attached)
In contemplation of donor’s Takes effect during - Donation in its truest form
death meaning that the full donor’s lifetime or
or naked ownership of the independently of the Remuneratory Donation
donated properties will donor’s death meaning - One made for the purpose of rewarding the done for past
pass to the donee only that the full or naked services which do not amount to a demandable debt
because of the donor’s ownership of the donated - If services are still to be performed in the future, the
death; takes effect upon properties passes to the donation is onerous
donor’s death done during the donor’s
lifetime, not by reason f his Conditional or Modal Donation
death but because of the - Made in consideration of future services or where the
deed of donation donor imposes certain conditions, limitations, or charges
Embodied in a last will and Classified into: upon the done, the value of which is inferior than that of
testament 1. Pure or simple the donation given.
2. Remuneratory - Governed by the law on contracts to the extent of the
3. Conditional or burden and by the law on donations as regards the portion
modal which exceeds the value of the burden imposed
4. Onerous
Conveyance or alienation Once accepted, becomes Onerous Donation
should be revocable ad irrevocable - Imposes upon the done a reciprocal obligation
nutum or at the discretion - Made for a valuable consideration the cost of which is
of the donor equal to or more than the thing donated
Right of disposition is not No prohibition to alienate - Governed by the law on contracts
transferred to the donee
while the donor is still alive Perfection of Donation
Note: prohibition to alienate does not necessarily defeat - From the moment the donor knows of the acceptance by
the inter vivos character of the donation. In ascertaining the donee

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 - Before notice of acceptance, therefore, the offeror (donor) Persons disqualified to be donees
is not bound and may withdraw the offer of donation 1. Those guilty of adultery or concubinage at the time of
donation
Manner and Form of Acceptance 2. Those found guilty of the same criminal offense if donation
- The person making the offer may fix the time, place, and is made in consideration thereof
manner of acceptance, all of which must be complied 3. Public officers or their spouses, descendants, and
Forms of acceptance under Arts. 748 and 749: ascendants if the donation is made by reason of their office
- Movable: orally or in writing. If made orally, simultaneous 4. Those incapacitated to succeed by will
delivery of the thing or document representing the right 5. Spouses during the marriage except moderate ones given
donated is required on occasion of family rejoicing
o If value of personal property donated exceeds Php 6. Living together as husband and wife without a valid
5,000.00, the donation and acceptance shall be marriage
made in writing. Otherwise, the donation is void.
- Immovable: Donation must be made in a public Limitations on Donations
instrument. Acceptance may be made in the same deed of 1. Future property
donation or in a separate public document but it shall not 2. Reservation by the donor of sufficient means to support
take effect unless it is done during the lifetime of the donor himself and his relatives who, at the time of acceptance of
- If acceptance is made in a separate public instrument, the the donation, are by law entitled to be supported by him
donor shall be notified thereof in an authentic form, and a. Art. 195 of FC (Who are obliged to support each
this shall be noted in both instruments other)
i. Spouses;
Who may donate ii. Legitimate ascendants and descendants
- Person who is in possession of capacity to contract and iii. Parents and their legitimate children and the
capacity to dispose of his property who is not specifically legitimate and illegitimate children of the
prohibited to make a donation latter;
- Law requires that the donor be the owner of the property iv. Legitimate brothers and sisters whether of
at the time of the donation, otherwise, such donation is the full or half blood
void, even if accepted; following the rule that no one can v. Illegitimate brothers and sisters whether of
give what he does not have the full or half blood (Art. 196)
- Determination of donor’s capacity must be considered at 3. Inofficious donations: when a donor donates more than
the time of the perfection of the donation for it is upon what he may give by will
perfection that donation is legally made - Inofficious donations are not void but merely revocable or
subject to reduction
Capacity of the Donee - XPN: Donations mortis causa
- Juridical capacity which is the fitness to be the subject of
legal relations is sufficient. Donations made to several donees jointly
Presumptions:
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 1. Donees are entitled to equal shares; - If the donor, after the donation, should have legitimate or
2. No right of accretion legitimated or illegitimate children, even though
XPNS: posthumous
a. Accretion is expressly provided by the donor - If the child of the donor, whom the latter believed to be
b. Donation is made to husband and wife jointly dead when he made the donation, should turn out to be
Accretion: when a done dies before acceptance or does not living
accept or could not accept the donation, the said donee’s share - If donor subsequently adopts minor child
goes to the other donees in proportion to the interest of each in Problem: Reconcile Art. 760, which talks about adoption of a
the donation minor child, with the Domestic Adoption Act which talks about
adoption of persons who may no longer be minors at the time of
No warranty against eviction application for adoption
XPNs: A: In case of adoption of persons of legal age, the ground for
1. Bad faith in donor’s part in which case he shall also be revocation/reduction must be Art. 752 or inofficious donations.
liable for hidden defects;
2. When the donation is onerous, in which case he shall be 2. Non-fulfillment of charges imposed in the donation;
liable up to the extent of the burden imposed Q: How will you know if there is non-compliance?
Rights available to the done in case of eviction A: See the terms stated in the deed of donation
Art. 754 – subrogation of the done to all rights and actions which
pertain to the donor Q: Will partial compliance warrant revocation?
A: Yes, the law does not distinguish. There must be 100%
Reversion of Donation compliance.
- Made by the donor who stipulates that the property
donated shall be returned to him for any case and Prescriptive period: four (4) years from non-compliance with the
circumstances condition
- Donor may likewise establish a reversion in favor of a third What must be returned: Property and fruits thereof
person provided that such person is still living at the time NOTE: This is intended to provide a judicial remedy in case of
of the donation. If said third person is dead, only the non-fulfillment or contravention of conditions specified in the deed
provision for reversion is considered void without affecting of donation if and when the parties have not agreed on the
the validity of the donation (property is retained by the automatic revocation of such donation upon the occurrence of the
donee) contingency contemplated therein

Revocation & Reduction 3. Ingratitude of the donee;

Acts of Ingratitude:
Grounds for Revocation 1. If the done should commit some offense against the
1. Subsequent appearance of children; person, honor, or property of the donor or of his wife or
children under his parental authority;

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 NOTE: Mere commission, regardless of whether or not 1. Donor failed to reserve sufficient property for his own and
conviction arises, will suffice his family’s support;
2. Donee imputes to the donor any criminal offense, or any 2. Subsequent appearance of children;
act involving moral turpitude, even though he should prove 3. Inofficious donations.
it, unless the crime or the act has been committed against
the done himself, his wife, or children under his authority; III. QUIETING OF TITLE
NOTE: No longer limited to crimes against persons, honor, or
property. Quasi in rem: deal with the status, ownership, or liability of a
particular property but which are intended to operate on these
Prescription: one (1) year from time donor had knowledge of questions only as between the particular parties to the
the fact and it was possible for him to file the action proceedings and not to ascertain or cut off the rights or interests
Rules on transmission of all possible claimants.
- If it was possible for the donor to bring the action but he
did not institute the same, the right to file the same is not Purposes:
transmitted to his heirs even if he dies before the expiration Preventive Action: to prevent all future claims
of the 1 year period Remedial action: if there is an existing action over your property
- If, upon the death of the dnor, the 1-year period has not
yet commenced to run because it was not possible for the Q: How can a claim put a cloud over your property?
donor to bring the action during his lifetime, the right to A: An action to recover possession is a real action. Therefore, it
bring the same is transmitted to the heirs upon the donor’s may be the subject of an Affidavit of Adverse Claim which the
death. Register of Deeds may annotate at the back of your title thus,
What may be returned: Property and its fruits from the time putting a cloud.
of the complaint Adverse claim: any claim of any person over any
interest/property
3. If he unduly refuses him support when the done is
legally or morally bound to give support to the donor Problem: A bought property from B in which Php 1 million was
4. Fact that the donation is inofficious. still left unpaid. Unknown to A, B sold the same property to C.
Presciption: ten (10) years following Art. 1144 from the time May A file an Affidavit of Adverse Claim over the property?
the cause of action to enforce a legitime accrued. A: NO. Not all claims may be validly acted upon by the RD. Only
Effect of Revocation/Reduction: to the extent necessary to actions in rem/real actions may be subject of a valid lis pendens
satisfy the legitimes of compulsory heirs prejudiced by such or adverse claim. The affidavit in this case is concerned with a
donation. personal action – A is merely enforcing the right against B.
NOTE: Donee shall not return the fruits except from the filing
of the complaint Requisites
1. There must be an instrument, proceeding, contract,
Grounds for Reduction encumbrance – sources of cloud or “dirt” on your title

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TEST AS TO WHETHER OR NOT THE INSTRUMENT, ETC. IS - Interest, claim, possession over property.
A CLOUD: Only these actions may be registered with the RD
1. It appears valid but in truth and in fact is invalid; and
2. There is a need to introduce evidence to prove the Problem:
invalidity of the claim Quieting of Title was filed with the RTC; while an ejectment case
was filed with the MTC.
Examples: QOT involves ownership while ejectment merely involves
A alleged that a property was mortgaged (which was registered possession. So, QOT with RTC may proceed independently
with the RD) 30 years ago. But 25 years ago, payment had because ejectment case will not touch ownership.
already been made but proof of payment was lost.
When do you file your QOT?
Q: Is the claim valid? If plaintiff is in possession: imprescriptible
A: On its face, yes because it was registered with the RD. If plaintiff is NOT in possession: 30 years

Q: What makes it invalid? IV. EXTRAJUDICIAL FORECLOSURE

A: There is allegation of payment which requires proof
Act No. 3135 – general law governing EJF
Q: What needs to be done to remove the cloud (mortgage)? General Banking Act – period of redemption for juridical
A: Remedial actions. persons: 90 days

Problem: There is an affidavit of adverse claim over your Q: May a notary public perform EJF?
property filed a long time ago. What do you do? A: YES. EJF may be performed by notary public, ex-officio sheriff
- Petition for cancellation of the affidavit of adverse claim
Requisites:
30 years ago, a mortgage was annotated by creditor bank. 1. Filing fees
2. Posting/Publication
Q: Is the claim valid? GR: Mandatory requirement
A: It appears to be so because it was annotated. XPN: Substantial compliance (i.e. invitation) per SC
decision
Q: What makes it invalid? 3. Auction – done in the place where property is located
A: PRESCRIPTION. Actions for contracts must have been - Anyone may participate
instituted within ten (10) years. Bank should have foreclosed. - Sale perfected upon falling of hammer
NOTE: Banks must exercise extraordinary diligence and must - Payment: sealed bid to be submitted from 9:00 am to 4:00
check the title beyond the instrument pm
- Bank need not bring money. Its bid is the outstanding
Lis Pendens obligation
- Land registration proceedings
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Equity of Redemption: right of owner to redeem property prior
to foreclosure/registration of sale Elements of Co-Ownership
- In case of perfected sale to the highest bidder, the 1. Plurality of Subjects
Executive Judge must issue a certificate of sale to the 2. Unity of Object
highest bidder. Absence of cert. of sale = defective sale. It 3. Recognition of Ideal Share
is only the executive judge who may issue the same
Right of Redemption: one (1) year from registration of cert. of Q: What properties are covered?
sale, owner may redeem the property. Failing this, there is issued A: Both present and future property. Why? One of the sources of
a consolidation of ownerships manifesting the fact that the right a co-ownership is a contract. Thus, two (2) parties may stipulate
of redemption has not been exercised. co-ownership of future property not yet bought.
- Exercise of this right = payment + interest.
Q: What happens if owner redeems? Sources of co-ownership
A: Sheriff issues cert. of redemption 1. Law
- After 1 year, no redemption = consolidation of ownership Example:
- When a man and a woman who are capacitated to marry
NOTE: General Banking Act – for juridical persons only. Right each other live exclusively with each other as husband and
of redemption = 3 months. Filing of action to question foreclosure wife without the benefit of marriage or under a void
proceedings does not toll period of redemption marriage, the property acquired by both of them through
their work or industry shall be governed by the rules on co-
Writ of Possession – off-shoot of EJF ownership (Art. 147, FC)
- So, after cert. of sale is issued and aff. Of consolidation of 2. Contract
ownership & title of owner is cancelled, you file a writ of 3. Succession – as when there are two or more heirs, the whole
possession estate of the decedent is, before its partition, owned in
common by such heirs, subject to the payment of debts of the
Sec. 7 of Act. 3135: during 1 year redemption period, buyer or deceased. The testator may likewise prohibit the partition of
bank may: the estate among the heirs for a period not exceeding 20 years.
1. File petition for writ of possession before RTC 4. Fortuitous event or chance
2. Post bond for reasonable use & rent of property 5. Occupancy
- This is to prevent previous owner from destroying property
Q: What is the nature of writ of possession? Rules governing co-ownership
A: Ministerial on the part of the court - Contract, if the source of a co-ownership is a contract
- Otherwise, Arts. 484 to 501 of the NCC
Q: What if the owner files an action to annul foreclosure - Special provisions of law governing co-ownerships
proceedings?
A: Court may still issue writ of possession. Share in benefits and charges
- The share of the co-owners in the beenfits as well as in the
V. CO-OWNERSHIP charges, shall be in proportion to their respective interests
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 in the co-ownership. Any stipulation to the contrary shall RTC MTC
be void. Under regular/ordinary Under rules of summary
proceedings procedure
Right over the entire property Period of filing answer is Period of filing answer is
- A co-owner of an undivided thing or right is an owner of 15 days which is 10 days which is non-
the whole and over the whole he exercises the right of extendible for another 15 extendible thus, filing with
dominion days the MTC is faster in theory.
Limitations to the right to use the entire property
1. Such use must be in accordance with the purpose for Q: Is recovery of title & possession included?
which the thing is intended; A: No. Only possession. It does not deal with ownership.
- In determining the purpose, (a) the agreement, express
or implied, of the parties will first govern. In default Rule: A co-owner may bring an ejectment action without joining
thereof, (b) the use for which it is ordinarily adapted the other co-owners, the suit being deemed instituted for the
according to its nature. benefit of all co-owners.
2. Such use must be without prejudice to the rights of Q: How will the court know that it is a representative suit or one
the other co-owners; representing the other co-owners?
3. Such use must not be in a manner as to prevent the A: Under the law, nothing is required to be presented before the
other co-owners from using the thing according to court for a co-owner to represent the other co-owners. However,
their own right. this is not enough. The co-owner filing must ALLEGE that he is
filing for and in behalf of the other co-owners in the complaint.
Filing of Ejectment Case
Ejectment – includes all actions for recovery of possession Necessary Expenses
- A mode of dispossessing. - Those incurred for the purpose of preserving the thing or
- Requires demand. Lack thereof gives presumption that those expenses which seek to prevent the waste,
you are not ejecting a person from the property. deterioration, or loss of the thing.
- Example: Failure to pay rentals
- Prescriptive period: One (1) year from the date of last Right to demand contribution
demand to be filed with the MTC who exercises exclusive - A co-owner who desires to make the necessary repairs is
original jurisdiction to try ejectment cases not required to secure the consent of all the co-owners.
- If you file the action beyond 1 year from the date of last What the law requires is that he must, if practicable, notify
demand, you must file the same with the RTC for accion the other co-owners of the necessity of such repair prior to
publiciana undertaking the same.
Accion Publiciana – ejectment in the RTC when the filing is - Failure to comply with the notice requirement does not
beyond 1 year from the date of last demand deprive the co-owner who secured the expenses of the
right to recover the proportionate shares of the other co-
What makes the difference if you file with the RTC versus owners in the expenses. The only effect of such failure is
when you file with the MTC?
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 to place upon the co-owner who incurred the expenses the Act of Alteration
burden of proving the necessity of the repairs and the - Law prohibits the making of alterations in the thing co-
reasonableness of the expenses. owned without the consent of ALL other co-owners.
- An act of alteration is that which changes the thing from
Renunciation by a co-owner the state in which the others believe it should remain or
- While co-owners may be compelled to contribute withdraws it from the use to which they wish it to be
proportionately to the expenses incurred for the purpose intended. It affects the substance of the thing and
of preserving the thing or right owned in common, they are changes its essence and nature.
given by law the option of renouncing so much of their Effect of unauthorized alteration
undivided interest as may be equivalent to their share of - Other co-owners can compel the erring co-owner to undo
the expenses and taxes. what has been done, at the latter’s expense
Should there be consent in renunciation?
- From the language of Art. 488, none is required. However, Acts of Administration
it is the opinion of Senator Arturo Tolentino and Justice - Law requires the consent of the majority of the co-owners
J.B.L. Reyes, two eminent civilists, that the renunciation is - Majority: co-owners who represent the controlling interest
in the nature of a dation in payment and should, therefore, in the object of the co-ownership
require the consent of the creditor which, in this case, was - An act of administration refers to the improvement or
the co-owner who made the advances embellishment of the thing owned in common for the
purpose of better enjoyment.
Q: Is payment of taxes a necessary expense? If there is NO MAJORITY or the decision of the majority is
A: Generally, yes. However, real property taxes are not PREJUDICIAL
necessary for preservation because if the same is not paid, the - The court, at the instance of an interested party, shall order
property will not be destroyed nor impaired, although its such measures as it may deem proper, including the
possession may be lost by the possessor. Again, necessary appointment of an administrator.
expenses are those incurred for the purpose of preserving the
thing or those expenses which seek to prevent the waste, Extinguishment of Co-Ownership
deterioration, or loss of the thing. 1. Merger in one person of all the interest of the co-
ownership;
Q: Can any one of the co-owners change the purpose of the co- - When all the interests in a co-ownership are consolidated
owned property? in one person
A: YES. Provided they comply with the limitations on the use of 2. Destruction of Thing or Loss of Right
the property. 3. Prescription of the thing or right in favor of third persons
General Rule: Prescription does not lie in favor of one co-owner
Q: Is there something wrong with perpetual co-ownership? against the other co-owners. Co-ownership is a form of trust and
A: Yes, the law prohibits perpetual co-ownership for reasons of every co-owner is a trustee for the others. Hence, the relationship
public policy. of such co-owner to the other co-owners is fiduciary in character
and attribute.
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XPN: Repudiation of Co-ownership
- When a co-owner claims exclusive ownership of the whole Effects of Termination
property co-owned 1. Mutual accounting with regard to the benefits and
Q: Suppose A occupied ¾ of the property co-owned with co- expenses;
owner B. Is there repudiation? 2. Payment of damages caused by a co-owner’s negligence
A: NO. Possession must be adverse, continuous, open, or fraud;
notorious, and exclusive possession in the concept of an owner. 3. Reimbursement of one another for any useful and
Mere possession as a possessor does not ripen into ownership. necessary expenses made upon such property.

Q: How is repudiation made? VI. NUISANCE

A: Taking with a claim of ownership. As long as possession is in
the concept of an owner. Definition under Art. 694 is any act, omission, establishment,
business, condition of property, or anything else which:
Requisites of Repudiation 1. Injures or endangers the health or safety of others; or
1. Co-owner performs unequivocal acts of repudiation 2. Annoys or offends the senses; or
amounting to an ouster of the other co-owners; 3. Shocks, defies, or disregards decency or morality; or
2. Such positive acts of repudiation have been made known 4. Obstructs or interferes with the free passage of any public
to the other co-owners; highway or street, or any body of water; or
3. Evidence thereon must be clear and convincing; 5. Hinders or impairs the use of property.
4. Such co-owner must have been in the possession through
continuous, open, notorious, and exclusive possession of Public Nuisance: Affects a community or neighborhood or any
the property in the concept of an owner. considerable number of persons, although the extent of the
annoyance, danger, or damage upon individuals may be unequal
Effects of a co-owner repudiating the co-ownership Private Nuisance: one that is not included in the foregoing
1. Co-owner may acquire the entire property by virtue of definition and violates only private rights and produces damages
acquisitive prescription if his possession meets all the to but one or few persons
requirements set forth by law, and after the expiration of
the prescriptive period (Acquisitive prescription) Requisites for recovery under private nuisance
2. Other co-owners who were deprived of their share may 1. Damage to property which may be either:
lose the right to seek a declaration of the existence of the a. Physical damage to property; or
co-ownership and of their rights thereunder because the b. Personal discomfort
same may already be barred by the statute of limitations 2. Interference is either:
(Extinctive prescription) a. Intentional and unreasonable;
o The action for reconveyance by a co-owner of his b. Unintentional and otherwise negligent or reckless in
share prescribes in ten (10) years, the action being conduct; or
based on an implied or constructive trust since co- c. Resulting in abnormally dangerous activities in an
ownership is a form of trust inappropriate place
12
 thereto, is liable to a child of tender years who is injured
thereby, even if the child is technically a trespasser in the
premises.
Nuisance per se Nuisance per accidens
Affects the immediate Depends upon certain Remedies against a public nuisance
safety of persons and conditions and 1. Prosecution under the RPC or local ordinance;
property which may be circumstances and its 2. Civil action;
summarily abated under existence being a question - If a civil action is brought by reason of the maintenance of
the undefined law of of fact, it cannot be abated a public nuisance, such action shall be commenced by the
necessity without due hearing city or municipal mayor
thereon in a tribunal 3. Abatement, without judicial proceedings.
authorized to decide Who may abate
whether such a thing does - District health officer shall determine whether or not
in law constitute a abatement, without judicial proceedings, is the best
nuisance remedy against a public nuisance.
A nuisance which under May only be proven in a - Any private person may abate a public nuisance which is
any and all circumstances, hearing conducted for the specially injurious to him by removing it, or if necessary,
regardless of location or purpose and may not be by destroying the thing which constitutes the same, without
surroundings, because it summarily abated without committing a breach of the peace or doing unnecessary
constitutes a direct judicial intervention. It injury PROVIDED:
menace to public health or becomes a nuisance a. That demand be first made upon the owner or
safety because of the possessor of the property to abate the nuisance;
circumstances of the b. That such demand be rejected;
location and surroundings c. That the abatement be approved by the district
or manner in which it is health officer and executed with the assistance of
performed or operated, the local police; and
and its existence being a d. That the value of the destruction does not exceed
question of fact, it cannot Php 3,000.00.
be abated without due
hearing thereon in a Remedies against a private nuisance
tribunal. 1. Civil action; or
2. Abatement, without judicial proceedings
Doctrine of Attractive Nuisance NOTE: This must still comply with the procedure followed in case
- One who maintains on his premises dangerous of extrajudicial abatement of public nuisance, viz:
instrumentalities or appliances of a character likely to a. That demand be first made upon the owner or
attract children in play, and who fails to exercise ordinary possessor of the property to abate the nuisance;
care to prevent children from playing therewith or resorting b. That such demand be rejected;
13
 c. That the abatement be approved by the district
health officer and executed with the assistance of 2. Possession in the concept of an owner and possession in
the local police; and the concept of a holder
d. That the value of the destruction does not exceed - Possession in the concept of an owner: possession
Php 3,000.00. either by the owner himself or one who claims to be so
o NOTE: The concept of an owner refers to the
Liability for damages opinion or belief of the neighbors and the rest of the
- A private person or a public official extrajudicially abating world, and not that of the possessor
a nuisance shall be liable for damages IF: o Even if the possessor is aware that there is a flaw
A. He causes unnecessary injury; or in his title resulting in its invalidation, so long as he
B. If an alleged nuisance is later declared by the courts claims ownership and does not acknowledge a
to be not a real nuisance. superior right, he is considered a possessor in the
concept of an owner
NOTE: Abatement, without judicial proceedings is only applicable o Effects:
to nuisance per se. 1. Raises a disputable presumption of ownership;
2. Creates disputable presumption that the
VII. POSSESSION possessor has just title and cannot be obliged to
show it; and
Definition: possession is the holding of a thing or the enjoyment 3. May ripen into ownership through acquisitive
of a right.1 prescription subject to the requirements of the
Elements: law.
1. Occupancy, apprehension, or taking; and o Just Title: that which is legally sufficient to transfer
2. Intent to possess (animus possidendi). ownership of the thing or the real right to which it
relates
Classification of Possession - Possession in the concept of a holder: acknowledges
1. Possession in one’s own name and possession in the in another a superior right which he believes to be
name of another ownership, whether his belief be right or wrong
- Possession in one’s own name: embraces all kinds of
possession anchored on a juridical title or right e.g., 3. Possession in good faith and possession in bad faith
possession by the owner himself, possession by a lessee - Possession in good faith: if possessor is unaware that
or a mere usufructuary there exists in his title or mode of acquisition any flaw
- Possession in the name of another: possession by a which invalidates it
person without any right of his own and one which is strictly o Thus, a possessor in the concept of a holder is not
of an agent or merely an instrument in the exercise of such a possessor in good faith as he acknowledges a
possession, e.g., possession by a caretaker superior right

1
Art. 523, NCC.
14
 o Good faith is always presumed, and upon he who 2. Each shall divide the incurred for production and
alleges bad faith rests the burden to prove the same expenses of preservation because these
§ This presumption subsists until facts exist cultivation both in expenses are reimbursable
which show that the possessor is already proportion to the time to the possessor in bad faith
aware that he wrongfully or improperly of their respective if the fruits have already
possesses the thing possessions; been received by the latter
- Possession in bad faith: one who has knowledge of any
flaw or defect in his title which invalidates the same If the owner does not want to
o One who acquires real estate with knowledge of pay his share of expenses
facts which should put a reasonable man upon his for cultivation, he may allow
guard is a possessor in bad faith the possessor to finish the
Effects of Possession in good faith/bad faith cultivation and gathering in
Ø As to fruits lieu of his part of such
Fruits Already Received expenses in which case, the
Possessor in Good Faith Possessor in Bad Faith owner will not have any
Entitled to the fruits received 1. Possessor is not share in the harvest
by him before his entitled to the fruits,
possession is legally and shall reimburse Ø As to Expenses
interrupted the fruits received Kinds of Expenses:
and those which the 1. Necessary Expenses: those made for the preservation of
NOTE: Fruits are considered legitimate possessor the thing, or those without which the thing would
“received” depends on the could have received; deteriorate or be lost
kind of fruits involved. 2. Possessor is
Natural and industrial fruits nevertheless entitled Possessor in Good Faith Possessor in Bad Faith
are considered received to recover expenses Whether in good faith or in bad faith, a possessor is
from the time they are for the production, entitled to the refund of necessary expenses incurred by
gathered or severed, while gathering, and him BUT:
civil fruits accrue daily. preservation of the Possessor in good faith is Possessor in bad faith has
fruits. entitled to retain the thing no right of retention
until he has been
Pending Fruits reimbursed therefor
1. Possessor and the Possessor is not entitled to
owner shall have a any reimbursement of the 2. Useful Expenses: those incurred to give greater utility or
right to a part of the expenses he incurred in productivity to the property. These expenses increase the
net harvest; relation to the fruits, value of the thing and result in improvements called useful
including the expenses improvements

15
 Possessor in Good Faith Possessor in Bad Faith However, if the owner/legitimate possessor exercises
Entitled to refund Not entitled to refund his option to retain possession of the ornaments by
reimbursing the value thereof to the possessor, the
In making the refund, the latter’s right of removal may not be exercised.
owner/legitimate possessor Extent of reimbursement
has the option: Actual amount expended Value of the ornament at
1. To refund the amount the time the owner enters
of expenses; or into the possession of the
2. To pay the increase property irrespective of the
in value which the amount actually spent
thing may have
acquired by reason of Ø As to Loss
the useful expenses Possessor in Good Faith Possessor Originally in
Enjoys the right of retention Not entitled Bad Faith
until he is reimbursed the Not liable for the Liable in all cases
useful expenses deterioration/loss of the thing
Possessor may, in lieu of Not entitled possessed
refund, remove the useful XPN: Loss/deterioration was
improvements provided: due to fraudulent
1. The removal can be intent/negligence
done without damage
to the principal thing NOTE: Distinction must be
2. The owner/legitimate made between a possessor
possessor does not originally in good faith whose
choose to good faith was interrupted by
appropriate the notice of a flaw or defect in
improvements by his title which has the effect
refunding the useful of invalidating the same, and
expenses a possessor originally in bad
faith. The latter is liable in all
3. Ornamental Expenses: those which do not increase the cases.
productiveness of the thing but merely embellish the same

Possessor in Good Faith Possessor in Bad Faith

Both possessors are not entitled to refund. They may,
however, remove the ornamental improvements.

16
Presumption of Continuity of Possession: if the present Characteristics:
possessor can show proof that he was also in possession of the 1. Real right
property at some previous time, his possession will be presumed 2. Temporary in character
to be continuous covering even the intermediate period.2 3. Purpose is for the enjoyment of the use and fruits of
the usufruct
Modes of Losing Possession
1. Abandonment: occurs when the (a) hope of recovery Usufruct v. Lease
(spes recuperandi) and the (b) intent to recover (animus Usufruct Lease
revertendi) are gone. As to Creator
2. Assignment Created only by the owner or Need not be created by the
3. Destruction/Loss the authorized representative owner
4. Possession by another As to the Nature of Right
- May occur by forcible entry or unlawful detainer. Usufruct is always a real right Generally a personal right. It
- Accion Interdictal: becomes real only when it is
o An action for recovery of possession de facto constituted over real property
o Composed of forcible entry and unlawful detainer and the same is registered, or
o Jurisdiction: MTC if the lease is more than 1 year
o Must be initiated within one (1) year from forcible As to Manner of Creation
entry, or date of last demand in the case of unlawful May be created by law, by Created only by contracts
detainer contracts, or by prescription
a. Forcible Entry: Unlawful entry effected by force, As to Execution of Repairs
intimidation, threat, strategy or stealth [FITSS] Usufructuary has the duty to Lessee has no duty to make
b. Unlawful Detainer: When one illegally withholds make the ordinary repairs repairs except urgent repairs
possession after expiration or termination of his As to Payment of Taxes
right to hold possession under any contract Usufructuary pays for annual Lessee does not pay taxes on
- Accion Publiciana: charges, taxes, and liens on the property unless agreed
o Action for recovery of possession de jure which is the fruits of the property during upon
not lost until after the lapse of ten (10) years the lifetime of the usufruct
o If the dispossession lasted for more than a year
Rights of the Usufructuary:
VIII. USUFRUCT 1. Right to use (jus utendi)
2. Right to the fruits (jus fruendi)
Definition: right of a person (usufructuary) to enjoy the - Natural and Industrial fruits pending or ungathered at
property of another (owner) with obligation of returning it at the time the usufruct begins: belong to the usufructuary,
the designated time and preserving its form and substance.

2
Art. 554, NCC.
17
 and the latter does not have the obligation to refund to the 2. Caucion juratoria – the promise under oath made in
naked owner any expenses incurred by the latter for the court by the usufructuary who has not given security to
cultivation and production of such fruits take good care of the property held in usufruct nd return
- Natural and Industrial fruits pending or ungathered at it upon termination. It serves as a substitute for the
the time usufruct terminates: belong to the naked owner security or bond
BUT the latter shall be obliged to reimburse the Requisites of caucion juratoria:
usufructuary the ordinary expenses of cultivation, for sees, 1. Proper court petition
and other similar expenses incurred by the usufructuary. 2. Necessity for the delivery of the furniture,
- Civil fruits: accrue daily. Thus, they belong to the implements, tools or house included in the usufruct
usufructuary in proportion to the time the usufruct may last. 3. Approval of the court
3. Right to possess (jus posidendi) 4. Sworn promise
- Thus, usufructuary has the right to exclude any person 5. He cannot alienate or lease the property for this will
from the enjoyment of the property mean that he does not need them.
- Usufructuary may lease the property held in usufruct
because in lease, the lessor is not required to be the owner Ø During the Life of the Usufruct
of the property leased since only the use or enjoyment of 1. Make the ordinary repairs;
the thing is transferred - Ordinary repairs: if the following requisites concur:
- Jus disponendi remains with the naked owner. Thus, the a. The repair is required by the wear and tear due to the
latter may still alienate the property held in usufruct subject natural use of the thing; and
to the following limitations: b. It is indispensable for the preservation of the thing
1. That there shall be no alteration of the form and - Extraordinary repairs: if both the requisites mentioned
substance of the thing; above are not satisfied
2. That it shall now be prejudicial or injurious to the right o If the usufructuary pays extraordinary repairs, he
of the usufructuary; and has the right to retain the property subject of the
3. That there shall be no diminution in the value of the usufruct
usufruct. 2. Pay the annual charges and taxes imposed on the
fruits of the usufruct;
Obligations of the Usufructuary - Real estate taxes on land, according to the Supreme
Ø At the Commencement of the Usufruct: Court, directly burdens the capital, that is, upon the real
1. Make an inventory of all the property covered by the value of the property, and should be paid by the naked
right of usufruct; and owner
2. Give a security or bond 3. Notify the owner of the need of urgent extraordinary
Purpose of these requirements: to ensure the return of repairs;
the property in the condition it was given as usufruct 4. Pay the expenses, costs, and liabilities for suits
involving the usufruct; and
XPNs: 5. Notify the owner of any act of a third person which
1. When no one will be injured thereby; and may be prejudicial to the rights of the owner
18
 Definition: an independent right of exclusive enjoyment and
General Rule: Usufructuary is entitled to enjoy and use the control of the thing for the purpose of deriving therefrom all
usufruct with the obligation to preserve its form and substance advantages required by the reasonable needs of the owner
XPNs: (holder of the right) and the promotion of the general welfare but
1. When the law or title creating the usufruct provides that the subject to the restrictions imposed by law and the right of others
usufructuary is not so obliged; (Rabuya citing J.B.L. Reyes)
2. When the usufruct includes things which, without being
consumed, gradually deteriorate through wear and tear; and Attributes of Ownership:
- This applies to usufruct over non-consumable things which 1. Right to use (jus utendi);
gradually deteriorate 2. Right to the fruits (jus fruendi);
- XPN to the XPN: If the deterioration is due to fraud or 3. Right to dispose (jus disponendi);
negligence, the usufructuary is liable 4. Right to abuse (jus disponendi);
3. When the usufruct includes things which cannot be used 5. Right to possess (jus posidendi); and
without being consumed (Abnormal Usufruct). 6. Right to recover (jus reivindicandi)
- Consumable Property: property which could not be
enjoyed without being consumed. Actions for Recovery of Possession
- Effects: 1. Accion Interdictal
1. If appraised, usufructuary must pay for their appraised - For the recovery of possession de facto
value at the termination of the usufruct - Comprised of two (2) causes of action, viz:
2. If not appraised, the usufructuary must: (a) return the a. Forcible Entry: a summary action to recover material or
same quantity and quality; or (b) pay the current price physical possession of real property when the person
of the thing at the termination of the usufruct. who originally held it was deprived of possession by
force, intimidation, threats, stealth, or strategy [FITSS]
Extinguishment of Usufruct [DEMR-LoTP] o Possession by the defendant is unlawful ab initio
1. Death of the usufructuary; o Plaintiff must allege that he was in prior physical
2. Expiration of the period for which it was constituted or by possession
the fulfillment of any resolutory condition; o One-year period within which to bring an action is
3. Merger of the usufruct and ownership in one person; counted from the time the plaintiff learned of the
4. Renunciation of the usufructuary; entry by FITSS
5. Loss of the thing in usufruct; b. Unlawful Detainer: action to recover possession of real
6. Termination of the right of the person constituting the property from one who illegally withholds possession
usufruct; and after the expiration or termination of his right to hold
7. Prescription possession under any contract, express or implied
o Possession by the defendant is originally legal but
IX. OWNERSHIP became illegal due to the expiration or termination
of the right to possess
o Plaintiff need not be in prior physical possession
19
 o One-year prescriptive period is counted from the - It is the power or right of the state to acquire property
date of last demand whether registered or not for public use upon payment of
2. Accion Publiciana just compensation.
- Ordinary civil proceeding to determine the better right of - Just Compensation = market value + consequential
possession of realty independent of title damages – consequential benefits
- An ejectment suit filed after the expiration of one year from - Consequential damages: Injuries which the owner of the
the accrual of the causes of actions in forcible entry and property subject of expropriation had suffered by reason of
unlawful detainer the expropriation other than the loss of the property
- Jurisdiction depends on the locality of the realty and its expropriated
assessed value, thus: - Consequential benefits: Gains or advantages which the
a. Property located in Metro Manila whose assessed value property owner will enjoy by reason of the expropriation
does not exceed Php 50,000.00 – jurisdiction is with the c. Taxation
MTC
b. Above Php 50,000.00 in MM - RTC 2. Imposed by law
c. Property located outside Metro Manila whose assessed a. Legal easements
value does not exceed Php 20,000.00 – jurisdiction is b. During a period of acute public want or emergency,
with the MTC thoughtless extravagance in expenses for pleasure or
d. Above Php 20,00000 outside MM – RTC display may be stopped by order of the courts at the
instance of any government or private charitable institution
3. Accion Reivindicatoria c. Lands acquired under free patent or homestead
- Suit which has for its object the recovery of possession
over the real property as owner 3. Imposed by Owner Himself
a. Voluntary Easement
Limitations on Ownership: b. When owner transmits his property to another person
1. Imposed by the State (examples, lease, commodatum, donation or will)
a. Police Power c. Owner imposes restrictions or limitations on the right of
- The inherent power of the state exercised for the purpose ownership at the time he continues to be the owner of the
of promoting general welfare, comfort and convenience of property (ex. Donor or testator may prohibit partition of
the people by restraining and regulating liberty and property for a period not exceeding 20years)
property.
- Requisites for exercise: (a) due process [lawful means – Doctrine of Self-Help: the lawful owner or possessor of a thing
means employed is reasonably necessary to fulfill the has the right to exclude any person from the enjoyment and
State objective]; and (b) equal protection [lawful subject – disposal thereof. For this purpose, he may use such force as may
interest of the public generally as distinguished from that be reasonably necessary to repel or prevent an actual or
of a particular class requires State intervention]
b. Eminent Domain

20
threatened unlawful physical invasion or usurpation of his b. When the discovery is made by a stranger who is not a
property.3 trespasser and the discovery is by chance – finder has
- The doctrine of self-help can only be exercised at the time 50% while owner has 50%
of actual or threatened dispossession, and not when c. When the finder is a trespasser, he gets nothing.
possession had already been lost. In the latter case, the
owner must resort to judicial process for the recovery of X. ACCESSION
property.
- In order for defense of property to be appreciated as a Accession: the right of an owner of a thing to the products of said
justifying circumstance, it is necessary that the means thing as well as to whatever is inseparably attached thereto as an
employed to prevent or repel the aggression must also be accessory.
reasonable - A right included in ownership.
Kinds of Accession:
Doctrine of state of necessity: the interference by a third 1) Accession Discreta: right of owner to anything produced
person with another’s property is justified and cannot be by his property
prevented by the latter if such interference is: Accession Discreta is subdivided into natural, industrial,
a. Necessary to avert an imminent danger; and and civil fruits
b. The threatened damage, compared to the damage arising 2) Accession Continua: right of owner to anything which is
to the owner from the interference, is much greater incorporated or attached to his property, whether such
attachment is through natural or artificial causes
Doctrine of Self-help Doctrine of state of Accession Continua is further subdivided into 2:
necessity 1. Accession with respect to Immovable Property
Invoked by the owner/lawful Availed of by other persons a. Industrial Accession: building, planting, or sowing (Arts.
possessor in protection of his against someone else’s 445-455)
right to prevent other persons property for purpose of b. Natural Accession: alluvion, avulsion, change of course
from interfering with the averting an imminent danger of river, and formation of islands
property to himself or to another person 2. Accession with respect to Movable Property
or to their property c. Adjunction or conjunction – includes inclusion
(engraftment), soldadura (attachment), tejido (weaving),
Hidden Treasures pintura (painting), escritura (writing);
- Unknown deposit of money, jewelry, or other precious d. Commixtion or confusion;
objects, the lawful ownership of which does not appear e. Specification.
- Right to hidden treasure:
a. Owner of the property – 100% Accession with respect to Immovable Property

3
Art. 429, NCC.
21
Building: generic term for all architectural work with roof, built for 2. Has the right to
the purpose of being used as man’s dwelling, or for offices, clubs, receive indemnity
theaters, etc. (Tolentino) for the value of his
Planting: refers to trees, big or small materials from LO
Sowing: refers to crops and plants caused by the scattering or Bad Faith Good Faith
strewing of seeds upon the soil (Rabuya, 2017) Has the obligation to pay 1. Remove materials
OM damages but may still in any event
Art. 447. The owner of the land who makes thereon, acquire what was built, 2. Right to receive
personally or through another, plantings, constructions or planted, or sown subject to damages
works with the materials of another, shall pay their value; the OM’s right to remove.
and, if he acted in bad faith, he shall also be obliged to the Good Faith Bad Faith
reparation of damages. The owner of the materials shall have Acquires what has been Loses materials without
the right to remove them only in case he can do so without built, planted, or sown right to be indemnified
injury to the work constructed, or without the plantings, without paying indemnity
constructions or works being destroyed. However, if the Bad Faith: As if they (LO-BPS and OM) BOTH acted
landowner acted in bad faith, the owner of the materials may in GOOD FAITH, thus:
remove them in any event, with a right to be indemnified for Acquires what has been 1. May remove what
damages. built, planted, or sown but has been built,
has the obligation to pay planted, or sown
Landowner (LO) himself is the builder, planter, or sower (BPS) for the value of the provided, the
with the materials of another person (Owner of the materials/OM) materials to the OM constructions, etc.
- Art. 447 contemplates 2 parties only – the LO who is also would not be
the BPS (LO-BPS), and the OM. destroyed
2. Has the right to
Good faith in Art. 447’s context: LO-BPS is unaware that he is receive indemnity
using the materials of another for the value of his
Bad faith in Art. 447’s context: LO-BPS knows from the start materials from LO
that he is not the owner of the materials
Art. 448. The owner of the land on which anything has been
Landowner (LO-BPS) Owner of Materials (OM) built, sown or planted in good faith, shall have the right to
Good Faith appropriate as his own the works, sowing or planting, after
Acquires what is built, 1. May remove what is payment of the indemnity provided for in Articles 546 and
planted, or sown, but has built, planted, or 548, or to oblige the one who built or planted to pay the price
the obligation to pay for the sown provided, they of the land, and the one who sowed, the proper rent.
value of the materials to would not be However, the builder or planter cannot be obliged to buy the
the OM destroyed land if its value is considerably more than that of the building

22
or trees. In such case, he shall pay reasonable rent, if the
owner of the land does not choose to appropriate the Art. 454. When the landowner acted in bad faith and the
building or trees after proper indemnity. The parties shall builder, planter or sower proceeded in good faith, the
agree upon the terms of the lease and in case of provisions of article 447 shall apply.
disagreement, the court shall fix the terms thereof.
Arts. 448-454 presuppose the existence of two parties, viz: (a)
Art. 449. He who builds, plants or sows in bad faith on the LO; and (b) OM who is also the BPS.
land of another, loses what is built, planted or sown without
right to indemnity. Landowner (LO) Owner of Materials (OM)
who is also the Builder,
Art. 450. The owner of the land on which anything has been Planter, Sower (BPS) or
built, planted or sown in bad faith may demand the OM-BPS
demolition of the work, or that the planting or sowing be Good Faith
removed, in order to replace things in their former condition 1. May acquire the Has the right to retain the
at the expense of the person who built, planted or sowed; or thing built, planted, property until payment of
he may compel the builder or planter to pay the price of the or sown after the necessary and useful
land, and the sower the proper rent. indemnifying the expenses; SUBJECT to
OM-BPS in good OM-BP’s choice in no. 2
Art. 451. In the cases of the two preceding articles, the faith of indemnities
landowner is entitled to damages from the builder, planter or consisting of the
sower. necessary and
useful expenses;4
Art. 452. The builder, planter or sower in bad faith is entitled OR
to reimbursement for the necessary expenses of 2. Oblige the OM-BP
preservation of the land. to buy the land,
while the one who
Art. 453. If there was bad faith, not only on the part of the sowed, to pay the
person who built, planted or sowed on the land of another, proper rent
but also on the part of the owner of such land, the rights of UNLESS the value
one and the other shall be the same as though both had of the land exceeds
acted in good faith. the value of the
thing built or planted
It is understood that there is bad faith on the part of the in which case OM-
landowner whenever the act was done with his knowledge BP must pay rent IF
and without opposition on his part. LO does not acquire

4
Art. 546 and 548, NCC.
23
 the thing built or consisting of the
planted with necessary and
payment of useful expenses;5
abovementioned OR
indemnities 2. Oblige the OM-BP
Good Faith Bad Faith to buy the land,
1. Demolition of thing 1. No right to be while the one who
built, planted, or indemnified sowed, to pay the
sown; OR 2. Loses right to what proper rent
2. Removal of the is built, planted, or UNLESS the value
thing planted or sown of the land exceeds
sown in order to 3. Liable for damages the value of the
restore things in thing built or planted
their former in which case OM-
condition at the BP must pay rent IF
expense of the LO does not acquire
OM-BPS in bad the thing built or
faith planted with
Bad Faith Good Faith payment of
1. Indemnify the OM- 1. Right to claim abovementioned
BPS in good faith damages indemnities
for the 2. Right to remove
improvements what is built, Art. 455. If the materials, plants or seeds belong to a third
2. Damages planted, or sown in person who has not acted in bad faith, the owner of the land
3. Can no longer sell any event shall answer subsidiarily for their value and only in the event
the land to OM-BPS that the one who made use of them has no property with
Bad Faith: As if they (LO and OM-BPS) BOTH acted which to pay.
in GOOD FAITH, thus:
1. May acquire the Has the right to retain the This provision shall not apply if the owner makes use of the
thing built, planted, property until payment of right granted by article 450. If the owner of the materials,
or sown after the necessary and useful plants or seeds has been paid by the builder, planter or
indemnifying the expenses; SUBJECT to sower, the latter may demand from the landowner the value
OM-BPS in good OM-BP’s choice in no. 2 of the materials and labor.
faith of indemnities

5
Art. 546 and 548, NCC.
24
Art. 455 presupposes the existence of three (3) parties, viz: (a) Ø Where OM did not know that his materials were being used
LO; (b) BPS; and (c) OM. by the BPS, he is entitled to recover the value of his
materials from the BPS
To simplify the resolution of this “controversial” situation, Art. 455 To the BPS:
offers to settle first the right of the owner of the materials (OM) a. BPS is in GOOD FAITH: BPS is primarily liable to pay OM
whose only interest is the recovery of the value of his materials. the value of his materials.
Such recovery, however, shall depend on whether he acted in b. BPS is in BAD FAITH: BPS is primarily liable to pay OM
good faith or in bad faith. (Rabuya, 2017) the value of his materials with damages.
To the LO:
OM acted in BAD FAITH, Effects: Ø LO is subsidiarily liable to pay the value of the OM’s
To the OM: materials if: (a) BPS is insolvent; and (b) LO
Ø OM loses his materials without indemnity. This is so appropriates what has been built, planted, or sown.
because if he knew that his materials were being used by
another but did not object thereto, it is as if he was the one Accession with respect to Movable Property
who built, planted, or sowed with his materials in the land
of another. (Rabuya, 2017) Forms:
Ø OM is also liable for damages 1. Adjunction or conjunction;
To the LO: - Takes place when two or more movable things belonging
Ø LO may acquire what has been built, planted, or sown to different owners are so united that they cannot be
without any obligation to indemnify the OM (similar to the separated without causing injury to one or both of them,
situation contemplated in Art. 449, NCC) thus giving rise to a new thing.
To the BPS: How it takes place [EAWPW]
f. BPS is in GOOD FAITH: where he thought honestly that - Engraftment
both the land and the materials belonged to him, BPS may - Attachment
claim from the LO a reasonable compensation for his - Weaving
labor. - Painting
g. BPS is in BAD FAITH: where he knew that the materials - Writing
belonged to someone else or that he had no right to the
land, he is not entitled to anything. He is liable to pay Legal Effects of Adjunction:
damages to the LO. - If effected in GOOD FAITH:
o Owner of the principal acquires the accessory6
OM acted in GOOD FAITH, Effects: o But the owner of the principal must indemnify the
To the OM: owner of the accessory for its value7

6 7
Following the principle that the accessory follows the principal Following the principle that no one shall unjustly enrich himself at the expense
of another
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 o NOTE: Good faith exists if the person responsible - Refers to the mixture of two or more things belonging to
therefor honestly thought that the movables different owners
involved really belonged to him - Commixtion: if the things mixed are solid
- If effected in BAD FAITH: - Confusion: if the things mixed are liquid
Bad Faith by the Bad Faith by the Legal Effects of Commixtion/Confusion
Owner of the Owner of the - Co-ownership: if the mixture taxes place by reason of the
Principal Accessory following:
Owner of the Owner of the 1. By will of both or all owners;
Accessory may Accessory: 2. By will of only one owner acting in good faith;
choose between the 1. Loses the thing 3. By chance/fortuitous event
following options: incorporated; - Each owner shall acquire a right proportional to the part
1. Payment for and belonging to him, bearing in mind the value of the thing
value of the 2. Shall have the mixed or confused
accessory + obligation to - If Caused by Only One Owner Acting in BAD FAITH:
damages; indemnify the Such owner loses the thing belonging to him and is obliged
2. Separation of owner of the to pay indemnity for damages.
the accessory in principal for the
any event + damages which 3. Specification.
damages might have been - Whenever the work of a person is done on the material of
suffered. another, such material, in consequence of the work itself,
NOTE: If both of them acted in bad faith, their respective undergoing a transformation. It is the imparting of a new
rights shall be determined as though both acted in good form to the material of another person (Rabuya, 2017)
faith Legal Effects of Specification
- If Worker Acted in GOOD FAITH: worker appropriates
Tests in Determining the Principal: [UGG] the thing as his own, indemnifying the owner of the
Ø First test: the principal is that to which the other has been material for its value
united as ornament for its use or perfection o XPN: When the material is more precious or
(Use/Perfection Test) valuable than the transformed thing in which case
Ø Second test: in case the first test is inapplicable, the thing the owner may: (1) appropriate the new thing to
which is of greater value (Greater Value Test) himself, paying indemnity for the value of the work;
Ø Third test: if both things are of equal value, the one of or (2) demand indemnity for the material
greater volume (Greater Volume Test) - If Worker Acted in BAD FAITH: Owner of the material
Ø NOTE: In paintings, sculptures, writings, printed matters, may:
engraving and lithographs, the board, metal, stone, 1. Appropriate the work for himself without paying
canvas, paper, or parchment shall be deemed as the anything to the worker;
accessory 2. Demand indemnity for the value of the material from
2. Commixtion or confusion; the worker; and
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 3. Collect damages. dominant estate to a public highway may be the
shortest.8
XI. EASEMENT RIGHT OF WAY 2. Voluntary: constituted by covenant, thus, does not require
that the dominant estate be isolated and without an
Essence of easement right of way: the power of the dominant adequate outlet to a public highway
owner to cross or traverse the servient tenement without being
prevented or disturbed by its owner. Extinguishment of Right of Way
- A limitation on the servient owner’s rights of ownership as 1. Involuntary/Compulsory:
it restricts his right to exclude others from his property a. When the owner of the dominant estate has joined it to
another estate abutting on a public highway and such
Types: public highway substantially meets the needs of the
1. Involuntary/Compulsory: must comply with the following dominant estate; and
requisites: [SINoLe] b. Where a new road is opened thereby giving access to
a. That the dominant estate is surrounded by other the isolated estate. (Rabuya, 2017)
immovables and has no adequate outlet to a public 2. Voluntary: by mutual agreement or renunciation of the
highway; owner of the dominant estate
o Estate need not be totally landlocked as the
isolation of the dominant estate is also dependent
on the particular need of the dominant owner
o The convenience of the dominant estate has never
been the gauge for the grant of compulsory right of
way
b. After payment of the proper indemnity;
o Indemnity consists in the value of the land occupied
+ amount of the damage caused to the servient
estate
c. That the isolation was not due to acts of the proprietor
of the dominant estate; and
o An owner cannot deliberately isolate his property
from a public highway then claim an easement of
way
d. That the right of way claimed is at the point least
prejudicial to the servient estate; and, insofar as
consistent with this rule, the distance from the

8
Rabuya (2017) citing Bacolod-Murcia Milling Co., Inc. v. Capital Subdivision,
Inc.
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