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Property Lec5

The document discusses key concepts relating to quieting of title actions under Philippine law. It defines a quieting of title action as one meant to remove a cloud or doubt over a property title. It notes that a cloud exists when there is an invalid or ineffective instrument, claim, or proceeding that may prejudice the title. The document outlines when a party has a right to have clouds removed, the reasons allowing quieting of title actions, and differences between actions when the plaintiff is or isn't in possession of the property. It also discusses related concepts like co-ownership and the sources and kinds of co-ownership under Philippine law.
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0% found this document useful (0 votes)
117 views48 pages

Property Lec5

The document discusses key concepts relating to quieting of title actions under Philippine law. It defines a quieting of title action as one meant to remove a cloud or doubt over a property title. It notes that a cloud exists when there is an invalid or ineffective instrument, claim, or proceeding that may prejudice the title. The document outlines when a party has a right to have clouds removed, the reasons allowing quieting of title actions, and differences between actions when the plaintiff is or isn't in possession of the property. It also discusses related concepts like co-ownership and the sources and kinds of co-ownership under Philippine law.
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QUIETING OF TITLE

Art. 476
KINDS OF ACTION

 REMEDIAL – action to remove the cloud or to quiet


title.

 PREVENTIVE – to prevent a future cloud or doubt.


QUIETING OF TITLE
CLOUD (doubt) on title exists due to:

a) An instrument (deed or contract) or record or claim or encumbrance or


proceeding.
b) Which is APPARENTLY valid or effective
c) BUT is, in truth and in fact, invalid, ineffective, voidable, or
unenforceable, or extinguished (or terminated) or barred by extensive
prescription.
d) AND may be prejudicial to the title.
QUIETING OF TITLE
Right to have the clouds removed
When disturbed by unfounded claim of others, owner may ask the court to:

a) Determine their respective rights;


b) Not only to place things in their proper place but also to make the one who
has no rights to said immovable respect and not to disturb the other (for the
benefit of both).
c) So that HE who has the right would see every cloud of doubt over the
property dissipated;
d) AND he could afterwards, without fear, introduce the improvements he may
desire, to use, and even to abuse the property as he deems best.
QUIETING OF TITLE
Reasons for allowing the action

a) The prevention of litigation;


b) The protection of the true title and possession; and
c) The promotion of right and justice.
Nature of the action
The result is not binding upon the whole world, therefore not “in
rem.” It is really “in personam” because it is enforceable only
against the defeated party or privies. (QUASI IN REM – Action “in personam”
concerning “real” property)
QUIETING OF TITLE

Action to prevent a Cloud


(actio QUIA TIMET)

To authorize an action to prevent a cloud being cast on title, it


must be made clear that there is a fixed determination on the part of
the defendant to create a cloud. The danger must NOT be
speculative.
QUIETING OF TITLE

PRESCRIPTION

 If plaintiff is in possession, action does NOT PRESCRIBE

 IfNOT in possession, may prescribe and maybe barred by


LACHES. 10 or 30 years prescription applies.
QUIETING OF TITLE
Art. 477
Necessity for Title of Plaintiff

 The plaintiff must either have the legal (registered) ownership


or the equitable (beneficial) ownership. Otherwise the action
will not prosper
QUIETING OF TITLE
PLAINTIFF OUT OF
PLAINTIFF IN POSSESSION POSSESSION

a) Period does NOT PRESCRIBE a) Period PRESCRIBES

b) Only right is to REMOVE or b) Aside from right to REMOVE or


PREVENT the cloud PREVENT cloud, he may also bring
the ordinary actions of ejectment,
publiciana or reinvindicatoria.
QUIETING OF TITLE
Art. 478
Instances when action may lie

a) When the contract, instrument or other obligation has ended.

b) When the supposed owner is barred by extensive prescription.


QUIETING OF TITLE
Art. 479
Plaintiff’s duty to make Reimbursement

 All benefits he may have received from defendant.


 For expenses that may have redounded to his benefit.

BASIS: Equity
QUIETING OF TITLE
Art. 480 Adoption of principles of general law

a) Examples regarding Defenses

 That the plaintiff does not have legal or equitable title.


 That defendant has acquired ownership by adverse possession.
 That the case has already been decided between the parties on the same issue – res judicata.
 That the defendant became the owner after the action has been filed, but before he filed his
answer (as by succession, donation, etc.).
 That the action has prescribed, the plaintiff being outside of possession.
QUIETING OF TITLE
Art. 480 Adoption of principles of general law

a) Examples regarding Reliefs Given

 Unauthorized mortgages may be cancelled.


 In an ordinary case, the defendant may, in his counter-claim ask for quieting of
title as against the plaintiff.
 Injunction may be availed of as such a prohibition to destroy certain properties
or together fruits from the land in question.
QUIETING OF TITLE
Art. 481 Some Rules of Procedure

 The venue of the action is determined by the location of the property and
NOT by residence of the parties;
 The process or notice should accurately describe the property and state, in
general terms, the nature and extent of the plaintiff’s claim;
 The suit cannot be brought in the name of one party for the use and benefit of
another BUT must be prosecuted in the name of the real party in interest;
 In this action, the actual possessor at the time of the filing of the action must
be respected in his possession until after there is an adjudication on the merits.
QUIETING OF TITLE

When action will NOT prosper

 If it is merely an action to settle a dispute concerning boundaries.


 If the case merely involves the proper interpretation and meaning of a
contract or instrument.
 If the action prescribes and the plaintiff is not in possession of the property.
 If the contract, instrument, etc. is void on its face.
Art. 482-483 Ruinous Building, etc. in Danger of Falling

RULE: Owner shall be obliged to demolish it OR to execute the NECESSARY work to


prevent it from falling.

NON-COMPLIANCE: Administrative authorities may order the demolition of the structure


at the expense of the owner, OR take measure to ensure public healty.

 COMPLAINANT: Must either have his property adjacent to the dangerous construction,
or must have to pass, by necessity, in the immediate vicinity.

 If the construction falls, OWNER would be liable for damages (Art. 2190)
RELATED CASES
1. Filipinas Eslon vs Heirs of Llanes(GR No. 194114); Mar 27, 2019
2. Cruz vs CA (517 Phil 572) GR No. 164797; Feb 13, 2006
3. Uy vs Del Castillo (814 Phil 61) GR No. 223610; Jul 24, 2017
4. Salvador vs Patricia (799 Phil 116) GR No. 195834; Nov 9, 2016
5. Sps Golez vs Heirs of Bertuldo (785 Phil 801) GR. No. 201289; May 30, 2016
6. Mananquil vs Moico (699 Phil 120) GR. No. 180076; Nov 21, 2012
7. Sps Pozon vs Lopez (GR. No. 210607); Mar 25, 2019
8. Heirs of Prodon vs Heirs of Alvarez (717 Phil 54) GR No. 170604; Sep 2, 2013
9. Residents of Lower Atab vs Sta Monica Industrial and Devt Corp (GR No. 198878);
Oct 15, 2014
10. Guntalilib vs Dela Cruz (789 Phil 287) GR No. 200042; July 7, 2016
11. Bernas vs Estate of Yu (GR. No. 195908); Aug 15, 2018
CO-OWNERSHIP
Art. 484
CONCEPTS

That state or situation where an undivided thing or right belongs to different persons.

The right of common dominion which two or more persons have in an ideal part of a
thing which is not physically divided.

It
is not a juridical person, nor is granted any form of juridical personality. Therefore, it
cannot sue. Co-owners litigate in their individual capacities.
CO-OWNERSHIP
Art. 484
WHAT GOVERNS CO-OWNERSHIP

Contracts

Special
 legal provisions

Provisions
 of the Title on Co-ownership (Title III, NCC)
SOURCES OF CO-OWNERSHIP

Law (party walls, party ditches, earnings of couple under void marriage or living

together without the benefit of marriage )
Contract (persons buying a property together and agree not to divide it in a period )

Chance (commixtion, confusion, hidden treasure)

Occupation or conquest (when wild beast is caught by several persons)

Succession
 or will (intestate heirs before partition)
KINDS OF CO-OWNERSHIP
 From viewpoint of SUBJECT MATTER
a) Co-ownership of undivided thing
b) Co-ownership of undivided right (i.e., inherited lease right)
 From viewpoint of SOURCE
a) Contractual co-ownership (i.e., agreement not to divide in 10 years)
b) Non-contractual co-ownership (if source if not contract)
 From viewpoint of the RIGHTS OF THE CO-OWNERS
a) Tenancy in common (ownership in common or joint co-ownership)
b) Joint tenancy (joint ownership)
DISTINCTIONS
TENANCY IN COMMON JOINT TENANCY
1. Involves a physical whole BUT there 1. Involves a physical whole, BUT there is
is IDEAL (abstract) division; each co- NO IDEAL (abstract) division; each and
owner being the owner of his own ideal ALL of them owns the WHOLE thing.
share.
2. Each co-owner may not dispose of his
own share without the consent of ALL the
2. Each co-owner may dispose of his rest, because he really has NO IDEAL
ideal or undivided share (without share.
boundaries) WITHOUT the other’s
consent.
3. If a joint-tenant dies, his share goes by
accretion to the other joint-tenants by
3. If a co-owner dies, his share goes to virtue of their survivorship.
his own heirs.
CHARACTERISTICS OF CO-OWNERSHIP

 There must be more than one subject or owner.


 There is one physical whole divided into IDEAL (undivided) shares.
 Regarding the physical whole, each co-owner must respect each other in the
common use, enjoyment, or preservation of the physical whole.
 Regarding the IDEAL share, each co-owner holds almost absolute control
over the same.
 It is not a juridical person, that is, it has no juridical personality.
 A co-owner is, in a sense, a trustee for the other co-owners.
CO-OWNERSHIP
Art. 485
SHARES IN BENEFITS AND CHARGES

The
 share in the benefits and charges is proportional to the interest of each. (If one co-
owner owns 1/4, he shares ¼ of the taxes )

Contrary
 stipulation is VOID.

Each
 co-owner shares proportionately in the accretion or alluvium of the property.
An increase in the area benefits ALL.
CO-OWNERSHIP
Art. 486
RIGHT TO USE PROPERTY OWNED IN COMMON

Each
 co-owner has the right to use the property for the intended purpose
(alterable by express or implied agreement) BUT

a) The interest of the co-ownership must not be injured or prejudiced; and

b) The other co-owners must not be prevented from using it.


CO-OWNERSHIP
Art. 487
RIGHT TO BRING AN ACTION IN EJECTMENT

A co-owner
 may defend in court the interests of the co-ownership. The case instituted by one was
really in behalf of ALL

REASON: A co-owner owns and possesses the WHOLE. Ejectment cases are urgent and summary
in character.

EJECTMENT covers: Forcible Entry, Unlawful Detainer, Accion Publiciana,


Accion Reinvindicatoria, Quieting of Title, Replevin
CO-OWNERSHIP
Art. 488

EXPENSES FOR PRESERVATION

A
 co-owner has the right to compel the others to share in the expenses for preservation
(necessary) even if incurred without prior notification to them.

To
 be exempt from reimbursement: By RENOUNCING (abandoning), for the benefit of the
others, so much of his undivided share as may be equivalent to his share of the expenses and
taxes.
CO-OWNERSHIP
Art. 488
WHAT RENUNCIATION REQUIRES

If
 the renouncing is in favor of the creditor, the creditor must give his consent (i.e.
where debtor gives something else in payment of his debts )

If
 the renouncing is in favor of the other co-owners, a novation (in the form of
substitution of the debtor) would result. The consent of both the co-owner and
creditor is necessary.
Renunciation cannot be IMPLIED by mere refusal to pay out of the proportionate share.
CO-OWNERSHIP
HOW MANY MUST GIVE CONSENT

a) Repairs, Ejectment action – ONE (Art. 489)

b) Alterations or acts of OWNERSHIP – ALL (Art. 491)

c) Useful improvements, luxurious embellishments, administration and


better enjoyment – FINANCIAL MAJORITY [not numerical] (Art. 489 and
Art. 492)
CO-OWNERSHIP
Art. 490
PERPENDICULAR CO-OWNERSHIP
R.A. No. 4726 (The Condominium Act)

Proportionate
 contribution is required for the preservation of: main walls, party walls the
roof, and other things used in common.

Each
 floor owner must bear the expenses of his floor.

Stairs
 are to be maintained, from story to story, by the users.
Ground floor, if there is any, is different from the first story.

CO-OWNERSHIP

CONDOMINIUM

Notes:

The
 buyer of a unit in a condominium acquires ownership over the unit only
after he has paid in full its purchase price.

The
 ownership of a condominium unit is the “separate interest” of the owner
which makes him automatically a shareholder in the condominium.
CO-OWNERSHIP
Art. 491
ALTERATIONS
Whether or not it brings common benefits
Require consent of ALL

Concept: Alteration is a change


which is more or less permanent;

which changes the use of the thing; and

which prejudices the condition of the thing or its enjoyment by the

others.
CO-OWNERSHIP
ALTERATIONS

Sale,
 Donation, Mortgage, etc. of the WHOLE property.

Sale,
 Donation, Mortgage, etc. of a PART of the property with definite boundaries.
Voluntary easement (Art. 691 [1]).
Lease
 of real property if recorded(registered); or for more than one year (whether
recorded or not).
Construction of a house on a lot common.

Impliedly, contracts of long duration.

CO-OWNERSHIP
ILLEGAL ALTERATIONS
Made
 without the express or implied consent of the other co-owners.

EFFECTS:
The co-owner responsible may lose what he has spent;

Demolition can be compelled;

He would be liable for losses and damages;

BUT whatever benefits the co-ownership derives will belong to it; and

In case a house is constructed on common lot, ALL the co-owners will be entitled

to a proportionate share of the rent.
CO-OWNERSHIP
Art. 492
ADMINISTRATION AND BETTER ENJOYMENT

ACTS OF ADMINISTRATION OR MANAGEMENT


Do not involve an alteration;
May be renewed from time to time
Have transitory effects (do not bind the co-ownership for a long time in the future);
Do not give rise to real right over the thing owned in common;
Do not affect the substance or nature of the thing;
For the common benefit of all the co-owners and not for only one or some of them.
CO-OWNERSHIP
RIGHT OF FINANCIAL MAJORITY
LIMITATIONS:
Before a decision is made, there should first be a NOTICE to the minority so that they can
be heard.
The majority would be justified in proceeding only when the urgency of the case and the
difficulty of meeting with them render impracticable the giving of such notice.
The minority may APPEAL to the court against the decision of the majority when:
a) There is no real majority;
b) The resolution is seriously prejudicial to the rights of an individual co-owner
c) The majority refuses to correct abuse of administration or maladministration
d) When the minority is made the victim of fraud
e) When an alteration (instead of mere act of administration) is agreed upon
CO-OWNERSHIP
Art. 493
RIGHT TO IDEAL OR PROPORTIONATE SHARE

RULES:

a)Each
 co-owner has FULL ownership of his part, and of his share of the fruits
and benefits;

b)
 Therefore, he may ALIENATE, ASSIGN or MORTGAGE his IDEAL ( not
one with boundaries) share. This is without prejudice to the exercise, by the others, of
their right of LEGAL REDEMPTION in the proper case.
CO-OWNERSHIP
Art. 494
PARTITION ALLOWED AT ANY TIME

RULES:

a)No
 co-owner is obliged to remain in the co-ownership.

b) The
 right to demand partition is imprescriptible .

Both
 real and personal properties may be the object of partition.
CO-OWNERSHIP
Art. 494
WHEN PARTITION NOT ALLOWED
a) If, by agreement (i.e., 10 years) partition is prohibited.
b) When prohibited by a donor or testator ( for a period not exceeding 20 years) – from
whom the property came.
c)When prohibited by law (conjugal partnership property)
d) When physical partition would render the property unserviceable(the property
may be allotted to one co-owner who shall indemnify the others).
e) When the legal nature of the common property does not allow partition (i.e.
party walls).
CO-OWNERSHIP
RULE: Co-owner cannot acquire the whole property against the other co-owners by prescription.
EXCEPTION: Repudiation of co-ownership
CONDITIONS:
 a)He must make known to other co-owners that he is definitely repudiating the co-ownership
(claiming complete ownership over the entire property );
 b) Evidence of repudiation and knowledge on the part of the others must be clear and convincing;
 c) He must have continuous, open, peaceful, public, adverse possession for the required period.
The period pf prescription (Statute of Limitations) starts to run from such repudiation of co-ownership.
CO-OWNERSHIP
Art. 495

PARTITION OF ESSENTIALLY INDIVISIBLE OBJECT

If
 physical partition is not practicable, co-ownership may end under
Art. 498

Example: Automobile
CO-OWNERSHIP
Art. 496
VARIOUS KINDS OF PARTITION

a) From viewpoint of cause: Extra-judicial, Judicial


b)From viewpoint of permanence: Provisional (temporary), Permanent
c) From viewpoint of subject matter: Partition of Real property, Partition of
Personal Property
d) From viewpoint of forms and solemnities: Partition in a Judicial decree,
Partition duly registered in the Registry of Deeds, Partition in a public
instrument, Partition in private instrument, and oral partition
CO-OWNERSHIP
Art. 497

RIGHTS OF CREDITORS IN PARTITION

ILLUSTRATION: X, Y, Z are co-owners of a lot. They are indebted to A for


improvements thereon. In the partition proceeding, A is allowed to participate. If he
refuses, he is NOT ALLOWED to impugn a partition already executed, unless:
He was defrauded; or
He has previously presented a formal opposition to prevent it.
CO-OWNERSHIP
Art. 498

PARTITION OF ESSENTIALLY INDIVISIBLE OBJECT

RULE:
If co-owners cannot agree that it be allotted to one of them who shall

indemnify the others, it shall be SOLD; its proceeds distributed.
CO-OWNERSHIP
Art. 499

PROTECTION OF THIRD PERSONS’ RIGHTS

THIRD PERSONS: All those who did not, in any way, participate or
intervene in the partition.
They shall retain the rights of mortgage, servitude, or any other real/personal
rights belonging to them prior to partition.
CO-OWNERSHIP
Art. 500 - 501

EFFECTS OF PARTITION

a) Mutual accounting for benefits received (Art 500).


b) Mutual reimbursement for expenses (Art 500).
c) Indemnity for damages (negligence or fraud) (Art 500)
d) Reciprocal warranty for:
Defects of title (eviction)
Quality (hidden defects) Art. 501
HOW CO-OWNERSHIP IS EXTINGUISHED

a) Judicial partition.
b) Extra-judicial partition.
c) When, by prescription, one co-owner has acquired the whole property by repudiation and
adverse possession
d) When a stranger acquires by prescription the thing owned in common.
e) Merger in one co-owner.
f) Loss or destruction.
g) Expropriation (indemnity will be distributed accordingly).
RELATED CASES
1. Malilin vs Castillo (389 Phil 153) GR No. 136803; Jun 16, 2000
2. Ocampo vs Ocampo (471 Phil 519) GR No. 150707; Apr 14, 2004
3. Lacbayan vs Samoy (661 Phil 306) GR No. 165427; Mar 21, 2011
4. Ining vs Vega (716 Phil 237) GR No. 174727; Aug 12, 2013
5. Aromin vs Floresca (528 Phil 1165) GR. No. 160994; Jul 27, 2006
6. Vda. De Figuracion vs Gerilla (703 Phil 455) GR. No. 151334; Feb 13, 2013
7. Balus vs Balus (624 Phil 172) GR No. 168970; Jan 15, 2010
8. Inalvez vs Nool (784 Phil 653) GR No. 188145; Apr 18, 2016
9. Logrosa vs Sps Azares (GR No. 217611); Mar 27, 2019
10. Go vs Go (616 Phil 740) GR No. 183546; Sep 18, 2009
11. Ecarma vs CA (786 Phil 542) GR No. 193374; June 8, 2016
12. Ignacio vs Reyes (813 Phil 717) GR. No. 213192; July 12, 2017

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