PROPERTY

Definition:
Property - things which are capable of
satisfying human wants and are susceptible
of appropriation.
Appropriation equivalent to occupation

THING vs. PROPERTY

Traditional:
Property are those things which are already
possessed and found in the possession of a
man, while things are all that can be
possessed.
NCC:
Things and property are identical to each
other

Requisites of property
Utility capable of satisfying human needs
(i.e. food, shelter, clothing)
Individuality / substantivity quality of having
existence apart from any other thing or property
(i.e. parts of the human body, -only when separated
from the body of the person to whom they belong)
Appropriability susceptibility of being appropriated by
men. Hence, diffused forces of nature in their totality
cannot be considered as property.
(i.e. air, lightning)

An object cannot be considered as

property
because
of
PHYSICAL
IMPOSSIBILITY (res communes) or LEGAL
IMPOSSIBILITY (i.e. human body)
Res Communes common things which
are NOT capable of appropriation in their
entirety. (i.e. air, lightning) ALTHOUGH they
may
be
appropriated
under
certain
conditions in a limited way (i.e. oxygen,
electricity).

The Human Body

During Lifetime:
G.R.: it is NOT a property.
XPN: within the limits prescribed by law
(R.A. 7719 voluntary blood donation)
After Death:
G.R.: still NOT a property by reason of public policy
XPN: R.A. 349 use of human organs or any portion of
the human body for medical, surgical or scientific
purposes under certain conditions.
R.A. 7170 donation of human organs after death or for
transplant.

Res Nullius that which has no owner

because it has not yet been appropriated
(i.e. hidden treasure, wild animals, fish in the
ocean)
Or because it has been lost or abandoned by
the owner.
It constitutes property as long as it is
susceptible of being possessed for the use of
man.
Res alicujus objects already owned or
possessed by men.

CLASSIFICATION OF PROPERTY
TESTS:
a. Immovable cannot be transferred from
place to place
b. Movable excluded from the enumeration
of immovable and can be moved from
place to place without damage thereto
c. Mixed/semi-movable those which move
by themselves (both immovable and
movable in nature)

IMMOVABLE PROPERTY
1.

By Nature

it cannot be carried from place to place

a. Lands, buildings, roads and constructions
(adhered to the soil)
b. Mines, quarries and slag dumps, while the
matter thereof forms part of the bed, and waters
either running or stagnant.
.
The materials constituting a building which is the
subject of demolition are movable
.
A structure which is merely superimposed, not
adhered to the soil may be considered movable.

2. By Incorporation
essentially moves but are attached to an immovable in a fixed manner to be an
integral part thereof.
a. Constructions (adhered to the soil)
b. Trees, plants and growing fruits while they are attached to the land and form an
integral part of an immovable.
c. REX VINTA: everything attached to an immovable in a fixed manner in such a
way that it cannot be separated therefrom without breaking the material or
deterioration of the object.
d. Animal houses or breeding places, in case the owner has placed them or
preserve them with the INTENTION to attach them permanently to the land, and
the animals in these places.
e. Statutes, reliefs, paintings or other objects for USE or ORNAMENTATION, placed
in a building or on lands, by the OWNER of the immovable in such a manner
that it reveals the intention to attach them permanently to the tenements.
.
These are immovable both by incorporation and by destination. As
distinguished from REX VINTA, these objects become immobilized only when
placed in the tenement by the OWNER of such tenement. unless by an agent.
.
Trees and plants only when they are attached to the land.
G.R. Growing crops are considered REAL PROPERTY
XPN: the moment they are detached or uprooted from the land.
XPN to the XPN: uprooted timber when it is the natural product of the
tenement.

BY DESTINATION

a.

b.

c.

d.
e.

Essentially movables but are placed in an immovable as an added utility.

Indirect Utility: Statutes, reliefs paintings or other objects for USE or
ORNAMENTATION, placed in a building or on lands by the OWNER of the
immovable in such a manner that it reveals the INTENTION to attach them
permanently to the tenements.
Direct Utility: Machinery, instruments or implements INTENDED by the owner
of the tenement for an INDUSTRY or WORKS which may be carried on in a
building or land, AND which tend directly to meet the needs of such industry
or works. (i.e. machineries of breweries in liquor factory)
Animal houses or breeding places, in case the owner has placed or preserved
them with the INTENTION to attach them permanently to the land, and the
ANIMALS in these places.
Fertilizers ACTUALLY used on a piece of land.
Docks and structures which, though floating, are intended by their nature and
object to remain at a fixed place on a river, lake or coast.
Machinery which is movable in its nature only becomes immobilized when
placed in a plant by the owner of the property or plant, but not when so
placed by a tenant, a usufructuary, or any person having only temporary
right, unless such person acted as the agent of the owner. Davao Sawmill v.
Castillo

BY ANALOGY

a.
b.
c.

Classified by express provision of law

because it is regarded as united to the
immovable property.
Contracts for public works.
Servitudes
Real rights over immovable property.

Classification
As to nature
a. Res nullius
belonging to no one wild animals
b. Res communes
belonging to everyone wind, sunlight, air
c. Res alicujus
belonging to someone shares of stock
1.

2. As to mobility
b. movable/personal laptop
c. Immovable/real land
3. As to ownership
d. Public sea
e. Private car

4. As to alienability
a. Within the commerce of men residential building
b. Outside the commerce of men public plaza
5. As to existence
c. Present
d. Future
6. As to materiality
e. tangible/corporeal paper
f.
Intangible/incorporeal rights or credit
7. As to dependence
g. Principal
h. Accessory
8. As to substitution
i.
Fungible
capable of substitution of the same kind and quality 10 bottles of wine
b. Non-fungible
incapable of substitution; identical thing must be returned or given 10 bottles of
wine in my cabinet

MOVABLE PROPERTY
All things which can be transported from
place to place without impairment of the
real property to which they are fixed.
Special: real property which by any special
provision of law is considered as personalty.
(i.e. chattel mortgage law growing fruits
Shares of stocks although they may have
real estate

IMPORTANCE OF CLASSIFICATION
PERSONALTY vs REALTY
1.
a.
b.

In Acquisitive prescription
Movable 4-8 yrs
Immovable 10-30 yrs

2. As object of accessory contract

c. Movable pledge and chattel mortgage
d. Immovable real estate mortgage
3. As to formal requirements in donation
e. Movable exceeds 5000, must be in writing
f.
Immovable always in writing and must be accepted
4. As to criminal law
g. Movable theft, robbery
h. Immovable usurpation of real property

What are the different classes of

immovables?
N-I-D-A
a. Immovables by Nature
b. Immovables by Incorporation
c. Immovables by Destination
d. Immovables by Analogy

Q. A constructed his building on a piece of

land belonging to B, to whom he (A) pays a
monthly rental of P500.00. Is the building
real or personal property?
A. The building is a real property. The building
is a real property by incorporation within
the meaning of No. 1 of the Art. 415 of the
NCC

Q:
To secure the payment to B of a loan, the
owner of a lot, executed a chattel mortgage
(CM) on the building he erected thereon as
well as on some newly bought machinery
stored therein. Thereafter, a judgment was
rendered against A in favor of C who had
the building and machinery levied upon to
satisfy the judgment. Is the CM binding on
C?
Explain.
(1983
BAR)

A. The CM on the building is not binding

on C. The CM on the machinery is binding.
The CM on the building is not binding on C, it is crystal
clear. The CM on the building is void from the very
beginning. Under the CM Law, on chattels or personalty
may be the object of CM. A building is a real property.
The machineries are merely stored by A in his building.
Machineries are classified as realty only when they are
intended by the owner of the tenement for an industry or
work which may be carried on in a building or on a piece
of land, and which tend directly to meet the needs of the
industry or work. Therefore, they are still classified as
chattels or personalty for the purpose of the CM law.

Q: As A was a concrete building on his own

lot, he also erected wooden scaffoldings on
which plumbers and carpenters may climb.
a. What kind of property are the wooden
scaffoldings and why?
b. What kind of property is the building
constructed on the lot?

Ans.
a.

Wooden scaffoldings personalty

they are not permanent and they cannot be classified as
constructions adhering to the land and forming an
integral part thereof since they are MERELY
SUPERIMPOSED on the land.

b. In the enumeration of properties under art. 415 of the

NCC, the inclusion of building separate and distinct
from the land, in the said provision of law, can only
mean that a building is by itself an immovable property.

Building is immovable by incorporation

A house (or a building) is immovable by
incorporation. It is classified as realty by
reason of its adherence to the soil on which
it is built.

Building treated separately from land

Can a building be treated as a

personal property?
Ans.
Yes. Doctrine of estoppel
although there is no specific statement
referring to the subject house as personalty,
yet by ceding, selling, or transferring a property
by way of chattel mortgage could only have
meant to convey the house as chattel or at
least, intended to treat the same as such, so
that they should not now be allowed to make
an inconsistent stand by claiming otherwise.
Tumalad v. Vicencio 41 SCRA 143 (1971)

Tests of Movable Character

1.

Test by EXCLUSION
Whether the property was not enumerated
in art. 415 (expression unius est exclusio
alterius)

2. Test by DESCRIPTION
Whether the property can be transported or
carried from place to place
.

Test by EXCLUSION is superior

Property in relation to whom it

belongs
Art. 419. Property is either of public dominion or of private
ownership.
Property of Public Dominion, defined:
It is not owned by the State but pertains to the state, which, as
territorial sovereign, exercises certain juridical prerogatives over
such property.
The ownership of such properties is in the social group, whether
national, provincial or municipal.

Since the ownership of public dominion belong to the public in

general and not to the state, the latter may not make them object
of commerce unless they are properly converted into patrimonial
property.

Q: Is money considered a merchandise?

A:
G.R.
No. In domestic circulation, money is a
LEGAL TENDER and NOT MERCHANDISE.
XPN:
When attempted to be exported or
smuggled, money is considered as
merchandise or commodity subject to
forfeiture.

KINDS of PUBLIC
DOMINION
1.
2.
3.

For Public Use (Art. 420[1], NCC)

For Public Service (Art. 420[2], NCC)
For the development of national wealth
(Art. 424[1], NCC) (420[2], NCC)

* Property is presumed to be State property in

the absence of any showing to the
contrary. (Regalian Doctrine)

PATRIMONIAL PROPERTY OF THE

STATE

Those owned by the State NOT devoted to

public use, public service or the
development of national wealth.
It is the property owned by the State in its
private or proprietary capacity
May be acquired by private individuals or
corporations thru prescription
May be an object of ordinary contract

Until a formal declaration on the part of the

government, through the executive or
legislative department, to the effect that the
land in question is no longer needed for coast
guard service, for public use or for special
industries, they continue to be part of the
public domain, not available for private
appropriation or ownership. (Ignacio v. Dir. Of
Lands)
It is not necessary, therefore, that a plaza in
order that it be considered property for public
use. It is sufficient that it be intended to be
such. (Manila Lodge No. 761 vs CA)

OWNERSHIP
Ownership independent and general right of
a person to control a thing particularly in his
possession, enjoyment, disposition, and
recovery. Subject to no restriction except
those imposed by the State or private
persons.
Title the foundation of ownership of
property.

KINDS OF OWNERSHIP
1.
2.

3.
4.

Full includes all rights of owner

Naked right to use and fruits has been
denied
Sole only one person
Co-ownership two or more owners

ACTIONS TO RECOVER OWNERSHIP

AND POSSESSION: REAL PROPERTY
Accion Interdictal summary action to recover physical
possession, and not juridical possession nor ownership
a. Forcible Entry action for recovery if material/physical
possession was deprived thereof by force, intimidation,
strategy, threat or stealth (FISTS)
b. Unlawful Detainer possession by a landlord, vendor,
vendee or other person of any land or building is being
unlawfully withheld after the expiration or termination of the
right to hold possession, by virtue of any contract.
1.

2.

3.

Accion Publiciana plenary action to recover the better right

of possession
Accion Reivindicatoria Action to recover ownership over
real property.

Doctrine of Self-Help
Art. 429. The right of the owner or lawful possessor to
exclude any person from the enjoyment and disposal of
the property by the use of such force as may be
necessary to repel or prevent actual or threatened
unlawful physical invasion or usurpation of his property.
Requisites:
1. He must be the owner or the lawful possessor.
2. Force used is reasonably necessary to repel or prevent
an invasion or usurpation; otherwise he shall be liable
for damages.
3. No delay
4. Actual or threatened physical invasion or usurpation

Art. 431 The owner of a thing cannot make use thereof in such
a manner as to injure the rights of a third person.
The continued occupation by petitioners of the two lots
belonging to private respondents, despite the expiration of
the lease contracts over the same, petitioners had become
undesirable lessees. However, it was improper for private
respondents to resort to fencing their properties in order to
remove petitioners from the premises in light of the clear
provision of Art. 536 of the NCC on the matter. (Villafuerte vs
CA, 2005)
XPN: State of Necessity
There is no cause of action for acts done by one person upon
his own property in a lawful and proper manner, although
such acts incidentally cause damage to another because the
inconvenience arising from said use can be considered as a
mere consequence. (Sps. Custodion vs CA, 1996)

DOCTRINE OF STATE OF
NECESSITY
Doctrine of incomplete privilege
Art. 432
Requisites:
1. Interference is necessary
2. Damage to another is greater than damage
to property
3. Imposed by the owner (i.e. lease)
4. Imposed by the grantor

SURFACE RIGHT
Art. 437 The owner of a parcel of land is the
owner of its surface and of everything under
it, and he can construct thereon any works or
make any plantations and excavations which
he may deem proper.
Limitations:
1. Servitudes
2. Special laws and ordinances
3. Reasonable requirements of aerial navigation
4. Rights of third persons

QUIETING OF TITLE
REQUISITES:
1. The plaintiff or complainant has a legal or an equitable
title to or interest in the real property subject of the
action
2. There is cloud on the title
3. The deed, claim, encumbrance or proceeding claimed to
be casting cloud on his title must be shown to be in fact
invalid or inoperative despite its prima facie appearance
of validity or legal efficacy.
.
.

The plaintiff need not be in possession of the property

If he is however in possession, the action is
imprescriptible

HIDDEN TREASURE
G.R.: hidden treasure belongs to the owner of the land, buildings
or other property on which it is found.
XPN: If finder is not the owner of the land, finder is entitled to
of the treasure if:
1. Made in the property of another
2. Made by chance
3. Finder is not a trespasser/agent of the landowner
4. Finder is not a co-owner of the property where it is found
5. Finder is not married under the absolute community or the
conjugal partnership system (otherwise his/her share belongs
to the community)
XPN to the XPN: if the finder is a trespasser, he shall not be
entitled of any share.

CO-OWNERSHIP
Art. 486
the defendant, therefore, in occupying with her husband
the upper floor of the said house, did not injure the
interests of her co-owner, her sister, nor did she prevent
the latter from living therein, but merely exercised a
legitimate right pertaining to her as co-owner of the
property Pardell v. Bartolome
Limitations on the right to use:
1. Must be in accordance with the purpose
2. Must be without prejudice to the rights of co-owners
3. Must not prevent other co-owners from using the thing
according to their own right.

Art. 487. Any one of the co-owners

may bring an action in ejectment

action must be instituted for all co-owners

Also available even against co-owners
Adverse judgment cannot prejudice the
rights of other co-owners. However, any
judgment in favor of the co-owner will
benefit the others

Art. 493
Right to alienate a co-owners pro-indiviso share is inherent
Alienation or mortgage shall be limited to the portion as
may be allotted to a co-owner
LEGAL REDEMPTION
Requisites:
1. There must be co-ownership
2. One of the co-owners sold his right to a stranger
3. The sale was made before the partition of the co-owned
property
4. The right of redemption must be exercised by one or
more co-owners within a period of 30 days to be counted
from the time that he or they were notified in writing by
the vendee or by the co-owner vendor.
5. The vendee must be reimbursed for the price of the sale.

Accession
Accession is not a mode of ownership. It
is a mere concomitant right of ownership. It
is a mere incident or consequence of
ownership.

The law does not define accession, it merely

tells us what accession does.

Two Kinds of Accession

A. Accession discreta
The right pertaining to the owner of a thing over everything produced
thereby (art.442)
1. Natural fruits the spontaneous products of the soil, and the young
and other products of animals.
B owns a male dog, M owns a female dog. The 2 dogs breed. To
whom does the litter go? To the female since birth follows the womb.
2.
3.

Industrial fruits those produced by land through cultivation or labor

Civil fruits rents of buildings

B. Accession continua

The right pertaining to the owner of a thing over everything that is

incorporated or attached thereto either naturally or artificially.

Q: Manila Petroleum Co. (MPC) owned and operated a

petroleum facility off the coast of Manila. The facility
was located on a floating platform made of wood and
metal, upon which was permanently attached the
heavy equipment for the petroleum operations and
living quarters of the crew. The floating platform
likewise contained a garden area, where trees, plants
and flowers were painted. The platform was tethered
to a ship, the MV 101, which was anchored to seabed.
a.
b.

c.

Is the platform movable or immovable property?

Are the equipment and living quarters movable or
immovable?
Are the trees, plants and flowers immovable or
movable property?

Ans.
a.

b.

c.

The platform is an immovable property by destination. It

was intended by the owner to remain at a fixed place on
a river (Fels Energy vs Province of Batangas)
With respect to the equipment, the same is a real
property. It is intended to meet the needs of the
industry being undertaken by MPC. The equipment
partakes of the nature of the immovable upon which it
has been placed.
The trees, plants and flowers are also immovable,
having been planted in the garden area, under Art. 415
(2) which provides that trees, plants, and growing
fruits, while they are attached to the land or form an
integral part of the immovable are likewise immovable
property.

Q: A leased a building to B for a term of 10

years. B established a shoe factory in the
building and as a result he installed certain
machineries therein. Are such machineries
movables or immovables? Reasons.
Suppose that in the above problem, the
stipulation in the contract is to the effect
that the machineries to be installed by B
shall belong to A upon the expiration of the
lease, would such stipulation make any
difference in your answer? Reasons

Ans.
The machineries are movables. In order that machineries can
be classified as immovables within the meaning of No.5 of Art.
415 of the NCC, it is essential that the following requisites must
concur:
1. The machinery must be placed by the owner of the tenement
2. An industry or works must be carried on in the tenement
3. The machinery must be intended for such industry or works.
4. The machinery must tend directly to meet the needs of such
industry or works.
It is clear from the facts stated in the problem that the
machineries are movables since they were installed by the
lessee, B, and not by A. (see Davao Sawmill case)
Yes it would make a difference in my answer. The machineries
in such case would then be classified as immovables. It is
evident that B would then be considered as the agent of A.

Q:
A was the owner of a beautiful painting
with a frame, which he bought in Florence,
Italy. As his house was not yet habitable, A
gave the painting to his neighbor and friend
B, who in turn attached the painting in the
meantime that As house was being
constructed, to the wall of his house. What
kind of property is the painting while in the
of B? Reasons.

A:
The painting, at this stage, can be
classified only as movable or personal
property. Under no. 4 of art.416 of the NCC,
in order that paintings may be classified as
immovable property, it is essential that they
should have been placed in a building for
use or ornamentation in such a manner that
it reveals the intention to attach them
permanently to the tenement. Here, the
attachment is merely temporary, not
permanent.

Q:
In order to secure the payment of a debt of
P100,000, A, the debtor, executed a chattel
mortgage in favor of B, the creditor, over a house
which he had constructed on a rented lot belonging
to C. In the deed of chattel mortgage, the parties
expressly stated that As house is a chattel. Because
of As inability to pay the debt when it became due
and demandable, B finally decided to foreclose the
mortgage. A contends that B cannot foreclose the
mortgage on the ground that the chattel mortgage
contract is void under the law, a building is real
property and not personal property, and therefore,
cannot be the subject matter of a chattel mortgage
contract. Is the contention correct? Reasons.

A:
As contention is not correct. Since the
contracting parties had voluntarily entered
into the contract, neither of them should
now be allowed to impugn its validity. It
must be observed, however, that this view
that parties to a contract of chattel
mortgage may agree in a contract, is good
only insofar as the contracting parties are
concerned. It is based, partly, upon the
principle of estoppel.

1st case: LO is the B/P/S using the materials of

another.
Land Owner is the Builder / Planter Owner of the Materials
/ Sower
Good Faith
Can acquire the materials provided he
pays for the value thereof.

Good Faith
He has the:
1. Right to receive payment for value
of the materials; OR
2. Limited right of removal if there
would be no injury to work
constructed, or w/o plantings or
constructions being destroyed
(Art.447)

Baf Faith

Good Faith

Can acquire the materials provided he

pays the value thereof PLUS damages

1. Right to receive payment for value

of materials PLUS damages
2. Absolute right of removal of the
work (whether or not substantial
injury is caused) PLUS damages

Good Faith

Bad Faith

Can acquire the materials w/o paying

for the value thereof and entitled to
consequential damages due to the
defects of the materials

Loses the materials completely without

receiving any indemnity

Problem 1.
May the LO B/P/S choose to return the materials instead of
reimbursing their value even w/o the consent of the owner of the
materials?
Ans.
It depends:
1. If no damage has been made to the materials. may be returned
at the LOs expense
2. If damage has been made to the materials.
- They cannot be returned anymore.
Problem 2.
Suppose the LO-B/P/S has already demolished or removed the
plantings, constructions or works, is the owner of the materials
still entitled to claim them?
Ans.
There are different opinions on this matter but the best result
seems to be the OM is still entitled to get them since the law
makes no distinction. Moreover, the land owner may insist on
returning them for evidently there is no accession.

2ND CASE: B/P/S builds, plants, sows on anothers land using

Land Owner
B/P/S is the OM
his own materials
GF:
1. Can appropriate whatever has been b/p/s
after paying indemnity w/c includes
necessary and useful expenses. OR
2. To obligate the b/p/ to pay the price of the
land and the sower to pay the proper
rent. However, the land owner cannot
obligate the b/p to buy if the value of the
land is more than the building or planting.

GF:
Entitled to receive indemnity. And having the
right of retention over the land w/o having to
pay rents until the LO pays the indemnity
Can remove useful improvements provided it
does not cause any injury
If he does not buy the land because of option
2 of LO. He shall pay reasonable rent if the LO
does not choose option 1, otherwise he can
be ejected by LO.
If he cannot pay the purchase price, LO can
require him to remove what has been built.

BF:
To acquire what has been built, planted or
sown by paying the indemnity plus damages.

Gf:
If LO acquires, he must be indemnified plus
damages.
If LO does not acquire, he can remove
whatever has been built whether or not it will
cause damage
If LO does not acquire, he cannot insist on
purchasing the land.

GF:
1. To acquire whatever has
been built, planted or sown
w/o paying for indemnity
except necessary expenses
for the preservation of the
land only and luxurious
expenses if he decides to
acquire the luxurious
ornaments plus damages.
2. Compel the builder/planter
to pay the price of the land
and the sower to pay the
proper rent plus damages.
3. To demand the demolition
or removal of the work at
the expense of the
builder/planter/sower

BF:
Loses what has been built,
planted or sown.

BF
Treat as if both are in goodfaith

BF
Treat as if both are in goodfaith

Entitled to reimbursement for

necessary expenses for the
preservation of the land but
has no right of retention.
Not entitled to
reimbursement for useful
expenses and cannot remove
the useful improvements
even if the removal will not
cause injury.

3rd case: B/P/S builds, plants, sows on anothers land with materials owned by
third person.

LAND OWNER

BUILDER/PLANTER/S
OWER

OWNER OF THE
MATERIALS

GF:
To acquire whatever
has been built,
planted or sown
provided he pays the
indemnity

GF:
To receive indemnity
from the LO and has
the right of retention

GF:
To receive indemnity
from the b/p/s who is
principally liable. If
b/p/s is insolvent, then
demand from LO but
has no right of
retention

To buy the land

To oblige the b/p/s to

buy the land unless
the value is
considerably more
than the value of the
building or trees.
GF:
same

Material right lien

against the b/p/s for
the payment of the
value of the materials
GF:
same

BF:
Whatever is the choice
of the landowner
1. Loses the materials
in favor of the b/p/s
2. No right to receive
indemnity from the

GF:
To acquire whatever
has been built

BF:
Loses what has been
built but he is
entitled to be
To oblige the builder
indemnified for
to pay the price of the necessary expenses
land and the sower
and luxurious
for the proper rent
expenses should the
LO acquire luxurious
To demolish or
ornaments
remove what has
been built or planted
Has no right of
removal

BF:
(Since both b/p/s and
the OM are in BF,
treat them as if both
in GF)
Whatever is the
choice of the LO, he
has the right to
receive indemnity for
the value of the
materials from the
B/P/S only. The LO has
no liability whatsover.

Pay the price of the

land
Cannot do anything
about it so he must
remove
BF
To acquire what has
been built, planted or
sown by paying the
indemnity plus damages
to B/P/S

GF
To receive indemnity
from LO
Cannot insist on
purchasing the land

GF:
To receive indemnity for
value of the materials
from B/P/S or from LO in
case B/P/S is insolvent

Problem:
A promised to donate a property to B. B
constructed his house thereon before the
donation. If the property was not donated to
him, is B considered a possessor in goodfaith?
Ans.:
No. The mere promise to donate the property
to B cannot convert him into a Builder in good
faith for at the time the improvement was
built, such promise was not yet fulfilled. It
was a mere expectancy of ownership that
may or may not be realized. (Pada-Kilario v.
CA, 2000)

Problem:
If the owner of the land makes thereon any building,
planting or sowing with materials of another, what are
the rights and obligations of the parties?
Ans.:
The owner of the land who makes thereon, personally
or through another, plantings, constructions or works
with the materials of another shall pay their value; and
if he acted in bad faith, he shall also be obliged to the
reparation of damages. The owner of the materials
shall have the right remove them only in case he can
do so without them being destroyed. However, if the
landowner acted in badfaith, the owner of the
materials may remove them in any event, with a right
to be indemnified for damages. (art.447, NCC)

Problem:
A plants in bad faith on his own land, palay
seeds belonging to B. What are the rights and
obligations of the parties.
Ans.:
A shall pay to B the value of the palay seeds
and at the same time, indemnify him for any
damages which he may have suffered. B on the
other hand, may choose between demanding
from A the payment of the value of the seeds
plus damages or the removal of the palay
seeds with or without injury to the planting,
plus damages.

Problem:
A built a garage on a lot adjoining his property knowing
it to belong to B. B, who was aware thereof, offered no
objection. What are the rights and obligations of the
parties.
Ans.:
Since both A and B had acted in bad faith, their rights
and obligations shall be the same as if they had both
acted in goodfaith. Consequently, B shall have the right
to appropriate the garage as his own, after payment of
necessary and useful expenses to A or to oblige A to
pay the price of the land. It must be noted, however,
that A cannot be obliged to buy the land if its value is
considerably more than that of the garage. In such
case, he shall merely pay reasonable rent, if B does not
choose to appropriate the garage.

Problem:
Believing that a piece of land belonged to him, A erected
thereon a building using materials belonging to C. B, the owner
of the land, was aware of the construction being made by A, but
did not do anything to stop it. Discuss the rights and obligations
of the parties.
Ans.:
A can choose between reimbursement by B of the value plus
damages or removal of the materials. It must be observed that
B is in bad faith. The rights of B, owner of the land, will depend
upon the option selected by A. If a decides to demand
reimbursement of the building plus damages, of course, B
becomes the owner of the building. If a decides to remove the
materials, B does not become the owner. In the case of C, the
OM, assuming that he was in goodfaith, obviously he can
proceed against A for value of his materials and against B for
damages. If A cannot pay him the value of his materials, he (C)
can then proceed against B for the value of the said materials.

Define Alluvion:
The accretion which the lands adjoining the
banks of rivers, creeks, torrents or lakes
gradually receive from the effects of the
waters.
What is the rule with regard to alluvion?
The owners of lands adjoining the banks of
rivers belong the accretion which they
gradually receive from the effects of the
current of the waters.
The owners of estates adjoining ponds or
lagoons do not acquire the land left dry by the
natural decrease of the waters, or lose that
inundated by them in extraordinary floods.

What is the rule with regard to avulsion?

Whenever the current of a river, creek or torrent
segregates from an estate on its bank a known
portion of land and transfers it to another estate,
the owner of the land to which the segregated
portion belonged retains the ownership of it,
provided that he removes the same within two
years.
Trees uprooted and carried away by the current of
the waters belong to the owner of the land upon
which they may be cast, if the owners do not
claim them within six months. If such owners
claim them, they shall pay the expenses incurred
in gathering them or putting in a safe place.

Distinguish between alluvion and avulsion.

In alluvion the accretion is gradual, whereas in
avulsion it is sudden and abrupt.
In alluvion the accretion cannot be identified,
whereas in avulsion it can be identified.
In alluvion there is merely an attachment,
whereas in avulsion there is first detachment
followed by attachment; and
In alluvion the accretion belongs to the owner of
the land to which the attachment is made,
whereas in avulsion the ownership is retained
by the owner of the land from which it is
detached, at least; for a certain period.

What is the rule with regard to islands which may be

formed either on the seas or on rivers?
Islands which may be formed on the seas within the
jurisdiction of the Philippines, on lakes, and on
navigable or floatable rivers belong to the State.
Islands which through successive accumulation or
alluvial deposits formed in non-navigable and nonfloatable rivers, belong to the owners of the margins or
banks nearest to each of them, or to the owners of
both margins if the islands is in the middle of the river,
in which case it shall be divided longitudinally in
halves. If a single island thus formed be more distant
from one margin than from the other, the owner of the
nearer margin shall be the sole owner thereof.

Define Possession:
It is the holding of a thing or the enjoyment
of a right, either by material occupation or
by the fact of subjecting the thing or right to
the action of our will
What are the different classes of possession?
1. Possession in ones own name
2. Possession in concept of owner
3. Possession in good faith or possession in
bad faith

Problem:
O, the owner of a riceland, leases the same to L who,
in turn, subleases it to S. S hires a kasama, K, who
actually cultivates the land, but does not stay
thereon. As a matter of fact, nobody lives on the
land. Who among O,L,S, and K may be said to have
possession of the rice land?
Ans.:
It is submitted that only S and K may be said to have
possession of the rice land the first, in the concept
of a mere holder, but in his own name, and the
second also in the concept of a mere holder, but in
the name of another. The doctrine of constructive
possession can be applied to the case of K.

Problem:
A, the owner of a Fortuner, was approached by
B, a dealer in second hand cars, regarding the
sale of the Fortuner to a prospective buyer.
Since A had lost his certificate of registration
when he delivered the car to B to be shown to
the prospective buyer, he also gave to the
latter a letter addressed to the LTO asking for
the issuance of a new CR. B however falsified
the letter, converting it into an absolute DOS.
Subsequently after obtaining a CR, he sold the
car to C, who, in turn, sold it to D. Later, A
brought an action against D for the recovery
of the car. Will the action prosper?

Answer:
Yes, the action will prosper. A had been
illegally deprived of the car because of the
ingenious
scheme
utilized
by
B;
consequently, applying the provisions of
Art. 559 of the NCC, A can now recover the
property from D.