PROPERTY

TITLE 1. CLASSIFICATION PROPERTY

A. Concept of Property (Art. 414)
a. Requisites
b. Things v. Property
c. Kinds of Property
B. Immovable Property (Art. 415)
C. Movable Property (Art. 416 – 418)

Concepts of Property – Art. 414

Requisites:

1. Utility – Satisfying human needs.

2. Substantivity or individuality – Thing must have an autonomous and
separate existence.
3. Susceptibility of appropriation

Things v. Property

THING PROPERTY
(Cosas) (Bienes)
It is broader in scope for it includes The concept refers to things which
both appropriable and non- area susceptible of appropriation.
appropriable.
Objects that are external to man. All things which are or may be the
object of appropriation.
In the view of this Code, property and things are synonymous and may be
used interchangeably.

Kinds of Property

IMMOVABLE MOVABLE
(Real Property) (Personal Property)
DEFINITION
Immovable property is that which is
fixed in a definite place.

However, there are still many

exceptions to this general criterion.
OWNERSHIP
1. Rights are acquired by ordinary 1) Four years through uninterrupted
prescription through possession possession in good faith.
of Ten (10) years in good faith 2) Eight years through uninterrupted
and with just title for the time fixed possession without any other
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by law. condition.
2. Rights are acquired by
extraordinary prescription
through uninterrupted adverse
possession thereof for thirty (30)
years without need of title or of
good faith.

10 years = Possession in Good faith

and just title

30 years = Possession of property

through uninterrupted adverse
possession

Immovable Property – Art. 415

Generally, immovable property is that which is fixed in a definite place.

However, there are still many exceptions to this general criterion.
Classification of Real Properties

1. Real Property by Nature – These are in essence, and nature are immovable
or cannot be moved from one place to another, such as lands and roads.

2. Real Property by Incorporation – These are immovable because of their

attachment or incorporation to an immovable in such manner as to be
integral part thereof, such as building, and constructions of all kinds
adhered to the soil. Furthermore, Planting trees and plants through labour
is considered as real property by incorporation.

3. Real Property by Destination or Purpose – These are essentially movable but

considered as immovable because its utility partakes to the nature of the
industry. The movable property attached to immovable property becomes
the latter because the former is integral to run the industry.

4. Real Property by Analogy – Those found in Paragraph 10, Article 415 of the
Civil Code.

Art. 415, Section 1. Land, buildings, roads, and constructions of all kinds
adhered to the soil.
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Lands and constructions are immovable in nature because they

are attached to the soil.

Adhered is attached. Anything that is adhered or attached to the

soil is immovable property.

But if the property attached in soil can be transported or removed

from its adherence to the soil, then that can be a personal
property.

In mortgage aspect, mortgage in building is a real estate

mortgage and not chattel mortgage because building is a real
property not a chattel or personal property.

Personal Property ¿ Chattel Mortgage

Real Property¿ Real Estate Mortgage

Generally, properties attached to the soil is immovable property.

Exception is when the property sold or mortgaged which is subject
to immediate demolition is may be considered as personal property
because the true object of the contract is the material to be
derived from the demolition. Since the true object of the contract
is not the building, then it will not be considered as real property,
but rather than personal property.

Lands = Immovable or Real Property by Nature

Buildings = Immovable or Real Property by Incorporation
Roads= Immovable or Real Property by Incorporation
Constructions= Immovable or Real Property by Incorporation

May a house built on rented land be the object of a mortgage?

Yes, in a real mortgage.

In order for the real property be subject to personal property, the

requisites must concur:

1. The parties to the contract so agree; and

2. No innocent third party will be prejudiced.

However, in so far as the Execution Proceedings (for purposes of

sale at a public execution) are concerned, house would be
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considered real property pursuant to Rule 39, Section 15 of the

Rules of Court.

Art. 415, Section 2. Trees, plants, and growing fruits, while they are attached
to the land or form an integral part of an immovable.

Determination of plants and trees as real property and personal

property depends upon where it is situated.

Generally, plant and trees are real property. Exception is the

moment it is detached or uprooted from the land, they become
personal property.

Exception to the exception is when timbers are uprooted, it is

considered as real property because the uprooted timber still forms
an "Integral Part" of the timber land.

Trees detached because of typhoon but still rest where it was

initially situated is considered as real property.

Trees spontaneously products of the soil = Real Property by

Nature
Trees planted through labour = Real Property by Incorporation
Trees uprooted = Personal Property
Trees uprooted because of typhoon but remain to forest = Real
Property

Ownership. Generally, plants and trees annexed to the land are

owned by the landowner.

Exception, when these plants or trees are claimed to be owned by

other people.

Growing crops on one’s own land. Generally, plants and trees are
real property because they are attached to soil.

However, it becomes personal property once removed from the

soul.

Growing Fruits. Ungathered fruits are considered personal

property for the purpose of sale of the whole or part of the crops.
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Further, it is personal property for purposes of Chattel Mortgage

Law.

Art. 415, Section 3. 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.

Cannot be separated from immovable without breaking or

deterioration.

Need not be placed by the owner.

Real property by incorporation.

Art. 415, Section 4. Statues, reliefs, paintings or other objects for use or
ornamentation, placed in buildings or on lands by the owner of the immovable
in such a manner that it reveals the intention to attach them permanently to
the tenements.

Can be separated from immovable without breaking or

deterioration.

Requisites:

 They must be placed in buildings or on lands by the owner of

the immovable or by his agent.
 The attachment must be intended to be permanent.

Real property by destination or purpose.

Intention of attaching.

Permanent = Real Property

Temporary = Personal Property

Art. 415, Section 5. Machinery, receptacles, instruments or implements

intended by the owner of the tenement for an industry or works which may be
carried on in a building or on a piece of land, and which tend directly to meet
the needs of the said industry or works.

Real property by destination or purpose.

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Requisites:

 They must be machinery, receptacles, instruments or

implements.
 They must be placed by the owner of the tenement or by his
agent.
 There must be an industry or work carried in such building
or on the piece of land.
 They must tend directly to meet the needs of the industry
or work.

The machinery attached to the building or land must tend to

directly meet the needs of the industry.

Further, the machinery attached must be essential and principal

element of the industry, and not merely incidental.

Examples:

In computer shops, computer is real property because it is

essential and principal element to run the industry of internet
cafes.

Effect of Separation.

Initially, these machineries were "Real Property by Incorporation"

but once temporarily removed, it becomes "Real Property by
destination."

Change of industry.

If initially, the machinery attached is the principal element of the

industry, the industry changed, and the machinery remains in the
place, it condition becomes personal property.

Effects of Temporary Occupation and attachment of

machineries, etc.

Generally, machine placed by the tenant to the property of

landowner, the machine is considered as "Personal Property."
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Exception, if the contract between the tenant and landowner,

stating that the machine will belong to the landowner, then the
property is considered as "Real Property."

The reason thereof is that the property of the lessor for in that case
they will be considered as immovable property since in placing them
the lessee will just be merely acting as an agent of the lessor.

They are merely incidentals – when acquired as movables and used

for only for expediency to facilitate and/or improve its service.

Effects of Real Mortgage.

In Real Estate Mortgage, all future improvements of the mortgage

property including machineries will be treated as part of the
mortgage because these machineries are essential and principal
element of the industry.

If the property is judicially sold on execution without the necessary

advertisement of sale by publication in a newspaper, the sale made
by sheriff would be null and void.

Effects of Chattel Mortgage.

If the parties agreed to subject a machine (Real Property by

Destination or Purpose) as personal property, it is considered as
personal property for purposes of Chattel Mortgage provided that it
does not prejudice the third party.

Art. 415, Section 6. Animal houses, pigeon-houses, beehives, fish ponds or

breeding places of similar nature, in case their owner has placed them or
preserves them with the intention to have them permanently attached to the
land, and forming a permanent part of it; the animals in these places are
included.

The animals inside. Temporary outside.

Animals inside and temporarily outside their house, which is

placed in real property is also considered real property including
their house.
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However, in criminal law, animals are considered as personal

property.

Alienation of Animals.

Donation of Real Property = Public Instrument

Donation of Personal Property = Private Instrument

Temporary Structure of Cages.

What is inside of the "Personal Property is considered as Personal

Property.

Temporary = Personal Property

Permanent = Real Property

Art. 415, Section 7. Fertilizer actually used on a piece of land

Real Property by destination and purpose.

Fertilizer used is considered as real property because of its

destination and purpose. However, if these fertilizer are kept in
the farmhouse are not immovable.

Art. 415, Section 8. Mines, quarries, and slag dumps, while the matter
thereof forms part of the bed, and waters either running or stagnant

Real Property by nature.

Generally, minerals that are still attached to soil or ground is
considered as "Real Property."

Except, these minerals are extracted from the soil/ground, then it

becomes chattels.

Art. 415, Section 9. Docks and structures which, though floating, are
intended by their nature and object to remain at a fixed place on a river,
lake, or coast.

Real Property by destination.

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Floating house. Floating house is just an accessory. What makes

it Real Property is its location, which is water from nature.

Moving floating house is considered as vessels.

Vessels are indeed very movable.

Distinguishment of immovable and movable.

As long as the thing is intended by their nature and object to

remain at a fixed place on a river, lake or coast.

Art. 415, Section 10. Contracts for public works, and servitudes and other
real rights over immovable property.

Real Property by analogy.

The properties referred to in paragraph 10 are not material things

but rights, which are necessarily intangible. They are real property
because they partake of the essential characteristics of immovable
property.

Intangible are considered Real Property.

Right to Contract = Real Property.
Piece of Paper where the contract is written = Personal
Property

Rights as property.

 Real Right – The power belonging to a person over a specific

thing, without a passive subject individuality determined
against whom such right may be personally exercised; it is
enforceable against the whole world.

Example: Ownership of house and lot. I, as a landowner has

the right over my property and can enforce it against the
whole world.

 Personal Right – The power belonging to one person to

demand of another, as a definite passive subject, the
fulfillment of a prestation to give, to do or not to do.
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Example: Creditor and debtor. I, as a creditor, have the right

to demand to my debtor the fulfillment of a prestation,
whether to give, to do or not to do.

Rights are classified as.

Personal Rights = Personal Property

Real Rights

If the subject matter of Real Rights is real property, then such

right is classified as real property.

If the subject matter of Real Rights is personal property, then such

right is classified as personal property.

Movable Property – Art. 416 – 418

All properties that are not real are personal.

Not all properties that can be transported is considered a personal property

because of the purpose for which it has been placed in an immovable, in which
case, it shall partake of the nature of the latter and shall be classified as an
immovable property by destination.

Test to Determine that a Property is Personal:

 If the property is capable of being carried from place to place

(Test by description)
 If such change in location can be made without injuring real
property to which it may in the meantime be attached (Test
by descrption)
 If finally, the object is not one of those enumerated or
included in Art. 415 (Test by exclusion)

Test by exclusion is superior to the test by description.

Art. 416, Section 1. Those movables susceptible of appropriation which are

not included in the preceding article.
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Movable Property or Personal Property. Machineries are

classified as personal property if the said machine is placed by the
tenant in a tenement or if the machine is not attached in the
tenement in fix manner, which cannot be separated from the
tenement without sustaining a severe injury. Hence, they can be
transported to one place to another.

Art. 416, Section 2. Real property which by any special provision of law is
considered as personality.

These are real property in nature but considered as “personal

property” pursuant to special provision of law. In relation thereto,
the provisions of the Revised Penal Code (RPC).

Example: Art. 415 (6), animal houses and animals inside the
former are considered as real property, but under RPC, if those
real properties are taken and now subject of theft, it becomes
personal property.

On the other hand, Art. 415 (2), generally, ungathered fruits are
real property since it is attached to the soil. However, for purposes
of attachment, execution and the Chattel Mortgage Law, they are
treated as “personal property.”

Art. 416, Section 3. Forces of nature which are brought under control by
science.

The forces of nature in their original state are not, ordinarily,

subject to appropriation because of the degree of difficulty in
appropriating them. However, if these forces of nature are brough
under the control of science, it becomes appropriable and
considered as personal property.

Art. 416, Section 4. In general, all things which can be transported from place
to place without impairment of the real property to which they are fixed.

Machinery not attached to land or needed for the carrying on of an

industry conducted therein.

Note:
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Anything that can be appropriated that are not real property are
considered as personal property.

Other incorporeal movables. A patent, a copyright, the right to an

invention – these are intellectual properties which should be
considered as personal property.

Personal Effects. Are personal property, but not all personal

property are personal effects. Personal effects include only such
tangible property as applied to a person and cannot include
automobiles, although they indeed are personal property.

Movable Property – Art. 417.

Art. 417, Section 1. Obligations and actions which have for their object
movables or demandable sums.

Any rights over a person that arises from their obligation is a

personal property.

Example: I, as a creditor, I have right to collect the sum of money I

lent to Juan once the debt is due.

However, if the object of the obligation is illegal, there is no right

exists because in Obligation and Contracts it provides that an
obligation is null and void if the object of the obligation is illegal or
outside the commerce of men.

On the other hand, if the right a person has is right to recover

possession of a piece of land, it is real property because object of
my right is immovable.

Art. 417, Section 2. Shares of stock of agricultural, commercial and industrial

entities, although they may have real estate.

Generally, stocks, shares, interest and certificates pertaining to

commercial and industrial entities are considered as personal
property.

However, if they are pertaining to building or land, not to the

business, then they are considered as real property.
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Is money merchandise? Money is legal tender. Therefore, not a

merchandize. However, if money is exported or smuggled, it
becomes merchandise or commodity subject to forfeiture pursuant
to Central Bank Circular 37 in relation to Section 1363(f) of the
Revised Administrative Code.

Whether money is legal tender or not, whether it is merchandise or

not, money is Personal Property.

Art. 418. Movable property is either consumable or non-consumable. To

the first class belong those movables which cannot be used in a manner
appropriate to their nature without their being consumed; to the second
class belong all the others.

Classification as to their nature: Consumable and Non-

Consumable Properties

The former, it cannot be used or appropriated according to its

nature without being consumed.

Example: Cigarette. A cigarette cannot be used in a

manner appropriate to its nature for smoking, without
itself being consumed.

The latter, any other kind of movable property.

Example: Table. Table can be used in the manner

appropriate to its nature and, yet it will not be
consumed.

This application only applies to movable property, particularly to

those that are corporeal in nature.

Classification as to the intention of parties: Fungible and Non-

Fungible

In the former, the movable (with corporeal existence) property can

be replaced by alike, similar or equivalent property.

In the latter, the movable (with corporeal existence) property

cannot be replaced by alike, similar or equivalent property. It must
be identical of what is borrowed or consumed.
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PROPERTY IN RELATION TO THE PERSON TO WHOM IT BELONGS

Concepts of Property – Art. 419. Property is either of public dominion or

of private ownership.

From the viewpoint of ownership, property is classified either as public

dominion or private ownership.

Properties Are Owned:

1. Public Capacity (Dominio Publico)

2. Private Capacity (Propriedad Privado)

Property From The Viewpoint Of Ownership In Relation To State:

1. Public Dominion
2. Patrimonial Property

Property From The Viewpoint Of Ownership In Relation To Political

Subdivision:

1. Public Dominion (Public Use). It means ownership by the public in

general or public ownership.
2. Patrimonial Properties

Property From The Viewpoint Of Ownership In Relation To Persons and

Entities:

Concepts of Property – Art. 420. The following things are property of

public dominion:
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1. Those intended for public use, such as roads, canals, rivers,

torrents, ports and bridges constructed by the State, banks, shores,
roadsteads, and others of similar character;

2. Those which belong to the State, without being for public use, and
are intended for some public service or for the development of the
national wealth.

PROPERTY OF STATE: PUBLIC DOMINION

Property of Public Dominion Pertaining To State:

1. Public Use.
 Use which is not confined to privilege individuals, but it open to
the indefinite public.
 Properties intended for public service or may be used
indiscriminately by the public.

Property for Public Use is owned by:

a. State.
b. LGUs political subdivisions.

2. Public Service.
 Properties cannot be used indiscriminately by anyone but only by
those that are authorized by property authority.
 Only the state may own property for public service (Article 420 (2)
and there is no such thing as property for public service for LGUs.

3. Development of National Wealth.

Property of Public Dominion Referring To Public Ownership:

 Public dominion means ownership by the public in general or public

ownership.
 Ownership refers to special collective ownership for the general use and
enjoyment

Remember: The State holds these properties not in the concept of

an owner but only in consequence of its territorial integrity.
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State is the juridical representative of the social group, and as

such it takes care of them, preserves them and regulates their use
for the general welfare.

Since the properties belong to the public in general, the State

cannot make those as object of the commerce unless they are
properly converted into Patrimonial Properties in accordance
with Article 422 of the Civil Code.
Property of Public Dominion Referring To State Ownership:

 Public Dominion in this sense refers to properties or things held by the

State by Regalian Rights.
 These properties are owned by the States, but they remain to be part of
the public dominion.
 Inalienable natural resources and classified as property of public
dominion is owned by the State.

“Property of Public” Distinguished From “State Ownership”:

Property of Public Dominion Property of State Ownership

State cannot make the property of The Constitution allows the State to
public dominion as object of the enter to co-production, joint venture
commerce. or production-sharing agreements,
development, exploration, and
utilization of natural resources.

Property of Public Dominion:

 Intention to devote the property for public use is sufficient to consider

the property as property of public dominion.

Public Use and Public Service – Distinguished:

Public Use Public Service

Property is used by the

general Property is used for the benefit of the
public. public but cannot be used
indiscriminately by anyone but only
Public use is not confined to those that are authorized by proper
privileged individuals but is open to authority.
the indefinite public.
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Properties of the State for Public Use:

 Roads
 Canals. Canal is private if it is constructed by private person in his
private property. However, if the private person constructed the canal in
public dominion, the Canal is considered property of public.

If private person constructed a canal in his private property, but allowed

public to use the same for more than twenty (20) years, then the canal is
considered for public because the owner is barred by prescription.

 Rivers. What constitutes river: Running water, the bed, and the banks,
All these elements are properties of public dominion.

Even a river bed is privately owned, if parts thereof is regularly

submerged, that is still property of public dominion. (Binalay v. Manalo)

 Port. Airport lands and buildings constitute “Port” constructed by the

State.

Tollway. Property of public dominion. Although the government collects

toll fees, the same are still property of public dominion because it is
intended for public use.

 Torrents
 Ports and bridges constructed by the State,
 Banks
 Shores. Shore is the space which is alternatively covered and uncovered
by water with the movement of the tides. Its interior or terrestrial limit is
the line reached by the highest equinoctial tides.

When the sea advances and private properties are permanently invaded
by the waves, the properties so invaded become part of the shore or
beach and they then pass the public domain.

 Lakes and lagoons. Natural lakes and lagoons belong to the state. Hence,
lakes and lagoons naturally occurring in private property belong to the
State.
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However, if lakes and lagoons are developed by private person in his

private property, that is private ownership. Pursuant to Water Code of
the Philippines, people are not allowed to make a private lake, stream or
spring for recreational purposes without first obtaining a permit from the
National Water Resources Council.

Natural Bed of Lakes. “The natural bed or basin of lakes, ponds, or pools,
is the ground covered by their waters when at their highest ordinary
depth.”

 Roadsteads
 And others of similar character

Presidential Decree No. 1067 or The Water Code of the Philippines:

 The Water Code of the Philippines adds the properties that belong to the
State for Public Use.

Section 5, PD No. 1067

 Rivers and their natural beds

 Continuous or intermittent waters of springs and brooks running in
their natural beds and the bed themselves
 Natural lakes and lagoons
 All other categories of surface waters such as water flowing over
lands, water from rainfall whether natural or artificial, and water from
agriculture runoff, seepage and drainage
 Atmospheric water
 Subterranean or ground waters
 Seawater

Section 6, PD No. 1067

 Continuous or intermittent waters rising on such lands. b.

 Lakes and lagoons naturally occurring on such lands
 Rain water falling on such lands
 ubterranean or ground waters
 Waters in swamps and marshes

Property of Public Dominion: For Public Service

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Property of Public Dominion: For the Development of National Wealth

 This class of property constituted property of public dominion

although employed for some economic or commercial activity to
increase the national wealth.

Regalian Doctrine

 Generally, all natural resources are owned by the State. Exception,

agricultural land, all other natural resources shall not be alienated.
 The State may directly undertake such activities or it may enter into
coproduction, joint venture, or production-sharing agreements with
Filipino citizens, or corporations or associations at least sixty per
centum of whose capital is owned by such citizens.
 Such agreements may be for a period not exceeding twenty-five years,
renewable for not more than twenty-five years, and under such terms
and conditions as may be provided by law.
 Under the Regalian Doctrine embodied in the present
Constitution, all lands of the public domain as well as all natural
resources enumerated in the above-quoted provision, whether on
public or private land, belong to the State.

Characteristics of Properties of Public Domain

 They are outside the commerce of man.

 They are not susceptible to private appropriation and acquisitive
prescription.
 They are not subject to attachment and execution.
 They cannot be burdened with voluntary easements.

Art. 421. All other property of the State, which is not of the character
stated in the preceding article, is patrimonial property.

Patrimonial Property of the State.

 Property of the state that are not included in public dominion.

 Property of the State in what may be called private sense.
 In this kind of property, the State has the same power of disposition as
private individuals subject to existing rules and regulations.
 It is the reason why Patrimonial Property is can be sold. Unlike
property of public dominion, it cannot.
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 Chavez v. Public Estate Authority. “Government owned lands, as long

they are patrimonial property, can be sold to private parties, whether
Filipino citizens or qualified private corporations.”

Examples of Patrimonial Property of the State.

 Alienable and disposable lands of the public domain.

 Alienable lands of the public domain, or those available for alienation or
disposition, are part of the patrimonial properties of the State.
 If State-owned property remain intended for public use, service or for the
development of national wealth, they cannot be alienated or disposed.
Hence, cannot be patrimonial properties.
 R.A. No. 7227 creating the BCDA is a law that declares specific military
reservations no longer needed for defense or military purposes and
reclassifies such lands as patrimonial property for sale to private parties.

Art. 422. Property of public dominion, when no longer intended for public
use or for public service, shall form part of the patrimonial property of the
State.

Property of public dominion to patrimonial property.

 Property of public dominion, when no longer intended for public use or

for public service, shall form part of the patrimonial property of the
State.
 In Municipal of Oas v. Roa, the Supreme Court held that property of the
public dominion, a public plaza in this instance, becomes patrimonial
property upon use thereof for purposes other than a plaza.
 In Municipality of Hinunangan v. Director of Lands, it was held that
when a fortress ceases to be used for the purpose for which it was
constructed, it becomes a patrimonial property of the state.
 In these two cases, the character of the property, and any change
occurring therein, depends on the actual use to which it is dedicated.

Ignacio v. Director of Land

The Supreme Court ruled that a property continues to be part of

the public domain, not available for private appropriation or
ownership until there is a formal declaration on the part of the
government, either through the Executive department or the
Legislative, to the effect that the property is no longer needed for
public service, for public use or for special industries. Thus, under
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Ignacio, either the Executive Department or the Legislative

Department may convert property of the State of public
dominion into patrimonial property of the State.

Laurel v. Garcia

The Supreme Court held that abandonment of the intention to use

the Roponggi property for public service and to make it a
patrimonial property “cannot be inferred from the non-use alone
specially if the non-use was attributable not to the government’s
own deliberate and indubitable will but to a lack of financial
support to repair and improve the property.” The Court likewise
ruled that E.O. No. 296 does not declare that the property has lost
its public character since the executive order merely intends to
make the properties available to foreigners and not to Filipinos. It
was based on the wrong premise or assumption that the Roponggi
was earlier converted into alienable real property.

In fine, it is now clear that there must be an affirmative act,

either on the part of executive or the legislative, to reclassify
property of the public dominion into patrimonial. The intention
to reclassify must be clear, definite and must be based on correct
legal premises. Hence, the conversion can no longer be inferred
from the non-use alone of the property for the purpose to which it
is intended.

Art. 423. The property of provinces, cities, and municipalities is divided

into property for public use and patrimonial property.

Property for public use is for public use. Meanwhile, property of provinces,
cities, and municipalities that are not intended for public use is patrimonial
property.

Art. 424. Property for public use, in the provinces, cities, and
municipalities, consists of the provincial roads, city streets, municipal
streets, the squares, fountains, public waters, promenades, and public
works for public service paid for by said provinces, cities, or
municipalities.

All other property possessed by any of them is patrimonial and shall be

governed by this Code, without prejudice to the provisions of special laws.
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Jurisprudence or principles applicable for property of the political subdivisions

(provinces, cities and municipalities) for public use:

a. Property for public use is outside the commerce of man. Being outside
the commerce of man, it cannot be alienated or leased or otherwise be
the subject matter of contracts.
b. They cannot be acquired by prescription.
c. They are not subject to attachment and execution.
d. They cannot be burdened by any voluntary easement.

Art. 425. Property of private ownership, besides the patrimonial property

of the State, provinces, cities and municipalities, consists of all property
belonging to private persons, either individually or collectively.

Private properties may be owned by the State, provinces, cities and

municipalities, this is called as Patrimonial Property. On the other hand, if
private property belongs to individual or private entities, it is called Property
of Private Ownership.

Property of Private Ownership are either:

a. Individual
b. Collective

PROVISIONS COMMON TO THE THREE PRECEDING CHAPTERS

Art. 426. Whenever by provision of the law, or an individual declaration,

the expression “immovable things or property,” or “movable things or
property,” is used, it shall be deemed to include, respectively, the things
enumerated in Chapter 1 and Chapter 2.

Whenever the word “muebles,” or “furniture,” is used alone, it shall not be

deemed to include money, credits, commercial securities, stocks and
bonds, jewelry, scientifi c or artistic collections, books, medals, arms,
clothing, horses or carriages and their accessories, grains, liquids and
merchandise, or other things which do not have as their principal object
the furnishing or ornamenting of a building, except where from the
context of the law, or the individual declaration, the contrary clearly
appears.

TITLE II. OWNERSHIP.

 PROPERTY

Chapter 1. Ownership in General

A. Concept of Ownership

Art. 427. Ownership may be exercised over things or rights.

1. Characteristics of Ownership

What is ownership?
Ownership is the independent and general right of a person to
control a thing particularly in his possession, enjoyment,
disposition, and recovery, subject to no restrictions except those
imposed by the state or private persons, without prejudice to the
provisions of the law.

Ownership is that independent right of a person to the exclusive

enjoyment and control of a thing including its disposition and
recovery subject only to the restrictions or limitations established
by law and the rights of others.

Ownership versus Property

According to Castan, while ownership implies the power over a

thing which belongs to the owner (which concept, therefore, has a
predominantly objective meaning); property, on the other hand,
accentuates the relation between the thing and the owner to whom
it belongs (which concept, therefore, has a predominantly objective
meaning).

Which means, ownership is about your power or control over a

thing you own. While property is relationship of a thing and the
owner of the said thing.

Kinds of Ownership

1. Naked Ownership (nuda proprietas). This is ownership where the right to

the use and the fruits has been denied.

 Naked ownership plus usufruct equals full ownership.

 Usufruct equals full ownership minus naked ownership.
 Naked ownership equals full ownership minus usufruct.
 PROPERTY

2. Full Ownership (dominium or jus in re propia). All rights of an owners.

3. Sole Ownership. The ownership is vested in only one person.
4. Co-ownership (Tenancy in common). The ownership is vested in two or
more owners.

Manresa says: The concept of co-ownership is unity of the property and

plurality of the subjects. Each co-owner, together with the other co-
owners, is the owner of the whole, and at the same time, the owner of an
undivided aliquot part thereof.

Civil Code:

 Property is susceptible of appropriation.

 Ownership refers to the mass or bundle of rights that may be exercised
over a property.

Ownership is a Real Right. Property is a thing.

Rights over the Properties:

 Personal Rights. Right pertaining to a person to demand from another,

as a passive subject, the fulfillment of a prestation to give, to do or not to
do.
o Jus Ad Rem. A right enforceable only against a definite person or
group of persons.

Example: Obligation to pay.

 Real Rights. Right pertaining to a person over a specific thing, without

passive subject individually determined against whom such right may be
personally enforced.
 A real right creates a direct relation between the specific thing and its
hold in such a way that it permits the holder to exclude others from the
enjoyment of the thing.
o Jus In Re. A right enforceable against the whole world, such as the
right of ownership, possession, usufruct, easement or mortgage.

Example: Right of an owner to exclude other people from his

property.

Real Rights and Ownership

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 Ownership is considered as the most complete because it provides the

owner the most ample power of dominion over the property.

2. Rights Included in Ownership

Art. 428. The owner has the right to enjoy and dispose of a thing, without
other limitations than those established by law.

The owner has also a right of action against the holder and possessor of
the thing in order to recover it.

I. The Rights of an owner under Civil Code

Under Art. 428, the owner has:

 Right to enjoy
 Right to dispose
 Right to recover or vindicate

The right to enjoy includes:

 Right to possess
 Right to use
 Right to the fruits

The right to dispose includes:

 Right to consume or destroy or abuse

 Right to encumber or alienate

II. Rights of an Owner Under Roman Law

Jus Possidendi – Right to possess

 Right to possess means the right to hold a thing or enjoy a

right. In either case, it means that the thing or right is
subject to the control of my will.

Jus Utendi – Right to use/receive

 Right to use includes the right to exclude any person, as a

rule, from the enjoyment and disposal thereof.
 PROPERTY

 Generally, the owner-possessor may use force to repel or

prevent an actual or threatened unlawful physical invasion
or usurpation of the property.

However, the owner-possessor of the thing cannot make use

of the thing he owns to injure the right of a third person.
Otherwise, he may be held liable for damages, and his
property is a nuisance, it may even be destroyed.

Jus Fruendi – Right to the fruits

 Right to the fruits includes the rights to three kinds of fruits

– natural, industrial and civil fruits.
 The jurisprudence states that only owners and not
mortgagees, can claim damages for injury to the fruits of a
piece of land and for injury caused by the deprivation of
possession.

Injury to the fruits refers to any fruits produced by land.

Deprivation of possession: If “A” deprives “B” the possession

of his property, “A” is liable for damages on the grounds of
depriving “B” to possess his property.

Jus Abutendi – Right to consume (or transform or abuse)

 In Roman Law, jus abutendi did not really mean the right to
abuse, but the right to consume.
 However, in modern terminologies, it allows both consume
and abuse at its meaning.

Example

“A” can burn his own house if in an isolated place. However,

“A” cannot burn his house if it endangers the properties of
others.

Jus Disponendi – Right to dispose

Jus Vindicandi – Right to recover
Jus accessiones – The right to accessories
 PROPERTY

Generally, if the decision in the ejectment case has become final and executory,
it becomes the ministerial duty of the court to order the execution of the
decision of the court.

However, there are two exceptions:

1. If the suspension of the execution of the decision is necessary to

accomplish the aims of justice.
2. When certain facts and circumstances transpired after the judgement
became final which could render the execution of the judgement unjust.