REAL ESTATE LAWS
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owner has placed them or preserves them with the
Topic Outline: Pertinent Provisions In The Civil
Code Of The Philippines On Property intention to have them permanently attached to the
● Article 414 - 426 land, and forming a permanent part of it; the animals
○ Ways of acquiring property in these places are included;
○ Bundle of rights in acquiring real estate in the (7) Fertilizer actually used on a piece of land;
Philippines (8) Mines, quarries, and slag dumps, while the matter
○ Ownership vis-à-vis possession thereof forms part of the bed, and waters either
○ Limitations on the right of ownership running or stagnant;
○ Accion interdictal
(9) Docks and structures which, though floating, are
○ Accion publiciana
○ Accion reinvidicatoria intended by their nature and object to remain at a
● Articles 1117 to 1131, Art. 1133 to 1138, fixed place on a river, lake, or coast;
Article 1141, Art. 494 (10)Contracts for public works, and servitudes and other
○ Adverse Possession/Prescription real rights over immovable property. (334a)
PERTINENT PROVISIONS IN THE CIVIL CODE A3 Movable Property
OF THE PHILIPPINES ON PROPERTY
ARTICLE 416. The following things are deemed to be
A Article 414-426 personal property:
(1) Those movables susceptible of appropriation which are
A1 Classification of Property not included in the preceding article;
(2) Real property which by any special provision of law is
ARTICLE 414. All things which are or may be the object considered as personalty;
of appropriation are considered either: (3) Forces of nature which are brought under control by
science; and
(1) Immovable or real property; or (4) In general, all things which can be transported from
(2) Movable or personal property. place to place without impairment of the real property to
which they are fixed. (335a)
A2 Immovable Property ARTICLE 417. The following are also considered as
personal property:
ARTICLE 415. The following are immovable property:
(1) Obligations and actions which have for their object
(1) Land, buildings, roads and constructions of all kinds movables or demandable sums; and
adhered to the soil; (2) Shares of stock of agricultural, commercial and
(2) Trees, plants, and growing fruits, while they are industrial entities, although they may have real estate.
attached to the land or form an integral part of an (336a)
immovable;
(3) Everything attached to an immovable in a fixed ARTICLE 418. Movable property is either consumable
manner, in such a way that it cannot be separated or nonconsumable. To the first class belong those
therefrom without breaking the material or movables which cannot be used in a manner appropriate
deterioration of the object; to their nature without their being consumed; to the
(4) Statues, reliefs, paintings or other objects for use or second class belong all the others. (337)
ornamentation, placed in buildings or on lands by the
owner of the immovable in such a manner that it Property in Relation to the Person to
reveals the intention to attach them permanently to A4
Whom It Belongs
the tenements;
(5) Machinery, receptacles, instruments or implements
ARTICLE 419. Property is either of public dominion or
intended by the owner of the tenement for an
of private ownership. (338)
industry or works which may be carried on in a
building or on a piece of land, and which tend directly
ARTICLE 420. The following things are property of
to meet the needs of the said industry or works;
public dominion:
(6) Animal houses, pigeon-houses, beehives, fish ponds
or breeding places of similar nature, in case their
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(1) Those intended for public use, such as roads, canals, ● Appropriation of abandoned property.
rivers, torrents, ports and bridges constructed by the ● Hunting and fishing, subject to regulations.
State, banks, shores, roadsteads, and others of similar ● Finding of hidden treasure (Article 438, Civil
character; Code) – ownership of hidden treasure may
(2) Those which belong to the State, without being for be acquired, partly or wholly, by the finder if
public use, and are intended for some public service or for discovery occurs on another’s property.
the development of the national wealth. (339a) b. Intellectual Creation
Intellectual property rights are acquired by creating
ARTICLE 421. All other property of the State, which is original works such as literary, artistic, or scientific
not of the character stated in the preceding article, is works, protected by special laws like the Intellectual
patrimonial property. (340a) Property Code (RA 8293).
ARTICLE 422. Property of public dominion, when no
Additional Information:
longer intended for public use or for public service, shall
form part of the patrimonial property of the State. (341a) ARTICLE 712. Ownership is acquired by occupation
and by intellectual creation.
ARTICLE 423. The property of provinces, cities, and
municipalities is divided into property for public use and Ownership and other real rights over property are
patrimonial property. (343) acquired and transmitted by law, by donation, by
testate and intestate succession, and in consequence of
certain contracts, by tradition.
ARTICLE 424. Property for public use, in the provinces,
cities, and municipalities, consist of the provincial roads, They may also be acquired by means of prescription.
city streets, municipal streets, the squares, fountains,
public waters, promenades, and public works for public ARTICLE 713. Things appropriable by nature which
service paid for by said provinces, cities, or municipalities. are without an owner, such as animals that are the
object of hunting and fishing, hidden treasure and
abandoned movables, are acquired by occupation.
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. (344a)
Derivative Modes of Acquiring
B2
Ownership
ARTICLE 425. Property of private ownership, besides
the patrimonial property of the State, provinces, cities,
and municipalities, consists of all property belonging to Ownership is acquired derivatively when it is transmitted
private persons, either individually or collectively. (345a) from a previous owner to another. The Civil Code
enumerates various derivative modes:
Provisions Common to the Three a. Law
A5
Preceding Chapters Ownership can be acquired by operation of law, such
as:
ARTICLE 426. Whenever by provision of the law, or an ● Succession (inheritance) under Articles 774-1105
individual declaration, the expression “immovable things of the Civil Code.
or property,” or “movable things or property,” is used, it ● State acquisition of property for public use
shall be deemed to include, respectively, the things through eminent domain.
enumerated in Chapter 1 and in Chapter 2. b. Donation (Articles 725-773, Civil Code)
Ownership is acquired by voluntary transfer of
property without consideration.
B Ways of acquiring property
Key types of donation:
● Inter vivos (during the lifetime of the donor).
B1 Original Modes of Acquiring Ownership ● Mortis causa (takes effect upon the death of the
donor, akin to a testamentary disposition).
c. Succession
Ownership is acquired originally when it does not depend ● Ownership passes from the deceased to their
on a previous owner. The following are the recognized heirs through intestate or testamentary
original modes: succession.
● Intestate succession occurs when no valid will
a. Occupation (Articles 712-713, Civil Code) exists, while testamentary succession arises from
Ownership is acquired by occupation when a person a valid will.
takes possession of things that are susceptible of
ownership but are without an owner.
Examples: d. Prescription (Articles 1106-1155, Civil Code)
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● Ownership and other real rights can be acquired
Acquisition by Mixture and Specification
through the lapse of time, subject to the following B5
(Art. 466 - 475, NCC)
conditions:
○ Ordinary prescription: Possession in good
faith and with just title for 10 years. Ownership can also arise through processes involving
○ Extraordinary prescription: Open, material combination or transformation:
continuous, exclusive, and notorious
possession for 30 years, without need of just ● Mixture: If materials belonging to different owners
title or good faith. are combined, ownership depends on mutual
e. Tradition (Delivery of Property) agreement or proportional contribution.
● Ownership of movable or immovable property is ● Specification: If a new thing is created from
transferred through the delivery of the thing, another’s materials, ownership may vest in the maker
accompanied by the intention to transfer or the material owner, depending on circumstances
ownership (Articles 712-719, Civil Code). like good faith and value contribution.
● Types of tradition:
○ Real tradition (physical delivery of the B6 Acquisition by the State
thing).
○ Symbolic tradition (e.g., delivery of keys to a
The State may acquire ownership through:
warehouse where goods are stored).
○ Traditio longa manu (delivery by pointing
● Eminent domain: Forcible acquisition of private
out the thing).
property for public use upon payment of just
compensation (Article III, Section 9, Constitution).
B3 Acquisition by Contracts (Art. 712 , NCC) ● Escheat: Property reverts to the State when a person
dies without heirs or when properties are abandoned.
Contracts are the most common mode of acquiring
ownership in everyday transactions. Ownership is B7 Modes based on Special Laws
transferred through a perfected and consummated
contract, such as:
Ownership is also acquired under laws outside the Civil
● Sale (Articles 1458-1637, Civil Code).
Code:
● Exchange (Article 1638, Civil Code).
● Barter or other agreements where ownership is
● Land Reform Laws: Transfer of ownership to
explicitly or impliedly transferred.
farmer-beneficiaries (e.g., Comprehensive Agrarian
Reform Program under RA 6657).
B4 Accession (Art. 440-465, NCC) ● Mining and Natural Resources Laws:
Ownership of extracted resources as governed by the
Mining Act or similar statutes.
Ownership includes the right to all that is produced by the
property or that is incorporated or attached thereto. ● Acquisition under Condominium Act (RA
Modes of acquisition through accession include: 4726): Ownership of individual units in a
condominium project.
a. Natural Accession
IMPORTANT PRINCIPLES GOVERNING
● Includes the fruits of the property:
OWNERSHIP ACQUISITION
○ Natural fruits (e.g., harvest from crops).
○ Industrial fruits (e.g., products of factories).
1. Capacity to Own: Legal capacity to acquire
○ Civil fruits (e.g., rent or lease income).
ownership must exist, subject to limitations (e.g.,
b. Artificial Accession foreigners are restricted from owning land under
Incorporation of improvements or structures made the Constitution).
on one’s property by another. 2. Public Order and Public Policy: Ownership
Example: Builder in good faith acquires must not be acquired through acts that violate
compensation if the landowner claims the public policy or public order.
improvement (Article 448). 3. Registration: For immovable property,
acquisition must be registered in the Registry
c. Alluvium and Avulsion (Article 457-459, Civil
of Deeds to be enforceable against third parties.
Code)
● Alluvium: Gradual deposit of soil by river action By these principles, the Philippine legal system ensures
belongs to the riparian owner. clarity and order in the acquisition and transfer of
● Avulsion: Sudden transfer of land by water flow ownership, while safeguarding the rights of individuals,
belongs to the original owner but must be the public, and the State.
reclaimed within two years.
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Bundle of rights in acquiring real estate in 2. General - the right to one's own name or in
C
the Philippines make use of all the that of another. (413a)
possibilities or utility of the
thing owned, except those Art. 525. The
1. Right to enjoy (jus utendi) attached to other real possession of things or
- To use rights existing thereon. rights may be had in one
2. Right to the fruits (jus fruendi) 3. Exclusive - there may be of two concepts: either
3. Right to abuse (jus abutendi) two or more owners, but in the concept of owner,
- To abuse, use the property not in accordance only one ownership. or in that of the holder
4. Independent - other of the thing or right to
with its proper purpose, only the owner is given
rights are not necessary for keep or enjoy it, the
the right. its existence. ownership pertaining to
4. Right to dispose (jus dispodendi) 5. Perpetual - ownership another person. (432)
5. Right to recover (jus vindicandi) lasts as long as the thing
6. Right to accessories (jus accessiones) exists. It cannot be
7. Right to possess (jus possidendi) extinguished by non-user
but only by adverse
possession.
1. Owns the property – meaning, the property is
owned by whoever holds title
2. Has the right of exclusive possession of the
E Limitations on the right of ownership
property – meaning, others can be excluded from using
or entering the property
3. Has the right of exclusive enjoyment of the Article 431. The owner of a thing cannot make use
property – meaning, the owner can enjoy the use of the thereof in such a manner as to injure the rights of a third
property exclusively. person. (n) – sic utere tuo ut alienum non laedas
4. Has the right to recovery – meaning, in case his
property is unlawfully taken or possessed by another, the Article 432. The owner of a thing has no right to
owner can recover ownership and/or possession through prohibit the interference of another with the same if the
legal action. interference is necessary to avert an imminent danger and
5. Has the right to dispose – meaning, the titled the threatened damage, compared to the damage arising
owner can sell, transfer ownership, rent, or mortgage the to the owner from the interference, is much greater. The
property owner may demand from the person benefited indemnity
for the damage to him. (n)
D Ownership vis-à-vis possession Those imposed by the:
1. State in the exercise of:
OWNERSHIP POSSESSION
a. Power of Taxation - government may impose a
Article 427. Ownership The owner has the right tax on property, and if these are not paid, the
may be exercised over to enjoy and dispose of a property may be seized.
things or rights. (n) thing, without other b. Police Power - Property may be condemned or
limitations than those seized in the interest of health, safety or security
Article 428. The owner established by law. The and the owner shall not be entitled to
has the right to enjoy and owner has also a right of compensation unless he can show such seizure is
dispose of a thing, without action against the holder
unjustified. (At. 436) Salus populi est suprema
other limitations than and possessor of the
those established by law. thing in order to recover lex.
it. (348a) (ARTICLE c. Power of Eminent Domain - No person shall
The owner has also a right 428, NCC) be deprived of his property except by competent
of action against the holder court and for public use and always upon
and possessor of the thing payment of just compensation (Art. 435)
in order to recover it. 2. Law
(348a)
a. (i.e., easements of waters and of right of way) and
b. The requirement of legitime in succession;
3. Owners himself
Characteristic of Art. 523. Possession is a. Voluntary easement
ownership: the holding of a thing or b. Mortgage
1. Elastic - power/s may be the enjoyment of a right. c. Pledge
reduced and thereafter (430a) d. Lease;
automatically recovered
4. Grantor of the property on the grantee,
upon the cessation of the Art. 524. Possession
limiting rights. may be exercised in either by:
a. Contract
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b. Donation or ● The basis is ownership, which prescribes in ten (10)
c. Will; years if possession is in good faith or in thirty (30)
5. Those arising from Conflicts of private rights; Those years if possession is in bad faith. Prescription does
which take place in accession continua not run against an owner of land registered under the
Torrens system. However, laches may set in even if
6. Constitution land is registered.
- Prohibition against the acquisition of private
lands by aliens.
Accion Accion Accion
7. Acts in state of Necessity
interdictal publiciana reivindicatoria
- The law permits injury or destruction of things
owned by another provided this is necessary to possession, not recover recovery of
avert a greater danger (with right to indemnity v. ownership possession only, possession and
principle of unjust enrichment) not ownership ownership
8. True owner must resort to Judicial process When
thing is in possession of another; law creates a possession has
been lost for
disputable presumption of ownership to those in
more than 1
actual possession. (2008 BAR) year
F Accion interdictal
Articles 1117 to 1131, 1133 to 1138, 1141,
I 494
● It is a summary action to recover physical or material
possession only and it must be brought within one
year from the time the cause of action arises. It may Prescription of Ownership and Other
be: I1
Real Rights (Article 1117 - 1131)
1. Forcible Entry
2. Unlawful detainer
Article 1117. Acquisitive prescription of dominion and
● An ejectment suit. It’s a real action. It’s in personam.
other real rights may be ordinary or extraordinary.
The basis is prior physical possession, which
prescribes in 1 year.
Ordinary acquisitive prescription requires possession of
things in good faith and with just title for the time fixed
G Accion publiciana by law. (1940a)
● It refers to an ejectment suit filed within 10 years Article 1118. Possession has to be in the concept of an
after the expiration of one year from accrual of cause owner, public, peaceful and uninterrupted. (1941)
of action or from the unlawful withholding of
possession of the realty (Gabriel Jr. v. Crisologo, G.R. Article 1119. Acts of possessory character executed in
No. 204626, June 9, 2014). virtue of license or by mere tolerance of the owner shall
● It is an ordinary civil proceeding to recover the better not be available for the purposes of possession. (1942)
right of possession, except in cases of forcible entry
and unlawful detainer. What is involved here is not Article 1120. Possession is interrupted for the purposes
possession de facto but possession de jure. of prescription, naturally or civilly. (1943)
● A plenary action to recover possession de fact (after 1
year) or de jure. Article 1121. Possession is naturally interrupted when
● It’s a real action. It’s in personam. The basis is real through any cause it should cease for more than one year.
right of possession, which prescribes in 10 years.
The old possession is not revived if a new possession
should be exercised by the same adverse claimant.
H Accion reivindicatoria (1944a)
● It is an action to recover real property based on Article 1122. If the natural interruption is for only one
ownership. Here, the object is the recovery of the year or less, the time elapsed shall be counted in favor of
dominion over the property as owner. the prescription. (n)
Requisites of Accion Reivindicatoria: Article 1123. Civil interruption is produced by judicial
1. Identity of Property
summons to the possessor. (1945a)
2. Plaintiff’s Title
● It’s a real action. It’s in personam. Article 1124. Judicial summons shall be deemed not to
● The purpose is to recover ownership and, as a result, have been issued and shall not give rise to interruption:
possession.
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(1) If it should be void for lack of legal solemnities; Article 1135. In case the adverse claimant possesses by
(2) If the plaintiff should desist from the complaint mistake an area greater, or less than that expressed in his
or should allow the proceedings to lapse; title, prescription shall be based on the possession. (n)
(3) If the possessor should be absolved from the
complaint. Article 1136. Possession in wartime, when the civil
courts are not open, shall not be counted in favor of the
In all these cases, the period of the interruption shall be adverse claimant. (n)
counted for the prescription. (1946a)
Article 1137. Ownership and other real rights over
Article 1125. Any express or tacit recognition which the immovables also prescribe through uninterrupted
possessor may make of the owner's right also interrupts adverse possession thereof for thirty years, without
possession. (1948) need of title or of good faith. (1959a)
Article 1126. Against a title recorded in the Registry of Article 1138. In the computation of time necessary for
Property, ordinary prescription of ownership or real prescription the following rules shall be observed:
rights shall not take place to the prejudice of a third
person, except in virtue of another title also recorded; and (1) The present possessor may complete the period
the time shall begin to run from the recording of the necessary for prescription by tacking his possession to
latter. that of his grantor or predecessor in interest;
As to lands registered under the Land Registration Act, (2) It is presumed that the present possessor who was also
the provisions of that special law shall govern. (1949a) the possessor at a previous time, has continued to be in
possession during the intervening time, unless there is
Article 1127. The good faith of the possessor consists in proof to the contrary;
the reasonable belief that the person from whom he
received the thing was the owner thereof, and could (3) The first day shall be excluded and the last day
transmit his ownership. (1950a) included. (1960a)
Article 1128. The conditions of good faith required for
I3 Article 1141 (Prescription of Actions)
possession in articles 526, 527, 528, and 529 of this Code
are likewise necessary for the determination of good faith
in the prescription of ownership and other real rights. Article 1141. Real actions over immovables prescribe after
(1951) thirty years.
Article 1129. For the purposes of prescription, there is This provision is without prejudice to what is established
just title when the adverse claimant came into possession for the acquisition of ownership and other real rights by
of the property through one of the modes recognized by prescription. (1963)
law for the acquisition of ownership or other real rights,
but the grantor was not the owner or could not transmit I4 Article 494 (C0-ownership)
any right. (n)
Article 1130. The title for prescription must be true and Article 494. No co-owner shall be obliged to remain in
valid. (1953) the co-ownership. Each co-owner may demand at any
time the partition of the thing owned in common, insofar
Article 1131. For the purposes of prescription, just title as his share is concerned.
must be proved; it is never presumed. (1954a)
Nevertheless, an agreement to keep the thing undivided
for a certain period of time, not exceeding ten years, shall
I2 Article 1133 - 1138 be valid. This term may be extended by a new agreement.
Article 1133. Movables possessed through a crime can A donor or testator may prohibit partition for a period
never be acquired through prescription by the offender. which shall not exceed twenty years.
(1956a)
Neither shall there be any partition when it is prohibited
Article 1134. Ownership and other real rights over by law.
immovable property are acquired by ordinary
prescription through possession of ten years. (1957a) No prescription shall run in favor of a co-owner or co-heir
against his co-owners or co-heirs so long as he expressly
or impliedly recognizes the co-ownership. (400a)
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individuals have continuously and openly possessed land
J Adverse Possession/Prescription
for the required period, the courts have granted
ownership under ordinary or extraordinary prescription,
provided all legal requirements are met.
J1 Ordinary Prescription in Philippine Law
In the case of Ceniza vs. CA the Supreme Court
The concept of "Ordinary Prescription" is a legal doctrine held that Adverse possession requires the concurrence
in the Philippines that allows someone to acquire of the following circumstances:
ownership of property through continuous, adverse
possession for a specified period of time. This legal a) that the trustee has performed unequivocal acts of
principle, also known as "adverse possession," is outlined repudiation amounting to the ouster of the cestui que
in the Civil Code of the Philippines, specifically under trust;
Article 1117.
b) that such positive acts of repudiation have been
J2 Adverse Possession and Its Requirements made known to the cestui que trust; and
c) that the evidence thereon should be clear and
For ordinary prescription to apply, the possession must conclusive.
be in good faith, continuous, public, peaceful, and adverse
to the interests of the true owner for a period of ten years.
If the possession is in bad faith, or if the possessor does
not have just title, the period extends to thirty years
(extraordinary prescription). In the context of the given
query, if someone has possessed land for 35 years, they
have likely met the requirement for extraordinary
prescription if their possession meets the other necessary
criteria.
J3 Criteria for Adverse Possession
To successfully claim land through adverse possession,
several conditions must be met:
1. Continuous and Uninterrupted: The possessor
must have maintained possession without
interruption for the required time period.
2. Open and Notorious: The possession must be
obvious to anyone, including the owner.
3. Exclusive: The possessor must have been the only
one using the land.
4. Hostile and Adverse: The possession must be
against the interests of the true owner, not with their
permission.
5. Just Title and Good Faith: For ordinary
prescription, the possession must be based on a
legitimate claim and the possessor must believe they
have the right to the property.
J4 Legal Implications of Adverse Possession
Once a person meets the requirements for ordinary or
extraordinary prescription, they can legally own the land.
The adverse possessor must file a case to have their
ownership legally recognized. However, if the original
owner initiates legal action to recover the land before the
prescription period is met, the adverse possessor's claim
may be defeated.
Philippine Jurisprudence on Adverse
J5
Possession
The Supreme Court of the Philippines has consistently
upheld the doctrine of adverse possession. In cases where
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