DEFINITIONS
relation
(action in personam) against
such debtor
Art. 414. All things which are or may be the object of appropriation are considered either:
(1) Immovable or real property; or
(2) Movable or personal property. (333)
Art. 427. Ownership may be exercised over things or rights. (n)
Concepts of Things and Property
Things
o
Any object that exists and is capable of satisfying some human needs
o
Includes both objects that are already possessed or owned (res alicujus)
and those that are susceptible of appropriation
Property (Bienes)
o
Refers to any thing which is already the object of appropriation or is found
in the possession of man
Ownership defined
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
Real Rights vs. Personal Rights
Real Right is the right of interest belonging to a person over a specific thing
without a definite passive subject against whom such right may be personally
enforced
Personal Right is the right or power of a person (creditor or obligee (to demand
from another (debtor or obligor) as a definite passive subject, the fulfillment of the
latters obligation
DISTINCTION
By number of
persons
who
take party in the
legal relation
By the subjectmatter
By the manner
in which the will
of the active
subject acts
By the causes
of their creation
By the modes
of
their
extinction
By the nature of
the
actions
arising from the
juridical
PAGE 1
REAL RIGHT
PERSONAL RIGHT
There is a definite active
subject who has a right
against all persons generally
as an indefinite passive
subject
The object is generally a
corporeal thing
The active subject acts
directly
There is a definite active
subject and a definite passive
subject
Are created by mode and
title
Extinguished by the loss or
destruction of the thing over
which it is exercised
Directed against the whole
world, giving rise to real
actions (action in rem)
against third persons
Are created merely by title
The object is always an
incorporeal thing
The
active
subject
acts
indirectly through the promise
of the obligor
Survives the subject matter
The right is binding or
enforceable only against a
particular person, the debtor,
giving rise to personal actions
Art. 712. Ownership is acquired by occupation and by intellectual creation.
Ownership and other real rights over property are acquired and transmitted by law, by
donation, by estate and intestate succession, and in consequence of certain contracts, by
tradition.
They may also be acquired by means of prescription. (609a)
Art. 713. Things appropriable by nature which are without an owner, such as animals that are
the object of hunting and fishing, hidden treasure and abandoned movables, are acquired by
occupation.
Concept of Occupation
Occupation
o
The appropriation of things appropriable by nature which are without an
owner
o
A mode of acquiring dominion by seizure of things corporeal which have
no owner, with the intention of acquiring them, and according to the rules
laid down by law
Occupation and Possession Distinguished
OCCUPATION
POSSESSION
A
mode
of
acquiring
ownership
Refers only to corporeal
personal property
Requires that the object
thereof be without an owner
Requires that there be an
intent to acquire ownership
May not take place without
some form of possession
Merely raises the presumption of ownership when it
is exercised in the concept of owner
May be exercised over any kind of property, whether
real or personal, corporeal or incorporeal
May refer to property owned by somebody
May be had in the concept of mere holder
May exist without occupation
PROPERTY / PROF. SOLOMON F. LUMBA / FIRST SEMESTER, AY 2012-2013
KIM L. BALAUAG / D2015
Is of short duration
By itself cannot lead to
another mode of acquisition
Is generally of longer duration
May lead to another mode which is presciption
4.
and docks on a river)
By analogy or by law it is so classified by express provision of law because it is
regarded as united to the immovable property
CLASSIFICATIONS
1. Based on mobility
NCC 415 (5)
Requisites
It must be placed by the owner of the tenement or his agent
The industry or works must be carried on in a building or on a piece of land
It must tend directly to meet the needs of said industry or works essential and
principal elements of an industry
The machinery, etc. need not be owned by the owner as long as all the requisites are
present
Art. 415. The following are immovable property
Art. 416. The following things are deemed to be personal property:
Ways by which occupation may be effected
1. By hunting and fishing
2. By finding of movables which never had any owner
3. By finding of movables which have been abandoned by the owner
4. By finding of hidden treasure
(1) Land, buildings, roads and constructions of all kinds adhered to the soil;
(1)Those movables susceptible of appropriation which are not included in the preceding article;
(2) Trees, plants, and growing fruits, while they are attached to the land or form an integral part
of an immovable;
(2) Real property which by any special provision of law is considered as personal property;
(3) Forces of nature which are brought under control by science; and
(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;
(4) In general, all things which can be transported from place to place without impairment of
the real property to which they are fixed. (335a)
(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;
Art. 417. The following are also considered as personal property:
(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;
(2) Shares of stock of agricultural, commercial and industrial entities, although they may have
real estate. (336a)
(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;
(7) Fertilizer actually used on a piece of land;
(8) Mines, quarries, and slag dumps, while the matter thereof forms part of the bed, and waters
either running or stagnant;
(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;
(10) Contracts for public works, and servitudes and other real rights over immovable property.
(334a)
Classes of Immovable or Real Property
1. By nature it cannot be carried from place to place (i.e. lands, roads, trees)
2. By Incorporation it is attached to an immovable in a fixed manner to be an integral
part thereof (i.e. buildings, walls or fences, statues, animal houses)
3. By destination it is placed in an immovable for the utility to the activity carried thereon
(i.e. machinery installed in the building to meet the needs of an industry in the building,
PAGE 2
(1) Obligations and actions which have for their object movables or demandable sums; and
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, scientific 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. (346a)
2. Based on consumability
Art. 418. Movable property is either consumable or nonconsumable. 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. (337)
PROPERTY / PROF. SOLOMON F. LUMBA / FIRST SEMESTER, AY 2012-2013
KIM L. BALAUAG / D2015
Art. 562. Usufruct gives a right to enjoy the property of another with the obligation of
preserving its form and substance, unless the title constituting it or the law otherwise provides.
(467)
3. Based on fungibility
Fungibles and Non-fungibles
A thing is fungible if it can be substituted by another thing of the same kind, quantity and
quality and non-fungible if not replaceable in such equivalents
Art. 1953. A person who receives a loan of money or any other fungible thing acquires the
ownership thereof, and is bound to pay to the creditor an equal amount of the same kind and
quality. (1753a)
Art. 1954. A contract whereby one person transfers the ownership of non-fungible things to
another with the obligation on the part of the latter to give things of the same kind, quantity,
and quality shall be considered a barter. (n)
Art. 1955. The obligation of a person who borrows money shall be governed by the provisions
of Articles 1249 and 1250 of this Code.
If what was loaned is a fungible thing other than money, the debtor owes another thing of the
same kind, quantity and quality, even if it should change in value. In case it is impossible to
deliver the same kind, its value at the time of the perfection of the loan shall be paid. (1754a)
4. Based on ownership
a. Owned by the State
b. Property owned by the LGUs
c. Private or patrimonial property
Art. 419. Property is either of public dominion or of private ownership. (338)
Property Classified According to Ownership
1. Public Dominion property owned by the State (or its political subdivisions) in its public or
sovereign capacity and intended for public uses and not for the use of the State as a juridical
person
2. Private Ownership or property owned by:
a. The State in its private capacity, and is known as patrimonial property
b. Private persons, either individually or collectively
Art. 420. The following things are property of public dominion:
(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
PAGE 3
public service or for the development of the national wealth. (339a)
Three Kinds of Property of Public Dominion
1. Property intended for public use
2. Property which is not for public use but intended for some public service
3. Property intended for the development of national wealth
Art. 421. All other property of the State, which is not of the character stated in the preceding
article, is patrimonial property. (340a)
Patrimonial Property
Property of the State owned by it in its private or proprietary capacity
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. (341a)
Art. 423. The property of provinces, cities, and municipalities is divided into property for public
use and patrimonial property. (343)
Art. 424. Property for public use, in the provinces, cities, and municipalities, consist 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. (344a)
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.
Art. 638. The banks of rivers and streams, even in case they are of private ownership, are
subject throughout their entire length and within a zone of three meters along their margins, to
the easement of public use in the general interest of navigation, floatage, fishing and salvage.
Estates adjoining the banks of navigable or floatable rivers are, furthermore, subject to the
easement of towpath for the exclusive service of river navigation and floatage.
If it be necessary for such purpose to occupy lands of private ownership, the proper indemnity
shall first be paid. (553a)
`
5. Based on the Constitution
a. Public agricultural land
b. Mineral land
c. Timber land
PROPERTY / PROF. SOLOMON F. LUMBA / FIRST SEMESTER, AY 2012-2013
KIM L. BALAUAG / D2015
d.
National Parks
Note: All of the above are considered part of national wealth
Article XII, Section 3. Lands of the public domain are classified into agricultural, forest or
timber, mineral lands and national parks. Agricultural lands of the public domain may be further
classified by law according to the uses to which they may be devoted. Alienable lands of the
public domain shall be limited to agricultural lands. Private corporations or associations may
not hold such alienable lands of the public domain except by lease, for a period not exceeding
twenty-five years, renewable for not more than twenty-five years, and not to exceed one
thousand hectares in area. Citizens of the Philippines may lease not more than five hundred
hectares, or acquire not more than twelve hectares thereof by purchase, homestead, or grant.
Taking into account the requirements of conservation, ecology, and development, and subject
to the requirements of agrarian reform, the Congress shall determine, by law, the size of lands
of the public domain which may be acquired, developed, held, or leased and the conditions
therefor.
PROTECTING PROPERTY
1. Basic Distinction
a. Real Right vs. Personal Right
b. Real vs. Personal Action
Rule 2, Sec. 1. Venue of real actions.Actions affecting title to or possession of real
property, or interest therein, shall be commenced and tried in the proper court which has
jurisdiction over the area wherein the real property involved, or a portion thereof, is situated.
Forcible entry and detainer actions shall be commenced and tried in the municipal trial court of
the municipality or city wherein the real property involved, or a portion thereof, is situated.
Rule 2, Sec. 2. Venue of personal actions.All other actions may be commenced and tried
where the plaintiff or any of the principal plaintiffs resides, or where the defendant or any of the
principal defendants resides, or in the case of a non-resident defendant where he may be
found, at the election of the plaintiff.
Rule 14, Sec. 6. Service in person on defendant. Whenever practicable, the summons
shall be served handing a copy thereof to the defendant in person, or, if he refuses to receive
and sign for it, by tendering it to him. (7a)
Rule 14, Sec. 7. Substituted service. If, for justifiable causes, the defendant cannot be
served within a reasonable time as provided in the preceding section, service may be effected:
(a) by leaving copies of the summons at the defendants residence with some person of
suitable age and discretion then residing therein, or
(b) by leaving the copies at defendants office or regular place of business with some
competent person in charge thereof. (8a)
PAGE 4
Rule 14, Sec. 14. Service upon defendant whose identity or whereabouts are unknown.
In any action where the defendant is designated as an unknown owner, or the like, or
whenever his whereabouts are unknown and cannot be ascertained by diligent inquiry, service
may, by leave of court, be effected upon him by publication in a newspaper of general
circulation and in such places and for such time as the court may order. (16a)
Rule 14, Sec. 15. Extraterritorial service.When the defendant does not reside and is not
found in the Philippines, and the action affects the personal status of the plaintiff or relates to,
or the subject of which is, property within the Philippines, in which the defendant has or claims
a lien or interest, actual or contingent; or in which the relief demanded consists, wholly or in
part, in excluding the defendant from any interest therein, or the property of the defendant has
been attached within the Philippines, service may, by leave of court, be effected out of the
Philippines by personal service as under section 6; or by publication in a newspaper of general
circulation in such places and for such time as the court may order, in which case a copy of the
summons and order of the court shall be sent by registered mail to the last known address of
the defendant, or in any other manner the court may deem sufficient. Any order granting such
leave shall specify a reasonable time, which shall not be less than sixty (60) days after notice,
within which the defendant must answer. (17a)
Rule 14, Sec. 16. Residents temporarily out of the Philippines.When any action is
commenced against a defendant who ordinarily resides within the Philippines, but who is
temporarily out of it, service may, by leave of court, be also effected out of the Philippines, as
under the preceding section. (18a)
Rule 47, Sec. 2. Grounds for annulment.The annulment may be based only on the
grounds of extrinsic fraud and lack of jurisdiction.
Extrinsic fraud shall not be a valid ground if it was availed of, or could have been availed of, in
a motion for new trial or petition for relief. (n)
c.
Action in rem, action in personam, action quasi in rem
SHAFFER V. HEITER
When the defendant is a non-resident alien who is not in the Philippines
Even if there is no property, an in personam judgment can be rendered as long as
there are minimum points of contact
Even if there is property, a quasi-in rem judgment cannot be rendered if the property
is completely unrelated to the case
2.
a.
Remedies
Self-help
Art. 429. The owner or lawful possessor of a thing has the right to exclude any person from the
PROPERTY / PROF. SOLOMON F. LUMBA / FIRST SEMESTER, AY 2012-2013
KIM L. BALAUAG / D2015
enjoyment and disposal thereof. For this purpose, he may use such force as may be
reasonably necessary to repel or prevent an actual or threatened unlawful physical invasion or
usurpation of his property. (n)
Principle of Self-Help
Requisites
o
Owner or lawful possessor the person defending his property must be the owner
or lawful possessor
o
Reasonable force he must only use such force as may be reasonably necessary to
repel or prevent an invasion or usurpation of his property; otherwise, he shall be
liable for damages
o
No delay the doctrine of self-help can only be exercised at the time of an actual or
threatened dispossession or immediately after the dispossession to regain
possession
o
Actual or threatened physical invasion or usurpation the person who force is
employed has acted or is acting wrongfully or unlawfully
Note: Once delay has taken place, even if excusable, the owner of lawful possessor must
resort to judicial process for the recovery of the property for he is no longer justified in taking
the law into his own hands
Art. 430. Every owner may enclose or fence his land or tenements by means of walls, ditches,
live or dead hedges, or by any other means without detriment to servitudes constituted
thereon. (388)
Art. 716. The owner of a swarm of bees shall have a right to pursue them to another's land,
indemnifying the possessor of the latter for the damage. If the owner has not pursued the
swarm, or ceases to do so within two consecutive days, the possessor of the land may occupy
or retain the same. The owner of domesticated animals may also claim them within twenty
days to be counted from their occupation by another person. This period having expired, they
shall pertain to him who has caught and kept them. (612a)
b.
Accion interdictal
Art. 1147. The following actions must be filed within one year:
(1) For forcible entry and detainer;
Unlawful detainer filed when possession by a landlord, vendor, vendee or other person
against whom the possession of any land or building is unlawfully withheld after the expiration
or termination of the right to hold possession, by virtue of any contract, express or implied
Difference: time when possession became unlawful in forcible entry, it is from the time of
entry, while in unlawful detainer, possession which is at first lawful later becomes illegal, as
when the lease contract has expired and the lessee refuses to vacate the premises despite the
demand.
c.
Accion publiciana
Art. 536. In no case may possession be acquired through force or intimidation as long as there
is a possessor who objects thereto. He who believes that he has an action or a right to deprive
another of the holding of a thing, must invoke the aid of the competent court, if the holder
should refuse to deliver the thing. (441a)
Art. 555. A possessor may lose his possession:
(1) By the abandonment of the thing;
(2) By an assignment made to another either by onerous or gratuitous title;
(3) By the destruction or total loss of the thing, or because it goes out of commerce;
(4) By the possession of another, subject to the provisions of Article 537, if the new possession
has lasted longer than one year. But the real right of possession is not lost till after the lapse of
ten years. (460a)
Modes of Losing Possession
1. By Abandonment Abandonment is the voluntary renunciation of all rights which a
person has over a thing thereby allowing a third person to acquire ownership or
possession thereof by means of occupancy
2. By Assignment Assignment is the complete transmission of the thing or right to
another by any lawful manner. It may either be by onerous or gratuitous title.
3. By the destruction or total loss, or withdrawal from commerce
4. By possession of another for more than one year refers to possession de facto
(possession as a fact or material possession) and not de jure (legal right or real right of
possession)
5. By recovery by lawful owner or possessor through action reinvidicatoria or an action
to recover the better right to possession
(2) For defamation. (n)
d.
DE LA PAZ V. PANIS
Forcible entry summary action to recover material or physical possession of real property
when the person who originally held it was deprived of possession by force, intimidation,
threat, strategy or stealth
Art. 433. Actual possession under claim of ownership raises disputable presumption of
ownership. The true owner must resort to judicial process for the recovery of the property. (n)
PAGE 5
Accion reinvidicatoria
Art. 434. In an action to recover, the property must be identified, and the plaintiff must rely on
the strength of his title and not on the weakness of the defendant's claim. (n)
PROPERTY / PROF. SOLOMON F. LUMBA / FIRST SEMESTER, AY 2012-2013
KIM L. BALAUAG / D2015
e.
Action for reconveyance
Art. 1456. If property is acquired through mistake or fraud, the person obtaining it is, by force
of law, considered a trustee of an implied trust for the benefit of the person from whom the
property comes.
Art. 1144. The following actions must be brought within ten years from the time the right of
action accrues:
(1) Upon a written contract;
(2) Upon an obligation created by law;
(3) Upon a judgment. (n)
f.
Quieting of title
Art. 476. Whenever there is a cloud on title to real property or any interest therein, by reason
of any instrument, record, claim, encumbrance or proceeding which is apparently valid or
effective but is in truth and in fact invalid, ineffective, voidable, or unenforceable, and may be
prejudicial to said title, an action may be brought to remove such cloud or to quiet the title.
An action may also be brought to prevent a cloud from being cast upon title to real property or
any interest therein.
Equitable Title beneficial interest in the property the legal title of which pertains to
another (i.e. homesteader)
Interest in the real property is any interest short of ownership (i.e. interest of a
mortagagee or a usufructuary)
Art. 478. There may also be an action to quiet title or remove a cloud therefrom when the
contract, instrument or other obligation has been extinguished or has terminated, or has been
barred by extinctive prescription.
Art. 479. The plaintiff must return to the defendant all benefits he may have received from the
latter, or reimburse him for expenses that may have redounded to the plaintiff's benefit.
Art. 480. The principles of the general law on the quieting of title are hereby adopted insofar
as they are not in conflict with this Code.
Art. 481. The procedure for the quieting of title or the removal of a cloud therefrom shall be
governed by such rules of court as the Supreme Court shall promulgated.
Rule 63, Sec. 2. Parties.All persons who have or claim any interest which would be affected
by the declaration shall be made parties; and no declaration shall, except as otherwise
provided in these Rules, prejudice the rights of persons not parties to the action. (2a, R64)
Cloud on Title
Meaning A cloud on title is a semblance of title, either legal or equitable, or a claim or a
right in real property, appearing in some legal form but which is in fact, invalid or which would
be inequitable to enforce
Requisites
There is an instrument, record, claim, encumbrance, or proceeding which is
apparently valid or defective
Such instrument, etc. is, in truth and in fact, invalid, ineffective, voidable or
unenforceable (despite its prima facie appearance of validity or legal efficacy), or
has been extinguished or terminated, or has been barred by extinctive presciption
Such instrument, etc. may be prejudicial to said title
g.
Note: An action to quite title applies only to real property and not to personal property
Reinvidicatori
a
Art. 477. The plaintiff must have legal or equitable title to, or interest in the real property which
is the subject matter of the action. He need not be in possession of said property.
Title and Possession of the Plaintiff
Legal Title may consist in full ownership or in naked ownership which is registered in the
name of the defendant
PAGE 6
Replevin
Rule 60, Sec. 1. Application.A party praying for the recovery of possession of personal
property may, at the commencement of the action or at any time before answer, apply for an
order for the delivery of such property to him, in the manner hereinafter provided
Action
(FEUD)
Publiciana
Reconveyance
Quieting of
Title
Replevin
Venue
Summon
Prayer
Basis
Prescription
Real
Action
Real
Action
Real
Action
In
personam
In
personam
In
personam
Possession
One (1) year
Possession
Prior physical
possession
Real right of
Possession
Ownership
Real
Action
Real
Action
Real
Action
In
personam
Quasi-in
rem
In
personam
Title
Ownership
Quieting of
Title
Possession
Ownership
Possession
Ownership
10 years
(NCC 555(4))
GF: 10 years
BF: 30 years
(NCC 1137)
10 years (NCC
1456)
Imprescriptible
GF: 4 years
BF: 8 years
PROPERTY / PROF. SOLOMON F. LUMBA / FIRST SEMESTER, AY 2012-2013
KIM L. BALAUAG / D2015
PAGE 7
PROPERTY / PROF. SOLOMON F. LUMBA / FIRST SEMESTER, AY 2012-2013
KIM L. BALAUAG / D2015
