IV. PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS Flashcards
IV. PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS
A. Classification of Property
1. Immovables and Movables – Civil Code, arts. 414-418
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Understanding Immovable and Movable Property in the Philippines:
Here’s a simplified explanation of immovable and movable property in the Philippines, based on the provided Articles:
- Immovable Property (Real Estate):
Think of things physically attached to the land or considered part of it:
Example: Land, buildings, roads, trees, and plants growing on the land.
Objects permanently attached to an immovable:
Example: Doors, windows, elevators, and plumbing fixtures within a building.
Objects placed by the owner with the intention of permanence:
Example: Statues, paintings, or machinery specifically installed for use in a building or on land.
Other categories:
Example: Animal pens, fertilizer spread on land, mines and quarries, and certain structures built on water (docks, etc.).
- Movable Property (Personal Property):
Everything NOT listed as immovable:
Example: Furniture, cars, clothes, jewelry, and other things you can easily move.
Real estate specifically designated as movable by law:
Example: Shares of stock in companies, even if they own real estate.
Intangible assets:
Example: Rights and obligations related to movable property or money owed to you.
Remembering the difference:
Immovable property: Think of things that are fixed and difficult to move without causing damage.
Movable property: Think of things that are easily transportable and not permanently attached to land.
IV. PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS
A. Classification of Property
- Public Dominion; Patrimonial; Private – Civil Code, arts. 419-425
Classification of Property in the Philippines:
The Philippines classifies property into three main categories:
- Public Dominion:
Owned by the State: This includes property used for public benefit or DEDicated to PUBLIC SERVICE and national development.
Examples:
Public use: Roads, canals, rivers, parks, bridges, ports, and shores.
Public service/national wealth: Government buildings, airports, public schools, and natural resources like mines and forests. - Patrimonial:
Owned by the State, provinces, cities, or municipalities: This category includes property NFP Not For PUBLIC USE but still owned by the government.
Examples:
State: Buildings used for administrative purposes, government-owned corporations, and land not designated for public use.
Local government: Public markets, hospitals, and land not designated for public use within their jurisdiction. - Private:
Owned by individuals or groups: This category includes all property not owned by the government.
Examples:
Individually: Houses, cars, furniture, and personal belongings.
Collectively: Lands owned by corporations, churches, or other private entities.
Key Points:
Public dominion property cannot be acquired by individuals through private ownership means like buying or inheriting.
Patrimonial property, under certain conditions, can be sold, leased, or transferred to private entities.
The classification of property is crucial for determining how it can be used, managed, and disposed of.
IV. PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS
B. Ownership (Civil Code, arts. 427-439)
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Understanding Your Rights as a Property Owner in the Philippines:
These articles outline the various rights and limitations associated with owning property in the Philippines. Here’s a breakdown for easier understanding:
- Your Rights as an Owner:
Enjoy and dispose: You have the right to use and manage your property freely, including selling it, renting it out, or making changes to it (Article 428).
Exclude others: You can prevent others from accessing or using your property without your permission (Article 429). You can take reasonable measures to enforce this, like building fences or installing security systems (Article 430).
Recover your property: If someone takes possession of your property, you can take legal action to get it back (Article 428). - Limitations on Your Rights:
Respect others’ rights: You cannot use your property in a way that harms others, like creating excessive noise or pollution (Article 431).
Allow necessary interference: In extreme circumstances, others might be allowed to interfere with your property to prevent imminent danger, like entering your house to put out a fire (Article 432). However, you can seek compensation for any resulting damage.
Respect legal restrictions: You cannot use your property in ways prohibited by law or regulations, like violating zoning laws or building codes. - Special Situations:
Presumption of ownership: If someone is in possession of property and claims ownership, it’s presumed they are the rightful owner until proven otherwise in court (Article 433).
Eminent domain: The government can take your property for public use, but they must pay you fair compensation (Article 435).
Hidden treasure: If you find hidden treasure on your property, you keep it. However, if you find it on someone else’s property or public land by chance, you share it with the owner (Article 438).
Subsurface rights: You own the land surface and everything beneath it, allowing you to build structures or make excavations, but again, respecting limitations like zoning laws (Article 437).
IV. PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS
C. Right of Accession; Movables and Immovable (Civil Code, arts. 440-475)
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Understanding the Right of Accession in the Philippines:
The right of accession is a legal concept that deals with situations where ownership changes due to the combination or attachment of different properties. This summary focuses on movable and immovable property, with key points and examples:
- Immovable Property (Land and Buildings):
General Rule: If someone builds, plants, or sows on another person’s land, the landowner owns the additions (Article 445). This applies even if the builder or planter acted in good faith (believing they owned the land).
Exceptions:
Good faith by both parties: If both the landowner and the builder/planter acted in good faith, the landowner can either:
Keep the additions and pay compensation to the builder/planter (Article 448).
Force the builder/planter to buy the land at its fair market value.
Bad faith by the builder/planter: If they acted in bad faith (knowingly built on someone else’s land), they:
Lose their investment (the built structures or crops).
May be required to compensate the landowner for damages (Article 450).
Bad faith by the landowner: If the landowner knew about the construction but didn’t object, they are treated as acting in good faith (Article 453).
Special Cases:
Accretion: Land gradually added to a riverbank by the water’s flow belongs to the landowner (Article 457).
Abandoned riverbeds: Land left behind when a river changes course belongs to the new bordering landowners (Article 461).
Islands: Islands formed in navigable waters belong to the state, while those formed in non-navigable rivers belong to the owners of the adjacent banks (Articles 464, 465).
Example: If someone mistakenly builds a house on another person’s land:
Good faith: The owner of the land can decide to keep the house and pay the builder for the cost of construction (Article 448).
Bad faith: The builder loses the house and might need to compensate the landowner for any damages caused (Article 450).
- Movable Property:
Combining things: When two different owners’ movable properties become accidentally attached (e.g., paint spills on someone’s clothes), the owner of the more valuable item becomes the owner of the combined item, with the other owner receiving compensation (Articles 466-468).
Intentional mixing: If someone intentionally mixes their belongings with someone else’s (e.g., combining food ingredients), and the items cannot be separated, each owner gets a share of the mixture proportional to the value of their original items (Article 472).
Transformation: If someone uses another person’s material to create a new object (e.g., melting gold jewelry to make a ring), the creator owns the new object but must compensate the material owner (Article 474). However, if the new object’s value is significantly higher due to artistic or scientific reasons, the material owner cannot claim it.
Example: If someone accidentally spills paint on another person’s shirt:
If the shirt is more valuable than the paint, the shirt owner keeps the shirt and receives compensation for the cleaning (Article 466, 469).
If the paint is much more valuable (e.g., rare artist’s paint), the shirt owner might have to give the shirt to the paint owner and receive compensation for the shirt itself (Article 469).
IV. PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS
D. Quieting of Title (Civil Code, arts. 476-481)
Quieting of Title Explained Simply:
Imagine you own a house, but there’s an old, seemingly valid mortgage document registered on the property. This document might cast a “cloud” of doubt on your true ownership, even though the mortgage might be already paid off or invalid. Quieting of Title is a legal process to remove such clouds and confirm your clear ownership of the property.
Here are the key points:
Who can file: You can file for Quieting of Title if you have a legal or equitable interest in a real property (land or buildings) and there’s a doubtful claim against your ownership, like an old mortgage, lien, or boundary dispute. You don’t need to be living on the property to file.
What it removes: This process aims to remove any invalid or unenforceable claims that could potentially harm your ownership rights.
Example: Sarah inherits a piece of land from her parents. However, she discovers an old document suggesting a neighbor has a claim to part of the land. Even though the neighbor’s claim might be weak or outdated, it creates a “cloud” on the title. Sarah can file for Quieting of Title to remove this cloud and confirm her full ownership of the land.
Additional points:
If you received any benefits from the person claiming against your ownership (e.g., rent from the neighbor in the example), you might need to return them.
Specific procedures for filing and conducting a Quieting of Title action are determined by the Supreme Court’s rules.
IV. PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS
E. Co-Ownership (Civil Code, arts. 484-501);
Co-Ownership Explained Simply:
Imagine you and your friend buy a beach house together. You both own the property jointly, but each has a share in it. This is called co-ownership. Here are the key points for easy understanding:
- Sharing Ownership and Responsibilities:
You and your friend own the entire property together, but each has a specific share (e.g., 50/50).
You share the benefits (renting it out) and responsibilities (maintenance costs) proportionally to your ownership share.
Equal shares are presumed unless otherwise agreed upon (e.g., you might own 60% if you paid more for the house). - Using and Maintaining the Property:
Both of you can use the house, as long as it’s used for its intended purpose (living, vacation rentals) and doesn’t prevent the other from using it.
Majority rule applies for decisions like repairs or improvements, considering ownership share (e.g., if you own 60%, your vote has more weight).
Each co-owner is responsible for contributing to preservation costs (taxes, repairs) based on their share. - Individual Rights and Partition:
Each co-owner can sell, rent, or mortgage their share without the other’s permission, but it only affects their portion upon final division.
Anyone can request a partition (division) of the property to become sole owners of their separate parts. However, there are exceptions:
If physically dividing the property (like a house) would render it unusable, it might be sold instead.
Agreements or legal restrictions might temporarily prevent partition (e.g., a 10-year agreement to keep the house together).
Example:
You and your friend buy a beach house for $200,000, with you contributing $120,000 (60%) and your friend contributing $80,000 (40%).
You would each own a share of the property based on your contribution (you: 60%, friend: 40%).
If the yearly maintenance cost is $5,000, you would be responsible for $3,000 (60%), and your friend would be responsible for $2,000 (40%).
If you decide to sell the house for $250,000, you would each receive your share based on your ownership percentage (you: $150,000, friend: $100,000).
IV. PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS
F. Possession (Civil Code, arts. 523-561)
Article 523: Defines possession as holding a physical thing or enjoying a right.
Article 524: Explains that possession can be exercised by yourself or on behalf of someone else.
Article 525: Distinguishes between two types of possession:
Possession as owner: You own and enjoy the thing (e.g., owning a book).
Possession as holder: You hold the thing for someone else (e.g., borrowing a friend’s book).
Article 526: Defines good faith possession as believing you have a legitimate right to the thing, even if there might be unknown legal issues.
Bad faith possession involves knowingly possessing something wrongfully obtained.
Article 527: Presumes good faith until proven otherwise. The burden of proof lies with the one who claims someone possesses something in bad faith.
Article 528: Once good faith is established, it continues even if you discover later issues, as long as you aren’t aware of wrongdoing at the time of possession.
Article 529: Assumes possession continues in the same way it was acquired (good or bad faith) until proven otherwise.
Article 530: Clarifies that only tangible things and rights can be possessed, not abstract concepts.
IV. PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS
G. Actions to Recover Ownership and Possession of Real Property
1. Accion Interdictal
2. Accion Publiciana
3. Accion Reivindicatoria
These three actions, Accion Interdictal, Accion Publiciana, and Accion Reivindicatoria, are all legal remedies available in some legal systems (particularly civil law jurisdictions) to recover possession or ownership of real property. However, each has distinct characteristics and applies in different scenarios. Here’s a comparison highlighting their key differences and similarities:
Similarities:
All three aim to recover real property: These actions are all used to regain control of real estate (land and buildings) from someone else who is holding it.
Rely on the principle of possession: All three actions rely to some extent on the concept of possession, either rightful or wrongful, as a basis for claiming the property.
Differences:
While all three actions, Accion Interdictal, Accion Publiciana, and Accion Reivindicatoria, aim to recover real property, their approaches and applications differ.
Accion Interdictal focuses on regaining possession after a recent disruption, often used against squatters who disturbed prior peaceful possession.
Accion Publiciana targets recovering possession based on good faith acquisition with a seemingly valid title (e.g., a faulty purchase agreement) and subsequent loss of possession before full ownership was established. This might be used if the rightful owner evicts you from a property you bought in good faith. Finally, Accion Reivindicatoria tackles recovering ownership itself, requiring proof of true ownership and unlawful possession by the other party. This is the most complex option and can be used against any unlawful possessor, regardless of their claim or good faith.
Examples:
Accion Interdictal: You are a tenant who was illegally evicted from your apartment. You can use this action to regain possession from the person who evicted you.
Accion Publiciana: You bought a house in good faith from someone who didn’t have the legal right to sell it. The rightful owner evicts you. You can use this action to regain possession as you had a legitimate claim to ownership based on your purchase, even if ultimately flawed.
Accion Reivindicatoria: You inherit a property from your parents. Someone else is occupying the property without your permission. You can use this action to reclaim ownership and evict the occupant.
F. Possession (Civil Code, arts. 523-561)
H. Easements; Easement of Right of Way (Civil Code, arts. 613-619 and 649-657)
DISCUSS TYPES OF EASEMENTS
These articles define and explain various aspects of easements and servitudes, which are legal rights granted to use another person’s property (servient estate) for the benefit of your own property (dominant estate):
Article 613:
Easement/Servitude: A legal burden placed on one property (servient estate) for the benefit of another distinct owner’s property (dominant estate).
Article 614:
Beneficiaries: Easements can benefit:
Another specific property (dominant estate) owned by a different person.
A community or specific individuals (not necessarily owning the burdened property).
Article 615:
Types of Easements:
Continuous vs. Discontinuous: Based on frequency of use (continuous: constant, e.g., right-of-way; discontinuous: occasional, e.g., access for maintenance).
Apparent vs. Nonapparent: Based on visibility of signs indicating the easement (apparent: visible signs, e.g., marked pathway; nonapparent: no visible indications).
Article 616:
Positive vs. Negative Easements:
Positive: Requires the servient estate owner to allow an action or perform it themselves (e.g., allowing a right-of-way through their property).
Negative: Prohibits the servient estate owner from doing something they otherwise could (e.g., restricting building height near your property).
Article 617:
Indivisibility of Easements: Easements are permanently linked to the properties they benefit or burden.
Article 618:
Dividing the Properties:
Dividing the Servient Estate: The easement remains even if the burdened property is divided, and each new owner shares the burden.
Dividing the Dominant Estate: Each owner of the divided dominant estate can fully use the easement without altering its location or increasing the burden on the servient estate.
Article 619:
Establishment of Easements:
Legal Easements: Created by law (e.g., right of access to a public road).
Voluntary Easements: Created by agreements between property owners (e.g., granting a neighbor access through your property for utilities).
IV. PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS
I. Nuisance (Civil Code, arts. 694-707)
IV. PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS
What are those (extraordinary) IMMOVABLES?
Movable Items Classified as Immovable in the Philippines:
While Article 415 lists various types of immovable property, some items on the list might seem inherently movable. Here’s a breakdown of those seemingly movable items and the rationale behind their classification as immovable:
- Machinery, receptacles, instruments or implements:
Example: A large industrial oven permanently installed in a factory.
Reasoning: Although ovens are technically movable, Article 415(5) considers them immovable if they are specifically installed by the owner and are essential for the functioning of an industry or work on the land. Removing them would significantly impact the land’s purpose and value. - Animal houses, pigeon-houses, beehives, fish ponds:
Example: A transportable chicken coop anchored to a concrete foundation on a farm.
Reasoning: While these structures might be built with movable components, Article 415(6) classifies them as immovable if the owner intends them to be permanent and they are attached to the land in some way, like the anchored chicken coop. They become an integral part of the land’s use for agricultural purposes. - Fertilizer actually used on a piece of land:
Example: Bags of fertilizer stored in a shed and then applied to the land.
Reasoning: Although fertilizer is inherently movable, Article 415(7) considers it immovable once it’s actually spread and incorporated into the land. This is because it becomes part of the soil and contributes to its agricultural value. - Docks and structures which, though floating, are intended to remain at a fixed place:
Example: A houseboat permanently moored to a specific location in a lake.
Reasoning: Article 415(9) considers these structures immovable despite their ability to float because their intended purpose is to remain stationary and serve a specific function in a fixed location. For instance, the houseboat provides living space while remaining anchored in a specific spot on the lake.
It’s important to remember that the legal definition of immovable property focuses not just on the inherent nature of the object but also on its attachment or purpose in relation to the land. Even if an object seems inherently movable, its classification can be influenced by its integration with the land or its intended permanent use on the land.
Difficult and Complex MCQ for Comprehension:
1. Mark owns a valuable painting. He gives it to Sarah, a renowned artist, for framing. Sarah mistakenly uses the painting to create a new artwork. What are Mark’s rights under the Right of Accession?
A. Appropriate the new artwork and keep it without compensating Sarah.
B. Appropriate the new artwork and compensate Sarah for the value of the framing.
C. Demand compensation from Sarah for the value of the original painting and keep the painting.
D. Demand compensation from Sarah for the value of the original painting and also keep the new artwork.
Answer: Mark is the owner of the material (painting) and Sarah is the one who transformed it. Based on Article 474, Mark has two options:
B. Appropriate the new artwork and compensate Sarah for the value of the framing. (Correct Answer)
Legal Basis: Article 474 of the New Civil Code of the Philippines.
- Two friends, Alex and Bea, accidentally mix their gold necklaces while swimming. The necklaces are now inseparable without damaging them. What are their rights under the Right of Accession?
Answer Options:
A. Alex owns the entire necklace because his necklace was heavier.
B. Bea owns the entire necklace because her necklace was more valuable.
C. Both Alex and Bea will share the necklace equally.
D. Both Alex and Bea will acquire a share proportional to the value of their original necklaces.
Legal Basis: Article 472 of the New Civil Code of the Philippines.
D. Both Alex and Bea will acquire a share proportional to the value of their original necklaces. (Correct Answer)
Answer: This scenario falls under Article 472. Since the mixing was accidental and neither acted in bad faith, both Alex and Bea will acquire a share in the combined necklace proportional to the value of their original necklaces. (Article 472)
- Carlos builds a house on Maya’s land, believing it to be his own. Maya knew about the construction but didn’t object. What are Maya’s options under the Right of Accession?
A. Keep the house and force Carlos to pay rent for the land.
B. Keep the house for free and not compensate Carlos in any way.
C. Keep the house and pay Carlos for the cost of construction.
D. Force Carlos to tear down the house and return the land to its original state.
Legal Basis: Articles 448 and 453 of the New Civil Code of the Philippines.
Answer: Although Carlos acted in good faith, Maya’s knowledge and lack of objection are considered bad faith on her part (Article 453). Therefore, Maya has the same rights as if both acted in good faith:
C. Keep the house and pay Carlos for the cost of construction. (Correct Answer)
- Daniel finds a valuable diamond ring while walking on the beach. Does he become the owner under the Right of Accession?
Answer Options:
A. Yes, Daniel automatically becomes the owner of the ring under the Right of Accession.
B. No, Daniel cannot claim ownership of the ring under the Right of Accession, but he can keep it if no one claims it.
C. No, Daniel cannot claim ownership of the ring, and he must turn it in to the authorities.
D. Daniel can claim ownership of the ring if he can prove it was abandoned by the previous owner.
Legal Basis: The Right of Accession (Articles 440-475) does not apply to finding lost or abandoned items.
Answer: No. The Right of Accession deals with situations where ownership changes due to the combination or attachment of properties. Finding a lost or abandoned item doesn’t involve combining or attaching anything, and therefore doesn’t automatically grant ownership to the finder. There are specific laws regarding lost items, and Daniel might need to follow legal procedures to claim ownership.
C. No, Daniel cannot claim ownership of the ring, and he must turn it in to the authorities. (Correct Answer)
- A river gradually adds fertile soil to the bank of Elena’s land, increasing its size. Does Elena own the added land under the Right of Accession?
Answer Options:
A. No, the added land belongs to the government.
B. Yes, Elena owns the added land under the Right of Accession.
C. Elena needs to pay the government for the added land.
D. The added land belongs to the owner of the land on the opposite side of the river.
Legal Basis: Article 457 of the New Civil Code of the Philippines.
B. Yes, Elena owns the added land under the Right of Accession. (Correct Answer)
Answer: Yes. Article 457 states that owners of land adjoining rivers own the accretion (land gradually added) by the river’s current. This applies even if the land increase happens gradually.
Conflict Scenarios and Syllogisms:
1. Scenario: Lena plants tomato seeds on her land. John, mistakenly believing it to be his land, harvests the tomatoes when they are ripe. Who owns the harvested tomatoes?
Question: Can John claim ownership of the tomatoes based on the Right of Accession (Article 441)?
Answer: No. While Article 441 states that the owner of the land owns the fruits produced by it, John is not the legal owner of the land. Therefore, he cannot claim ownership of the tomatoes based on the Right of Accession.
- Scenario: Mia builds a swimming pool on her property using expensive marble tiles stolen by her contractor, Ben. When the theft is discovered, the rightful owner of the tiles, Carlos, demands their return. Who has the right to the tiles?
Question: Does Carlos have the right to claim the tiles back from Mia, even though they are now part of her swimming pool?
Answer: Yes. Although Mia is the owner of the land and the pool is now attached to it, she acquired the tiles in bad faith (through theft). Therefore, Carlos, the rightful owner, can claim the tiles back under Article 470, even if it requires removing them from the pool.