PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS Property An economic concept- a m a s s o f t h i n g s o r o b j e c t s u s e f u l t o human activity and which are necessary to life,

, for which reason they may in one way o r a n o t h e r b e o r g a n i z e d a n d d i s t r i b u t e d , but always for the use of man. Property as a subject in Law classifies and d e f i n e s t h e d i f f e r e n t k i n d s o f a p p r o p r i a b l e objects, provides for their acquisition and loss, and in general treats of the nature and consequences of real rights. Right to property the juridical tie by virtue of w h i c h a p e r s o n h a s t h e e x c l u s i v e p o w e r t o receive or obtain all the benefits from a thing, except those prohibited or restricted by law or by the rights of others.- e m p h a s i z e s t h e vinculum a s o p p o s e d t o ownership (mass of things) TITLE I CLASSIFICATION OF PROPERTY 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. Things/property A l l o b j e c t s t h a t e x i s t a n d c a n b e of use to man. All those that are already appropriated or are in the possession of man, those that can be possessed, t h o s e t h a t a r e a l r e a d y p o s s e s s e d a n d a r e f o u n d i n m a n s p a t r i m o n y . Classification of things 1. Res nullius - things which have been intentionally abandoned (res derelictae) by their owners which are still considered as things, even if for the moment they have no owners because they can still be the object of appropriation. Belonging to no one they have not been appropriated 2. Res communes - belonging to everyone f o r t h e u s e a n d e n j o y m e n t o f a l l mankind 3. res alicujus - belonging to someone; privately owned either in collective or individual capacity Requisites to be considered a property: a. utility, or the capacity to satisfy human wants b. individuality and substance c. susceptibility of being appropriated Common things not susceptible of appropriation as a whole mass, but the l imited quantity of the whole mass may be appropriated and thereby converted into property. ***Human body is not a thing. Upon death, the corpse becomes a t h i n g , a l t h o u g h i t i s n o t susceptible of appropriation and commerce by reason of public morality. * * * C o n t r a c t s b y r e l a t i v e s w i t h r e s p e c t t o t h e c o r p s e o f a d e c e a s e d p e r s o n , w h i c h d o n o t refer to the funeral, autopsy, or related matter, are void as contrary to morals. Appropriation Occupation; wilful apprehension of a corporeal object which has no owner, with intent to acquire its ownership.***Things include patrimonial rights. Kinds of rights: 1. real rights jus in re; power belonging to a person over a specific thing, without a passive subject individually determined against whom such right may be personally exercised g i v e s t o a p e r s o n a d i r e c t a n d immediate juridical power over a thing which is enforceable against the whole world. characteristics: A s u b j e c t a n d a n o b j e c t connected by a relation of ownership of the former over the latter. a general obligation or duty to respect for such relation, t h e r e b e i n g n o p a r t i c u l a r passive subject ctive actions recognized by law to protect such relation against anyone who may want to disturb it. 2. Personal rights j u s a d r e m ; power belonging to one person to demand of another, as a definite passive subject, the fulfilment of a prestation to give, to do or not to do. right of obligation or obligation characteristics: ** There are 2 subjects (active and passive), who are d etermined and specified ** G e n e r a l o b l i g a t i o n o n t h e p a r t o f t h e 3 r d p e r s o n s t o respect the relation between the active & passive subject

** effective actions in favour of t h e a c t i v e s u b j e c t a g a i n s t t h e p a s s i v e s u b j e c t f o r t h e p e r f o r m a n c e o f t h e prestation by the latter or so t h a t t h e r e l a t i o n b e t w e e n t h e m m a y p r o d u c e i t s natural and juridical effects. Real rights vs Personal Rights O n e d e f i n i t e active subject and the rest of t h e w o r l d a s passive subjects without determination C o r p o r e a l o r tangible thing

Number of persons involved

Definite active subject and definite passive subject

Object of the juridicalrelation Intangible thing

the prestation of the debtor directly affects the thing T h i n g t h r o u g h t h e p r e s t a t i o n of the debtor By title alone

How the will of the active Subject affects the thing Cause of creating the juridical relation

Indirectly affects the related to it by mode and title

loss or de s t r u c t i o n o f the thing L o s s o r d e s t r u c t i o n o f the thing Methods of extinguishment of the juridical relation Nature of the things arising from them Produce personal actions against the definite debtor Does not extinguish the relation gives rise to real actions against 3rd persons

Classification of things: HUMAN DIVINE = regulated by canonical laws spiritual corporeal sacred religious holy temporal = Governed by laws promulgated by man material, corporeal, or physical, or manifest to the sense

by reason of ownership by reason of their immobility

common

by reason of number existing or present by reason of importance fungibles by reason of alienability

public corporate nullius private direct general use patrimonial indirect use communal immovables or real movables by nature by nature by incorporation by analogy by their destination semi-movables by analogy universal generic specific by reason of existence future by reason of divisibility divisible indivisible principal accessory by reason of homogeneity of the specie non-fungibles by reason of consumability consumables non-consumables within the commerce of man o u t s i d e t h e c o m m e r c e o f man

intangible, incorporeal, or juridical the predominant distinction of property into real and personal is the possibility of transfer of the latter or of its movement in space, whether by itself or by some external acts. ****The classification of property assumes its importance from the different provisions of the l a w t h a t g o v e r n s i t s a c q u i s i t i o n , p o s s e s s i o n , disposition, loss, and registration of immovable sand movables.A r t . 4 1 4 d i d n o t m e n t i o n t h e m i x e d o r t h e semi-immovables CHAPTER 1IMMOVABLE PROPERTY ARTICLE 415. The following are immovable property: (1) Land, buildings, roads and constructions of all kinds adhered to the soil; (2) Trees, plants, and growing fruits, while they area t t a c h e d t o t h e l a n d o r f o r m a n i n t e g r a l p a r t o f a n immovable;

(3) Everything attached to an immovable in a fixed m a n n e r , i n s u c h a w a y t h a t i t c a n n o t b e s e p a r a t e d there from without breaking the material or deterioration of the object; (4) Statues, reliefs, paintings or other objects for use or ornamentation, placed in buildings or on lands by t h e o w n e r o f t h e i m m o v a b l e i n s u c h a m a n n e r t h a t i t reveals the intention to attach them permanently to the tenements; ( 5 ) M a c h i n e r y , r e c e p t a c l e s , i n s t r u m e n t s o r implements intended by the owner of the tenement for a n i n d u s t r y o r w o r k s w h i c h m a y b e c a r r i e d o n i n b uilding or on a piece of land, and which tend directly to meet the needs of the said industry or works; (6) Animal houses, pigeon-houses, beehives, fish ponds or breeding places of similar nature, in case their o w n e r h a s p l a c e d t h e m o r p r e s e r v e s t h e m w i t h t h e 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 ) M i n e s , q u a r r i e s , a n d s l a g d u m p s , w h i l e t h e 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) T h e l a w d o e s n o t d e f i n e w h a t p r o p e r t i e s a r e immovable, they are merely enumerated. Classes of immovables: a. b y n a t u r e c a n n o t b e m o v e d f r o m place to place (par. 1 & 8 of Art. 415) b. by incorporation essentially movables, b u t a r e a t t a c h e d t o a n i m m o v a b l e i n such a manner as to be an integral part thereof (pars. 2,3,4, & 6 of Art. 415 ) c. by destination essentially movable, b u t b y p u r p o s e f o r w h i c h t h e y h a v e been placed in an immovable, partake of the nature of the latter because of the a d d e d u t i l i t y d e r i v e d t h e r e f r o m ( pars.4, 5, 6, 7, & 9 of Art. 415 ) d. by analogy or by law (p a r . 1 0 o f A r t . 415) Paragraph 1: (Land, buildings, roads and constructions of all kinds adhered to the soil;) Immovable by nature * * * s e p a r a t e t r e a t m e n t b y t h e p a r t i e s o f a building from the land on which it stands, does n o t c h a n g e s t h e i m m o v a b l e c h a r a c t e r o f t h e building, which by itself can be the subject of REM. Paragraph 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 revealst h e i n t e n t i o n t o a t t a c h t h e m p e r m a n e n t l y t o t h e tenements) Immovable by incorporation and by destination ***these can generally be separated from the i m m o v a b l e w i t h o u t b r e a k i n g t h e m a t t e r o r injuring the object. ***Objects in pars. 4 & 5 become immobilized only when placed in the tenement by the owner of such tenement.

Case: Davao Sawmill Co. vs Castillo , 6 1 P h i l 709 Movables become immobilized when placed in a plant by the owner of the property or plant but, not when so placed by a tenant, usufructuary or any person having only temporary right unless such person acted as the agent of the owner . Paragraph 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 apiece of land, and which tend directly to meet the needs of the said industry or works) Immovable by destination ***the immovable condition of these objects depends upon their being destined for use in the industry or work in the tenement; the moment they are separated, not necessarily from the immovable, but from the i n d u s t r y o r w o r k i n w h i c h t h e y a r e u t i l i z e d ; t h e y r e c o v e r their condition as movables. Machinery intended by the owner o f a n y b u i l d i n g o r l a n d f o r u s e i n c o n n e c t i o n w i t h a n y i n d u s t r y o r trade being carried on therein and w h i c h a r e e x p r e s s l y a d a p t e d t o meet the requirements if such trade or industry, are considered as real p r o p e r t y . ( B . H . B e r k e n k o t t e r v s . Cu Unjieng, 61 Phil. 663) * * * w o r k a n i m a l s o r b e a s t o f b u r d e n a r e n o t included in this paragraph. * * * t h i s p a r a g r a p h i n c l u d e s t h e a g r i c u l t u r a l utensils or implements given by the owner of a tenement to the tenants or workers thereon. ***excluded in this article are those which are merely for decorative purposes, and even those which are necessary for other purposes distinct from the requirements of the industry or works being carried on in the tenement. Essential requisites: 1. the placing must be made by the owner o r h i s a g e n t o r d u l y a u t h o r i z e d representative 2. the industry or works must be carried on in the building or on the land 3. the machines must tend directly to meet the needs of the said industry or works. 4. T h e m a c h i n e s m u s t b e e s s e n t i a l a n d principal elements in the industry and not merely incidental.

Case: Mindanao Bus Co. vs. City Assessor & Treasurer , GR L-17870; Board Of Assessment Appeals Vs Meralco, 10 SCRA 68 ***If the machine is still in the building but is no longer used in the industry conducted therein, the machine reverts to the condition of a chattel ***If still needed for the industry but separated f r o m t h e t e n e m e n t t e m p o r a r i l y , t h e p r o p e r t y c o n t i n u e s t o b e i m m o v a b l e , i n a s m u c h a s p a r a g r a p h 5 r e f e r s t o r e a l p r o p e r t y b y destination or purpose and not to real property by incorporation Paragraph 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 h a v e t h e m p e r m a n e n t l y a t t a c h e d t o t h e l a n d , a n d f o r m i n g a p e r m a n e n t p a r t o f i t ; t h e a n i m a l s i n t h e s e places are included) Immovable by incorporation and destination * * * w h e n t h e a n i m a l s i n s i d e t h e p e r m a n e n t a n i m a l h o u s e s a r e a l i e n a t e d o n e r o u s l y o r gratuitously, it is believed that the transaction is an alienation of personal property, unless the building or the tenement is itself also alienated Paragraph 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 revealst h e i n t e n t i o n t o a t t a c h t h e m p e r m a n e n t l y t o t h e tenements) I m m o v a b l e b y i n c o r p o r a t i o n & b y destination ***these can generally be separated from the i m m o v a b l e w i t h o u t b r e a k i n g t h e m a t t e r o r injuring the object. ***Objects in pars. 4 & 5 become immobilized only when placed in the tenement by the owner of such tenement. Case: Davao Sawmill Co. vs Castillo , 6 1 P h i l 709 Movables become immobilized w h e n p l a c e d i n a p l a n t b y t h e o w n e r o f t h e p r o p e r t y o r p l a n t , b u t n o t when so placed by a tenant, usufructuary or any person having only temporary right unless such person a c t e d as the agent of the owner. Paragraph 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 apiece of land, and which tend directly to meet the needs of the said industry or works) Immovable by destination ***the immovable condition of these objects depends upon their being destined for use in t h e i n d u s t r y o r w o r k i n t h e t e n e m e n t ; t h e moment they are separated, not necessarilyfrom the i m m o v a b l e , b u t f r o m t h e i n d u s t r y o r w o r k i n w h i c h t h e y a r e u t i l i z e d ; t h e y r e c o v e r their condition as movables. Machinery intended by the owner o f a n y b u i l d i n g o r l a n d f o r u s e i n c o n n e c t i o n w i t h a n y i n d u s t r y o r trade being carried on therein and w h i c h a r e e x p r e s s l y a d a p t e d t o meet the requirements if such trade or industry, are considered as real p r o p e r t y . ( B . H . B e r k e n k o t t e r v s . Cu Unjieng, 61 Phil. 663) * * * w o r k a n i m a l s o r b e a s t o f b u r d e n a r e n o t included in this paragraph. * * * t h i s p a r a g r a p h i n c l u d e s t h e a g r i c u l t u r a l utensils or implements given by the owner of a tenement to the tenants or workers thereon .***excluded in this article are those which are merely for decorative purposes, and even those which are necessary for other purposes distinct from the requirements of the industry or works being carried on in the tenement. Essential requisites: the placing must be made by the owner o r h i s a g e n t o r d u l y a u t h o r i z e d representative the industry or works must be carried on in the building or on the land the machines must tend directly to meet the needs of the said industry or works. T h e m a c h i n e s m u s t b e e s s e n t i a l a n d principal elements in the industry and not merely incidental. Case: Mindanao Bus Co. vs. City Assessor & Treasurer , GR L-17870; Board Of Assessment Appeals Vs Meralco, 10 SCRA 68 ***If the machine is still in the building but is nolonger used in the industry conducted therein, the machine reverts to the condition of a chattel ***If still needed for the industry but separated f r o m t h e t e n e m e n t t e m p o r a r i l y , t h e p r o p e r t y c o n t i n u e s t o b e i m m o v a b l e , i n a s m u c h a s p a r a g r a p h 5 r e f e r s t o r e a l p r o p e r t y b y destination or purpose and not to real property by incorporation Paragraph 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 h a v e t h e m p e r m a n e n t l y a t t a c h e d t o t h e l a n d , a n d f o r m i n g a p e r m a n e n t p a r t o f i t ; t h e a n i m a l s i n t h e s e places are included) Immovable by incorporation and destination * * * w h e n t h e a n i m a l s i n s i d e t h e p e r m a n e n t a n i m a l h o u s e s a r e a l i e n a t e d o n e r o u s l y o r gratuitously, it is believed that the transaction is an alienation of personal property, unless the building or the tenement is itself also alienated Paragraph 7: (Fertilizer actually used on a piece of land) Immovable by destination ***fertilizers should be on the land where they are to be utilized, because it is only then that the intention of the owner to use them on the tenement is beyond doubt.

Paragraph 8: ( M i n e s , q u a r r i e s , a n d s l a g d u m p s , w h i l e t h e m a t t e r thereof forms part of the bed, and waters either running or stagnant) Immovable by nature slag dump D i r t a n d s o i l t a k e n f r o m a m i n e and piled upon the surface of the ground. Inside the dump can be found the minerals. * * * W a t e r s i n t h i s p a r a g r a p h r e f e r s t o n a t u r a l bodies of waters.(rivers, lakes, lagoons, etc) Paragraph 9: ( D o c k s a n d s t r u c t u r e s w h i c h , t h o u g h f l o a t i n g , a r e intended by their nature and object to remain at a fixed place on a river, lake, or coast) Immovable by destination Vessels are considered personal property may be the object of chattel mortgage b u t s u c h s h o u l d b e r e g i s t e r e d i n t h e r e c o r d o f t h e C o l l e c t o r o f C u s t o m s a t the port of entry not on the Registry of Deeds or Property. A l t h o u g h t h e y a r e p e r s o n a l p r o p e r t y , they partake to a certain extent of the nature and conditions of real property because of their value and importance in the world of commerce. Paragraph 10: (Contracts for public works, and servitudes and other real rights over immovable property.) Immovable by analogy -refer not to material things but rights, which are necessarily intangible.S e r v i t u d e o r e a s e m e n t e n c u m b r a n c e i m p o s e d o n a n i m m o v a b l e f o r t h e b e n e f i t o f another immovable belonging to another owner , o r f o r t h e b e n e f i t o f a p e r s o n o r g r o u p o f persons. (Easement on the right of way) M a n r e s a b e l i e v e s t h a t b e c a u s e o f t h e enumeration of immovables under Art. 415, and the p r o v i s i o n s o f t h e f o l l o w i n g a r t i c l e s , i t i s d i f f i c u l t t o a d m i t o t h e r k i n d s o f i m m o v a b l e property. While the parties cannot by agreement treat as immovable that which is legally movable, they m a y i n c e r t a i n c a s e s t r e a t a s m o v a b l e s o m e things enumerated by law as immovable . CHAPTER 2 MOVABLE PROPERTY ARTICLE 416. The following things are deemed to be personal property: (1) Those movables susceptible of appropriation which are not included in the preceding article; (2) Real property which by any special provision of law is considered as personality; ( 3 ) F o r c e s o f n a t u r e w h i c h a r e b r o u g h t u n d e r control by science; and (4) In general, all things which can be transported f r o m p l a c e t o p l a c e w i t h o u t i m p a i r m e n t o f t h e r e a l property to which they are fixed. (335a) Test of Movable Character: whether it can be carried from place to place whether the change of location can be affected without injury to an immovable to which the object may be attached whether the object is not included in anyof the ten paragraphs of Art. 415Act 1508 (Chattel Mortgage Law)-(Sec. 7) recognize that growing crops are personal property and may be the object of chattel mortgage***electricity, gas, heat, oxygen, light, rays, and other forces of nature are by law, considered m o v a b l e . ( G e o t h e r m a l p o w e r , n u c l e a r , electricity) Semi-movables = i n c l u d e t h o s e w h i c h a r e susceptible of moving by themselves withouta s s i s t a n c e f r o m a n y o u t s i d e f o r c e , s u c h a s animals; movable. Intellectual property r i g h t o f t h e a u t h o r , artist, or inventor over his work is a personal p r o p e r t y . I t c o n s i s t s i n t h e p e c u n i a r y b e n e f i t which the owner can get by the reproduction or m a n u f a c t u r e o f h i s w o r k . I t i s e s s e n t i a l l y a monopoly of exploitation. Cases: Sibal vs Valdez , 50 Phil. 512;U.S. vs. Carlos, 21 Phil. 543 A r t . 4 1 7 . T h e f o l l o w i n g a r e a l s o c o n s i d e r e d a s personal property: ( 1 ) O b l i g a t i o n s a n d a c t i o n s w h i c h h a v e f o r their object movables or demandable sums; and (2) Shares of stock of agricultural, commercial and industrial entities, although they may have real estate. (336a) Obligations under Art. 417 mean credit. I n t a n g i b l e o b j e c t s s h o u l d b e c o n s i d e r e d personal because of the exclusive character of the enumeration of real property; all those not included therein are considered personal. All juridical persons must be deemed included in par. 2 of Art. 417 Case:Strochecker vs. Ramirez Art. 418. Movable property is either consumable or n o n c o n s u m a b l e . T o t h e f i r s t c l a s s b e l o n g t h o s e m o v a b l e s wh i c h c a n n o t b e u s e d i n a m a n n e r appropriate to their nature without t h e i r b e i n g consumed; to the second class belong all the others. (337)

Consumables those whose use according to their nature destroys the substance of the thing or causes their loss to the owner. cannot be used according to its nature without its being consumed Fungibles things whose individuality can be d e t e r m i n e d b y c o u n t i n g , w e i g h i n g , o r measuring.- t h e q u a l i t y o f b e i n g f u n g i b l e d e p e n d s u p o n their possibility because of their nature or the will of the parties of being substituted b y o t h e r s o f t h e s a m e k i n d , n o t h a v i n g a distinct individuality.- e . g . 1 0 h e a d s o f c a t t l e , 1 0 0 c o p i e s o f n ewspaper of a certain date Non-fungibles t h o s e w h i c h h a v e t h e i r o w n individuality and do not admit of substitution.- e . g . t h e t e n b o t t l e s o f w i n e w h i c h I h a v e i n my room Consumable Fungible classification of the thins into consumable and non consumable is according to the Nature of the thing. Classification of things into f u n g i b l e s and non-fungibles is a classification according to purpose depending on whether they can b e s u b s t i t u t e d b y o t h e r t h i n g s o f t h e s a m e k i n d , q u a l i t y , and quantity CHAPTER 3 PROPERTY IN RELATION TO THE PERSONTO WHOM IT BELONGS

ARTICLE 419. Property is either of public dominion or of private ownership. (338) Public dominion P r o p e r t y o f p u b l i c d o m i n i o n i s n o t owned by the State, but pertains to the State. a s t e r r i t o r i a l s o v e r e i g n e x e r c i s e s j u r i d i c a l p r e r o g a t i v e s o v e r s u c h property. Collective ownership for the general use and enjoyment p u r p o s e ; s e r v e t h e c i t i z e n s , n o t t h e State i n t e n d e d f o r c o m m o n w e l f a r e s o t h e y cannot be the object of appropriation. The relation of the State to this property arises from the fact that the State is the j u r i d i c a l r e p r e s e n t a t i v e o f t h e s o c i a l group. Sacred and religious objects h a v e b e e n c o n s i d e r e d o u t s i d e t h e c o m m e r c e o f m a n . T h e y a r e n e i t h e r public nor private property, in the sense t h a t a n y p r i v a t e p e r s o n c a n b e t h e owner thereof. Outside the field of civil law (Manresa) ARTICLE 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, roadstead, 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. (339a) P r o p e r t y o f p u b l i c d o m i n i o n i s o u t s i d e t h e commerce of man. Principles applicable to properties of public dominion: T h e y c a n n o t b e a l i e n a t e d o r l e a s e d o r o t h e r w i s e b e t h e s u b j e c t m a t t e r o f contracts T h e y c a n n o t b e a c q u i r e d b y p r e s c r i p t i o n against the State. T h e y a r e n o t s u b j e c t t o a t t a c h m e n t o r execution. They cannot be burdened by any voluntary easement. Property for public use c a n b e u s e d b y e v e r y b o d y , e v e n b y s t r a n g e r s o r a l i e n s ; i n a c c o r d a n c e with its nature; but n o b o d y c a n e x e r c i s e o v e r i t t h e r i g h t s o f a p r i v a t e o w n e r , e.g: S h o r e s p o r t i o n o f l a n d w h i c h i s s u b j e c t t o t h e e b b a n d f l o w o f t h e waters of the sea Accretions or additions to the shores of the sea by action of the water Navigable and non-navigable streams Creeks and esteros Streets Beds of rivers Property for public service Par. 2 of Art. 420 includes not only those used f o r t h e d e f e n s e o f t h e t e r r i t o r y , b u t a l s o a l l property devoted to public service Art. 420 do not distinguish between immovable sand movables; hence, whatever the condition of the property, provided it is for public service, it falls within this category. ARTICLE 421. All other property of the State, which is not of the character stated in the preceding article, is patrimonial property. (340a) Patrimonial property p r o p e r t y o v e r w h i c h the State has the same rights, and of which it m a y d i s p o s e , t o t h e s a m e e x t e n t a s p r i v a t e individuals in relation to their property, subject only to the administrative laws and regulations on the procedures of exercising such rights.- t h e y e x i s t f o r t h e S t a t e f o r a t t a i n i n g i t s e c o n o m i c e n d s , a s a m e a n s f o r i t s s u b s i s t e n c e , a n d t h e p r e s e r v a t i o n o f i t s natural organism. - S u b j e c t t o p r e s c r i p t i o n a n d c a n b e t h e objects of ordinary contracts. - P r o p e r t y o w n e d b y t h e S t a t e b u t i s n o t devoted to public use, public service, or the development of the national wealth ARTICLE 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) Property of public dominion ceases to be such and becomes private property of the State only upon the declaration by the government, t h r o u g h t h e e x e c u t i v e o r l e g i s l a t i v e departments, to the effect that it is no

l o n g e r needed for public use or service. M e r e p o s s e s s i o n o f l a n d d o e s n o t b y i t s e l f automatically divest it of its public character. ARTICLE 423. The property of provinces, cities, and municipalities is divided into property for public use and patrimonial property. (343) A R T I C L E 4 2 4 . P r o p e r t y f o r p u b l i c u s e , i n t h e p r o v i n c e s , c i t i e s , a n d m u n i c i p a l i t i e s , c o n s i s t o f t h e p r o v i n c i a l r o a d s , c i t y s t r e e t s , m u n i c i p a l s t r e e t s , t h e squares, fountains, public waters, promenades, and p u b l i c w o r k s f o r p u b l i c s e r v i c e p a i d f o r b y s a i d provinces, cities, or municipalities. A l l o t h e r p r o p e r t y p o s s e s s e d b y a n y o f t h e m i s patrimonial and shall be governed by this Code, without prejudice to the provisions of special laws. (344a) Same principles discussed under Art. 420 are a p p l i c a b l e f o r p r o p e r t y f o r p u b l i c u s e o f provinces and towns. ***LGUs can reclaim foreshore lands but they cannot reclaim submerged lands. A R T I C L E 4 2 5 . P r o p e r t y o f p r i v a t e o w n e r s h i p , besides the patrimonial property of the State, provinces, c i t i e s , a n d m u n i c i p a l i t i e s , c o n s i s t s o f a l l p r o p e r t y b e l o n g i n g t o p r i v a t e p e r s o n s , e i t h e r i n d i v i d u a l l y o r colle ctively. (345a) W h e r e a p e r s o n h a s p r o v e d h i s r i g h t o f ownership over a piece of land and it is not S h o w n t h a t t h e S t a t e h a s a s u p e r i o r r i g h t t h e r e t o , t h e f o r m e r m u s t b e r e c o g n i z e d a s owner even against the State. Provisions Common to the Three Preceding Chapters ARTICLE 426. Whenever by provision of the law, or an individual declaration, the expression "immovablethings 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,c o m m e r c i a l s e c u r i t i e s , s t o c k s a n d b o n d s , j e w e l r y , scientific or artistic collections, books, medals, arms,c l o t h i n g , h o r s e s o r c a r r i a g e s a n d t h e i r a c c e s s o r i e s , grains, liquids and merchandise, or other things which do not have as their principal object the furnishing or o r n a m e n t i n g o f a b u i l d i n g , e x c e p t w h e r e f r o m t h e context of the law, or the individual declaration, the contrary clearly appears. (346a) TITLE II CHAPTER 1 OWNERSHIP IN GENERAL ARTICLE 427. Ownership may be exercised over things or rights. (n) Ownership - I n d e p e n d e n t a n d g e n e r a l p o w e r o f a p e r s o n o v e r a t h i n g f o r p u r p o s e s r e c o g n i z e d b y l a w a n d w i t h i n t h e l i m i t s established thereby. (Filomusi) -A relation in private law by virtue of which a t h i n g p e r t a i n i n g t o o n e p e r s o n i s c o m p l e t e l y s u b j e c t e d t o h i s w i l l i n everything not prohibited by public law or the concurrence with the rights of another (Scialoja) -independent and general right of a person t o c on t rol a thing particularly i n h i s p o s s e s s i o n , e n j o y m e n t , d i s p o s i t i o n , a n d recovery, subject to no restrictions except t h o s e i m p o s e d b y t h e s t a t e o r p r i v a t e persons, without prejudice to the provisions of law. Kinds of Ownership: 1. Full ownership (jus in re propia) all the rights of an owner 2. n a k e d o w n e r s h i p ( n u d a p r o p r i e t a s ) o w n e r s h i p w h e r e t h e r i g h t t o t h e u s e and the fruits has been denied. 3. Sole ownership ownership is vested only in one person. 4. Co -ownership ownership is vested in tow or more persons unity of the property and plurality of the subjects (Manresa) Possessory inf ormation ( i n f o r m a c i o p o s s e s s o r i a ) p r i m a f a c i e e v o d e n c e t h a t t h e registered possessor is also the owner of the land involved. ARTICLE 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. (348a) Extent of right of ownership: Right to enjoy unless prevented by a contract or some other law, the owner cannot be deprived of the enjoyment of his property on the p l e a t h a t a n o t h e r n e e d s i t m o r e because of an emergency oJ u s u t e n d i r i g h t t o r e c e i v e from the thing what it produces oJus abutendi right to consume the thing by its use. D o e s n o t i n c l u d e t h e right to abuse Right to dispose o j u s d i s p o d e n d i ; p o w e r t o alienate, encumber, transform,a n d e v e n d e s t r o y t h e t h i n g owned. Includes the right not to dispose on l y t h e o w n e r c a n d i s p o s e o f p r o p e r t y , s u b j e c t t o t h e limitations imposed by law. oT h e p e r s o n w h o a c q u i r e s property from one who is not the o w n e r a n d h a s n o r i g h t t o d i s p o s e o f t h e s a m e , d e t a i n s the property without right or title, and the owner may recover the s a m e f r o m h i m . ( Tolentino vs Paraiso, 34 Phil. 609) Right to Recover o(Jus vindicandi ) right to exclude from the possession of the thing o w n e d b y a n y o t h e r p e r s o n t o w h o m t h e o w n e r h a s n o t t r a n s m i t t e d s u c h t h i n g , b y t h e proper action for restitution, with t h e f r u i t s , a c c e s s i o n s , a n d indemnification for damages.

Oowner of the thing may proceed n o t o n l y a g a i n s t t h e p e r s o n i n a c t u a l p o s s e s s i o n b u t a g a i n s t anyone unlawfully detaining it. oT h e p o s s e s s o r h a s t h e presumption of title in his favor, but if the plaintiff can prove his title as owner and establish the identity of the property claimed a s h i s , h e w i l l b e e n t i t l e d t o recover the property, even if the possession seems legalized by a c o n v e y a n c e . ( M e n d o z a v s Fulgencio, 8 Phil. 243) oThis right to recover is given by the law only to the owner of the thing, and not to one who by his own voluntary act has ceased to be the owner by the transfer of ownership to another. oHowever, this right of the owner to maintain an action to recover p o s s e s s i o n o f p r o p e r t y wrongfully taken from him, can b e t r a n s f e r r e d b y h i m , a n d h i s t r a n s f e r e e c a n m a i n t a i n t h e a c t i o n a g a i n s t t h e w r o n g d o e r . (Waite vs Peterson, 8 Phil. 449) oAs a basic rule, the person who claims that he has a better right to the property must prove both ownership and identity. (Flores vs IAC, 178 SCRA 717 ) oA p e r s o n i n p e a c e f u l possession of property must be respected in his possession and cannot be required to surrender p o s s e s s i o n u n t i l a c o m p e t e n t court rules otherwise. (E d u v s Gomez, 129 SCRA 603) oAn owner who did not object in the States exercise of power of e m i n e n t d o m a i n o v e r h i s property is deemed to have waived his right of action to r e c o v e r p o s s e s s i o n o f h i s p r o p e r t y a n d i s l e f t w i t h a n action for damages for the value of the property taken as his only remedy. Such denial of right to recover is partly on the ground o f e s t o p p e l s b u t p r i n c i p a l l y f o r reasons of public policy. Rights of an owner under the Roman Law jus possidendi right to possess jus utendi right to use jus abutendi - right to consume jus fruendi right to the fruits jus dispodendi right to dipose jus vindicandi right to recover Actions for possession: Forcible entry and unlawful detainer within the exclusive original jurisdiction of municipal and justice of the peace courts Formerly r e f e r r e d t o a s accioninterdictal F o r c i b l e e n t r y U n l a w f u l d e t a i n e r S u m m a r y a c t i o n t o r e c o v e r m a t e r i a l o r physical possession of r e a l p r o p e r t y w h e n ap e r s o n o r i g i n a l l y i n p o s s e s s i o n w a s deprived thereof byforce, intim i d a t i o n , s t r a t e g y , t h r e a t , o r stealth.A c t i o n t h a t m u s t b e b r o u g h t w h e n p o s s e s s i o n b y a l a n d l o r d , v e n d o r , vendee or their person of any land or buildingi s b e i n g u n l a w f u l l y w i t h h e l d a f t e r t h e e x p i r a t i o n o r termination of the right to hold possession, by v i r t u e o f a n y c o n t r a c t , express or implied oMay be brought by a p e r s o n d e p r i v e d o f t h e p o s s e s s i o n o f a n y l a n d o r b u i l d i n g b y f o r c e , i n t i m i d a t i o n , t h r e a t , s t r a t e g y , o r s t e a l t h ; (FISTS) a l a n d l o r d , v e n d o r , v e n d e e o r other person against whom thep o s s e s s i o n o f a n y l a n d o r b u i l d i n g i s u n l a w f u l l y w i t h h e l d a f t e r t h e e x p i r a t i o n o r termination of the right to hold P o s s e s s i o n , b y v i r t u e o f a n express or implied contract; or t h e l e g a l r e p r e s e n t a t i v e o r assigns of any of such landlord, vendor, vendee, or other person oMust be brought within 1 year from t h e u n l a w f u l d e p r i v a t i o n o r withholding of possession. o1 year period commences from the t i m e o f d e m a n d t o v a c a t e , a n d when several demands are made, the same is counted from the last letter of demand. oD e m a n d m a y b e i n w r i t i n g o r personal. oN o d e m a n d n e e d e d i f i t w a s s t i p u l a t e d t h a t h e s h o u l d v a c a t e the premises without necessity of f u r t h e r d e m a n d u p o n f a i l u r e t o c o m p l y w i t h t h e t e r m s o f t h e agreement. o T h e o n l y q u e s t i o n i n v o l v e d i n a n a c t i o n f o r f o r c i b l e e n t r y a n d unlawful detainer, is that of mere p h ys i c a l p o s s e s s i o n , a n d t h e decision in such action is res judicata o n l y o n t h e q u e s t i o n o f possession. oIn case judgment is issued in favor of the plaintiff, immediate execution m a y i s s u e t o p r e v e n t f u r t h e r damages to him. ( Patalinhug vsCA, 137 SCRA 487 ) su b l e s s e e s a r e b o u n d b y t h e j u d g m e n t r e n d e r e d a g a i n s t t h e lessee in an ejectment case even if t h e y h a d n o t b e e n m a d e p a r t i e s thereto. oT h e o n l y d a m a g e s t h a t c a n b e recovered in an ejectment suit aret h e f a i r r e n t a l v a l u e o r t h e reasonable compensation for theu s e a n d o c c u p a t i o n o f t h e r e a l property.

oM o r a l , e x e m p l a r y , a n d a c t u a l d a m a g e s a r e n o t c o n s i d e r e d a s rents nor reasonable compensation for the use and occupation of the p r e m i s e s n o r f a i r r e n t a l v a l u e . ( Baen vs. CA, 125 SCRA 634) oT h e d e f e n d a n t m a y s e t u p a c o u n t e r c l a i m f o r m o r a l d a m a g e s a n d r e c o v e r i t i f i t i s w i t h i n t h e jurisdiction of the court. Accion publiciana plenary action to recover possession; must be instituted in RTC H a s f o r i t s o b j e c t t h e r e c o v e r y o f the dominion over the property as owner. Prescriptive period is 10 years (Art.555, No. 4) I s s u e o f p o s s e s s i o n d e j u r e not possession de facto oissue is better right of possession oM a y b e i n s t i t u t e d w h e n e v e r t h e o w n e r i s d i s p o s s e s s e d b y a n y other means than those mentioned in Rule 70, Rules of Court. oIt is not necessary to wait until the e x p i r a t i o n o f o n e y e a r b e f o r e commencing such action. oI t m a y a l s o b e b r o u g h t a f t e r t h e e x p i r a t i o n o f s a i d p e r i o d o f o n e y e a r , i f n o a c t i o n h a d b e e n i n s t i t u t e d f o r f o r c i b l e e n t r y a n d d e t a i n e r d u r i n g t h a t t i m e i n t h e inferior court, otherwise, there has-been res judicata a n d c a n n o t b e discussed in a new action. oPendency of an accion publiciana d o e s n o t b a r e x e c u t i o n o f a j u d g m e n t f o r f o r c i b l e e n t r y . ( R a m i r e z v s . B l e s a , 1 0 6 S C R A 182 ) oThis will be the action for ejectment w h e n t h e p o s s e s s i o n o f l a n d b y another is due to tolerance of the owner. Accion reinvindicatoria A c t i o n t o r e c o v e r p o s s e s s i o n b a s e d o n ownership oR e f e r s t o r e s t i t u t i o n o f t h e possession only. oProper action in case of refusalof a party to deliver possession o f p r o p e r t y d u e t o a n a d v e r s e claim of ownership. oA suit to recover possession of a p a r c e l o f l a n d a s a n e l e m e n t o f o w n e r s h i p , b r o u g h t b y t h e o w n e r a g a i n s t t h e h o l d e r o r possessor of the land othe issue involved is ownership Replevin f o r m a n u a l d e l i v e r y o f p e r s o n a l p r o p e r t y ; u n d e r R u l e 6 0 o f t h e Rules of Court. Writ of possession issued only once, and only against parties in possession of the property at the time of registration. O r d e r d i r e c t i n g t h e s h e r i f f t o p l a c e a s u c c e s s f u l r e g i s t r a n t u n d e r t h e T o r r e n s s y s t e m i n possession R i g h t o f t h e r e g i s t e r e d o w n e r and his transferees to a writ of possession never prescribes. Writ of possession is improper t o e j e c t a n o t h e r f r o m possession, except in: L a n d r e g i s t r a t i o n proceeding Extrajudicial foreclosure of mortgage or real property J u d i c i a l f o r e c l o s u r e o f p r o p e r t y p r o v i d e d t h a t t h e m o r t g a g o r h a s p o s s e s s i o n a n d n o 3 r d p a r t y has intervened Execution sales. Writ of injunction to prevent or restrain acts of trespass and i l l e g a l i n t e r f e r e n c e b y o t h e r s w i t h t h e possession of property oG r a n t e d o n l y t o p l a i n t i f f w h o i s a d m i t t e d l y t h e o w n e r o f t h e p r o p e r t y a n d i s i n t h e possession thereof. on o t a p r o p e r r e m e d y f o r t h e recovery of possession o(Forcible entry action) Art. 539, NCC grants to the dispossessed p l a i n t i f f a r i g h t , w i t h i n 1 0 d a y s from the filing of the complaint, t o f i l e a m o t i o n f o r w r i t o f preliminary injunction to restore him in possession. o(forcible entry action) Rule 70,section 3, of the Rules of Court, allows preliminary injunction top r e v e n t t h e d e f e n d a n t f r o m c o m m i t t i n g f u r t h e r a c t s o f d i s p o s s e s s i o n a g a i n s t t h e plaintiff. Removal of Improvements op e t i t i o n t o a v a i l o f t h i s a c t i o n i s n e e d e d f o r a s n o t t o v i o l a t e Commonwealth Act No. 89 Limitations on Ownership: 1 . g e n e r a l l i m i t a t i o n s f o r t h e b e n e f i t o f the State power of eminent domain police power * * U n l i k e i n e m i n e n t d o m a i n , t h e property may be taken or destroyedwithout compensation. power of taxation* * u n l i m i t e d i n f o r c e a n d s o searching in extent**imposes burden which, in case of f a i l u r e t o d i s c h a r g e i t , m a y b e f o l l o w e d b y s e i z u r e a n d s a l e o r confiscation of property 2.specific limitations legal servitude 3. l i m i t a t i o n s i m p o s e d b y t h e p a r t y transmitting ownership (however, lawintervenes to prevent limitations that arearbitrary and capricious) by contract by last will 4 . l i m i t a t i o n s i m p o s e d b y t h e o w n e r himself voluntary servitude mortgages pledges lease right stipulation in inalienability absolutely perpetual, suchstipulation is void if

 e m p o r a r y p r o h i b i t i o n i s v a l i d a s l o n g a s i t s e r v e s s o m e s e r i o u s a n d l a w f u l interest. t (if valid, the sameproperty is also not subject to attachment) a x i m u m M p e r i o d o f i n a l i e n a b i l i t y i s 2 0 y e a r s (Art. 870) there would be no unlawful aggression when aperson acts pursuant to a right. ARTICLE 433. Actual possession under claim of o w n e r s h i p r a i s e s d i s p u t a b l e p r e s u m p t i o n o f o w n e r s h i p . T h e t r u e o w n e r m u s t r e s o r t t o j u d i c i a l process for the recovery of the property. (n) If a person believes that he is entitled top o s s e s s i o n o f a t h i n g w h i c h i s i n t h e possession of another, he may: demand the delivery of the possession; or r e s o r t t o j u d i c i a l p r o c e s s f o r t h e recovery of the possession. (if demand is refused)2 r e q u i r e m e n t s t o r a i s e a d i s p u t a b l e presumption of ownership: actual possession, and claim of ownership A r t . 4 3 3 a p p l i e s t o b o t h r e a l a n d p e r s o n a l properties ARTICLE 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 defendants claim. (n) T h e p o s s e s s o r o f t h e p r o p e r t y h a s t h e presumption of title in his favor, and unless the plaintiff proves he has better right, he cannot recover the property form the defendant. Requisites in an action to recover: p r o o f t h a t h e h a s b e t t e r t i t l e t h a n t h e defendant of the property identity of the property The plaintiff must rely on the title on which he founds his right of ownership and not upon the defects in the defendant's title. O w n e r s h i p m a y b e p r o v e d b y a n y e v i d e n c e admissible in law. Fact of long possession in conjunction with other proof of title in order to show ownership. T a x d e c l a r a t i o n s a n d r e c e i p t s a c c o m p a n i e d b y p o s s e s s i o n f o r a period sufficient for prescription The ownership and title to land duly recorded cannot be overcome by gratuitous title, such as inheritance, donation, or mere tax declaration. Composition title P r o o f o f e x c l u s i v e ownership of the person who appears therein as grantee Possessory information title prima facie e v i d e n c e t h a t t h e p e r s o n w h o i n s t i t u t e d t h e proceedings holds the property as owner; and t h e p u r c h a s e r o f t h e l a n d f r o m t h e h o l d e r o f such title, is prima facie the owner thereof. ARTICLE 435. No person shall be deprived of his property except by competent authority and for public use and always upon payment of just compensation. Should this requirement be not first complied with, thecourts shall protect and, in a proper case, restore the owner in his possession. (349a) Power of eminent domain e s s e n t i a l t o t h e g e n e r a l w e l f a r e o f society delegated power m a y b e e x e r c i s e d o n l y i n a c c o r d a n c e with the due process of law. A statute authorizing the exercise of thep o w e r o f e m i n e n t d o m a i n s h o u l d b e c o n s t r u e d s t r i c t l y i n f a v o r o f t h e landowners whose property is affected by its terms. An owner of property so occupied may, by his acquiescence, be estopped from recovering the property occupied or from enjoining its use. A w a r d o f c o m p e n s a t i o n i s a c o n d i t i o n precedent for the taking of private property for public use. Compensation an equivalent for the value of the land. Just compensation a fair and full equivalent for the loss sustained. market value not prospective value of t h e c o n d e m n e d p r o p e r t y t o w h i c h o f c o u r s e , m u s t b e a d d e d h i s con sequential damages, if any, or from w h i c h m u s t b e d e d u c t e d h i s consequential benefits, if any. If land is expropriated for a particular purpose w i t h t h e c o n d i t i o n t h a t w h e n t h e p u r p o s e h a s ended or abandoned the property shall return to i t s f o r m e r o w n e r , t h e n , w h e n t h e p u r p o s e i s t e r m i n a t e d o r a b a n d o n e d , t h e f o r m e r o w n e r reacquires the property so expropriated. Other cases of expropriation: p r i v a t e l a n d s t o b e s u b d i v i d e d a n d c o n v e y e d a t c o s t t o d e s e r v i n g individuals p r i v a t e e n t e r p r i s e s t o b e o p e r a t e d b y t h e G o v e r n m e n t ( l i k e t r a n s p o r t a t i o n , communication, etc.) P u b l i c b e n e f i t , p u b l i c a d v a n t a g e , a n d p u b l i c utility universal test of the exercise of the right of eminent domain ARTICLE 436. When any property is condemned o r s e i z e d b y c o m p e t e n t a u t h o r i t y i n t h e i n t e r e s t o f health, safety or security, the owner thereof shall not be entitled to compensation, unless he can show that such condemnation or seizure is unjustified. (n) Police power is universally conceded to include everything essential to the public safety, health, a n d m o r a l s t o j u s t i f y t h e d es t r u ct i on o r abatement by summary proceedings, of w h a t e v e r m a y b e r e g a r d e d a s a p u b l i c nuisance.Unlike in eminent domain, private property maybe taken or destroyed without compensation by virtue of the police power. Requisites: public purpose reasonable means ARTICLE 437. The owner of a parcel of land is the owner of its surface and of everything under it, and hec a n c o n s t r u c t t h e r e o n a n y w o r k s o r m a k e a n y p l a n t a t i o n s a n d e x c a v a t i o n s w h i c h h e m a y d e e

m proper, without detriment to servitudes and subject to special laws and ordinances. He cannot complain of t h e r e a s o n a b l e r e q u i r e m e n t s o f a e r i a l n a v i g a t i o n . (350a) The right of the landowner extends to the space and subsoil as far as necessary for his practical interests or to the point where it is possible to a s s e r t h i s d o m i n i o n ; b e y o n d t h e s e l i m i t s , h e would have no legal interest. Limitations: servitudes or easements special laws like the Mining law ordinances the reasonable requirements of aerial navigation principles of human relations (justice, honesty, good faith) and prevention of the rights of 3rd Persons A R T I C L E 4 3 8 . H i d d e n t r e a s u r e b e l o n g s t o t h e owner of the land, building, or other property on which it is found.N e v e r t h e l e s s , w h e n t h e d i s c o v e r y i s m a d e o n t h e p r o p e r t y o f a n o t h e r , o r o f t h e S t a t e o r a n y o f i t s subdivisions, and by chance, one-half thereof shall be allowed to the finder. If the finder is a trespasser, he shall not be entitled to any share of the treasure. If the things found be of interest to science or the arts, the State may acquire them at their just price, which s h a l l b e d i v i d e d i n c o n f o r m i t y w i t h t h e r u l e s t a t e d . (351a) By chance t h e r e m u s t b e n o p u r p o s e o r i n t e n t t o l o o k f o r t h e t r e a s u r e ( S p a n i s h commentators) g o o d l u c k , i m p l y i n g t h a t o n e w h o i n t e n t i o n a l l y l o o k s f o r t h e t r e a s u r e i s e m b r a c e d i n t h e p r o v i s i o n ( D e a n Capistrano & Dean Francisco) ARTICLE 439. By treasure is understood, for legal purposes, any hidden and unknown deposit of money, j e w e l r y , o r o t h e r p r e c i o u s o b j e c t s , t h e l a w f u l ownership of which does not appear. (352) Hidden treasure: they consist of money, jewels, or other precious objects refers only to movables they are hidden and unknown, such thattheir finding is a real discovery.A n y o n e w h o h a s a b s o l u t e l y n o r i g h t o v e r t h e immovable or the thing in which the treasure is found is deemed a stranger. Concealment of discovered hidden treasure: finder do not lose his share becomes civilly and criminally liable for taking something not belonging to him, which is the share of the landowner responsible for all the consequences of possession in bad faith with respect to the loss or deterioration of the thing. The finding must be by chance in order that a stranger may be entitled to of the treasure. Conflict of opinion: finder was given permission by owner to look make an investigation in his property Dean Capistrano :The finding is certainly not by chance. Manresa : The finder, even if he did not discover t h e t r e a s u r e b y c h a n c e , i s e n t i t l e d t o s o m e remuneration.S o m e a u t h o r s s a y t h a t h e i s e n t i t l e d t o t h e whole treasure because the permission by the o w n e r a m o u n t s t o a r e n u n c i a t i o n o f r i g h t s ; others say only because the finder would not have been entitled to anything if the owner had not given him the permission. Tolentino : Last view seems to b e reason ab le. Th e fin din g is n ot b y ch an ce, bu t th e find er shou ld b e entitled to a s h a r e o n t h e b a s i s o f i m p l i e d c o n t r a c t o r o n t h e p r i n c i p l e a g a i n s t unjust enrichment. CHAPTER 2RIGHT OF ACCESSION ARTICLE 440. The ownership of property gives the right by accession to everything which is produced thereby, or which is incorporated or attached thereto, either naturally or artificially. (353) Accession right by virtue of which the owner of thing becomes the owner of everything t h a t i t m a y p r o d u c e o r w h i c h m a y b e i n s e p a r a b l y u n i t e d o r i n c o r p o r a t e d thereto, either naturally or artificially Kinds: dicreta e x t e n s i o n o f t h e r i g h t o f ownership to the products of thething n a t u r a l f r u i t s , i n d u s t r i a l f r u i t s , and civil fruits based on principles of justice continua acquisition of ownership over athing incorporated to that whichbelongs to the owner based on necessity and utility movables conjunction or adjunction inlcusion soldering ferruminatio plumbatura weaving writing specification commixtion immovables alluvion

force of river change of river bed formation of islands building planting sowing principles: t h a t t h e o w n e r o f a t h i n g b e l o n g s t h e extension or increase of such thing t h a t t h i s e x t e n s i o n o f t h e r i g h t o f ownership is realized, as a general rule u n d e r t h e j u r i d i c a l p r i n c i p l e t h a t t h e accessory follows the principal that the incorporation of the accessory with the principal, saving the exceptions p r o v i d e d b y l a w , i s e f f e c t e d o n l y w h e n t w o t h i n g s a r e s o u n i t e d t h a t t h e y cannot be separated without injuring or destroying the juridical nature of one of them the right in reto the principal is also the right inre to the accessory r i g h t o f a c c e s s i o n i s a u t o m a t i c ( i p s o j u r e ) requiring no prior act on the part of the owner of the principal.

Right of Accession with Respect to Immovable Property accession continua ARTICLE 445. Whatever is built, planted or sown o n t h e l a n d o f a n o t h e r a n d t h e i m p r o v e m e n t s o r repairs made thereon, belong to the owner of the land, subject to the provisions of the following articles. (358) B u i l d i n g a g e n e r i c t e r m f o r a l l a r c h i t e c t u r a l w o r k w i t h r o o f , b u i l t f o r t h e p u r p o s e o f b e i n g used as a man's dwelling, or for offices, clubs, etc. e x c e p t i o n t o t h i s i s w i t h r e g a r d t h e c o n j u g a l property (Art. 158 of the Code) ARTICLE 446. All works, sowing, and planting are p r e s u m e d m a d e b y t h e o w n e r a n d a t h i s e x p e n s e , unless the contrary is proved. (359) ARTICLE 447. The owner of the land who makest h e r e o n , p e r s o n a l l y o r t h r o u g h a n o t h e r , p l a n t i n g s , constructions or works with the materials of another, shall pay their value; and, if he acted in bad faith, he shall also be obliged to the reparation of damages. T h e o w n e r o f t h e m a t e r i a l s s h a l l h a v e t h e r i g h t t o remove them only in case he can do so without injury t o t h e w o r k c o n s t r u c t e d , o r w i t h o u t t h e p l a n t i n g s , constructions or works being destroyed. However, if t h e l a n d o w n e r a c t e d i n b a d f a i t h , t h e o w n e r o f t h e materials may remove them in any event, with a right to be indemnified for damages. (360a) R i g h t s a n d o b l i g a t i o n s o f t h e l a n d o w n e r who uses the materials of another: in good faith G e n e r a l r u l e : T h e l a n d o w n e r becomes the owner of the materialsb u t h e m u s t p a y f o r t h e i r v a l u e . E x c e p t i o n : w h e n t h e m a t e r i a l c a n b e r e m o v e d w i t h o u t i n j u r y t o t h e w o r k m a d e o r t o t h e p r i n c i p a l , t h e owner of the materials can remove them. in bad faith h e b e c o m e s t h e o w n e r o f t h e materials but he must pay for their value and damages. Rights and obligations of the owner of the materials. Landowner acted in good faith the owner of the materials is entitled to reimbursement he is entitled to removal, provided no substantial injury is caused landowner acted in bad faith owner of the materials is entitled to t h e a b s o l u t e r i g h t o f r e m o v a l a n d damages, WON substantial injury is caused he is entitled to reimbursement and damages in case he chooses not to remove i f b o t h t h e l a n d o w n e r a n d t h e o w n e r o f t h e materials are in bad faith, they are considered both to have acted in good faith. I f t h e L a n d o w n e r i s i n g o o d f a i t h a n d t h e landowner is in bad faith, the landowner would not only be exempted from reimbursement, but h e w o u l d a l s o b e e n t i t l e d t o c o n s e q u e n t i a l damages. Moreover, the owner of the materials would lose all rights to them. A R T I C L E 4 4 8 . T h e o w n e r o f t h e l a n d o n w h i c h anything has been built, sown or planted in good faith, s h a l l h a v e t h e r i g h t t o a p p r o p r i a t e a s h i s o w n t h e w o r k s , s o w i n g o r p l a n t i n g , a f t e r p a y m e n t o f t h e indemnity provided for in articles 546 and 548, or to oblige the one who built or planted to pay the price of t h e l a n d , a n d t h e o n e w h o s o w e d , t h e p r o p e r r e n t . However, the builder or planter cannot be obliged to buy the land if its value is considerably more than that o f t h e b u i l d i n g o r t r e e s . I n s u c h c a s e , h e s h a l l p a y r e a s o n a b l e r e n t , i f t h e o w n e r o f t h e l a n d d o e s n o t c h o o s e t o a p p r o p r i a t e t h e b u i l d i n g o r t r e e s a f t e r proper indemnity. The parties shall agree upon the terms of the lease and in case of disagreement, the court shall fix the terms thereof. (361a) This provision gives the owner of the land the o p t i o n t o a c q u i r e t h e i m p r o v e m e n t s a f t e r payment of the proper indemnity, or to obligethe builder or planter to pay for the land, or the s o w e r t o p a y t h e r e n t . H e c a n n o t r e f u s e t o exercise either option. R e a s o n : i t i s t h e o w n e r o f t h e l a n d w h o i s authorized to exercise the option, because his right is older, and because by the principle of accession, he is entitled to the ownership of the accessory of the thing. Constructions must be of permanent character b u t i f i t i s t r a n s i t o r y i n c h a r a c t e r , t h e r e i s n o a c c e s s i o n a n d t h e p r o p e r r e m e d y o f t h e landowner is an action to eject the builder from the land. Article is applicable only to possessors (builder, planter, sower) in good faith. Possessor in good faith o n e w h o h a s n o k n o w l e d g e o f a n y f l a w o r d e f e c t i n h i s t i t l e o r mode of acquisition the owner of the land must pay these expenses before acquiring the improvement. The reference to articles 546 & 548, implies that the builder, planter, or sower in good faith has aright to retain, not only the improvements, but a l s o t h e l a n d o n w h i c h t h e y h a v e b e e n built,planted, or sown, the land being considered m e a n w h i l e a s a n i n h e r e n t p a r t o f t

h e improvement.Neither of the parties may bring a reivindicatory action against each other.W h e n t h e o w n e r o f t h e l a n d e l e c t s t o a p p r o p r i a t e t h e i m p r o v e m e n t , h e i s b o u n d t o p a y t h e n e c e s s a r y a n d u s e f u l e x p e n s e s incurred by the builder, planter, or sower. Expenses those made for the preservation of teething t h o s e t h a t a u g m e n t t h e i n c o m e o f t h e thing upon which they were spent d u r i n g t h e r e t e n t i o n o f t h e i m p r o v e m e n t s (builder, sower, planter) he is not exactly ap o s s e s s o r i n g o o d f a i t h , h e i s o b l i g e d t o a c c o u n t f o r s u c h f r u i t s , s o t h a t t h e a m o u n t there o f m a y b e d e d u c t e d f r o m t h e a m o u n t o f indemnity to be paid to him by the owner of the land. In case alienation of the property to a 3 rd party, who shall borne the indemnity to the possessor in good faith? Manresa: possessor may proceed against the3rdp a r t y , w i t h o u t p r e j u d i c e t o t h e a c t i o n w h i c h t h e l a t t e r m a y h a v e against his grantor r e a s o n : a l l o w i n g t h e p o s s e s s o r t o bring his action against the former o w n e r w o u l d b e e q u i v a l e n t t o p e r m i t t i n g a n a c t i o n a g a i n s t o n e w h o c a n n o t p r o f i t a t a l l f r o m t h e accession because he is no longer the owner of the land. Ricci : i t i s p o s s i b l e t h a t t h e n e w o w n e r m a y h a v e p a i d t h e i m p r o v e m e n t s w h e n h e p a i d t h e p r o p e r t y t o t h e vendor i f t h e n e w o w n e r i s s u e d b y t h e possessor, and he has already paid the improvements thereon, he may recover from the original owner what he has paid as the value o f s u c h i m p r o v e m e n t s , i f h e d i d n o t p a y t h e v a l u e , h e a l o n e i s l i a b l e therefor to the possessor Tolentino: o b l i g a t i o n o f t h e l a n d o w n e r t o payi n d e m n i t y i s p e r s o n a l a n d i n t h e a b s e n c e o f a n a g r e e m e n t t o t h e contrary, is not transmitted to t h e v e n d e e i s t h e t h i n g i s s o l d b e f o r e the indemnity has been paid, unless s u c h o b l i g a t i o n a p p e a r s i n t h e Registry of Property. It can be presumed that the vendor h a s a d d e d t h e v a l u e o f t h e improvements in fixing the price of the land o p t i o n o f t h e l a n d o w n e r m a y b e d e n i e d i f i t stands in contrasts with the power of eminent domain of the government. T h e o w n e r o f t h e l a n d c a n n o t c o m p e l t h e builder or planter to pay for the land, if its value is considerably more than that of the building or t r e e s . ( O p t i o n o f O L : a p p r o p r i a t e t h e improvements or to lease the land to the builder or planter at a reasonable rent) this and the following articles are not applicable to cases where there is a contractual relation between the parties. T h i s a r t i c l e w i l l a p p l y w i t h r e s p e c t t o l a n d o f p u b l i c d o m i n i o n o c c u p i e d i n g o o d f a i t h b y 3 rd persons. O w n e r s h i p o v e r t h e a c c e s s o r y p a s s e s o n l y after payment of the indemnity ARTICLE 449. He who builds, plants or sows in bad faith on the land of another, loses what is built, planted or sown without right to indemnity. (362) A R T I C L E 4 5 0 . T h e o w n e r o f t h e l a n d o n w h i c h anything has been built, planted or sown in bad faith may demand the demolition of the work, or that the planting or sowing be removed, in order to replace things in their former condition at the expense of the person who built, planted or sowed; or he may compel the builder or planter to pay the price of the land, and the sower the proper rent. (363a) A l t e r n a t i v e r i g h t s o f t h e o w n e r o f t h e l a n d o n which anything has been built, planted or sown: appropriate what has been built, planted o r s o w n w i t h o u t a n y o b l i g a t i o n t o p a y indemnity t o a s k t h e b u i l d e r , p l a n t e r o r s o w e r t o r e m o v e w h a t h e h a s b u i l t , p l a n t e d o r sown. To compel the builder or planter to pay t h e v a l u e o f t h e l a n d o r t h e s o w e r t h e proper rent. Unless the owner insists in absolute compliance with the terms of Art. 449, the builder, planter, or sower may remove his materials, paying the landowner the damages he may suffer provided the land does not suffer any injury thereby. Art. 449 is an exception to Art. 443 (only if the improvements are not yet severed, gathered, or harvested) ARTICLE 451. In the cases of the two preceding articles, the landowner is entitled to damages from the builder, planter or sower. ARTICLE 452. The builder, planter or sower in bad faith is entitled to reimbursement for the necessary expenses of preservation of the land. (n) If the builder, planter, or sower in bad faith has made necessary expenses for the preservation the land itself, he is entitled to reimbursement for such expenses. He losses the accessory or improvement, but he is not deprived of his right t o c o l l e c t w h a t h e h a s s p e n t t o p r e s e r v e t h e principal.L a n d t a x e s a r e c o n s i d e r e d a s n e c e s s a r y expenses and must be reimbursed, regardless of the bad faith of the builder, planter, or sower. ARTICLE 453. If there was bad faith, not only on the part of the person who built, planted or sowed on the land of another, but also on the part of the owner of such land, the rights of one and the other shall be the same as though both had acted in good faith.It is understood that there is bad faith on the part of the landowner whenever the act was done with his knowledge and without opposition on his part. (364a) Reason: he who knowingly allows himself to be d e c e i v e d m a y n o t c o m p l a i n a s a d e c e i v e d person. The bad faith of one party extinguishes or neutralizes the bad faith of the other. Presumption: with the unlawful trespass upon the land, the building, planting or sowing was c o m m e n c e d w i t h o u t t h e k n o w l e d g e a n d consent of the owner thereof. Bad faith of the builder, planter or sower w h e n h e b u i l d s , p l a n t s , o r s o w s k n o w i n g t h a t the land does not belong to him and he has no right to build, plant or sow thereon. Bad faith of the land owner - w h e n e v e r t h e act was done with his knowledge and without opposition on his part. ARTICLE 454. When the landowner acted in bad faith and the builder, planter or sower proceeded in good faith, the provisions of article 447 shall apply. (n) Art. 447; the owner of the land is considered as having made the building, planting, or sowing t h r o u g h t h e b u i l d e r , p l a n t e r , o r s o w e r , w i t h materials belonging to the latter, and therefore h e s h o u l d p a y t h e v a l u e o f t h e m a t e r i a l s p l u s damages because of his bad faith.

A R T I C L E 4 5 5 . I f t h e m a t e r i a l s , p l a n t s o r s e e d s b e l o n g t o a t h i r d p e r s o n w h o h a s n o t a c t e d i n b a d faith, the owner of the land shall answer subsidiarily for their value and only in the event that the one who made use of them has no property with which to pay. This provision shall not apply if the owner makes use of the right granted by article 450. If the owner of the m a t e r i a l s , p l a n t s o r s e e d s h a s b e e n p a i d b y t h e builder, planter or sower, the latter may demand from the landowner the value of the materials and labor. (365a) Rights of the owner of the materials (OM = owner of the materials)(OL = owner of the land)(BPS = Builder, Planter, Sower)1 . G e n e r a l r u l e : O L i s s u b s i d i a r i l y l i a b l e f o r the value of the materials except when he makes use of his right to compel the builder, planter, or sower i n b a d f a i t h t o r e m o v e t h e improvements.2 . O M a c t e d i n g o o d f a i t h OL acted in good faith, appropriates the improvements bad faith rights of OM against BPS(value of materials + damages) right of OM if BPS is insolvent(value of the property)3 . O M a c t e d i n b a d f a i t h , h e w i l l l o s e h i s materials without the right to indemnity4 . a l l t h r e e a c t e d i n b a d f a i t h , t h e i r r i g h t s will be determined as if all of them acted in good faith A R T I C L E 4 5 6 . I n t h e c a s e s r e g u l a t e d i n t h e preceding articles, good faith does not necessarily e x c l u d e n e g l i g e n c e , w h i c h g i v e s r i g h t t o d a m a g e s under article 2176. (n) A RTICLE 457. To the owners of lands adjoining theb a n k s o f r i v e r s b e l o n g t h e a c c r e t i o n w h i c h t h e y gradually receive from the effects of the current of the waters. (336) Alluvion s o i l d e p o s i t e d o r a d d e d t o t h e l a n d s a d j o i n i n g t h e b a n k s o f r i v e r s , a n d g r a d u a l l y r e c e i v e d a s a n e f f e c t o f t h e current of the rivers. r e a s o n : n o b o d y c a n p r o v e o w n e r s h i p o v e r s u c h g r a d u a l a c c u m u l a t i o n o f sediment; nobody can tell from whose l a n d s t h e y c o m e a n d e x p e d i e n c y dictated that they be given to the owner of the land on which they are deposited for he can best utilize them registration underthe Torrens systemd o e s n o t p r o t e c t s t h e r i p a r i a n o w n e r a g a i n s t t h e l o s s o r d i m i n u t i o n o f t h e a r e a o f h i s l a n d t h r o u g h g r a d u a l c h a n g e s i n t h e c o u r s e o f a n a d j o i n i n g stream. Requisites: t h e d e p o s i t b e g r a d u a l a n d imperceptible it be made through the currents of the river that the land where accretion takes place is adjacent to the banks of the river. D o e s n o t i n c l u d e d e p o s i t s m a d e b y human intervention. The owner of the riparian land does not h a v e t o m a k e a n e x p r e s s a c t o f possession. Banks of a river lateral strips of zones of itsb e d w h i c h a r e w a s h e d b y t h e s t r e a m o n l y d u r i n g s u c h h i g h f l o o d s a s d o n o t c a u s e inundat ions or to the point reached by the river at high tide. A R T I C L E 4 5 8 . T h e o w n e r s o f e s t a t e s a d j o i n i n g ponds or lagoons do not acquire the land left dry by t h e n a t u r a l d e c r e a s e o f t h e w a t e r s , o r l o s e t h a t inundated by them in extraordinary floods. (367) Exception to alluvion.T h e p r o v i s i o n r e f e r s t o p o n d s o r l a g o o n s a n d therefore has no application to lakes.P o n d a b o d y o f s t a g n a n t w a t e r w i t h o u t a n outlet, larger than a puddle and smaller than a lake. Lake body of water formed in depression of the earth, ordinarily of fresh water coming fromrivers,brooks, or springs, and connected withthe sea by them. Lagoon a small lake, ordinarily of fresh water, and not very deep, fed by floods, the hollow bedof which is bound by elevation of land. A R T I C L E 4 5 9 . W h e n e v e r t h e c u r r e n t o f a r i v e r , creek or torrent segregates from an estate on its bank a known portion of land and transfers it to another estate, the owner of the land to which the segregated portion belonged retains the ownership of it, provided that he removes the same within two years. (368a) Avulsion transfer of a known portion of land fromone tenement to another by the force of the current i f t h e o w n e r o f t h e l a n d t r a n s f e r r e d failed to remove the mass of land withint h e 2 y e a r s p r e s c r i p t i v e p e r i o d , t h e o w n e r o f t h e l a n d t o w h i c h i t w a s t r a n s f e r r e d s h a l l h a v e t h e o w n e r s h i p over it. (following the Chile Code) t h e l a w p r e s e r v e s t h e r i g h t o f t h e o r i g i n a l o w n e r t o r e c o v e r a n d r e m o v e his property; but at the same time, the law creates a prescription in favor of the p e r s o n a s s e r t i n g a c c e s s i o n i f t h e formers right is not exercised within 2 years. W h e n t h e k n o w n p o r t i o n t a k e n b y t h e current of the waters from one tenement i s l e f t i n t h e m i d d l e o f t h e s t r e a m , n o t united to any other tenement, the owner p r e s e r v e s h i s r i g h t o f o w n e r s h i p o v e r said portion. Alluvion Avulsion The deposit of the soil is gradual S u d d e n o r a b r u p t process may be seen S o i l c a n n o t b e identified Soils is identifiable or verifiable B e l o n g s t o o w n e r o f property to which it is attached B e l o n g s t o t h e o w n e r from whose property It was detached ARTICLE 460. Trees uprooted and carried away by the current of the waters belong to the owner of theland upon which they may be cast, if the owners do not claim them within six months. If such owners claim t h e m , t h e y s h a l l p a y t h e e x p e n s e s i n c u r r e d i n gathering them or putting them in a safe place. (369a) The owner if the land upon which the tress have been cast, may have transplanted them on hiso w n l a n d i n o r d e r t o p r e s e r v e t h e m . N o t w i t h s t a n d i n g t h i s , t h e i r f o r m e r o w n e r s i l l preserves his ownership within the period of 6 months, and he may get them back, paying the expenses incurred in their preservation.

ARTICLE 461. River beds which are abandoned through the natural change in the course of the waters i p s o f a c t o b e l o n g t o t h e o w n e r s w h o s e l a n d s a r e occupied by the new course in proportion to the area lost. However, the owners of the lands adjoining theold bed shall have the right to acquire the same by paying the value thereof, which value shall not exceed the value of the area occupied by the new bed. (370a) I t i s s u f f i c i e n t t h a t t h e r e b e s o m e r e a s o n a b l e indication on the ground of the abandoned bed, and that there be sufficient evidence showing that the river changed its course not gradually but suddenly and abruptly. O n c e t h e r i v e r b e d h a s b e e n a b a n d o n e d , t h e owners of the invaded land become owners of t h e a b a n d o n e d b e d t o t h e e x t e n t p r o v i d e d b y t h e a r t i c l e . T h e a c q u i s i t i o n o f o w n e r s h i p i s automatic. T h e a r t i c l e r e f e r s t o a n a t u r a l c h a n g e i n t h e course of a stream. T h i s a r t i c l e d o e s n o t a p p l y i n c a s e s w h e r e t h e river simply dries up. If the river dries up, the land wills belong to the government r i v e r b a n k s a r e p a r t o f p u b l i c dominion n o p r i v a t e p r o p e r t y o r l a n d i s injured. A R T I C L E 4 6 2 . W h e n e v e r a r i v e r , c h a n g i n g i t s course by natural causes, opens a new bed through a p r i v a t e e s t a t e , t h i s b e d s h a l l b e c o m e o f p u b l i c dominion. (372a) River bed g r o u n d c o v e r e d b y i t s w a t e r s during ordinary floods. A R T I C L E 4 6 3 . W h e n e v e r t h e c u r r e n t o f a r i v e r divides itself into branches, leaving a piece of land or part thereof isolated, the owner of the land retains hiso w n e r s h i p . H e a l s o r e t a i n s i t i f a p o r t i o n o f l a n d i s separated from the estate by the current. (374) T h i s a r t i c l e r e f e r s t o a l l r i v e r s , w h e t h e r navigable or not. ARTICLE 464. Islands which may be formed on the seas within the jurisdiction of the Philippines, on lakes, a n d o n n a v i g a b l e o r f l o a t a b l e r i v e r s b e l o n g t o t h e State. (371a) T h e s e i s l a n d s f o r m p a r t o f t h e p a t r i m o n i a l property of the State, which may sell them. Navigable river one which in its natural state affords a channel for useful commerce and notsuch as is only sufficient to float a banca or a canoe.The State has the duty to declare which rivers are navigable and which are not. ARTICLE 465. Islands which through successive accumulation of alluvial deposits are formed in non n a v i g a b l e a n d n o n - f l o a t a b l e r i v e r s , b e l o n g t o t h e owners of the margins or banks nearest to each of them, or to the owners of both margins if the island isi n t h e m i d d l e o f t h e r i v e r , i n w h i c h c a s e i t s h a l l b e divided longitudinally in halves. If a single island thusformed be more distant from one margin than from theother, the owner of the nearer margin shall be the sole owner thereof. (373a) Article 465 refers only to islands formed in non-n a v i g a b l e w a t e r s b e c a u s e i s l a n d s f o r m e d i n navigable waters belong to the Stater e a s o n : a p r e f e r e n t i a l r i g h t i s g i v e n t o t h o s e who are nearest to the island because they arein the best position to cultivate and attend to the exploitation of such island.Article does not include: t h o s e f o r m e d b y t h e b r a n c h i n g o f t h e river those which are known portions of landf r o m a t e n e m e n t a n d d e p o s i t e d i n t h e middle of the stream Section 3 Right of Accession with Respect to MovableProperty accessions in movables conjunction 2 different things are sounited that they from a single object, bute a c h c o m p o n e n t p a r t p r e s e r v e s i t s nature specification i t i s a w o r k o f a t h i r d person that is united with the property of another Commixtion implies a greater inter-penetration and even decomposition of the things mixed A R T I C L E 4 6 6 . W h e n e v e r t w o m o v a b l e t h i n g s belonging to different owners are, without bad faith, united in such a way that they form a single object, theowner of the principal thing acquires the accessory,indemnifying the former owner thereof for its value.(375) Adjunction or conjunction happen only when the two things unitedc a n n o t b e s e p a r a t e d w i t h o u t i n j u r y t o them. Requisites: 2 things belong to different owners t h e y f o r m a s i n g l e o b j e c t , o r t h a t t h e i r s e p a r a t i o n w i l l i m p a i r t h e i r nature kinds: inclusion soldering escritura pintura weaving ARTICLE 467. The principal thing, as between two things incorporated, is deemed to be that to which the other has been united as an ornament, or for its use or perfection. (376) Criteria to determine principal: importance or purpose of the thing value of the things volume ARTICLE 468. If it cannot be determined by the rule given in the preceding article which of the two things incorporated is the principal one, the thing of

C o - O w n e r s h i p / tenancy in common J o i n t o w n e r s h i p / joint tenancy I n v o l v e s a p h y s i c a l w h o l e w i t h a n i d e a l d i v i s i o n , e a c h c o - owner being the owner of his own ideal share I n v o l v e s a p h y s i c a l whole with no ideal or abstract division T h e h e i r s o f t h e d e c e a s e d c o - o w n e r inherit his share in the p r o p e r t y o w n e d i n common Joint owner's rights of o w n e r s h i p a r e extinguished upon his death Co-owner can dispose of his undivided sharefreelyA j o i n t o w n e r c a n n o t s e l l h i s u n d i v i d e d s h a r e w i t h o u t t h e c o n s e n t o f t h e o t h e r joint owners P a r t n e r s h i p C o - o w n e r s h i p C r e a t e d o n l y b y agreement or contract to that effectM a y a r i s e f r o m o t h e r causesP u r p o s e : t o o b t a i n profitPurpose:collectivee n j o y m e n t a n d t o maint ain the unity andp r e s e r v a t i o n o f t h e t h i n g o w n e d i n commonT h e r e i s a j u r i d i c a l entity distinct from the members No such juridical entity exists M a y b e c r e a t e d f o r a period of 10 years S t i p u l a t i o n t o c r e a t e c o o w n e r s h i p f o r a period is void T h e r e i s m u t u a l representation by the partner SPA would be needed f o r s u c h representation P a r t n e r c a n n o t t r a n s f e r h i s r i g h t s t o 3rd person without the c o n s e n t o f t h e o t h e r partners T h e r e i s f r e e d o m o f disposition of share C a n b e e x t i n g u i s h e d b y t h e d e a t h o r i n c a p a c i t y o f t h e partners Death or incapacity of the coowner have no effect on the existence of the co ownership D i s t r i b u t i o n o f p r o f i t s i s s u b j e c t t o stipulationsD i s t r i b u t i o n o f p r o f i t s i s i n v a r i a b l e b y v i r t u e of Art. 485 ARTICLE 485. The share of the co-owners, in the benefits as well as in the charges, shall be proportional to their respective interests. Any stipulation in a contract to the contrary shall be void. The portions belonging to the co-owners in the co-ownership shall be presumed equal, unless the contrary is proved. (393a) This article grants each co-owner the right to use the property for the purpose intended. T h e a c c r e t i o n a d d e d t o a n y p o r t i o n o f l a n d owned in common becomes part of the property in co-ownership. ARTICLE 486. Each co-owner may use the thing o w n e d i n c o m m o n , p r o v i d e d h e d o e s s o i n accordance with the purpose for which it is intended and in such a way as not to injure the interest of the c o o w n e r s h i p o r p r e v e n t t h e o t h e r c o - o w n e r s f r o m using it according to their rights. The purpose of the co-ownership may be changed by agreement, express or implied. (394a) Limitations of a co-owner's rights: use of the things owned in common to the purpose for which it was intended t o k n o w t h e p u r p o s e , t h e a g r e e m e n t , e x p r e s s o r i m p l i e d , o f the parties should govern i n d e f a u l t o f t h e a g r e e m e n t , u s e w h i c h i t i s o r d i n a r i l y a d a p t e d a c c o r d i n g t o i t s n a t u r e , o r t h e u s e w h i c h i t h a s b e e n p r e v i o u s l y devoted m e r e t o l e r a n c e o n t h e p a r t o f t h e c o - o w n e r s c a n n o t l e g a l i z e t h e c h a n g e i n t h e u s e o f a t h i n g f r o m that intended by the parties without prejudice to the interests of the co-ownership a c o - o w n e r c a n n o t d e v o t e community property to his exclusive u s e t o t h e p r e j u d i c e o f t h e c o - ownership without preventing the other co-owners from making use of the same according to their own rights the co-owners may establish rules r e g a r d i n g t h e i r u s e o f t h e t h i n g owned in common i n d e f a u l t o f a n a g r e e m e n t , t h e r e s h o u l d b e a j u s t a n d e q u i t a b l e d i s t r i b u t i o n o f u s e s a m o n g a l l t h e co-owners Remedy of co-owners: t h e r e m e d i e s a v a i l a b l e t o o w n e r s i n general ARTICLE 487. Any one of the co-owners may bring an action in ejectment. (n) This article covers all kinds of actions for the r e c o v e r y o f p o s s e s s i o n ( accion interdictal,a c c i o n p u b l i c i a n a , a c c i o n r e i v i n d i c a t o r i a , quieting of title. replevin)a co-owner may bring an action to exercise and protect the rights of all. T h e a c t i o n r e f e r r e d t o i n t h i s a r t i c l e m a y b e brought, not only against 3 rd persons, but even a g a i n s t c o - o w n e r w h o t a k e s e x c l u s i v e possession and asserts ownership in himself alone. ARTICLE 488. Each co-owner shall have a right toc o m p e l t h e o t h e r c o - o w n e r s t o c o n t r i b u t e t o t h e expenses of preservation of the thing or right owned in common and to the taxes. Any one of the latter may exempt himself from this obligation by renouncing so much of his undivided interest as may be equivalent to his share of the expenses and taxes. No such waiver shall be made if it is prejudicial to the co-ownership.(395a) The article refers to necessary expenses for the preservation of the thing and does not include useful expenses. Necessary expenses all those, which, if not m a d e , w o u l d e n d a n g e r t h e e x i s t e n c e o f t h e thing or reduce its value or productivity. Remedy against defaulting co-owner : compel him to contribute such share. Renunciation T h e r e n u n c i a t i o n r e f e r r e d t o i n t h i s article must be expressly made. W a y w h e r e c o - o w n e r m a y e x e m p t himself from this duty to reimburse c o v e r s o n l y n e c e s s a r y e x p e n s e s l i k e t h o s e f o r t h e p r e s e r v a t i o n o f t h e p r o p e r t y a n d n o t f o r u s e f u l improvements, even if the value of the p r o p e r t y i s t h e r e b y i n c r e a s e d , t h e purpose of co-ownership is not for profit

A R T I C L E 4 8 9 . R e p a i r s f o r p r e s e r v a t i o n m a y b e made at the will of one of the co-owners, but he must ,i f p r a c t i c a b l e , f i r s t n o t i f y h i s c o - o w n e r s o f t h e necessity for such repairs. Expenses to improve or e m b e l l i s h t h e t h i n g s h a l l b e d e c i d e d u p o n b y a majority as determined in article 492. (n) This article authorizes any co-owner to advance the expenses for preservation. He may advance the necessary expenses and recover from the others their respective shares. As to expenses for preservation, the will of one o f t h e c o o w n e r s i s s u f f i c i e n t a u t h o r i t y f o r making or incurring them. If, however, due to the opposition of some coowners, the repairsa r e n o t u n d e r t a k e n a n d t h e p r o p e r t y d e t e r i o r a t e s o r i s r u i n e d , t h e n t h o s e w h o opposed such repairs shall pay the losses and damages suffered by the community. The present article requires that, if practicable, notice in the necessity of the repairs be given to t h e o t h e r c o o w n e r s b u t d o e s n o t s t a t e t h e effect of the failure to give such notice. The only effect of the failure to give the required n o t i c e , i s t o p l a c e u p o n t h e c o - o w n e r w h o makes the advances the burden of proving the necessity of the repairs and the reasonableness of the expenses. Number of co-owners who must consent repairs, ejectment, action ONE alterations or acts of ownership ALL a l l o t h e r , l i k e u s e f u l i m p r o v e m e n t s , l u x u r i o u s e m b e l l i s h m e n t s , administr ation, and better enjoyment FINANCIAL MAJORITY ARTICLE 490. Whenever the different stories of ah o u s e b e l o n g t o d i f f e r e n t o w n e r s , i f t h e t i t l e s o f ownership do not specify the terms under which they s h o u l d c o n t r i b u t e t o t h e n e c e s s a r y e x p e n s e s a n d t h e r e e x i s t s n o a g r e e m e n t o n t h e s u b j e c t , t h e following rules shall be observed:(1) The main and party walls, the roof and the other things used in common, shall be preserved at t h e e x p e n s e o f a l l t h e o w n e r s i n p r o p o r t i o n t o t h e value of the story belonging to each;( 2 ) E a c h o w n e r s h a l l b e a r t h e c o s t o f m a i n t a i n i n g t h e f l o o r o f h i s s t o r y ; t h e f l o o r o f t h e entrance, front door, common yard and sanitary works common to all, shall be maintained at the expense of all the owners pro rata;(3) The stairs from the entrance to the first story shall be maintained at the expense of all the owners pro rata, with the exception of the owner of the ground floor; the stairs from the first to the second story shall be preserved at the expense of all, except the owner of the ground floor and the owner of the first story; and so on successively. (396) Condominiums an interest in real property consisting of s e p a r a t e i n t e r e s t i n a u n i t i n a r e s i d e n t i a l , i n d u s t r i a l o r c o m m e r c i a l b u i l d i n g a n d a n u n d i v i d e d i n t e r e s t i n c o m m o n , d i r e c t l y o r i n d i r e c t l y , i n t h e land on which it is located and in other c o m m o n a r e a s o f t h e b u i l d i n g . ( R A 4726, Condominium Act) each unit belongs separately to one or m o r e p e r s o n s , d o n o t c o n s t i t u t e a c o o w n e r s h i p a s p r o v i d e d f o r a n d governed by the Civil Code. P a r t l y c o - o w n e r s h i p a n d p a r t l y u n d e r individual separate ownership. T h e o w n e r s o f the various units ownu n d i v i d e d s p i r i t u a l i n t e r e s t s i n s u c h common areas in proportion to theses e p a r a t e i n t e r e s t i n t h e i r r e s p e c t i v e units a l i e n s m a y o w n a c o n d o m i n i u m o n l y t h r o u g h a c o n d o m i n i u m c o r p o r a t i o n where they become stockho lders only ,s u b j e c t t o t h e 6 0 / 4 0 l i m i t i n t h e Constitution S e c . 8 & 1 3 o f C o n d o m i n i u m A c t , grounds for partition and dissolution of Condominium Corporation A R T I C L E 4 9 1 . N o n e o f t h e c o - o w n e r s s h a l l , without the consent of the others, make alterations in the thing owned in common, even though benefits for all would result there from. However, if the withholding o f t h e c o n s e n t b y o n e o r m o r e o f t h e c o - o w n e r s i s clearly prejudicial to the common interest, the courts may afford adequate relief. (397a) Alteration a change which is more or less permanent which changes the use of the thing w h i c h p r e j u d i c e s t h e c o n d i t i o n o f the thing or its enjoyment by others a c t b y v i r t u e o f w h i c h a c o - o w n e r , i n opposition to the common agreement,c h a n g e s t h e t h i n g f r o m t h e s t a t e i n w h i c h t h e o t h e r b e l i e v e i t s h o u l d remain, or withdraws it from the use t owhich they desire it to be intended r e f e r s t o c h a n g e t h a t m o d i f i e s a n d l i m i t s , a n d a b o v e a l l , p r e j u d i c e s t h e condition of the things or its enjoyment by the others. A r t . 4 9 1 r e f e r t o a l t e r a t i o n s o r t r a n s f o r m a t i o n s w h i c h c h a n g e t h e e s s e n c e a n d n a t u r e o f t h e t h i n g ; t h e y requires the unanimous consent of all the co-owners. Examples of alterations: s a l e , d o n a t i o n , m o r t g a g e , e t c . o f t h e whole property sale, donation, mortgage, etc of a par t o f t h e p r o p e r t y b u t w i t h d e f i n i t e boundaries voluntary easement lease of real property if the lease is recorded lease is for more than 1 year a n y o t h e r a c t o f s t r i c t d o m i n i o n o r ownership illegal alteration: alteration made without the express or implied consent of the other co-owners effects: c o - o w n e r r e s p o n s i b l e m a y l o s e what he has spent demolition can be compelled

h e w o u l d b e l i a b l e f o r l o s s e s a n d damages B U T w h a t e v e r b e n e f i t s t h e c o - ownership derives will belong to it

Assignee transferee of part of the interest of the co-owner under this article, the assignee referred to is that one to whom there has been no delivery of the interests assigned to him, and therefore has only a personal right against the assignor. The right of the creditors and assignees of co -owners to take part in the division of the thing o w n e d i n c o m m o n p r e s u p p o s e s t h e d u t y o f those asking for division to notify such creditors a n d a s s i g n e e s . I f t h e n o t i c e i s n o t g i v e n , t h e division is not binding on them. ARTICLE 498. Whenever the thing is essentially indivisible and the co-owners cannot agree that it be allotted to one of them who shall indemnify the others, it shall be sold and its proceeds distributed. (404) A l t h o u g h A r t . 4 9 5 , a t h i n g w h i c h c a n n o t b e divided because it will become unserviceable cannot be partitioned, this article shows juridical dissolution of the co-ownership over such thing i s p o s s i b l e , b y a d j u d i c a t i o n t o o n e o f t h e c o - owners or by the sale of the thing. ARTICLE 499. The partition of a thing owned in common shall not prejudice third persons, who shall retain the rights of mortgage, servitude or any other real rights belonging to them before the division was m a d e . P e r s o n a l r i g h t s p e r t a i n i n g t o t h i r d p e r s o n s against the co-ownership shall also remain in force, notwithstanding the partition. (405) All those who did not intervene in the partition are 3rd persons with respect to such partition. ARTIC LE 5 0 0. Up on p artition , th ere sh all b e a m u t u a l a c c o u n t i n g f o r b e n e f i t s r e c e i v e d a n d reimbursements for expenses made. Likewise, each coowner shall pay for damages caused by reason of his negligence or fraud. (n) ARTICLE 501. Every co-owner shall, after partition, be liable for defects of title and quality of the portion assigned to each of the other co-owners. (n) R e c i p r o c a l w a r r a n t y e x i s t w i t h r e s p e c t t o t h e title and defects of the property TITLE VPOSSESSIONCHAPTER 1POSSESSION AND THE KINDS THEREOF ARTICLE 523. Possession is the holding of a thing or the enjoyment of a right. (430a) Possession h o l d i n g o f a t h i n g o r r i g h t , w h e t h e r b y material occupation or by the fact thatthe thing or the right is subjected to the action of our will. always include the idea of occupation d e t e n t i o n o r e n j o y m e n t o f a t h i n g o r right which a man holds or exercises by h i m s e l f o r b y a n o t h e r w h o k e e p s o r exercises it in his name. Elements occupancy, apprehension or taking n t e n t i t o p o s s e s s ( a n i m u s possidendi) degrees of possession e r e m h o l d i n g w i t h o u t t i t l e w h a t s o e v e r , a n d i n v i o l a t i o n o f t h e right of the owner o s s e s s i o n w i t h j u r i d i c a l t i t l e , b u t not that or ownership p possession with a just title, or a title sufficient to transfer ownership, but not from the true owner possession with a just title from the true owner. Classes of possession o n c e p t o f o w n e r o r c o n c e p t o f holder c o s s e s s i o n p b y o n e s e l f o r possession in the name of another o s s e s s i o n i n g o o d f a i t h a n d possession in bad faith. p The distinction between natural and civil possession has been abolished A R T I C L E 5 2 4 . P o s s e s s i o n m a y b e e x e r c i s e d i n one's own name or in that of another. (413a) Possession in another's name may either be necessary or voluntary this person merely acts in the name of another, and is a mere instrumentality inthe exercise of the latter's possession. One who is exercising the possession of another is not really in possession ARTICLE 525. The possession of things or rights m a y b e h a d i n o n e o f t w o c o n c e p t s : e i t h e r i n t h e concept of owner, or in that of the holder of the thing or right to keep or enjoy it, the ownership pertaining to another person. (432) Possession of holder a c k n o w l e d g e s i n a n o t h e r a s u p e r i o r right which he believes to be ownership, whether his belief be right or wrong. D o e s n o t a s s e r t o w n e r s h i p i n h i m s e l f over the thing i t i s t h u s p o s s i b l e t h a t a p e r s o n m a y e x e r c i s e o w n e r s h i p i n c o n c e p t o f h o l d e r , a n d a n o t h e r p o s s e s s i o n a s owner. e . g . t e n a n t , u s u f r u c t u a r i e s , d e p o s i t o r y , bailee in commodatum Possession in concept of owner m a y b e t h e o w n e r h i m s e l f o r o n e w h o claims to be so. Concept opinion of others or belief of others. Effects of possession in concept of owner: ripen to ownership by the lapse of time necessary for prescription p o s s e s s o r c a n b r i n g a l l a c t i o n necessary to protect his possession ask for inscription of his property in the registry of property c a n d e m a n d f r u i t s a n d d a m a g e s f r o m one who unlawfully deprived him of it. C a n d o o n t h e t h i n g p o s s e s s e d e v e r y t h i n g t h a t t h e l a w a u t h o r i z e s a n owner to do.

ARTICLE 526. He is deemed a possessor in good faith who is not aware that there exists in his title or mode of acquisition any flaw which invalidates it .H e i s d e e m e d a p o s s e s s o r i n b a d f a i t h w h o possesses in any case contrary to the foregoing. Mistake upon a doubtful or difficult question of law may be the basis of good faith. (433a) Possessor in good faith u n a w a r e t h a t t h e r e e x i s t a f l a w w h i c h invalidates his acquisition of the thing. Consists in honest intention to abstain from taking any unconscious advantage of another, the opposite of fraud a state of mind that can only be proven by outward acts and proven conduct. Implies a freedom from knowledge and c i r c u m s t a n c e w h i c h o u g h t t o p u t a person in inquiry. T h e b e l i e f o f t h e p o s s e s s o r t h a t h e ist h e l e g a l o w n e r o f t h e t h i n g m u s t b e b a s e d u p o n s o m e t i t l e o r m o d e o f a c q u i s i t i o n s u c h a s s a l e , d o n a t i o n , inheritance, etc, for without this, there can be no real well -grounded belief of one's ownership. Good faith is always presumed and he who alleges bad faith on the part of the possessor has the burden of proving his allegation. E r r o r i n t h e a p p l i c a t i o n o f l a w m a y properly serve as a basis of good faith. Possession in bad faith one in possession of property knowing that his title thereto is defective only the personal knowledge of the flaw in one title or mode of acquisition can make him a possessor in bad faith, for bad faith is not transmissible from on eperson to another, not even an heir. Can a possessor in bad faith have possession in a concept of an owner? AFFIRMATIVE. As l o n g a s t h e p o s s e s s o r p r e s e n t s h i m s e l f a s owner; bad faith is a matter of opinion of others, not the possessor himself .Mistake upon a doubtful or difficult question of law provided that such ignorance is not gross and therefore inexcusable may be the basis of good faith. (Kasilag vs Rodriguez) ARTICLE 527. Good faith is always presumed, and u p o n h i m w h o a l l e g e s b a d f a i t h o n t h e p a r t o f a possessor rests the burden of proof. (434) The presumption is only juris tantum . This presumption is only just because p o s s e s s i o n i s t h e o u t w a r d s i g n o f ownership. U n l e s s s u c h p r o o f o f b a d f a i t h i s presented, the possessor will be held ingood faith. So long as the possessor is not actually aware of any defect invalidating his title or mode of acquisition, or any of the facto r c i r c u m s t a n c e w h i c h w o u l d p u t a prudent man upon his guard, or requireh i m t o d i s c o v e r t h e f l a w i n h i s t r a n s f e r o r ' s t i t l e , s o l o n g w i l l h e b e deemed possessor in good faith. ARTICLE 528. Possession acquired in good faith does not lose this character except in the case and f r o m t h e m o m e n t f a c t s e x i s t w h i c h s h o w t h a t t h e possessor is not unaware that he possesses the thing improperly or wrongfully. (435a) P o s s e s s i o n i n g o o d f a i t h c e a s e f r o m t h e moment defects in the title are made known to the possessor, by extraneous evidence or by a s u i t f o r r e c o v e r y o f t h e p r o p e r t y b y t h e t r u e owner. I f t h e r e a r e n o o t h e r f a c t s f r o m w h i c h t h e interruption of good faith may be determined, a n d a n action is filed to recover possession, g o o d f a i t h c e a s e s f r o m t h e d a t e o f t h e summons t o a p p e a r a t t h e t r i a l . I f t h e d a t e o f t h e s u m m o n d o e s n o t a p p e a r , t h a t o f t h e answer will be adopted .Exception: accion reivindicatoria A R T I C L E 5 2 9 . I t i s p r e s u m e d t h a t p o s s e s s i o n c o n t i n u e s t o b e e n j o y e d i n t h e s a m e c h a r a c t e r i n which it was acquired, until the contrary is proved. (436) ARTICLE 530. Only things and rights which are susceptible of being appropriated may be the object of possession. (437) CHAPTER 2Acquisition of Possession A R T I C L E 5 3 1 . P o s s e s s i o n i s a c q u i r e d b y t h e m a t e r i a l o c c u p a t i o n o f a t h i n g o r t h e e x e r c i s e o f a right, or by the fact that it is subject to the action of our w i l l , o r b y t h e p r o p e r a c t s a n d l e g a l f o r m a l i t i e s established for acquiring such right. (438a) How is possession acquired? Material occupation m e a n s o f a c q u i r i n g p o s s e s s i o n o f the thing, but not of right. possession by a fact constructive delivery m a y b e c o n s i d e r e d e q u i v a l e n t to material occupation in those cases where such occupation is e s s e n t i a l t o t h e a c q u i s i t i o n o f possession. subjection to our will r e f e r s m o r e t o r i g h t o f p o s s e s s i o n than the possession as a fact. Must be according to law constructive possession or proper legal acts or formalities j u r i d i c a l a c t s o r a c q u i s i t i o n o f possession by sufficient title, inter vivos or mortis causa , o n e r o u s o r lucrative. Acts which the law gives the force of acts of possession Elements of acquisition of possession: corpus material holding of the thing animus intent to possess he thing t h e r e i s n o p o s s e s s i o n i f t h e h o l d e r d o e s n o t w a n t o r i n t e n t t o e x e r c i s e t h e r i g h t o f t h e possessor.

ARTICLE 532. Possession may be acquired by thes a m e p e r s o n w h o i s t o e n j o y i t , b y h i s l e g a l represen tative, by his agent, or by any person without a n y p o w e r w h a t e v e r : b u t i n t h e l a s t c a s e , t h e possession shall not be considered as acquired until the person in whose name the act of possession was executed has ratified the same, without prejudice to the juridical consequ ences of negotiorum gestio in a proper case. (439a) Elements of personal acquisition capacity to acquire possession intent to possess possibility to acquire possession (object must be capable of being possessed) t h r o u g h t h e f a u l t o r n e g l i g e n c e o f t h e p e r s o n w h o substitutes him. (498) ARTICLE 591. If the usufruct be constituted on a flock or herd of livestock, the usufructuaries shall be obliged to replace with the young thereof the animals that die each year from natural causes, or are lost due to the rapacity of beasts of prey. I f t h e a n i m a l s o n w h i c h t h e u s u f r u c t i s c o n s t i t u t e d should all perish, without the fault of the usufructuaries, on account of some contagious disease or any other u n c o m m o n e v e n t , t h e u s u f r u c t u a r y s h a l l f u l f i l l h i s o b l i g a t i o n b y d e l i v e r i n g t o t h e o w n e r t h e r e m a i n s w hich may have been saved from the misfortune.S h o u l d t h e h e r d o r f l o c k p e r i s h i n p a r t , a l s o b y accident and without the fault of the usufructuary, the usufruct shall continue on the part saved. Should the usufruct be on st erile animals, it shall be c o n s i d e r e d , w i t h r e s p e c t t o i t s e f f e c t s , a s t h o u g h constituted on fungible things. (499a) ARTICLE 592. The usufructuary is obliged to make t h e o r d i n a r y r e p a i r s n e e d e d b y t h e t h i n g g i v e n i n usufruct.B y o r d i n a r y r e p a i r s a r e u n d e r s t o o d s u c h a s a r e required by the wear and tear due to the natural use of the thing and are indispensable for its preservation.S h o u l d t h e u s u f r u c t u a r y f a i l t o m a k e t h e m a f t e r demand by the owner, the latter may make them at the expense of the usufructuary. (500) A c t i o n f o r d a m a g e s s u f f e r e d b y t h e p r o p e r t y may be brought by the naked owner even while the usufruct is in effect. Requisites for Ordinary Repairs: that the deteriorations or defects arise from the natural use of the thing t h e d e f e c t s a r e n e c e s s a r y f o r t h e preservation of the thing. The usufructuary is bound to pay only for the r e p a i r s m a d e d u r i n g t h e e x i s t e n c e o f t h e usufruct When the ordinary repairs are due to defectsc a u s e d b y t h e f a u l t o f t h e u s u f r u c t u a r y h e c a n n o t e x e m p t h i m s e l f f r o m l i a b i l i t y b y renouncing the usufruct. If the defects existing before the renunciation are occasioned by the ordinary use of the thing, t h e u s u f r u c t u a r y m a y e x e m p t h i m f o r m making the repairs by returning to the owner, t h e f r u i t s r e c e i v e d d u r i n g t h e t i m e t h a t t h e defects took place. A l l t h e d e f e c t s a r i s i n g a f t e r t h e r e n u n c i a t i o n must be repaired at the expense of the owner. ARTICLE 593. Extraordinary repairs shall be at th e expense of the owner. The usufructuary is obliged to n o t i f y t h e o w n e r w h e n t h e n e e d f o r s u c h r e p a i r s i s urgent. (501) A R T I C L E 5 9 4 . I f t h e o w n e r s h o u l d m a k e t h e extraordinary repairs, he shall have a right to demand of the usufructuary the legal interest on the amount expended for the time that the usufruct lasts. S h o u l d h e n o t m a k e t h e m w h e n t h e y a r e indispensable for the preservation of the thing, the usufructuary may make them; but he shall have a right t o d e m a n d o f t h e o w n e r , a t t h e t e r m i n a t i o n o f t h e usufruct, the increase in value which th e immovable may have acquired by reason of the repairs. (502a) Extraordinary repairs: e x p e n s e s a r e b o r n e b y t h e o w n e r b u t the usufructuary cannot compel him to make such repairs o p t i o n a l f o r t h e u s u f r u c t u a r y t o m a k e such repairs or not t h e u s u f r u c t u a r y i s r e q u i r e d t o g i v e n o t i c e t o t h e o w n e r i f t h e n e e d f o r t h e repair is urgent Kinds c a u s e d b y e x c e p t i o n a l c i r c u m s t a n c e s W O N t h e y a r e necessary for t h e p r e s e r v a t i o n o f the thing those caused by the natural use of the thing, but are necessary for its preservation d i f f e r e n c e b e t w e e n t h e v a l u e o f t h e t e n e m e n t w h e n t h e r e p a i r s b e c o m e n e c e s s a r y a n d i t s v a l u e a f t e r s u c h repairs have been completed is thea m o u n t o f i n c r e a s e t h a t t h e o w n e r shoul d p a y i n c a s e t h e u s u f r u c t u a r y paid for the extraordinary repairs. ARTICLE 595. The owner may construct any works and make any improvements of which the immovablei n u s u f r u c t i s s u s c e p t i b l e , o r m a k e n e w p l a n t i n g s thereon if it be rural, provided that such acts do not c a u s e a d i m i n u t i o n i n t h e v a l u e o f t h e u s u f r u c t o r prejudice the right of the usufructuary. (503) A n y a d v a n t a g e o r i n c r e a s e i n t h e u s e o f enjoyment of the thing introduced by the owner will inure to the benefit of the usufructuary.The usufructuary is not bound to pay interest on the investment of the owner. ARTICLE 596. The payment of annual charges and taxes and of those considered as a lien on the fruits, shall be at the expense of the usufructuary for all the time that the usufruct lasts. (504) Such annual charges and taxes are to be paid b y t h e u s u f r u c t u a r y o n l y w h e n t h e y c a n b e considered as a lien upon the fruits. - SanchezRomanC h a r g e s f o r t h e f i r s t a n d l a s t y e a r s o f t h e usufruct are not borne by the usufructuary but must be divided between him and the owner in t h e s a m e m a n n e r a s c i v i l f r u i t s t h a t i s i n proportion to the periods of possession. A R T I C L E 5 9 7 . T h e t a x e s w h i c h , d u r i n g t h e usufruct, may be imposed directly on the capital, shall be at the expense of the owner. If the latter has paid them, the usufructuary shall pay him the proper interest on the sums which may have been paid in that character; and, if the said sums have e been advanced by the usufructuary, he shall recover the amount thereof at the termination of the usufruct.(505) L a n d t a x i s a b u r n e d u p o n t h e c a p i t a l , t h a t i s upon the real value of the property and should be paid by the owner. ARTICLE 598. If the usufruct be constituted on thew h o l e o f a p a t r i m o n y , a n d i f a t t h e t i m e o f i t s constitutio n the owner has debts, the provisions of articles 758 and 759 relating to dona tions shall be applied, both with respect to the maintenance of the usufruct and to the obligation of the usufructuary to pay such debts .The same rule shall be applied in case the owner is o b l i g e d , a t t h e t i m e t h e u s u f r u c t i s c o n s t i t u t e d , t o make periodical payments, even if there should be no

known capital. (506) A R T I C L E 5 9 9 . T h e u s u f r u c t u a r y m a y c l a i m a n y matured credits which form a part of the usufruct if he has given or gives the proper security. If he has been excused from giving security or has not been able to give it, or if that given is not sufficient, he shall need t h e a u t h o r i z a t i o n o f t h e o w n e r , o r o f t h e c o u r t i n default thereof, to collect such credits. The usufructuary who has given security may use the capital he has collected in any manner he may deem proper. The usufructuary who has not given security s h a l l i n v e s t t h e s a i d c a p i t a l a t i n t e r e s t u p o n a g r e e m e n t w i t h t h e o w n e r ; i n d e f a u l t o f s u c h agreement, with judicial authorization; and, in every case, with security sufficient to preserve the integrity of the capital in usufruct. (507) ARTICLE 600. The usufructuary of a mortgaged immovable shall not be obliged to pay the debt for the security of which the mortgage was constituted. Should the immovable be attached or sold judicially for the payment of the debt, the owner shall be liable to the usufructuary for whatever the latter may lose by reason thereof. (509) W h e n t h e u s u f r u c t i s c o n s t i t u t e d o v e r a l l t h e p r o p e r t y o f t h e o w n e r b y a c t inter vivos, a n d s o m e t e n e m e n t s a r e m o r t g a g e d , t h e usufructuary is bound to pay for such mortgage o n l y i n t h e c a s e s m e n t i o n e d i n A r t i c l e 5 9 8 ; namely, when there is an express stipulation to that effect, or when the usufruct was created in fraud of creditors. ARTICLE 601. The usufructuary shall be obliged to notify the owner of any act of a third person, of which he may have knowledge, that may be prejudicial to the rights of ownership, and he shall be liable should h e n o t d o s o , f o r d a m a g e s , a s i f t h e y h a d b e e n caused through his own fault. (511) ARTICLE 602. The expenses, costs and liabilities in suits brought with regard to the usufruct shall be borne by the usufructuary. (512) The expenses of suits in connection with the possession, use and enjoyment of the thingsa r e g e n e r a l l y b o r n e b y t h e u s u f r u c t u a r y , b e c a u s e t h e y a f f e c t h i s o w n r i g h t s a s usufructuary. CHAPTER 4EXTINGUISHMENT OF USUFRUCTUARY ARTICLE 603. Usufruct is extinguished:(1) By the death of the usufructuary, unless acontrary intention clearly appears;(2) By the expiration of the period for which it was constituted, or by the fulfilment of any resolutory condition provided in the title creating the usufruct;(3) By merger of the usufruct and ownership in the same person;(4) By renunciation of the usufructuary;(5) By the total loss of the thing in usufruct;(6) By the termination of the right of the personconstit uting the usufruct;(7) By prescription. (513a) E f f e c t o f d e a t h o f t h e u s u f r u c t u a r y w h e n a period or resolutory condition is stipulated: Navarro, Amandi, Sanchez Roman, SupremeCourt: T h e u s u f r u c t c a n n o t b e e x t e n d e d beyond the lifetime of the usufructuary,b e c a u s e o f t h e p e r s o n a l c h a r a c t e r o f the juridical relation. Tolentino, Scaevola and Valverde: t h e u s u f r u c t w i l l n o t b e e x t i n g u i s h e d only when it is expressly stipulated thatit shall continue even after such deathuntil the expiration of the period or theh a p p e n i n g o f t h e c o n d i t i o n a g r e e d upon. But when there is no such savingc l a u s e , d e a t h w i l l e x t i n g u i s h t h e usufruct. Manresa: Usufruct subsists and is transmitted tot h e h e i r s o f t h e u s u f r u c t u a r y b e c a u s e t h e w i l l o f t h e p a r t i e s m u s t b e respected.I n t h e computation of period of usufruct, thet i m e d u r i n g w h i c h t h e u s u f r u c t u a r y h a s n o t e n j o y e d t h e t i m e b e c a u s e o f i g n o r a n c e , dispossession by others, or any other cause, shall be counted against him.Merger naked ownership and the usufruct cometo be held by the same person Renunciation voluntary surrender of the rights of the usufructuary, made by him with intent toso surrender them.Prescription use by a third person extinguishes the usufruct ARTICLE 604. If the thing given in usufruct should b e l o s t o n l y i n p a r t , t h e r i g h t s h a l l c o n t i n u e o n t h e remaining part. (514) ARTICLE 605. Usufruct cannot be constituted infavor of a town, corporation, or association for more than fifty years. If it has been constituted, and beforethe expiration of such period the town is abandoned,o r t h e c o r p o r a t i o n o r a s s o c i a t i o n i s d i s s o l v e d , t h e u s u f r u c t s h a l l b e e x t i n g u i s h e d b y r e a s o n t h e r e o f . (515a) Usufruct in favor of Entities: Sec. 11, Crporatio Code, 50 years are a l l o w e d f o r t h e e x i s t e n c e o f a p r i v a t e c o r p o r a t i o n ; i n t h e c a s e o f t o w n s o r municipal corporations, a period longer than 50 years may militate against the p u b l i c p o l i c y w h i c h p r o h i b i t s t h e perpetual entailment of property. ARTICLE 606. A usufruct granted for the time that m a y e l a p s e b e f o r e a t h i r d p e r s o n a t t a i n s a c e r t a i n age, shall subsist for the number of years specified,even if the third person should die before the period e x p i r e s , u n l e s s s u c h u s u f r u c t h a s b e e n e x p r e s s l y granted only in consideration of the existence of such person. (516) A R T I C L E 6 0 7 . I f t h e u s u f r u c t i s c o n s t i t u t e d o n immovable property of which a building forms part, a n d t h e l a t t e r s h o u l d b e d e s t r o y e d i n a n y m a n n e r w h a t s o e v e r , t h e u s u f r u c t u a r y s h a l l h a v e a r i g h t t o make use of the land and the materials.T h e s a m e r u l e s h a l l b e a p p l i e d i f t h e u s u f r u c t i s constituted on a building only and the same should bed e s t r o y e d . B u t i n s u c h a c a s e , i f t h e o w n e r s h o u l d wish to construct another building, he shall have ar i g h t t o o c c u p y t h e l a n d a n d t o m a k e u s e o f t h e materials, being obliged to pay to the usufructuary,during the continuance of the usufruct, the interest upon the sum equivalent to the value of the land and of the materials. (517) Rules: usufruct on both building and land but the B i s d e s t r o y e d i n a n y m a n n e r whatsoever before the expiration of the period of Uary U o n t h e B i s e n d e d b u t t h e U o n the L continues (Art. 604) Uary is still entitled to the use of the l a n d a n d t h e u s e o f w h a t e v e r materials the house remains i f t h e NO w a n t s t o b u i l d b u t t h e Uary r e f u s e s , i t i s t h e Uary who p r e v a i l s f o r t h e u s e o f t h e l a n d i s s t i l l h i s f o r t h e r e m a i n d e r o f t h e period

usufruct of the building alone but the B is destroyed before the termination of the period. U on theB ends, but the Uary can still make use of whatever materials of the house remain. Uary is entitled to the use of the but because there is no U on the L, the NO has preferential right to its use. Legend: B - building L - land U - usufruct Uary - usufructuary NO Naked owner ARTICLE 608. If the usufructuary shares with the owner the insurance of the tenement given in usufruct, t h e f o r m e r s h a l l , in case of loss, continue in thee n j o y m e n t o f t h e n e w b u i l d i n g , s h o u l d o n e b e c o n s t r u c t e d , o r s h a l l r e c e i v e t h e i n t e r e s t o n t h e i n s u r a n c e i n d e m n i t y i f t h e o w n e r d o e s n o t w i s h t o rebuild. Should the usufructuary have refused to contribute to the insurance, the owner insuring the tenement alone, the latter shall receive the full amount of the insurance i n d e m n i t y i n c a s e o f l o s s , s a v i n g a l w a y s t h e r i g h t granted to the usufructuary in the preceding article. (518a) When the usufructuary refuses to share in the payment of the insurance, and the owner insures alone, the latter is entitled to thei n s u r a n c e m o n e y . H e h a s n o o b l i g a t i o n t o invest it in rebuilding the tenement. A R T I C L E 6 0 9 . S h o u l d t h e t h i n g i n u s u f r u c t b e expropriated for public use, the owner shall be obliged e i t h e r to replace it with another thing of the same v a l u e a n d o f s i m i l a r c o n d i t i o n s , o r t o p a y t h e usufructuary the legal interest on the amount of the indemnity for the whole period of the usufruct. If the o w n e r c h o o s e s t h e l a t t e r a l t e r n a t i v e , h e s h a l l g i v e security for the payment of the interest. (519) Rules in case of Expropriation: NO alone was given the indemnity, he has the option: to replace with equivalent thing to pay the Uary legal interest on the indemnity if both the NO and Uary were separatelyg i v e n t h e i n d e m n i t y , e a c h o w n e s t h e i n d e m n i t y g i v e n t o h i m , t h e U being totally extinguished Uary alone w a s g i v e n i n d e m n i t y , h e must give it to the NO and compel the latter to return either the interest or to replace the property. ARTICLE 610. A usufruct is not extinguished by b a d u s e o f t h e t h i n g i n u s u f r u c t ; b u t i f t h e a b u s e should cause considerable injury to the owner, the latter may demand that the thing be delivered to him, binding himself to pay annually to the usufructuary then e t p r o c e e d s o f t h e s a m e , a f t e r d e d u c t i n g t h e e x p e n s e s a n d t h e c o m p e n s a t i o n w h i c h m a y b e all owed him for its administration. (520) T h e b a d u s e o f t h i n g e n t i t l e s t h e o w n e r t o demand the delivery and admin istration of the thing. T o e n t i t l e h i m o f t h i s r i g h t , t h e b a d u s e m u s t cause considerable injury, not to the thing, but to the owner. ARTICLE 611. A usufruct constituted in favor of several persons living at the time of its constitution shall not be extinguished until the death of the last survivor. (521) A R T I C L E 6 1 2 . U p o n t h e t e r m i n a t i o n o f t h e usufruct, the thing in usufruct shall be delivered to the o w n e r , w i t h o u t p r e j u d i c e t o t h e r i g h t o f r e t e n t i o n pertaining to the usufructuary or his heirs for taxes a n d e x t r a o r d i n a r y e x p e n s e s w h i c h s h o u l d b e reimbursed. After the delivery has been made, the security or mortgage shall be cancelled. (522a) Righst and obligations at the termination of the Usufruct part of the Uary must return the property to the NO Uary must retain the property till hei s r e i m b u r s e d f o r t a x e s o n t h e capital t o r e m o v e t h e r e m o v a b l e i m p r o v e m e n t s o r s e t t h e m o f f against damages he has caused. part of the NO m u s t c a n c e l t h e s e c u r i t y o r mortgage must n case of rural lease, respect leases made by the Uary till the endof the agricultural year make reimbursement to the Uary In the proper cases. TITLE VIIEASEMENTS OF SERVITUDESCHAPTER 1EASEMENTS IN GENERALSection 1. - Different Kinds of Easements A R T I C L E 6 1 3 . A n e a s e m e n t o r s e r v i t u d e i s a n encumbrance imposed upon an immovable for the benefit of another immovable belonging to a different owner. T h e i m m o v a b l e i n f a v o r o f w h i c h t h e e a s e m e n t i s established is called the dominant estate; that which is subject thereto, the servient estate. (530) Servitude real right constituted on the corporeal immovable property of another, by virtue of which the owner of the latter has to refrain from doing or to allow that someone do something on his property, for the benefit of another thing or person. Limitation of ownership and a restriction on the enjoyment of one's property the encumbrance should not absorb entirely the usefulness of the servient tenement. Established only on immovables characteristics real right can be imposed only on the property of another. (when the dominant and the servient estate belongs to 2 different owners) produces a limitation on ownership allows the dominant owner to enjoy the use of part of the servient tenement must give some positive enjoyment or benefit to the dominant tenement

inseparable from the tenements to which it is actively or passively attached can exist only between neighbouring tenements. S e r v i t u d e L e a s e Form of encumbrance consists in the right tot h e l i m i t e d u s e o f a p i e c e o f l a n d w i t h o u t e i t h e r p o s s e s s i o n o r ownership thereof R i g h t f u l p o s s e s s i o n a n d u s e w i t h o u t t h e ownership of it. ARTICLE 614. Servitudes may also be established f o r t h e b e n e f i t o f a c o m m u n i t y , o r o f o n e o r m o r e persons to whom the encumbered estate does not belong. (531) Real Servitude for the benefit of a particular tenement personal servitude for the benefit of persons without dominant tenements d o e s n o t e x t e n d t o t h e s u c c e s s o r s i n i n t e r e s t o f t h e p e r s o n s t o w h o m i t i s granted. ARTICLE 615. Easements may be continuous or discontinuous, apparent or non apparent. Continuous easements are those the use of which is or may be incessant, without the intervention of any act of man. Discontinuous easements are those which are used at intervals and depend upon the acts of man. A p p a r e n t e a s e m e n t s a r e t h o s e w h i c h a r e m a d e known and are continually kept in view by external signs that reveal the use and enjoyment of the same. Non apparent easements are those which show no external indication of their existence. (532) T h e d i f f e r e n c e b e t w e e n c o n t i n u o u s a n d discontinuous servitudes refers only to thee x e r c i s e o f t h e s e r v i t u d e , b u t n o t t o t h e e s s e n c e , b e c a u s e t h e s e r v i t u d e e x i s t continuousl y.Right of way discontinuous because it is used o n l y w h e n m a n s e t s f o o t o r p a s s e s t h e r e o n ; positive easement Abutment of a dam anchoring the border of Adam t o t h e b a n k s o f t h e r i v e r ; c o n t i n u o u s easement because there is no need for human intervention needed