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FUNDAMENTALS OF REAL PROPERTY OWNERSHIP

[PART I]
BY:
Atty. RAYMOND B. BATU
REB PRC License number 0018084

BATU ESTARES Law & Realty Office


Door no. 2, Residencia Del Marina Business Center
Jacinto St., Davao City
Telephone number (082) 300-3945

PROPERTY OWNERSHIP:
It is the independent and general right of a person to control a thing particularly in his
possession, enjoyment, disposition, and recovery, subject to no restrictions except those
imposed by the state or private persons, without prejudice to the provisions of law.
NOTES:
It is not absolute there are restrictions imposed by the state or private persons
without prejudice to the provisions of the law.
PRINCIPLE OF RES NULLIUS:
NOTES:
Res Nullius is a Latin term that means without owner.
Examples: fish in the ocean, wild animals.
However, everything must have an owner and if there are no private claimants or
owners, then that particular property is presumed to be owned by the State.
Regalian Doctrine - All lands of the public domain belong to the State, which the source
of any is asserted right to ownership of land. All lands not otherwise appearing to be
clearly within private ownership are presumed to belong to the State.
Thus, when a person dies without any heir, then the State succeeds to the estate of the
deceased [escheat].
PRINCIPLE OF RES COMMUNES:
Things that are owned by everybody
PRINCIPLE OF RES ALICUJUS:
Object, tangible or intangible, which are owned privately, either in collective or
individual capacity
NOTES:
Intangible shares of stock
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KINDS OF LAND OWNERSHIP:


1. Full Ownership: This includes all the rights of an owner.
NOTES: The absolute right to possess, use, dispose, abuse, to fruits etc
2. Naked Ownership: An ownership where the right to the use and the fruits has
been taken by another, as in the case of usufruct.
NOTES: If you enter into a contract of usufruct you are the owner of the property
but you do not enjoy the fruits of your property.
3. Sole-Ownership: Where ownership is vested in only one person.
4. Co-Ownership: Where ownership of the land as a whole is vested in two or more
persons.
NOTES: The concept of this kind of ownership is UNITY in the property and
PLURALITY of the subjects. Each co-owner, together with the other co-owner is the
owner of the whole and at the same time owner of the undivided part/share
thereof.
MODES OF ACQUIRING LAND OWNERSHIP:
1. Public Grant: A different administrative method of acquiring public land, such as
homestead and free patent it has restrictions and thus, not absolute.
a. Homestead is a mode of acquiring alienable and disposable lands of the

public domain for agricultural purposes conditioned upon actual


cultivation and residence. The Philippine Legislature passed the
Homestead law in 1903.
NOTES:
-Application must be filed at the DENR. Must be a Filipino citizen, of legal
age, preferably the head of the family and the applicant must not own more
than 12 hectares
RESTRICTION: OCT
"Section 118. Except in favor of the Government or any of its branches, units, or
institutions, lands acquired under free patent or homestead provisions shall not
be subject to encumbrance or alienation from the date of the approval of the
application and for a term of five years from and after the date of issuance of
the patent or grant, nor shall they become liable to the satisfaction of any debt
contracted prior to the expiration of said period, but the improvements or crops
on the land may be mortgaged or pledged to qualified persons, associations, or
corporations.
"No alienation, transfer, or conveyance of any homestead after five years and
before twenty-five years after issuance of title shall be valid without the
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approval of the Secretary of Agriculture and Commerce, which approval shall not
be denied except on constitutional and legal grounds."
b. Free Patent is a mode of acquiring public alienable and disposable lands

which have been zoned as residential.


NOTES: Take note of the FREE PATENT ACT RA 10023 which was signed into
law on March 9, 2010
Important features of the law:
Sec. 3. Qualifications. - Applicants for the issuance of a residential free
patent shall possess the following qualifications, namely:
3.1. Filipino citizenship - the land investigator concerned may ask for proof of
citizenship such as, but not limited to, a copy of the birth certificate,
passport, decree or order of naturalization, or certificate of dual citizenship.
3.2. Actual occupation, actual residence and continuous possession and
occupation of the parcel subject of the application, either by herself or
himself or through her or his predecessor-in-interest, under a bona fide claim
of acquisition of ownership, for at least ten (10) years prior to the filing of the
application.
There shall be no age requirement for applicants as long as minor applicants,
aged below eighteen (18) years old, are duly represented by their legal
guardians. The heirs of a deceased applicant may substitute the applicant
provided that they themselves possess the required qualifications. There
shall likewise be no limit as to the number of applications which may be filed
under RA 10023, provided that the limitations as to the size of the parcel as
stated in Section 4 shall not be exceeded.
No application shall be approved for any individual whose total landholding
would exceed a total of an accumulated twelve (12) hectares, including
agricultural lands, should the application be granted.
Sec. 4. Coverage. - The IRR covers all residential lands that have been
identified and zoned through the appropriate ordinance of the LGU
concerned, provided that the land applied for is not needed for public service
and/or public use.
4.1. For highly urbanized cities, the area shall not exceed two hundred (200)
square meters.
4.2. For other cities, the area shall not exceed five hundred (500) square
meters.
4.3. For first class and second class municipalities, the area shall not exceed
seven hundred fifty (750) square meters.
4.4. For all other municipalities, the area shall not exceed one thousand
(1000) square meters.
Sec. 9. Removal of Restrictions. - The following restrictions under Chapter XIII,
Title VI of Commonwealth Act No. 141 shall not be applicable to patents issued
under RA 10023, to wit:
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Section 118. Except in favor of the Government or any of its branches, units, or
institutions, lands acquired under free patent or homestead provisions shall not
be subject to encumbrance or alienation from the date of the approval of the
application and for a term of five years from and after the date of issuance of the
patent or grant, nor shall they become liable to the satisfaction of any debt
contracted prior to the expiration of said period, but the improvements or crops
on the land may be mortgaged or pledged to qualified persons, associations, or
corporations.
No alienation, transfer, or conveyance of any homestead after five years and
before twenty-five years after issuance of title shall be valid without the
approval of the Secretary of Agriculture and Commerce, which approval shall not
be denied except on constitutional and legal grounds.
c. Miscellaneous Sales Application is an act permitting sale without public

auction of alienable and disposable lands of the public domain for


residential purpose.
NOTES: RA 730
- Maximum area that may be granted is 1000 square meters
- WHO ARE QUALIFIED TO APPLY?
1. A Filipino citizen of lawful age, married; if single, applicant must be the
head or bread winner of the family;
2. He is not the owner of a home lot in the municipality/city where the land
applied for is located;
3. He must have occupied in good faith the land applied for and constructed
a house thereon where he/she and family is actually residing.

2. Adverse Possession or Prescription: The continuous, open adverse possession in


the concept of owner for the period fixed by law. However, land titled under the
Torrens System of Registration cannot be acquired by prescription or adverse
possession.
NOTES: Must be alienable and disposable
3. Accretion: The process by which soil is deposited to lands adjoining rivers. Article
457 of the Civil Code provides that the owners of land adjoining the banks of
rivers are also the owners of the accretion which they gradually receive from the
effects of the current of the waters.
NOTES: Accretion is the process. ALLUVIUM is the soil deposited
4. Reclamation: The filling of submerged land by deliberate act such as the
reclamation of Manila Bay.
5. Voluntary Transfer of Private Grant: The execution by the owners of the
appropriate documents transferring ownership to another.
6. Involuntary Alienation or Involuntary Grant: The process by which the land is
taken against the consent of the owner. Examples are expropriation proceeding,
execution of judgments, tax sales and foreclosure of mortgage.
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7. Descent: The acquisition of land by virtue of hereditary succession as an heir.


NOTES: The rule on inheritance established by law in cases which there is NO will
naming the persons to succeed, the estate shall descend to his descendants in the
direct line.
8. Devise: The acquisition of land by a person through the will of an owner or
testator.
9. Emancipation Patent: The grant of agricultural lands to tenant-farmers in the
implementation of the land reform program of the government.
RIGHTS INCLUDED IN LAND OWNERSHIP (BUNDLE OF RIGHTS):
1. Jus Utendi (The Right to Use): This includes the right to exclude any person from
the enjoyment and disposal of the property. For this purpose, the ownerpossessor may use such force as may be reasonably necessary to repel or
prevent an actual or threatened unlawful physical invasion or usurpation of the
property. [DOCTRINE OF SELF HELP]
2. Jus Fruendi (The Right to the Fruits): This includes the right to natural, industrial
and civil fruits.
Natural fruits are the spontaneous products of the soil and the young
and other products of animals
Industrial Fruits are those produced by lands of any kind through
cultivation or labor
Civil fruits rents of buildings, price of lease of lands.
3. Jus Disponendi (The Right to Dispose): This includes the right to donate, to sell
or to mortgage.
NOTES:
Donation Must be in public document
Sale or mortgage Must be in writing and enough to bind the parties. Public
document necessary for registration only and to be valid and binding to third
persons.
Sale Owner at the time of delivery [Art. 1459]
Mortgage Must be the owner at the time of mortgage
4. Jus Abutendi (The Right to Abuse): However, the right of the owner to abuse his
property is restricted by law.
Example of restrictions:
- In Donations Must reserved sufficient property to support himself and for
those he is obliged to support
- Destruction of the house/building demolition permit

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5. Jus Vindicandi (The Right to Recover): However, the owner must use judicial
process, if the property comes into the unlawful possession of another. He
should not take the law into his own hand.
- Replevin - Recovery of personal property
- Forcible entry A person in possession was deprived by FISTS 1 year
dispossession
- Unlawful detainer
- Accion Publiciana recover better right of possession
- Accion Reinvindicatoria recovery of ownership
6. Jus Possidendi (The Right to Possess): It means the right to hold a thing or to
enjoy a right.
NOTES:
If you buy a real property and there is someone renting the house. Can you ask the
renter to leave? Yes, generally
Except:
- If lease contract is unexpired and lease duly recorded at the ROD
- Or you know the existence and duration of the lease when you bought
the property
Exception to the exception: Rent Control Act RA 9653 section 10:
SEC. 10. Prohibition Against Ejectment by Reason of Sale or Mortgage. No lessor or
his successor-in-interest shall be entitled to eject the lessee upon the ground that
the leased premises have been sold or mortgaged to a third person regardless of
whether the lease or mortgage is registered or not.
Applies to Residential unit and shall refer to an apartment, house and/or land on
which anothers dwelling is located and used for residential purposes and shall
include not only buildings, part or units thereof used solely as dwelling places,
boarding houses, dormitories, rooms and bed spaces offered for rent by their
owners, except motels, motel rooms, hotels, hotel rooms, but also those used for
home industries, retail stores or other business purposes if the owner thereof and
his or her family actually live therein and use it principally for dwelling purposes.

To summarize, if you are the owner of a house and lot, you can:
a.
b.
c.
d.
e.
f.

Live in it
Use it
Receive rentals from a tenant in case you lease it
Destroy it
Sell or mortgage or donate it
Recover it from anyone who has deprived me of its rightful possession
STEWARDSHIP PRINCIPLE

A principle of ownership which mandates property owners to use their property in a


manner that will promote not only their interest but also the general welfare.
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