BOOK II

PROPERTY,OWNERSHIP,ANDITSMODIFICATION
Title I. CLASSIFICATION OF PROPERTY
PRELIMINARY PROVISIONS
ARTICLE 414. All things which are or may be the object of appro-priation are considered either:
(1) Immovable or real property; or
(2) Movable or personal property.

1. Introductory Concepts
1.1 Origin of the Word Property
The word property is derived from the Latin word proprius meaning belonging to one or ones own.
Traditionally, therefore, the concept of property extends only to those things which are already possessed and
found in the possession of man.
Hence, in the traditional notion, the concept of property is inseparable from the relation which the object
has with the person exercising dominion or right over it. It isin this sense that the concept of property is
said to be limited compared to the concept of things, which extends to all objects that exist whether it is
already in the possession of man or not.

1.2 Concept of Things

The concept of property (bienes) is intimately related with the concept of things (cosa). It must be
noticed that the Civil Code does not dene the term property but simply implies that the concept refers to
things which are susceptible of appropriation.
With the foregoing in mind, it is but proper to begin the discussion of property with the concept of things.
There was a time in history when certain persons, called slaves, were considered merely as chattels or
things that could be the subject of appropriation. But as human civilization progressed, the practice
of slavery has been condemned and eventually eradicated. In the modern world, therefore, distinction is
made between persons and things. The former is regarded as the subject or the holder of rights while
the latter is its object, although the actions of the former may likewise be the object of rights. Thus, while
the human person may not be considered as property, his conduct or acts, to a certain extent, may give
rise to enforceable rights in favor of other persons if such act or conduct is considered by law as a source
of obligation.
Things, therefore, are objects external to man. But the concept of things under the Civil Code is not
limited to corporeal objects or to objects that can be perceived by the senses. The concept also
extends to those which have only an intellectual or juridical existence (incorporeal objects). Otherwise
stated, the concept of things in our Civil Code embraces both material objects and rights. This is
clear from the provisions of Articles 414, 415 and 416 of the New Civil Code. To illustrate, in Article 414,
the law considers all things susceptible of appropriation as property, which may either be real or personal.
In Articles 415 and 416, on the other hand, rights are likewise considered as property. This is exemplied

in the provision of paragraph 10 of Article415 which classies as real property those real rights over
immovable property and in the provision of paragraph 1 of Article 417 of the New Civil Code
which classies as personal property obligations and actions which have for their object movables or
demandable sums.
1.3 Concept of Property under the Civil Code
As discussed in supra 1.1, the traditional notion is that property are those things which are already
possessed and found in the possession of man. However, in our Civil Code, the concept of property is not
conned
to
things
which
are
already
appropriated
or possessed
by
man but also extends to those susceptible of such appropriation, although not yet appropriated. This is
clear from the provisions of Article 414which classies as property all things which are or may be
the object of appropriation.
From the viewpoint of the Code, therefore, the terms property and things are identical to each other
and may be used interchangeably.
1.4 Susceptibility to Appropriation
As mentioned in supra 1.2, the term property under the Civil Code refers to things which are
susceptible of appropriation. Hence, even in the juridical sense, not all things may be considered as
property. This much is clear from the very provision of Article 414 of the New Civil Code. Pursuant to said
article, it is essential that a thing must be susceptible of appropriation before it can be considered as
property. Things which cannot, therefore, be subjected to human control by reason of sheer physical
impossibility are not considered as property. Examples are the following:
1. Things which, because of their distance, their depth or their immensity are not capable of human
control such as the sun, the stars and the ocean, are not properties;
2.Ordinarily, forces of nature such as lightning and rain are
not properties because of impossibility of appropriation in their diffused state. However, when they are
brought under human control through the help of science, i.e., electricity, they may now be regarded as
property. For the purpose of classifying things as property, the criterion of susceptibility to appropriation
should be distinguished from the concept of things or objects which are outside the commerce of man.
While things which are outside the commerce of man may not be the object of a contract, they are not
necessarily disqualied from being considered as property pursuant to the criterion mentioned in Article
414 of the Code. For example, properties of public dominion pertaining to the State, being outside the
commerce of man, cannot be the object of contracts. However, they are considered property under the
Code.
1.5 Additional Requisites
Aside from the criterion of susceptibility to appropriation mentioned in Article 414, most authors in the
subject provide for two additional requisites before considering a thing as property: (1) utility, or that it can
serve as a means to satisfy human needs; and (2) substantivity or individuality, or that the thing must
have an autonomous and separate existence
With respect to the requisite of utility, it is inconceivable at this age to think of a thing which is incapable of
satisfying any human need or want. As such, this requirement is of little use in law because almost all
things are capable of giving utility to man.

The requisite of individuality, on the other hand, need not be spelled out separately for the same is
implicitly required in Article 414of the Code. Thus, to be considered a separate property, a thing must
have an autonomous and separate existence and not simply a part of a whole. But if a part is separated
from the whole and, while in that state, is capable of satisfying any human need or want, it can then be
considered as a separate property. This is the basis, for example, of the rule stated in Article 466 of the
New Civil Code which states that whenever two movable things belonging to different owners are,
without bad faith, united in such a way that they form a single object, the owner of the principal thing
acquires the accessory, indemnifying the former owner thereof for its value.
The
same
can
be
said
of
the
different
parts
of
the
living
human body. While these parts remain attached to the person, they are not considered as property
because they are integral parts of the person and the latter is not, in law, considered as thing. However, when a part
of the human body, such as hair and teeth, is separated from the person, it may now be considered as
property for it now has an autonomous and independent existence
2. Classification of Property
2.1 Classication under Book II of the Civil Code
Although there are many classications of property, Book II of the New Civil Code enumerates the more
important classications, as follows:
(1) Immovable or movable (Arts. 415 to 417);
(2) Movables, in turn, are classied into consumable or non-consumable (Art. 418)
(3) From the viewpoint of ownership, property is classied either as property of public dominion or of
private ownership(Arts. 419to 425).
It is obvious from Article 414 that the term immovable is used synonymously with the term real property
and the term movable isused synonymously with the term personal property.
2.2 Importance of Classication
The classication of property in Article 414 into immovable(real) and movable (personal) is based on the
nature of the thing itself and is the most important in point of law because of the various legal
consequences owing therefrom, as follows:
For purposes of applying the rules of acquisitive prescription:
The ownership of movables prescribes through uninterrupted possession for four years in good faith or
through uninterrupted possession for eight years, without need of any other condition.
Ownership and other real rights over immovable property, on the other hand, are acquired by ordinary
prescription through possession of ten years or thirty years, without need of title or of good faith.
In determining the propriety of the object of the contracts of pledge, chattel mortgage and real
estate mortgage:
Only movables can be the object of the contracts of pledge and chattel mortgage. On the other hand, only
immovables can be the object of a real estate mortgage contract. As a consequence, should the parties
execute a chattel mortgage over a real property, the same is null and void and registration of the
instrument in the Registry of Property does not validate it insofar as third parties are concerned.
For purposes of determining the formalities of a donation:
If the value of the personal property donated exceeds P5,000.00, the donation and the acceptance are
required to be in writing; otherwise, the donation is void.

In order that the donation of an immovable property may be valid, it must be made in a public document,
as well as the acceptance thereof.
In extrajudicial deposit:
Only movable things may be the object of extrajudicial deposit.
In crimes of theft, robbery and usurpation:
Only personal property can be the object of the crimes of theft and robbery. However, the crime of
usurpation dened in Article 312 of the Revised Penal Code can be committed only with respect to a real
property
For purposes of determining the venue in remedial law:
In the law of procedure, it is important to know the classication of property for purposes of venue. If the
action affects title to or possession of real property, or interest therein, the action (referred to as real
action) must be led in the proper court wherein the real property involved, or a portion thereof,
is situated.
All other actions (referred to as personal action) may be commenced and tried where the plaintiff or the
defendant resides, at the election of the plaintiff.