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WHAT IS CO-OWNERSHIP? the state - Purpose: collective enjoyment v. ProfiT .

3) the roof (this is really used by ALL); and

Expenses to improve or shall be decided by a
where an undivided thing or right belongs to different embellish the thing majority
persons. (484) - not dissolved by death or incapacity of the co- . 4) the other things used in common.
owner v. is dissolved by the death or incapacity
- there is no co-ownership when the different of the partner
portions owned by different people are already Q: How can a co-owner exempt himself from
concretely determined and identifiable, even if not contribution? (b) Each floor owner must bear the expenses of his
yet technically described (Dela Cruz v. Cruz) - disposal of shares without consent of co-owners floor.
is proper v. Cannot substitute another as partner A: A co-owner may exempt himself from this duty to
in his place without the consent of others reimburse by RENOUNCING (abandoning for the (c) Stairs are to be maintained from story to story, by
Issue: May a co-owner validly lease his undivided benefit of the others) so much of his undivided share the users.
interest to a third party? - as may be equivalent to his share of the expenses
Profit depends on proportionate shares (485) v.
and taxes. Provided that the co-ownership will not be RA 4726 - condominium act
may be stipulated upon
Held: Yes, independently of the other co-owners.
Q: If a co-owner has paid the taxes to prevent Section 5. Any transfer or conveyance of a unit or an
WHAT RENOUNCING REQUIRES: apartment, office or store or other space therein, shall
*Any co-owner may file an ejectment not only against forfeiture of the common property for tax delinquency,
third person but also against another co-owner who can he compel contribution? include the transfer or conveyance of the undivided
takes exclusive possession and asserts exclusive (a) If the renouncing is in favor of the creditor, said interest in the common areas or, in a property case,
ownership of the property. creditor must give his consent (for this would be a the membership or shareholdings in the
A: YES (Jalandoni v. Guanzon, 1958)
case of adjudicacion en pago or datio in solutum, condominium corporation; PROVIDED, However, that
where a debtor gives something else in payment of where the common areas in the condominium project
CHARACTERISTICS OF CO-OWNERSHIP: ART. 486: EACH CO-OWNER HAS THE RIGHT TO are held by the owners of separate units as co-
his debt).
USE THE PROPERTY FOR THE PURPOSE owners thereof, no condominium unit therein shall be
1. There must be more than 1 subject or owner; INTENDED; but: conveyed or transferred to persons other than Filipino
(b) If the renouncing is in favor of the other co-
owners, a no- vation (in the form of substitution of citizens or corporations at least 60% of the capital
2. there must be 1 physical whole divided into 1. the interest of the co-ownership must not be debtor) would result — necessitating the consent of stock of which belong to Filipino citizens, except in
ideal (undivided shares); injured or prejudiced; said other co-owners AND of the creditor. cases of hereditary succession. Where the common
areas in a condominium project are held by a
2. and the other co-owners must not be prevented corporation, no transfer or conveyance of a unit shall
3. each ideal share is definite in amount, but is [NOTE: The creditor’s consent would of course be
from using it. be valid if the concomitant transfer of the appurtenant
not physically segregated from the rest; needed only if the expenses have already been membership or stockholding in the corporation will
incurred, otherwise, there would as yet be no cause the alien interest in such corporation to exceed
4. each co-owner must respect each other in the ART. 487 EJECTMENT creditors.]. the limits imposed by existing laws.
common use, enjoyment or preservation of the
physical whole (486); - Q: Can a co-owner go ahead with necessary repairs
487 now allows a co-owner to bring an action for Section 7. Except as provided in the following
ejectment which covers all kinds of action for the even against the opposition of all the rest? section, the common areas shall remain undivided,
5. regarding the IDEAL share, each co-owner recovery of possession; including F.E. and U.D., and there shall be no judicial partition thereof.
holds almost absolute control over the same without the necessity of joining all the other co- A: YES, because the negligence of the others should
(493); owners as plaintiffs, because the said action is not prejudice him. Section 8. Where several persons own
deemed to be instituted for the benefit of all. condominiums in a condominium project, an action
6. has no juridical personality; ART. 490 - PERPENDICULAR CO-OWNERSHIP - may be brought by one or more such persons for
ART 488; 489 where different stories belong to different persons. partition thereof by sale of the entire project, as if the
7. a co-owner is a trustee of the other co-owners owners of all the condominiums in such project were
(a) Proportionate contribution is required for the co-owners of the entire project in the same proportion
Preservation Expenses Co-owner can compel preservation of — as their interests in the common areas: PROVIDED,
contribution even if however, That a partition shall be made only upon a
without prior notification, showing:
- 1) the main walls; 332
no legal personality v. has legal personality but he must notify the
others, if practicable (a) That three years after damage or destruction to
. 2) the party walls;
- the projects which render a material part thereof unfit
Created by contract or by other things v. created
for its use prior thereto, the project has not been
by contract only
rebuilt or repaired substantially to its state prior to its ANS.: No, for clearly this conversion constitutes an . (d) those that do not give rise to a real RULES:
damage or destruction; or AL- TERATION which by law requires UNANIMITY right over the thing owned in common;
on the part of all the co-owners unless a judicial order 1. Each co-owner has FULL ownership of his part,
(b) That damage or destruction to the project has to the contrary is obtained. (See Art. 491). . (e) those, which even if called an and of his share of the fruits and
rendered one-half or more of the units therein alteration, do not affect the substance or benefits;
untenant- able and that condominium owners holding * Consent for alteration may be given IMPLIEDLY. nature of the thing (2 Castan 200-203);
in aggregate more than 30 per cent interest in the However, implied or tacit consent is not enough to 2. and therefore, he may ALIENATE, ASSIGN OR
common areas are opposed to repair or restoration of make the other co-owners liable for the expenses . (f) those for the common benefit of all the MORTGAGE his ideal share (without
the projects; or of the construction of the house. To recover a share co-owners and not for only one or some of prejudice to the exercise by the others
of the expenses, and express consent is needed them. (Singson v. Veloso, supra). of their right of LEGAL REDEMPTION)
(c) That the project has been in existence in excess (Javier v. Javier) [NOTE: All the requisites mentioned must
of 50 years, that it is obsolete and uneconomic, and CONCUR.]. 3. he may even SUBSTITUTE another person in its
that condominium owners holding in aggregate more EFFECTS OF ILLEGAL ALTERATION (an alteration enjoyment, except when personal
than 50 per cent interest in the common areas are done without the consent of other co-owners): rights are involved;
opposed to repair or restoration or modelling or Limitations on the Right of the Financial Majority
modernizing of the project; or (a) The co-owner responsible may lose what he has 4. he may exempt himself from necessary expenses
spent; (a) Although they can approve resolutions for and taxes by renouncing part of his
(d) That the project or a material part thereof has administration and better enjoyment, still before a interest in the co-ownership (488)
been condemned or expropriated and that the project (b) Demolition can be compelled; decision is made, there should first be a notice to the
is no longer viable, or that the condominium owners minority so that they can be heard. (3 Manresa 488;
holding in aggregate more than 70 per cent interest in *in case of alienation or mortgage, the transferee
(c) He would be liable for losses and damages; Singson, et al. v. Veloso, et al., [CA] 52 O.G. 870). does not get any specific portion till after
the common areas are opposed to continuation of the
condominium regime after expropriation or partition.
condemnation of a material portion thereof; or (d) BUT whatever benefits the co-ownership derives (b) The majority would be justified in proceeding only
will belong to it (3 Manresa 468, 471-472); when the urgency of the case and the difficulty of Q: what happens if one of the co-owners success in
meeting with them render impracticable the giving of selling the entire property without the
(e) That the conditions for such partition by sale set such notice. (Singson v. Veloso, supra).
forth in the declaration of restrictions duly registered (e) In case a house is constructed on common lot, all consent of the others?
in accordance with the terms of this Act, have been the co-owners will be entitled to a proportionate share
met. of the rent. (It is wrong to give all to the person who (c) The minority may APPEAL to the court against the A: The sale is valid only insofar as his spiritual share
made the alteration and just let her pay rent on the deci- sion of the majority when, for example — is concerned (Punzalan v Liat) The
ART 491 = ALTERATIONS land). (Singson, et al. v. Ch. Veloso, et al., [CA] 52 transferee now will be the one to
O.G. 370). 1) there is no real majority (Art. 492); participate in the partition, and not the
original owner, since the vendor has
Basic rule: must be with the consent of other co- ceased to have an interest in the co-
owners even though it would benefit them all ART 492* administration and better enjoyment, the 2) the resolution is seriously prejudicial to the
resolutions of the (financial) majority is sufficient and rights ownership (Lopez v Ilustre)
binding. of an individual co-owner (Art. 492);
- a change which is more or less permanent; or Q: Can a co-owner sell his share to a stranger who
changes the use of the thing which might prejudice desires to change the use of the common
the condition of the thing or its enjoyment by the Acts of Administration or Management 3) when the majority refuses to correct abuse of
administration or maladministration; property (from a residential unit to a
others (an act of ownership) factory)?
They are those:
Examples: sale, donation or mortgage of the whole 4) when the minority is made the victim of fraud;
A: No, the interests of the other co-owners will
property; sale or donation of a definite part of the . (a) that do not involve an alteration; jeopardized.
property with boundaries; a voluntary easement 5) when an alteration (instead of mere act of
. (b) those that may be renewed from time administration) is agreed upon.
[NOTE: The court may even appoint an ART. 494 - PARTITION
Q: R, S and T are co-owners of a ten-hectare to time;
agricultural land in Quezon City. R is the administrator. (Art. 492).].
administrator. S and T are in Spain. May R convert General Rule #1: PARTITION IS ALLOWED AT ANY
. (c) those that have transitory effects, that TIME.
that land to a memorial park without the knowledge is, do not bind the co-ownership for a long
and consent of S and T? Explain. time in the future; ART. 493 - THE RIGHT OF THE CO-OWNER TO
1. when there is an agreement to keep the things such repudiation of co- ownership. (Castillo (b) If A had sold only part of his share, or even if he How Co-ownership Is Extinguished
undivided for a certain period of time (a v. Court of Appeals,1964). sold his entire share, he has not yet delivered
period not exceeding 10 years, though same to X (such that X does not have yet a real (a) judicial partition
subject to renewal after the expiration Q: A and B were co-owners of the land. There was right, but only a personal right against A), then
of the period); partition but A happened to be given more both A and X are allowed to participate in the
than her share. Many years later, B asked partition, together with B and C. A will participate
as co-owner, and X as “assignee,” as the term is (b) extrajudicial partition
2. when the donor or testator prohibits partition for a to be given the extra part but A claimed
period which shall not exceed 20 years; prescription in her favor. Is A correct? used in this article. (See Lopez v. Martinez, 5
Phil. 567). (c) when by prescription, one co-owner has acquired
the whole property by adverse
3. when there is a prohibition by law (e.g. A: Yes, True, there can generally be no prescription possession as against all the others,
easements); among co-owners while they remain co- ART. 500 EFFECTS OF PARTITION:
and repudiating unequivocally the co-
owners, but here, there has already been a ownership of the other
4. When a physical partition would render the partition and the co-ownership has (a) mutual accounting for benefits received. (Art.
property unserviceable (495// e.g. an therefore ceased. (Ynot v. Initan) 500).
(d) when a stranger acquires by prescription the
automobile), but in this case, the thing owned in common
property may be ALLOTED to one of *the action to declare the nullity of a VOID (b) mutual reimbursement for expenses. (Art. 500).
the co-owners, who shall indemnify the extrajudicial partition does not prescribe
others or it will be sold and the (1409) (e) merger in one co-owner
proceeds distributed (498- LEGAL (c) indemnity for damages in case of negligence or
DISSOLUTION); ART. 497 fraud. (Art. 500) (f) loss or destruction

5. when the legal nature of the common property GENERAL RULE: the creditors and assignees of the (d) reciprocal warranty for (g) expropriation (here the indemnity will be
does not allow partition (like the case of co-onwers may take part in the division of distributed accordingly).
party walls) the thing owned in common and object to 1) defects of title (or eviction);
its being effected without their
General Rule #2: PRESCRIPTION SHALL NOT RUN concurrence; but THEY CANNOT IMPUGN __________________________________________
[NOTE: No warranty if there is a SOME SPECIAL PROPERTIES
Exn: 1. if there was fraud; contrary stipu- lation or if the
Exemption: When a co-owner repudiates (does not eviction is due to fault of co-
recognize) the co-ownership - prescription ART 502 WATERS
2. if the debtor has presented a formal owner evicted. (See Arts. 1092-
begins to run opposition to prevent the partition 1093).]
Public Dominion: RiC CoLRain SubOLeWas
Q: how can a co-owner become the exclusive owners Who are the “creditors”? those creditors during the (e) each former co-owner is deemed to have had
of the other’s share by prescription? existence of the co-ownership exclusive possession of the part allotted to Name: RIC - Rivers; Continuous or intermittent
him for the entire period during which the waters of springs and brooks running in
1) He must make known to the other co- co-possession lasted. (Art. 543). their natural beds;
A, B, and C are co-owners. A sold his share to X.
owners that he is definitely repudiating the Who is entitled to participate in the partition, A or X?
co-ownership and that he is claiming (f) partition confers upon each, the exclusive title over Middle Name: COLRAIN - Waters rising continuously
complete ownership over the entire his respective share. (See Art. 1091). or intermittently on land of public dominion;
property. ANS.: It depends. Lakes and lagoons formed by nature on
2) The evidence of repudiation and public lands and their beds; Rain waters
knowledge on the part of the others must (a) If A had sold his WHOLE share, and has ART. 501 RECIPROCAL WARRANTY running through ravines or sand beds
be clear and convincing. delivered same (such as when X has been put in
3) The other requirements of prescription possession of the land in place of A, with the Example: A and B, co-owners, partitioned their land. Surname: SUBOLEWAS- Subterranean waters on
— continuous, open, peaceful, public, result that X now has a REAL right over the Later, C, a stranger was able to prove that he really public lands; waters found within the zone
adverse possession for the period of time property), then it is NOT A who should participate owned the lot belonging to B. Should B alone bear of Operation of public works; waters rising
required under the law must be present. but X. (But in this case, X is participating not as the loss? ANS.: No. Both A and continuously or intermittently on lands
(See Santos v. Heirs of Crisostomo). assignee but in his own right, as CO-OWNER, B must bear the loss in that A must give half of his belonging to private persons, or to the
4) The period of prescription (Statute of with B and C.) portion to B because there is a reciprocal or mutual State, or to a province, or to a city or a
Limitations) shall start to run only from warranty against eviction. municipality from the moment they LEave
such lands; the WAste waters of fountains, a. by the lapse of the concession; g. Industrial; 1. grammatical degree - mere holding of a thing,
sewers and public establishments without any right whatsoever;
b. by non-user for 5 years h. Recreational; and
*UNDER THE NEW WATER CODE, there are no 2. possession with juridical title - e.g. that of a
private waters. non-use is total or partial abandonment. lessee, pledgee or depositary;
i. Other purposes.
Fortuitous event excuses non-users.
ART 504 HOW IS THE USE OF PUBLIC WATER 3. possession with just title or real possessory right -
ACQUIRED? * Use of water for recreational purposes is the not from the true owner;
2. by prescription for 10 years utilization of water for swimming pools, bath houses,
boating, water skiing, golf courses and other similar
1. By administrative concession; facilities in resorts and other places of recreation. 4. Possession with a title of dominium, with a just
(note: if the water source of a swimming pool came title from the owner (possession which springs
Order of Preference in Obtaining a Concession from a natural source such as spring, there is a need out from ownership)
PRIVATE TO PUBLIC WATERS to secure a permit; however, if the source is nawasa
In obtaining a concession, the order of preference is which is already of private ownership, there is no REQUISITES OF POSSESSION:
as follows: need to secure a permit.)
Riparian Ownership - Riparian rights flow out of
riparian ownership (56 Am. Jur. 727). To . (a) There must be a holding or control
. (a) The first to appropriate is given a better be riparian, land must have actual contact Art. 20. The measure and limit of appropriation of (occupancy, or taking or apprehension) of
right to ask for a concession with the water, not be merely proximate to water shall be beneficial use. a thing or a right. (This holding may be
it. (56 Am. Jur. 731). actual or constructive.)
. (b) When the claimants appropriated at the Beneficial use of water is the utilization of water in the
same time, preference is given in Riparian Rights right amount during the period that the water is . (b) There must be a deliberate intention to
accordance with the use intended, in this needed for producing the benefits for which the water possess (animus possidendi). This is a
order: (DAInFiM) is appropriated. state of the mind.
. (a) right to the natural flow of the waters

. 1) domestic use (like drinking, __________________________________________ . (c) The possession must be by virtue of
. (b) right of access to and use of the waters one’s own right. (This may be because he
is an owner or because of a right de- rived
. (c) right of accretion. (See 56 Am. Jur. POSSESSION from the owner such as that of a tenant.)
. 2) agricultural use or power 726).
development for agricultural
purposes is the holding of a thing and enjoyment of a right *CONSTRUCTIVE POSSESSION - possession in the
(523) eyes of the law does not mean that a man
has to have his feet on every square meter
. 3) industrial uses of ground before it can be said that he is in
possession (Ramos v. Director of Lands)
. 4) fishponds
Art. 10. Water may be appropriated for the following A: it is a fact (since it exists); but from the moment it
purposes: exists, certain consequences follow, thus making CLASSES OF POSSESSION:
5) mining uses or milling possession also a RIGHT.
connected with mining purposes. (See (a) In one’s own name or in that of another. (Art.
Sec. 3, Act 2152). a. Domestic (no need of permit);

[NOTE: As a rule, property of b. Municipal;

1. Right TO possession - a right incident to (b) In the concept of owner (en concepto de dueno)
public dominion may not be acquired by prescription. and in the
This article on public waters gives an exception, ownership (e.g. I own the house, and I have the
c. Irrigation; right to possess it) concept of holder. (Art. 525).
insofar as their use is concerned.]
d. Power generation; 2. Right OF possession - right itself, independent of (c) In good faith (bona fide) or in bad faith. (mala
note: “every concession for the use of waters is fide).
understood to be without prejudice to third persons” ownership (e.g. a lessee, by virtue of the lease, is
(505) e. Fisheries; entitled to possess the house for the period of
lease) Spouses Medina and Bernal v. Hon. Nelly Romero
Valdellon L-38510, Mar. 25, 1975
*how is a concession extinguished? f. Livestock raising;
FACTS: A married couple sued for recovery of may be the character of his prior possession, if he Case: when a contract of sale is void, the possessor deemed never to have possessed the same.”
possession of a parcel of land. The defendants has in is favor priority of time, he has the security that is entitled to keep the fruits during the period for (Art. 533).
presented a motion to dismiss on the ground that a entitles him to stay on the property until he is lawfully which it held the property in good faith… (DBP v. CA,
land registration case was pending between the ejected by a person having a better right by either 1999) 3. PRESUMPTION OF JUST TITLE — “A
parties in another CFI branch of the same court. accion publiciana or accion reivindicatoria. (Jose De possessor in the concept of owner has in his
ISSUE: should the recovery of possession case be Luna v. CA, 1992) favor the legal presumption that he possesses
dismissed? with just title, and he cannot be obliged to show
SECOND CLASS OF POSSESSION: IN THE 2. Possessor in Bad Faith - who possesses in any or prove it.’’ (Art. 541).
HELD: No, because the issues in the two cases are CONCEPT OF AN OWNER OR IN THE CONCEPT case contrary to the stated above (Hence, if
differ- ent. The first deals with possession, the OF HOLDER (ART 525) circumstances exist that require a prudent man to 4. NON-INTERRUPTION OF POSSESSION OF
second, with owner- ship. Thus, the eventual decision investigate, he will be in bad faith if he does not PROP- ERTY UNJUSTLY LOST BUT LEGALLY
in one will not constitute res judicata for the other. 1. In the concept of owner - one who, whether in investigate) RECOVERED — “One who recovers, according
good or in bad faith, CLAIMS to be, and ACTS as to law, possession un- justly lost, shall be
FIRST CLASS OF POSSESSION: IN ONE’S OWN if he is, the owner. He thus recognizes no title of deemed for all purposes which may redound to
- A purchaser cannot close his eyes to facts which
NAME OR IN THAT OF ANOTHER (ART 524) ownership in another, with respect to the property his benefit, to have enjoyed it without
involved. Whether he is in good faith or bad faith should put a reasonable man upon his guard, and interruption.” (Art. 561).
is immaterial. (this is the possession that may then claim that he acted in good faith under the
Who is in Actual Possession of a Rented Parcel belief that there was no defect in the title of the
of Land? ripen to ownership.) —- also known as “concepto 5. POSSESSION DURING INTERVENING PERIOD
de dueno" vendor (Lee v. Strong)
— “It is presumed, that the present possessor
The lessor, thru the tenant, is in actual possession of who was also the possessor at previous time, has
the land (in the concept of owner, that is, if the lessor 2. in the concept of holder - recognizes another to be - a lessee who continues to stay on the premises continued to be in possession during the
is NOT the owner; if he is the owner, he is called the the owner (eg. Tenant, usufructuary, depositary, after the expiration of the lease contract is a intervening time, unless there is proof to the
possessor-owner) . The tenant, by himself, is in bailee in a commodatum - they only have the right to usurper having no more right to the use and contrary.” (Art. 1138[2]).
actual possession in the concept of holder. use the thing) enjoyment of the premises. He has become a
possessor in bad faith (Republic v. Diaz, 1979) 6. POSSESSION OF MOVABLES WITH REAL
Possession in Another’s Name THIRD CLASS OF POSSESSION: BAD FAITH OR PROPERTY — “The possession of real property
GOOD FAITH - while one who buys from the registered owner presumes that of the movables therein, so long
does not need to look behind the certificate of title, as it is not shown or proved that they should be
. (a) Voluntary — as when an agent excluded.” (Art. 542).
possesses for the principal (by virtue of Definitions ( ART 526) - *this article does not apply if one who buys from one who is not the registered
agreement). there is no flaw at all owner is expected to examine not only the
certificate of title but all factual circumstances 7. EXCLUSIVE POSSESSION OF COMMON
1. Possessor in Good faith - one who is spy aware necessary for his to determine if there are any PROPERTY — “Each one of the participants of a
. (b) Necessary — as when a mother thing possessed in common shall be deemed to
that there exists in his title or mode of acquisition flaws in the title of the transferor, or in his capacity
possesses for a child still in the maternal have exclusively possessed the part which may
any flaw which invalidates it; (Mistake upon a to transfer the land (Revilla v. Galindez, 1960)
womb. be allotted to him upon the division thereof, for
[NOTE: Here the mother does not possess doubtful or difficult question of law may be the
basis of good faith) the entire period during which the co-posses- sion
the child; she possesses FOR him.]. lasted.” (Art. 543).

. (c) Unauthorized — (This will become the - what matters is the BELIEF that you are the owner. OTHER PRESUMPTIONS:
principal’s pos- session only after there has POSSESSION? only things and rights which are
been a ratification without prejudice to the 1. CONTINUITY OF CHARACTER OF susceptible of being appropriated
effects of negotiorum gestio.)
- The purchaser has a right to rely on the certificate
POSSESSION (whether in good faith or bad faith
of title (mirror doctrine). — “It is presumed that possession continues to
be enjoyed in the same character in which it was so what are the things and rights that cannot be
Presumption No. 1: Presumption of good faith: “Good acquired, until the contrary is proved.’’ (Art. 529). possessed?
*** Well-established is the rule in ejectment cases
that the only issue to be resolved therein is who is faith is always presumed, and upon him who alleges
entitled to the physical or material possession of bad faith on the part of a possessor rests the burden 2. NON-INTERRUPTION OF POSSESSION — 1. Property of public dominion;
the premises, or possession de facto, independent of proof” (ART 527) “The pos- session of hereditary property is
of any claim of ownership that either party may set deemed transmitted to the heir without 2. res communes;
forth in their pleadings. If petitioner can prove prior WHEN can possession in good faith be converted to interruption, and from the moment of the death of
possession in himself, he may recover such bad faith? - from the moment facts exist showing the the decedent, in case the inheritance is accepted. 3. Easements;
possession even from the owner himself. Whatever possessor’s knowledge of the the flaw ( ART 528) One who validly renounces an inheritance is
4. res nullius (abandoned or ownerless property) - Requirements for Possession 1. if heir accepts - the possession of the deceased right. Although it is mandated that each co-owner
can be possessed but cannot be acquired by should be added to the possession of the heir shall have the full ownership of his part and of the
prescription (a) the corpus (or the thing physically detained). (Example: Father died on June 1, 2003. Son fruits and benefits pertaining thereto, and thus may
(b) the animus or intent to possess (whether accepted the inheritance on June 25, 2003. alien- ate, assign or mortgage it, and even substitute
HOW IS POSSESSION ACQUIRED? evidenced expressly or impliedly). Possession is deemed transmitted not on June another person in its enjoyment, the effect of the
25 but on June 1, 2003.) alienation or the mortgage, with respect to the co-
owners, shall be limited to the portion which may be
ART. 531 How? ART 532. POSSESSION CAN BE ACQUIRED BY allotted to him in the division upon the termination of
WHO? Case: A died. B immediately occupied and
possessed the property left by A. C now alleges that the co-ownership. In other words, the law does not
(a) By material occupation (detention) of a thing or he is the heir of A, and that he (C) therefore, is prohibit a co-owner from selling, alienating or
the ex- ercise of a right (quasi-possession). (This also 1. Personal - must be with (a) intent to possess; (b) entitled to get pos- session of the property. What mortgaging his ideal share in the property held in
includes constitutum possessorium or traditio brevi capacity to possess; (c) object - capable of being should C do? common. (Acebedo v. Hon. Abesamis, 1993)
manu.) possessed HELD: C must prove the ownership over the property
by A, his alleged predecessor-in-interest; otherwise Caveat: Art. 534. One who succeeds by hereditary
(b) By subjection to our will (this includes traditio 2. Through authorized person - must be with (a) B, the present possessor, has in his favor the legal title shall not suffer the consequences of the
longa manu — by mere agreement; or by the delivery intent to possess for principal; (b) authority or presumption that he (B) holds possession by reason wrongful possession of the decedent (if decedent
of keys — traditio simbolica) (clearly, this does not capacity to possess; (c) principal has intent and of a sufficient title, and he cannot be forced to show is in bad faith)…
require actual physical detention or seizure). capacity to possess it. If C can prove A’s right, he will be considered
owner and possessor from the time of A’s death. if it is not shown that he was aware of the flaws
(c) By constructive possession or proper acts and (See Bondad v. Bondad, 34 Phil. 232; Cruz v. Cruz, affecting it; but the effects of possession in good faith
legal formalities (such as succession, donation,
3. through unauthorized person - must be with (a) 37 O.G. 209).
intent to possess for another; (b) capacity of shall not benefit him except from the date of death of
execution of public instruments; or thru the principal to possess; (c) ratification of principal the decedent.
possession by a sheriff by virtue of a court order.) 2. if her refused - he is deemed never to have
(See Muyco v. Montilla, 7 Phil. 498). - e.g. deed of possessed the same Example: Father possessed in bad faith, X’s land for
sale 3 years, after which the property was presumably
Art. 2144. Whoever voluntarily takes charge of PROBLEM: A, B, and C inherited in equal parts a inherited by M, the father’s son. M was in good faith.
* Note: in the absence of stipulation of the parties that the agency or management of the business or piece of land from their father. Before partition A sold For how many years more, from the father’s death,
the ownership of a thing sold shall not pass to the property of another without any power from the his share to X. The next day, B repudiated the should M possess the land in order to become its
purchaser until he has fully paid the stipulated price, latter, is obliged to continue the same until the inheritance. Upon partition, what share of the land is owner?
the execution of the sale through a public instrument termination of the affair and its incidents, or to X entitled to, 1/3 or 1/2?
shall be equivalent to the delivery of the thing (Tan require the person concerned to substitute him, ANS.: For 9 years, since the effects of his possession
if the owner is in a position to do so. This ANS.: Note that A has sold HIS share to X. Now then, in good faith should begin only from the decedent’s
juridical relation does not arise in either of these at the time of sale, A’s share was apparently 1/3 only, death. [NOTE: Because extraordinary prescription
(1) Constitutum possessorium exists when a instances: (a) When the property or business is but because B had repudiated, it is as if B never requires 30 years, and ordinary prescription requires
person who possessed property as an owner, not neglected or abandoned; (b) If in fact the inherited, hence there were really only two heirs (A 10 years, it follows that 3 years possession in BAD
now possesses it in some other capacity, as manager has been tacitly authorized by the and C). Therefore, A’s share was really one half 1/2) FAITH should be equivalent to 1 year pos- session in
that of lessee or depositary. owner. since the repudiation by B has a retroactive effect. GOOD FAITH. Hence, applying Art. 1138(1), 1 year
Therefore X is entitled to 1/2 (which was REALLY A’s plus 9 years equals 10 years.].
share), at the moment of the father’s death.
(2) Traditio brevi manu — (the opposite of <ratification should be regarded as having
constitutum possessorium) — this exists when retroactive effect> = NEGOTIORUM GESTIO Follow-up question: In the example given above, if X
a person who possessed property not as an Q: CAN AN HEIR DISPOSE DECEDENT’S within 4 years brings an action to recover the
owner (like a lessee), now possesses it as PROPERTY EVEN IF THE SAME IS UNDER property and its fruits, should X’s action prosper?
POSSESSION “The possession of hereditary
property is deemed transmitted to the heir without ANS.: Regarding the land — yes, because M has not
(3) Traditio longa manu (delivery by the long interruption and from the moment of the death of the A:Yes. the possession of hereditary property is yet become the owner. Regarding the fruits —
hand) — delivery by consent or mere pointing. decedent, in case the inheritance is accepted. One deemed transmitted to the heir without interruption
and from the moment of the death of the decedent, in
who validly renounces an inheritance is deemed
case the inheritance is accepted. Where there are (a) M does not have to reimburse the value of
never to have possessed the same (exn).” — the fruits for the 4-year period he was in
applicable only if the decedent is in good faith. however, two or more heirs, the whole estate of the
book diok v. Aparri Farmer’s Cooperative decedent is, before its partition, owned in common by possession, since he is a pos- sessor in good
Association, Inc.) such heirs. The Civil Code (Art. 493) under the faith.
Rules: provision on co-owner- ship, further qualifies this
(b) But, if M obtained any cash or benefit from the unlawful de- tainer case against him should be as in the case of property owned or presents the oldest title, provided that the title had
fruits harvested by his father, said value must be counted not from the begin- ning of the possession, possessed in common) been acquired in good faith.
returned (mi- nus necessary expenses for but from the time the latest demand to vacate is
cultivation, gathering, and harvesting) because made, unless in the meantime an accion publiciana is (b) possession in different concepts or different EFFECTS OF POSSESSION
the father was in bad faith, and the effects of M’s instituted. (Calubayan v. Pascual, L-22645, Sep. 18, degrees
good faith, it must be remembered, should only 1967). (Example: Both owner and tenant are
commence from the father’s death. ART. 540 What kind of possession can serve as a
possessors as a fact at the same time; the title for acquiring dominion? POSSESSION IN THE
3. thru clandestine, secret possession (or possession first, in the concept of owner; the second, CONCEPT OF OWNER :)
ARE MINORS and INCAPACITATED PERSONS without knowledge — for this would be possession by in the concept of holder; other examples:
ALLOWED TO ACQUIRE POSSESSION OF stealth, and not open or public. (See Art. 537). principal and agent; depositor and
THINGS? Yes, “Minors and incapacitated persons depositary; owner and administrator.) Q: are real tax declarations conclusive evidences of
may acquire the possession of things; but they need possession?
*If it is secret to many, but known to the owner, his
the assistance of their legal representatives in order possession is affected.
to exercise the rights which from the possession arise Rules or Criteria to be Used in Case of Conflict or A: Although payment of land taxes is not evidence of
in their favor.” (ART 535) Dispute Regarding Possession (Preference own- ership and although a mere tax declaration or a
Meaning of “Acts ... do not affect possession” tax assessment does not by itself give the title, and is
(Art. 537) of Possession)
POSSESSION CANNOT BE ACQUIRED THROUGH of little value in proving one’s ownership, STILL
THE FOLLOWING: payment of the land tax is one of the most persuasive
(a) The intruder does not acquire any right to (a) present possessor shall be preferred and positive indicia, which shows the will of a person
possession (NO LEGAL POSSESSION). to possess in concepto de dueno or with claim of
1. thru FORCE or INTIMIDATION (as long as there (b) The legal possessor, even if physically ousted, is ownership. And therefore, prescription may
is a possessor who objects thereto). (Impliedly, if still the possessor and therefore — (b) if both are present, the one longer in possession eventually be had, provided that the other requisites
at first there was objection but later on such for prescription are present. (Tupaz v. Ricamora, 37
objection ceases, the pos- session begun by O.G. 58). Otherwise put, while tax declarations and
force or intimidation may be acquired. Objection 1) still entitled to the benefits of
prescription; (c) if both began to possess at the same time, the receipts are NOT conclusive evidence of ownership,
may be made by suit of forcible entry within a yet, when coupled with proof of actual possession,
year from the dispossession, otherwise, the one who present (or has) a title
tax declarations and receipts are strong evidence of
possession de facto is lost.) (ART 536) 2) still entitled to the fruits; ownership. (Gesmundo v. CA)
(d) if both present a title, the Court will
2. thru mere TOLERANCE (permission). (Example: If 3) still entitled as possessor for all determine.(Mean- time, the thing shall be
judicially deposited.) >> “In case of two ART. 541 another presumption: A possessor in the
I willingly permit X to occupy my land, that is not purposes favorable to his concept of owner has in his favor the legal
really his possession, for the possession continues to possession. (See Ayala de certificates of title, the earlier shall be
preferred” (Legarda v. Saleeby) presumption that he possesses with a just title
be mine.) Mere inaction or mere failure to bring an Roxas v. Maglonso, 8 Phil. 745; and he cannot be obliged to show or prove it.
action is NOT the tolerance referred to in the law.) 4 Manresa 201-202). (one must be in possession, whether actual or
(ART 537) Preference of Ownership: constructive)
(c) The intruder cannot acquire the property by
CASE: A owned a parcel of land, which was occupied prescrip- tion. (See Ayala de Roxas v. Art. 1544 applies to preference of OWNERSHIP in
Maglonso, supra; Cuaycong v. Benedicto, case of DOUBLE SALE (Art. 1544) or a DOUBLE
- the just title referred in this article is that of a true
by B and C. A tolerated their presence, and did not
compel them to pay rentals. In 1901, a land tax was 37 Phil. 781). DONATION. (Art. 744). and valid title where there was a mode of
imposed, and A asked them to pay rentals. They transferring ownership and the grantor was the
promised to do so, and recognized A’s ownership owner; a title which by itself is sufficient to transfer
ART. 538 (note: Art. 1544 on Double Sales) (a) MOVABLE property —
over the land, but did not really pay said rent- als. ownership without the necessity of letting the
After a period of years, B and C now claim that they prescriptive period elapse. (Doliendo v. Biarnesa)
General Rule Regarding Possession as a Fact Preference in ownership is given to the person who
have acquired said land by prescription. Are they
first possessed it in good faith. (Art. 1544, par. 1).
right? ART. 542 - another presumption: The possession of
Possession as a fact cannot be recognized at the real property presumes that of the movables
same time in two different personalities. (only one will (b) IMMOVABLE property — therein, so long as it is not shown or proved that
HELD: No, since their stay was merely by tolerance,
be recognized…) Preference in ownership is given… 1) to the first who they should be excluded.
and having recognized ownership in another, they
registered his right in good faith in the Registry of
cannot now claim that their possession was adverse.
Exceptions to General Rule: Property; 2) if there was no registration, to the
(de Roxas v. Maglonso, 8 Phil 745) ART 543. Each one of the participants of a thing
person who first possessed in good faith;
possessed in common shall be deemed to have
3) if there was no possession, to the person who
*A squatter’s possession, when there is no violence, (a) co-possessors (since here, there is no conflict of exclusively possessed the part which may be
is by mere tolerance. The one-year period for filing an interest, both of them acting as co-owners, allotted to him upon the division thereof, for the
entire period during which the co-possession that the net harvest shall be divided in proportion to . (a) If in good faith — entitled to: by an ordinary repair does not defeat the
lasted. the time of possession. right of removal.
. 1) refund
Example: A and B have been co-possessors of a In the example given, B (the owner), if he so desires *Note: Right of Removal is always subordinate to
piece of land in Greenhills since 2002. If in 2006, has an option — . 2) retain premises till paid the exercise of the option of the real owner
there is a partition, A is deemed to have possessed wanting to reimburse the useful expenses.
exclusively the portion given him, not since 2002, but . 1) to get the right already
since 2006. (This is useful in case of acquisition by Note: If the owner sues the possessor
discussed. (Art. 545, par. 1), or for the recovery of the property, 2. If in BAD FAITH - not entitled to any right re:
prescription.) useful expenses (he is only entitled to
the possessor in good faith - also
applies to possessor in bad faith reimbursement re: luxurious expenses
ART 544. A possessor in good faith is entitled to . 2) to allow A (the possessor in (who is thus entitled to a refund) <ART 549>)
the fruits received BEFORE the possession is good faith) to FINISH the must file a counterclaim for the
legally interrupted. (General Rule) cultivation and gathering of the refund of necessary and useful CASE: X possessed in bad faith Y’s land. Y then
growing crops, as an expenses, otherwise the brought an action to eject X. Although X had incurred
“Although because of the interruption, his good faith INDEMNITY for his part of the judgment in the case for some necessary and useful expenses on the land, X
ceases, the possessor can still retain the property expenses of cultivation and the possession will be a BAR to a did not set up these as a counterclaim in the
(ART 546) until he has been fully reimbursed for all net proceeds. (If A refuses for subsequent suit brought solely ejectment proceedings. Y won the case. Later X
the necessary and useful expenses made by him on ANY REASON to accept this for the recovery of such sought to recover in another action said necessary
the property.” (Ortiz v. Kayanan, 1979) concession, A loses the right to expenses. (Beltran v. Valbuena) and useful expenses. Will the recovery prosper?
be indemnified IN ANY OTHER
Natural and industrial fruits are considered MAN- NER). (B is given this . (b) If in bad faith — entitled ONLY to a HELD: The recovery cannot prosper:
received from the time they are gathered or option because he may not be refund (no right of RETENTION, as
severed. interested in the pending fruits at penalty). (Dir. of Lands v. Abagat, 53 Phil.
all, or because he realizes that to . 1) since, regarding, the useful expenses, X
147). is a posses- sor in bad faith, and is
continue the cultivation might
. If at the time of legal interruption, the crops result in a financial LOSS for therefore not entitled to any refund;
are still growing, the rule on pending crops, him.) (The refusal causes LOSS
not that on gathered crops, should apply. ( of indemnity even if the fruits be 2. Useful expenses - those that add value to the . 2) and since, regarding the necessary
Art. 545). LESS than the expenses.) property or increase the object’s productivity or expenses, the failure to present a
useful for the satisfaction of spiritual and religious counterclaim therefor in the ejectment
. If at the time of legal interruption, the crops yearnings. proceedings, now constitutes a bar to their
*Note that Art. 545 applies only to a possessor in
have already been gathered, but are sold GOOD faith for a possessor in bad faith has no right recovery. (Beltran v. Valbuena)
only after such interruption, the sale is whatsoever to fruits already gathered nor to fruits still Respective rights to useful expenses:
immaterial, for the law requires only a pending, except that in the former case (gathered ART. 548 WHAT SHALL NOT BE
gathering or severance, so Art. 544 fruits), he gets back the necessary expenses for 1. If in GOOD FAITH: REFUNDED?Expenses for pure luxury or
applies. production, gathering, and preservation of fruits. (Art. mere pleasure
443) 1) right to REIMBURSEMENT (of either the
Civil fruits are deemed to accrue daily and belong amount spent or the increase in value — “plus value” Respective Rights:
to the possessor in good faith in that proportion. ART. 546 WHAT SHALL BE REFUNDED? — at OWNER’S OPTION). (Art. 546).
(a) If in GOOD faith: In general, no right of refund or
ART 545. only applies to pending fruits 1. necessary expenses - those without which the 2) right of RETENTION (till paid). (Art. 546). retention but can remove if no substantial injury is
thing would physically deteriorate or be lost; caused. However, owner has OPTION to allow:
Example: A possessed in good faith a parcel of land. hence, those made for the preservation of the 3) right of REMOVAL (provided no substantial
At the time he received judicial summons to answer a thing; damage or injury is caused to the principal, 1) possessor to remove
complaint filed by B, the crops still growing had been reducing its VALUE) — UNLESS the
there for 2 months. Harvest was made only after 4 winner (owner or lawful possessor)
more months (For his crop needed a total of 6
- cf: 592 - such as those required by the wear and 2) or retain for himself (the owner) the ornament
exercises the option in (1). (Art. 547). by REFUNDING the AMOUNT SPENT.
months from planting to harvesting). How should said tear due to the natural use of the thing, and are
crops be divided between A and B? indispensable for its preservation (Art. 548).
“Damage” - substantial one that reduces the value
of the property, thus a slight injury curable
ANS.: In the proportion of 2 to 4 (or 1 to 2), 2 for A Respective rights to Necessary Expenses:
and 4 for B. This is what the law means when it says
(b) In BAD faith: In general, no right of refund or and charges). (See Art. 545). 2) final judgment in favor of another (with a better Summary of Recovery or Non-Recovery Principle
retention but can remove if no substantial injury is right).
caused. However, owner has OPTION to allow: (a) Owner MAY RECOVER WITHOUT
(b) If in BAD faith: 3) expropriation REIMBURSEMENT:
1) possessor to remove
1) gathered fruits — must return value of 4) prescription in favor of another. 1) from possessor in bad faith.
2) or retain for himself (the owner) the ornament fruits already received as well as value of fruits which
by REFUNDING the VALUE it has at the the owner or legitimate possessor (not the possessor 5) recovery or reivindication by the legitimate owner 2) from possessor in good faith (if owner had LOST
TIME owner ENTERS INTO in bad faith) could HAVE received with due care or or possessor. (See 2 Castan 48). the property or been unlawfully
POSSESSION. (Art. 549). diligence, MINUS necessary expenses for cultivation, deprived of it) (the ac- quisition
gather- ing, and harvesting, to prevent the owner being from a private person).
Example: I possessed land in good faith, and from being unjustly enriched. (See Arts. 549, 443; (Art. 559).
Dir. of Lands v. Abagat, 53 Phil. 147). (c) Because of the Object
introduced thereon ornamental expenses
which cannot be removed without sub- (b) Owner MAY RECOVER but should
stantial injury. The owner does not want to 2) pending or ungathered fruits — no rights 1) destruction or total loss of the thing. (Art. 555).
refund me any amount for said ornaments. at all, not even to expenses for cultivation because by
May I remove them? accession, all should belong to the owner, without 2) going out of commerce. (Art. 555).
indemnity. (See Art. 449). 1) if possessor acquired the object in good faith at a
PUBLIC SALE or AUCTION. (Art. 559). [Because the
ANS.: No, because in here, there would be 3) escaping from possessor’s control of wild animals. publicity attendant to a public sale should have been
substantial injury. ART. 552 WHO IS LIABLE FOR LOSS OR (Art. 560). sufficient warning for the owner to come for- ward
DETERIORATION OF A THING? and claim the property. (Manresa).].
1. Possessor in good faith if he has acted with (c) Owner CANNOT RECOVER, even if he offers to
REQUISITES OF ABANDONMENT: fraudulent intent or negligence, after the judicial Possession of movable property acquired REMBURSE (whether or not the owner had lost or
1. the abandoner must have been a summons; been unlawfully deprived):
possessor in the concept of an owner;
. (a) in BAD FAITH — is never equivalent to
2. must have the capacity to renounce or 2. Possessor in bad faith - in all cases including title 1) if possessor had acquired it in good faith by
alienate; fortuitous events purchase from a merchant’s store, or in
3. Must be a physical relinquishment of the
. (b) in GOOD FAITH — fairs, or markets in accordance with the
ART. 555 WHEN CAN A POSSESSOR LOSE HIS Code of Commerce and special laws. (Art.
4. Must have no more expectation to recover
POSSESSION? 1505, Civil Code, see also Arts. 85, 86,
(spes recuperandi) or intent to return or get . 1) D is equivalent to a title — as
Code of Commerce).
back (animus revertendi) a general rule. (Hence, the
(a) Thru the Possessor’s Voluntary Will and Intent owner, if he wants to get it back,
must REIMBURSE). 2) if owner “is by his conduct precluded from
ART 549. WHAT ARE THE RIGHTS OF THE 1) Abandonment. (Art. 555) - is the voluntary denying the seller’s authority to sell.”
POSSESSOR IN BAD FAITH? renunciation of the thing. (ESTOPPEL). (Art. 1505).
2) is NOT equivalent to title (as the
Right of the Possessor (in the Concept of Owner) exception to the rule) when the
Regard- ing FRUITS owner had LOST it or had been 3) if possessor had obtained the goods because
UN- LAWFULLY DEPRIVED of it he was an innocent purchaser for value
2) Assignment (onerous or gratuitous conveyance). and holder of a NEGOTIABLE document of
(a) If in GOOD faith: (Art. 555). - complete transmission of ownership (as when it has been stolen),
UNLESS the possessor had title to the goods. (See Art. 1518).
rights to another person
acquired it in good faith at a
1) Gathered or severed or harvested
“public sale” (an auction sale, CASE: A asked B to sell jewelry. B instead of sell-
fruits are his own. (Art. 544; see (b) Against the Possessor’s Will where the public had properly ing, borrowed money from a pawnshop,
also Nacoco v. Geronimo, L-
been notified). (See U.S. v. and as security, pledged the jewelry. After
2899, Apr. 29, 1949).
1) possession of another for more than one year. Soriano) = hence, the owner B was convicted of ESTAFA, A asked the
(Art. 555). - loses possession de facto; hence, he can must reimburse the possessor pawnshop for the jewels, but the pawnshop
2) pending or ungathered fruits — (pro- no longer bring an action for forcible entry nor who acquired the thing in good refused to give them up unless A first pay
rating between possessor and unlawful detainer, since the prescriptive period for faith at a public sale. the amount lent by the pawnshop to B.
owner of expenses, net harvest, such actions is one year.
HELD: A can get the jewels without giving to the RIGHTS available to the Usufructuary: . 2) no necessity of refunding owner for consideration of his person; acquired
pawnshop the money borrowed by B expenses in- curred, (for the owner gave through caution juratoria (587)
because in the first place, the pledge was 1. action to protect the usufruct itself; the usufruct evidently without any thought
not valid (not having been done by the of being reimbursed for the pending fruits, ART. 583
owner or his duly authorized agent); in the or because the value of said fruits must
second place, there is no contractual 2. Action to protect the exercise of the usufruct already have been taken into consideration
relation between A and the pawnshop; in in fixing the terms and conditions of the When Security Is Not Required:
the third place, A had been illegally basis usufruct Lease usufruct, if for instance, the usufruct came
deprived of the jewels; and finally it would about because of a contract); 1) When no one will be injured thereby (NO
be unjust and unfair to the owner (A) PREJU- DICE). (See Art. 585). Example: in
considering the fact that ordinarily, most as to extent covers all covers a the usufruct over a periodical income or life
. 3) BUT without prejudice to the right of
pawnshops do not require their customers fruits and particular annuity. Provided naked owner consents
third persons. (Thus, if the fruits had been
to first prove their ownership of the objects uses use
planted by a possessor in good faith, the for the law says “may.” (Art. 585).
being pledged. (Arenas v. Raymundo, 19 pending crop expenses and charges shall
Phil 47). as to nature real right real right be pro-rated between said possessor and 2) When there is waiver by the naked owner (See
of the right only if the the usufructuary). (See Art. 545). (See also 4 Manresa 464-465), or there is a
——————————————————————— least covers 4 Manresa 392). stipulation either in a will or by contract.
a real
3) When the usufructuary is the donor of the
USUFRUCT - is the right to enjoy the property and
(b) Fruits pending at the TERMINATION of usufruct: property (who has reserved the usufruct).
of another with the obligation of preserving registered
(The naked owner should be grateful
its form and substance (562) or the term
. 1) Belong to the OWNER; enough not to require the secu- rity). (Art.
is more
Fundamental rights: than 1 year
. 2) BUT the owner must reimburse the
usufructuary for ordinary cultivation 4) When there is a parental usufruct (that is, in
1. right to dispose (naked ownership); creation by the the lessor the case of parents who are usufructuaries
expenses and for the seeds and similar
owner or may be or of their chil- dren’s property, except when
expenses, from the proceeds of the fruits.
2. right to use; his agent may not be the parents contract a second or
(Hence, the excess of expenses over the
the owner subsequent marriage, PROVIDED that
proceeds need not be reimbursed.)
(in cases of each child’s property does not exceed
3. right to the fruits (the combination of #2 and #3
sublease) P50,000 in which case, the parents have to
is called the usufruct) . 3) Also, rights of innocent third parties file a bond (See Art. 225, the Family Code)
should not be prejudiced. (See No. [3] of not as usufructuary, but as guardian or
Characteristics of a usufruct: as to duty to no duty at [a], supra; also Arts. 545 and 567).
repairs make all administrator.
I. Essential characteristics: repairs 5) When there is a caucion juratoria, which takes
CAN A USUFRUCTUARY ALIENATE HIS RIGHT? the place of a bond, and is made by taking
1. real right; 3. YES. (art. 572) an oath to fulfill properly the duties of a
usufructuary, BUT this is available only
2. Temporary nature; * dividends - are income or civil fruits and should However… under the conditions prescribed in Art. 587
belong to the usufructuary and not to the (promise under oath).
remainder man (naked owner) - Orozco 1. all the contracts he may enter into as such
3. purpose is to enjoy the benefits as a
v. Araneta usufructuary shall terminate upon the ART. 586 WHAT IS THE EFFECT OF FAILURE TO
consequence of normal use or exploitation
expiration of the usufruct, saving leases GIVE SECURITY?
ART. 567 WHO OWNS THE FRUITS? of rural lands, which shall be
II. Natural Characteristics - ordinarily present but a considered as subsisting during the
contrary stipulation may eliminate it On the Rights of the Naked Owner:
agricultural year. (572)
(a) Fruits pending at the BEGINNING of usufruct:
1. The obligation of conserving or preserving the . 1) He may deliver the property to the
2. except legal usufruct - the usufruct which parents usufructuary (since the article gives the
form and substance of the thing . 1) belong to the usufructuary;
had over the properties of their owner a right, and not a duty) (but even if
unemancipated children; usfruct delivery is made, the naked owner may still
granted a usufructuary in favor in
later on demand the needed security). (TS, Requisites Before the Caucion Juratoria Is . (6) By the termination of the right of the
Mar. 12, 1903). Allowed person con-

. 2) OR the naked owner may choose . (a) proper court petition

RETENTION of the property as stituting the usufruct;
ADMINISTRATOR (here the usuf- ructuary . (b) necessity for delivery of furniture,
gets the net proceeds, minus implements or house included in the (7) By prescription.
administration expenses, the amount of usufruct
which is fixed by mutual agreement or by
the courts).
. (c) approval of the court
. 3) OR the naked owner may demand
RECEIVERSHIP or ADMINISTRATION (by . (d) sworn promise.
another) of the REAL PROPERTY, sale of
movable, conversion or deposit of credit
instruments, or investment of cash or WHAT IS THE DUTY OF THE USUFRUCTUARY?
1. required to make ordinary repairs (592)
(b) On the Rights of the Usufructuary:
2. inform the owner of the need to make
. 1) The usufructuary cannot possess the extraordinary repairs (594)
property till he
gives the security. 3. replace, as the case may be, with young the
animals subject to the usufruct (591)
. 2) The usufructuary cannot administer the
property, hence, he cannot execute a lease 4. Pay the annual charges and taxes - lien on the
thereon. (4 Manresa 471-472). fruits (596)

. 3) The usufructuary cannot collect credits

that have matured, nor invest them unless
the Court or the naked owner consents.
(Art. 599).
[NOTE: This No. (3) applies also even if
the usufructuary is EXEMPTED from giving Usufruct is extinguished:
security. (Art. 599).].
(1) By the death of the usufructuary, unless a
. 4) But the usufructuary can alienate his contrary intention clearly appears;
right to the usufruct (since failure to give
the security did not extinguish the (2) By the expiration of the period for which it was
usufruct). The grantee may of course constituted, or by the fulfillment of any resolutory
possess, the moment he gives security. condition provided in the title creating the usufruct;
(See 4 Man- resa 471-472; see also Art.
603). (3) By merger of the usufruct and ownership in the
same person;
duty to take good care of the property and . (4) By renunciation of the usufructuary;
return same at the end of the usufruct. It
takes the place of the bond or security and
is based on necessity and humanity
. (5) By the total loss of the thing in usufruct;