MODES OF ACQUIRING OWNERSHIP

 Ownership may be acquired by (Art 712):

A. Original
1. Occupation
2. Intellectual Creation
B. Derivative
3. Law
4. Donation
5. Succession
6. Tradition
7. Prescription

 OCCUPATION
 Things appropriable by nature may be acquired by occupation (Art 713), such as:
1. Animals that are the object of hunting and fishing :
a. Right to hunt and to fish (Art 715) – regulated by special laws
b. Swarm of Bees (Art 716)
 Owner shall have a right to pursue them to another’s land, indemnifying possessor of
such land for damages
 If the owner does not pursue or ceases to do so, the possessor of the land may retain
the same
c. Domesticated Animals (Art 716)
 Owner may claim them within 20 days from occupation by another person
 After expiration, they shall pertain to the one who caught and kept them
d. Pigeons and Fish (Art 717)
 Pigeons and fish which pass from their breeding place to another place owned by
another shall belong to the latter, provided they were not enticed by fraud

2. Hidden Treasure
 One who discovers a hidden treasure by chance in another’s property (Art 718) –
governed by Art 438, to wit:
o Hidden treasure belongs the owner of the land, building or property where it is
found
o Finder, who is not a trespasser shall be given ½ thereof; trespasser shall not be
entitled
o If treasure found to be of interest to science or the arts, the State may acquire
them at their just price to be divided based on provisions of law

3. Abandoned Movables (Art 719 – 720)

 Whoever finds a movable which is not a treasurer must return it to its previous possessor
 However, if possessor is unknown, the following shall be done:
o Deposit such with the mayor of the city or municipality where found
o Finding shall be publicly announced for 2 consecutive weeks
o If movable cannot be kept without deterioration or expenses, it shall be sold at public
auction 8 days after publication
o If owner appears, he shall be obliged to reimburse expenses and one-tenth (1/10) of
the price of the thing found
o If no owner/possessor appears six months after publication, it shall be awarded
to the finder with reimbursement of expenses

 Land cannot be acquired by occupation (Art 714)

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 INTELLECTUAL CREATION
 The following acquire by intellectual creation (Art 721):
1. Author
 With regard to his literary, dramatic, historical, legal, philosophical, scientific or other work
 Shall have ownership even before publications; after publishing, rights are governed by
Copyright Laws (Art 722)
2. Composer
 As to musical composition
 Shall have ownership even before publications; after publishing, rights are governed by
Copyright Laws (Art 722)
3. Painter, sculptor or other artist
 With respect to product of his art
 Shall have dominion over their art even before being copyrighted (Art 722)
4. Scientist or technologist or any other person
 With regard to discovery or invention
 Has ownership of discovery and invention before it is patented (Art 722)

 Letters and other private communications (Art 723)

 Owned by the person to whom they were addressed and delivered
 Cannot be published or disseminated without consent of the writer or his heirs
 Court may authorize publication or dissemination if public good or interest so requires

 Copyright and Patent (Art 724) – governed by special laws

 PRESCRIPTION
 Definition (Art 1106)
1. Acquisitive Prescription – where one acquires ownership and other real rights through the
lapse of time
2. Extinctive Prescription – where rights and conditions are lost through the lapse of time
 Persons who may acquire by prescription
1. Those capable of acquiring property and rights by other modes (Art 1107)
2. Minors and incapacitated persons, either personally or through parents, guardians and
representatives (Art 1107)
3. Creditors and other interested persons (Art 1114) – may make the prescription effective
notwithstanding the renunciation of the debtor or proprietor
 Object of Prescription (Art 1113) :
1. All things within the commerce of men, unless provided otherwise
2. Property of the State or any of its subdivisions not patrimonial in character shall not be the
object of prescription.
 Prescription runs against (Art 1108) :
a. Minors and incapacitated persons who have parents guardians and legal representatives
b. Absentees who have administrators either appointed by them or appointed by courts
c. Persons living abroad, who have managers or administrators
d. Juridical persons, except the State and its subdivisions
 Persons who are disqualified from administering their property may claim damages from their
legal representatives whose negligence caused the prescription (Art 1108)
 Prescription runs against or in favor of a married woman (Art 1110)
 Prescription does not run against :
1. Husband and wife, even if there be a separation of property by marriage settlements or by
judicial decree (Art 1109)
2. Parents and children, during the minority or insanity of the latter (Art 1109)
3. Guardian and ward during the continuance of the partnership (Art 1109)
 Prescription obtained by a co-proprietor or co-owner shall benefit the others (Art 1111)

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 Renunciation of the right to prescribe
1. Persons with capacity to alienate property may renounce (Art 1112)
2. Prescription already obtained may be renounced, but not the right to prescribe in the
future (Art 1112)
3. Tacit renunciation (Art 1112) – deemed when such results from acts which imply the
abandonment of such
4. Creditors and other interested persons may make the prescription effective
notwithstanding the renunciation of the debtor or proprietor (Art 1114)
 Governing Laws
1. Provisions herein is without prejudice to the other provisions and in the special laws with
respect to specific cases of prescription (Art 1115)
2. Prescription already running before effectivity of this Code shall be governed by laws
previously in force; however, if since effectivity of this Code, the entire period required for
prescription should elapse, the present code is applicable, even though the former law
requires a longer period (Art 1116)

 PRESCRIPTION OF OWNERSHIP AND OTHER REAL RIGHTS (Acquisitive

Prescription)
1. Kinds of Prescription (Art 1117) :
a. Ordinary –
 Requires possession of things in good faith and with just title
o Good Faith
 Consists in the reasonable belief that the person from whom he received the
thing was the owner and could transmit ownership (Art 1127)
 Requires possession in Art 526, 527, 528 and 529
o Just Title
 Exists when the adverse claimant came into possession of the property
through one of the modes recognized by law, but the grantor was not the
owner or could not transmit any right (Art 1129)
 Such title must be true and valid (At 1130)
 Just title must be proved, it is never presumed (Art 1131)
 Possession has to be in concept of an owner, public, peaceful and uninterrupted (Art
1118)
 Possession in virtue of license or by mere tolerance of the owner shall not be a
available for the purpose of possession (Art 1119)
b. Extraordinary

2. Interruption of Possession (Art 1120)

a. Natural Interruption (Art 1121)
 When such should cease for more than one year
 The old possession shall not revive if new possession by the same adverse claimant
 If natural interruption if for one year or less, such shall be counted in favor of the
prescription (Art 1122)
b. Civil Interruption
 Produced by judicial summons (Art 1123)
 The following judicial summons does not interrupt possession (Art 1124), where :
o It is void for lack of legal solemnities
o The plaintiff should desist from the complaint or should allow the proceedings to
lapse
o The possessor be absolved from the complaint
***In these cases, interruption shall be counted for the prescription

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 c. Express or tacit recognition by the possessor of the owner’s rights also interrupts
possession (Art 1125)
d. Possession in war time, when civil courts are not open, shall not be counted in favor of
the adverse claimant (Art 1136)

3. Prescription cannot take place:

a. Where a title is recorded in the Registry of Property and to the prejudice of a third person,
except in virtue of another title also recorded, the time shall begin to run from the
recording of the latter (Art 1126)
b. By an offender when movables are possessed through a crime (Art 1133)

4. Table of Acquisitive Prescription through Uninterrupted Possession

Codal Provision Property Prescriptive Period
4 years uninterrupted possession
in good faith (ordinary
prescription)
Art 1132 Ownership of Movables 8 years of uninterrupted
possession without need of any
other condition (extraordinary
prescription)
Art 1134 10 years (ordinary prescription)
Ownership and Real rights over 30 years of uninterrupted adverse
immovable property possession, without need of title
Art 1137
or good faith (extraordinary
prescription)

5. As to right to recover personal property lost/illegally deprived or acquired in a public sale, fair
or market or from a merchant’s store (Art 1132) – apply Art 559 and 1505.

6. Where adverse claimant possesses by mistake an area greater or less that expressed in his
title, prescription shall be based on the possession (Art 1135)

7. Rules for computation of time necessary for prescription (Art 1138)

a. The present possessor may complete the period necessary for prescription by tacking
his possession to that of his grantor or predecessor in interest;
b. It is presumed that the present possessor who was also the possessor at a previous time
has continued to be in possession during the intervening time, unless there is proof to the
contrary;
c. The first day shall be excluded and the last day included.

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 PRESCRIPTION OF ACTIONS (Extinctive Prescription)
1. Actions prescribe by mere lapse of time fixed by law (Art 1139)

2. Table of Prescription of Actions

Codal
Actions subject of Prescription Prescription Period
Provision
Recover movables 8 years from the time possession
Art 1140
is lost
Art 1141 Real actions over immovables 30 years
Art 1142 Mortgage action 10 years
Easements:
1. To demand a right of way
Art 1143 No prescriptive period
2. To bring action to abate a public or
private nuisance
1. Upon written contract
10 years from time the right of
Art 1144 2. Upon an obligation created by law
action accrues
3. Upon a judgment
1. Upon an oral contract
Art 1145 6 years
2. Upon a quasi-contract
1. Upon an injury to the rights of the
Art 1146 plaintiff 4 years
2. Upon a quasi-delict
1. Forcible entry and detainer;
Art 1147 1 year
2. For defamation
5 years from the time the right of
Art 1149 All other actions
action accrues

3. When prescription accrues :

 General Rule : From the day they may be brought (Art 1150)
 Exception :
o Where there is a special provision of law which provides otherwise (Art 1150)
o Other exceptions
Codal
Action When Prescription Accrues
Provision
Enforcement of obligation to pay From the last payment of annuity
Art 1151
principal with interest or annuity or of the interest
Fulfilment of obligation declared by From the time the judgment
Art 1152
a judgment became final
From the day the persons who
Demand accounting should render the same cease in
their functions
Art 1153
From the date when said result
Action arising from the result of the
was recognized by agreement of
accounting
the interested parties

4. Interruption of prescription period occurs where:

a. The obligee was prevented by a fortuitous event from enforcing his right (Art 1154)
b. Actions are filed before the court (Art 1155)
c. There is a written extrajudicial demand by the creditors (Art 1155)
d. There is a written acknowledgment of the debt by the debtor (Art 1155)