DVOR College of Law

PROPERTY LAW
Judge Manasseh S. Bastes
BACA (U.P.), LLB (U.S.C.)
(1st Semester, AY 2018-2019)

Class Rules:

1. Attendance is a must. A total of more than eight (8) class hours shall automatically drop a
student from the roll.

2. Read all assigned laws and jurisprudence. Recitation and quizzes shall constitute 50% of
the grade. The other 50% shall be taken from major examinations.

3. Make-up examinations shall not be allowed, except only in case of medical emergency of
the student. Failure to take the examination, quiz or recitation on the scheduled date or
session shall mean a zero score in that examination, quiz or recitation.

4. All electronic gadgets, books, notes, etc. must be placed below the seat, except writing
pens and blank papers during quizzes and examinations.

5. Case titles with asterisk will be part of the coverage in major examinations. They may or
may not be asked during quizzes and recitations.

COURSE OUTLINE

Constitutional Framework
1987 Consti., Art. II, section 5, 10;
Art. III, sec. 1, 9, 10;
Art. V, sec. 1;
Art. XII, sec. 6;
Art. XIII, sec. 1 et seq.
Universal Declaration of Human Rights (UDHR), Art. 2, 17

Philippine Blooming Mills Employees Organization v. Philippine Blooming Mills Co., Inc. 90 SCRA 189
(1973)

Property Rights in Philippine Law

NCC 414

Ownership, NCC 427-428

Possession, NCC 523
Usufruct, NCC 562

RIGHT-HOLDERS: WHO MAY HAVE/EXERCISE PROPERTY RIGHTS?

1. Natural Persons

Individuals — NCC 37-38; Art. II, sec. 5 UDHR 2, 17

Marital partners — FC 88, 90-93, 105-106, 108, 116
Indigenous peoples communities — RA 8371 (Indigenous Peoples’ Rights Act) 3, 5, 7-8

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Cruz v. Secretary of Environment and Natural Resources, et. al., 347
SCRA 128 (NOTE: compare opinions of Puno, Kapunan,Panganiban)

2. Juridical Persons

In general — NCC 44-47

A) Partnerships — NCC 1767-1768

B) Private Corporations — BP 68 (The Corporation Code), sec. 2, 3, 36, 109
C) Other private juridical entities — Rep. Act 6938 (The Cooperative Code) s. 3, 6, 9
D) Public Corporations

State — NCC 420-22, Art. XII, s. 1-2

Subdivisions of the State — NCC 423-24; LGC 17.b.2.ii; 18-19, 21-22, 89, 447.a.5.1; 458.a.5.1
Government-owned and controlled corporations — The Corporation Code, s. 4, 36

FORMAL CLASSIFICATIONS OF PROPERTY

1. With reference to the holder of the rights; basic kinds of property

A) Public

NCC 419-424
Rep. Act 7160, The Local Government Code (LGC), s. 18, 21-22, 89
Province of Zamboanga v. City of Zamboanga, 22 SCRA 1334
Salas v. Jarencio, 46 SCRA 734
Chavez v. Public Estates Authority, 384 SCRA 152
Cebu Oxygen v. Bercilles, 66 SCRA 481

B) Private

NCC 419, 424-425

The Indigenous Peoples’ Rights Act, s. 3, 5, 7, 8
LGC 17.b.2.ii, 447.a.5.i, 458.a.5.i

C) Res Nullius

1987 Const., Art. XII

2. With reference to the object: things that may be subject of property rights

A) Corporeal

1) Immovables — NCC 415, 426

Berkenkotter v. Cu Unjieng, 61 Phil 663

Philippine Refining Co. v. Jarque, 61 Phil 229
Mindanao Bus Co. v. City Assessor, 6 SCRA 197
Davao Sawmill v. Castillo, 61 SCRA 709
Prudential Bank v. Panis, 153 SCRA 390
Caltex v. Central- Board of Assessment Appeals, 114 SCRA 296
Benguet Corp. v. CBAA, 218 SCRA 271
Tumalad v. Vicencio, 47 SCRA 143
Sergs Products v. PCI Leasing, 338 SCRA 499

2) Movables — NCC 416-418, 426

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U.S. v. Tambunting, 4l Phil 364

B) Non-corporeal

1) Intellectual Property — NCC 721-724

Rep. Act 8293 (Intellectual Property Code), s. 4.1, 22, 112, 172-173, 177

2) Rights & choses in action — NCC 417

POSSESSION
A. In General — NCC 523-561
B. Definition — NCC 523, 525, 530

Who exercises — NCC 524, 532, 535, 538; animus possidendi

Status — NCC 526-529

C. Character & Effects

1) right to be respected in possession — NCC 428, 539

2) right to accessories — NCC 542, 544, 547, 551, 560 cf. 438-439
3) continuity of possession — NCC 554, 561; corpus possession is
4) right to reimbursement — NCC 546, 548-550, 553
5) possession in common — NCC 543
6) basis of title — NCC 541, 559
7) effect on true owner — NCC 558

D. Lease of Urban Lands

1. Definition — NCC 1642-1645

2. Who are qualified/disqualified — NCC 1646, 1490-1491
3. Obligations of parties

a) Lessor — NCC 1654-1656, 1661, 1664, 1678

b) Lessee — NCC 1657-1658, 1662-1663, 1665-1668
4. Payment — NCC 1679
5. Termination — NCC 1659-1660, 1669
6. Renewal — NCC 1670, 1672
7. Unlawful detainer — NCC 1671, 1673-1675, 1677
8. Transfer of lease — NCC 1649, 1676
9. Sub-lease — NCC 1650-1652
10. Warranties — NCC 1547-1548, 1561, 1653, 1666

OWNERSHIP

SOLE OWNERSHIP
a. Definition — NCC 427, 712

b. Rights of owners — NCC 428-430, 435, 437-440

1) Rights of action in rem/ in personam/ quasi in rem

Sandejas v. Robles, 81 Phil 421

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Ching v. Court of Appeals, 181 SCRA 9
Hernandez v. Development Bank of the Philippines, G.R. No. L-31095, June 18, 1976
*Domagas v. Jensen, 448 SCRA 663

2) Specific rights to protection & enforcement

self-help — NCC 429-430

legal action — 428, 433-434, 536
quieting of title, NCC 476-481, 1147

Heirs of Olviga v. Court of Appeals, 227 SCRA 330

*Pingol v. Court of Appeals, 225 SCRA 118
Titong v. Court of Appeals, 287 SCRA 102
*Sps. Portic v. Cristobal, 496 Phil 456

recovery of possession, NCC 434

Reconveyance
Replevin
damages

Bishop of Cebu v. Mangaron, 6 PhiT 286

Chacon v. Court of Appeals, 124 SCRA 784
German Management v. Court of Appeals, 177 SCRA 495
*De La Paz v. Panis, 245 SCRA 242
*Vda. de Aviles v. Court of Appeals, 264 SCRA 473
*Baricuatro v. Court of Appeals, 325 SCRA J37
*BA Finance v. Court of Appeals, 327 SCRA 716
*PEZA v. Fernandez, 358 SCRA 489

3) Right to accession — NCC 426

IMMOVEABLE PROPERTY

a) discreta — NCC 440-441

1) natural — NCC 442-444

2) industrial — NCC 442
3) civil — NCC 442

b) continua

1) naturally incorporated — NCC 445-456

Zapata v. Director of Lands, 5 SCRA 335

Cortez v. Court of Appeals, 10 PhiT 567
Hilario v. City of Manila, 19 SCRA 931
Grande v. Court of Appeals, 5 SCRA 524
Ignacio v. Director of Lands, 727 SCRA 13
Republic v. CA, 132 SCRA 514, G.R. No. L-61647, October 12, 1984
Lunod v. Meneses, 11 PhiT 128
*Binalay v. Manalo, 195 SCRA 347
*Baes v. Court of Appeals, 224 SCRA 562
*Vda. de Nazareno v. Court of Appeals, 257 SCRA 589

2) artificially incorporated — NCC 457-465

Equatorial v. Mayfair, 370 SCRA 56

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Luianag v. Yu-sonquian, 5 SCRA 147, G.R. No. L-2238, October 19, 1905
JM Tuason v. Vda. de Lumanlan, 23 SCRA 231
Gaboya v. Cui, 38 SCRA 85
Floresca v. Evangelista, 96 SCRA 130
Manotok Realty v. Tecson 764 SCRA 587
*MWSS v. Court of Appeals, 143 SCRA 623, G.R. No. L-54526, August 25, 1986
*Pleasantville v. Court of Appeals, 253 SCRA 10
*Alviola v. Court of Appeals, 289 SCRA 537
*Heirs of R. Duran v. Uy, 344 SCRA 537

MOVEABLE PROPERTY

a) Conjunction/adjunction — NCC 466-471, 475

b) Commixtion/confusion — NCC 472-473, 475
c) Specification — NCC 474-475

EXCEPTIONS: FC 119-120

CO-OWNERSHIP
1. Definition —NCC 484-486, 493, 1620

Pardell v. Bartolome, 23 Phil 450

Basa v. Aguilar, 117 SCRA 128
Del Campo v. Abesia, 160 SCRA 379
*Bailon-Casilao v. Court of Appeals, 160 SCRA 738
*Oliveras v. Lopez, 168 SCRA 431
*Tagarao v. Garcia, 67 Phil 5, G.R. No. L-40064, December 4, 1934
*Rivera v. People's Bank, 73 SCRA 546
*Gatchalian v. Collector of Customs, 67 Phil 666

2. Special Rights of Co-owners — NCC 487-492, 494, 1088, 1620, 1623

Melencio v. Dy Tiao Lay, 55 Phil 100

Lavadia v. Cosme, 72 Phil 196, GR No. L-47996 May 9, 1941
Tuason v. Tuason, 88 Phil 428
*Mariano v. Court of Appeals, 222 SCRA 736
*Arcelona v. Court of Appeals, 280 SCRA 20, [G.R. No. 102900. October 2, 1997]
*Adlawan v. Adlawan, 479 SCRA 275

3. Special rule on marital properties — NCC 90

USUFRUCT
A. In General

1. Definition — NCC 562

Alunan v. Veloso, 52 Phil 545

Belonio v. Novella, 105 Phil 756, [G.R. No. L-12666. May 22, 1959.]

2. Rights of owner

a. Alienate — NCC 581

b. Improvement — NCC 595

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 c. Taxes — NCC 597

B. The Usufructuary

1. Obligations of Usufructuary

a. in general — NCC 583-585

b. administration

Exercise diligence — NCC 573, 589

Vicarious liability — NCC 590
Replace/repair — NCC 591-593
Notify owner of certain acts — NCC 601

c. give security — NCC 583-588, 599

d. expenses

Pay charges and taxes — NCC 596-597

Pay debts — NCC 598, 600
Collect credits — NCC 599
Shoulder legal expenses — NCC 602

e. Return — NCC 612

Mercado v. Rizal, 67 Phil 608

Vda. de Albar v. Carandang, 106 Phil 855
Board of Assessment Appeals v Samar Mining, 37 SCRA 734

2. Rights of Usufructuary

a) in general — NCC 565

b) administration — NCC 582

Alienate, lease — NCC 568, 572, 581

Enjoy and use — NCC 563, 572-578

Make improvements — NCC 579-580

Suit — NCC 578, 602

Pichay v. Querol, 77 Phil 386

Reyes v. Grey, 21 Phil 73
Tufexis v. Municipal Council of Guinobatan
Municipality of Paoay v. Manaois, 86 Phil 629
*Fabie v. David, 75 Phil 536
*Orozco v. Araneta, 90 Phil 399
*Bachrach v. Seifert, 97 Phil 483
*Bautista v. Marcos, 113 Phil 421
*Gaboya v. Cui, 38 SCRA 85
*Hemedes v. Court of Appeals, 316 SCRA 347

LIMITATIONS ON PROPERTY RIGHTS

1) Eminent Domain

1987 Const., Art. III, s. 1, 9

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NCC 435
LGC 19

Republic v. Castellvi, 58 SCRA 336

City Government of Quezon City v. Ericta, 122 SCRA
Republic v. PLDT 25 SCRA 620

2) Police Power

NCC 436
LGC 20, 447.a.4, 458.a.4, 468.a.2.vi

Churchill & Tait v. Rafferty, 32 Phil 580

Taxicab Operators v. Board of Transportation, 119 SCRA 597

3) Necessity — NCC 432

4) Sic utter too at alien non leads — NCC 431

5) Nuisance

a) Definition — NCC 694, 682-683

b) Classification — NCC 695
c) Remedies — NCC 696-707

Iloilo Cold Storage v. Municipal Council, 24 Phil 471

Monteverde v. Generoso, 52 Phil 123
Hidalgo v. Balandan, 91 Phil 489
Sitchon v. Aquino, 98 Phil 458
Velasco v. Manila Electric Co., 40 SCRA 342
Farrales v. City Mayor of Baguio, 44 SCRA 239
*Timoner v. People, 125 SCRA 830
*Estate of Gregorio Francisco v. Court of Appeals, 199 SCRA 595
*Tamin v. Court of Appeals, 208 SCRA 863

6) Easements

a) Definition — NCC 613

b) Characteristics — NCC 617-618
c) Classification — NCC 613-616, 619, 634, 688
d) Rights and obligations — NCC 624-633
e) Creation

By title — NCC 622, 624

By will of the owners — NCC 619, 688-693
By law — NCC 619, 634-636
By prescription — NCC 620-622

f) Extinguishment — NCC 631 (2)

Cid v. Javier, 108 Phil 239

Francisco v. Paez, 54 Phil 239
*Benedicto v. Court of Appeals, 134 Phil 122

g) Legal Easements

a) In favor of adjacent properties

RIGHT OF WAY — NCC 649-657

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Archbishop of ManiLa v. Roxas, 22 Phil 450
Cuaycong v. Benedicto, 37 Phil 781
Valderrama v. North Negros, 48 Phil 492
North Negros v. Hidalgo, 63 Phil 664
*Bernardo v. Court of Appeals
*Francisco v. Intermediate Appellate Court
*Costabella v. Court of Appeals, 193 SCRA 333
*Encarnacion v. Court of Appeals, 195 SCRA 74
*Solid Manila Corp. v. Bio Hong, 195 SCRA 748
*Quimen v. Court of Appeals, 257 SCRA 163

PARTY WALL — NCC 658-666

*Lao v. Heirs of Alburo, 33 Phil 48

LIGHT & VIEW — NCC 667-673

*Cortes v. Yu-Tibo, 2 Phil 24

*Fabie v. Lichauco, 11 Phil 14
*Saenz v. Figueras Hermanos, 13 Phil 666
*Amor v. Florentino, 74 Phil 403
*Gargantos v. Yanon, 108 Phil 888

INTERMEDIATE DISTANCES — NCC 677-681

LATERAL & SUBJACENT SUPPORT — NCC 684-687

b) Pertaining to waters

Natural drainage — NCC 637, Pres. Decree 1067 (Water Code) 50

Riparian banks — NCC 638, Water Code 51
Drainage of buildings — NCC 674-676
Dam — NCC 639, 647, Water Code 38-39
Drawing water — NCC 640-641, Rep. Act 7942 (Mining Code)
Aqueduct — NCC 642-646, Water Code 13, 25, 46-49, 67
Sluice gate — NCC 647

Tanedo v. Bernad, 165 SCRA 86

Ayala de Roxas v. City of Manila, 9 Phil 215
Lunod v. Meneses, 77 Phil 128
Salazar v. Gutierrez, 33 SCRA 242
Relova v. Lavarez, 9 Phil 149

c) Easement against nuisance — NCC 682-683

d) Special easements — Mining Code 75

Characteristics — NCC 617-618

Kinds — NCC 613-616, 619, 634, 636, 688

7) Waters

1) Ownership — NCC 502-503, Water Code 5-6

2) Use of public waters — NCC 504-506 Water Code 31-52
3) Waters in private property — NCC 507-511, Water Code 5-6, 13-14, 25, 32, 41
4) Subterranean waters — NCC 512-514, Water Code 8-9, 13, 17, 32, 39, 64
5) General provisions — NCC 515-518, Water Code (all remaining provisions)

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8) Contractual limitations

NCC 1347-49

CREATION, TRANSMISSION AND TERMINATION OF

PROPERTY RIGHTS
A. MODES IN GENERAL
NCC 712

1. Voluntary Modes

a) Occupation — NCC 713-720

Carino v. Insular Government, 41 Phil 935

Gold Creek Mining v. Rodriquez, 66 Phil 259
Atok Big Wedge Mining v. IAC, 261 SCRA 529
Cruz v. Sec. of Environment and Natural Resources
NPC v. Ibrahim, 526 SCRA 149

b) Tradition/Delivery — NCC 712, 1495-1501

San Lorenzo v. Court of Appeals, 449 SCRA 99

EquatoriaT Realty v. Mayfair, 370 SCRA 55
Union Motor v. Court of Appeals, 361 SCRA 506

c) Donation

1) Definition — NCC 725-726

Object — NCC 750-752, 755-756
Effects — NCC 750-759

Osorio v. Osorio, 41 PhiT 531

Central Philippine University v. Court of Appeals, 246 SCRA 511
De Luna v. Abrigo, 181 SCRA 750
Vda. de Tupas v. Regional Trial Court, 744 SCRA 622
De Roma v. Court of Appeals, 152 SCRA 205

2) Classification Of Donation

Onerous — NCC 726, 733, 758

Simple — NCC 725-726, 733
Modal — NCC 726
Conditional — NCC 727, 730-731

MORTIS CAUSA — NCC 728

PROPTER NUPTIAS — Family Code 82-86
INTER VIVOS — NCC 729, 732

Parks v. Province of Tarlac, 49 Phil 142

Zapanta v. Posadas, 52 Phil 557
Javier v. Cabangos, 53 Phil 578
Balaqui v. Dongso 53 Phil 673
Concepcion v. Concepcion, 91 Phil 823
*Carino v. Abaya, 70 Phil 182
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*Bonsato v. Court of Appeals, 95 Phil 481
*De Luna v. Abrigo, 181 SCRA 150
*Roman Catholic v. Court of Appeals, 198 SCRA 300
*Central Philippine University v. Court of Appeals, 246 SCRA 511
*Secretary v. Heirs of Du7ay, 480 SCRA 452
*Bautista v. Sabiniano, 92 Phil 244

3) Formalities

a) Donor’s qualifications — NCC 735-737, 739

b) Donee’s qualifications — NCC 738, 739-744, 753, 1027, Family Code 87
c) How made — NCC 748-749
d) How accepted — NCC 734, 745-749

Lagazo v. Court of AppeaTs, 287 SCRA 18

Genato v. De Lorenzo, 23 SCRA 618
Araneta v. Perez, 17 SCRA 643

4) Revocation — NCC 760-773

B) Intellectual creation — NCC 712, 721-724; Rep. Act 8293 (Intellectual Property Code) 4.1, 22, 112,
172-173

C) Testamentary Succession — NCC 779

D) Sales — NCC 1458
E) Abandonment — NCC 713, 1112

2. Involuntary Modes

a) Prescription & Laches — NCC 1106-1107

1) Acquisitive — NCC 554, 719, 1106-1138, 1505

Cutanda v. Cutanda, 335 SCRA 418

Serespi v. Court of Appeals, 331 SCRA 293

2) Extinctive — NCC 1139-1155

Cimafranca v. Intermediate Appellate Court, 147 SCRA 611

Bureau of Forestry v. Court of Appeals, 153 SCRA i57
*Baifon-CasiTao v. Court of Appeals, 160 SCRA 738
*Villagonzalo v. Intermediate Appellate Court, 167 SCRA 535
*Bergado v. Court of Appeals, 172 SCRA 497
*Casipit v. Court of Appeals, 204 SCRA 684
*Kiamco v. Court of Appeals, 211 SCRA 156
*Ledesma v. Court of Appeals, 224 SCRA 175
*De Cabrera v. Court of Appeals, 267 SCRA 339

b) Intestate Succession — NCC 774-777, 960-61

c) Forced sales

Execution of judgment — 1997 Rules of Civil Procedure,

Rule 39, s. 1, 8, 9 (b) & (c), 10 , 13

Escheat — Rules of Court: Special Proceedings, Rule 91

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 d) Accession — NCC 426, 440

e) Marriage — FC 74, 88-90

SPECIAL APPLICATIONS
1) Possession

a) Acquisition
1. Occupation — NCC 531
2. Succession — NCC 533-534
3. Exceptions — NCC 536-537

b) Termination — NCC 555-557

Ramos v. Director,39 Phil 175

Vano v. Government, 41 Phil 161
Lasam v. Director, 65 Phil 367
People v. Estoista, 93 Phil 647
*Caparros v. Court of Appeals, 170 SCRA 758
*Tan Queto v. Court of Appeals, 148 SCRA 54
*Director v. Intermediate Appellate Court, 209
*Pascual v. Angeles, 4 Phil 604

2) Co-ownership

a) Acquisition

1) Marriage — Family Code 88, 91-93, 96, 116-117, 120

2) Cohabitation — Family Code 147-148
3) Joint purchase — NCC 1452
4) Succession — NCC 1078
5) Donation — NCC 472
6) Chance — NCC 472
7) Hidden treasure — NCC 438
8) Easement of party wall — NCC 658
9) Contract
In general — NCC 494
Universal partnership — NCC 1778-1780
Associations — NCC 1775
10) Occupation — NCC 1775
11) Condominium — Rep. Act 4726 (Condominium Law)

*Punzalan v. Boon Liat, 44 Phil 658

*Twin Towers Condominium Corp. v. Court of Appeals, 398 SCRA 203

b) Termination

1) Partition — NCC 494-496

2) Effect of partition — NCC 499 501, 543, 1091-1093
3) Right against individual co-owners — NCC 497
4) Disagreement between co-owners — NCC 498

3) Usufruct

a) Acquisition — NCC 563-565

b) Termination — NCC 603-612

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Lopez v. Constantino, 74 Phil 150
Baluran v. Navarro, 79 SCRA 309
Palad v. Navarro, 45 SCRA 354

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