Section 48 (b) of CA 141

Commonwealth Act No. 141, also known as the Public Land Act, has, since its enactment,
governed the classification and disposition of lands of the public domain. The President is authorized,
from time to time, to classify the lands of the public domain into alienable and disposable, timber, or
mineral lands. Alienable and disposable lands of the public domain are further classified according to
their uses into (a) agricultural; (b) residential, commercial, industrial, or for similar productive
purposes; (c) educational, charitable, or other similar purposes; or (d) reservations for town sites and
for public and quasi-public uses.

May a private person validly seek the registration in his/her name of alienable and disposable
lands of the public domain? Section 11 of the Public Land Act acknowledges that public lands suitable
for agricultural purposes may be disposed of by confirmation of imperfect or incomplete titles through
judicial legalization. Section 48(b) of the Public Land Act, as amended by P.D. No. 1073, supplies the
details and unmistakably grants that right, subject to the requisites stated therein:

Sec. 48. The following described citizens of the Philippines, occupying lands of the public
domain or claiming to own any such land or an interest therein, but whose titles have not been
perfected or completed, may apply to the Court of First Instance of the province where the land is
located for confirmation of their claims and the issuance of a certificate of title therefor, under the Land
Registration Act, to wit:

(b) Those who by themselves or through their predecessors in interest have been in open,
continuous, exclusive, and notorious possession and occupation of alienable and disposable lands of
the public domain, under a bona fide claim of acquisition of ownership, since June 12, 1945, or earlier,
immediately preceding the filing of the application for confirmation of title except when prevented by
war or force majeure. These shall be conclusively presumed to have performed all the conditions
essential to a Government grant and shall be entitled to a certificate of title under the provisions of this
chapter.
Section 48(b) of Com. Act No. 141 received its present wording in 1977 when the law was amended
by P.D. No. 1073. Two significant amendments were introduced by P.D. No. 1073. First, the term
agricultural land was changed to alienable and disposable lands of the public domain. The OSG submits
that this amendment restricted the scope of the lands that may be registered. This is not actually the
case. Under Section 9 of the Public Land Act, agricultural lands are a mere subset of lands of the public
domain alienable or open to disposition. Evidently, alienable and disposable lands of the public
domain are a larger class than only agricultural lands.
 Second, the length of the requisite possession was changed from possession for thirty (30) years
immediately preceding the filing of the application to possession since June 12, 1945 or earlier. The
Court in Naguit explained:

When the Public Land Act was first promulgated in 1936, the period of possession deemed
necessary to vest the right to register their title to agricultural lands of the public domain commenced
from July 26, 1894. However, this period was amended by R.A. No. 1942, which provided that
the bona fide claim of ownership must have been for at least thirty (30) years. Then in 1977, Section
48(b) of the Public Land Act was again amended, this time by P.D. No. 1073, which pegged the
reckoning date at June 12, 1945.

It bears further observation that Section 48(b) of Com. Act No, 141 is virtually the same as Section 14(1)
of the Property Registration Decree. Said Decree codified the various laws relative to the registration of
property, including lands of the public domain. It is Section 14(1) that operationalizes the registration
of such lands of the public domain. The provision reads:

SECTION 14. Who may apply. The following persons may file in the proper Court of First
Instance an application for registration of title to land, whether personally or through their duly
authorized representatives:

(1) those who by themselves or through their predecessors-in-interest have been in open, continuous,
exclusive and notorious possession and occupation of alienable and disposable lands of the public
domain under a bona fide claim of ownership since June 12, 1945, or earlier.

Notwithstanding the passage of the Property Registration Decree and the inclusion of Section
14(1) therein, the Public Land Act has remained in effect. Both laws commonly refer to persons or their
predecessors-in-interest who have been in open, continuous, exclusive and notorious possession and
occupation of alienable and disposable lands of the public domain under a bona fide claim of
ownership since June 12, 1945, or earlier. That circumstance may have led to the impression that one
or the other is a redundancy, or that Section 48(b) of the Public Land Act has somehow been repealed
or mooted. That is not the case.

The opening clauses of Section 48 of the Public Land Act and Section 14 of the Property
Registration Decree warrant comparison:

Sec. 48 [of the Public Land Act]. The following described citizens of the Philippines, occupying
lands of the public domain or claiming to own any such land or an interest therein, but whose titles
have not been perfected or completed, may apply to the Court of First Instance of the province where
the land is located for confirmation of their claims and the issuance of a certificate of title therefor,
under the Land Registration Act, to wit:

Sec. 14 [of the Property Registration Decree]. Who may apply. The following persons may file
in the proper Court of First Instance an application for registration of title to land, whether personally
or through their duly authorized representatives:

It is clear that Section 48 of the Public Land Act is more descriptive of the nature of the right
enjoyed by the possessor than Section 14 of the Property Registration Decree, which seems to presume
the pre-existence of the right, rather than establishing the right itself for the first time. It is proper to
assert that it is the Public Land Act, as amended by P.D. No. 1073 effective 25 January 1977, that has
primarily established the right of a Filipino citizen who has been in open, continuous, exclusive, and
notorious possession and occupation of alienable and disposable lands of the public domain, under a
bona fide claim of acquisition of ownership, since June 12, 1945 to perfect or complete his title by
applying with the proper court for the confirmation of his ownership claim and the issuance of the
corresponding certificate of title.

Section 48 can be viewed in conjunction with the afore-quoted Section 11 of the Public Land
Act, which provides that public lands suitable for agricultural purposes may be disposed of by
confirmation of imperfect or incomplete titles, and given the notion that both provisions declare that it
is indeed the Public Land Act that primarily establishes the substantive ownership of the possessor who
has been in possession of the property since 12 June 1945. In turn, Section 14(a) of the Property
Registration Decree recognizes the substantive right granted under Section 48(b) of the Public Land Act,
as well provides the corresponding original registration procedure for the judicial confirmation of an
imperfect or incomplete title.

There is another limitation to the right granted under Section 48(b). Section 47 of the Public Land Act
limits the period within which one may exercise the right to seek registration under Section 48. The
provision has been amended several times, most recently by Rep. Act No. 9176 in 2002. It currently
reads thus:

Section 47. The persons specified in the next following section are hereby granted time, not to
extend beyond December 31, 2020 within which to avail of the benefits of this Chapter: Provided,
That this period shall apply only where the area applied for does not exceed twelve (12)
hectares: Provided, further, That the several periods of time designated by the President in accordance
with Section Forty-Five of this Act shall apply also to the lands comprised in the provisions of this
Chapter, but this Section shall not be construed as prohibiting any said persons from acting under this
Chapter at any time prior to the period fixed by the President.[24]
Accordingly under the current state of the law, the substantive right granted under Section 48(b) may
be availed of only until 31 December 2020.

Section 14 of PD 1529

APPLICATIONS

Section 14. Who may apply. The following persons may file in the proper Court of First Instance an
application for registration of title to land, whether personally or through their duly authorized
representatives:

(1) Those who by themselves or through their predecessors-in-interest have been in open, continuous,
exclusive and notorious possession and occupation of alienable and disposable lands of the public
domain under a bona fide claim of ownership since June 12, 1945, or earlier.

(2) Those who have acquired ownership of private lands by prescription under the provision of
existing laws.

(3) Those who have acquired ownership of private lands or abandoned river beds by right of accession
or accretion under the existing laws.

(4) Those who have acquired ownership of land in any other manner provided for by law.

Where the land is owned in common, all the co-owners shall file the application jointly.

Where the land has been sold under pacto de retro, the vendor a retro may file an application for the
original registration of the land, provided, however, that should the period for redemption expire
during the pendency of the registration proceedings and ownership to the property consolidated in the
vendee a retro, the latter shall be substituted for the applicant and may continue the proceedings.

A trustee on behalf of his principal may apply for original registration of any land held in trust by him,
unless prohibited by the instrument creating the trust.

Book II: Property; Concept of Possession, Prescription: Civil Code

1. POSSESSION

Art. 523. Possession is the holding of a thing or the enjoyment of a right. (430a)

VIEWPOINTS OF POSSESSION

1. Right to possession or jus possidendi—possession de facto; incident of ownership

2. Right of possession or jus possessions—possession de jure; independent of ownership
DEGREES OF POSSESSION

1. Mere holding or having without any right whatsoever— grammatical degree

2. Possession with juridical title—juridical possession
3. Possession with just title but not from the real owner—real possessory right
4. Possession with title of dominium, with a just title from the owner

REQUISITES OR ELEMENTS OF POSSESSION

1. There must be holding or control of a thing or right

2. There must be a deliberate intention to possess or animus possidendi
3. The possession must be by virtue of one’s own right

CLASSES OF POSSESSION

1. In one’s own name or in that of another

2. In the concept of owner or concept of holder
3. In good faith or in bad faith

OWNERSHIP IS DIFFERENT FROM POSSESSION

 A person may be declared the owner but he may not be entitled to possession
 A judgment for ownership doesn't necessarily include possession as a necessary incident

Art. 524. Possession may be exercised in one's own name or in that of another. (413a)

POSSESSION IN ANOTHER’S NAME

1. Voluntary—agent possesses for his principal

2. Involuntary—as when a mother possesses for a child in a maternal womb
3. Unauthorized—will become principal’s possession only after there has been ratification without
prejudice to the effects of
negotiorum gestio

Art. 525. The possession of things or rights may be had in one of two concepts: either in the concept
of owner, or in that of the holder of the thing or right to keep or enjoy it, the ownership pertaining to
another person. (432)

CONCEPT OF OWNER

 Other people believe through my actions, that I am the owner of the property
 Considered in the opinion of others as owner
 Regardless of good faith or bad faith
 Contrary to concept of holder wherein I recognize another to be the owner of the property

Art. 526. He is deemed a possessor in good faith who is not aware that there exists in his title or mode
of acquisition any flaw which invalidates it. He is deemed a possessor in bad faith who possesses in any
case contrary to the foregoing. Mistake upon a doubtful or difficult question of law may be the basis of
good faith. (433a)

MISTAKE ON A DOUBTFUL QUESTION OF LAW

 It is true that ignorance of the law excuses no one but error in the application of the law, in the legal
solutions arising from such application, and the interpretation of doubtful doctrine can still make a
person a transgressor, possessor, violator in good faith

Art. 527. Good faith is always presumed, and upon him who allegesbad faith on the part of a
possessor rests the burden of proof.(434)

Art. 528. Possession acquired in good faith does not lose this character except in the case and from the
moment facts exist which show that the possessor is not unaware that he possesses the thing
improperly or wrongfully. (435a)

WHEN IS POSSESSION IN GOOD FAITH CONVERTED TO POSSESSION IN BAD FAITH?

1. From the moment facts exist showing the possessor’s knowledge of the flaw, from that time he
should be considered as a possessor in bad faith
2. It doesn't matter whether the facts were caused by him or by some other person

WHEN BAD FAITH BEGINS

- Judicial summons
- Even before such time as when a letter is received from the true owner asking the possessor to stop

Art. 529. It is presumed that possession continues to be enjoyed in the same character in which it was
acquired, until the contrary is proved. (436)

PRESUMPTIONS REGARDING POSSESSION

1. Good faith
2. Continuity of the character of good faith
3. Non-interruption of possession
4. Presumption of just title
5. Non-interruption of possession of property unjustly lost but legally recovered
6. Possession during intervening period
7. Possession of movables with real property
8. Exclusive possession of common property

Art. 530. Only things and rights which are susceptible of being appropriated may be the object of
possession. (437)

ACQUISITION OF POSSESSION
Art. 531. Possession is acquired by the material occupation of a thing or the exercise of a right, or by
the fact that it is subject to the action of our will, or by the proper acts and legal formalities established
for acquiring such right. (438a)

HOW IS POSSESSION ACQUIRED?

1. By material occupation
2. By subjection to our will
3. By constructive possession or proper acts and legal formalities
a. Constititom possessorium exists when a person who possessed property as an owner now
possesses it in
some other capacity other than owner
b. Traditio brevi manu is the opposite of constitutom possessorium
c. Traditio longa manu is delivery by consent or mere ointing
d. Traditio symbolica

ESSENTIAL REQUIREMENTS FOR POSSESSION

1. The corpus
2. The animus

CONSTRUCTIVE POSSESSION OF LAND

 If an entire parcel is possessed under claim of ownership, there is constructive possession of the
entire parcel unless a portion thereof is adversely possessed by another

Art. 532. Possession may be acquired by the same person who is to enjoy it, by his legal
representative, by his agent, or by any person without any power whatever: but in the last case, the
possession shall not be considered as acquired until the person in whose name the act of possession
was executed has ratified the same, without prejudice to the juridical consequences of negotiorum
gestio in a proper case. (439a)

NEGOTIORUM GESTIO

 Whoever voluntarily takes charge of the agency or management of the business or property of
another, without any power from the latter, is obliged to continue the same until the termination of
the affair and its incidents, or to require the person concerned to substitute him, if the owner is in a
position to do so. This juridical relation does not arise in either of these instances:
1. When the property or business is not neglected or abandoned;
2. If in fact the manager has been tacitly authorized by the owner.

 In the first case, the provisions of Articles 1317, 1403, No. 1, and 1404 regarding unauthorized
contracts shall govern.
 In the second case, the rules on agency in Title X of this Book shall be applicable. (1888a)
Art. 533. The possession of hereditary property is deemed transmitted to the heir without interruption
and from the moment of the death of the decedent, in case the inheritance is accepted. One who
validly renounces an inheritance is deemed never to have possessed the same. (440)

TIMES OF ACQUISITION OF POSSESSION

1. If heir accepts—from the moment of death since there is no interruption

2. If heir refuses—he is deemed never to have possessed the same

Art. 534. On who succeeds by hereditary title shall not suffer the consequences of the wrongful
possession of the decedent, if it is not shown that he was aware of the flaws affecting it; but the effects
of possession in good faith shall not benefit him except from the date of the death of the decedent.
(442)

EFFECTS OF ACQUISITION OF POSSESSION THROUGH SUCCESSION

 If the father was in bad faith, it doesn't mean that the son is also in bad faith

Art. 535. Minors and incapacitated persons may acquire the possession of things; but they need the
assistance of their legal representatives in order to exercise the rights which from the possession arise in
their favor. (443)

NATURE OF THEIR POSSESSION

 Possession by them is allowed only in those matters where they have capacity to act and not
possession where juridical acts are imperative

Art. 536. In no case may possession be acquired through force or intimidation as long as there is a
possessor who objects thereto. He who believes that he has an action or a right to deprive another of
the holding of a thing, must invoke the aid of the competent court, if the holder should refuse to
deliver the thing. (441a)

POSSESSION MAY NOT BE ACQUIRED THROUGH THE FOLLOWING

1. Force and intimidation

2. By mere tolerance
3. Clandestine and secret possession

Art. 537. Acts merely tolerated, and those executed clandestinely and without the knowledge of the
possessor of a thing, or by violence, do not affect possession. (444)

Art. 538. Possession as a fact cannot be recognized at the same time in two different personalities
except in the cases of co-possession. Should a question arise regarding the fact of possession, the
present possessor shall be preferred; if there are two possessors, the one longer in possession; if the
dates of the possession are the same, the one who presents a title; and if all these conditions are equal,
the thing shall be placed in judicial deposit pending determination of its possession or ownership
through proper proceedings. (445)
Art. 1120. Possession is interrupted for the purposes of prescription, naturally or civilly. (1943)

Art. 1121. Possession is naturally interrupted when through any cause it should cease for more than one
year.
The old possession is not revived if a new possession should be exercised by the same adverse
claimant. (1944a)

Art. 1122. If the natural interruption is for only one year or less, the time elapsed shall be counted in
favor of the prescription. (n)

Art. 1123. Civil interruption is produced by judicial summons to the possessor. (1945a)

IT IS POSSIBLE FOR CURRENT POSSESSOR TO ADD TIME TO POSSESSION OF PREDECESSOR IF

there is privity between them. This procedure is called TACKING.

Title III. - CO-OWNERSHIP

Art. 484. There is co-ownership whenever the ownership of an undivided thing or right belongs to
different persons.

In default of contracts, or of special provisions, co-ownership shall be governed by the provisions of

this Title. (392)

Art. 485. The share of the co-owners, in the benefits as well as in the charges, shall be proportional to
their respective interests. Any stipulation in a contract to the contrary shall be void.

The portions belonging to the co-owners in the co-ownership shall be presumed equal, unless the
contrary is proved. (393a)

Art. 486. Each co-owner may use the thing owned in common, provided he does so in accordance
with the purpose for which it is intended and in such a way as not to injure the interest of the co-
ownership or prevent the other co-owners from using it according to their rights. The purpose of the
co-ownership may be changed by agreement, express or implied. (394a)

Art. 487. Any one of the co-owners may bring an action in ejectment. (n)

Art. 488. Each co-owner shall have a right to compel the other co-owners to contribute to the
expenses of preservation of the thing or right owned in common and to the taxes. Any one of the
latter may exempt himself from this obligation by renouncing so much of his undivided interest as may
be equivalent to his share of the expenses and taxes. No such waiver shall be made if it is prejudicial to
the co-ownership. (395a)

Art. 489. Repairs for preservation may be made at the will of one of the co-owners, but he must, if
practicable, first notify his co-owners of the necessity for such repairs. Expenses to improve or
embellish the thing shall be decided upon by a majority as determined in Article 492. (n)
Art. 490. Whenever the different stories of a house belong to different owners, if the titles of
ownership do not specify the terms under which they should contribute to the necessary expenses and
there exists no agreement on the subject, the following rules shall be observed:

(1) The main and party walls, the roof and the other things used in common, shall be preserved
at the expense of all the owners in proportion to the value of the story belonging to each;

(2) Each owner shall bear the cost of maintaining the floor of his story; the floor of the
entrance, front door, common yard and sanitary works common to all, shall be maintained at
the expense of all the owners pro rata;

(3) The stairs from the entrance to the first story shall be maintained at the expense of all the
owners pro rata, with the exception of the owner of the ground floor; the stairs from the first
to the second story shall be preserved at the expense of all, except the owner of the ground
floor and the owner of the first story; and so on successively. (396)

Art. 491. None of the co-owners shall, without the consent of the others, make alterations in the thing
owned in common, even though benefits for all would result therefrom. However, if the withholding
of the consent by one or more of the co-owners is clearly prejudicial to the common interest, the
courts may afford adequate relief. (397a)

Art. 492. For the administration and better enjoyment of the thing owned in common, the resolutions
of the majority of the co-owners shall be binding.

There shall be no majority unless the resolution is approved by the co-owners who represent the
controlling interest in the object of the co-ownership.

Should there be no majority, or should the resolution of the majority be seriously prejudicial to those
interested in the property owned in common, the court, at the instance of an interested party, shall
order such measures as it may deem proper, including the appointment of an administrator.

Whenever a part of the thing belongs exclusively to one of the co-owners, and the remainder is owned
in common, the preceding provision shall apply only to the part owned in common. (398)

Art. 493. Each co-owner shall have the full ownership of his part and of the fruits and benefits
pertaining thereto, and he may therefore alienate, assign or mortgage it, and even substitute another
person in its enjoyment, except when personal rights are involved. But the effect of the alienation or
the mortgage, with respect to the co-owners, shall be limited to the portion which may be alloted to
him in the division upon the termination of the co-ownership. (399)

Art. 494. No co-owner shall be obliged to remain in the co-ownership. Each co-owner may demand at
any time the partition of the thing owned in common, insofar as his share is concerned.

Nevertheless, an agreement to keep the thing undivided for a certain period of time, not exceeding ten
years, shall be valid. This term may be extended by a new agreement.

A donor or testator may prohibit partition for a period which shall not exceed twenty years.

Neither shall there be any partition when it is prohibited by law.

No prescription shall run in favor of a co-owner or co-heir against his co-owners or co-heirs so long as
he expressly or impliedly recognizes the co-ownership. (400a)

Art. 495. Notwithstanding the provisions of the preceding article, the co-owners cannot demand a
physical division of the thing owned in common, when to do so would render it unserviceable for the
use for which it is intended. But the co-ownership may be terminated in accordance with Article 498.
(401a)

Art. 496. Partition may be made by agreement between the parties or by judicial proceedings.
Partition shall be governed by the Rules of Court insofar as they are consistent with this Code. (402)

Art. 497. The creditors or assignees of the co-owners may take part in the division of the thing owned
in common and object to its being effected without their concurrence. But they cannot impugn any
partition already executed, unless there has been fraud, or in case it was made notwithstanding a
formal opposition presented to prevent it, without prejudice to the right of the debtor or assignor to
maintain its validity. (403)

Art. 498. Whenever the thing is essentially indivisible and the co-owners cannot agree that it be
allotted to one of them who shall indemnify the others, it shall be sold and its proceeds distributed.
(404)

Art. 499. The partition of a thing owned in common shall not prejudice third persons, who shall retain
the rights of mortgage, servitude or any other real rights belonging to them before the division was
made. Personal rights pertaining to third persons against the co-ownership shall also remain in force,
notwithstanding the partition. (405)

Art. 500. Upon partition, there shall be a mutual accounting for benefits received and reimbursements
for expenses made. Likewise, each co-owner shall pay for damages caused by reason of his negligence
or fraud. (n)

Art. 501. Every co-owner shall, after partition, be liable for defects of title and quality of the portion
assigned to each of the other co-owners. (n)

Title IV. - SOME SPECIAL PROPERTIES

CHAPTER I
WATERS
SECTION 1. - Ownership of Waters

Art. 502. The following are of public dominion:

(1) Rivers and their natural beds;

(2) Continuous or intermittent waters of springs and brooks running in their natural beds and
the beds themselves;

(3) Waters rising continuously or intermittently on lands of public dominion;

(4) Lakes and lagoons formed by Nature on public lands, and their beds;

(5) Rain waters running through ravines or sand beds, which are also of public dominion;
 (6) Subterranean waters on public lands;

(7) Waters found within the zone of operation of public works, even if constructed by a
contractor;

(8) Waters rising continuously or intermittently on lands belonging to private persons, to the
State, to a province, or to a city or a municipality from the moment they leave such lands;

(9) The waste waters of fountains, sewers and public establishments. (407)

Art. 503. The following are of private ownership:

(1) Continuous or intermittent waters rising on lands of private ownership, while running
through the same;

(2) Lakes and lagoons, and their beds, formed by Nature on such lands;

(3) Subterranean waters found on the same;

(4) Rain waters falling on said lands, as long as they remain within the boundaries;

(5) The beds of flowing waters, continuous or intermittent, formed by rain water, and those of
brooks, crossing lands which are not of public dominion.

In every drain or aqueduct, the water, bed, banks and floodgates shall be considered as an
integral part of the land of building for which the waters are intended. The owners of lands,
through which or along the boundaries of which the aqueduct passes, cannot claim ownership
over it, or any right to the use of its bed or banks, unless the claim is based on titles of
ownership specifying the right or ownership claimed. (408)

SECTION 2. - The Use of Public Waters

Art. 504. The use of public waters is acquired:

(1) By administrative concession;

(2) By prescription for ten years.

The extent of the rights and obligations of the use shall be that established, in the first case, by the
terms of the concession, and, in the second case, by the manner and form in which the waters have
been used. (409a)

Art. 505. Every concession for the use of waters is understood to be without prejudice to third
persons. (410)

Art. 506. The right to make use of public waters is extinguished by the lapse of the concession and by
non-user for five years. (411a)

SECTION 3. - The Use of Waters of Private Ownership

Art. 507. The owner of a piece of land on which a spring or brook rises, be it continuous or
intermittent, may use its waters while they run through the same, but after the waters leave the land
they shall become public, and their use shall be governed by the Special Law of Waters of August 3,
1866, and by the Irrigation Law. (412a)

Art. 508. The private ownership of the beds of rain waters does not give a right to make works or
constructions which may change their course to the damage of third persons, or whose destruction, by
the force of floods, may cause such damage. (413)

Art. 509. No one may enter private property to search waters or make use of them without
permission from the owners, except as provided by the Mining Law. (414a)

Art. 510. The ownership which the proprietor of a piece of land has over the waters rising thereon
does not prejudice the rights which the owners of lower estates may have legally acquired to the use
thereof. (415)

Art. 511. Every owner of a piece of land has the right to construct within his property, reservoirs for
rain waters, provided he causes no damage to the public or to third persons. (416)

SECTION 4. - Subterranean Waters

Art. 512. Only the owner of a piece of land, or another person with his permission, may make
explorations thereon for subterranean waters, except as provided by the Mining Law.

Explorations for subterranean waters on lands of public dominion may be made only with the
permission of the administrative authorities. (417a)

Art. 513. Waters artificially brought forth in accordance with the Special Law of Waters of August 3,
1866, belong to the person who brought them up. (418)

Art. 514. When the owner of waters artificially brought to the surface abandons them to their natural
course, they shall become of public dominion. (419)

SECTION 5. - General Provisions

Art. 515. The owner of a piece of land on which there are defensive works to check waters, or on
which, due to a change of their course, it may be necessary to reconstruct such works, shall be obliged,
at his election, either to make the necessary repairs or construction himself, or to permit them to be
done, without damage to him, by the owners of the lands which suffer or are clearly exposed to suffer
injury. (420)

Art. 516. The provisions of the preceding article are applicable to the case in which it may be necessary
to clear a piece of land of matter, whose accumulation or fall may obstruct the course of the waters, to
the damage or peril of third persons. (421)

Art. 517. All the owners who participate in the benefits arising from the works referred to in the two
preceding articles, shall be obliged to contribute to the expenses of construction in proportion to their
respective interests. Those who by their fault may have caused the damage shall be liable for the
expenses. (422)
Art. 518. All matters not expressly determined by the provisions of this Chapter shall be governed by
the special Law of Waters of August 3, 1866, and by the Irrigation Law. (425a)

Land Ownership and Property Acquisition in the Philippines

In general, only Filipino citizens and corporations or partnerships with least 60% of the shares
are owned by Filipinos are entitled to own or acquire land in the Philippines. Foreigners or non-
Philippine nationals may, however, purchase condominiums, buildings, and enter into a long-term land
lease.
K&C assists foreigners, expatriates/expats, former Filipino nationals, OFWs, Balikbayans, and
corporations purchasing and acquiring real property in the Philippines and can provide relevant
information on Philippine laws and regulations regarding property purchase and acquisition, reviewal
of general contracts, asset protection contracts, deeds of sale, taxes, and entire estate planning. In
addition, we can introduce you to local real estate brokers to assist you in finding the type of property
you are looking for in the Philippines.
For Foreigners
Ownership of land in the Philippines is highly-regulated and reserved for persons or entities
legally defined as Philippine nationals or Filipino citizens. For this purpose, a corporation with 60%
Filipino ownership is treated as a Philippine national.
Foreigners or expats interested in acquiring land or real property through aggressive ownership
structures must consider the provisions of the Philippines’ Anti-Dummy Law to determine how to
proceed. A major restriction in the law is the restriction on the number of foreign members on the
Board of Directors of a landholding company (which is limited to 40% foreign participation). Another
concern is the possible forfeiture of the property if the provisions of the law are breached.
Exceptions to the restriction on foreign land Acquisition are the following:
1. Acquisition before the 1935 Constitution
2. Acquisition through hereditary succession if the foreigner is a legal or natural heir
3. Purchase of not more than 40% interest in a condominium project
4. Purchase by a former natural-born Filipino citizen subject to the limitations prescribed by law
(natural-born Filipinos who acquired foreign citizenship is entitled to own up to 5,000 sq.m. of
residential land, and 1 hectare of agricultural or farm land).
5. Filipinos who are married to aliens and able to retain their Filipino citizenship (unless by their
act or omission they have renounced their Filipino citizenship)
Land Ownership as a Corporation
Foreign nationals, expats or corporations may completely own a condominium or townhouse
in the Philippines. To take ownership of a private land, residential house and lot, and commercial
building and lot, they may set up a domestic corporation in the Philippines. This means that the
corporation owning the land has less than or up to 40% foreign equity and is formed by 5-15 natural
persons of legal age as incorporators, the majority of which must be Philippine residents.
Leasing of Real Estate Property
Leasing land in the Philippines on a long-term basis is an option for foreigners, expats or foreign
corporations with more than 40% foreign equity. Under the Investors’ Lease Act of the Philippines,
they may enter into a lease agreement with Filipino landowners for an initial period of up to 50 years
renewable once for an additional 25 years.
Owning Houses or Buildings
Foreign ownership of a house or building in the Philippines is legal as long as the foreigner or
expat does not own the land on which the house was built.
Owning Condominiums or Townhouses
The Condominium Act of the Philippines (RA 4726) expressly allows foreigners to acquire
condominium units and shares in condominium corporations up to 40% of the total and outstanding
capital stock of a Filipino-owned or controlled condominium corporation.
However, there are a very few single-detached homes or townhouses in the Philippines with
condominium titles. Most condominiums are high-rise buildings.
Being Married to a Filipino Citizen
If holding a title as an individual, a typical situation would be that a foreigner married to a
Filipino citizen would hold title in the Filipino spouse’s name. The foreign spouse’s name cannot be on
the Title but can be on the contract to buy the property. In the event of the death of the Filipino
spouse, the foreign spouse is allowed a reasonable amount of time to dispose of the property and
collect the proceeds or the property will pass to any Filipino heirs and/or relatives.
For Former Natural-Born Filipino Citizens

Any natural-born Philippine citizen who has lost their Philippine citizenship may still own
private land in the Philippines (up to a maximum area of 5,000 square meters in the case of rural
land). In the case of married couples, the total area that both couples are allowed to purchase should
not exceed the maximum area mentioned above.
Former Filipino Citizens, Balikbayans, and OFWs
Former natural-born Filipinos who are now naturalized citizens of another country can buy and
register, under their own name, land in the Philippines (but with limitations in land area). However,
those who avail of the Dual Citizenship Law in the Philippines can buy as much as any other Filipino
citizen. Under the Dual Citizenship Law of 2003 (RA 9225), former Filipinos who became naturalized
citizens of foreign countries are deemed not to have lost their Philippine citizenship, thus enabling
them to enjoy all the rights and privileges of a Filipino citizen regarding land ownership in the
Philippines.
How to Gain Dual Citizenship
If you are in the Philippines, file a Petition for Dual Citizenship and Issuance of Identification Certificate
(pursuant to RA 9225) at the Bureau of Immigration (BI) and for the cancellation of your alien
certificate of registration. Those who are not BI-registered and overseas should file the petition at the
nearest embassy or consulate.
Requirements:
1. Birth Certificate authenticated by the Philippine National Statistics Office (NSO)
2. Accomplish and submit a Petition for Dual Citizenship and Issuance of Identification Certificate
to a Philippine embassy, consulate or the Bureau of Immigration
3. Pay a US$50.00 processing fee, schedule, and take an “Oath of Allegiance” before a consular
officer
4. The Bureau of Immigration (BI) in Manila receives the petition from the embassy or consular
office. The BI issues and sends an Identification Certificate of Citizenship to the embassy or
consular office.
5. If a former Filipino who is now a naturalized citizen of a foreign country does not want to avail
of the Dual Citizen Law in the Philippines, he or she can still acquire land based on Batas
Pambansa (BP) 185 and RA 8179, but limited to the following:
For Residential Use (BP 185 – enacted in March 1982):
Up to 1,000 square meters of residential land
Up to one (1) hectare of agricultural of farmland
For Business/Commercial Use (RA 8179 – otherwise known as the Foreign Investment Act of 1991):
Up to 5,000 square meters of urban land
Up to three (3) hectares of rural land

3. PRESCRIPTION- Acquisition of Property By Prescription

In Intercontinental Broadcasting Corp. v. Panganiban, G.R. No. 151407, February 6, 2007, the SC had
the occasion to rule that like other causes of action, the prescriptive period for money claims is subject
to interruption, and in the absence of an equivalent Labor Code provision for determining whether the
said period may be interrupted, Article 1155 of the Civil Code may be applied, (De Guzman v. CA,
358 Phil. 397 (1998), to wit:

ART. 1155. The prescription of actions is interrupted when they are filed before the Court, when there
is a written extrajudicial demand by the creditors, and when there is any written acknowledgment of
the debt by the debtor.

Thus, the prescription of an action is interrupted by (a) the filing of an action, (b) a written
extrajudicial demand by the creditor, and (c) a written acknowledgment of the debt by the debtor. On
this point, the Court ruled that although the commencement of a civil action stops the running of the
statute of prescription or limitations, its dismissal or voluntary abandonment by plaintiff leaves the
parties in exactly the same position as though no action had been commenced at all. (Laureano v. CA,
381 Phil. 403 (2000).

Acquisition of property by laches.

In Sps. Aguirre v. Heirs of Lucas Villanueva, et al., G.R. No. 169898, October 27, 2006, the petitioners
have been in possession of a parcel of land for more than 26 years. They declared it for taxation
purposes, occupied it, built fences, planted trees and used the same as ingress and egress towards their
cottages. The respondent knew all these but they did not lift a finger to bar them from doing so. They
waited for 16 years to oust them. Will the action prosper? Why?
Held: No. Laches had already set it. Since they have been in continuous possession and enjoyment of
the disputed land in good faith and with a just title since 1971 until 1997, petitioners doubtlessly
obtained title by ordinary acquisitive prescription.
The action is barred by laches which is defined as the failure to assert a right for an unreasonable and
unexplained length or time, warranting a presumption that the party entitled to assert it has either
abandoned or declined to assert it. This equitable defense is based upon grounds of public policy,
which requires the discouragement of stale claims for the peace of society. (Vda. de Rigonan v.
Derecho, G.R. No. 159571, July 15, 2005, 463 SCRA 627).

Acquisition of property by prescription.

Prescription, in general, is a mode of acquiring (or losing) ownership and other real rights through the
lapse of time in the manner and under conditions laid down by law, namely, that the possession
should be in the concept of an owner, public, peaceful, uninterrupted and adverse. Acquisitive
prescription is either ordinary or extraordinary. Ordinary acquisitive prescription requires possession in
good faith and with just title for 10 years. Without good faith and just title, acquisitive prescription can
only be extraordinary in character which requires uninterrupted adverse possession for 30 years. (Heirs
of Maningding v. CA, 342 Phil. 567 (1979)).
Thus, for ordinary acquisitive prescription to set in, possession must be for at least 10 years, in good
faith and with just title. Possession is “in good faith” when there is a reasonable belief that the person
from whom the thing is received has been the owner thereof and could thereby transmit his
ownership. (Art. 1127, NCC). There is “just title” when the adverse claimant comes into possession of
the property through any of the modes recognized by law for the acquisition of ownership or other
real rights, but the grantor is neither the owner nor in a position to transmit the right. (Art. 1129,
NCC).