PROPERTY

Property = all things which are or may be the object of appropriation

Classifications of Property:
1. Immovable or Real v. Movable or Personal
Movable Immovable
Law Law of country where located Law of owner
Crime Usurpation
Forcible Entry and unlawful
detainer
Robbery or theft
Replevin or manual delivery
Procedure RTC where located Where plaintiff or defendant
resides
Contracts Real mortgage or antichresis Mutuum, voluntary deposit,
pledge
Donation Made in public instrument Made in private instrument if
more than P5,000
Prescription 4 years if in GF
8 years if in BF
10 years if in GF
30 years if in BF
Transactions Recorded in RD to affect 3
rd

persons
GR: No requirement
E: chattel mortgage

Immovable
a. By nature cannot be moved
b. By incorporation attached in a fixed manner to be an integral part
c. By destination placed for the utility it gives; 4 5 6
d. By analogy express provision of law

Following are immovable property:
1. Land, buildings, roads, and constructions of all kinds adhered to the soil;
2. Trees, plants, and growing fruits, while they are attached to the land or form
an integral part of an immovable;
3. Everything attached to an immovable in a fixed manner, in such a way that it
cannot be separated therefrom without breaking the material or deterioration
of the object;
4. Statues, reliefs, paintings or other objects for use or ornamentation, placed in
buildings or on lands by the owner of the immovable in such a manner that it
reveals the intention to attach them permanently to the tenements;
5. Machinery, receptacles, instruments or implements intended by the owner of
the tenement for an industry or works which may be carried on in a building or
on a piece of land, and which tend directly to meet the needs of said industry or
works;
6. Animal houses, pigeon-houses, beehives, fish ponds or breeding places of
similar nature, in cases their owner has placed htem or preserves them with the
intention to have them permanently attached to the land, and forming a
permanent part of it; the animals in these places are included;
7. Fertilizer actually used on a piece of land;
8. Mines, quarries, and slag dumps, while the matter thereof forms part of the
bed, and waters either running or stagnant;
9. Docks and structures which, though floating, are intended by their nature and
object to remain at a fixed place on a river, lake, or coast
10. Contracts for public works, and servitudes and other real rights over
immovable property.

Movable
a. By nature consumable or non-consumable
b. By intention fungible or non-fungible (can be substituted by another
thing of the same kind, quality and quantity)

2. Public Dominion or Private Ownership

Public Dominion outside the commerce of men intended for public use or
service

Patrimonial Property owned by state in its private character and can be
appropriated, includes those which have lost its public use or service
purpose

Private Ownership owned by private individuals either individually or
collectively, and patrimonial property of the State

OWNERSHIP

Ownership = independent and general right of a person to control a thing

Kinds of Ownership:
1. Full ownership includes all rights of an owner
2. Naked ownership excludes right to use and appropriate fruits
3. Sole ownership ownership is vested in one person
4. Co-ownership ownership is vested in several persons

Rights of an owner over the thing:
1. Possidendi right to possess
2. Utendi right to use or enjoy, includes
a. Right to exclude any person from enjoyment and disposal
b. Right to use reasonable force necessary to repel or prevent an
actual or threatened unlawful physical invasion or usurpation
(a) and (b) = Doctrine of Self-Help
c. Right to enclose or fence his property
d. Right not to use property in a manner to injure the rights of a
third person
3. Fruendi right to fruits
4. Accessionis right to accessories
5. Abutendi right to consume
6. Disponendi right to dispose
7. Vindicandi right to recover possession or ownership

Limitations on the Rights:
1. Cannot use his property in such manner as to injure the rights of other
people
2. Taxation
3. State of necessity or Doctrine of Incomplete Privilege
Cannot prohibit the interference of another if such is necessary to avert an
imminent danger and the threatened damage is much greater than the
damage that would arise on the property.

Owner may demand indemnity for the damage from the person benefited
by it.
4. Power of Eminent Domain
a. Taking done by a competent authority
b. There is necessity for the taking
c. For public use or purpose
d. Owner paid just compensation
e. Requirement of due process observed
5. Police Power
a. Condemned or seized by competent authority
b. For interest of health, safety or security
c. No compensation necessary

Presumption (disputable) of Ownership:
1. Actual possession
2. Claim of ownership

ACCESSION

Accession = that which is produced, incorporated or attached to the property,
either naturally or artificially
Not a mode of acquiring ownership because it presupposes existence of
ownership over the principal

Principles:
1. Accession follows the principal
2. Incorporation or union must be intimate that removal thereof will produce
substantial injury
3. Effect of GF or BF
GR: GF exonerates punitive liability; BF gives rise to liability
E: person, whether in GF or BF, is entitled to reimbursement for
a. Necessary expenses or preservation
b. Expenses for cultivation, gathering and preservation

Kinds of Accession:
1. Discreta products of a property = fruits
GR: All fruits belong to the owner of the property
E:
a. Possessor in good faith
b. Usufruct
c. Lease of rural lands
d. Pledge
e. Antichresis

Kinds of Discreta:
a. Natural fruit
i. Spontaneous products of the soil
Exists from the time:
1. Seedlings appear on the ground plants which produce
one crop then perish
2. Actual appearance on plants or trees for those which live
for years and give periodic fruits
ii. Young and other products of animals
Exists from the time they are already in the womb.

Owner of the mother is the owner of the young.
b. Industrial fruit = produced by lands through cultivation or labor
c. Civil fruit
i. Rents of buildings
ii. Price of leases
iii. Amount of perpetual or life annuities or similar income
2. Continua incorporated or attached to a property
a. Real property
i. Industrial = accessory follows the principal

Land Owner (LO) Owner of Materials (OM)
GF GF
Acquire the materials but must pay for
its value
Entitled to payment of the value of
materials
GF BF
Acquire materials without paying for
value PLUS entitled to damages due to
defects or inferior quality materials
Loses materials without indemnity

Liable for damages due to defects or
inferior quality materials
BF GF
Acquire materials with payment of its
value PLUS liable for damages
Entitled to payment of value of
materials PLUS damages
May remove the materials (whether it
may or may not cause substantial
injury)
BF BF
SAME as both are in GF





Land Owner (LO) Builder / Planter / Sower (BPS)
GF GF
1. Appropriate / purchase after payment
of indemnity which includes necessary,
useful and luxurious expenses

For luxurious expenses, he must choose
to appropriate such before he can be
made liable

2. Oblige to pay the price of land if value
of land is not considerably more, or pay
proper rent (sower)

3. Removal if BP cannot purchase land,
and ejectment if BPS cannot pay rent
1. Entitled to receive indemnity

Right of retention over the land without
obligation to pay rent until full payment
of indemnity

Remove useful improvement provided it
does not cause injury

2. Purchase land or pay rent

If BP cannot purchase land, he must pay
rent.

If BPS cannot pay rent, he will be
ejected
GF BF
1. Appropriate / purchase without
indemnity EXCEPT necessary
expenses, and luxurious expenses if
chosen PLUS entitled to damages

2. Compel BP to pay the price of land,
and S to pay proper rent PLUS damages

3. Demand demolition or removal of
work at the expense of BPS PLUS
entitled to damages

1. Without right to indemnity EXCEPT
reimbursement for necessary expenses
of preservation of land with no right of
retention PLUS liable for damages

Remove luxurious improvements if it
will not cause injury and LO does not
want to acquire it

2. Buy the land or pay for proper rent
PLUS liable for damages

3. Remove or demolish work at his
expense PLUS liable for damages
BF GF
Acquire materials with payment of its
value PLUS liable for damages


1. Entitled to payment of value of
materials PLUS entitled to damages

2. May remove the materials (whether it
may or may not cause substantial
injury)


Land Owner (LO) Owner of Materials
(OM)
Builder / Planter /
Sower (BPS)
GF GF GF
1. Acquire everything 1. Entitled to payment of 1. Entitled to payment of
upon payment of
indemnity and value of
materials

2. Oblige to pay the price
of land if value of land is
not considerably more, or
pay proper rent (sower)

indemnity from LO with
right of retention

2. Buy land or pay rent
materials from BPS

If BPS is insolvent, LO
will be subsidiarily liable
but with no right of
retention

2. Remove materials if it
will not cause injury
GF GF BF
SAME 1. Loses materials in
favor of BPS

2. No right to receive
indemnity
GF BF BF
1. Appropriate / purchase
without indemnity
EXCEPT necessary
expenses, and luxurious
expenses if chosen PLUS
entitled to damages

2. Compel BP to pay the
price of land, and S to pay
proper rent PLUS
damages

3. Demand demolition or
removal of work at the
expense of BPS PLUS
entitled to damages
1. Without right to
indemnity EXCEPT
reimbursement for
necessary expenses of
preservation of land with
no right of retention
PLUS liable for damages

Remove luxurious
improvements if it will
not cause injury and LO
does not want to acquire
it

2. Buy the land or pay for
proper rent PLUS liable
for damages

3. Remove or demolish
work at his expense
PLUS liable for damages
1. Entitled to indemnity
from BPS, LO will have
no subsidiary liability

2. No right of removal
even if it will not cause
injury

3. Liable to pay damages
due to defects or inferior
quality of materials

BF GF GF
Acquire everything with
payment of its value
PLUS liable for damages

Entitled to indemnity
plus damages
Entitled to receive
indemnity from BPS

If BPS is insolvent, LO
will be subsidiarily liable

BF GF BF
SAME as above No right to receive
indemnity
BF BF BF
SAME as all in GF

ii. Natural
1. Alluvion
a. Deposit or accumulation of soil must be gradual
and imperceptive
b. Accretion results from effects of current of
waters of river (exclusive work of nature)
c. Land where accretion takes place must be
adjacent to the bank of a river
d. Deposit of soil belongs to the owner of the
property where it was deposited
2. Avulsion

On Land
a. Segregation and transfer caused by the current
of a river, creek or torrent
b. It must be sudden or abrupt
c. Owner of the property from which it was
detached retains ownership
d. Owner thereof must remove it within 2 years
If not, ownership thereof will automatically
transfer over to the owner of the other estate
e. Detached portion can be identified

On Trees
a. Trees uprooted and carried away
b. Caused by current of waters
c. Must claim within 6 months
If not, ownership thereof will automatically
transfer over to the owner of the property which
it was cast
d. If original owner claimed it, he shall pay the
expenses incurred in gather or putting them in a
safe place
3. Change of river course
a. There must be a natural change in the course of
the waters of the river
b. Change was abrupt or sudden
c. Government (owner of the river) abandoned the
river bed because of the natural change of water
d. Belongs to the owners occupied by the new
course of the river in proportion to the area lost
e. Owners of the old bed shall have the right to
acquire the same by paying the value thereof
which shall not exceed the value of the area
occupied by the new bed
4. Formation of island
a. Through a current of river dividing itself
i. A current of river divides itself into
branches
ii. It caused the isolation of a piece of land
iii. Owner of the land retains his ownership
over all the lands even those which are
separated
b. Ownership of Islands
i. Government if formed on
1. Seas within the jurisdiction of
Philippines
2. Lakes
3. Navigable or floatable rivers
ii. Private property if formed on non-
navigable and non-floatable rivers
1. Nearest riparian owner or owner of
margin or bank nearest to it
2. Divided longitudinally in halves if in
the middle of the river
3. Riparian owner as to the length of
that portion of his property along the
margin of the river ipso jure if island
formed is longer than his property

b. Personal property
i. Adjunction
1. Union of two movables belonging to different owners
2. They form a single object
3. Inseparable that its separation would impair their nature
or result in substantial injury to either
4. Owner of the principal acquires the accessory
indemnifying the latter for its value

What is considered as principal?
1. Property where an ornament was attached or united to
2. If of unequal value, that of greater value
3. If of equal value, that of greater volume
4. For work of art, the paper / parchment, etc. is the
accessory

When separation is allowed:
1. Things united can be separated without injury their
respective owners can demand separation
2. Accessory is much precious than the principal owner of
accessory may demand separation even if it causes injury
to the principal



Owner of Principal (OP) Owner of Accessory (OA)
GF GF
Acquire the accessory with payment of
the value thereof

EXCEPT when accessory is more
precious than the principal
1. Entitled to indemnity

2. Demand to separate even if it causes
injury to the principal thing if accessory
is much more precious
GF BF
Acquire accessory PLUS entitled to
damages
Loses the thing and liable for damages
BF GF
Pays for the accessory PLUS liable for
damages
1. Demand OP to pay for the value
PLUS entitled to damages

2. Demand separation even if it causes
destruction of the principal PLUS
entitled to damages

ii. Mixture = two or more things belonging to different owners
are mixed or combined
1. Commixtion = mixture of solids
2. Confusion = mixture of liquids

Owner who Caused mixture (OC) Owner of thing Mixed (OM)
GF or by Chance GF or by Chance
Acquire a proportional right to the part belonging to him bearing in mind the value
of the things mixed or confused
BF GF
Loses the thing mixed or confused
PLUS liable for damages
Acquire the thing mixed PLUS entitled
to damages

iii. Specification = work of a person is done on the material of
another
Owner of Material (OM) Builder (B)
GF GF
1. Right to be indemnified for the value
of material

EXCEPT when material is more
precious than the transformed thing

2. Appropriate the new thing by
indemnifying the B for his work
1. Appropriate the thing transformed by
indemnifying the OM




2. Right to be indemnified
GF BF
1. Appropriate work without paying
indemnity PLUS entitled to damages
1. Loses work with no right to
indemnity

EXCEPT for artistic or scientific
reasons, the ting has a value
considerable higher than the material.
OM cannot appropriate the work

2. Demand indemnity for material
PLUS entitled to damages

Pay for materials and damages




2. Pay indemnity and damages

CO-OWNERSHIP

Co-ownership = whenever an undivided thing or right belongs to different persons
a. Plurality of owners
b. Object of ownership must be an undivided thing or right
c. Each co-owners right must be limited only to his ideal share of the
physical whole

Sources of Co-ownership:
a. Contract
b. Law
c. Succession
d. Testamentary disposition or donation inter vivos
e. Fortuitous event or by chance commixtion or confusion by chance
f. Occupancy

Rights of a Co-owner:
a. Owner of the whole undivided thing or right, and at the same time owner
of his ideal part thereof
b. Full ownership of the fruits and benefits pertaining thereto
c. Right of legal redemption in case shares of all are sold to a third person
If price is grossly excessive, he shall pay only a reasonable price.

Exercised within 30 days from notice.
d. May alienate, assign or mortgage his ideal interest or share independently
of the others
e. May substitute another person in the enjoyment of his part EXCEPT
when personal rights are involved
f. Share in the benefits as well as charges shall be proportional to his
respective interest
Stipulation to the contrary is void.
g. May use the thing in common
1. He does so in accordance with the purpose for which it is intended
2. In such a way as not to injure the interest of co-ownership, or
3. In such a way as not to prevent others from using it according to their
rights
h. Bring an action for ejectment
GR: Adverse decision is not necessarily res judicata on the other co-owners
who were not made parties thereto

E: action was instituted in their behalf with their express or implied
consent
i. Compel others to contribute to the expenses of preservation and taxes
Only with regard to necessary expenses and useful expenses if the latter
was incurred with the consent of the others
j. Renounce so much of his undivided interest equivalent to his share of the
expenses and taxes to exempt himself from such obligation
k. Cause the repair for preservation but he must, if practicable, first notify the
others of the necessity of the repair
l. Demand Partition

Partition may be by agreement of parties or judicially.

Instances when partition cannot be demanded:
1. Agreement among co-owners to keep the property undivided for a
certain period of time but not exceeding 10 years

After the 10 year period, agreement not to partition will no longer
bind the parties UNLESS they renew.
2. Partition is prohibited by the donor or testator for a period not
exceeding 20 years

After 20 year period, the imposition not to partition will no longer
bind the heirs UNLESS heirs agree not to partition which will not
exceed 10 years but subject to renewal.
3. Partition is prohibited by law
4. Property is not subject to a physical division and to do so would
render it unserviceable for the use which it is intended

Assignment or Sale (must be asked by one of the co-owners) of the
property will be in order.

5. Condition imposed upon voluntary heirs before they can demand
partition has not yet been fulfilled

Prescription:
GR: Imprescriptible

E: Prescription will run against his co-owners so long as he expressly or
impliedly repudiates the co-ownership and such is made known to the
others

Creditors cannot impugn the partition already executed or implemented
UNLESS there has been fraud.

Effects of Partition:
1. Mutual accounting for benefits received
2. Reimbursements for expenses made
3. Pay for damages caused by reason of his negligence or fraud
4. Liable for defects of title and quality of the portion assigned to each

Consent in the Co-ownership:
a. Purpose of co-ownership may be changed by agreement, express or
implied
b. Expenses to improve or embellish the property shall be decided upon by
the majority
c. Alterations to be made in the co-owned property must be with unanimous
consent of all co-owners as this amount to act of ownership

The co-owner who made such alteration without the consent of others acts
in bad faith shall:
1. Lose what he has spent
2. Obliged to demolish the improvement done
3. Liable to pay for loses and damages which the property may have
suffered
d. For administration and better enjoyment of the co-owned property,
resolutions of the majority shall be binding

Majority = co-owners who represent the controlling interest in the co-
owned property

Appointment of an Administrator when proper:
a. Majority consent for the administration and better enjoyment of the co-
owned property was not achieved
b. Majority resolution is prejudicial to those interested in the co-owned
property

Termination of the Co-ownership:
a. Consolidation or merger of all interests in one of the co-owners
b. Destruction or loss of the co-owned property
c. Acquisitive prescription in favor of 3
rd
person
d. Co-owner repudiates the co-ownership
e. Partition
f. Termination of period agreed upon or imposed by donor or testator, or of
period allowed by law
g. Sale by co-owners of the co-owned property and distribution of its
proceeds among them

POSSESSION

Possession = holding of a thing or enjoyment of a right
a. Right TO possession incidence of ownership
b. Right OF possession independent of ownership e.g. ownership belongs
to one while property is held by another

Only things and rights which are susceptible of being appropriated may be the
object of possession.

Elements:
1. Holding or control of a thing or right possession in fact
a. Actual possession occupancy in fact of the whole or
substantially the whole
Actual and physical possession.
b. Constructive possession occupancy in part where the law
extends the occupancy to the possession of the whole
2. With intent to possess (animus possidendi)
Insane and demented persons cannot acquire possession as they are
incapable of understanding their actions.
3. In ones own right
a. In ones name concept of an owner
b. In anothers name concept of a holder

Forms or degrees of possession:
1. Possession without any title thief or robber
2. Possession with a juridical title lessee, usufructuary, etc.
3. Possession with a just title
4. Possession with a title in fee simple

Kinds of Possessor:
1. Possessor in Good Faith one who is unaware that there exists in his title
or mode of acquisition any flaw which invalidates it

GF is always presumed and the one who challenges it has the burden of
proof.

Can become a possessor in BF from the moment he becomes aware of any
flaw to this title or mode of acquisition.

Mistake upon a doubtful or difficult question of law may be the basis of
good faith.

2. Possessor in Bad Faith one who is aware that there exists a flaw in his
title or mode of acquisition

Tacking of Possession = adding on of the period of possession of a previous
possessor to the period of successor
Allowed only if there is privity of relationship between predecessor and
successor

Rules on tacking:
a. When both predecessor and successor are in GF
Add periods of each and determine whether acquisitive prescription has set
in, 4 years for movable and 10 years for immovables.

b. When both predecessor and successor are in BF
Add periods of each and determine whether acquisitive prescription has set
in, 8 years for movable and 30 years for immovables.

c. When predecessor in GF and successor in BF
Ratio to be used; movables 2:1 while immovables 3:1.

Multiply years of predecessor with the ratio (2 or 3), add it to the years of
the successor then determine whether acquisitive prescription has set it (8
and 30 years).

d. When predecessor in BF and successor in GF
Ratio to be used; movables 2:1 while immovables 3:1.

Divide years of predecessor with the ratio (2 or 3), add it to the years of
the successor then determine whether acquisitive prescription has set it (8
and 30 years).

ACQUISITION OF POSSESSION

Ways of Acquiring Possession:
1. Material occupation or exercise of a right

Material occupation by delivery:
a. Actual
b. Constructive
i. Tradicion Brevi Manu
One already in possession by a title, other than ownership,
continues to possess the same under a new title, that of
ownership; e.g. lessee who bought the house
ii. Tradicion constitutum possessorium
Owner continues in possession of property alienated not as an
owner but in some other capacity; e.g. owner who sold the house
but rented the same
2. Subjection of the thing or right to our will
a. Tradicion longa manu
Effected by mere consent or agreement of the parties
b. Tradicion simbolica
Effected by delivering an object that represents the thing
3. Proper acts and legal formalities established for acquiring such right of
possession

Persons who can Acquire Possession:
1. Same person who is to enjoy it
2. His legal representative or through his agent
Minors and incapacitated persons may acquire possession with the
assistance of their legal representatives.
3. Unauthorized person or any person without any power whatever
Possession can only be acquired until the person in whose name that act of
possession was executed has ratified the same

Possession of hereditary property
1. Deemed transmitted to the heir without interruption and from the moment
of death of decedent in case inheritance was accepted
2. One who validly renounces an inheritance is deemed never to have
possessed the same
3. One who succeeds shall not suffer the consequences of the wrongful
possession of the decedent UNLESS he is aware of the flaws affecting it

Acts which do not give rise to possession:
1. Possession acquired through force or intimidation as long as there is a
possessor who objects to it
2. Acts merely tolerated
Possession by tolerance cannot ripen to ownership by prescription.
3. Acts executed clandestinely (secretly) and without knowledge of the
possessor

Co-Possession = possession as a fact at the same time in two personalities

Preference of Possession in case a dispute arises regarding the fact of possession:
1. Present or actual possessor preferred
2. If there are two possessors, one longer in possession
3. If dates of possession are the same, one who presents a title
4. If all conditions are equal, thing shall be judicially deposited ending
determination of its possession or ownership

Some concepts of Possession:
1. Possession alone is insufficient to acquire title to alienable lands of public
domain because the law requires possession and occupation
2. Actual possession of land = manifestation of acts of dominion over it

EFFECTS OF POSSESSION

Rights of every possessor:
1. Be respected in his possession
2. Be protected in or restored to said possession by legal means if disturbed
3. Secure from court a proper writ to restore him in his possession in an
action for forcible entry

Possession acquired and enjoyed in the concept of an owner may ripen into
ownership by means of prescription.
He has in his favor the legal presumption that he possesses with a just title
and cannot be obliged to show or prove it EXCEPT when he possesses the
property adversely

Different kinds of titles:
1. True and Valid
Sufficient to transfer ownership without need of possession the property
for the period necessary for acquiring title by prescription.

No need for prescription, ownership is transferred once mode of transfer
has been perfected.
2. Just Title
Adverse claimant came into possession through one of modes for
acquisition of ownership but grantor was not owner or could not transmit
any right.

3. Colorable Title
Acquiring a thing in good faith from one who is not the owner but whom
he believes to be the owner.

There is need for prescription to transfer ownership.
4. Putative Title
Person believes he has title but in fact does not because there was no mode
of acquiring ownership.

Interruption of Possession
Whether whole or part shall be prejudicial to all the possessors
In civil interruption, only those possessors served with judicial summons
are affected

Entitlement to Fruits:
Kinds of Fruits Possessor in GF Possessor in BF
Civil fruits Entitled from the start
of possession until legal
interruption
Not entitled to fruits.

Liable for damages in the form of
rental from time possession
started until it is finally defeated
Natural /
Industrial Fruits

a. Gathered














Right to retain fruits














Must account for fruits and
return value of fruits actually
received and fruits which legal
possessor could have received
with due care and diligence

Pay damages as reasonable rent
for term of possession.

Entitled to necessary expenses
for preservation, cultivation and
gathering of fruits.

b. Pending

1. Pro-rating based on
period of possession


2. Allow possessor to
stay in possession until
after all fruits are
gathered (indemnity)

No rights, not even
reimbursement for necessary
expenses

Must pay damages as reasonable
rent for term of possession

Entitlement to Expenses:
Expenses Possessor in GF Possessor in BF
Necessary
Expenses
Entitled to reimbursement

Right of retention pending full
reimbursements
Entitled to
reimbursement

No right of retention;
must vacate property
(recourse is to file
collection case)

Liable for damages as
reasonable rent for
period of possession
Useful expenses 1. Reimbursement of either (a)
amount spent or (b) increase in
value with right of retention with
full payment.

2. Allow possessor to remove
provided no substantial damage
or injury is caused
No rights
Luxurious
expenses
1. Allow possessor to remove
ornaments if the principal suffers
no injury


2. Retain the ornament by
refunding the amount spent for
the ornament
1. Allow possessor to
remove ornaments if the
principal suffers no
injury

2. Retain the ornament
by refunding the value of
the ornament at the time
owner enters into
possession (which means
depreciated value)
Deterioration
or Loss
No liability unless due to
fraudulent intent or negligence
after service of judicial summons
Always liable whether
before or after service of
judicial summons, for
any cause, even
fortuitous event.

Liabilities:
1. Costs of litigation over property shall be borne by every possessor
2. One who recovers possession not obliged to pay for improvements which
have ceased to exist at time he takes possession of the thing

Present possessor who shows his possession at some previous time is presumed to
have held possession also during the intermediate period in the absence of contrary.

How possessor may lose his possession:
1. Abandonment
2. Assignment made to another either by onerous or gratuitous title
3. Destruction or total loss of thing, or because it goes out of commerce
4. Possession of another if new possession has lasted longer than 1 year
EXCEPT if only by mere tolerance
Real right of possession is not lost till after lapse of 10 years. Only refers
to personal property.

Possession of movables is not deemed loss if they remain under the control of the
possessor even though at the time being, he may not know their whereabouts.

Possession of movable acquired in GF is equivalent to a title.
One who has lost a movable or has been unlawfully deprived thereof may
recover it from current possessor
If new possessor acquired it in GF at a public sale but it was lost which
owner has been unlawfully deprived thereof, owner must reimburse the
price paid to recover it

Remedies:
Action Manner of
deprivation
Court Kind of
possession
sought to
be
recovered
Presciption
Replevin
Forcible Entry FISTS MTC Material
possession
1 year
Unlawful
Detainer
Unlawfully
withholds possession
after expiration of
right to hold it
MTC
Publiciana FE or UD but
exceeded the 1 year
prescriptive period
RTC Better
right to
possess
10 years
Reinvindicatoria RTC Ownership 4 years from
discovery of
fraud


USUFRUCT

Usufruct = right to enjoy the property of another, including its fruits, with the
obligation of preserving its form and substance

Characteristics of Usufruct:
1. A real right of use and enjoyment
2. Temporary in duration
3. Transmissible
4. May be constituted on real or personal property
5. Ownership of the property is vested in another

How Usufruct is Created:
1. Law
2. Will of the parties expressed in acts inter vivos or in last will and
testament
3. Prescription

Kinds of Usufruct:
1. Extent of object
a. Total constituted on the whole
b. Partial constituted only on a part of a thing
2. Number of beneficiaries
a. Simple or One
b. Multiple
i. Simultaneous
ii. Successive
3. Effectivity or extinguishment
a. Pure
b. With a term suspensive or resolutory
c. Conditional suspensive or resolutory
4. Subject matter
a. Tangible property over things
b. Intangible property which are intransmissble over rights

RIGHTS OF USUFRUCTUARY

Rights of a Usufructuary:
1. Be entitled to personally enjoy the thing in usufruct
2. Be entitled to alienate his right of usufruct even by a gratuitous title
All contracts entered thereto shall terminate upon termination of the
usufruct.

EXCEPT lease of rural lands which shall subsist during the agricultural
year.

Owner may alienate the property EXCEPT he cannot alter its form or
substance, or do anything which may be prejudicial to the usufructuary.
3. Be entitled to all natural (N), industrial (I) and civil (C) fruits of the
property

To whom NI fruits belong?
b. NI growing at the time usufruct begins ! usufructuary who is not
bound to refund to the owner the expenses of cultivation and
production incurred

EXCEPT when expenses were incurred by third person
c. NI growing at the time usufruct terminates ! owner BUT obliged
to reimburse usufructuary the ordinary cultivation expenses out of
the fruits received

To whom C fruits belong?
C fruits accrue daily and thus belong to the usufructuary
4. Be entitled to ! of the value of the hidden treasure found on the land or
tenement
5. Be entitled to lease the land or tenements
If usufruct expires before the termination of lease, he or his heirs and
successors shall receive only the proportionate share of rent
6. Be entitled to receive rent or periodical pension, whether in money or
fruits, or interest on bonds or securities payable to bearer when usufruct
was constituted thereto
Each payment due = proceeds or fruits of such right
7. Be entitled to enjoy any increase in thing through accession or servitudes
established in its favor
8. Be entitled to make use the things which may gradually deteriorate
through wear and tear without it being consumed
Usage must be in accordance with the purpose for which it was intended.
9. Be entitled to use the things which cannot be used without being
consumed
10. Be entitled to institute an action in his name to recover real property or
right, or any movable property
a. Oblige the owner to give him authority for this purpose
b. Oblige the owner to furnish him whatever proof he may have

If in consequence of the action, he acquires the thing claimed, he shall be
limited to the fruits only and dominion thereof remains with the owner.
11. Be entitled to make useful improvements or expenses for mere please as he
may deem proper
a. Such shall not alter its form or substance
b. He shall not be indemnified therefor
c. He may remove such provided it shall be possible to do so without
damage to the property
12. Be entitled to set off the improvements he may have made, those which
have increased the value of the property, against any damage on the
property
13. Be entitled to right of retention even after termination until he is
reimbursed for the increase in value of the property cause by extraordinary
repairs for preservation when such is indispensable and was made by the
usufructuary due to the refusal of the owner to do so

Some Obligations of a Usufructuary:
1. On things which may gradually deteriorate through wear and tear without
it being consumed
a. Be obliged to return it in their condition at the time of termination of
the usufruct
b. Be obliged to indemnify the owner for any deterioration it may have
suffered by reason of his fraud or negligence
2. On things which cannot be used without being consumed
a. Be obliged to pay their appraised value at the time of termination of
usufruct if they were appraised when delivered
b. Be obliged to return at the same quantity and quality or pay the
current price at the time termination of usufruct if it was not appraised

OBLIGATIONS OF THE USUFRUCTUARY

Before usufruct begins:
1. Make an inventory of all the property
a. Which shall contain an appraisal of movables and description of
condition of immovables
b. After notice to the owner or his legitimate representative

When obligation to make inventory not applicable:
a. Naked owner renounces or waives his right to an inventory
b. Title constituting the usufruct relieves him from the obligation
c. Usufructuary asks that he be exempt and no one will be injured
thereby
2. Give security which binds himself to fulfill the obligations imposed upon
him; after this has been given, he shall have the right to all proceeds and
benefits from the day he should have commenced to receive them.

When obligation to give security not applicable:
a. Naked owner waives his right to a security
b. Donor who has reserved the usufruct of the property donated
c. Parents who are usufructuaries of their childrens property
EXCEPT when parents contract a second marriage

When he fails to give security, owner may: (in either case, interest on the
proceeds thereof shall belong to the usufructuary)
A. Demand that:
a. Immovables be placed under administration
b. Movables be sold
c. Public bonds, instruments of credit payable to order or bearer be
converted into registered certificate or deposited in a bank or
public institution
d. Capital or sums in cash and proceeds of sale of movable be
invested in safe securities
B. Retain in his possession the property in usufruct as administrator
a. If he so prefers and until the usufructuary gives security or is
excused from so doing
b. Subject to the obligation to deliver net proceeds thereof after
deducting the sums which may be agreed upon or judicially
allowed him for such administration

Sworn undertaking in lieu of security allowed for humanitarian
considerations.

During usufruct:
1. Take care of the things given in usufruct as a good father of a family =
ordinary diligence
2. Answer for any damage which the thing may suffer through the fault or
negligence of the person who substitutes him

In case he alienates or leases his right of usufruct.
3. Replace flock or herd of livestock with the young of the animals that die
each year from natural causes or are lost due to rapacity of beasts of prey

If all animals perish without fault or on account of some contagious disease
or uncommon event, he shall deliver to the owner the remains which may
have been saved from misfortune.

If animals perish in part by accident and without fault, usufruct shall
continue on the part saved.
4. Make ordinary repairs required by the wear and tear due to natural use of
the thing and are indispensable for its preservation

If he fails to do so after demand by the owner, owner may make them at
the expense of the usufructuary.
5. Notify the owner when extraordinary repairs are needed and urgent

Extraordinary repairs shall be at the expense of the owner BUT with right
to demand legal interest on amount expended for the time that the
usufruct lasts.

If owner fails to make the same when they are indispensable for
preservation of the thing, usufructuary may make them WITH right to
demand the increase in value which the immovable may have acquired by
reason of the repairs, at the termination of usufruct.
6. Not prejudiced by the acts of the owner

Owner may construct any works and make any improvements on the
immovable or make new plantings if it is rural provided that such acts do
not cause a diminution in value of usufruct.
7. Payment of annual charges and taxes considered as a lien on the fruits

Taxes imposed directly on the capital is at the expense of the owner.
8. Liability of the usufructuary for debts of the naked owner is the same as
that of the donee

When usufruct is constituted on the whole of a patrimony = one which
covers the entire patrimony of the owner.
9. Claim matured credits which form part of usufruct if he has given or gives
the proper security and may use the capital he has collected in any manner
he deems proper.

If he is excused or what he has given is insufficient, he may claim it after
authorization from owner or of the courts, and shall invest it at interest
upon agreement with the owner, or with judicial authorization in default
thereof.
10. Not oblige to pay debt for security of which the mortgage was constituted
if it is a usufructuary of a mortgaged immovable
11. Oblige to notify the owner of any act of a third person which he has
knowledge of that may be prejudicial to the rights of ownership

Failure to do so will render him liable for damages.
12. Expenses, costs and liabilities in suits brought with regard to usufruct will
be borne by usufructuary

Termination of usufruct:
1. Return the thing in usufruct to naked owner unless there is a right of
retention
After delivery, security or mortgage shall be cancelled.
2. Pay legal interest for the time usufruct lasts on amount spent by owner for
extraordinary repairs and on sums paid as taxes
3. Indemnify naked owner for any losses due to his negligence or of his
transferees

TERMINATION OF USUFRUCT

Modes of extinguishment:
1. Death of usufructuary UNLESS contrary intention appears
2. Expiration of period for which it was constituted
3. Fulfillment of any resolutory condition provided in the title creating the
usufruct
4. Merger of usufruct and ownership in the same person
5. Renunciation of usufructuary
6. Total loss of thing in usufruct
7. Termination of right of person constituting the usufruct
8. Prescription
9. Other causes

Thing lost only in part, right of usufruct continues on remaining part.

Bad use of usufruct will not extinguish the right.

Notes regarding Constitution of Usufruct:
1. In favor of a town, corporation or association for more than 50 years
before expiration of such period, town is abandoned or corporation
dissolved, usufruct shall be extinguished by reason thereof
2. For the time that may elapse before a third person attains a certain age
continues for the years specified even if the person should die before its
expiration UNLESS it has been granted only in consideration of the
existence of such person
3. On immovable property of which a building forms part if building is
destroyed, usufructuary shall have the right to make use of the land and
materials thereon
4. On building only and such is destroyed if owner wish to construct
another building, usufructuary shall have right to occupy the land and
make use of materials
5. Usufructuary shares with owner the insurance of usufruct in case of loss,
usufructuary shall continue in the enjoyment of new building if one is
constructed OR receive interest on insurance indemnity if owner does not
wish to rebuild
6. Usufructuary refused to contribute to the insurance in case of loss, owner
shall receive full amount of insurance indemnity
7. Usufruct expropriated for public use owner be obliged to replace it with
another thing of same value and similar conditions OR pay usufructuary
legal interest on the amount of indemnity for whole period of usufruct
8. In favor of several persons living at the time of its constitution not
extinguished until death of last survivor

EASEMENT

Easement (right enjoyed by one) or Servitude (burden imposed upon another) = an
encumbrance imposed upon an immovable (servient estate) for the benefit of
another immovable belonging to a different owner (dominant estate)

Servitudes may be established for the benefit of:
a. Particular estate and consequently for its owner
b. Community or of one or more persons to whom encumbered estate does
not belong





Kinds of Easements:
1. Continuous or Discontinuous
Continuous (CE) Discontinuous (DE)
Use of which is or may be incessant
WITHOUT intervention of any act
of man
Used at intervals and depend upon
the acts of man
e.g. right to support a bean on
anothers wall or right of aqueduct
e.g. right of way
Burden and benefit exist from moment easements are created

2. Apparent or Non-Apparent
Apparent (AE) Non-Apparent (NAE)
Those which are made known and
are continually kept in view by
external signs that reveal the use
and enjoyment of it
Those which show no external
indication of their existence

3. Positive or Negative
Positive (PE) Negative (NE)
Imposes upon servient estate the
obligation of allowing something to
be done or of doing it himself
Prohibits servient estate from doing
something which he could lawfully
do if easement did not exist

4. Legal v. Voluntary
Legal (LE) Voluntary (VE)
Established by law Established by will of the owners

Characteristics of Easements:
1. Inseparable from the estate to which they actively or passively belong
2. Intransmissible they cannot be alienated or mortgaged independently of
the estate
3. Indivisible

If servient estate divided between two or more persons AND easement is
not modified each must bear it on the part which corresponds to him

If dominant estate divided between two or more persons WITHOUT
changing the place of its use or making it more burdensome each may
use the easement in its entirety

MODES OF ACQUIRING EASEMENTS
Modes Kind of Easement
Title ALL
a. CE and AE
b. CE and NAE
c. DE, whether apparent
or not
Title = juridical act which
gives birth to the
easement, e.g. law or
contract
Prescription of 10 years Continuous and Apparent
easements ONLY
10 years regardless of GF
or BF and whether or not
he has a just title

Computation of Time:
a. PE day which DoE or
person who may have
made use of easement
commenced to exercise it
upon SE
b. NE day on which
DoE forbade, by a
notarized instrument, SE
from executing an act
which would be lawful
without such easement

For easement of light and
view:
a. Time of opening of
window if through a
party wall
b. Time of formal
prohibition upon
proprietor of adjoining
land if window is through
a wall on DoE
Deed of Recognition Used to cure the absence
of a document or proof
showing origin of an
easement which cannot be
acquired by prescription.

Deed is made by the
owner of SE.
Final Judgment
Apparent sign established
by owner of two
adjoining estates
Considered as a title, in case either estates be alienated,
in order that easement may continue actively and
passively UNLESS contrary is provided at the time of
division or sign thereof was removed before execution
of deed

RIGHTS AND OBLIGATIONS OF DOMINANT AND SERVIENT ESTATES

Dominant Estate:
Rights Obligations
1. Exercise all rights necessary for use
of easement
1. Contribute to expenses incurred
should there be several DoEs
2. Make on SE any works necessary for
use and preservation of servitude
a. At his own expense

b. Without altering it or rendering it
burdensome
c. With notification to owner of SE
d. Choose most convenient time and
manner as to cause least inconvenience
to owner of SE
3. Renounce the easement for benefit of
others if he wish not to contribute or
exempt himself from the payment of
expenses


Servient Estate:
Rights Obligations
1. May use the easement on any manner
whatsoever
1. BUT obliged to contribute to
expenses in proportion thereof
UNLESS there is an agreement to
the contrary
2. May change the use at his expense
IF
a. it should become very inconvenient for
SE, or
b. prevent him from making any
important works, repairs or
improvements thereon
BY REASON OF
a. place originally assigned, or
b. manner established for use of
easement
PROVIDED THAT
a. he offers another place or manner
equally convenient
b. in such a way that no injury is
caused to owner of DoE or those
who may have a right to use the
easement
2. Cannot impair the use of
servitude in any manner
3. Retains ownership of portion on which
easement is established


MODES OF EXTINGUISHMENT OF EASEMENTS

MODES
1. Merger in same person of ownership
of DoE and SE
Not necessary that it be with respect to
full extent of tenement but only with
respect to that part affected by servitude

If SE becomes a co-owner of DoE, there
is no merger for he has acquired only a
part interest
2. Non-user for 10 years DE computed from day on which they
ceased to be used

CE computed from day on which an
act contrary to same took place
3. Either or both estates fall into such
conditions that easement cannot be used
(impossibility of use)
It shall be revived if subsequent
condition of estates or either of them
should again permit its use UNLESS
when use becomes possible but sufficient
time for prescription has elapsed
4. Expiration of term or fulfillment of
condition

5. Renunciation of owner of DoE Waiver must be specific, clear and
express
6. Redemption agreed upon between
owners of DE and SE


LEGAL EASEMENTS

Kinds of Legal Easements:
1. Public legal easement for public or communal use
2. Private legal easement for interest of private persons or private use
a. Waters

Lower estates are obliged to receive waters which naturally and
without intervention of man descend from higher estates as well as the
stones and earth which they carry with them.

Duties of owner of estate:
i. Lower estate cannot construct works which will impede easement
ii. Higher estate cannot make works which will increase the burden

Abutement of buttress of a dam:
Person who needs to build a dam to divert or take water from
river or brook but is not the owner of banks or lands which
support the dam
Must seek permission of the owner, and in case of refusal, he must
secure authority from proper admin agency
If construction is unauthorized, it shall be considered as a private
nuisance and may be lawfully destroyed or removed

Easement of Aqueduct:
a. Any person who may wish to use upon his own estate any
water which he can dispose and that it is sufficient for the use
for which it is intended
b. Show that proposed right of way is most convenient and least
onerous to third persons
c. Indemnify owner of SE in manner determined by laws and
regulations
Cannot be imposed on buildings, courtyards, annexes or
outhouses or on orchards or gardens already existing
This does not prevent owner of SE from closing or fencing it
Considered as CE an AE
b. Right of way

The right granted by law to owner of an estate which is surrounded
by other estates belonging to other persons and without adequate
outlet to a public highway to demand that he be allowed a passageway.

Easement must be established at the point least prejudicial to the SE.

Right can be acquired only after proper indemnity has been paid.
a. If passage is continuous and permanent value of land occupied
plus amount of damages caused to SE
b. If temporary payment of damage caused to SE

Responsibility for repairs and taxes:
a. DoE shall make necessary repairs if right of way is permanent
b. SE pays all the taxes because he retains ownership of passageway

Extinguishment of Compulsory Easement of Right of Way:
a. Joining of isolated estate to another abutting a public road

Extinguishment must be demanded before DoE can demand the
return of indemnity.
b. Opening a new road which gives access to the estate

c. Party wall
A common wall which separates two estates, built by common
agreement at the dividing line such that it occupies a portion of both
estates on equal parts.

Existence of easement of party wall is presumed UNLESS there is a
title, or exterior sign, or proof to the contrary.

When is it presumed?
a. In dividing walls of adjoining buildings up to point of common
elevation
b. In dividing walls of gardens or yards situated in cities, towns, or
rural communities
c. In fences, walls and live hedges dividing rural lands

Cost of repairs and construction shall be borne by all owners of the
lands having such in their favor and in proportion to the right of each.

Any owner may exempt himself from contributing by renouncing his
part of ownership EXCEPT when party wall supports a building
belonging to him.

Increasing the height of a party wall:
a. He must do so at his own expense
b. Pay for any damage that it may cause
c. Bear the cost of maintaining the portion added
d. Pay the increased cost of preservation of the wall
d. Light and view

Right to make openings or windows to enjoy the view through the
estate of another and power to prevent all constructions or works
which would obstruct such view or make the same difficult.
e. Drainage

Right to divert or empty the rain waters from ones own roof or shed
to neighbors estate either drop by drop or through conduits.
f. Intermediate distances
g. Against nuisance
h. Lateral and subject support

VOLUNTARY EASEMENTS

Who may establish a voluntary easement?
a. Owner
b. One acting in his name and under owners authority
c. Beneficial owner temporary easement consistent with his right as such
and subject to termination upon extinguishment of usufruct

If perpetual, consent of both owners is necessary.

NUISANCE

What is nuisance?
Any act, omission, establishment, business, condition of property or anything
else which:
a. Injures or endangers health or safety of others
b. Annoys or offends the senses
c. Shocks, defies or disregards decency of morality
d. Obstructs or interferes with free passage of any public highway or
street or any body of water
e. Hinders or impairs the use of property





Kinds of Nuisance:
1. Public or Private
Public Private
Affects community or neighborhood
or any considerable number of
persons
One which violates only private
rights and produces damage to but
one or few personas
Indictable Actionable

Either for abatement or damages,
or both
Remedies:
a. Prosecution under RPC or local
ordinance
b. Civil action commenced by city
or municipal mayor or private
person if it is especially injurious to
himself
c. Abatement without judicial
proceedings
Remedies:
a. Civil action
b. Abatement without judicial
proceedings
District health officer shall:
a. Take care that one or all of
remedies are availed of
b. Determine whether or not
abatement without judicial
proceedings is the best remedy

Private person or public official extrajudicially abating a nuisance shall be
liable for damages IF:
a. He causes unnecessary injury
b. An alleged nuisance is later declared by the courts to be not a real
nuisance

2. Per se or Per accidens
Per Se Per Accidens
Act, occupation, or structure which
unquestionably is a nuisance at all
time and under any circumstances

Nuisance because of its inherent
qualities
That which becomes a nuisance by
reason of circumstances, location or
surroundings
Affects the immediate safety of
persons and property


3. Attractive Nuisance
One who maintains on his premises dangerous instrumentalities or
appliances of a character likely to attract children in play, and who fails to
exercise ordinary care to prevent children from playing therewith.

EXCEPT: bodies of water, artificial or natural, in the absence of some
unusual condition

MODES OF ACQUIRING OWNERSHIP

Mode = proximate cause which produces a real right

Title = remote cause which serves merely to give the occasion for acquisition or
existence

How Ownership can be Acquired?
1. Occupation
2. Intellectual creation
3. Law e.g. hidden treasure or river beds
4. Donation
5. Succession, testate or intestate
6. Tradition in consequence of certain contracts symbolic or legal
acquisition
7. Prescription

OCCUPATION

Occupation = mode of acquiring ownership of corporeal personal property,
susceptible of appropriation by nature, which have no owner with the intention of
acquiring the ownership thereof

What can be acquired by occupation?
1. Animals that are object of hunting and fishing

Right to hunt and fish is regulated by special laws.

Owner of swarm of bees:
a. Has right to pursue them in anothers land
b. Indemnifying the latter for damage

If owner has not pursued or ceases to do so for 2 consecutive days,
possessor may occupy or retain the same.
Owner of domesticated animals:
a. Claim them within 20 days from their occupation by another
b. If period has expired, they shall pertain to him

With respect to domestic animals, he can claim them even beyond 30
days from their occupation UNLESS there is abandonment on his
part.

Pigeons and fish:
a. Which from their respective breeding places pass to another
pertaining to different owner shall belong to the latter
b. Provided they have not been enticed by some article of fraud
2. Hidden treasure ! share UNLESS trespassing
3. Abandoned movables
There is abandonment when the expectation to recover is gone and the
intention to have it returned is finally given up by the owner.

Finding a movable that is not a treasure:
a. Must return it to its previous possessor
b. If previous possessor is unknown, deposit it with mayor of city or
municipality where found
c. Finding shall be publicly announced for 2 consecutive weeks
d. If movable cannot be kept without deterioration or without expenses
which considerably diminish its value sold at public auction 8 days
after publication
e. If 6 months after publication has lapsed without owner having
appeared thing found or its value will be awarded to the finder
f. Finder and owner shall be obliged to reimburse any expenses incurred
g. If owner appears, finder awarded 1/10 of sum or price of thing found

DONATION

Donation = act of liberality whereby a person disposes gratuitously of a thing or
right in favor of another who accepts it

Nature and Effect of Donation:
1. It is a contract with all the essential requisites of a contract, the
consideration being the mere liberality of the benefactor
2. Once accepted donee becomes the owner of the property and it is
irrevocable EXCEPT:
a. On account of officiousness
b. Failure of donee to comply with the charge imposed on the donation
c. Ingratitude

Requisites of Donation:
1. Donor must have capacity to make the donation of a thing or right
2. Donative intent or intent to make the donation out of liberality to benefit
the donee
3. Delivery, actual or constructive
4. Donee must accept or consent to the donation
Perfection takes place from the moment donor knows of the acceptance by
donee.

Acceptance can be: (if not, it shall be void)
a. Personally
b. Through an authorized person with special power for such purpose
c. Authorized person with general and sufficient power
(b) and (c) should make notification and notation thereof.

Acceptance must be made during lifetime of donor and of donee.

Donation of an immovable:
a. Must be made in a public document
b. Specifying the property donated and value of charges which donee must
satisfy
c. Acceptance must be in a same deed of donation or in a separate document
If made by latter, donor shall be notified thereof in an authentic form and
this step shall be noted in both instruments.

Donation of a movable:
a. Either made orally or in writing
If oral, simultaneous delivery of thing or of document representing the
right donated is required.
b. If value exceeds P5,000, donation and acceptance must be in writing
otherwise it shall be void

Kinds of Donation:
1. As to taking effect
a. Inter vivos = takes effect during lifetime of donor
b. Mortis causa = takes effect upon death of donor
c. Propter nuptias = by reason of marriage
2. As to consideration
a. Pure or simple = cause of which is pure liberality of donor in
consideration of donees merits
b. Remuneratory or compensatory = given out of gratitude on account of
services rendered by donee to the donor provided it does not
constitute a demandable debt
c. Modal = imposes upon donee a burden, to be performed in the future,
less than the value of the gift
d. Onerous = value of which is equivalent of the consideration for which
it is given or that made for valuable consideration
3. Effectivity or extinguishment
a. Pure
b. Conditional
c. With a term

Illegal or impossible conditions in simple and remuneratory donations shall not be
considered imposed.

Donation inter vivos v. Donation mortis causa

Inter Vivos Mortis Causa
Takes effect during lifetime of donor

Even if actual delivery may deferred
until donors death (donation in
praesenti)
Takes effect upon death of donor

Nothing is conveyed to or acquired by
donee until said death
Made out of donors pure generosity Made in contemplation of his death
without intention to lose it in case of
survival
Valid if donor survives donee Void if donor survives donee
Acceptance must be made during
lifetime of donor
Acceptance made only after donors
death
Cannot be revoked except for grounds
provided by law
Revocable at any time before donors
death

Instances where there is a Donation inter vivos:
5. Fixing of an event or imposition of a suspensive condition which may take
place beyond the natural expectation of life of donor UNLESS contrary
intention appears

Suspensive condition = condition which suspends rights and obligations
until the uncertain future event occurs. Upon the occurrence of the event,
the suspended part of the contract is brought to life.
6. Subject to resolutory condition of donors survival

Resolutory condition = fulfillment of a resolutory condition ends the
existence of rights and obligations.

Clauses found in a Deed of Donation:
7. Warranty clause grantor transfers ownership
8. Reservation clause
9. Acceptance clause

PERSONS WHO MAY GIVE OR RECEIVE A DONATION

Who may donate?
1. All persons who may contract and dispose of their property
Donors capacity shall be determined at the time of making the donation,
that is, at the time of its perfection (acceptance by donee).
2. Corporations

Who may not donate or are incapacitated to donate?
1. Minors
Can be donees BUT acceptance shall be done through their parents or
legal representatives.
2. Insane or demented persons
3. Deaf-mutes who do not know how to write
4. Corporations with regard to donations which aid any political party
5. Guardians and trustees with regard to property entrusted to them

EXCEPT in case of trust, donation is permitted notwithstanding trustee
receives nothing in exchange if donation is onerous and is beneficial to the
beneficiary
6. Spouses EXCEPT moderate gifts
7. Spouse without consent of the other spouse

Void donations:
1. Between persons guilty of adultery or concubinage at the time of donation
2. Between persons found guilty of concubinage or adultery in consideration
thereof
3. Made to a public officer or his wife, descendants and ascendants, by reason
of his office
4. Between spouses during marriage EXCEPT moderate gifts
5. Donation by spouse without consent of the other EXCEPT moderate gifts
6. Donations accepted by agents without special authority to do so
7. Donations of immovable which do not conform to prescribed form

Who cannot be made donee?
Those incapacitated to succeed by will

EFFECT OF DONATIONS AND LIMITATIONS THEREON

Reservation Clause
1. Donation may comprehend all present property of donor PROVIDED he
reserves, in full ownership or usufruct, sufficient means to support
a. Himself
b. All relatives who, at the time of acceptance of donation, are by law
entitled to be supported by donor

Without such reservation, donation shall be reduced.
2. Right to dispose of some things donated or some amount charged thereon
may be reserved by donor

If he dies without using those reservations, property or amount belongs to
the donee.

Limitations:
1. Donation cannot comprehend future property = anything which donor
cannot dispose of at the time of donation
2. Amount of donation limited to what donor may give by will especially
when donor has forced or compulsory heirs
3. If donation made to several persons jointly
a. Understood to be in equal shares UNLESS otherwise provided
b. No right of accretion among them UNLESS
i. Otherwise provided
ii. Donation was made to husband and wife jointly
4. Ownership of property may be donated to one person and usufruct to
another PROVIDED all donees are living at time of donation
5. Reversion = property shall go back to donor or some other person
a. May be established in favor of donor for any case and circumstances
b. May not be established in favor of other persons UNLESS they are all
living at the time of donation
Violation thereto shall make the reversion void but not as to nullify
the donation.

Rights in case of Eviction:
1. Donee subrogated to all rights and actions which, in case of eviction,
would pertain to the donor
2. If donation is simple or rumunerative donor not liable for eviction or
hidden defects UNLESS there is bad faith on his part
3. If donation is onerous donor is liable on his warranty BUT only to the
extent of burden

Liability of donee to pay debts of donor:
1. Where donor imposes such obligation
a. Donee liable to pay debts previously contracted
b. Liable for subsequent debts only when there is a stipulation to
such effect
c. Not liable for debts in excess of value of donation received
UNLESS contrary appears
2. Where there is no stipulation regarding such
a. Donee not liable to pay donors debts
b. Donee is responsible if donation was made in fraud of creditors
Presumed when at the time of donation, donor has not left
sufficient assets to pay his debts.
c. Not liable beyond value of donation received

REVOCATION AND REDUCTION OF DONATIONS

Grounds for Revocation:
1. Birth, appearance or adoption of a child (BAA)

When applied:
a. Applies to all donations inter vivos
b. Donor, at the time he made the donation
i. Did not have any child or descendant
ii. Erroneously thought so = believed that his child is dead
iii. Adoption of a minor child

Prescribes after 4 years from
a. Birth of first child
b. Legitimation, recognition or adoption of child
c. Judicial declaration of filiation
d. Information was received regarding the existence of the child believed
to be dead

Cannot be renounced BUT can be transmitted upon death of donor.

Donee shall not return the fruits EXCEPT from filing of the complaint
2. Non-fulfillment of a resolutory condition imposed by donor revoked at
the instance of donor

Effects:
a. Property donated shall be returned to donor PLUS fruits thereof
which he may have received after having failed to fulfill the condition
b. Alienations made by donee and mortgages imposed thereon be void
with regard third persons
c. Recover value of property donated at time of perfection of donation
OR sum for which it was mortgaged

Prescribes after 4 years from non-compliance with the condition.

Transmissible to heirs of donor and may be exercised against donees
heirs.
3. Ingratitude of donee -- revoked at the instance of donor
a. Donee should commit some offense against the person, honor or
property of donor, his wife or children under his parental authority
b. Donee imputes to donor any criminal offense or act involving moral
turpitude even though he should prove it UNLESS the crime or act
has been committed against donee himself, wife or children under his
authority
c. Unduly refuses him support when donee is legally or morally bound to
give support to donor

Effects:
1. Alienations and mortgages effected before notation of the complaint
for revocation in RD shall subsist; later ones shall be void
2. Donor can recover property from transferee or mortgagee
3. Donee shall not return the fruits EXCEPT from filing of the
complaint

Prescribes in 1 year from time donor had knowledge of the fact and it was
possible for him to bring the action.

Cannot be renounced in advance and intransmissible to heirs of donor if he
did not institute the same.

Grounds for Reduction:
1. Failure of donor to reserve sufficient means for support of himself or
dependent relatives
2. Failure of donor to reserve sufficient property to pay off his existing debts
3. Inofficiousness = donation exceeds that which the donor can give by will

Who can ask for reduction?
a. Those who at time of donors death have a right to legitime
b. Their heirs and successors in interest

Donee shall not return the fruits EXCEPT from filing of the complaint.

Cannot renounce their right during lifetime of donor either by express
declaration or by consenting to donation.
4. Birth, appearance or adoption of a child = same as that in revocation
5. If there are two or more donations, disposable portion is insufficient to
cover all of them those of more recent date shall be suppressed or
reduced with regard to excess

Effects of Revocation or Reduction under BAA:
1. Revoke or reduce that which exceeds the portion that may be freely
disposed of by will

If donation does not exceed the free portion at the time of BAA, there is no
need for revocation or reduction.
2. Property affected shall be returned, or its value returned if donee has sold
the same
3. If property is mortgaged, donor may redeem the mortgage by paying the
amount guaranteed with a right to recover it from donee
4. If property cannot be returned, it shall be estimated at what it was worth
at time of donation

Instances when heirs of donors can ask for Revocation:
1. Donee killed the donor
2. Donor dies without having known the act of ingratitude
3. Criminal case against donee was instituted by donor
4. Donor dies before he could bring civil action for revocation
5. Action for revocation has already been filed by donor before his death

CONDOMINIUM ACT

Condominium = an interest in real property consisting of
a. Separate interest in a unit in a residential, industrial, or commercial building

Each unit owners have absolute ownership of separate units.
b. Undivided interest in common directly or indirectly in the land on which it is
located and in other common areas of the building

Two important documents:
a. Master Deed enabling deed; annotated on the CTC of land on which the
building stands; includes the description of the building
b. Declaration of Restrictions also annotated; provides for the management
of the project (e.g. condo corp, association of condo owners)

Foreigners can own up to 40% of the entire condominium corporation (so if the
condominium has 100 units, foreigners can own up to 40 units)

Project means the entire parcel of real property divided or to be divided in
condominiums, including all structures thereon

Common areas (meaning the entire project excepting all units separately granted
or held or reserved) are owned by the condominium corporation

Private units (meaning the a part of the condo project intended for any type of
independent use or ownership) are owned by the unit owners
Unit owners are shareholders in the condominium
If you sell your unit to someone else, you lose your status as a shareholder
in the condominium corporation

Condominium Certificate of Title is whats given (as opposed to a OCT or TCT)

Voting scheme in condominium corporation 1 vote per unit

When partition be made by the sale of entire property:
GR: partition is not allowed
E:
a. 3 years after damages rendering material part unfit for use and there
is refusal to rebuild
b. damage extends to ! of units and owners with 30% interest opposing
repair
c. project is more than 50 years, obsolete and uneconomic and owners
holding more than 50% refuse to repair, rebuild or remodel
d. owners of more than 70% interest are opposed to the continuation of
project after portion has been expropriated
e. conditions of partition by sale embodied in Declaration of Restrictions
have been complied with