PROPERTY REVIEWER

Civil Code of the Philippines

Paras, Book II, Articles 414 to 426

Definition of Property as a Subject in a Law Course
Considered as a subject or course in law, property is that branch of civil law which classifies
and defines the different kinds of appropriable objects, provides for their acquisition and
loss, and in general, treats of the nature and consequences of real rights.

Classification of THINGS
Res nullius belonging to no one
Res communes to everyone
Res alicujus to someone

Classification of Property
Movable, immovable
Public, private dominion
Within, outside the commerce of man
Present, future property
Tangible or corporeal, intangible or incorporeal
Principal, accessory
Fungible, non-fungible
Generic, specific
In custodia legis, free property

Characteristics of Property
1. Utility for the satisfaction of moral or economic wants
2. Susceptibility of appropriation
3. Individuality or substantivity

ARTICLE 414: All things which are or may be the object of appropriation are
considered either:

(1) Immovable or real property; or
(2) Movable or personal property.

Importance of classification to immovable and movable the fact that different
provisions of the law govern the acquisition, possession, disposition, loss, and registration
of immovables and movables.

Human body neither personal nor real





Art. 415. The 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 fi xed
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 the said
industry or works;

(6) Animal houses, pigeon-houses, beehives, fi sh ponds
or breeding places of similar nature, in case their owner has
placed them 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 fl oating, are
intended by their nature and object to remain at a fi xed place
on a river, lake, or coast;

(10) Contracts for public works, and servitudes and
other real rights over immovable property.




Definition of Immovable Proper

The law does not define what properties are immovable; they are merely enumerated.

Academic Classification of REAL PROPERTIES
1. By nature
2. By classification
3. By destination or purpose
4. By analogy

Buildings there should be intent of permanent annexation (immovable property)
No distinction whether built on own land or not
Materials and/or dismantled house personal property

House built on rented land may be mortgaged:
Chattel provided parties agree and no innocent third party is prejudiced
Real Estate Mortgage should be preferred if made subsequent to chattel mortgage

Buildings subject to chattel mortgage cannot be sold extra judicially (under 3135, refers
to real mortgage only)

No legal compulsion to register buildings that do not belong to owners land NO registry
in this
jurisdiction of building apart from land.

Buildings sold or mortgaged to be immediately demolished personal property, true
object of the contract is the materials

REGISTRY OF PROPERTY ministerial duty, should register as long as proper fee has been
paid. He has no judicial or quasi-judicial power to determine the nature of the document.
Standard Oil Co. v. Jaranillo

Constructions of all kinds attachment must be more or less permanent

Wooden scaffoldings of painters personal property

Detached or uprooted trees personal property, except timer in timberland

Real property (incorporeal thing) injury or breakage or deterioration in case of
separation must be SUBSTANTIAL.

Everything attached to an immovable (par.3) when incorporation ceases or when it is
detached it is considered as personal property.

Par.4 (statues, reliefs, paintings) should have intent to attach permanently

Distinction between par. 3 and 4 of Article 415

Par. 3
(1) cannot be separated from
immovable without breaking
or deterioration
(2) need not be placed by the
owner. (Ladera v. Hodges,
CA, 48 O.G. 5374).
(3) real property by incorporation


Par. 4
(1) can be separated from immovable
without breaking
or deterioration
(2) must be placed by the
owner, or by his agent,
express or implied
(3) real property by incorporation
and destination

Query: Suppose the properties referred to in paragraph 3 are temporarily removed,
but there is an intention to
replace them, should they be considered real or personal property?

ANS.: It is believed that they should be regarded as personal property inasmuch as the
incorporation has
ceased. The Partidas contained an express provision making said property real, but in view
of the elimination in
the Code of said provision, we may say that same should no longer apply, despite a contrary
opinion expressed by
a member of the Code Commission. (Capis-trano, 1 Civil Code, p. 338).

Paragraph 5 refers to real property by destination or purpose

1. Should be placed by the owner of the tenement
2. Industry or works must be carried on in a building
3. Directly meet the needs of the industry or work
4. Machines must be essential and principal elements in the industry, and not merely
incidental

Effect of separation (par.5)

1. If no longer used in the industry chattel

2. Temporary separation but still needed in the industry real property
Machinery placed by tenant personal
Tenant promised to give the machinery real to the owner
Tenant acted as agent of owner real
Cannot be real property if placed by person having TEMPORARY RIGHT only
Electric poles/towers personal properties, because it does not fall in par.1,3, & 5.



Par.6 -

1. Animals inside real property
2. Same with animals temporarily outside but with intent to return

Par.7 Fertilizers should be actually used in land
Par.8 mines, slag dumps, etc
Par.9 floating house vs. vessel
Par.10 pertaining to rights real property by analogy

The properties referred to in paragraph 10 are not material things but rights, which
are necessarily intangible.
(See 3 Manresa 11).

The piece of paper on which the contract for public works has been written is necessarily
personal property, but the contract itself, or rather, the right to the contract, is real
property.

Art. 416. The following things are deemed to be personal property:

(1) Those movables susceptible of appropriation which
are not included in the preceding article;

(2) Real property which by any special provision of law
is considered as personalty;

(3) Forces of nature which are brought under control
by science; and

(4) In general, all things which can be transported from
place to place without impairment of the real property to
which they are fixed.

Growing crops personal property for purposes of chattel mortgage law and attachment
Test of what may be stole it is of value and may be appropriated by a person other than
the owner

TEST: whether movable or immovable

1. Property is capable of being carried from place to place (Test by DESCRIPTION)
2. Change in location can be made without injuring real property to which it is attached.
(Test by DESCRIPTION)
3. Object is not enumerated in ART 415 (Test by EXCLUSION)

Test by EXCLUSION is superior to the test by description.
Patent, copyright, right to invention personal property


Art. 417. The following are also considered as personal property:

(1) Obligations and actions which have for their object
movables or demandable sums; and

(2) Shares of stock of agricultural, commercial and
industrial entities, although they may have real estate.

Obligations and actions over movables and demandable sums
Shares of stocks

If object is illegal not considered demandable so no right exists

If the only property of a corporation is real property shares of stock is still personal
property

MONEY, whether legal tender or merchandise personal property

Art. 418. Movable property is either consumable or nonconsumable. To the first class
belong those movables which cannot be used in a manner appropriate to their
nature without their being consumed; to the second class belong all the others.

Consumable by nature, cannot be used without being consumed
Non-consumable any other property
Fungible if agreed that the equivalent be returned
Non-fungible identical thing be returned


Art. 419. Property is either of public dominion or of private ownership

Art. 420. The following things are property of publicdominion:

(1) Those intended for public use, such as roads, canals,
rivers, torrents, ports and bridges constructed by the State,
banks, shores, roadsteads, and others of similar character;

(2) Those which belong to the State, without being for
public use, and are intended for some public service or for
the development of the national wealth.

Public Dominion ownership by the State, it has control and administration
OR ownership by the public in general


Three Kinds:
1. Public use may be used by anybody
2. Public service may be used only by duly authorized persons
3. Development of national wealth e.g. natural resources

Canals constructed by the State Public Domain
Canals constructed by private persons private

Characteristics of Properties of Public Dominion:

1. Outside the commerce of man
2. Cannot be acquired by prescription
3. Cannot be registered or subject of a Torrens title
4. Cannot be levied upon by execution, nor can they be attached
5. Generally, they can be used by everybody
6. Either real or personal property

Registration of properties of Public domain does not confer ownership

Inclusion in title does not confer title

Forest lands cannot be registered

Right of public character cannot be transferred except through succession

Allowing the use of canals by others the owner losses the exclusive right to use the same

Agricultural land may be acquired by private persons

Forest and mining lands may not be transferred but may be leased

Public agricultural lands alienable portions NOT classified as forest or mineral lands,
may be acquired, if made available becoming patrimonial properties

Proper licensee owns forest products obtained by other entities

Classification and re-classification of Public lands prerogative of the executive
department

Government lands includes public and patrimonial lands

Public Land Act:
Land is alienable public land
Open, continuous, adverse possession


Art. 421. All other property of the State, which is not of the character stated in the
preceding article, is patrimonial property.

Patrimonial property not devoted to public use, public service, or development of
national wealth.
Owned by the State in its private capacity.
Examples:
1. Friar lands
2. San Lazaro Estate
3. Lands obtained in escheat proceedings
4. Municipal owned waterworks system
Patrimonial properties may be acquired through prescription

Art. 422. Property of public dominion, when no longer intended for public use or for
public service, shall form part of the patrimonial property of the State.

When not devoted to public use, public service or development of national wealth
patrimonial property.

Executive and legislative authority to make SUCH declaration

Art. 423. The property of provinces, cities, and municipalities is divided into
property for public use and patrimonial property.

For POLITICAL SUBDIVISIONS:
1. Public use
2. Patrimonial property
A municipality is a juridical person capable of acquiring properties
National Government Central Government
Government of the Philippines - totality

Art. 424. Property for public use, in the provinces, cities and municipalities consist of
the provincial roads, city streets, municipal streets, the squares, fountains, public
waters, promenades, and public works for public service paid for by said provinces,
cities, or municipalities.

All other property possessed by any of them is patrimonial and shall be governed by
this Code, without prejudice to the provisions of special laws.

Properties of political subdivisions for Public service patrimonial

Patrimonial property not ordinary private property, acquisition should NOT impair
certain governmental activities.

Properties that came from the State the Government controls the disposition of
properties of political subdivisions.
Absence of proof that political subdivisions acquired the properties with their own funds
presume that it came from the State.

Types of Properties of Political Subdivisions:

1. Acquired through their own funds
2. Those subject to the control and supervision of the State held in trust by the State to
them

Properties for PUBLIC USE may not be leased reimburse the rents if NO benefit was
gained by lessee

Properties of patrimonial in nature may be levied upon or attached

Art. 425. Property of private ownership, besides the patrimonial property of the
State, provinces, cities, and municipalities, consists of all property belonging to
private persons, either individually or collectively.

Private properties may be owned individually or collectively

Possession since time immemorial presumption that it never been part of public domain

Error in Torrens title which includes government properties may only be questioned by
the government.

Payment of land tax is not an evidence of ownership if there is a Torrens title

Acquisition of land by aliens prohibited (absolute)


PROVISIONS COMMON TO THE
THREE PRECEDING CHAPTERS

Art. 426. Whenever by provision of the law, or an individual declaration, the
expression immovable things or property, or movable things or property, is used,
it shall be deemed to include, respectively, the things enumerated in Chapter 1 and
in Chapter 2.

Whenever the word muebles, or furniture, is used alone, it shall not be deemed to
include money, credits, commercial securities, stocks, and bonds, jewelry, scientifi c
or artistic collections, books, medals, arms, clothing, horses or carriages and their
accessories, grains, liquids and merchandise, or other things which do not have as
their principal object the furnishing or ornamenting of a building, except where from
the context of the law, or the individual declaration, the contrary clearly appears.


Furnitures

The article enumerates things not included in the term Furnitures

Money, credit, securities, stocks, jewelry, etc.

Use of the Word Muebles

This word is used synonymously with furniture. Note that furniture has generally for its
principal object the furnishing or ornamenting of a building. Found in the old Code, the use
of muebles was retained by the Code Commission, evidently because many people are
acquainted with its meaning. (See 1 Capistrano, Civil Code, p. 371). Note the enumerations of
things which are not included in the term furniture.