01 December 2012

Prepared by: Fatima O. Dalangin

Notes on Fundamentals of Property Ownership

I.

Steward Concept of Ownership

- Ownership carries with it a social obligation.
- Owners are obliged to use their properties to promote not only their interest but also the
general welfare. Thus, he must exercise the right of ownership to benefit not only
himself but society as well.
- Right to abuse property is not functioned.
- When a persons landholding exceeds the requirements of his needs, or their utilization
is not conducing to general welfare, the State may exercise its power to regulate and
control ownership.

II.

Right to Own Land

- Governed by 1987 Constitutionand Article XII: National Economy and Patrimony

NOTE: the 1987 Constitution emphasizes the stewardship concept of property ownership where
the owner, recognizing the primacy of the state under REGALIAN DOCTRINE, exercises the right of
ownership
- Section 2. All lands of the public domain, waters, minerals, coal, petroleum, and other
mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife, flora and
fauna, and other natural resources are owned by the State. With the exception of
agricultural lands, all other natural resources shall not be alienated. The exploration,
development, and utilization of natural resources shall be under the full control and
supervision of the State. The State may directly undertake such activities, or it may
enter into co-production, joint venture, or production-sharing agreements with Filipino
citizens, or corporations or associations at least sixty per centum of whose capital is
owned by such citizens. Such agreements may be for a period not exceeding twentyfive years, renewable for not more than twenty-five years, and under such terms and
conditions as may be provided by law. In cases of water rights for irrigation, water
supply fisheries, or industrial uses other than the development of water power,
beneficial use may be the measure and limit of the grant.
The State shall protect the nations marine wealth in its archipelagic waters,
territorial sea, and exclusive economic zone, and reserve its use and enjoyment
exclusively to Filipino citizens.
The Congress may, by law, allow small-scale utilization of natural resources by
Filipino citizens, as well as cooperative fish farming, with priority to subsistence
fishermen and fishworkers in rivers, lakes, bays, and lagoons.
The President may enter into agreements with foreign-owned corporations
involving either technical or financial assistance for large-scale exploration,
development, and utilization of minerals, petroleum, and other mineral oils according to
the general terms and conditions provided by law, based on real contributions to the
economic growth and general welfare of the country. In such agreements, the State
shall promote the development and use of local scientific and technical resources.
-

Section 3. Lands of the public domain are classified into agricultural, forest or timber,
mineral lands and national parks. Agricultural lands of the public domain may be

further classified by law according to the uses to which they may be devoted. Alienable
lands of the public domain shall be limited to agricultural lands. Private corporations
or associations may not hold such alienable lands of the public domain except by
lease, for a period not exceeding twenty-five years, renewable for not more than
twenty-five years, and not to exceed one thousand hectares in area. Citizens of the
Philippines may lease not more than five hundred hectares, or acquire not more than
twelve hectares thereof, by purchase, homestead, or grant.
-

Section 7. Save in cases of hereditary succession, no private lands shall be transferred or

conveyed except to individuals, corporations, or associations qualified to acquire or hold
lands of the public domain.

Section 8. Notwithstanding the provisions of Section 7 of this Article, a natural-born

citizen of the Philippines who has lost his Philippine citizenship may be a transferee of
private lands, subject to limitations provided by law.
o RA 7042 (as amended by RA 8179)
Foreign Investment Act
Specifies entitlement and conditions for land acquisition for investment
purposes
o Batas PambansaBilang 185
Guidelines on land ownership by former Filipinos for purposes of
residences

NOTES:
- Transferee
- The acquisition or transfer of private land refers to either voluntary or involuntary sale,
devise or donation. Involuntary sale includes sales on tax delinquency, foreclosures, and
executions of judgment.
-

Qualifications of Former Filipinos

Both laws define former Filipinos as citizens of the Philippines from birth without having
to perform any act to acquire or perfect their Philippine citizenship, who lost said
Philippine citizenship, and who have the legal capacity to enter into a contract under
Philippine laws

Particulars

Provision under BP 185

Size/Area of Coverage

URBAN LAND: maximum of 1,000 sq.

meters
RURAL LAND: maximum of one
hectare

Provisions under RA 7042

as amended by RA 8179
URBAN LAND: maximum of 5,000 sq.
meters
RURAL LAND: maximum of three
hectares

Land Acquisition for Both

Spouses

either of the spouses may avail of the

privilege
in case both spouses wish to acquire
lands for this purpose, the total area
acquired should not exceed the
maximum allowed

either of the spouses may avail of the

privilege
in case both spouses wish to acquire
lands for this purpose, the total area
acquired should not exceed the
maximum allowed

Additional Land
Acquisition

Limits to Acquisition of
Land

Use of Land

In case he/she already owns urban or

rural lands for residential purposes,
he/she may acquire additional urban or
rural lands, which when added to those
he/she presently owns shall not exceed
the authorized maximum area

In case he/she already owns urban

or rural lands for business purposes,
he/she may acquire additional urban or
rural lands, which when added to those
he/she presently owns shall not exceed
the authorized maximum area

A person may acquire not more than

two (2) lots which should be situated
in different municipalities or cities
anywhere in the Philippines, provided
that the total area of these lots do
not exceed 1,000 sq. meters for
urban land or one (1) hectare for
rural land for use as residence.
An individual who has already
acquired urban land shall be
disqualified from acquiring rural land
and vice versa.

A person may acquire not more than

two (2) lots which should be situated
in different municipalities or cities
anywhere in the Philippines, provided
that the total area of these lots do not
exceed 5,000 sq. meters for urban land
or three (3) hectares for rural land for
business purposes.
A transferee who has already acquired
urban land shall be disqualified from
acquiring rural land and vice versa.
However, if the transferee has disposed
of his/her urban land, he/she may still
acquire rural land and vice versa,
provided that this will be used for
business.

For residence purposes

A transferee of residential land

acquired under Batas PambansaBlg.
185 may still avail of the privilege
granted under this law.
Section 5 of Rule XII specifically states
that the land should be primarily,
directly, and actually used in the
performance or conduct of the
owners business or commercial
activities in the broad areas of
agriculture, industry and services
including the lease of land, but
excluding the buying and selling
thereof.

Special Requirements

The transferee should submit to the

Register of Deeds of the province or
city where the property is located a
sworn statement stating the
following:
a. date and place of birth;

In addition to the usual registration

requirements
pertinent
to
the
conveyance of real estate, the transfer
contemplated shall not be recorded
unless the transferee submits to the
Registry of Deeds of the province or
city where the land is situated, the

b. names and addresses of his/her

parents, spouse, and children, if
any;
c. area, location, and mode of
acquisition of landholdings in the
Philippines, if any
d. his/her intention to reside
permanently in the Philippines;
e. date he/she lost his/her Philippine
citizenship
f. country of which he/she is
presently a citizen

Violations and Penalties

Violations through:
misrepresentation in the sworn
statement
acquisition of land through
fraudulent means
failure to reside permanently in the
land acquired within two (2) years
from its acquisition, except when
such failure is caused by force
majeure shall be penalized by the
following:
forfeiture of such lands and
their improvements to
theNational Government
through escheat
proceedings by the
representative of the
Solicitor General
permanent disqualification
from availment of the
privilege under this Act

following:
a. certification
of
business
registration issued by the
Bureau of Trade Regulation and
Consumer Protection of the
DTI;
b. sworn
statement
stating
information required under
Batas Pambansa 185;
c. certification from assessor of
municipality or province where
the property is situated that
the subject land for transfer is
an urban or rural area;
d. if an agricultural land is
acquired, a certification from
the Department of Agrarian
Reform that the land is a
retained area of the transferor
e. affidavit of the transferee
attesting that his/her total
landholding inclusive of the
land to be acquired does not
exceed the 5-hectare limit

NOTE: What is Urban Land?

o Land located in urban areas. Shall include the following:
o All municipal jurisdictions (cities, provincial capitals) have a population density of at
least 1000 person per square kilometre
o Poblaciones or central districts with at least 500 persons per square kilometre
o Barangays with at least 1000 inhabitants in which the occupation is predominantly other
than fishing or farming
o Poblaciones or central districts regardless of population size which have the following:
Street pattern
At least 6 establishments (commercial, manufacturing, recreational and/ or
personal services)
At least three of the following:
Town hall, church or chapel with reliqious services at least once a
month
Public plaza or cemetery
Market place where trading activities where held at least once a week
Public building (schools, hospitals, health center, library, puericultural)
GENERAL RULE ON OWNERSHIP OF LANDS
Corporations or Partnerships at least 60% of the capital of which is owned by Filipinos are
entitled to acquire land in the Philippines
o Presidents, managers, or persons in charge of corporations, associations or partnerships
violating the provisions shall be criminally liable in lieu thereof

Only Filipino Citizens

o By Birth (Natural Born one who is citizen from birth without having to perform an act
to acquire or perfect his citizenship)
o Naturalization Process
Republic Act 9139 (The Administrative Naturalization Law of 2000)
Commonwealth Act No. 473 (Revised Naturalization Law)
Republic Act 9139
Commonwealth Act 473
Qualifications:
a. Not less than 18 years old at the filing of a. Not less than 21 years old at the filing of
petition
petition
b. Must be born in the Philippines and b. Must have resided in the Philippines for
residing therein since birth
a continuous period of not less than 10
c. GMC and believes in the underlying
years
principles of the Constitution, and must c. GMC and believes in the underlying
have conducted himself in proper
principles of the Constitution, and must
irreproachable manner during his entire
have conducted himself in proper
period in the Philippines in his relation
irreproachable manner during his entire
with the duly constituted government as
period in the Philippines in his relation
well as with the community in which he
with the duly constituted government as
is living
well as with the community in which he
d. Must receive his primary and secondary
is living
education
in
any
public/private d. He must have enrolled his minor
educational institution duly recognized
children of school age in any
by DECS, where Philippine history,
public/private schools recognized by the

Special
Qualifications

Disqualifications

government and civics are taught and

Office of Private Education of the
prescribed as part of school curriculum
Philippines, where the Philippine
and where enrolment is not limited to
history, government and civics are
any race or nationality; Provided, that
taught/prescribed as part of the school
his minor children of school age must be
curriculum, during the entire period of
enrolled in the same school
the residence in the Philippines
e. Must have known trade, business, e. Must own real estate in the Philippines
profession or lawful occupation, from
worth not less than 5k or must have
which he derives income sufficient for
some known lucrative trade, profession
his support and if he is married and or
or lawful occupation
has dependents, also that of his family. f. Must be able to speak and write in
Provide, however, that this shall not
English or Spanish and any one of the
apply to applicants who are college
principal Philippine languages
degree holders but are unable to
practice their profession because they
are disqualified to do so by reason of
their citizenship
f. Must be able to read, write, speak
Filipino or any of the dialects of the
Philippines
g. Must have mingled with the Filipinos
and evinced a sincere desire to learn
and embrace the customs, traditions
and ideals of the Filipino people
a. Having honourably held office under the
Government of the Philippines or under
that of any of the provinces, cities,
municipalities or political subdivisions
b. Established a new industry or
introduced a useful invention in the
Philippines
c. Being married to a Filipino woman
d. Having been born in the Philippines
e. Been engaged as a teacher in the
Philippines in a public or recognized
private school not established for the
exclusive instruction of children of a
particular nationality or race for a period
of not less than 2 years
a. Those
opposed
to
organized a. Those
opposed
to
organized
government or affiliated with any
government or affiliated with any
association or group of persons who
association or group of persons who
uphold and teach doctrine opposing all
uphold and teach doctrine opposing all
organized governments
organized governments
b. Those defending or teaching necessity of b. Those defending or teaching necessity of
or propriety of violence, or personal
or propriety of violence, or personal
assault or assassination for the success
assault or assassination for the success
or predominance of their ideas
or predominance of their ideas

c. Polygamists or believers in the practice

of polygamy
d. Those convicted of crimes involving
moral turpitudes
e. Those suffering from mental alienation
and incurable contagious diseases
f. Those, who during their residence in the
Philippines, have not mingled socially
with the Filipinos, or who have not
evinced a sincere desire to learn and
embrace the customs, traditions and
ideals of the Filipinos
g. Citizens or subjects with whom the
Philippines is at war, during the period
of such war
h. Citizens or subjects of a foreign country
whose laws do not grant Filipinos the
right to be naturalized citizens or
subjects thereof
Petition for
Citizenship

1. Shall file with the Special Committee on

Naturalization 5 copies, legibly typed
and signed, thumb-marked and verified
by him, with the latters passport sized
photograph attached to each copy of
the petition, and setting forth the
following:
- Petitioners name and surname, and
any other name he used or by which
he is known
- Present and former places of
residence
- Place and date of birth, names and
citizenship of his parents and their
residences
- Trade, business, profession or
occupation, and if married, also that
of his spouse
- If married: date and place of his
marriage, name, date of birth and
birthplace, citizenship and residence
of spouse
- If annulled: date of decree of
annulment of marriage and the
court which granted the same
- If has children: name, date and
birthplace and residences of
children

c. Polygamists or believers in the practice

of polygamy
d. Those convicted of crimes involving
moral turpitudes
e. Those suffering from mental alienation
and incurable contagious diseases
f. Those, who during their residence in the
Philippines, have not mingled socially
with the Filipinos, or who have not
evinced a sincere desire to learn and
embrace the customs, traditions and
ideals of the Filipinos
g. Citizens or subjects with whom the
Philippines is at war, during the period
of such war
h. Citizens or subjects of a foreign country
other than the United States, whose
laws do not grant Filipinos the right to
be naturalized citizens or subjects
thereof
1. Shall file with the competent court, a
petition in triplicate, accompanied by 2
photographs of the petitioner, setting
forth the following:
- Name and surname
- Present and former places of
residence
- Occupation
- Place ad date of his birth
- Single or married and the father of
children
- Name, age, birthplace and residence
of the wife and each of the children
- Approximate dater of his arrival in
the Philippines
- Name of the port of debarkation,
and if he remembers it, the ship on
which he came
- Declaration that he has the
qualifications required and that he is
not disqualified for naturalization
- That he has complied with the
requirements
- He will reside continuously in the
Philippines from the date of the
filing of the petition up to the time
of his admission to Philippine
citizenship

Declaration that the petitioner

possesses all the qualifications and
none of the qualifications under this
Act
- A declaration that the petitioner
shall never be a public charge
- A declaration that it is the
petitioners true and honest
intention to acquire Philippine
citizenship and to renounce
absolutely and forever any prince,
potentate, State or sovereign, and
particularly the country of which the
applicant is a citizen or subject
2. The application shall be accompanied
by:
- Duplicate original or certified
photocopies of petitioners birth
certificate
- Duplicate original or certified
photocopies of petitioners alien
certificate of registration and native
born certificate of residence
- Duplicate original or certified
photocopies of petitioners marriage
certificate, if married, or the death
certificate of his spouse, if widowed,
or the decree annulling his marriage,
if such was the fact.
- Duplicate or certified photocopies of
birth certificates, alien certificate of
registration
or
native
born
certificate of residence if any, of
petitioners minor children
- Affidavit of financial capacity by the
petitioner, and sworn statements on
the GMC of the petitioner by at least
2 Filipino citizens of good reputation
in his place of residence stating that
they have personally known the
petitioner for at least a period of 10
years and that said petitioner has in
their own opinion all the
qualifications necessary to become
citizen of the Philippines and is not
in any way disqualified
- Medical certificate that he is not a
user of prohibited drugs or

Petition must be signed by the

applicant in his own handwriting
and be supported by the affidavit of
at least 2 credible persons, stating
that they are citizens of the
Philippines and they personally
know the petitioner to be a resident
of the Philippines for the period
required and a person of good
repute and morally irreproachable,
and that the said petitioner has in
their own opinion all the
qualifications necessary to become a
citizen of the Philippines and is not
in any way disqualified.
Shall set forth the names and the
post-office addresses of such
witnesses as the petitioner may
desire to introduce at the hearing of
the case
Certificate of arrival, and the
declaration of intention must be
made part of the petition.

o
o
o

otherwise a drug dependent and

that he is not afflicted with AIDS
School diploma and TOR in the
schools he attended in the
Philippines. Should he have minor
children, a certification that his
children are enrolled in a school
where
Philippine
history,
government and civics are taught
and are part of the curriculum
Income tax return for the past three
years, if gainfully employed

Citizenship Retention and Re-acquisition Act of 2003 (RA 9225)

Natural-born citizenship by reason of their naturalization as citizens of a foreign
country are deemed to have re-acquired Philippine citizenship upon taking the
oath of allegiance to the Republic (Retention of Philippine Citizenship)
Unmarried child, whether legitimate, illegitimate or adopted, below 18yo, of
those who re-acquire Philippine citizenship shall be deemed citizens of the
Philippines (Derivative Citizenship)
Those who retain or re-acquire Philippine citizenship shall enjoy full civil and
political rights (right to own real estate and right to practice ones profession)
Act of Congress
Repatriation
Jus Soli vs Jus Sanguinis
Jus Soli: Right by land
Jus Sanguinis: right by blood

EXCEPTIONS TO THE RULE OF RIGHT TO OWN

Alien acquisition of real estate in the Philippines is allowed in the following cases:
1. Acquisition before the 1935 Constitution
2. By hereditary succession if the acquire is a legal heir
3. Purchase by aliens of not more than 40% of the units in a condominium project
4. Purchase by former natural born Filipino citizens
a. Batas Pambansabilang 185
b. Foreign Investment Act of 1991 (RA 7042 as amended by RA 8179)
5. Filipina who married an alien retains her Philippine citizenship (unless by her act or omission she
is deemed under law to have renounced her Philippine citizenship) may therefore still acquire
real estate in the Philippines
6. Dual Citizenship Law (Republic Act No. 9225)

CONCEPT OF OWNERSHIP
Independent right of a person to the exclusive enjoyment and control of a property including its
disposition and recovery subject only to the restrictions established by law and rights of others.
BUNDLE OF RIGHTS THEORY
Fee simple consists of the so called bundle of rights which are inherent in or appurtenant to
ownership, without any limitations or restrictions other than those imposed by law or contract.
Includes the following
Right to possess
Right to use and enjoy
Right to the fruits
Right to dispose
Right to recover or vindicate
Right to accession
LIMITATIONS ON RIGHT OF OWNERSHIP
GOVERNMENT OR LEGAL
1. Those imposed in general by the state in the exercise of:
a. Power of taxation: power to impose and collect taxes and other charges on its citizens
and residents
b. Police Power: to impose restrictions on private rights for the safety of public welfare,
order and security
c. Power of Eminent Domain: to take private property for public use upon payment of just
compensation
2. Those imposed by law
a. Legal easements: for the purpose of public use are the interest of private persons
b. Requirement of legitimate succession
c. Zoning Ordinances: restrictions on the use of land in particular areas or the delineation
of allowable uses in particular areas
d. Building code: specifications such as height and setbacks
i. BP 1096
e. Rent control
f. Urban and agrarian reform
g. Subdivision regulations: requirements which may be complied within subdivision
projects (open spaces, development specifications, etc)
i. PD 957
ii. BP 220
h. Escheat: reversion of private property to the state due to the inestate death of the
owner who is not survived by any heir
CONTRACTUAL OR VOLUNTARY
1. Those imposed by the grantor of the property on the grantee by contract
a. Donation
b. Last will
c. Usufruct: right to enter the property of another with the obligation of preserving its
form and substance; right to enjoy the fruits of the property

d. Deed/Use Restrictions in Subdivision Contracts

2. Those imposed by the owner himself
a. Voluntary easement: right to established easement which the owner may deem
suitable and in the manner and form he deems best
b. Lease Contract: temporary surrender of the right to possess, use and enjoy in favour
of another person in exchange for appropriate consideration
c. Mortgage
ESTATE: the totality of assets (real estate + personal properties
REAL ESTATE: land and all permanent improvement thereon
CLASSIFICATION OF PROPERTY
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
PERSONAL PROPERTY: MOVABLE
The following are movable 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 personal property;
(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
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.
Movable property is either consumable or non-consumable. 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.
REAL PROPERTY: IMMOVABLE
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 fixed manner, in such a way that it cannot be
separated there from 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, fish 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 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.

1.
2.
3.
4.

Classifications:
Nature (land, buildings, trees, plants, etc.)
**LAND is the first to be listed as immovable property or real property by nature
Incorporation (machineries, statues, fish ponds, etc)
Destination (mines, fertilizers, quarries, docks, etc)
Analogy or Law (servitudes and other real rights over the property)

**NOTE: Whenever the word "muebles," or "furniture," is used alone, it shall not be deemed to include
money, credits, commercial securities, stocks and bonds, jewelry, scientific 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.
SURFACE, SUBSURFACE AND AIR RIGHT
Land, in its legal signification, extends from the surface downwards to the center of the earth
and extends upwards indefinitely to the skies. The surface and subsurface of rights of an owner entitle
him to construct thereon any works or make any plantations and excavations without detriment to
servitudes and special laws. Air right is the right of an owner to use and control the air space over his
land subject to the requirements of aerial navigation, laws, or contract.
RIGHT TO HIDDEN TREASURE
Hidden treasure belongs to the owner of the land, building, other property on which it is found. When
the discovery is made on the property of another, or of the State or any of its subdivisions, and by
chance, one-half of the treasure shall be allowed to the finder. If the finder is a trespasser, he shall not
be entitled to any share of the treasure. If the things found be of interest to science or arts, the State
may acquire them at their just price, which shall be divided in conformity with the rule above stated.
Hidden treasure, for legal purpose, is understood to be any hidden unknown deposit of money, jewelry,
or other precious objects, the lawful ownership of which does not appear.

RIGHTS OF ACCESSION
1) In General The ownership of property gives the right by accession to everything which is produced
thereby, or which is incorporated or attached thereto, whether naturally or artificially.
2) With Respect to Produce of Property To the Owner belongs the:
a) Natural fruits the spontaneous product of the soil
b) Industrial fruits those produced by land cultivation or labor
c) Civil fruits the rental income of buildings and /or lands
3) With Respect to Immovable Property:
a) The owner of the land on which anything has been built, sown or planted in good faith shall have
the right:
aa) To appropriate as his own the works, sowing or planting after payment of indemnity p
rovided
by law
bb) To oblige the builder or planter to pay the price of the land. However, the builder or planter
cannot be obliged to pay for the land if its value is considerably more than that of the building or
planting. In such case, he shall pay reasonable rent if the owner does not choose to appropriate
the building after proper indemnity. The parties shall agree on the terms of the lease and in case
of disagreement, the court shall fix the terms thereof.
b) The owner of the land on which anything has been built, planted or sown In bad faith may:
aa) Demand the demolition of the work or removal of the planting or sowing at the
expense of the builder or planter
bb) compel the builder or planter to pay the price of the land and the sower, the proper rent.
The landowner is also entitled to damages from the builder planter or sower.
cc) To the owners of land adjoining the banks of rivers belong the accretion which they gradually
receive from the effects of the current of the water.
dd) Whenever a river, changing its course by natural causes, opens a new bed through a private
estate, the new bed shall become a public dominion.
CONCEPT OF TITLE
- A person is deemed to have title to a property when he can exercise or has the bundle of rights
over it.
- Evidence or proof of ownership
o Tax declaration
o Realty tax receipt
o Deed of sale
o Torrens Certificate of Title: best evidence of ownership because it is imprescriptible and
indefeasible.
MODES OF ACQUIRING TITLE
- Private Grant: voluntary transfer or conveyance of private property by a private owner, such as
sale or donation.
- Public Grant: acquisition of alienable lands of the public domain by homestead patent, free
patent, sales patent, or other government awards.
- Involuntary Grant:acquisition of private party against the consent of the former owners, such as
foreclosure sale, execution sale, or tax sale
- Inheritance: through hereditary succession
- Reclamation: filling of submerged land

Accretion: acquisition of more lands adjoining the banks of rivers due to the gradual deposit of
soil as a result of the river current
Prescription: acquisition of title by actual, open, continuous, and uninterrupted possession in
the concept of owner for the period required by law

OWNERSHIP vs POSSESSION vs OCCUPATION

1. Ownership: bundle of rights without other limitations except those established by late or the
owner himself
2. Possession: holding of a thing or enjoyment of a right
a. Modes of acquiring
i. By material occupation of a thing or the exercise of a right
ii. By the face that it is subject to the action of our will
iii. By the proper acts and legal formalities established for acquiring such right
b. Loss of Possession
i. Abandonment of the thing
ii. Assignment made to another either by onerous or gratuitous title
iii. Destruction of total loss of a thing or because it goes outside the commerce of
man
iv. Possession of another (by mere tolerance or violence)
1. If the new possession has lasted longer than one year
2. Real right of possession is not lost till after the lapse of ten years
c. Degrees of Holding
i. Possession without any title whatsoever (thief or squatter)
ii. Possession with juridical title
iii. Possession in the concept of an owner (good faith)
iv. Possession with a Title in Fee Simple (property owner)
d. Elements:
i. Animus possidendi: intent to possess
ii. Animus corpus: a thing or a right that is susceptible to being appropriated
3. Occupation: act of entering into, and taking over a parcel of land that appears vacant and
abandoned. However, ownership of a piece of land cannot be acquired by occupation.
ACQUISITION OF LAND OWNERSHIP
- DONATION: act of liberality where a person disposes gratuitously of a thing or right in favour of
another who accepts it
o Validity of the donation of an immovable must be made in a public instrument
- SUCCESSION:inheritance, by will or by operation of law
- TRADITION: act of delivering the thing sold to the buyer by
o Lining over material possession of the thing sold
o Symbolic transfer of ownership thereof
- STATE GRANT:tenant-farmers became landowners on the own right (ex. Comprehensive
Agrarian Reform)
- RECLAMATION: For the purpose of developing area into a business or commercial center,
resettlement or housing project
- ACCESSION: ownership property gives the owner the right to everything which is:
o produced thereby (accession discrete)
o incorporated or attached thereto (accession continua)
Islands

Formed by the seas, on lakes and navigable or floatable rivers: belongs

to the State
Non-navigable and non-floatable rivers: belongs to the owners of the
margins of the banks nearest to reach them
In the change of river beds:
River beds which are abandoned through natural change in the course
of the water belong to the owners whose land are occupied by the new
course in proportion to the area lost
Owners of the land adjoining the old bed shall have the right to acquire
the same by paying the value thereof, which value shall not exceed the
value of the area occupied by the new bed
Whenever a river changing its course by natural causes, opens a new
bed through private estate, this bed shall become of public domain
Whenever a current of river divides itself into branches, leaving a piece
of land or part thereof isolated, the owner of the land retains his
ownership. He also attains it if a portion of land is separated from the
estate by the current
Alluvium: gives to the owner of a land adjoining the banks of river or sea any
accretion which is gradually received from the effects of the currents of water
Avulsion: current of a river, creek or torrent segregates from an estate a known
portion of land
To which the segregated part belonged to, retains the ownership of it
provided that he removes the same within two years
OCCUPATION AND POSSESSION
o Occupation and possession does not by itself confer ownership
For possession must be peaceful and/or lawful
is in the concept of an owner that the continuous and uninterrupted for some
fixed time by law (prescription)

NOTE: The peaceful and adverse possession of land that is continuous and uninterrupted for a certain
period of time may be converted into ownership of the land.
10years by ordinary prescription (with just title and in good faith)
30years by extraordinary prescription (without need of title and good faith)
PROPERTY IN RELATION TO THE PERSON TO WHOM IT BELONGS
Property is either of public dominion or of private ownership.
The following things are property of public dominion:
(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.

All other property of the State, which is not of the character stated in the preceding article, is
patrimonial property. (340a)
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. (341a)
The property of provinces, cities, and municipalities is divided into property for public use and
patrimonial property. (343)
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.
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.
OWNERSHIP IN GENERAL
Art. 427. Ownership may be exercised over things or rights. (n)
Art. 428. The owner has the right to enjoy and dispose of a thing, without other limitations than those
established by law.
The owner has also a right of action against the holder and possessor of the thing in order to recover it.
(348a)
Art. 429. The owner or lawful possessor of a thing has the right to exclude any person from the
enjoyment and disposal thereof. For this purpose, he may use such force as may be reasonably
necessary to repel or prevent an actual or threatened unlawful physical invasion or usurpation of his
property. (n)
Art. 430. Every owner may enclose or fence his land or tenements by means of walls, ditches, live or
dead hedges, or by any other means without detriment to servitudes constituted thereon. (388)
Art. 431. The owner of a thing cannot make use thereof in such manner as to injure the rights of a third
person. (n)
Art. 432. The owner of a thing has no right to prohibit the interference of another with the same, if the
interference is necessary to avert an imminent danger and the threatened damage, compared to the
damage arising to the owner from the interference, is much greater. The owner may demand from the
person benefited indemnity for the damage to him. (n)

Art. 433. Actual possession under claim of ownership raises disputable presumption of ownership. The
true owner must resort to judicial process for the recovery of the property. (n)
Art. 434. In an action to recover, the property must be identified, and the plaintiff must rely on the
strength of his title and not on the weakness of the defendant's claim. (n)
Art. 435. No person shall be deprived of his property except by competent authority and for public use
and always upon payment of just compensation.
Should this requirement be not first complied with, the courts shall protect and, in a proper case,
restore the owner in his possession. (349a)
Art. 436. When any property is condemned or seized by competent authority in the interest of health,
safety or security, the owner thereof shall not be entitled to compensation, unless he can show that
such condemnation or seizure is unjustified. (n)
Art. 437. The owner of a parcel of land is the owner of its surface and of everything under it, and he can
construct thereon any works or make any plantations and excavations which he may deem proper,
without detriment to servitudes and subject to special laws and ordinances. He cannot complain of the
reasonable requirements of aerial navigation. (350a)
Art. 438. Hidden treasure belongs to the owner of the land, building, or other property on which it is
found.
Nevertheless, when the discovery is made on the property of another, or of the State or any of its
subdivisions, and by chance, one-half thereof shall be allowed to the finder. If the finder is a trespasser,
he shall not be entitled to any share of the treasure.
If the things found be of interest to science of the arts, the State may acquire them at their just price,
which shall be divided in conformity with the rule stated. (351a)
Art. 439. By treasure is understood, for legal purposes, any hidden and unknown deposit of money,
jewelry, or other precious objects, the lawful ownership of which does not appear. (352)
Reference: Civil Code of the Philippines; Book II, and Handouts