PROPERTY i.
Contracts for public works, and
Requisites: (USA)
(a) Utitlity
(b) Substantivity
(c) Appropriability or susceptibility to
appropriation
Classification: According to Mobility
(1) Immovables or real (Art. 415)
a) immovables by nature (pars 1 and 8) –
those which cannot be moved from place to
place
i. Land, buildings, roads and
constructions of all kinds adhered to
the soil
ii. Mines, quarries, and slag dumps, while
the matter thereof forms part of the
bed, and waters either running or
stagnant
b) immovables by incorporation (pars 2, 3, 7)
– those which are essentially movables but
are attached to an immovable
i. Trees, plants, and growing fruits, while
they are attached to the land or form
an integral part of an immovable
ii. 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
iii. Fertilizer actually used on a piece of
land
c) immovables by destination (pars 4, 5, 6,
9)– those which are essentially movables
but by the purpose for which they have
been placed in an immovable
i. 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
ii. 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
iii. 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
iv. 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
d) immovables by analogy or by law (par. 10)
servitudes and other real rights over
immovable property
(2) Movables –(Art. 416 to 417)
a) Those movables susceptible to
appropriation which are not included in the
preceding article
b) Real property which by any special
provision of law is considered as personal
property
c) Forces of nature which brought under
control by science; and in general, all
things which can be transported from place
to place without impairment of the real
property to which they are fixed
d) Obligations and actions which have for their
object movables of demandable sums and
e) Shares of stock of agricultural, commercial
and industrial entities although they may
have real estate.
Notes:
• Separate treatment by the parties of a
building from the land on which it stands
does not change the immovable character.
The fact that parties seem to have dealt
with it separate and apart from the land in
no wise changed its character as real
property. (Leung Yee v. Strong
Machinery)
• Buildings being immovable by nature, the
ownership of the land on which they are
erected cannot change their nature as
immovable property
• When trees and plants are cut or uprooted,
they become movables
• When ungathered fruits are sold, there is a
sale of movables.
• Immovable condition of machineries
depends upon their being destined for use
in the industry or work in the tenement.
• Where chattel mortgage is constituted on
machinery permanently attached to the
ground, machinery is personal property and
mortgage is not null and void, regardless of
who owns the land. (Makati Leasing and
Finance Corp v. Wearever Textile Mills)
• Intellectual property or the right of the
author, artist or inventor over his work is
personal property.
• Obligations under Article 418 refer to
credits such as bonds.
• Half-interest in a business is personal
property capable of appropriation and may
be subject to mortgage (Strochercker v.
Ramirez)
Cases
Machinery which is movable in its nature only
becomes immobilized when placed in a plant by
the owner of a property or plant but not when
placed by a tenant, usufructuary etc. unless
acting as an agent of the owner. (Davao
Sawmill v. Castillo)
While generally, real estate connotes the land
and the building constructed thereon, it is
obvious that the inclusion of the building,
separate and distinct from the land, in the
enumeration of what may constitute real
properties (Art 415, par 1 NCC) could mean
only one thing – that a building is by itself an
immovable property. In view of any specific
provision to the contrary, a building is an
immovable property, irrespective of whether or
not said structure and the land on which it is
adhered belong to the same owner. (Lopez v.
Orosa)
Since only personal properties could be the
subject of a chattel mortgage, the execution
and registration of the chattel mortgage and the
foreclosure of the house are null and void.
(Associated Insurance & Surety Co. v. Iya)
It is undeniable that the parties to a contract
may by agreement treat as personal property
that which by its nature would be real property,
as long as no interest of third parties may be
prejudiced thereby.
(Makati Leasing and Finance Corp. v.
Wearever Textile Mills)
The classification of property into realty or
personalty is different for t taxation purposes.
The NCC only supplements the Tax Code.
Differences between Real Rights and
Personal Rights
Kinds of rights considered as property
(a) Real (jus in re)—power belonging to a
person over a specific thing. It gives direct
and immediate juridical power over a thing
susceptible of being exercised against a
determinate person and the whole world.
(b) Right of obligation or Personal (jus ad
rem)—rights belonging to one person to
demand of another as a definite passive
subject, the fulfillment of a prestation to
give, to do, or not to do.
Real rights arises from (OPLUMEPARP)
1. Ownership 6)Easement
2. Possession 7) Pledge
3. Lease 8) Antichresis
4. Usufruct 9) Redemption
5. Mortgage 10)
Preemption

Importance and Significance of

Classification of Property Real Rights Personal Rights
(1) One definite active (1) There is a
(a) Criminal law subject and the rest definite active
Usurpation of property can take place only of the world as and passive
with respect to real property. On the other passive object.
hand, robbery and theft can be committed (2) Object is a (2) Object is an
only against personal property. corporeal thing. intangible thing.
(3) Real right affects (3) Personal affects
(b) Form of contracts involving movables or the thing directly. the thing directly
immovables through the
Only real property can be the subject prestation of the
matter of real property and antichresis, debtor.
while only personal property can be the (4) The creation of the (4) Creation of the
subject matter of simple loan or mutuum, juridical relation is juridical title is by
voluntary deposit, pledge and chattel by mode and title. title alone.
mortgage. (5) Not extinguished
(5) Extinguished by the by the loss or
(c) Prescription loss or destruction destruction of the
The determination of the prescriptive period of the thing. thing.
depends on whether the property is real or (6) Gives rise to real (6) Produces only
personal. Ownership over immovables is actions against 3rd personal actions
acquired by prescription, although there is persons against definite
bad faith in 30 years (Art. 1137), whereas debtor.
the period is only 8 years in case of
movables.
Classification of Movables
(d) Venue
In private international law, the general law (a) Consumables – Those whose use
is that immovables are governed by the law according to their nature destroys the
of the country in which they are located, substance of the thing or causes their loss
whereas movables are governed by the to the owner.
personal law of the owner which in some (b) Non-consumable
case is the law of his nationality and in
other cases, the law of his domicile. Classification According to Ownership

(e) Taxation a) Public Dominion

i. intended for public use
 ii. intended for public service of state,
provinces, cities & municipalities
Characteristics:
i. outside the commerce of men – cannot
be alienated or leased
ii. cannot be acquired by private individual
through prescription
iii. not subject to attachment & execution
iv. cannot be burdened by voluntary
easement
b) Private Ownership –
i. patrimonial property of state, provinces,
cities, municipalities
-exist for attaining economic ends of
state
-property of public dominion when no
longer intended for public use/service –
declared patrimonial
ii. property belonging to private persons –
individually or collectively
Cases
Reclaimed land is public property. In case of
gradual erosion by the ebb and flow of the tide,
private property may become property of the
public domain, where it appears that the owner
abandoned it or permitted it to be destroyed.
When they stay in that condition until reclaimed
by filling in done by the government, they
continue to be government property after
reclaiming. Immediate possession by the former
owner does not confer on him ownership of the
lots, because, as they were converted into
property of the public domain, no private
person could acquire title except in the form
and manner established by law.
(Government of the Philippine Islands v.
Cabangis)
The sale to private parties of a public road
which has been validly closed by the city
government is valid. Art 422 of the Civil Code
expressly provides that “property of public
dominion, when no longer intended for public
use of for public service, shall form part of the
patrimonial property of the State.”
(Cebu Oxygen and Acetylene v. Bercilles)
The attachment of the municipal trucks, police
cars, police station and market stalls is void
because the properties levied upon are exempt
from execution. It is generally held that
property owned by a municipality, where NOT
used for a public purpose but for quasi-private
purposes, is subject to execution on a judgment
against a municipality, and may be sold.
However, property for public use of the
municipality is not within the commerce of man
so long as it is used by the public and,
consequently, said property is also inalienable.
Property, real and personal, held by
municipalities in trust for the benefit of their
inhabitants, and used for public purposes, is
exempt from execution. (Vda. De Tantoco v.
Municipal Council of Iloilo)
In the absence of a deed or title to any land
claimed by the City as its own, showing that it
was acquired with its private or corporate
funds, the presumption is that such land came
from the State upon the creation of the
municipality. Such property is held in trust for
the benefit of its inhabitants, whether it be for
governmental or proprietary purpose. (Salas v.
Jarencio)
Public funds are held in trust for the people,
intended and used for the accomplishment of
the purposes for which municipal corporations
are created, and that to subject said properties
and public funds to executions would materially
impede, even defeat, and in some instances,
destroy such purpose. (Municipality of San
Miguel v. Fernandez)
There are 2 norms of classification of property.
Art. 423 and 424 CC provide that except for
property for public use and public works for
public service paid for by 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.” Under this, all but 2
of the properties would be patrimonial
properties of the former province. Under the
law on Municipal Corporations, however, to be
considered public property, it is enough that
property be held and devoted for governmental
purposes. Using this, 26 of the lots are
patrimonial. (Province of Zamboanga del
Norte v. City of Zamboanga)
The 157.84 hectares of reclaimed lands
comprising the Freedom Islands, now covered
by the certificates of title in the name of PEA,
are alienable lands of the public domain. PEA
may lease these lands to private corporations
but may not sell or transfer ownership of these
lands to private corporations. PEA may only sell
these lands to Philippine citizens, subject to the
ownership limitations in the 1987 Constitution
and existing laws.
The 592.15 hectares of submerged areas of
Manila Bay remain inalienable natural resources
of the public domain until classified as alienable
or disposable land open to disposition and
declared no longer needed for public service.
The government can make such classification
and declaration only after PEA has reclaimed
these submerged areas. Only then can these
lands qualify as agricultural lands of the public
domain, which are the only natural resources
the government can alienate. In their present
state, the 592.15 hectares of submerged areas
are inalienable and outside the commerce of
man. (Chavez v. PEA)
 OWNERSHIP
• Independent and general right of a person to
control a thing particularly in his possession,
enjoyment, disposition, and recovery, subject
to no restrictions except those imposed by
the state or private persons, without
prejudice to the provisions of the law.
• Power of a person over a thing for purposes
recognized by law & within the limits
established by law
Attributes of Ownership
(1) Jus possidendi- right to possess
(2) Jus Utendi (right to use)—right to enjoy by
receiving the thing that it produces.
(3) Jus abutendi—right to enjoy by consuming
the thing by its use
(4) Jus Disponendi—the right to dispose or the
power of the owner to alienate, encumber,
transform, and even destroy the thing
owned.
- Includes right no to dispose
- This right is reserved exclusively to the
owner
- This right can be partial if it can be
divided. It can also be temporary as in the
case of lease or pledge.
(4) Jus Fruendi – right to receive fruits
(5) Jus Vindicandi—right to exclude from the
possession of the thing owned by any other
person to whom the ownership has not
transmitted such thing, by the proper
action for restitution, with the fruits,
accessions, and indemnification for
damages.
Actions for possession:
1. movable – replevin (return of a movable)
2. immovable –
a) forcible entry – used by person
deprived of possession through Force,
Intimidation, Strategy, Threat or
Stealth (FISTS)
b) unlawful detainer – used by
lessor/person having legal right over
property when lessee/person
withholding property refuses to
surrender possession of property after
expiration of lease/right to hold
property (physical possession, 1 year
from the last date of demand to vacate
the premises)
c) accion publiciana – plenary action to
recover possession when owner is
dispossessed by any other means than
the grounds for instituting a Forcible
Entry and Unlawful Detainer case.
d) accion reinvindicatoria – recovery of
dominion of property as owner; main
issue is ownership not merely
possession.
e) Writ of Possession -- the original
registered owner in the Torrens
System, is entitled to a writ of
possession not only against the parties
who appear and answer in the land
registration proceedings, but also
against all those who, having been
served with process, do not appear or
answer.
f) Writ of injunction
• Not a proper remedy for the recovery
of possession UNLESS plaintiff is
admittedly the owner of the property
and is in possession of it.
• May be used to prevent or restrain acts
of trespass or illegal interference by
others of his possession of the
property.
• In actions of FE, the plaintiff within 10
days from the filing of the complaint,
may file a motion for a Writ of
Preliminary Mandatory Injunction to
restore him in possession (mandatory)
and prevent further acts of
dispossession (injunction).
(6) Right to Exclude: Doctrine of Self-Help
Doctrine of self-help authorizes the lawful
possessor to use reasonable force to prevent a
threatened unlawful invasion or usurpation of
the property.
Elements:
a) Person exercising rights is owner or
lawful possessor
b) There is actual or threatened unlawful
physical invasion of his property (not
available to squatters)
c) Use force as may be reasonably
necessary to repel or prevent it
-Available only when possession has
not yet been lost, if already lost –
resort to judicial process
-May be exercised by 3rd person –
negotiorum gestio
(7) Right to Enclose or Fence without detriment
to servitudes constituted thereon.
• A person cannot enclose his tenement and
construct a fish pond that will obstruct the
natural flow of waters from the upper
tenements to the injury of the owners of
such tenements. (Lunod v. Meneses)
(8) Right to Receive Just Compensation in case
of Expropriation
(9) Right to Space and Subsoil
• The right of the owner extends to the space
and subsoil as far as necessary for his
practical interests or to the point where it is
possible to assert his dominion and there is
the possibility of obtaining some enjoyment
or benefit. Beyond these limits, he would
have no legal interests.
(10) Right to Hidden Treasure (if found on his
property)
a) hidden and unknown movables consist
of money or precious objects
 b) owner is unknown
c) If treasure is found by a stranger by
chance –½ belongs to finder; the finder
must not be trespasser
be entitled to a share.
• Discovery by chance
When there is no purpose or intent to look
for the treasure.
(12) Right to accession
Notes
• Requisites in an action to recover
(a) Identity of the property
(b) Strength of plaintiff’s title/ Better Title
• Plaintiff must depend on the strength of
his own title and not on the weakness
of the title of the other.
• One year after a decree of registration
under the Torrens System, the title
becomes perfect and indefeasible.
• Ownership and title to land duly
recorded cannot be overcome by
gratuitous titles such as inheritance or
donation or mere tax declarations.
• Tax declarations are strong evidence of
ownership where accompanied by
possession for period sufficient for
prescription.
• Titles from the Spanish government
have been held sufficient basis to prove
ownership.
Composition titles—proof of exclusive
ownership
Possessory information title—only
prima facie evidence and
rebuttable.
Cases
Art. 433 of the NCC provides: “Actual
possession under claim of ownership raises a
disputable presumption of ownership. The true
owner must resort to judicial process for
recovery of the property.” Under Art. 538 NCC,
the present possessor is to be preferred in
cases where there are conflicting claims. Since
defendants are presently in possession of the
property, they enjoy the presumption of
ownership in their favor which has not been
successfully rebutted by evidence. (Perez v.
Mendoza)
Ownership, which had been judicially confirmed
by the CFI in a proceeding in rem could not be
defeated by the claim of the adverse party
based on a mere unnotarized affidavit. The
Original Certificate of Titles has become
indefeasible and incontrovertible. As to the
unnotarized affidavit, it failed to identify the
properties involved; it is not a sufficient basis or
support for the alleged partition. (Dizon v. CA)
Limitation of Real Right of Ownership
(1) For the benefit of the state and for public
interest (Police power, eminent domain,
taxation)
(i) Expropriation for public use
(ii) Military requisitions
(iii) Zonification laws
(iv) Public or government monopolies
(v) Law on water and mines
(vi) Public health and safety
(vii) Public easements
(2) Legal servitudes and Voluntary Servitudes
(3) Limitations imposed by party transmitting
property
(i) Either by contract or last will or
donations
(ii) Stipulation on inalienability
(4) True Owner Must Resort to Judicial Process
(5) Sic Utere Tuo Ut Alienum Non Laedas—it is
unlawful to exercise the right of ownership in
such a manner as to have no other effect
than to injure a third person without benefit
to the owner.
(a) Act in State of Necessity
• The law permits the injury or
destruction of things belonging to
others provided this is necessary to
avert a greater danger or dangers.
• Different from concept of self-help; the
purpose is to protect the actor himself
or another person at the expense of the
owner of the property who has no part
in the state of necessity.
(b) Liability of Proprietors under Article
2191, NCC
(c) Fortified places or Fortresses- must
comply with conditions under special
laws and regulations
(d) Easement of Aqueduct- must observe
proper distances and prevent damage
to neighboring tenements
(e) Planting of Trees
(f) Easement of light and view
(g) Easement of right of way
(h) Easement of Passage of Water from
Upper to Lower Tenements
(i) Easement of Drainage
(j) Easement of aqueduct
(k) Lateral and Sub-adjacent Support
ACCESSION
• The right by virtue of which the owner of a
thing becomes the owner of everything that
it may produce or which may be
inseparably united or incorporated thereto,
either naturally or artificially.
• Based on principles of justice, necessity
and utility
General Principles of Accession
(1) Accessory follows the principal (accesio
cedit principal)
(2) No unjust enrichment (Art. 443)
(3) All works, sowing, and planting are
presumed made by the owner and at his
 expense, unless the contrary is proved (Art.
446)
(4) Accessory incorporated to principal
such that it cannot be separated
without injury to work constructed or
destruction to plantings or
construction of works.
(5) Bad faith involves liability for damages and
other dire consequences
(6) Bad faith of one party neutralizes bad faith
of the other (Art. 453).
(7) Ownership of fruits belong to the principal
thing; Exceptions:
(i) possession in good faith – possessor is
entitled to fruits
(ii) in usufruct – usufructuary is entitled to
fruits
(iii) in lease – lessee is entitled to fruits
(iv) in antichresis – antichretic creditor is
entitled to fruits
Kinds of Accession
(1) Accession discreta – the right pertaining
to the owner of a thing over everything
produced thereby:
(a) Natural fruits, or spontaneous products
of the soil, and the young and other
products of animals (Art. 442)
(b) Industrial fruits, or those produced by
lands of any kinds through cultivation
or labor (Art. 442)
(c) Civil fruits, or rents of buildings, the
price of leases of and other property
and the amount of perpetual or life
annuities or other similar income (Art.
442)
• A dividend, whether in the form of cash
or stock, is income or fruit and
consequently should go to the
usufructuary, rather than the owner of
the shares of stock in usufruct.
Dividend is declared only out of the
profits of a corporation and not out of
its capital. (Bachrach vs. Seifert).
• A bonus paid by the mortgage-debtor
to another who had mortgaged his land
to secure the payment of the debtor’s
obligation to a bank is not a civil fruit of
the mortgaged property. It is not
income delivered from the property but
a compensation granted for the risk
assumed by the owner of the property.
(Bachrach vs. Talisay-Silay)
(2) Accession Continua – the right pertaining
to the owner of a thing over everything that
is incorporated or attached thereto, either
naturally or artificially.
(a) With regard to immovable property
(a.1) Accession industrial (BPS)
(i) Building,
(ii) Planting, or
(iii) Sowing (Arts. 445-455)
(a.2) Accession natural (FACA)
(i) Alluvium
(ii) Avulsion
(iii) Change in the course of river
(iv) Formation of islands
(b) With regard to movable property (ACS)
(b.1) Adjunction or conjunction
(i) inclusio or engraftment
(ii) soldadura or attachment
(a) ferruminatio – objects are
of the same metal
(b) plumbatura – objects are
diff. metals
(iii) tejido or weaving
(iv) pintura or painting
(v) escritura or writing
(b.2) Commixtion or confusion
(b.3) Specification
Notes:
Accession Industrial
• Art. 446 establishes 2 disputable
presumptions regarding BPS:
(a) The works etc. were made by the
owner
(b) They were made at the owner’s
expense
Exception: When contrary is proven
Right of owner of materials (OM)
1. Right to be indemnified or paid of value
of property by owner of land
2. Right to remove materials if he can do
so w/o injury to work constructed if
owner has not paid
3. Right to damages and demolition even
if with injury to work if owner of land is
in bad faith
1st Case:
Landowner (LO) is BPS using materials of
another
• Good Faith
OM—lies in ignorance of BPS’ acts
BPS/LO—belief that the materials belong to
him and who is not aware that there
exists in his title or mode of acquisition
any flaw which invalidates it
Note: his negligence may subject him
to liability for damages
• Bad Faith
 OM—allowing the use of the materials
without protest
• Good faith
BPS/LO—knowledge of lack of title and the
absence of permission of the owner of
the material to pay their value
Landowner and Owner of Material
BPS
OM/BPS—lies in belief that the land belongs
to him, and his ignorance of any defect or
flaw in his title.
LO—ignorance of the BPS’ acts, or belief
that the BPS has the right to construct,
plant or sow

• Bad faith
Good faith Good faith OM/BPS—lies in his knowledge of his lack of
1. Right to acquire 1. Limited right of title and absence of permission of the LO
the improvements removal if there would LO—knowledge of BPS’ lack of right to
after paying the be no injury to work construct, plant or sow
value of materials constructed, or without
plantings or
constructions being
(1) Option is given to Landowner
destroyed (Art. 447)
(2) Right of LO to remove or demolish
2. Right to receive
improvement
payment for value of
materials • LO cannot refuse to exercise his right of
choice and compel the BPS to remove or
demolish the improvement. He is entitled to
Good faith such removal only when after having
chosen to sell his land, the other party fails
1. Right to receive to pay for the same.
Bad faith payment for value of
materials
1. Acquire BPS after (3) Right of LO to require payment for value of
paying its value and 2. Absolute right of the land
paying indemnity for removal of the work
constructed in any • The purpose of the exception (if the value
damages (Art. 447)
event of land is considerably more than that of
but subject to OM’s
the building or trees) is to prevent
right to remove Right to be injustice. It is considered inequitable in
indemnified for such case to compel the BP to pay for the
damages price of the land.
• A “forced lease” is created b/w the parties
if the LO does not choose to appropriate
Bad faith the improvement after the proper
Good faith indemnity.
1. Lose materials
1. Right to acquire • As to when the land’s value is “considerably
without right to
the improvements more” than that of the improvement will
indemnity
without paying have to be determined by the court taking
indemnity into consideration the circumstances of
each particular case.
2. Right to acquire
indemnity for
damages if there are (5) Cases not covered
hidden defects • Art. 448 does not apply which are governed
known to OM by other provisions of law:
(a) co-ownership
Bad faith (b) usufruct
Bad faith (c) agency
(Same as though acted
in good faith under (d) lease
(Same as though
Art. 453) • Where there is a contractual relation
acted in good faith
existing between the LO and the BPS, their
under Art. 453)
stipulations govern.
Landowner BPS and Owner of
Material

2ND Case:
Good faith Good faith
BPS builds, plants, or sows on another’s
land using his own materials
 Bad faith
LO has option to: BPS has right to
retain the land until
a) Acquire the 1. LO must indemnify
the payment of
improvement after BPS for the
indemnity (right of
paying indemnity improvements and pay
retention)
which may be the: damages as if he
- original cost of himself did the BPS
improvement
Note: During this 2. LO has no option to
or
period BPS is not sell the land and
- increase in
required to pay rent caanot compel BPS to
value of the
buy the land unless
whole brought
BPS agrees to 4. Recover necessary
about by the
expenses for
improvement
preservation of land.
b) Sell the land to the
BP pr collect rent Bad faith
from sower unless:
- value of land Good faith
is more than (Same as though acted
the thing built, in good faith under Art.
planted or 453) BPS has right to:
sown a) be indemnified for
- BP shall pay damages
rent fixed by
parties or by b) remove all
the court in improvements in any
case of event
disagreement
Note: LO can be forced
to choose under pain
of direct contempt or
court can choose for
him

Bad faith
Good faith

(Same as though
1. LO has right to acted in good faith
collect damages in any under Art. 453)
case and option to:
a) Acquire 3rd Case:
improvements without
paying indemnity if the BPS builds. Plants, or sows on another’s
improvements are still land with materials owned by third person
standing on the land Bad faith
b) Sell the land to BP
(1) Liability of LO
or collect rent from the
1. Pay damages to LO
sower unless the value • He shall be subsidiarily liable for the value
of the improvements in 2. BPS lose materials of the materials if the following requisites
which case there will without right to are present:
be a forced lease indemnity (a) The OM has not acted in bad faith
(b) The BPS has no property with which to
c) Order demolition of 3. No right to refuse pay; and
improvements or to buy the land (c) LO appropriates the accession to
restoration of land to
himself
its former condition at
the BPS’ expense.
(2) Right of BPS who pays OM
2. LO must pay for
necessary expenses for • If BPS pays the OM, the former may seek
preservation. reimbursement from the LO for the value of
the materials and labor to prevent unjust
enrichment of the LO at the expense of the
BPS. This is true if:
 (a) The BPS acted in good faith; and for indemnity; Bad faith Bad faith
(b) The LO appropriates the improvement or
1. Recover 1. Recover
b) Demolition necessary value from
Landowner BPS OM or expenses for BPS (as if both
restoration; preservation are in good
Good faith Good faith Good faith or of land from faith)
1. Right to 1. Right of 1. Collect LO unless LO
c) Sell to BP, 2. If BPS
acquire retention until value of sells land
or to rent to acquires
improvements necessary materials sower improvement,
and pay and useful primarily from remove
indemnity to expenses are BPS and 2. Pay
materials if
BPS; paid subsidiarily necessary
feasible w/o
subsidiarily liable for LO if expense to
2. Pay value injury
liable to OM BPS insolvent BPS
of materials 3. No action
2. Has option to OM 2. Limited against LO but
to: right of liable to LO for
Bad faith
removal damages
a) Sell land to
(Same as
BP except if
when all
the value of
acted in good
the land is
faith under
considerably
Art. 453)
more
b) Rent to
sower Bad faith Bad faith
1. Acquire (Same as
improvement Bad faith when all acted
Good faith
after paying in good faith
(Same as
1. Right to indemnity and under Art 453)
when all
acquire damages to
acted in good
improvements BPS unless
faith under
and pay latter decides Good faith
Art. 453)
indemnity to Good faith to remove
Bad faith 1. Remove
BPS improvements
1. Right of materials if
1. Lose the
2. Has option retention until 2. Subsidiarily Good faith possible w/o
materials
to: necessary liable to OM injury
without right 1. May
and useful for value of
a) Sell land to to indemnity remove 2. Collect
expenses are materials
BP except if improvements value of
paid 2. Must pay
the value of materials from
for damages 2. Be
the land is 2. Keep BPS BPS;
to BPS Bad faith indemnified
considerably without subsidiarily
more for damages
indemnity to 1. Acquire from LO
in any event
OM and improvements
b) Rent to
collect after
sower
damages indemnity;
3. Without from him. subsidiraily
subsidiary liable to OM
liability for for value of
cost of materials
materials
2. Has option
to: Good faith

Good faith a) Sell the 1. Collect

land to BP value of
1. LO has except if the materials
right to value of the primarily from
collect Bad faith BPS and
land is
damages in considerably subsidiarily
1. Right of
any case and more from LO
retention until
option to:
necessary 2. Collect
b) Rent to
a) Acquire expenses are damages from
sower
improvements paid BPS
w/o paying
2. Pay value
 of materials 3. If BPS accessory thing. When the BPS failed to pay for
to OM and acquires the land, he lost his right of retention.
Good faith (Bernardo vs. Baticlan)
pay him improvements,
1. Acquire damages remove
Since the option to remove or demolish
improvement materials in
improvement is given to the LO and it is limited
after paying any event
to paying for the improvement or selling his
indemnity; land to the BPS, he cannot refuse to exercise
subsidiarily his right of choice and compel the builder to
liable to OM remove or demolish the improvement. He is
2. LO has entitled to such removal only when after
option to: choosing to sell his land, the other party fails to
Good faith pay for the same. (Ignacio vs Hilario)
a) Sell land to
1. Collect The owner of a building erected in good faith on
BP except if
value of a land owned by another is entitled to retain
value of land
materials possession of the land until he is paid the value
is
primarily from of the building. An order by a court compelling
considerably
BPS and a builder in good faith to remove is building
more
subsidiarily from land belonging to another who chooses
b) Rent to Bad faith from LO neither to pay for such building nor sell the
sower land is null and void for being offensive to Art.
1. Right of 2. Collect
retention until damages from 448. (Sarmiento v. Agana)
necessary BPS In Depra vs Dumlao, the SC laid down the
Bad faith expenses are
3. If BPS guidelines for enforcement of rights under Art.
1. Acquire paid 448 and 546
acquires
improvements 2. Pay value improvements, 1. TC must determine the fair price of the land,
and pay of materials absolute right expenses for improvement and increase in
indemnity and to OM of removal in value of land due to improvements.
damages to
any event
BPS unless 3. Pay 2. TC must grant period where:
latter decides damages to
to remove OM a) landowner must exercise option
Bad faith
materials b) parties must pay in accord with the option
1. No right to chosen
indemnity
c) builder can refuse to offer to sell if value of
2. Loses right land is greater than the value of improvements
to material
d) if the situation is that of (c), the parties can
agree upon the terms of the lease. If there are
no agreements, the TC must fix the terms.

Good faith
While a possessor in good faith may retain the
1. Receive property until he is reimbursed for necessary
indemnity for and useful expenses, all the fruits he receives
damages from the moment his good faith ceases must be
deferred or paid by him to the LO. He may,
2. Absolute
however, secure the reimbursement of his
right of
expenses by using the fruits to pay it off
removal of
(deduct the value of the fruits he receives from
improvements
the time his good faith ceases from the
in any event
reimbursement due him). (Ortiz vs Kayanan)

Cases:
When, in the face of a conflict between the
rights of an owner and a builder, sower, planter
in good faith, the owner opts to sell the land to
the BPS who is subsequently unable to pay, the
BPS loses his right of retention. A forced co-
ownership occurs when the BPS has acted in
good faith . It is the owner of the land who is
allowed to exercise the option because his right
is older and because, by the principle of
accession, he is entitled to the ownership of the
A BPS in good faith does not lose its rights
under Art. 448 merely because of the fact that
some years after acquiring the property in good
faith, it learned about and aptly recognized the
right of the LO to a portion of the land occupied
by the building. The supervening awareness
does not prejudice its right to claim the status
of a builder in good faith. (Tecnogas Phil.
Manufacturing Corp. vs CA)
The BPS in good faith should not pay rentals to *riparian owner – owner of the land fronting
the LO spouses. The spouses, having opted to such riverbanks
appropriate the improvement on the lot, have
The alluvium, by mandate of Art. 457, is
to reimburse the BPS of the cost of construction
automatically owned by the riparian owner from
of the building (in accordance with Art 546).
the moment the soil deposit can be seen but is
The BPS has the right to retain the
not automatically registered property, hence,
improvements until he is reimbursed. An
subject to acquisition through prescription by
implied tenancy or possession in fact is created
3rd persons. (Grande vs CA)
pending the payment of the corresponding
indemnity. (Pecson v CA) (ii) Avulsion – the accretion which takes
place whenever the current of a river,
lake, creek or torrent segregates from
Good faith consists in the belief of the builder
an estate on its bank a known portion
that the land he is building on is his and he is
of land and transfers it to another
ignorant of any defect or flaw in his title. And
estate (Art. 459)
as good faith is presumed, the LO has the
burden of proving bad faith on the part of the
BPS. (Pleasantville Dev’t. Corp. v CA)
Distinguished from Alluvium
Art 448 applies only in cases where a person Alluvium Avulsion
constructs a building on the land of another in
good or bad faith, as the case may be. It does 1. Deposit of soil is 1. Deposit of soil is
not apply to a case where a person constructs a gradual sudden or abrupt
building on his own land (like in this case), for
2. Deposit of the soil 2. The owner of the
then there can be no question as to good or bad
belongs to the owner property from which a
faith of the builder. (Coleongco v Regalado)
of the property where part was detached
the same was retains the ownership
deposited thereof (2 yrs)
The rule of Art. 453 of the Civil Code invoked by
the BPS can not be applied to the instant case 3. The detached
for the reason that the improvements in portion can be
question were made on the premises only after 3. The soil cannot be
identified
the LO had tried to recover the land in question identified
from him, and even during the pendency of this
action in the court below. After the BPS had
refused to restore the land to the LO, to the Requisites of Avulsion
extent that the latter even had to resort to the
(a) The segregation and transfer must be
present action to recover his property, the BPS
caused by the current of a river, creek
could no longer be regarded as having impliedly
or torrent.
assented or conformed to the improvements
thereafter made by appellant on the premises. (b) The segregation and transfer
(Felices v. Iriola) must be sudden or abrupt
(c) The portion of land transported must
ACCESSION NATURAL be known and identifiable

(2) Accession natural – may be in the Rights of the riparian owner

form of either:
(i) Alluvium – the accretion which lands
adjoining the banks or rivers, lakes, creeks
or torrents gradually receive from the
Requisites of alluvium:
(a) The accretion must be gradual
(b) The cause of the accretion must be the
current of the water
(c) The land where the accretion takes
place must be adjacent to the banks of
the rivers
(d) Alluvium must be natural
• Removal within 2 years
• The former owner preserves his ownership
of the segregated portion provided he
removes (not merely claims) the same
within the period of 2 yrs.
• Art. 460 applies only to uprooted trees. If a
known portion of land with trees standing
thereon is carried away by the current to
another land, Art. 459 governs.
(iii) Change of river beds
– that which takes place when a river bed
is abandoned through the natural
change in the course of the waters (Art.
461)

Requisites for the application of Art. 461:

 (a) There must be a change in the natural
course of the waters of the river.
(b) The change must be abrupt or sudden.
Right of owner of land occupied by new
river course
1. Right to old bed ipso facto in proportion
to area lost
2. Owner of adjoining land to old bed shall
have right to acquire the same by
paying its value – value not to exceed
the value of area occupied by new bed
3. Formation of island in non-navigable
river
a) owner of margin nearest to islands
formed – if nearest to it
b) owner of both margins – if island is
in the middle (divided into halves
longitudinally)
(iv) Formation of islands either on the
seas within the jurisdiction of the
Philippines.
On lakes, and on navigable or floatable
rivers (Art. 464) or non-navigable and non-
floatable rivers (Art. 465).
(1) Ownership of islands formed through
alluvion
(a) If formed:
(a.1) on the seas within Phil. jurisdiction
(a.2) on lakes, and
(a.3) on navigable or floatable waters, the
island belongs to the State
(b) If formed in non-navigable and non-
floatable rivers:
(b.1) it belongs to the nearest riparian
owner or owner of the margin or bank
nearest to it as he is considered in the
best position to cultivate and develop
the island
(b.2) it is divided longitudinally in halves, if
it is in the middle of the river
(c) Concept of navigable river
• A navigable river is one which forms in
its ordinary condition by itself or by
uniting with other waters a continuous
highway over with other waters a
continuous highway over which
commerce is or may be carried on.
Test: A river is navigable if it is used or
susceptible of being used, in its ordinary
condition, as a highway of commerce, that is,
for trade and travel in the usual and ordinary
modes.
Accession Continua-Movable property:
(1) Adjunction or Conjunction – that which
takes place whenever movable things
belonging to different owners are united in
such a way that they cannot be separated
without injury, thereby forming a single
object (Art. 466)
Kinds of adjunction:
(a) inclusio or engraftment
(b) soldadura or attachment
ferruminatio – objects are of the same
metal
plumbatura – objects are diff. metals
(c) tejido or weaving
(d) pintura or painting
(e) escritura or writing
Ownership of new object formed by
adjunction
(a) If the union took place without bad
faith, the owner of the principal thing
acquires the accessory, with the
obligation to indemnify the former
owner of the accessory for its value in
its uncontroverted state.
(b) If the union took place in bad faith,
Art. 470 applies.
TEST to determine principal in adjunction:
• In order of application, the principal is that:
(a) To which the other (accessory) has
seen united as an ornament or for its
use or perfection (Art. 467)- INTENT
(b) Of greater value, if they are unequal
values-VALUE
(c) Of greater volume, if they are of an
equal value (Art. 468)-VOLUME
(d) That of greater merits taking into
consideration all the pertinent legal
provision applicable as well as the
comparative, merits, utility and volume
of their respective things.
Where adjunction involves 3 or more
things
• Art. 466 should be applied in an equitable
manner. The principal should be
determined and distinguished from the
 others which would be considered the
accessories.
Rights:
1. If both are in good faith – owner of
principal acquired the accessory with
indemnification
2. If both are in good faith – may
separate them if no injury will be
caused;
if value of accessory is greater than
principal, owner of accessory may
demand separation even if damages
will be caused to the principal
(expenses to be borne by one who
caused the conjunction)
3. If owner of accessory is in bad faith –
owner of accessory with damages to
principal
4. If owner of principal is in bad faith –
owner of accessory shall have option of
principal paying value of accessory or
removal of accessory despite
destruction of principal
5. Owner of accessory or principal has
right to indemnity when thing adjuncts
w/o his consent – may demand that a
thing equal is kind, value and price
(2) Specification – that which takes place
whenever a person imparts a new form to
materials belonging to another person (Art.
474).
Rights
1. If person who made the transformation
is in good faith - he shall appropriate
the thing transformed as his own with
indemnity to owner of material for its
value
2. If material is more precious than
transformed thing – owner of material
may appropriate the new thing to
himself after indemnity paid to labor or
demand indemnity for materials
3. If person who made the transformation
is in bad faith, owner of material shall
appropriate the work to himself w/o
paying maker or demand indemnity for
value of materials & damages
4. If transformed thing is more valuable
than material, owner of material cannot
appropriate
(3) Commixtion or confusion – that which takes
place whenever there is a mixture of things
solid or liquid belonging to different owners, the
mixture of solids being called commixtion, while
that of liquids, confusion (Art. 472).
Rights
1. If both owners are in good faith – Each
owner shall acquire a right proportional
to the part belonging to him (vis-a-vis
the value of the things mixed or
confused)
2. If one owner is in bad faith – he shall
lose the thing belonging to him plus
indemnity for damages caused to
owner of other thing mixed with his
thing
3. If both in bad faith no cause of action
against each other
QUIETING OF TITLE
• An action to quiet title to property or to
remove a cloud thereon is a remedy or
form of proceeding originating in equity
jurisprudence, which has for its purpose an
adjudication that a claim of title or an
interest in property, adverse to that of
complainant, is invalid, so that the
complainant and those claiming under him
may be forever free from any danger of the
hostile claim.
Requisites
(1) There is a cloud on title to real property or
any interest to real property (Art. 476)
(2) Plaintiff has legal or equitable title to or
interest in the subject/real property.
(3) Instrument, record, claim,
encumbrance or proceeding must be valid and
binding on its face but in truth and in fact
invalid, ineffective, voidable or unenforceable;
contract upon which defendant relies has been
extinguished or terminated, or has prescribed
(4) Plaintiff must return benefits received
from the defendant.
Differences between action to quiet title,
action to remove a cloud, and action to
prevent a cloud
• An action to quiet title, strictly considered,
is substantially an action to put an end to
vexatious litigation in respect to the
property involved.
• An action to remove a cloud is intended to
procure the cancellation, delivery of,
release of an instrument, encumbrance, or
claim constituting a claim on plaintiff’s title,
and which may be used to injure or vex
him in the enjoyment of his title.
• In an action to quiet title, the plaintiff
asserts his own estate and declares
generally that the defendant claims some
estate in the land, without defining it,
and avers that the claim is without
foundation.
• In a suit to remove a cloud, plaintiff not
only declares his own title, but also avers
the source and nature of defendant’s
claim, points out its defect, and prays that
it be declared void.
• In an action to prevent a cloud, relief is
granted if the threatened or anticipated
 cloud is one which if it existed, would be (2) unity of material of the object of ownership
removed by suit to quiet title. (3) recognition of ideal shares or aliquot
(4) absolute control of each co-owner over his
Prescription of action—Imprescriptible if ideal share, not over specific portions of the
plaintiff is in possession; if not, prescribes property
within period for filing accion publiciana, (5) There is a mutual respect among co-owners
accion reivindicatoria. in regard to the use, enjoyment, and
preservation of the property owned in
Notes: common.
An action for reconveyance:
a) Prescribes in 10 years if the plaintiff is Differences between co-ownership and
NOT in possession of the property and joint tenancy
if the action for reconveyance is based
on an implied or constructive trust. The Co-ownership Joint Ownership
point of reference is the date of Tenancy in Common, Joint tenancy, Tenancy
registration of the deed or the date of Ownership in in common, Notion of
the issuance of the certificate of title Common, Co- “all-for one, one-for-
over the property. dominium all”
b) Is IMPRESCRIPTIBLE if the person Civil law origin Common Law/ Anglo-
claiming to be an owner is in actual American origin
possession of the property. Here, the Each co-owner owner Each joint owner, the
right to seek reconveyance in effect of his ideal share surviving joint owners
seeks to quiet title. (Olviga v. CA) are subrogated in his
rights by accretion
Each co-owner may Joint owner must
It is not necessary that the vendee has an dispose of his obtain the consent of
absolute title. An equitable title is sufficient to undivided share all the rest to dispose
clothe him with personality to bring an action to without the other’s of his share.
quiet title. (Pingol v. CA) consent.
In case there is a co- The defense of one
What plaintiff imagined as clouds cast on his owner who is a minor, joint owner can be
title were PR’s alleged acts of physical intrusion minority as a defense used as a defense by
and not. an instrument, record, claim, against prescription is all joint owners.
encumbrance or proceeding which constitutes exclusive to him.
or casts a cloud, doubt, question or shadow
upon the owner’s title or interest in real Differences between partnership and co-
property. Clearly, the acts alleged may be ownership
considered grounds for an action for forcible
entry but definitely not one for quieting of title. Ordinary Co-ownership
(Titong v. CA) Partnership
With legal/juridical No legal personality
RUINOUS BUILDINGS AND TREES IN personality distinct distinct from its
DANGER OF FALLING from its members members
Created only by created by “LAW
Liability for damages: agreement or contract FOCUS” [Law,
1. collapse – engineer, architect or to that effect Fortuitous Event,
contractor Occupancy, Contract,
2. collapse resulting from total or partial Succession]
damage; no repair made – owner; Purpose is to obtain Purpose is collective
state may compel him to demolish or profit enjoyment and to
make necessary work to prevent if from maintain the unity and
falling preservation of the
3. if no action – done by government at things owned in
expense of owner common.
No term set limit set As a rule, an
by law agreement to keep the
CO-OWNERSHIP ownership for more
than 10 years is void.
CO-OWNERSHIP—right to common dominion Creditors of individual Creditors of a co-
which two or more persons have in a spiritual partners cannot attach owner can attach his
part (or ideal portion) or a thing which is not and sell on execution shares in the co-
materially or physically divided. the shares of partners owners and sold on
in the partnership execution
Characteristics of Co-ownership Can be extinguished Death or incapacity of
(1) plurality of owners, but only one real right by the death or a co-owner does not
of ownership incapacity of one affect existence of a
party co-ownership • but if donation is made to husband and
There is mutual A special authority is wife jointly, there shall be a right of
representation of the needed for such accretion, unless contrary so provide.
parties representation.
A partner cannot A co-owner can freely (f) Chance – commixtion in good faith
transfer his rights to a dispose of his share (Art. 472, NCC)
3rd person without the without need to ask (g) Hidden treasure – co-ownership
consent of the others the consent of the between finder and owner
other co-owners. (h) Easement of a party wall
Distribution of profits Profits of a co-owner (i) Occupation – Harvesting and fishing
can be stipulated upon depend on his
(profit-sharing) proportionate share; • The ambergris caught by the hunters
profit-sharing is was undivided common property of the
invariable (Art. 485) plaintiffs and one of the defendants.
not subject to This common ownership was acquired
stipulation by occupancy. The action for recovery
pertaining to each co-owner, derived
Sources of co-ownership from the right of ownership inherent in
the co-ownership can be exercised not
(1) Law only against strangers, but against the
(a) Cohabitation co-owners themselves when the latter
(i) Between man and woman performs with respect to the thing held
capacitated to marry each other. in common acts for their exclusive
(Art 147, FC) benefit, or for exclusive ownership, or
(ii) Between man and woman not which are prejudicial to, and in violation
capacitated to marry each other of the right of the community.
(Art. 148, FC) (Punsalan et al. v. Boon Liat et al.)

(b) Absolute community property (Art. 90,

FC)
(c) two or more persons purchase property
and by common consent legal title is
taken in the name of one of them for
the benefit of all, an implied trust is
created in favor of the others in
proportion to each to interest of each.
(Art. 1452)
(d) Succession
(i) Intestate succession—w here there
are two or more heirs, the whole
estate of the decedent is, before its
partition, owned in common by
such heirs, subject to the payment
of debt of the deceased (1078)
(ii) Testate—if property is given to two
or more heirs by the testator
An instance is when a person A
dies intestate and the properties are
left undivided to several heirs, such
heirs are co-owners of the inheritance.
If one of the heirs dies, his heirs will in
turn be co-owners of the surviving heirs
of A.
Redemption done by one of the co-
owners/heirs will benefit his other co-
owner heirs despite the fact that they
did not contribute to the redemption
money.
(e) Donation
• donation to several persons jointly, it is
understood to be in equal shares
• no rights of accretion unless the donor
otherwise provides
(j) Condominium law
Sec. 6(c) of RA 4726 – unless otherwise
provided, common areas are held in
common by the holders of the units in equal
shares, one for each unit.
(2) Contract
(a) Two or more persons agree to create a
co-ownership—maximum of ten years
nd
(494, 2 par), extendable by a new
agreement.
Example: When two parties agree to
purchase a piece of land, each one
paying a part of the purchase price, on
the condition that they are to divide the
land equally between them. Parties
may also become co-owners of a
particular business when no partnership
having a distinct juridical existence is
formed between them.
(b) Universal Partnership
(i) Of all present properties (Art.
1778-1779, NCC)
(ii) Of profits (Art. 1780, NCC)
(c) Associations and Societies, whose
articles are kept secret wherein anyone
of the members may contact in his own
name with third persons (no juridical
personality)
Rights of each co-owner as to the thing
owned in common.
USE the COP’s LP
(1)Use thing;
(2) Share benefits
(3)Ejectment suit
(4)Compel to contribute
(5)Object to alteration;
(6)Protect against prejudice
(7)Exercise legal redemption;
(8)ask for partition]
(1) To use the thing according to its
purpose intended (may be altered by
agreement, express or implied; provided:
(a) without injury or prejudice to interest
of co-ownership; and
(b) without preventing the use of other co-
owners (Art. 486)
• Any act against the collective interest s an
act against ownership and the remedies
available to owners in general may by used
by the co-owners.
Each co-owner of realty held pro-indiviso
exercises his rights over the whole property
may use and enjoy the same with no other
limitation than that he shall not injure the
interests of his co-owners, for the reason that,
until a division be made, the respective part of
each holder can not be determined and every
one of the co-owners exercises together with
his other co-participants, joint ownership over
the pro- indiviso property, in addition to his use
and enjoyment of the same. (Pardell v.
Bartolome)
(2) To share in the benefits in proportion
to his interest, provided the charges
are borne by each in the same
proportion (Art. 485)
A contrary stipulation is void. Portions are
presumed equal unless contrary is proved.
Accretion added to any portion of land co-
owned becomes part of the property in co-
ownership and should be divided according to
each co-owners proportionate share.
(3) Any one of the co-owner may bring an
action in ejectment (Art. 487)
• A co-owner ma bring such action without
necessity of bringin all the other co-owners
as co-plaintiffs because the suit is deemed
to be for the benefit of all.
• Action will not prosper if the action is for
the benefit of himself only and not for the
co-ownership.
• When the action is brought by one co-
owner for the benefit of all, a favorable
decision will benefit everyone but an
adverse decision will not affect them if they
are not parties in the case or they did not
give their consent to the action.
(4) To compel other co-owner to
contribute to expenses for preservation
of the thing or right owned in common
and to taxes (Art. 488)
• Co-owners’ option not to contribute by
waiving his undivided interest equal to
amount of contribution (except if waiver is
prejudicial to co-ownership)
Necessary expenses
• taxes and expenses for the preservation of
the thing which is not made would
endanger the existence of the thing or
reduce its value or productivity
• Does not include those that merely produce
benefits for the owner, or merely for luxury,
embellishment or pleasure.
Useful expenses
• they increase the income of the thing
owned in common for the benefit of all the
co-owners.
• not covered as one of them cannot incur
such expenses without the consent of the
others and then charge them to pay their
shares later.
(a) Remedy against defaulting co-owner—
action to compel him to contribute such
share. He cannot be compelled to
renounce his share as such option is at
his own discretion.
• Co-owner has option not to contribute by
waiving his undivided interest equal to
amount of contribution (unless waiver is
prejudicial to co-ownership)
• Requisites before repairs for preservation,
embellishment, or improvements may be
made
a) if practicable, notice to co-owners
b) majority decision, as provided under
Article 492
• A co-owner alone can advance expenses for
preservation of the property even without
prior consent of others; he is entitled to be
reimbursed for the amount he spent for
necessary expenses.
• Will of one of the co-owners is sufficient
authority to undertake expenses for
preservation. He can proceed with the
repairs for preservation despite opposition
of the others.
• Consent of majority required only in case
where the expenses are for the
improvement or embellishment of the thing
or for administration and better enjoyment
of the thing.
• Consent of all is needed only in acts of
ownership.
• Effect of failure to notify co-owners:
(a) Failure to give notice even if it was
practicable to do so does not deprive
the co-owner his right to be reimbursed
the proportionate share of the other in
the expenses.
(b) The effect of such omission is that he is
given the burden of proving the
necessity of such repairs and the
reasonableness of the expense.
(c) He will not be fully reimbursed if the
others can prove that had he notified
them, they could have hired the
 services of another contractor who
would charge less than the people
whom he contracted or that they know
of a store that sells the needed
material at a cheaper price. The
difference will be borne by him.
(5) To oppose any act or alteration;
remedy of other co-owner in case of
alteration.
• Alteration
The act by virtue of which a co-owner
- changes the thing from the state in
which the others believe it should
remain or
- Withdraws it form the use to which
they are desired to be intended in
opposition to the common agreement,
if there is any, or in absence of a
common agreement, to the tacit
agreement of all the co-owners, and
violating their will
• Acts of alteration requires the consent of
ALL the co-owners if it changes the essence
or nature of the thing (present article refers
to this) because it is an act of ownership.
• Consent of all is needed in order to impose
a voluntary easement on the property they
co-own.
• Acts of alteration that does not change the
essence or nature of the thing requires only
the agreement of the majority because it is
merely an act of administration.
- but if withholding of consent by any
one of the co-owners is clearly
prejudicial to the common interest,
courts may afford adequate relief (Art.
491, CC)
• Administration and better enjoyment – acts
or decisions for the common benefit of all
and not for the benefit of only one or some
of them.
• Characteristics:
(a) they refer to the enjoyment and
preservation of the thing
(b) they have transitory effects
Acts of Acts of
Alteration/Acts of Administration
Ownership
• Relates to the use, • Also for the better
substance or form enjoyment of the
of the thing property
• Have a more • Effects are of
permanent result transitory character
• Consent of all is • Consent of the
necessary financial majority
• Contrary to the will be binding
co-ownership • Does not give rise
agreement to a real right over
the thing owned in
common.
Effects of acts of alteration and remedies
of non-consenting co-owner :
(a) Co-owner who made alterations may
lose whatever he has spent as he will
not be reimbursed
(b) He may be ordered to demolish or
remove the alteration at his expense
(c) He will be liable for damages and other
losses
(d) Co-ownership will benefit from the
alteration if other co-owners decide to
contribute to the expenses by
reimbursing him (ratification)
(e) If a house is built in a common lot, the
co-owners are entitled to the
proportionate share of the rent.
Q: Can a mere majority of the co-owners lease
real property for any length of time?
A: Old Civil Code rule:
• Lease for not more than 6 years is just
an act of administration.
• Lease for more than 6 years is an act of
ownership.
New Civil Code rule:
• Lease becomes an act of ownership and
ceases to be an act of administration if:
(1) It is recorded in the Registry o
Property; and
(2) It is for more than 1 year
• Registration makes the lease binding on
third persons (Art. 1648, NCC) Special
powers is the criterion for determining
whether the act is legally one of strict
ownership.
(6) To protect against acts of majority
which are prejudicial to minority (Art.
492, Par. 3)
• Who may manage property?
a) The co-owners themselves
Court cannot appoint an administrator to
manage a property co-owned when the co-
owners want to handle the management.
In this management, the majority of the of
interest control and their decisions are
binding upon the minority. Majority may
only proceed to act without notice to the
minority if the circumstances warrant
urgency.
b) An administrator who may or may not be a
co-owner delegated by the co-owners
An administrator cannot, without the
unanimous consent of all the co-owners,
compromise on, donate, cede, alienate,
mortgage, or encumber in any manner the
common property.
• The majority is not the majority in number
but rather pertains to the majority in
interest or the financial majority. The
majority required should be construed to be
an absolute majority or more than one-half
of the value of the thing.
• When are acts seriously prejudicial?
• So serious and affects the interest
of the co-owners in the community
• Such that will cause injuries
enough to justify the intervention
of the court
Example:
(1) When the resolution calls for a
• substantial change or alteration of
the common property
• or of the use to which it has been
dedicated by agreement or by its
nature.
(2) When the resolution
• goes beyond the limits of mere
administration, or
• invades the proprietary rights of the co-
owners, in violation of Art. 491
(prohibiting against acts of alteration)
(3) When the majority leases, loans, or other
contracts without security, exposing the
thing to serious danger to the prejudice of
the other co-owners.
(4) When the majority refuse to dismiss an
administrator who is guilty of fraud or
negligence in his management, or does not
have the respectability, aptitude, and
solvency required of persons holding such
position.
(5) When resolution, if carried out, would cause
serious injury to the thing itself, such as an
agreement not to borrow money under
reasonable terms when it is necessary for
urgent repairs for preservation, or for the
payment of taxes.
Remedies of the minority
If the acts of the majority prejudice the
minority, the latter may ask for injunction or at
worse, a partition.
(7) To exercise legal redemption (Art.
1620, 1623)
• The right of redemption of co-owners
excludes that of adjoining owners.
• The period of redemption starts to run from
the WRITTEN notification. However, there
is an exceptional case- when there is actual
knowledge (Alonzo v. IAC)
Q: Can redemption money be made equal or
less than what was paid by third persons?
A: Yes, it can be lower if the price of sale is
grossly excessive, such as when the co-
owner didn’t want other co-owners to
redeem. However, generally it is of the
equal amount.
Cases:
Redemption of the property by a co-owner does
not vest in him sole ownership over said
property but will inure to the benefit of all co-
owners. Redemption is not a mode of
termination of relationship. (Mariano v CA)
By the very nature of the right of "legal
redemption", a co-owner's right to redeem is
invoked only after the shares of the other co-
owners are sold to a third party or stranger to
the co-ownership. But in the case at bar, at the
time petitioners filed their complaint for
injunction and damages against private
respondents, no sale of the latter's pro-indiviso
shares to a third party had yet been made.
The law does not prohibit a co-owner from
selling, alienating or mortgaging his ideal share
in the property held in common. The law merely
provides that the alienation or mortgage shall
be limited only to the portion of the property
which may be allotted to him upon termination
of the co-ownership and, as earlier discussed,
that the remaining co-owners have the right to
redeem, within a specified period, the shares
which may have been sold to the third party.
[Articles 1620 and 1623] (Reyes vs. Judge
Concepcion)
Halili has no right to invoke legal redemption
under Art 1621 since such article presupposes
that the land sought to be redeemed is rural.
Under Art. 1621, both lands—that sought to be
redeemed and the adjacent lot belonging to the
person exercising the right of redemption—must
be rural. If one or both are urban, the right
cannot be invoked. (Halili v. CA)
Art. 1623 requires that the written notification
should come from the vendor or prospective
vendor, not from any other person. It is the
notification from the seller, which can remove
all doubts as to the fact of the sale, its
perfection, and its validity, for in a contract of
sale, the seller is in the best position to confirm
whether consent to the essential obligation of
selling the property and transferring ownership
thereof to the vendee has been given.
(Francisco v. Boiser)
The written notice of sale is mandatory for the
tolling of the 30-day redemption period.
Notwithstanding actual knowledge of a co-
owner, the latter is still entitled to a written
notice from the selling co-owner in order to
remove all uncertainties about the sale, its
terms and conditions, as well as its efficacy and
status. (Verdad v CA)
The validity of a title depends on the buyer’s
knowledge, actual or constructive, of a prior
sale. While there is no direct proof that the
second vendees actually knew of the sale to the
first vendees, they are deemed to have
constructive knowledge thereof by virtue of
their relationship to the vendors.
A third person, within the meaning of Art. 1620
of the Civil Code (on the right of legal
redemption of a co-owner) is anyone who is not
a co-owner. Art. 1623, requiring the vendor of
the property to give a written notice of sale to
the other co-owners, had been rendered inutile
by the fact that the first vendees took
possession of the property immediately after
the execution of the deed of sale in their favor
and continue to possess the same. Since the
fact of possession by the first vendees had not
been questioned by any of the co-owners, the
latter may be deemed to have knowledge of the
sale. (Pilapil v CA)
(8) To ask for partition (Art. 494)
• A co-owner can always ask for a partition.
There is no prescriptive period.
Exceptions:
(i) when there is a stipulation against it
(not beyond 10 years)
(ii) when condition of indivision is imposed
by transferor (donor or testator) not
exceed 20 years (Art. 494)
(iii) when legal nature of community
prevents partition (e.g. party wall)
(iv) when partition is generally prohibited
by law
(v) when partition would render the thing
unserviceable, or the thing in common
is essentially indivisible
- no physical partition but thing
maybe sold and co-owners shall
divide the proceeds (495, 498)
(vi) acquisitive prescription has set in facor
of a stranger to co-ownership or in
favor of co-owner.
Either co-owner may demand the sale of the
house and lot at any time and the other cannot
object to such demand. Thereafter the proceeds
of the sale shall be divided equally according to
their respective interests. S, being a co-owner,
has the right use the house and lot without
paying any compensation to petitioner, as he
may use the property owned in common as long
as it is in accordance with the purpose for which
it is intended and in a manner not injurious to
the interest of the co-owners. (Aguilar v. CA)
Implications of co-owners’ right over his
ideal share
• No individual or co-owner can claim
title to any definite part or portion of
the thing co-owned.
• All the co-owner has is an ideal
abstract, quota or proportionate share
in the entire land or thing.
• All that he can sell or freely dispose is
his undivided interest but he cannot sell
or alienate a concrete, specific or
definite part of the thing owned in
common because his right over the
thing is represented by a quota or ideal
portion without any physical
adjudication.
(1) Co-owner has the right
(a) To share in the fruits and benefits
(b) To alienate, mortgage, or encumber
and dispose off his ideal share subject
to other co-owner right of legal
redemption.
(c) To substitute another person in the
enjoyment of the thing. (Art. 493)
(d) To renounce part of his interest to
reimburse necessary expenses incurred
by another co-owner (Art. 488)
(2) Effect of transaction by each co-owner
(a) Limited to his share in the partition
(b) Transferee does not acquire any
specific portion of the whole property
until partition
(c) Creditors of co-owners may intervene
in the partition to attack the same if
prejudicial (Art. 499), except that
creditors cannot ask for rescission even
if not notified in the absence of fraud
(Art. 497) ask for rescission even if
notified.
Cases:
Unless the partition is effected, each heir
cannot claim ownership over the definite portion
and cannot dispose. Upon death of a person,
each of his heirs becomes the undivided owner
of the whole estate. He cannot alienate a
specific part of the thing in common to the
exclusion of other co-owners because his right
over the thing is represented by an ideal
portion. Co-owner cannot adjudicate to himself
a definite portion owned in common until
partition by agreement or by judicial decree.
Before partition, co-heir can only sell his
successional rights. (Carvajal v CA)
After his wife’s death, the husband became
entitled to ½ of the entire property, with only ½
belonging to the heirs. They hold the property
as co-owners. (Pamplona v Moreto)
Art 493 of the NCC allows the alienation of the
co-owner of his part in the co-ownership. The
effect of such alienation or mortgage shall be
limited to the portion which may be allotted to
him in the division upon the termination of the
co-ownership In short, a co-owner can enter
into a contract of lease insofar as to his
interest. Therefore, he can also cancel such
lease without the consent from the other co-
owner. (Castro v. Atienza)
Difference of Co-ownership vs. Conjugal
Partnership
Co-ownership Conjugal
Partnership
• May be created by • Created only by
an ordinary reason of marriage
contract • Parties thereto are
• Sex of co-owners on male and one
is immaterial female
(kaya kahit • There are only 2
bading…) conjugal owners
• There may be 2 or • Profits are divided
more co-owners equally, unless
• Profits are there is a contrary
proportional to stipulation in a
 respective marriage
interests settlement
• Death of a co- • Death of a spouse
owner does not dissolves the CPG
dissolve the co- • Encourage by law
ownership for family
• Generally co- solidarity.
owners administer
• Co-ownership is
discouraged by
law
Special Rules on ownership of different
stories of a house as differentiated
from the provisions in the
Condominium Law (Act No. 4726)
Concept of condominium
• Exclusive interest in units plus undivided
interest in common areas.
• Partly co-ownership, partly under individual
separate ownership
• Each unit belongs separately to one or
more persons
• The land and the common areas are of
common use by the different owners and
are under co-ownership either as
contemplated by the Civil Code or through
a corporation.
• Not governed by co-ownership as provided
for in the Civil Code.
• External surfaces are common areas
• Beams and posts are common areas
• Easement, unless the master deed says
otherwise, is an exclusive easement.
• Interest in the common areas will depend
on interest in the condo
• Important documents in buying a condo
unit
(i) deed of sale
(ii) enabling or master deed
(iii) declaration of restrictions
Sec. 9 The owner of a project shall, prior to the
conveyance of any condominium therein,
register a declaration of restrictions relating to
such project, which restrictions shall constitute
a lien upon each condominium in the project
and shall insure to and bind all condominium
owners in the project. Such liens, unless
otherwise provided, may be enforced by any
condominium owner in the project or by the
management body of such project. The
Register of Deeds shall enter and annotate the
declaration of restrictions upon the certificate of
title covering the land included within the
project, if the land is patented or register under
the land included within the project, if the land
is patented or registered under the Land
Registration or Cadastral Acts.
• Method of taxation
Sec. 25. Whenever real property has been
divided into condominiums, each condominium
separately owned shall be separately assessed,
for purposes of real property taxation and other
tax purposes to the owners thereof and the tax
on each such condominium shall constitute a
lien solely thereon.
• Pzrtition of Common Areas
Sec.7. Except as provided in the following
section, the common areas shall remain
undivided, and there shall be no judicial
partition thereof.
(a) Who manages the condominium?
(i) condominium corporation
(preferred by law) – co-terminous
with the existence of the
condominium
(ii) co-ownership
(iii) association of owners
Rights and Obligations of Condominium
owner
What are the incidents of a condominium
grant?
(a) The boundary of the unit grant
(i) the interior surfaces of the
perimeter walls, floors, ceilings,
windows, and doors
(ii) those which are not part of the unit
bearing walls, columns, floors,
roofs, foundations, and other
common structural elements of the
building; lobbies, stairways,
hallways, and other areas of
common use, elevator equipment
and shafts, central heating, central
refrigeration, and central air-
conditioning equipment, reservoirs,
tanks, pumps, and other central
services and faicilities, pipes,
ducts, flues, chutes, conduits, wires
and other utility installations,
wherever located, except the
outlets thereof when located within
the unit.
(b) Exclusive easement for the use of the
air space encompassed by the
boundaries of th unit
(i) as it exists at any particular time
(ii) as the unit may lawfully be altered
or reconstructed from time to time
(iii) such easement shall be
automatically terminated in any air
space upon destruction of the units
to render it untenable
(c) Unless otherwise provided, the
common areas are held in common by
the holders of units, in equal shares,
one for each unit
(d) a non-exclusive easement for ingress,
egress, and support through the
common areas are subject to such
easements
 (e) Each condominium unit owner shall
have the exclusive right to paint,
repaint, tile, wax, paper, or otherwise
refinish and decorate the inner surfaces
of the walls, ceilings, floors, windows,
and doors, bounding his own unit
(f) Each condominium owner shall have
the exclusive right to mortgage,
pledge, encumber his condominium and
to have the same appraised
independently of the other
condominiums but any obligation
incurred by such condominium owner is
personal to him.
(g) Each condominium owner has also the
absolute right to sell or dispose of his
condominium unless the master deed
contains a requirement that the
property be first offered to the
condominium owners within a
reasonable period of time before the
same is offered to outside parties.
Case
Section 5 of the Condominium Act expressly
provides that the shareholding in the
Condominium Corporation will be conveyed only
in a proper case. Not every purchaser of a
condominium unit is a shareholder of the
condominium corporation. The Condominium
Act leaves to the Master Deed the
determination of when the shareholding will be
transferred to the purchaser of a unit, as clearly
provided in the deed in this case. Ownership of
a unit, therefore, is a condition sine qua non to
being a shareholder in the condominium
corporation By necessary implication, the
"separate interest" in a condominium, which
entitles the holder to become automatically a
share holder in the condominium corporation,
as provided in Section 2 of the Condominium
Act, can be no other than ownership of a unit.
The private respondents, consequently, who
have not fully paid the purchase price of their
units and are not owners of their units nor
members or shareholders of the petitioner
condominium corporation. (Sunset View
Condominium v Judge Campos)
Extinguishment of Co-Ownership
(1) Total destruction of the thing
(2) Merger of all the interest in one person
(3) Acquisitive prescription
(a) By a third person
(b) By one co-owner against the other co-
owners
Requisites:
(i) Unequivocal acts of repudiation of
the rights of the other co-owners
(acts amounting to ouster of other
co-owners)
(ii) Open and adverse possession, not
mere silent possession for the
required period of extraordinary
acquisitive prescription.
(iii) Presumption is that possession of a
co-owner is not adverse.
(4) Partition or division
• A division between two or more persons of
real or personal property which they own as
co-partners, joins tenants or tenants in
common, effected by the setting apart of
such interests so that they may enjoy and
possess it in severallity.
(a) Right to ask for partition at any time
except:
(i) When there is a stipulation against it.
(must not be over 10 years)
(ii) When condition of indivision is imposed
by transferor (donor or testator) must
not exceed 20 years – Art. 494
(iii) When the legal nature of community
prevents partition. (e.g., party wall)
(iv) When partition is generally prohibited
by law e.g. ACP
(v) When partition would render the thing
unserviceable but the thing may be
sold and the co-owners divide the
proceeds (Art. 494)
• Action for partition will fail if acquisitive
prescription has set in.
(b) Effect of partition
• Partition shall not prejudice third
persons
who do not intervene in the partition
• After partition, there should be mutual
accounting of benefits,
reimbursements, payment of damages
due to negligence or fraud, liability for
defects of title and quality of portion
assigned to each
• Part allotted to a co-owner at partition
will be deemed to be possessed by such
co-owner from the time the co-
ownership commenced.
• Heir is exclusive owner of property
adjudicated to him.
• Co-owners reciprocally bound to each
other for warranty of title and quality of
part given to each (hidden defect) after
partition.
• Under Art. 1093, obligation of warranty
is proportionate to respective
hereditary shares; insolvency of one
makes the others liable subject to
reimbursement (joint liability).
(c) Right of Creditors of individual Co-owners
Art. 497
• All creditors, whether secured or
privileged, and those of any category
under title of alienation, exchange,
donation, assignment, or other
obligation of a real or personal nature,
 must be considered to intervene in the
partition of the common property.
• They must have become creditors
during the co-ownership
• Co-owner debtors have the duty to
notify the creditors of the partition
• Absence of notice makes partition not
binding on them.
• They can contest such partition if they
formulate a formal opposition thereto.
Assignee – a transferee of a part of the
interest of the co-owner because if a
sale or assignment is total, the
assignee or the buyer should have been
subrogated in the place of the vendor
or assignor, who should be excluded
from the co-ownership, and the
assignee or the buyer will intervene in
his own right in partition.
(d) Procedure for Partition (Rule 69, Rules
of Court)
(1) Partition may be made:
(a) Orally
• Valid and enforceable among
the parties.
• Statute of frauds does not
operate for partition is not a
conveyance of property but
merely a segregation and
designation of that part of the
property which belongs to the
co-owners.
(b) In writing
• Court will just confirm such
written agreement.
(2) Rules of Court does not preclude
amicable settlement between
parties.
(3) Two principal issues in an action
for partition:
(a) plaintiff is indeed a co-owner
of the property
(b) how the property is to be
divided between plaintiff and
defendants.
• If property is found to be incapable
of being divided without great
prejudice to the interest of each
party, the court may order such
property be assigned to one co-
owner subject to the condition that
he will pay the other co-owners of
the value of their interests as
deemed by the commissioners.
• The sale may be made privately or
publicly and third persons may
become purchasers.
POSSESSION
Definition and Concept
(1) Possession is the holding of a thing of the
enjoyment (exercise) of a right, whether by
material occupation (de facto possession)
or by the fact that the thing or the right is
subjected to the action of our will.
(2) It is a real right independent of and apart
from ownership.
Essential requisites of possession
(1) Holding or control of a thing or right
(corpus) consists of either:
(a) the material or physical possession
(b) subject action of our will- exercise of a
right
(c) constructive possession
• doctrine of constructive possession applies
when the possession is under title calling
for the whole, i.e., possession of a part is
possession of the whole.
• Constructive possession
a) tradicion brevi manu (one who possess
a thing short of title of owner – lease );
b) tradicion constitutum possesorium
(owner alienates thing but continues to
possess – depositary, pledgee, tenant)
(2) Intention to possess (animus possidendi)
• it is a state of mind whereby the possessor
intends to exercise and does exercise a
right of possession, whether or not such
right is legal
• intention may be inferred from the fact that
the thing in question is under the power
and control of the possessor
• may be rebutted by contrary evidence, e.g.,
stolen property is placed in a man’s house
without his knowledge.
Cases:
The occupancy of a part of the land with an
instrument giving color of title is sufficient to
give title to the entire tract of land. The
general rule is that the possession and
cultivation of a portion of a tract of land under a
claim of ownership of all is a constructive
possession of all, IF the remainder is not in the
adverse possession of another. Possession in
the eyes of the law does not mean that a man
has to have his feet on every square meter of
ground before it can be said that he is in
possession. (Ramos v. Director of Lands)
The rule on constructive possession does not
apply when the major portion of the disputed
property has been in the adverse possession of
homesteaders and their heirs. It is still part of
the public domain until the patents are issued.
(Director v. CA)
Degrees of holding of possession
(1) Mere holding or possession without title
whatsoever and in violation of the right of
the owner.
• applies to both movables and immovables
• both the possessor and the public know
that the possession is wrongful
• e.g., possession of a thief or a usurper of
the land
• there can be no acquisitive prescription of
movables under the NCC (Art. 1133)
(2) Possession with juridical title but not that
of ownership.
• peaceably acquired
• this will never ripen interesting full
ownership as long as there is no
repudiation of concept under which the
property is held, i.e., from holder to that of
owner (if such repudiation is made known
to the owner, then extraordinary
prescription of 30 yrs will apply)
• e.g., possession by tenant, depositary,
agent, bailee, trustee, lessee, antichretic
creditor
• even actual owner may be prevented by
law from taking possession
• a depositary bank is not a possessor in this
degree, since a deposit is actually a loan to
the bank
(3) Possession with just title or title sufficient
to transfer ownership, but not from the true
owner
• title— deed of sale or contract of sale
• possession of a vendee from vendor who
pretends to be the owner, i.e., innocent
buyer of stolen goods
• good faith of buyer = just title
• if in good faith, extraordinary prescription
of 30 years will apply
• this degree of possession ripens interesting
full ownership by lapse of time
(4) Possession with just title from the true
owner
• possession springs from ownership
• the delivery of possession transfers
wnership and strictly speaking, it is the jus
possidendi that is transferred (right to
possess which is an incident of ownership)
Cases of possession
(1) Possession for oneself, or possession
exercised in one’s own name and
possession in the name of another.
• rights of possession may be exercised
through agents
(a) necessary— exercised on behalf of the
conceived child, of juridical persons, of
persons not sui juris, and of the
conjugal partnership
(b) voluntary— in cases of agents or
administrators appointed by the owner
or possessor
(2) Possession in the concept of an owner and
possession in the concept of a holder with
the ownership belonging to another
In the Concept of a Holder
• such possessor acknowledges in
another a superior right which he
believes to be ownership, whether his
belief be right or wrong
• tenant possesses the thing leased as
holder (but he possesses the lease right
as owner)
• same with usufructuary and borrower
of the thing loaned in commodatum
In the Concept of Owner
• such possessor may be the owner
himself or one who claims to be so
• concept is opinion, not of the possessor
himself but of others
• not possessors in this concept: lessee
on the land, a mere casual cultivator
and administrator, and one who is
aware of the adjudication of land to
another
• only this class of possession can serve
as title for acquiring dominion
• good faith or bad faith is immaterial
except for purposes of prescription (GF:
10 yrs; BF: 30 yrs)
Effects of possession in the concept of an
owner:
(1) possession may be lapsed of time
ripen into full ownership, subject to
certain exceptions
(2) presumption of just title and
cannot be obliged to show or prove
it Exception: for purpose of
prescription in Art 1131.
(3) possessor can bring all actions an
owner can bring to protect his
possession, except accion
reivindicatoria
(4) may employ self-help (Art 429)
(5) can ask for the inscription of his
possession in the registry of
property
(6) has right to the fruits and
reimbursement for expenses
(assuming he is a possessor in GF)
(7) upon recovering possession from
unlawful deprivers, can demand
fruits and damages
(8) generally, he can do on the things
possessed everything an owner is
authorized to do until he is ousted
by one who has a better right (e.g.,
he can exercise right of pre-
emption, he is entitled to indemnity
in case of expropriation)
(9) possession in GF and possession in
BF
(3) Possession in good faith and possession in
bad faith
• possession in good faith ceases from the
moment defects in the title are made
known to the possessor
• when an action is filed to recover
possession, good faith ceases from the date
of the summons to appear at the trial
• possessor in GF: unaware that there exists
a flaw which invalidates his acquisition of
the thing
• GF consists in the possessor’s belief that
the person from whom he receive a thing
was the owner of the same and could
convey his title
• GF is always presumed, and he who alleges
BF on the part of the possessor has the
burden of proving his allegation
• belief of the possessor that he is the legal
owner must be based on some title or mode
of acquisition, i.e., sale, donation,
inheritance
• error in the application of the law, in the
legal solutions that arise form such
application, in the appreciation of the legal
consequences of certain acts, and in the
interpretation of doubtful provisions or
doctrines, may properly serve as the basis
of GF- mistake upon a doubtful or difficult
question of law as a basis of good faith [Art
526 (3)]
• possessor in Bad Faith: knows that his title
is defective
Case
A person is deemed a possessor in BF when he
knows that there is a flaw in his title or in the
manner of acquisition by which it is invalidated.
Gross and inexcusable ignorance of the law may
not be the basis of good faith, but possible,
excusable ignorance may be such basis.
Kasilag is not conversant with the laws because
he is not a lawyer. It can be concluded
therefore that Kasilag’s ignorance of Sec 116 is
excusable and may be a basis of good faith.
(Kasilag v Rodriguez)
Subjects of possession
• All rights and things susceptible of
appropriation
• Things which cannot be possessed:
(1) property of public dominion
(2) res communes
(3) easements (discontinuous or non-
apparent)
(4) things specifically prohibited by law
• res nullius (abandoned or ownerless
property)– may be possessed but cannot
be acquired by prescription
Acquisition of Possession
(1) Ways of acquiring possession
(a) Material occupation of the thing
• occupation is used in the general sense,
i.e., a means of acquiring possession of
things, not of rights
• kind of possession acquired is only the
fact of possession, not the legal right of
possession
(i) Doctrine of constructive possession
• no actual possession but subject to
control
• possession of a portion of a parcel
of land under the claim of
ownership or title is constructive
possession of the entire parcel of
land, unless a portion thereof is
adversely possessed by another
(Ramos v Dir of Lands)
(ii) Includes constructive delivery
(equal to material occupation in
cases where occupation is essential
to the acquisition of prescription)
traditio brevi manu
• one who possesses a thing by
title other than ownership
continues to possess the same
but under a new title, that of
ownership
traditio constitutum possessorium
• owner alienates the thing, but
continues to possess the same
but as that of depositary,
pledge, or tenant
(b) subjection to the action of our will
• different from and independent of
juridical acts and legal formalities
as it refers more to the right of
possession that to possession as a
fact
(i) traditio simbolica -- effected by
delivering some object or symbol,
placing under the thing under the
control of the transferee, such as
the keys to the warehouse
containing the goods delivered [Art
1498 (2)]
(ii) traditio longa manu – effected by
the transferor pointing out to the
transferee the things which are
being transacted
(c) proper acts and legal formalities
• refers to the acquisition of
possession by sufficient title,
whether inter vivos or mortis
causa, or lucrative or onerous
• e.g., donations, succession,
contracts, judicial writs of
possession, writs of execution of
judgments, and registration of
public instruments
Case:
There was a perfect contract of pledge and the
depositary was placed in the possession of the
goods after the symbolic transfer by means of
delivery to him of the keys to the warehouse
where the goods were kept. (Banco Espanol
Filipino v. Peterson)
(2) By whom possession may be acquired
(a) by same person
Elements of personal acquisition
• must have the capacity to acquire
possession
• must have the intent to possess
• possibility to acquire possession
must be present
(b) by his legal representative
Requisites:
• representative or agent has the
intention to acquire the thing or
exercise the right for another, and
not for himself
• person for whom the thing has
been acquired or right exercised,
has the intention of possessing
such thing or exercising such right
(c) by his agent
(d) by any person without any power
whatsoever but subject to ratification,
without prejudice to proper case of
negotiorum gestio
• owner is liable for obligations
incurred in his interest, and shall
reimburse the officious manager for
necessary and useful expenses and
damages which the latter may have
suffered
• ratification by the person for whom
the thing was acquired will retroact
to the time of apprehension by the
gestor
(e) Qualifiedly, minors and incapacitated
persons
• “incapacitated”— insane, lunatics,
deaf-mutes who do not know how
to read and write, spendthrifts, and
those under civil interdiction
• refers only to possession of things,
not of rights, and to acquisition of
possession by material occupation
(3) What do not affect possession
(a) acts merely tolerated
• acts merely tolerated are those
which by reason of neighborliness
or familiarity, the owner of the
property allows his neighbor or
another person to do on the
property
• there is a thin dividing line
between tolerance and
abandonment of rights; it is for the
courts to determine
(b) acts executed clandestinely AND
without knowledge of the possessor
• acts must not only be clandestine
but must also be unknown to the
owner
(c) acts by violence as long as the
possessor objects thereto (i.e., he
files a case)
• person seeking to get possession
should never take the law into his
own hands, but must invoke the
aid of competent courts
• when a person is in possession of
land and has maintained that
possession for years, he cannot be
forcibly dispossessed thereof.
Cases
If owner of a tract of land, to accommodate the
public, permits them to cross his property, it is
not his intention to divest himself of ownership
or to establish an easement. Such possession
is not affected by acts of possessory character
which are merely tolerated. (Cuaycong v
Benedicto)
As a squatter, she has no possessory rights
over the disputed lot. The State’s solicitude
from the destitutes and the have-nots does not
mean that it should tolerate usurpations pf
property, public or private. (Astudillo v
PHHC)
Possession by tolerance is lawful, but this
becomes illegal when, upon demand to vacate
by the owner, the possessor refuses to comply
with such demand. A possessor by mere
tolerance is necessarily bound by an implied
promise to vacate upon demand. (Peran v
CFI)
(4) Rules to solve conflict of possession
General Rule: Possession cannot be
recognized in two different personalities
Exception: in cases of co-possession by co-
possessors without conflict claims or interest.
• In case of conflict of possession, the
following order of preference must be
followed:
(1) present possessor or actual possessor
(2) if 2 or more possessors, the one longer
in possession
(3) if dates of possession are the same, the
one who presents a title
(4) if all the condition are equal, the thing
shall be placed in judicial deposit
pending determination of possession or
ownership through proper proceedings
• Preference in case of conflict of ownership
(double sales)
(1) for immovable property
 (a) first who registered his right in GF in • action in case of refusal of a party
the to deliver possession of property
Registry of Property due to an adverse claim of
(b) if no registration, first who possessed ownership
in GF
(c) if no possession, one who presents the (iv) action for replevin – for recovery of
oldest title movable property
(2) for movable property: first who possessed
in (b) Possessor can employ self-help
GF
(2) Entitlement to fruits – possessor in GF/ BF
Effects of Possession • Possessor in GF is entitled to the fruits
received before the possession is legally
(1) In general, every possessor has a right to interrupted. The law limits the right though
be respected in his possession; if disturbed only to the fruits of the thing and therefore
therein, possessor has right to be protected he has no rights to the objects which do not
in or restored to said possession constitute fruits, e.g., tress in the orchard
• Possessor in BF has no right to receive
(a) action to recover possession any fruits. Those already gathered and
existing will have to be returned; with
(i) summary proceedings – forcible respect to those lost, consumed, or which
entry and unlawful detainer. could have been received, he must pay the
Plaintiff may ask for writ of value. But the possessor in BF does not
preliminary mandatory injunction have to pay interest on the value of fruits
may be asked. Within 10 days he has to pay, because such amount is
from filing of complaint in forcible unliquidated.
entry
- the same writ is available in (3) Reimbursement for expenses
unlawful detainer actions upon Possessor in GF Possessor in BF
appeal (Art 1674) entitled to entitled to
reimbursement for reimbursement for
• The acquirer and possessor in good (1) necessary and necessary expenses,
faith of a chattel or movable property is (2) useful expenses, but NOT for useful
entitled to be respected and protected with the right to retain expenses. Also has
in his possession as if he were the true the thing until he has NO right of retention
owner, until a competent court rules been reimbursed over the thing
otherwise. Such possession in good Useful expenses—
faith is equivalent to title and every reimbursement will be
possessor has a right to be respected in based either on:
his possession (Arts 539 and 559). (1) the amount of
(Yu v Honrado) expenses; or
(2) on the increase in
the value which the
thing may have
(ii) accion publiciana (based on acquired by reason of
superior right such improvement
of possession, not of
ownership) Useful
• action for recovery of real property improvements—
upn mere allegation and proof of a General Rule: can be
better right without the need of removed without
showing title damage to the
• issue: POSSESSION only principal thing,
• no need to wait for the expiration possessor in GF may
of 1 yr. before bringing such remove them
action; if no action for forcible Exception: if the
entry and unlawful detainer within owner wants to keep
1 yr, this action may still be the improvements
brought
Expense for pure has same rights with
(iii) accion reivindicatoria (recovery of luxury— will not be possessor in GF
ownership) refunded but may be
removed if :
• action setting up not only the right (1) it can be removed
of possession, but also of title and without injury to the
ownership thing or
(2) if the owner does
not prefer to refund
the
amount
(4) Possession of movable acquired in GF (in
concept of an owner) is equivalent to title
• possessor has actual title which is
defeasible only by true owner
• one who has lost a movable or has been
unlawfully deprived thereof may recover it
without reimbursement, except if possessor
acquired it at a public sale
• 3 requisites to make possession of movable
equivalent to a title:
(1) that the possession is in GF
(2) that the owner has voluntarily parted
with the possession of the thing
(3) that the possession is in the concept of
an owner
Presumptions in favor of the possessor
(1) Of good faith until the contrary is proved
• only a presumption juris tantum
• it is presumed that the right of the
possessor is well-founded, since the
possession is the outward sign of ownership
• declaration of nullity of a title does not
imply that it was acquired in BF
• presumption of GF is not immediately
changed into BF in the basis of constructive
notice of registration proceedings
(2) Of continutity of initial GF in which
possession was commenced or possession
in GF does not lose its character
Exception: in the case and from the
moment the possessor became aware or is
not unaware of improper or wrongful
possession.
• there is GF until defects in the title are
made known to the possessor by
extraneous evidence or by suit from
recovery by the true owner—
usually from the time of service of
summons
Good faith ceases when they were served with
summons to answer the complaint. As
possessors in bad faith from the service of the
summons, they shall reimburse the fruits
received. (Cordero v Cabral)
(3) Of enjoyment of possession in the
same character in which was acquired until
the contrary is proved.
(4) Of non-interruption of possession in
favor of present possessor who proves
possession at a previous time until the
contrary is proved.
2 Kinds of Interruption
(1) Natural (Art 1122)—if interruption is for
more than 1 year . BUT it is not
natural interruption if a third person is
possessing the property for the owner.
However, if he is possessing it for
himself, then there is natural
interruption
(2) Civil (Art 1123)— will start from the
service of summons but the proper
action must be the one filed
• in case of natural interruption, the old
possession loses all its juridical effects and
therefore cannot be tacked to the new
possession for purposes of prescription
• in case of civil interruption, if possession is
recovered, it can be connected to the time
that has elapsed as if it were continuous
and can be counted in favor of prescription
(5) Of continuous possession or non-
interruption of possession of which he
was wrongfully deprived for all purposes
favorable to him
• applies to both possessors in BF and GF,
but only insofar as it redounds to their
benefit
• GF possessor is deemed in continuous
possession for purposes of prescription
• BF possessor is not obliged to return fruits
which might have been received during the
time that he was not in possession because
to consider him in continuous possession
would be prejudicial to him
• recovery of possession must be according
to the law, i.e., through the use of proper
actions or with the aid of the competent
authority
(6) Other presumptions with respect to specific
property rights
(i) Of extension of possession of real
property to all movables contained
therein so long as it is not shown that
they should be excluded (Art. 426)
(ii) Non-interruption of possession of
hereditary property (Art. 533, Art.
1078)
(iii) Of just title in favor of possessor in
concept of owner, subject to Art. 1141
• possession is prima facie presumed
ownership, unless the contrary is
proved
• just title—that which is legally sufficient
to transfer the ownership or the real
right to which it relates
• just title does not always consist in
documents. It may be proved by
testimonies of witnesses
Loss of Possession
(1) Abandonment—voluntary renunciation of
all rights which a person may have in the thing,
with the intent to lose such thing
• to be effective:
 (1) necessary that it be made by a
possessor in the concept of owner;
and
(2) must clearly appear that the spes
recuprandi is gone and the animus
revertendi be finally given up
• by virtue of abandonment, the thing is
left without owner or possessor
(2) Assignment—complete transmission of
ownership rights to another person,
gratuitously or onerously
(2) that the owner has voluntarily parted
with the possession of the thing
(3) that the possessor is in the concept of
an owner
• Wild animals are possessed only while
they are under one's control;
domesticated or tamed animals are
considered domestic or tame if they
retain the habit of returning to the
premises of the possessor. (Art. 560)

(3) Destruction—must be total, otherwise, (5) Reivindication—the most natural mode of

partial loss will result in loss of possession losing possession, i.e., recovery or
in the lost part only reivindication of the thing by the lawful
owner
(4) Possession of another—the possession
that is lost here refers only to possession as Effects of Possession in Good Faith or Bad
a fact (de facto), not the legal right of Faith
possession (de jure)
• after 1 year, the actions forcible entry Good Faith Bad Faith
and unlawful detainer can no longer be Fruits Entitled to the Must reimburse
brought. But the accion publiciana may received fruits while fruits received
still be instituted to recover possession possession is or fruits which
de jure in GF and legitimate
• the possession that is lost, i.e., before legal possessor could
possession de facto, is also the interruption have received
possession that the new possessor (Art 544) (549);
acquires
• real right of possession is lost only after Entitled to
10 years expenses for
production,
NOTE: all the other 3 cases of loss of gathering, and
possession (abandonment, assignment, preservation
destruction) refer to loss of possession de Pending Entitled to a
jure (real right of possession) and therefore Fruits part of the
cannot be recovered anymore by any expenses of
action. cultivation and
• third parties relying on the Registry of a part of the
Property are privileged to consider the network
registered possessors or owners as still harvest, both
such in spite of loss proportion to
the time of
possession
Rules for Loss of Movables (545)
General Rule: possession of personal
property acquired in GF = title therefore the Owner may
true owner cannot recover it indemnify or
Exception: if the true owner allow
(1) lost the movable or possessor in
(2) has been unlawfully deprived GF to finish
In either of these, he may recover the cultivation and
personal property not only from the finder the fruits will
but also from those who may have acquired be indemnified
it in GF form such finder or thief, without for his
paying for any indemnity except if cultivation
possessor acquired it in public sale (here, (545)
the possessor in GF is entitled to
reimbursement). If possessor
• Public sale—is one where there has refuses
been a public notice of the sale, in concession, no
which anybody has a right to bid and indemnity
offer to buy (545)
• Requisites for Title: Charges Must share Same as with
(1) that the possession is in GF with the GF
legitimate
 possessor, in which have ceased to exist at the time
proportion to he takes possession of the thing. (Art.
the time of 553)
possession • the improvements having ceased to
Necessary Right of Reimbursement exist, the lawful possessor cannot
Expenses reimbursement only benefit from them.
and retention • BUT remember: necessary expenses
in the are not considered as improvements
meantime therefore the lawful possessor or owner
(545) has to pay for them even if the object
Useful Owner’s option No right to for which they were incurred no longer
Expenses to reimburse reimbursement. exist
him either for He also cannot
expenses or remove
for increase in improvements EASEMENTS
value (546) even he can do
so without Easement – is a real right which burdens a
Retention prior injury to the thing with a prestation consisting of
to principal thing determinate servitudes for the exclusive
reimbursement enjoyment of a person who is not its owner or
(546) of a tenement belonging to another.

Limited right - the real right immovable by nature by virtue

of removal of which the owner of the same has to abstain
(but should from doing or to allow somebody else to do
not damage something in his property for the benefit of
principal and another thing or person
owner does
not exercise Essential Features of Easements or Real
option of Servitudes
payment of
expenses or (1) It is a real right. It gives rise to an action in
increase in rem or real action against any possessor of
value) (547) the servient estate.
Ornamental Limited right Limited right of (2) It is a right enjoyed over another property
Expenses of removal as removal (no (jus in re aliena). It cannot exist in one’s
above (548) injury to thing own property (nulli res sua servit). Servient
and lawful and dominant estates have to belong to
possessor does different persons.
not retain by (3) It is a right constituted over an immovable
paying for by nature not over movables.
them) (548) (4) It limits the servient owner’s right of
Deterioration No liability Liable WoN due ownership or the benefit of the dominant
or Loss unless due to to his fault, estate. But servient tenement remains
fraud or negligence, unimpaired. Being an abnormal limitation of
negligence fortuitous event ownership, it cannot be presumed.
after becoming (5) It creates a relation between tenements.
in BF (6) It can exist only between neighboring
Costs of Bears cost Bears cost tenements. It can’t be created on another
Litigation servitude.
(7) It cannot consist in requiring the owner of
the servient estate to do an act unless the
Effects of Recovery of Possession act is accessory to a praedial servitude
• Improvements caused by nature or (obligation propter rem).
time (8) It may consist in requiring the owner of the
shall always insure to the benefit of the dominant estate demanding that the owner
person who has succeeded in of the servient estate refrain from doing
recovering possession. (Art. 551). something (servitus in non faciendo), or
• improvements—include all the natural that the latter permit that something be
accessions referred to in Arts 457 to done over the servient property (servitus in
465, and all those which do not depend patendo) but not in the right to demand
upon the will of the possessor (e.g., that the owner of the servient estate do
increase in the value caused by something (servitus in faciendo) except if
widening of streets, construction of such act is an accessory obligation to a
road, etc) praedial servitude.
• One who recovers possession shall not (9) It is inherent or inseparable from estate to
be obliged to pay for improvements which they actively or passively belong.

• Servitudes cannot exist without tenements.
They are merely accessory or a quality of
tenements. This doesn’t mean they don’t
have juridical existence of their own.
• Inherence refers only to that portion of the
tenement affected by it. Portion not
affected can be alienated without the
servitude.
• Contract of transmission of easement by
owner of the dominant estate may
constitute a renunciation or
extinguishments of easement
(10) It is intransmissible, cannot be
alienated separately from the tenement. It
can’t be the object of mortgage and exists
even if not annotated as an encumbrance
on Torrens title.
(11) It is indivisible. Indivisibility relates only to
the portion of tenement affected by the
servitudes. If the dominant estate is
divided into parts, there arise as many new
dominant tenements as there are parts.
(12) It has permanence. Once it attaches
whether used or not, it continues and may
be used anytime.
Classification of Servitudes
(1) As to recipient of benefits
(a) Real or praedial servitude – Servitude
exists for the benefit of a particular
tenement
(b) Personal servitude – Servitude exists
for the benefit of persons without a
dominant tenement. It pertains to a person
or a group of persons and not to any owner
of a tenement. It
(2) As to its exercise and as indication of
its existence
(Continuous/Discontinuous)
• Easements may be continuous or
discontinuous, apparent or non-
apparent..
• Continuous easements are those the
use if which is or may be incessant,
without the intervention of any act of
man.
• Discontinuous easements are those
which are used at intervals and depend
upon the acts of man.
• Apparent easements are those which
are made known and which are
continually kept in view by external
signs that reveal the use and
enjoyment of the same.
• Non-apparent easements are those
which show no external indication of
their existence.
(3) By the object of the obligation imposed
(Positive/Negative)
• A positive easement is one which
imposes upon the owner of the servient
estate the obligation of allowing
something to be done or doing it
himself
• A negative easement, that which
prohibits the owner of the servient
estate from doing something which he
could lawfully do if the easement did
not exist.
• Easement of light and view is negative
when the openings are made in one’s
own wall. It imposes upon the owner of
the adjacent tenement the obligation
not to construct on his own land in
such manner as to obstruct the light.
• When opening is made on another’s
wall or on part wall, servitude is
positive because the owner or owners
permit the encumbrance to burden his
wall.
• It is also positive if the opening is
made in one’s own wall and there are
balconies extending over the tenement
of another.
• Essential duty of the servient owner is
negative. A duty to do in his part is at
most an accessory or subsidiary
obligation.
(4) As to cause or origin
• Legal-created by law
• Voluntary-created by the will of the
parties
General Rules Relating to Servitudes
(1) No one can have a servitude over his
own property (nulli res sua servit)
(2) A servitude cannot consist in doing
(servitus in faciendo consistere nequit)
(3) There cannot be a servitude over
another servitude (servitus servitudes
nequit)
(4) A servitude must be exercised civiliter,
in a way least burdensome to the
owner of the land.
(5) A servitude must have a perpetual
cause.
Modes of Acquiring Easements
(1) By title
• A juridical act which gives rise to the
servitude such as the law (e.g.
donation, contracts and wills)
• If easement has been acquired but no
proof of existence is available, and
easement is one that cannot be
acquired by prescription, then:
a) May be cured by deed of recognition by
owner of servient estate
b) By final judgment
c) Existence of an apparent sign considered a
title
• Discontinuous easement can only be
acquired by title and not by
prescription.
 • The existence of an apparent sign of
easement between two estates,
established or maintained by the owner
of both, shall be considered, should
either of them be alienated, as a title in
order that the easement may continue
actively and passively, unless, as the
time the ownership of the two estates
is divided, the contrary should be
provided in the title of conveyance of
either of them, or the sign aforesaid
should be removed before the
execution of the deed. This provision
shall also apply in case of the division
of a thing owned in common by two or
more persons. (Art. 624.)
Cases
The road is clearly a servitude voluntarily
constituted in favor of the community under
Art. 531. Having been devoted by NNSC to the
use of the public in general, the road is charged
with public interest. And while so devoted.
NNSC may not establish discriminatory
exceptions against any private persons. (North
Negros Sugar Co. vs Hidalgo)
Since the construction of the church, there had
been a side door in the wall through which the
worshippers attending mass enter and leave,
passing and entering the land in question. As
this use of the land has been continuous, it is
evident that the church has acquired a right to
such use by prescription, in view of the time
that has elapsed since the church was built and
dedicated to religious worship, during which
period the Municipality has not prohibited the
passage over the land by persons who attend
services held by the church. (Municipality of
Dumangas vs Bishop of Jaro)
Easement of light and view go together.
Acquisition of easements is by title or by
prescription. The visible and permanent sign of
an easement is the title that characterizes its
existence. Existence of the apparent sign had
the same effect as a title of acquisition of the
easement of the light and view upon death of
original owner. (Amor vs. Florentino)
(2) By prescription
• Continuous and apparent easements
may be acquired by prescription.
• Under Article 621, the time for
reckoning prescription:
a) Positive easements- from the day on
which the owner of the dominant
estate, or the person who may have
made use of the easement, commenced
to exercise it upon the servient estate
b) Negative easements- from the day on
which the owner of the dominant estate
forbade, by an instrument
acknowledged before e notary public,
the owner of the servient estate, from
executing an act which would be lawful
without the easement.
• Prescription does not require good
faith or just title. General rules for
acquisitive prescription of
ownership and other real rights do
not apply to it. There must
however be adverse possession or
exercise of the easement.
Cases
An easement of a right of way cannot be
acquired through prescription. Possession of a
right consists in the enjoyment of that right
(Art. 423) and to enjoy a right is to exercise it.
it follows that the possession (enjoyment or
exercise) of a right of way is intermittent and
discontinuous. From this premise, it is
inevitable to conclude, with that such easement
can not be acquired by acquisitive prescription
(adverse possession) because the latter
requires that the possession be continuous or
uninterrupted (Art. 1118). (Ronquillo v Roco)
Rights and Obligations of Owners of
Dominant and Servient Estates
(1) Rights of the dominant estate
(a) To use the easement (Art.626) and
exercise all rights necessary for the use
(Art. 627)
(b) To use at his expense all necessary
works for the use and preservation of
the easement. (Art. 627)
(c) In a right of way, to ask for change in
width of easement sufficient for needs
of dominant estate.
Such right of way may be demanded when
there is absolutely no access or even
when there is one, it is difficult or
grossly insufficient. Art. 651 also
provides that “the width of the
easement of right of way shall be that
which is sufficient for the needs of the
dominant estate, and may accordingly
be changed from time to time.”
(Encarnacion v CA)
(2) Obligations of dominant estate
(a) To use easement for the benefit of
immovable and in the manner originally
established. (Art. 626)
(b) To notify owner of the servient estate
before making repairs in manner
inconvenient to servient estate. (Art.
627)
(c) Not to alter easement or render it
burdensome.
(d) If there are several dominant estates
unless he renounces his interest: to
contribute the expenses of works
necessary for use and preservation
servitude. (Art. 628)
• Owner of dominant estate has the right to
use accessory servitudes or those
necessary for the use of other servitudes
regarded as principals ones.
• When easement has been established in a
general way, without any specific purpose,
it can be used for all the needs of the
dominant estate may be adopted to any
new modification in the tenement itself.
• Works must be executed in the manner of
least inconvenience to the servient who
cannot recover indemnity for the inevitable
damages that may be suffered by the
servient owner.
• If dominant owner violates restrictions, he
can be compelled to restore the things their
original condition and to pay indemnity for
the damages.
• If dominant tenement is alienated,
transferee can be required to restore things
their original condition but he cannot be
required to pay indemnity because this is a
personal liability of the former owner.
(3) Rights of the servient estate
(a) To retain ownership and use of his
property (Art 630)
(b) To change the place and manner of the
use of the easement
(4) Obligations of the servient estate
(a) Not to impair the use of the easement.
(Art. 629)
(b) To contribute proportionately to
expenses to use the easement [Art
628(2)]
• Owner of servient tenement must abstain
from anything that will render the use of
the easement more inconvenient to the
owner of the dominant estate.
• If owner of the servient estate performs act
or constructs works impairing the use of the
servitude, the owner of the dominant
tenement may ask for the destruction of
such works and restoration of things to
their condition before the impairment with
indemnity for damages suffered. Injunction
may also obtained in order to restrain the
owner of servient tenement.
Modes of Extinguishment of Easements
(1) Merger – must be absolute, perfect and
definite, not merely temporary.
• If cause for cessation of merger is inherent
like nullity or rescission, easement is
reestablished. If extrinsic, there is no
revival.
• When owner of the servient estate buys
dominant estate, easement is extinguished
but if he sells one of the estates later,
easement is not reestablished.
(2) Non- user for 10 years
(a) Computation of period
(1) Discontinuous easements: counted
from the day they ceased to be
used
(2) Continuous easements: counted
from the day an act adverse to the
exercise took place
(b) Use by a co- owner of the dominant
estate bars prescription with respect to
others.( Art 633)
(c) Servitudes not yet exercised cannot be
extinguished by non-user.
• Non – user must be due to abstention by
dominant owner and not to fortuitous
event. If dominant estate is used in
common, exercise of the easement of one
of the co – owner inures to the benefit of all
others and preserves the easement which is
indivisible.
• Servitudes not yet exercised cannot be
extinguished by non – user.
(3) Impossibility of use
• When either or both of the estates fall into
such condition that the easement cannot be
used; but it shall revive if the subsequent
condition of the estates or either of them
should again permit its use, unless when
the use becomes possible, sufficient time
for prescription has elapsed, in accordance
with the provisions of the preceding
number;
• This mode arises from the condition of the
tenements and only suspends the servitude
unlit such time when it can be used again.
• 10 years cap for suspension, otherwise,
extinguished by prescription as previously
provided.
Eg. Flooding of servient tenement over
which a right of way exists.
(4) Expiration of term or fulfillment of
resolutory condition
By the expiration of the term or the fulfillment
of the condition, if the easement is
temporary or conditional;
(5) Renunciation of owner of the dominant
estate
Fact that owners of the dominant estate
refrained from claiming the servitude
without any positive act to imply a real
waiver or renunciation does not bring the
case within the provisions of this article.
Occurs only in voluntary easements.
(6) Redemption agreed upon between the
owners.
• By the redemption agreed upon between
the owners of the dominant and servient
estates.
-Voluntary
 -Stipulated conditions, which extinguish
easements.
(7) Other causes not mentioned
(a) Annulment or rescission or cancellation of
the title constituting the easement.
(b) Termination of the right of grantor to
create the easement ( e.g. redemption
of the property sold a retro because of
the exercise of the right of conventional
redemption ( Art. 1618)
(c) Abandonment of the servient estate
(d) Eminent domain – i.e. expropriation of
the servient estate or dominant estate
(e) Special cause of extinction of legal right
of way, the opening of an adequate outlet
to the highway extinguishes the
easement, if servient owner makes a
demand for such extinguishment.(Art.
655)
(f) Registration of the servient estate as
FREE, that is, although the servient
estate was registered under the Torrens
system, the easement thereon was not
there is a stipulation or actual knowledge
of the easement on the part the
transferee.
(g) Permanent impossibility to make use of
the easement.
Legal Easements
(1) Laws Governing Legal Easements
(a) Public Easements
(1) Special laws and regulations
relating
(2) Chapter 2, Title VIII, Book II of the
New Civil Code
(b) Private legal easements
(1) By agreement of the interested
parties whenever the law does not
prohibit it and no injury is suffered
by a third person.
(2) Chapter 2, Title VII, Book II of the
New Civil Code
(2) Private Legal Easements provided for by the
New Civil Code
(a) Those established for the use of water
or easements relating waters (Arts.
637 – 648)
(1) Natural drainage of waters with
stones or earth carried with them
• This is a natural servitude and exists only
with respect to waters which form in upper
tenements and flow to the lower tenements
by force of nature and not by those caused
by acts of man.
• Owner of tenements cannot construct works
to increase the burden of this servitude.
• Owner of the lower tenements cannot make
works which impede the servitude. But he
can construct work necessary to prevent
damage to himself provided it does not
impede the natural servitude and he does
not cause damage to other tenements by
accumulation of the waters.
• Rain water from roofs of buildings and
water from houses can not be made to fall
directly on lower tenements. They must be
received on one’s own land.
• It is the duty of the owner of the building to
direct the rainwater to a public place or to
establish an easement of passage of water
through a neighboring tenement.
Case
The dikes are continuous easements since it
does depend upon the act of man, but is due to
gravity. Being such, it is subject to the
extinction to the non-user (20 years in the Old
Code and 10 years in the New Code). Since, it
was admittedly built in 1937 or 1938, the action
is barred by prescription. (Ongsiaco v.
Ongsiaco)
(2) Easements on lands along
riverbanks
• For public use: Three meter zone along
margins for navigation, floatage, fishing
and salvage.
• If navigable – Towpath easement for
navigation and floatage
• If private land – expropriate, since it is for
private use.
(3) Abutment of Land
• Non – owner builder of the dam pay owner
of land for the abutment of the land.
• abutment – part of dam that extends to the
riverbank or dam
• if no easement previously established, and
the dam floods the land – injured owner or
his representative can remove it as private
nuisance.
(4) Aqueduct
Any person who may wish to use upon his own
estate any water of which he can dispose shall
have the right to make it flow through the
intervening estates, with the obligation to
indemnify their owners, as well as the owners
of the lower estates upon which the waters may
filter or descend. (Art. 642.)
Obligation of the dominant estate:
(1) To prove that he can dispose of the water
and that it is sufficient for the use for which it is
intended;
(2) To show that the proposed right of way is
the most convenient and the least onerous to
third persons;
(3) To indemnify the owner of the servient
estate in the manner determined by the laws
and regulations.
• The easement of aqueduct for private
interest cannot be imposed on buildings,
 courtyards, annexes, or outhouses, or on
orchards or gardens already existing.
• The easement of aqueduct does not prevent
the owner of the servient estate from
closing or fencing it, or from building over
the aqueduct in such manner as not to
cause the latter any damage, or render
necessary repairs and cleanings impossible.
• For legal purposes, the easement of
aqueduct shall be considered as continuous
and apparent, even though the flow of the
water may not be continuous, or its use
depends upon the needs of the dominant
estate, or upon a schedule of alternate days
or hours.
(5) Drawing waters and watering
materials
Compulsory easements for drawing water or for
watering animals can be imposed only for
reasons of public use in favor of a town or
village, after payment of the proper indemnity.
(Art. 640)
Easements for drawing water and for watering
animals carry with them the obligation of the
owners of the servient estates to allow passage
to persons and animals to the place where such
easements are to be used, and the indemnity
shall include this service. (Art. 641)
Easements of the right of way for the passage
of livestock known as animal path, animal trail
or any other, and those for watering places,
resting places and animal folds, shall be
governed by the ordinances and regulations
relating thereto, and, in the absence thereof, by
the usages and customs of the place. (Art.
657)
• Without prejudice to rights legally acquired,
the animal path shall not exceed in any
case the width of 75 meters, and the
animal trail that of 37 meters and 50
centimeters.
• Whenever it is necessary to establish a
compulsory easement of the right of way or
for a watering place for animals, the
provisions of this Section and those of
Articles 640 and 641 shall be observed. In
this case the width shall not exceed 10
meters.
(6) Stop lock and sluice gate
Art. 647. One who for the purpose of irrigating
or improving his estate, has to construct a stop
lock or sluice gate in the bed of the stream from
which the water is to be taken, may demand
that the owners of the banks permit its
construction, after payment of damages,
including those caused by the new easement to
such owners and to the other irrigators.
(b) Easement of right of way
• Requisites before demanding a right of way
(Articles 649-650)
(a) owner, or anyone with a real right to
cultivate, or use immovable
(b) not due to acts of the proprietor of the
dominant estate
(c) surrounded by immovables belonging
to others, without adequate outlet to
public highway
i. absolutely no access
ii. difficult or dangerous to use
(d) right of way claimed is the least
prejudicial to the servient estate
(e) payment of the proper indemnity
(i) permanent passage – value of the
land
(ii) without permanent passage –
payment of damages
• To justify the imposition of this servitude,
there must be a real necessity for it. Mere
convenience is not enough. Even when
there is a necessity, if it can be satisfied
without imposing the servitude, servitude
should not be imposed.
• Owner can not by his own act isolate his
property from the public highway and then
claim an easement of way through an
adjacent estate.
• Access to highway may be demanded:
(a) when there is absolutely no access
to a public highway
(b) when even if there is one, it is
difficult or dangerous to use or is
grossly insufficient
• When the want of an access to a public
highway is due to acts imputable to the
owner as when he constructs buildings or
grants concessions to others obstructing
the old way, the law prevents him from
obtaining a legal servitude of right of way.
• The outlet has to be sufficient for the
purpose and needs of the dominant owner
although it need not be public.
• Whether a right of way is reasonable and
necessary depends upon the circumstances
of each particular case. Servitude must
meet the requirements of and be of
beneficial use to the dominant estate. But
this is subject to the limitation that the
usefulness of the servient estate is not
unreasonably impaired.
• Payment of the value of the land for
permanent use of easement does not mean
an alienation of the land occupied.
• Criterion of the least prejudice to the
servient estate must prevail over the
criterion of the shortest distance. (Quimen
v. Quimen)
• Where there are several tenements
surrounding the dominant estate and the
easement may be established on any of
them, the one where the way is the
shortest and will cause the least damage
should be chosen. But if these two
requirements do not concur, the way which
will cause the least damage should be
 chosen even if not the shortest. If
conditions of the various tenements are the
same, all adjoining owners should be cited
and experts utilized.
• Before judicial decision, establishment of
any road would constitute an invasion of
the land with all consequences resulting
from such transgression.
• It is the needs of the dominant estate which
determines the width of the passage.
Servitude may thus be modified after it has
already been established.
Whenever a piece of land acquired by sale,
exchange or partition, is surrounded by other
estates of the vendor, exchanger, or co-owner,
he shall be obliged to grant a right of way
without indemnity.
In case of a simple donation, the donor shall be
indemnified by the donee for the establishment
of the right of way. (Art. 652)
• Servitude without indemnity is considered
as a tacit condition of the sale, exchange or
partition, but not implied in a simple
donation because the grantor receives
nothing from the grantee.
• When the right of way originally established
without indemnity should disappear or
become useless, a legal servitude may be
demanded with the payment of the
indemnity.
• On the other hand, if grantor/ exchanger/
vendor ‘s property becomes isolated, he
must pay indemnity.
Art. 654. If the right of way is permanent, the
necessary repairs shall be made by the owner
of the dominant estate. A proportionate share
of the taxes shall be reimbursed by said owner
to the proprietor of the servient estate.
• Obligations of praedium dominans;
necessary repairs, proportionate share of
taxes.
Art. 655. If the right of way granted to a
surrounded estate ceases to be necessary
because its owner has joined it to another
abutting on a public road, the owner of the
servient estate may demand that the easement
be extinguished, returning what he may have
received by way of indemnity. The interest on
the indemnity shall be deemed to be in
payment of rent for the use of the easement.
The same rule shall be applied in case a new
road is opened giving access to the isolated
estate.
In both cases, the public highway must
substantially meet the needs of the dominant
estate in order that the easement may be
extinguished.
• Extinguishment Not Ipso Jure – (only)
owners of the servient estate has to ask for
it and return indemnity.
• Owner of the dominant estate may not ask
for the return of the indemnity unless
servient owner asks for the extinguishment.
• Offset interest of the indemnity with rentals
of the land.
Art. 656. If it be indispensable for the
construction, repair, improvement, alteration or
beautification of a building, to carry materials
through the estate of another, or to raise
therein scaffolding or other objects necessary
for the work, the owner of such estate shall be
obliged to permit the act, after receiving
payment of the proper indemnity for the
damage caused him.
• This may be demanded by owner and
usufructuary.
• Word indispensable should not be
understood as indicating that it would be
impossible to construct or repair the
building. It is enough that it would be
extremely difficult to do so without the
easement.
Animal Path
• Without prejudice to rights legally acquired,
the animal path shall not exceed in any
case the width of 75 meters, and the
animal trail that of 37 meters and 50
centimeters.
• Whenever it is necessary to establish a
compulsory easement of the right of way or
for a watering place for animals, the
provisions of this Section and those of
articles 640 and 641 shall be observed. In
this case the width shall not exceed 10
meters.(570a)
Cases
A voluntary easement of right of way could be
extinguished only by mutual agreement or by
renunciation of the owner of the dominant
estate. The opening of an adequate outlet to a
highway can extinguish only legal or
compulsory easements, not voluntary
easements. (La Vista v. CA)
An easement of right of way can be established
through continued use. This doctrine was
enunciated in Ronquillo v Roco which held that
an easement of right of way is discontinuous in
nature since the dominant estate cannot be
continually crossing the servient estate but can
do so only at intervals. (Vda. de Baltazar v
CA)
The use of the road lots by the Llenados during
the month of March was by mere tolerance of
Floro pending the negotiation of the terms &
conditions of the right of way. Although such
use was in anticipation of a voluntary easement,
no such contract was validly entered into by
reason of the failure of the parties to agree on
its terms & conditions. The burden of proving
the existence of the prerequisites to validly
claim a compulsory right of way lies on the
owner of the dominant estate. (Floro v
Llenado)
(c) Easement of party wall
Art. 658. The easement of party wall shall be
governed by the provisions of this Title, by the
local ordinances and customs insofar as they do
not conflict with the same, and by the rules of
co-ownership
• Party wall is a co-ownership in a special
class by itself:
(1) It is indivisible.
(2) The part pertaining to each co-owner
can be materially designated.
(3) Rights of a co-owner of a party wall are
greater than those of an ordinary co-
owner and with respect to increasing
the height of the wall.
• Wall may be owned in common by the
adjoining owners either form its
construction or by a subsequent act. Each
owner can insert the beams of his building
in the wall to the extent of its entire
thickness.
• A party wall is one which is built by
common agreement by getting land from
the adjoining tenements in equal parts.
Each owner may use the wall but only to
the extent of one-half of its thickness.
Art. 659. The existence of an easement of
party wall is presumed, unless there is a title,
or exterior sign, or proof to the contrary:
(1) In dividing walls of adjoining buildings up to
the point of common elevation;
(2) In dividing walls of gardens or yards
situated in cities, towns, or in rural
communities;
(3) In fences, walls and live hedges dividing
rural lands.
• There is presumption juris tantum. Co-
ownership must be accepted unless the
contrary appears from the title showing
that the entire wall belongs exclusively to
one of the property owners or unless there
is an exterior sign to destroy such
presumption.
Art. 660. It is understood that there is an
exterior sign, contrary to the easement of party
wall:
(1) Whenever in the dividing wall of buildings
there is a window or opening;
(2) Whenever the dividing wall is, on one side,
straight and plumb on all its facement, and on
the other, it has similar conditions on the upper
part Art. 657. Easements of the right of way for
the passage of livestock known as animal path,
animal trail or any other, and those for watering
places, resting places and animal folds, shall be
governed by the ordinances and regulations
relating thereto, and, in the absence thereof, by
the usages and customs of the place.
Without prejudice to rights legally acquired, the
animal path shall not exceed in any case the
width of 75 meters, and the animal trail that of
37 meters and 50 centimeters.
Whenever it is necessary to establish a
compulsory easement of the right of way or for
a watering place for animals, the provisions of
this Section and those of Articles 640 and 641
shall be observed. In this case the width shall
not exceed 10 meters. (570a), but the lower
part slants or projects outward;
(3) Whenever the entire wall is built within the
boundaries of one of the estates;
(4) Whenever the dividing wall bears the
burden of the binding beams, floors and roof
frame of one of the buildings, but not those of
the others;
(5) Whenever the dividing wall between
courtyards, gardens and tenements is
constructed in such a way that the coping sheds
the water upon only one of the estates;
(6) Whenever the dividing wall, being built of
masonry, has stepping stones, which at certain
intervals project from the surface on one side
only, but not on the other;
(7) Whenever lands inclosed by fences or live
hedges adjoin others which are not inclosed.
In all these cases, the ownership of the walls,
fences or hedges shall be deemed to belong
exclusively to the owner of the property or
tenement which has in its favor the
presumption on any one of these signs. (573)
Art. 661. Ditches or drains opened between
two estates are also presumed as common to
both, if there is no title or sign showing the
contrary.
There is a sign contrary to the part-ownership
whenever the earth or dirt removed to open the
ditch or to clean it is only on one side thereof,
in which case the ownership of the ditch shall
belong exclusively to the owner of the land
having this exterior sign in its favor.
Art. 662. The cost of repairs and construction
of party walls and the maintenance of fences,
live hedges, ditches, and drains owned in
common, shall be borne by all the owners of the
lands or tenements having the party wall in
their favor, in proportion to the right of each.
Nevertheless, any owner may exempt himself
from contributing to this charge by renouncing
his part-ownership, except when the party wall
supports a building belonging to him.
Art. 663. If the owner of a building, supported
by a party wall desires to demolish the building,
he may also renounce his part-ownership of the
wall, but the cost of all repairs and work
necessary to prevent any damage which the
demolition may cause to the party wall, on this
occasion only, shall be borne by him.

Art. 664. Every owner may increase the height
of the party wall, doing at his own expense and
paying for any damage which may be caused by
the work, even though such damage be
temporary.
The expenses of maintaining the wall in the part
newly raised or deepened at its foundation shall
also be paid for by him; and, in addition, the
indemnity for the increased expenses which
may be necessary for the preservation of the
party wall by reason of the greater height or
depth which has been given it.
If the party wall cannot bear the increased
height, the owner desiring to raise it shall be
obliged to reconstruct it at his own expense
and, if for this purpose it be necessary to make
it thicker, he shall give the space required from
his own land.
Art. 665. The other owners who have not
contributed in giving increased height, depth or
thickness to the wall may, nevertheless, acquire
the right of part-ownership therein, by paying
proportionally the value of the work at the time
of the acquisition and of the land used for its
increased thickness.
Art. 666. Every part-owner of a party wall may
use it in proportion to the right he may have in
the co-ownership, without interfering with the
common and respective uses by the other co-
owners.
• Each part-owner can use the party wall only
in proportion to his interest
(d) Easement of Light and View
Art. 667. No part-owner may, without the
consent of the others, open through the party
wall any window or aperture of any kind.
• Such act would imply the exercise of the
right of ownership by the use of the entire
thickness of the wall. It would be an
invasion of the right of the other part
owners.
Art. 668. The period of prescription for the
acquisition of an easement of light and view
shall be counted:
(1) From the time of the opening of the
window, if it is through a party wall; or
(2) From the time of the formal prohibition
upon the proprietor of the adjoining land or
tenement, if the window is through a wall on
the dominant estate.
Art. 669. When the distances in Article 670 are
not observed, the owner of a wall which is not
party wall, adjoining a tenement or piece of
land belonging to another, can make in it
openings to admit light at the height of the
ceiling joints or immediately under the ceiling,
and of the size of thirty centimeters square,
and, in every case, with an iron grating
imbedded in the wall and with a wire screen.
Nevertheless, the owner of the tenement or
property adjoining the wall in which the
openings are made can close them should he
acquire part-ownership thereof, if there be no
stipulation to the contrary.
He can also obstruct them by constructing a
building on his land or by raising a wall thereon
contiguous to that having such openings, unless
an easement of light has been acquired.
• Openings allowed are for the purpose of
admitting light. They can be made only in
the walls of buildings and not in the walls
separating gardens or yards because they
have no need for such openings
• The period to require the closing of the
illegal opening begins to run from the
moment such opening is made. But it is
only the action to compel the closure which
prescribes
• Although action to compel the closing has
prescribed, this does not mean servitude
has been acquired by person who opened
them. Servitude is negative and period for
acquisitive prescription will begin to run
only from the time that the owner asserting
the servitude has forbidden the owner of
adjoining tenement from doing something
he latter could lawfully do without the
servitude.
Art. 670. No windows, apertures, balconies, or
other similar projections which afford a direct
view upon or towards an adjoining land or
tenement can be made, without leaving a
distance of two meters between the wall in
which they are made and such contiguous
property.
Neither can side or oblique views upon or
towards such conterminous property be had,
unless there be a distance of sixty centimeters.
The nonobservance of these distances does not
give rise to prescription.
• Direct View— that which is obtained from a
wall parallel to the boundary line, such that
from the opening in such wall, it is possible
to see the adjoining tenement without the
necessity of putting out or turning one’s
head
• Side or oblique view—that which is obtained
from a wall a an angle with the boundary
line such that in order to see the adjoining
tenement, it is necessary to put out or turn
one’s head to the left or to the right
• Mere opening of windows in violation of the
present article does not give rise to the
easement of light and view by prescription.
Art. 672. The provisions of Article 670 are not
applicable to buildings separated by a public
way or alley, which is not less than three
meters wide, subject to special regulations and
local ordinances.
Art. 673. Whenever by any title a right has
been acquired to have direct views, balconies or
belvederes overlooking an adjoining property,
the owner of the servient estate cannot build
thereon at less than a distance of three meters
to be measured in the manner provided in
Article 671. Any stipulation permitting distances
less than those prescribed in Article 670 is void.
Art. 673. Whenever by any title a right has
been acquired to have direct views, balconies or
belvederes overlooking an adjoining property,
the owner of the servient estate cannot build
thereon at less than a distance of three meters
to be measured in the manner provided in
Article 671. Any stipulation permitting distances
less than those prescribed in Article 670 is void.
• This article refers to a true servitude.
Acquisition may be through contact,
testament, or prescription. Distance may
be increased by stipulation of the parties.
It may also be extended by prescription.
(e) Drainage of Buildings
Art. 674. The owner of a building shall be
obliged to construct its roof or covering in such
manner that the rain water shall fall on his own
land or on a street or public place, and not on
the land of his neighbor, even though the
adjacent land may belong to two or more
persons, one of whom is the owner of the roof.
Even if it should fall on his own land, the owner
shall be obliged to collect the water in such a
way as not to cause damage to the adjacent
land or tenement.
• Falling water is res nullius and has no
owner. Every owner of a house or building
would have aright to dispose of it in any
manner even to the prejudice of neighbors
had it not been for the provisions in this
Code
• Last sentence is an exception to Art 637
which requires lower tenements to receive
water flowing naturally from higher
tenements.
Art. 675. The owner of a tenement or a piece
of land, subject to the easement of receiving
water falling from roofs, may build in such
manner as to receive the water upon his own
roof or give it another outlet in accordance with
local ordinances or customs, and in such a way
as not to cause any nuisance or damage
whatever to the dominant estate.
• Receive water through
(1) another roof
(2) another outlet
• In accordance with local ordinances or
customs
• Not a nuisance to the dominant estate
Art. 676. Whenever the yard or court of a
house is surrounded by other houses, and it is
not possible to give an outlet through the house
itself to the rain water collected thereon, the
establishment of an easement of drainage can
be demanded, giving an outlet to the water at
the point of the contiguous lands or tenements
where its egress may be easiest, and
establishing a conduit for the drainage in such
manner as to cause the least damage to the
servient estate, after payment of the property
indemnity.
(f) Intermediate Distances and
Works for Certain Constructions
and Plantings
Art. 677. No constructions can be built or
plantings made near fortified places or
fortresses without compliance with the
conditions required in special laws, ordinances,
and regulations relating thereto.
Art. 678. No person shall build any aqueduct,
well, sewer, furnace, forge, chimney, stable,
depository of corrosive substances, machinery,
or factory which by reason of its nature or
products is dangerous or noxious, without
observing the distances prescribed by the
regulations and customs of the place, and
without making the necessary protective works,
subject, in regard to the manner thereof, to the
conditions prescribed by such regulations.
These prohibitions cannot be altered or
renounced by stipulation on the part of the
adjoining proprietors.
In the absence of regulations, such precautions
shall be taken as may be considered necessary,
in order to avoid any damage to the
neighboring lands or tenements.
Art. 679. No trees shall be planted near a
tenement or piece of land belonging to another
except at the distance authorized by the
ordinances or customs of the place, and, in the
absence thereof, at a distance of at least two
meters from the dividing line of the estates if
tall trees are planted and at a distance of at
least fifty centimeters if shrubs or small trees
are planted.
Every landowner shall have the right to demand
that trees hereafter planted at a shorter
distance from his land or tenement be
uprooted.
The provisions of this article also apply to trees
which have grown spontaneously. (591a)
Art. 680. If the branches of any tree should
extend over a neighboring estate, tenement,
garden or yard, the owner of the latter shall
have the right to demand that they be cut off
insofar as they may spread over his property,
and, if it be the roots of a neighboring tree
which should penetrate into the land of another,
the latter may cut them off himself within his
property.
• Owner of the neighboring tenement can cut
the roots without necessity of notice to the
owner of the trees. But as to the branches,
it is necessary to as that they be cut.
Art. 681. Fruits naturally falling upon adjacent
land belong to the owner of said land.
(g) Easement against Nuisance
Art. 682. Every building or piece of land is
subject to the easement which prohibits the
proprietor or possessor from committing
nuisance through noise, jarring, offensive odor,
smoke, heat, dust, water, glare and other
causes.
Art. 683. Subject to zoning, health, police and
other laws and regulations, factories and shops
may be maintained provided the least possible
annoyance is caused to the neighborhood.
Nuisance—that class of wrongs which arise from
unreasonable, unwarranted, or unlawful use by
a person of his own property and which
produces material annoyance, inconvenience,
discomfort, or harm that the law will presume a
consequent damage.
• Whether the effects of the use of one’s
property constitutes a nuisance depends
upon the circumstances. Their penetration
into another tenement in a limited measure
is permissible. Even if these effects cause
material injury, they would constitute a
nuisance if they result from the utilization
of a tenement in a manner which is usual or
current in the locality.
(h) Easement of Lateral and Subjacent
Support
Art. 684. No proprietor shall make such
excavations upon his land as to deprive any
adjacent land or building of sufficient lateral or
subjacent support.
• Owner has a right to excavate on his own
land up to the boundary line of the building
land. This easement prevents him from
excavating so close as to deprive the
adjoining estate of its natural support and
cause it to crumble.
• Person excavating instead of observing a
sufficient distance to permit necessary
lateral support of adjoining land may
support the latter artificially of any material
provided it is sufficient support
• There are cases where surface belongs to
one person and substrata may belong to or
be lawfully used by others. This is where
easement of subjacent support exists.
Owners of rights below the surface may
excavate but this imposes upon them the
duty to refrain from removing such
sufficient support which will protect the
surface from subsiding
Remedies for violation:
(1) Action for damages
(2) Injunction
• Action may be maintained against anyone
who causes the injury whether he is the
owner or not. Contractor is liable jointly
with the owner of the land. It is the person
who made the excavation which causes the
injury and not the person in possession
when the injury occurs, who is liable for
damages.
Art. 685. Any stipulation or testamentary
provision allowing excavations that cause
danger to an adjacent land or building shall be
void.
Art. 686. The legal easement of lateral and
subjacent support is not only for buildings
standing at the time the excavations are made
but also for constructions that may be erected.
Art. 687. Any proprietor intending to make any
excavation contemplated in the three preceding
articles shall notify all owners of adjacent lands.
• Notice enables the adjoining owner to take
the necessary precautions to protect their
lands and buildings. It must be sufficient to
inform the nature and the extent of the
proposed excavation.
• Although person making the excavation has
given notice, he is bound to exercise
reasonable care and skill so as not to cause
damage.
VOLUNTARY EASEMENTS
Art. 688. Every owner of a tenement or piece
of land may establish thereon the easements
which he may deem suitable, and in the manner
and form which he may deem best, provided he
does not contravene the laws, public policy or
public order.
Art. 689. The owner of a tenement or piece of
land, the usufruct of which belongs to another,
may impose thereon, without the consent of the
usufructuary, any servitudes which will not
injure the right of usufruct.
Art. 690. Whenever the naked ownership of a
tenement or piece of land belongs to one
person and the beneficial ownership to another,
no perpetual voluntary easement may be
established thereon without the consent of both
owners.
Art. 691. In order to impose an easement on
an undivided tenement, or piece of land, the
consent of all the co-owners shall be required.
The consent given by some only, must be held
in abeyance until the last one of all the co-
owners shall have expressed his conformity.
But the consent given by one of the co-owners
separately from the others shall bind the
grantor and his successors not to prevent the
exercise of the right granted.
Art. 692. The title and, in a proper case, the
possession of an easement acquired by
prescription shall determine the rights of the
dominant estate and the obligations of the
servient estate. In default thereof, the
easement shall be governed by such provisions
of this Title as are applicable thereto.
Art. 693. If the owner of the servient estate
should have bound himself, upon the
establishment of the easement, to bear the cost
of the work required for the use and
preservation thereof, he may free himself from
this obligation by renouncing his property to the
owner of the dominant estate.
Who may establish them:
• The OWNER possessing capacity to
ENCUMBER property may constitute
voluntary servitudes. (Art. 688)
• The usufructuary, and even the possessor
in good faith, does not have the right to do
so because the creation of a servitude
is a disposition of part of the right of
ownership, and no one but an owner may
do this.
• A general capacity to contract is not
sufficient.
• If there are various owners, ALL must
CONSENT, but consent once given is
irrevocable. (Art. 690 and 691)
• Hence, their consent need not be
simultaneous.
In whose favor they are established:
(a) Praedial Servitudes
• For the owner of the dominant estate
• For any other person having any
juridical relation with the dominant
estate, if the owner ratifies it.
(b) Personal Servitudes
• For anyone capacitated to accept
In case of property under usufruct
• The usufructuary must not be prejudiced
(Art 689)
Rights and Obligations
• These are determined by the—
(1) Title, and
(2) Possession (in case of prescription
enlarging or diminishing the initial
voluntary easement) (Art. 692)
• Where the owner bound himself to pay
for the maintenance or do some service
he may abandon his tenement and relieve
himself of his obligation (Art. 693)
• To produce the transmission of ownership
over the tenement abandoned, the
abandonment must be made in the proper
juridical form required for the transmission
of the ownership of immovable property.
______________________________________
___
NUISANCE
Art. 694. A nuisance is any act, omission,
establishment, business, condition of property,
or anything else which:
(1) Injures or endangers the health or safety of
others; or
(2) Annoys or offends the senses; or
(3) Shocks, defies or disregards decency or
morality; or
(4) Obstructs or interferes with the free
passage of any public highway or street, or any
body of water; or
(5) Hinders or impairs the use of property.
• To constitute a nuisance there must be an
arbitrary or abusive use of property or
disregard of commonly accepted standards
set by society
Classification of Nuisance
Nature
1. Nuisance Per Se or at Law
2. Nuisance Per Accidens or in Fact
Scope Of Their Injurious Effects
1. Public
2. Private
3. Mixed
Nuisance Per Se (Nuisance at Law)
• It is an act, occupation, or structure which is
a nuisance at all times and under any
circumstances, REGARDLESS OF LOCATION
OR SURROUNDINGS.
Nuisance Per Accidens (Nuisance in Fact)
• One that becomes a nuisance by reason of
circumstances and surroundings
• e.g. slaughter house
Public Nuisance
• It causes hurt, inconvenience, or injury to the
public, generally, or to such part of the public
as necessarily comes in contact it
• public nuisance=common nuisance
• It is a direct encroachment upon public rights
or property which results injuriously to the
public
Private Nuisance
• One which violates only private rights and
produces damages to but one or a few
persons
Attractive Nuisance
dangerous instrumentalities or appliances of a
character likely to attract children in play, the
owner of which, who fails to exercise ordinary
care to prevent children from playing therewith
or resorting thereto, is liable to a child of tender
years who is injured thereby, even if the child is
technically a trespasser in the premises.
(Hidalgo v Balandan)
- The attractive nuisance doctrine generally is
not applicable to bodies of water, artificial as
well as natural, in the absence of some
unusual condition or artificial feature other
than the mere water and its location.
Distinction Between Public and Private
Nuisances
Test- not the number of persons annoyed, but
the possibility of annoyance to the public by the
invasion of its rights- the fact that it is in a
public place and annoying to all who come
within its sphere
Liability of Creator of Nuisance
• General Rule: he who creates a nuisance is
liable for the resulting damages and,
ordinarily, his liability continues as long as
the nuisance continues.
• He whose duty is to abate a nuisance should
answer for the consequences resulting from
its continuance
• No one is to be held liable for a nuisance
which he cannot himself physically abate
• All parties to the creation or maintenance of a
nuisance per se are responsible for its effect
without limitation of conditions or of time.
Liability of Transferees
• To render him liable, he must knowingly
continue the nuisance, and generally, he is
not liable for continuing it in its original form,
unless he has been notified of its existence
and requested to remove it, or has actual
knowledge that it is a nuisance and injurious
to the rights of others.
Nature of Liability
• All persons who join or participate in the
creation or maintenance of a nuisance are
liable solidarily
Art. 697. The abatement of a nuisance does
not preclude the right of any person injured to
recover damages for its past existence.
Art. 698. Lapse of time cannot legalize any
nuisance, whether public or private.
No Prescription
• The creation and maintenance of a public
nuisance is punishable criminally hence, the
element of criminality, which characterizes
the acts of creating the nuisance, should
prevent the acquisition of a right to maintain
it.
Art. 699. The remedies against a public
nuisance are:
(1) A prosecution under the Penal Code or any
local ordinance: or
(2) A civil action; or
(3) Abatement, without judicial proceedings.
Criminal Prosecution
• Only for a public nuisance, and not for a
private nuisance
• Criminal intent may be immaterial
Judgment With Abatement
Extrajudicial Abatement
• In the exercise of the POLICE POWER, the
State may authorize its officers summarily to
abate public nuisances without resort to legal
proceedings and without notice or hearing
Art. 700. The district health officer shall take
care that one or all of the remedies against a
public nuisance are availed of.
Art. 701. If a civil action is brought by reason of
the maintenance of a public nuisance, such
action shall be commenced by the city or
municipal mayor.
Art. 702. The district health officer shall
determine whether or not abatement, without
judicial proceedings, is the best remedy against
a public nuisance.
Art. 703. A private person may file an action
on account of a public nuisance, if it is specially
injurious to himself.
Special Injury to Individual
• GENERAL RULE: a public nuisance gives no
right of action to any individual but must be
abated by a proceeding instituted in the name
of the State
• EXCEPTION: an individual who suffered some
special damage by reason of a public
nuisance, different from that sustained by the
general public, may maintain a suit in equity
for an injunction to abate it, or an action for
damages
• In other words, a public nuisance is not
actionable by an individual unless and
until it becomes as to him, a private
nuisance; i.e., until he suffers some
special and definite harm.
Art. 704. Any private person may abate a
public nuisance which is specially injurious to
him by removing, or if necessary, by destroying
the thing which constitutes the same, without
committing a breach of the peace, or doing
unnecessary injury. But it is necessary:
(1) That demand be first made upon the owner
or possessor of the property to abate the
nuisance;
(2) That such demand has been rejected;
(3) That the abatement be approved by the
district health officer and executed with the
assistance of the local police; and
(4) That the value of the destruction does not
exceed three thousand pesos.
Right of Individual to Abate a Public
Nuisance
Requisites
1. Must be exercised only in cases of urgent
or extreme necessity
2. Nuisance must be actually existing at the
time when abatement is undertaken
3. The summary abatement should be
resorted to within a reasonable time after
knowledge of the nuisance is acquired or
should have been acquired by the person
entitled to abate
4. Must give a reasonable notice of his
intention; the code expressly mentions
that a demand must be made
5. The means employed must be reasonable
6. The abatement must be approved by the
district health officer
7. The property must not be destroyed
unless it is absolutely necessary to do so;
the civil code, however, provides a
limitation, that the value of destruction
shall not exceed three thousand pesos
8. The right must always be exercised with
the assistance of the local police
Art. 705. The remedies against a private
nuisance are:
(1) A civil action; or
(2) Abatement, without judicial proceedings.
Right to Damages
• A person may maintain an action at law for
damages caused by a nuisance
• The payment of damages is generally a mere
reparation for past injuries, and not an
authority to continue the wrong.
• If the nuisance is temporary or recurrent in
character, each repetition of it gives rise to a
new cause of action, and successive actions
will lie
Defenses to Action
• The defendant in an action for damages by
reason of a nuisance may set up the following
defenses:
• Public Necessity- Private interest must yield
to the public good
• Estoppel-One who voluntarily places himself
in a situation whereby he suffers an injury will
not be heard to say that his damage is due to
a nuisance maintained by another.
Art. 706. Any person injured by a private
nuisance may abate it by removing, or if
necessary, by destroying the thing which
constitutes the nuisance, without committing a
breach of the peace or doing unnecessary
injury. However, it is indispensable that the
procedure for extrajudicial abatement of a
public nuisance by a private person be followed.
Who may sue on Private Nuisances
• Possession alone of real estate is sufficient to
sustain an action to recover damages for the
maintenance of a nuisance upon adjoining
property in such manner as to injure the
enjoyment of the former
• Ownership of the legal title is not necessary
Art. 707. A private person or a public official
extrajudicially abating a nuisance shall be liable
for damages:
(1) If he causes unnecessary injury; or
(2) If an alleged nuisance is later declared by
the courts to be not a real nuisance.
Remedies of Property Owner
• A person whose property is seized or
destroyed as a nuisance may resort to the
courts for the purpose of determining whether
or not it was in fact a nuisance
• He may bring an action for replevin, or enjoin
its sale and damages if it is has been sold; or
action to enjoin private parties from
proceeding to abate a supposed nuisance
__________________________________
REGISTRY OF PROPERTY
Art. 708. The Registry of Property has for its
object the inscription or annotation of acts and
contracts relating to the ownership and other
rights over immovable property.
Concept
• A register signifies the act of annotation, and
includes the book of memorandum where this
notation is made; by extension is also means
the office where these annotations are made
• The Registry of Real Property may be defined
as a public center where the true condition of
real estate is made clear by registering all
transferable title of ownership and of real
rights which affect it and even where the
capacity of free disposition on the part of an
individual is modified
Purposes of the Principle of Publicity
• To give notice of the true status of the
property
• To record transmissions and modifications of
real rights
• To prevent fraud
• To guarantee the effectivity of rights
Art. 709. The titles of ownership, or of other
rights over immovable property, which are not
duly inscribed or annotated in the Registry of
Property shall not prejudice third persons.
Who are third persons
• Where the law speaks of “prejudice to a third
person,” it refers to one who has not
participated in the act or contract that was
registered
• Where the law states that a “third person
cannot be prejudiced,” it refers to one who
bases his right on a registered title
• A person who has actual knowledge may be
bound without registration
• The owner is not a “third person” within the
meaning of this principle
Art. 710. The books in the Registry of Property
shall be public for those who have a known
interest in ascertaining the status of the
immovables or real rights annotated or
inscribed therein.
• The word “public” is a comprehensive, all-
inclusive term. Properly construed, it
embraces every person. The interest need not
be of a pecuniary character.
Art. 711. For determining what titles are
subject to inscription or annotation, as well as
the form, effects, and cancellation of
inscriptions and annotations, the manner of
keeping the books in the Registry, and the
value of the entries contained in said books, the
provisions of the Mortgage Law, the Land
Registration Act, and other special laws shall
govern.
DIFFERENT MODES OF ACQUIRING
OWNERSHIP
TITLE - the remote cause of acquisition
Every juridical right which gives a means to the
acquisition of real rights but which in itself is
insufficient
MODE- the proximate cause of acquisition
The specific cause which produces dominion and
other real rights as a result of the co-existence
of special status of things, capacity, and
intention of persons and fulfillment of the
requisites of law
Modes of acquiring ownership
1) Occupation
2) Intellectual Creation
3) Donation
4) Prescription
5) Succession
6) Tradition
OCCUPATION
There should be a corporeal thing (tangible)
which must have a “corpus” (body) & that thing
should have no owner
There must be actual occupancy; thing must be
subjected to one’s control/disposition
There must e an intention to occupy
Accomplished according to legal rules
What are the things susceptible to
occupation?
• things that are w/o owner – res nullius;
abandoned
• stolen property cannot be subject of
occupation
• animals that are the object of hunting &
fishing
Kinds of animals:
a) wild – considered res nullius when not
yet captured; when captured
& escaped – become res nullius again
b) domesticated animals – originally wild
but have been captured & tamed; now
belong to their capturer; has habit of
returning to premises of owner;
becomes res nullius if they lose that
habit of returning & regain their original
state of freedom
c) domestic/tame animals – born &
ordinarily raised under the care of
people; become res nullius when
abandoned by owner
• hidden treasure (only when found
on things not belonging to anyone)
• abandoned movables
• Animals:
a) Swarm of bees
- owner shall have right to pursue
them to another’s land (owner to
identify latter for damages, if any)
- land owner shall occupy/retain the
bees if after 2 days, owner did not
pursue the bees
b) Domesticated animals
- may be redeemed within 20 days
from occupation of another person;
if no redemption made, they shall
pertain to the one who caught
them
c) Pigeons & fish
- when they go to another breeding
place, they shall be owned by the
new owner provided they are not
enticed
• Movables:
1) Treasure found on another’s property
- consist of (1) money, precious
objects & 2) hidden & owner is
unknown
- finding must be by chance in order
that stranger may be entitled to ½
of the treasure
2) Movable found w/c is not treasure
- must be returned to owner
- if finder retains the thing found –
may be charged with theft
- if owner is unknown, give to
mayor; mayor shall announce
finding of the movable for 2 weeks
in way he deems best
- of owner does not appear 6 months
after publication, thing found shall
be awarded to finder
- if owner appears, he is obliged to
pay 1/10 of value of property to
finder as price
 - if movable is perishable or cannot
be kept w/o deterioration or w/o
expenses it shall be sold at public
auction 8 days after the publication
What cannot be acquired by occupation
Ownership of a piece of land
• because when a land is without an
owner, it pertains to the state
• land that does not belong to anyone is
presumed to be public land
• but when a property is private and it is
abandoned – can be object of
occupation
• The paper and the impression made
thereon by the mechanical means of
writing that has been employed
• Publication of a letter cannot be made
without the consent of the sender
unless for the public good or in the
interest of justice
PRESCRIPTION
It is the mode by which one acquires ownership
and other real rights thru lapse of time; also a
means by which one loses ownership, rights &
actions; retroactive from the moment period
began to run

INTELLECTUAL CREATION Kinds:

The creator of the property is exclusive owner 1. Acquisitive
and has the right to keep it to himself UNTIL 2. Extinctive
the work is made public Comparison between Acquisitive Prescription
• When work is made public, he loses this and Extinctive Prescription
exclusive right unless the work is Acquisitive Extinctive
copyrighted or patented Prescription Prescription
• A creator cannot be compelled to make his Usurpacion Prescription
work public It is the possessor One looks at the
• RULE: “Every new and innocent product of who does the act neglect of the owner/
mental labor, which has been embodied in his omission
writing, or some other material form, while Expressly vests the Statute of limitation
it remains unpublished, is the exclusive property and raised a that merely bars the
property of its author, entitled to the same new title in the right of action
protection which the law throws around the occupant
possession and enjoyment and other kinds Important feature is Important feature is
of property” the claimant in the owner out of
• When his rights are violated, he is entitled possession possession
to the same remedies as the owner of any
personal property may have
Who may acquire by prescription:
• The painter, sculptor or other artist shall a. person who are capable of acquiring
have dominion over the product of his art property by other legal modes
even before it is copyrighted. b. STATE
c. minors – through guardians of
• The scientist or technologist has the personally
ownership of his discovery or invention
even before it is patented. Against whom prescription run:
• Authors of literary and artistic works cannot 1. minors & incapacitated person who
prevent its broadcast as they have a moral have guardians
and educational value but they can demand 2. absentees who have administrators
that their names be mentioned; oppose any 3. persons living abroad who have
modification; receive an equitable administrators
remuneration, and others 4. juridical persons except the state
• A production by an employee in relation to with regard to property not
his work is his (e.g. professor’s literary patrimonial in character
work) 5. between spouses (husband & wife)
• Photos taken by a photographer for his 6. between parents & children (during
benefit and not as requested by a subject is minority/insanity)
his. 7. between guardian & ward (during
• Plans created by an architect for value for a guardianship)
client is owned by the client 8. between co-heirs/co-owners
9. between owner of property &
Dual interest or property right in letters person in possession of property in
sent by one to another person concept of holder

1. Intellectual Property Things subject to prescription: all things within

• Thoughts and ideas and their form of the commerce of men
expression contained in the letter a. private property
2. Material or Physical Thing b. patrimonial property of the state

Things not subject to prescription:

 1. public domain • possession not by mere tolerance
2. intransmissible rights (e.g. probate of a of owner but adverse to that of the
will) owner
3. movables possessed through a crime • claim that he owns the property
4. registered land
• PUBLIC, PEACEFUL & UNINTERRUPTED
Renunciation of prescription: • Must be known to the owner of the
• persons with capacity to alienate may thing
renounce prescription already obtained • Acquired & maintained w/o
but not the right to prescribe in the violence
future • Uninterrupted (no act of
• may be express or tacit deprivation by others) in the
• prescription is deemed to have been enjoyment of property
tacitly renounced; renunciation results
from the acts w/c imply abandonment Interruption
of right acquired a) Natural
• creditors & persons interested in -through any cause, possession ceases for more
making prescription effective may avail than 1 year
themselves notwithstanding express or -if 1 year of less – as if no interruption
tacit renunciation
b) Civil
-produced by judicial summons; except
Prescription of Ownership & Other Real • void for lack of legal solemnities
Rights • plaintiff desist from complaint/allow
proceedings to lapse
• possessor is absolved from complaint
Kinds of Acquisitive prescription
i. express or tacit renunciation
1. ordinary
ii. possession in wartime
2. extra-ordinary
• RULES IN COMPUTATION OF PERIOD:
Requisites for ordinary prescription:
a. Present possessor may tack his
1. possession in good faith
possession to that of his grantor or
2. just title
predecessor in interest
3. within time fixed by law
b. Present possessor presumed to be in
• 4 years for movables
continuous possession I intervening
• 8 years for immovables
time unless contrary is proved
4. in concept of an owner
c. First day excluded, last day included
5. public, peaceful, uninterrupted

Requisites for extra-ordinary prescription:

1. just title is proved
2. within time fixed by law
• 10 years for movables
• 30 years for immovables
3. in concept of an owner
4. public, peaceful, uninterrupted
• GOOD FAITH- Reasonable belief that person
who transferred thing is the owner & could
validly transmit ownership
-Must exist throughout the entire period
required for prescription
• JUST TITLE (TRUE & VALID) – must be
proved & never presumed
a) Titulo Colorado -
b) Titulo putativo -
• title must be one which would have
been sufficient to transfer
ownership if grantor had been the
owner
• through one of the modes of
transferring ownership but there is
vice/defect in capacity of grantor to
transmit ownership
• IN CONCEPT OF OWNER
Tacking Period
• there must be privity between previous &
present possessor
• possible when there is succession of rights
• if character of possession different:
predecessor in bad faith possessor in good
faith – use extraordinary prescription
Prescription of Actions
By lapse of time fixed by law
• 30 years
-action over immovables from time
possession is lost
• 10 years
-mortgage action
-upon written contract
-upon obligation created by law
-upon a judgement
• 8 years
-action to recover movables from time
possession is lost
• 6 years
-upon an oral contract
-upon a quasi-contract
• 5 years
 -actions where periods are not fixed by can take possession of the property
law anytime
• 4 years iv. Traditio Brevi Manu- “short hand”;
-upon injury to rights of plaintiff transferee already in possession of the
-upon a quasi-delict property but not as owner
• 1 year v. Traditio Constitum Possessorium-
-for forcible entry & detainer owner remains in possession but not as
-for defamation owner e.g. lease
vi. Quasi-Tradition- subject matter:
Rights not extinguished by prescription: property right; e.g. right to collect
1. demand right of way credit
2. abate public /private nuisance vii. Tradition by operation of law
3. declare contract void
4. recover property subject to expressed SUCCESSION-testate and intestate
trust DONATION
5. probate of a will
6. quiet title DONATION

Characteristics:
Donation Inter Vivos Donation Mortis Causa a) Unilateral – obligation imposed on the
Disposition and Disposition happens upon donor
acceptance to take effect the death of donor b) Consensual – perfected at time donor
during lifetime of donor knows of acceptance
and donee
Already pertains to the Even if there is a term of Requisites of Donation:
donee unless there is a effectivity and effectivity 1. Reduction in patrimony of donor
contrary intent is upon the death of the 2. Increase in patrimony of donee
donor, still entitled to 3. Intent to do act of liberality
fruits 4. Donor must be owner of property
Formalities required - Formalities required - donated
follow law on donations follow law on succession
and certain kinds of to be valid, and donation Requirements of a donation:
donations & law on must be in the form of a 1. subject matter – anything of value;
obligations and contracts will present property & not future, must
(suppletory) not impair legitime
Irrevocable at the Revocable ad mutuum 2. causa – anything to support a
instance of the donor; (exclusive will of donor) consideration: generosity, charity,
may be revoked only by goodwill, past service, debt
reasons provided by law 3. capacity to donate & dispose & accept
Revoked only for reasons donation
provided for by law 4. form – depends on value of donation
(except onerous
donations) Kinds of Donation according to
Effectivity:
TRADITION
Requisites: Acceptance
1. Pre-existence of right in estate of grantor a) acceptance must be made personally or
2. Just cause or title for the transmission thru agent
3. Intention- of both grantor and grantee b) donation may be made orally or in
4. Capacity- to transmit and to acquire writing
5. An act giving it in outward form, • movable:
physically, symbolically, or legally i. 5,000 & below – may be oral or
written, if oral it must be with
Legal Maxim: simultaneous delivery of
“Non nudis pactis, sed tranditione, dominia thing/document & acceptance need not
rerum transferentur” be in writing
(Not by mere agreement but by delivery, is ii. above 5,000 - must be written and
ownership transferred) accepted also in writing

Kinds of Tradition:

a. Real Tradition • immovable - must be in a public

b. Constructive Tradition instrument & acceptance must also be
i. Symbolic Delivery in a public instrument (in same
ii. Delivery by Public Instrument instrument or in other instrument)
iii. Traditio Longa Manu- “long hand”;
placed in the sight of vendee so that he
 • In case of doubt with regards to nature What may be given:
of donation: inter vivos • All or part of donor’s present property
provided he reserves sufficient means
Badges of mortis causa: for the support of the ff:
1. Title remains with donor (full or naked • himself
ownership)& conveyed only upon death • relatives who by law are entitled to his
2. Donor can revoked ad mutuum support
3. Transfer is void if transferor survives • legitimes shall not be impaired
transfer • when w/o reservation or if inofficious,
may be reduced on petition of persons
Kinds of donation INTER VIVOS affected
1) pure/simple • except: conditional donation & donation
2) remuneratory mortis causa
3) conditional • except: future property
4) onerous
Double Donations
Who may give donations Rule: Priority in time, priority in right
-All persons who may
contract and dispose 1. If movable – one who first take possession
of their in good faith
property 2. If immovable – one who recorded in registry
of property in good faith
Who may accept donations: - no inscription, one who first took
1. natural & juridical persons w/c are possession in good faith
not especially disqualified by law - in absence thereof, one who can present
oldest title
2. minors & other incapacitated
Revocation of Donations
a) by themselves - applies only to donation inter vivos
- if pure & simple - not applicable to onerous donations
donation
- if it does not require • With regards to donations made by person
written acceptance without children or descendants at time
b) by guardian, legal of donation:
representatives if needs 1. If donor should have legitimate,
written acceptance legitimated or illegitimate children
i.. natural guardian – not 2. If child came out to be alive & not dead
more than 50,000 contrary to belief of donor
ii. court appointed - more 3. If donor subsequently adopts a minor
than 50,000 child
iii. conceived & unborn child,
represented by person who would • Action for revocation based on failure to
have been guardian if already born comply with condition in case of conditional
donations
• Action for revocation by reason of
Who are disqualified to donate:
ingratitude
1. guardians & trustees with respect to
1. Donee commits offense against person,
property entrusted to them
honor, property of donor, spouse,
2. husband & wife
children under his parental authority
3. between paramours/persons guilty of
2. Donee imputes to donor any criminal
adultery
offense or any cat involving moral
4. between parties guilty of same criminal
turpitude even if he should prove it
offense
unless act/crime has been committed
5. made to public officers, wife, descendant,
against donee himself, spouse or
ascendant
children under his parental authority
3. Donee unduly refuses to give support
Other persons disqualified to receive
to donor when legally or morally bound
donations:
to give support to donor
1. priest who heard confession of donor during
his last illness
th
2. relatives of priest within 4 degree, church,
Exception to rule on intransmissibility of
order, community where priest belongs
action with regards to revocation due to
3. physician, nurse, etc. who took care of
ingratitude:
donor during his last illness
1. personal to the donor; general rule is
4. individuals, corporations, associations not
heir cannot institute if donor did not
permitted
institute
2. heirs can only file in the ff cases:
 a) donor has instituted
proceedings but dies before
bringing civil action for
revocation
b) donor already instituted civil
action but died, heirs can
substitute
c) donee killed donor or his
ingratitude caused the death of
the donor
d) donor died w/o having known
the ingratitude done
e) criminal action filed but abated
by death
3. can only make heirs of donee liable if
complaint was already filed when donee
died

Inofficious donations:
1. shall be reduced with regards to the
excess
2. action to reduce to be filed by heirs
who have right to legitimate at time of
donation
3. donees/creditors of deceased donor
cannot ask for reduction of donation
4. if there are 2 or more donation: recent
ones shall be suppressed
5. if 2 or more donation at same time –
treated equally & reduction is pro rata
but donor may impose preference
which must be expressly stated in
donation
Kinds of Donation
Pure/Simple Remuneratory Conditional Onerous
a) Consideration Liberality or merits of Valuable consideration Valuable
Merits of donee donee or burden/ charge is imposed but value is consideration given
of past services provided less than value of thing
they do not constitute donated
demandable debt

b) law to apply/ Law on donations Extent of burden Law on obligations

forms imposed>oblicon
Law on donations excess>donation
c) form of Required Required Required
acceptance
Required
d) reservation Applicable Applicable Not Applicable
w/regards to
personal support &
legitime
Applicable
e) warranty against
eviction & hidden
defects
In bad faith only In bad faith only In bad faith only Applies
f) revocation
Applicable Applicable Applicable Applicable

Modes of Extinguishment
BIRTH OF CHILD NON-FULFILLMENT OF INGRATITUDE
CONDITION
Ipso jure revocation, no need needs court action needs court action
for action., court
decision is merely
declaratory
Extent: portion which may Extent: whole portion but court Extent: Whole portion returned
impair legitime of heirs may rule partial revocation only
Property must be returned Property in excess Property to be returned
Alienation/mortgages done
prior to recording in Register of
Deeds:
If already sold or cannot be Alienations/mortgages imposed Prior ones are void; demand
returned – the value must be are void unless registered with value of property when
returned Register of Deeds alienated and can’t be
If mortgaged – donor may recovered or redeemed from
redeem the mortgage with 3rd persons
right to recover from donee
Fruits to be returned at filing of Fruits to be returned at filing of
action for revocation complainant
Prescription of action is 4 years Prescription is 4 years from Prescription is 1 year from
from birth, etc. non-fulfilment knowledge of fact and it was
possible for him to bring action
Action cannot be renounced Action cannot be renounced in
advance
Right of action transmitted to Right of action at instance of Heirs can’t file action
heirs donor but may be transmitted
to heirs
Action extends to donee’s heirs Action does not extend to
donee’s heirs
 LEASE (d) price fixed in relation to period of use
or enjoyment
General Characteristics of Every Lease (e) temporary
(1) Temporary duration
(2) Onerous (4) Lease distinguished from sale, usufrunct,
(3) Price is fixed according to contract commodatum
duration
In case of doubt-INTENTION of the parties should
Kinds of Lease be the guide in determining the contract entered
(1) Lease of things—movables and into.
immovables Lease Sale
• One of the parties binds himself to give Only the use or
to another the enjoyment or use of a enjoyment of the things
thing for a price certain, and for a period is transferred, and only
which may be definite or indefinite; for a determinate period
however, no lease for more than 99 years Plain redundancy to fix Price of the thing was
shall be valid or mention the price of fixed in the contract
the thing which is the
(2) Lease of work or contract of labor subject-matter thereof
• One of the parties binds himself to May be in money, or in Price must be in money
execute a piece of work or render to the fruits, or in some other or its equivalent
other some service for a price certain, useful thing or some
but the relation of principal and agent other prestation
does not exist between them.
• Contract of labor is a contract sui Lease Usufruct
generis, partaking of the nature of a Real right only by Always a real right
partnership in which capital and the exception: when
laborer have their respective shares. registered and for more
than 1 year
(3) Lease of Services
Constitutor/Lessor To constitute usufruct,
• There is no principle of representation
need not be an owner constitutor must be the
unlike in agency
e.g. sublessor, usufruct owner
• Price exists and agency is presumed to
Lessor places and Owner merely allows
be gratuitous
maintains lessee in the usufructuary to use
• The will of both parties is necessary for
enjoyment of the thing and enjoy the property
the extinguishment of the obligation
Use is limited to that Includes all possible
(i) written in the contract uses and manner of
Lease of Contract for a enjoyment of property
Service piece of work EXCEPT in distinction of
Manner of The price is paid In proportion to normal or abnormal
paying the in relation to the the work usufruct
price duration of the accomplished Must be definite, Maybe for an indefinite
labor or service otherwise court may fix period of time
Existence If the lessor If the lessor the same through the
of a workstation works by proper action
relation of under the himself, BOTH the lessee and the usufructuary USE and
dependence direction of the independently of ENJOY the thing.
between lessee, receiving the lessee, in
lessor and instructions from the manner he
Lease Commodatum
lessee him on the deems most
manner of adequate for the Consists in the Consists in the
rendering service execution of the cessation of the use of cessation of a thing to
or labor work a thing to another but another but this is
this is essentially essentially gratuitous
onerous
BOTH consist in the cession of the use of a thing
Lease of things to another
(1) Concept
(5) Price In Lease
Art. 1643. In the lease of things, one of the • Price may be in money, or in fruits, or in
parties binds himself to give to another the some other useful things.
enjoyment or use of a thing for a price certain, • May also be in some other prestation
and for a period which may be definite or • When it consists in fruits or products, it
indefinite. However, no lease for more than may be a determinate or fixed quantity
ninety-nine years shall be valid. or an aliquot part or percentage of the
produce of the tenement. It may be
(2) Consumable things cannot be the subject variable at different periods within the
matter of lease, Except duration of the lease.
(a) consumables only for display or • When the price consists of a certain
advertising. (lease ad pompam et percentage of the fruits obtained from
ostentationem) eg. Wedding cakes the thing, the contract is to be regarded
for display in Goldilocks, wine in a as a TENANCY CONTRACT, which is
showcase of a store generally regarded as an important
(b) goods are accessory to an industrial variation of the contract of lease. But is
establishment e.g., coal in a factory regarded as having the character more of
a partnership rather than a lease.
(3) Special characteristics of lease of things;
(a) essential purpose is to transmit the Amount of Rent
use and enjoyment of a thing • The price of the lease, or rent, must be
(b) consensual serious or substantial so as not to be so
(c) onerous insignificant to indicate an intention of
liberality on the part of the owner, and to
 receive such liberality on the part of the
party.
• If the parties are not able to fix the price,
or the basis for its determination, the
contract is ABSOLUTELY VOID. If the
lessee has entered upon the possession
and enjoyment of the thing, he will be
liable for the damages for the occupation
of the thing.
(6) Period of lease
• A lease of things during the lifetime of
one of the parties is considered valid.
• When the lease is for such time as the
lessor or lessee may please, it is
considered as on for life, ending upon the
death of the party who would have
terminated the contract.
• CANNOT be perpetual- there must always
be a period, which may be definite or
indefinite
(a) definite period-not more than 99
years. The Civil Code allows leases of
property for not more than 99 years,
so that a lease made for more than
99 years, shall be considered as
terminated after the end of 99 years.
After that period, it will be a lease for
an indefinite period.
(b) indefinite period
• If the period is indefinite, and the
thing leased is rural land, art.1682
shall apply; if it is urban land art.
1687 governs.
• If the thing is neither rural nor urbam
land, the provisions of the two
articles should be applied by analogy.
(i) rural land
Art. 1682. The lease of a piece of rural land,
when its duration has not been fixed, is
understood to have been for all the time
necessary for the gathering of the fruits which the
whole estate leased may yield in one year, or
which it may yield once, although two or more
years have to elapse for the purpose.
(ii) urban land
Art. 1687. If the period for the lease has not
been fixed, it is understood to be from year to
year, if the rent agreed upon is annual; from
month to month, if it is monthly; from week to
week, if the rent is weekly; and from day to day,
if the rent is to be paid daily. However, even
though a monthly rent is paid, and no period for
the lease has been set, the courts may fix a
longer term for the lease after the lessee has
occupied the premises for over one year. If the
rent is weekly, the courts may likewise determine
a longer period after the lessee has been in
possession for over six months. In case of daily
rent, the courts may also fix a longer period after
the lessee has stayed in the place for over one
month.
Capacity of Lessee
• As a rule, any person with the capacity to
enter into contracts can be a lessee.
• However, those who are disqualified to buy
certain things cannot lease such things. (
ART. 1646, 1490,1491)
Contract May Be Implied
• Where one has rendered services to another,
and these are accepted by the latter, in the
absence of proof that the service was
rendered gratuitously, an obligation results to
pay the reasonable worth of the service
rendered upon the implied contract of hiring.
• Although no fixed amount may have been
determined as the consideration for the
contract of hiring, the contract is nevertheless
valid if the amount of the implied
compensation can be determined by CUSTOM
or frequent use in the place where the service
was rendered.
Lease of Real Estate
• Every lease of real estate may be recorded in
the Registry of Property.
• Unless a lease is recorded, it shall not be
binding upon third persons.
• If the lease is to be recorded in the Registry
of Property, a proper authority to constitute
the same is necessary for some persons. Eg.
Husband to wife’s paraphernal property;
guardian to ward’s property
Purchase of Leased Land
• Where a purchaser of land at the time of the
purchase has FULL KNOWLEDGE of the fact
that the land has been leased to a third
person and is informed of the terms of such a
lease, he is BOUND to respect said lease,
although it is not recorded upon the
certificate of title, and it is not error to hold
the lease in effect became part of the
contract of sale.
(7) Assignment of lease
Art. 1649. The lessee cannot assign the lease
without the consent of the lessor, unless there is
a stipulation to the contrary.
• The lessee cannot assign the lease
without the consent of the lessor unless,
there is a stipulation to the contrary.
• It involves the transfer of rights and
obligations thus, the consent of the lessor
is necessary.
• However, a mere transfer of rights of the
lessee, and not of the contract itself,
would not require the lessor’s consent,
unless there is an express stipulation to
the contrary.
• The consent of the lessor would be
necessary for the validity of
mortgage of a lease.
(8) Sublease
Art. 1650. When in the contract of lease of
things there is no express prohibition, the lessee
may sublet the thing leased, in whole or in part,
without prejudice to his responsibility for the
performance of the contract toward the lessor.
Assignment of lease Sublease
There is a transfer to a Merely another contract
third person of the of lease, where the
rights and obligations original lessee becomes
arising from the lease in turn a lessor
contract
A sale of the lessee’s Even when the lessor
rights, and when the consents to the sub-
lessor gives his lease, the original lease
consent, the original contract subsists and is
lessee is released binding on the lessee
Succession by Juxtaposition of 2
particular title to one leases
contract of lease
• Effects
(1) When the lessee subleases the
property in spite of a prohibition to
do so, he violates the contract, and
the lessor can ask for recission and
damages, or damages only.
 • The violation takes place when the
lessee palces the thing at the
disposal of the sublesee.
• The lessee cannot justify the breach
of contract by proof that the
sublessee is solvent and of good
standing.
(2) When in the contract of lease, there
is no express prohibition, the lessee
may sublet the thing leased, in whole
or in part, without prejudice to his
responsibility for the performance of
the contract toward the lessor.
(a) House Rental Law (RA 877)—there is a
presumption that there would be no
sublease unless the lessor allows it
(b) obligation of sublessee to lessor
Art. 1651. Without prejudice to his obligation
toward the sublessor, the sublessee is bound to
the lessor for all acts which refer to the use and
preservation of the thing leased in the manner
stipulated between the lessor and the lessee.
(i) for rents
Art. 1652. The sublessee is subsidiarily liable to
the lessor for any rent due from the lessee.
However, the sublessee shall not be responsible
beyond the amount of rent due from him, in
accordance with the terms of the sublease, at the
time of the extrajudicial demand by the lessor.
Payments of rent in advance by the sublessee
shall be deemed not to have been made, so far as
the lessor's claim is concerned, unless said
payments were effected in virtue of the custom of
the place.
• Subsidiarily liable to the lessor for
any rent due from the lessee
• The sublessee shall not be
responsible beyond the amount of
rent due from him, in accordance
with the terms of the sublease, at the
time of the extrajudicial demand by
the lessor.
• Payment of rent in ADVANCE by the
sublessee shall be deemed not to
have been made, so far as the
lessor’s claim is concerned, UNLESS
said payments were effected by
virtue of the custom of the place.
(ii) for the use and preservation of the
thing leased
• Without prejudice to his obligation
toward the sublessor, the sublessee
is bound to the lessor for all the acts
which refer to the use and
preservation of the thing leased in
the manner stipulated between the
lessor and the lessee.
(9) Rights and obligations of lessor and
lessee
(a) obligation of lessor
Art. 1654. The lessor is obliged:
(1) To deliver the thing which is the object of
the contract in such a condition as to render it fit
for the use intended;
(2) To make on the same during the lease all
the necessary repairs in order to keep it suitable
for the use to which it has been devoted, unless
there is a stipulation to the contrary;
(3) To maintain the lessee in the peaceful and
adequate enjoyment of the lease for the entire
duration of the contract.
(i) Warranty of Lessor
• The provisions governing warranty
contained in the Title on Sales, shall be
applicable to the contract of lease.
• IN the cases where the return of the price
is required, REDUCTION shall be made in
proportion to the time during which the
lessee enjoyed the thing.
• Art. 1547, 1555, 1561, 1566, 1567, 1568,
1569
• A warranty is the obligation to repair or
correct the error whereunder the lessee
took over the property leased.
• BUT when the law declares that the lessor
must warrant the thing leased, it is not to
be understood that he must also indemnify
the lessee. Liability for the warranty is not
equivalent to liability in damages.
• The lessor is liable for the warranty of the
thing leased against any hidden defects it
may have, even when UNKNOWN to said
lessor.
• But this liability for warranty of the thing
leased does not amount to an obligation to
indemnify the tenant for damages, which is
only to be allowed, when there is proof
that the lessor acted with fraud and in bad
faith by concealing the defect and not
revealing it to the lessee.
(ii) Making of Repairs
• It implies the putting of something back into
the condition in which it was originally and
NOT an improvement in the condition thereof
by adding something new thereto
• Includes those that are necessary in order to
keep it in serviceable condition for the
purpose for which it was intended
• The obligation to make repairs must be
understood to apply to the restoration of
property which has deteriorates from use or
has been partially destroyed, without total
loss of identity.
• It is the duty of the lessee to give NOTICE of
the need of repairs to the lessor, and he shall
be liable for the damages which by his
neglect may be suffered by the owner.
• Although the lessor is bound to make the
necessary repairs, whether due to lapse of
time, or to the use stipulated in the leases
contract, or to fortuitous event, or to the
nature of the thing leased, he is NOT bound
to make repairs caused by the lessee himself.
Effect of Urgent Repairs
• During the lease it should become
necessary to make some urgent repairs
upon the thing leased, which cannot be
deferred until the termination of the
lease, the lessee is obliged to tolerate the
work.
• If the repair lasts for more than 40 days,
the rent shall be reduced in proportion ti
the time-including the 40 days- and the
part of the property of which the lessee
has been deprived.
• When the work is of such a nature that
the portion which the lessee and his
family need for their dwelling becomes
uninhabitable, he may rescind the
contract if the main purpose of the lease
is to provide a dwelling for the lessee.
• If after having been notified, the lessor
fails to make urgent repairs, the lessee,
to avoid imminent danger, may order the
repairs at the lessor’s expense.
Dangerous Conditions
• If a dwelling is in such a condition that its
use brings imminent and serious danger
to life or health, the lessee may
terminate the lease at once by notifying
the lessor, even if at the time the
contract was perfected the former knew
 of the dangerous condition or waived the
right to rescind the lease on account of
the condition.
Alteration
Art. 1661. The lessor cannot alter the form of
the thing leased in such a way as to impair the
use to which the thing is devoted under the terms
of the lease.
• To deliver the thing which is the object of
the contract in such a condition as to
render it fit for the use intended
• To make on the same thing, during the
lease, all the necessary repairs in order
to keep it suitable for the use to which it
has been devoted, unless there is a
stipulation to the contrary.
• Must be interpreted in the light of growth
of civilization and varying conditions.
(iii) Peaceful Possession
• It is the duty of the lessor to place the
lessee in legal possession of the premises
and to maintain him in the of the
property during the entire term of the
lease.
• To maintain the lessee on the peaceful
and adequate enjoyment of the lessee for
the entire duration of the contract.
• The non-fulfillment by the lessor of this
obligation releases the lessee from the
obligation to pay what is stipulated in the
contract from the date he ceased to
occupy the premises.
• The lessee is obliged to bring to the
knowledge of the proprietor, within the
shortest possible time, every usurpation
or untoward act which any third person
may have committed, or may be openly
preparing to carry out upon the thing
leased; He shall be liable for the
damages which, through his negligence,
may be suffered by the proprietor.
• The lessee is obliged to bring to the
knowledge of the proprietor, within the
shortest possible time, every usurpation
or untoward act which any third person
may have committed or may be openly
preparing to carry out upon the thing
leased. He shall be liable for the damages
which, through his negligence, any be
suffered by the proprietor
• Upon the ouster of the tenant by a third
person, the owner may commence
summary proceedings to recover
possession.
• Summary possessory action will lie
against him who disturbs another in his
possession whether acting in his own
behalf or under direction of another.
• The owner is entitled to defend his
property from any aggression in order to
prevent serious injury to his interest,
which would happen if this was left to the
tenant who has no interest and has no
real right in the property leased.
• Whatever may be the nature of the
disturbance occurring, as long as it may
affect the possession or the right of the
owner over the leased property, he is
entitled to institute the proper action and
it would be judicial absurdity to deny him
such a right and trust the defense of his
interests to the tenant whose obligations
and rights are entirely different.
(b) obligations of lessee (Art. 1657)
(i) Pay Rent
• to pay the price of the lease according to
the terms stipulated
• the obligation imposed upon the lessee to
pay rent in the manner agreed upon
arises only when the contract has been
actually carried into effect by the delivery
of the thing leased to the lessee for the
purpose stipulated in the contract.
Increase and Decrease of Rent
• Increase and decrease in the price of
lease shall be 10% per year, net of the
assessed violation of the property that is
the subject matter of the contract.
• Rentals shall be paid not on the basis of
the assessed valuation of the property on
the date of the contract, but on the basis
of the assessed valuation determined by
the government assessors and subject to
the natural fluctuations in the value of
property, according to the appraisement
thereof made for assessment of taxes.
Failure to Pay for Rent
• For failure to pay the rent will entitle the
lessor to evict the tenant, and recover
the unpaid rent, plus accrued legal
interest thereon at the rate of 6% per
year.
• A tenant evicted without due process of
law is entitled to recover damages but
such damages must be limited to the
simple trespass and cannot include
mesne profits.
Place and Time
• Payment of rent shall be made at the
domicile of the lessee; and with respect
to the time, the custom of the place shall
be followed.
ii. Use the Thing Leased as a Diligent
Father
• To use the thing leased as a diligent
father of a family, devoting it to the use
stipulated, and in the absence of
stipulation, to that which may be inferred
from the nature of the thing leased,
according to the custom of the place.
• The lessee shall return the thing leased,
upon the termination of the lease, just as
he received it, save what has been lost or
impaired by the lapse of time, or by the
ordinary wear and tear, from an
inevitable cause.
• The lessee is responsible for the
deterioration of the thing leased, unless
he proves that it took place without his
fault.
• The lessee is liable for any deterioration
caused by members of his household and
by his guest and visitors.
iii. Pay Expenses for the Deed of Lease (Art.
1662-1667)
c. Right of lessee to suspend payment
of rentals
Art. 1658. The lessee may suspend the payment
of the rent in case the lessor fails to make the
necessary repairs or to maintain the lessee in
peaceful and adequate enjoyment of the property
leased.
d. Right to ask for rescission
Liability for Breach of Duties
• If the lessor or lessee should not comply
with the obligation set forth in ART 1654
and 1657, the aggrieved party may ask
for:
(1) rescission of the contract;
(2) indemnification for damages;
 (3) only damages, allowing the
contract to remain in force
• The lessor cannot be held responsible for
damages from defects unknown to both
parties. But the lessor who fails in the
performance of his obligation must
indemnify the lessee for damages
occasioned thereby. The true measure of
damages in such a case is the ACTUAL
loss of the lessee arising from the breach
of contract on the part of the lessor.
Alternative Remedies
• Performance of the contract and
rescission of the lease are alternative
remedies
• In either case, the aggrieved party is
entitled to such damages as are
appropriate as to the particular remedy
chosen, but may not upon rescission of
the contract recover the damages that
are appropriate only where the
performance is demanded.
Rescission of the Contract
• Where the plaintiff alleges and submits
proof that the defendant is in possession
of a parcel of land as lessee, and the
latter has not paid the proper rents, he
may be compelled, by reason of his
inability to pay to:
(1) return the leased property;
(2) the lessor has a right to rescind
the contract;
(3) recover the unpaid rents
(4) eject the tenant from the land
• The execution of the deed shall be
equivalent to delivery but this is a
rebuttable presumption.
• If the thing leased has never been placed
in possession of the lessee, he has the
remedy of rescission.
Recovery of Damages
• A breach of rental contract entitles the
other party to demand indemnity for
damages.
Enforcement of Lease
• Where the lessor resumes possession of
his leased property for its protection after
the lessee has abandoned the same, the
lessor has still the right to hold the lessee
responsible until the termination of the
lease.
• The lack of power of administration to
lease the premises for a period beyond
his administration, may NOT be invoked
by the lessee who has dealt with him, but
only by the heirs or the new owners of
the premises.
(e) Lessor not obliged to answer for
mere act of trespass by a third
person
(10) Grounds for ejectment of lessee
by lessor
Termination of Lease
• The lease may terminate:
(1) by the expiration of the period;
(2) by the total loss of the thing;
(3) by the resolution of the right of the
lessor, such as when the lessor is
usufruct is terminated;
(4) by the will of the purchaser or
transferee of the things;
(5) by rescission due to nonperformance
of the obligation of one of the
parties.
• In order to retain the thing leased to the
lessor, it is not enough that the lessee
vacates it. It is necessary that he place
the thing at the disposal of the lessor, so
that the lessor can receive it without any
obstacle.
Fixed Period
• If the lease was made for a determinate
time, it ceases upon the day fixed,
without the need of a demand.
• If at the end of the contract the lessee
should continue enjoying the thing leased
for fifteen days with the acquiescence of
the lessor, and unless a notice to the
contrary by either party has previously
given, it is understood that there is an
implied new lease, not for the period of
the original contract but for the time
established in art. 1682(rural) and
1687(urban)
• But if the lessee continues enjoying the
thing after the expiration of the contract,
over the lessor’s objections, the lessee
shall be subject to the responsibilities of
a possessor in bad faith.
• When the parties have made no
agreement and the tenant remains in
possession with the acquiescence of the
lessor for 15 days after the expiration of
the term, the duration of the tenancy is
governed by article 1682 and 1687.
• It is no excuse to remain in possession
after the lease has expired, to say that
the lessor owed the lessee for the value
of some repairs done therein, when it
appears that in the contract of lease it
was stipulated that the lease should
retain a certain amount from the monthly
rent to reimburse himself of a liquidated
amount of money spent in those repairs,
and there is nothing in the record
showing that the lessee had not thus
reimbursed himself of the amount.
Option To Renew
• Where a lease is for a stated term with
the privilege to the lessee of extending
the term for another period, and contains
no provision for notice to the lessor of the
lessee’s election so to extend the term,
the lessee is not required to give express
notice to the lessor, before the expiration
of the first period, of his election to
extend the term.
Tacit Renewal
• When the tenant, with the acquiescence
of the landlord, holds over after the
expiration of the term, the tacit renewal
of the lease is not for the same term as
that of the original contract, but ofr the
same terms as in Art. 1682 (rural) and
1687 (urban) according to the character
of the property and the periods of
payment of the rent.
• There can be no renewal, if the lessor,
before the expiration of the term, gives
the lessee a notice to vacate.
• The fifteen-day period which brings about
a tacit renewal of the lease, is not
applicable to successive renewals.
• In the case of IMPLIED NEW LEASE, the
obligation contracted by a third person
for the security of the principal contract
shall lease with respect to the new lease.
Judicial Ejectment
• The lessor may judicially eject the lessee
for any of the following causes:
 (1) When the period agreed upon, or
that which is fixed for the duration of
leases under Art 1682 (rural) and
1687(urban), has expired;
(2) Lack of payment of the price
stipulated;
(3) Violation of any of the conditions
agreed upon in the contract;
(4) When the lessee devotes the thing
leased to any use or service not
stipulated which causes the
deterioration thereof, or if he does
not observe due diligence in its use.
• In ejectment cases where an appeal is
taken, a preliminary mandatory
injunction may be granted to restore the
lessor in possession by motion filed
within a period of 10 days from the time
the appeal is perfected.
• When the lease contract does not have a
definite period, but is terminable upon 30
days notice, the lease will terminate upon
the expiration of 30 days from the receipt
of notice, whether the termination
coincides with the rent day or not.
• The landlord has the right to increase the
rent after the expiration of the stipulated
period. And if no period is stipulated, in a
lease of urban property, notice by the
lessor of an increase in rent is equivalent
to notice of termination of the original
agreement.
• Default in the payment of rent authorizes
the lessor judicially to dispose the lessee.
(12) Right of purchaser of leased land
Art. 1676. The purchaser of a piece of land
which is under a lease that is not recorded in the
Registry of Property may terminate the lease,
save when there is a stipulation to the contrary in
the contract of sale, or when the purchaser knows
of the existence of the lease.
If the buyer makes use of this right, the
lessee may demand that he be allowed to gather
the fruits of the harvest which corresponds to the
current agricultural year and that the vendor
indemnifies him for damages suffered.
If the sale is fictitious, for the purpose of
extinguishing the lease, the supposed vendee
cannot make use of the right granted in the first
paragraph of this article. The sale is presumed to
be fictitious if at the time the supposed vendee
demands the termination of the lease, the sale is
not recorded in the Registry of Property.
Art. 1677. The purchaser in a sale with the right
of redemption cannot make use of the power to
eject the lessee until the end of the period for the
redemption.
Sale Of Leased Property
• The purchaser of a piece of land which is
under a lease that is not recorded in the
Registry of Property may terminate the
lease, save when there is a stipulation to
the contrary in the contract of sale, or
when the purchaser knows of the
existence of the lease.
• If the buyer makes use of this right, the
lessee may demand that he be allowed to
gather the fruits of the harvest which
corresponds to the current agricultural
year and that the vendor indemnify him
for damages suffered.
• If the sale is fictitious, for the purpose of
extinguishing the lease, the supposed
vendee cannot make use of the right to
terminate the lease. The sale is
presumed to be fictitious if at the time
the supposed vendee demands the
termination of the lease, the sale is not
recorded in the Registry of Deeds
• A contract of lease executed by the
vendor, unless recorded, ceases to have
effect when the property is sold, in the
absence of a contrary agreement.
• The purchaser of real property is bit
bound by an unrecorded lease thereof
which is not mentioned in the deed of
conveyance.
• The act of the new owner of giving notice
of an increase of rent, when the existing
lease is of an indefinite time, or when the
original period has expired, constitutes a
notice of termination of the original lease.
• If the tenant continues in possession,
without accepting the new terms
proposed, he becomes obliged to pay the
reasonable value of the use and
occupation of the premises, and may
furthermore be evicted from the
property.
Effect of Actual Notice
• A purchaser of land who has full
knowledge of the fact that the land has
been leased to a third person and is
informed of the terms of such lease at
the time of the purchase is bound to
respect the lease.
Right of Lessee to Fruits and Damages
• The law grants the purchaser of a leased
estate the right to terminate the lease,
reserving to the lessee only the right to
gather the fruits of the crop
corresponding to the current agricultural
year. The lessee, however, may recover
his damages from the vendor, his lessor.
• This right does not extend to the
gathering of fishes, which require 2 years
before they are of any commercial value.
Right to Repurchase
• The purchaser in a sale with the right to
redemption cannot make use of the
power to eject the lessee until the end of
the period of redemption.
• This rule is not applicable to a case where
the vendor, on disposing of real property
under right of repurchase, continues
nevertheless in possession thereby by
virtue of a special agreement, not as
owner, but as tenant of the purchaser by
the payment of rent. (constitutum
possesorium)
• The rule refers to the tenant or lessee
who has contracted with the vendor and
who has had no relation whatsoever with
the purchaser under an agreement of
redemption; such tenant is a third person
with respect to said vendor and
purchaser, because, if the vendor should
by redemption recover the property, the
lessee would again be entitled to the
enjoyment of the lease.
• But when the vendor remains in
possession as a tenant, and he fails to
pay the agreed rent, he may be evicted
by the vendee even before the period of
redemption has expired.
(13) Useful improvements in good
faith made by lessee.
Indemnity For Improvements
• If the lessee makes, in good faith, useful
improvements which are suitable to the
use for which the lease is intended,
without altering the form or substance of
the property leased, the lessor upon the
termination of the lease shall pay the
lessee one-half of the value of the
improvements at that time.
 • Should the lessor refuse to reimburse
said amount, the lessee may remove the
improvements, even though the principal
thing may suffer damages thereby. He
shall not, however, cause any more
impairment upon the property leased
than is necessary.
• With regard to ornamental expenses, the
lessee shall not be entitled to any
reimbursements, but he may remove the
them, provided no damage is caused to
the principal thing, and the lessor does
not choose to retain them by paying their
value at the time the lease is
extinguished.
(14) Special provisions for leases of
rural lands
• The purpose of the property is the
controlling factor in determining whether
land is rural or urban
• It is urban when the principal purpose is
dwelling.
• It is rural when the principal purpose is
exploitation of the soil.
SECTION 3
Special Provisions for Leases of Rural Lands
Art. 1680. The lessee shall have no right to a
reduction of the rent on account of the sterility of
the land leased, or by reason of the loss of fruits
due to ordinary fortuitous events; but he shall
have such right in case of the loss of more than
one-half of the fruits through extraordinary and
unforeseen fortuitous events, save always when
there is a specific stipulation to the contrary.
Extraordinary fortuitous events are understood to
be: fire, war, pestilence, unusual flood, locusts,
earthquake, or others which are uncommon, and
which the contracting parties could not have
reasonably foreseen.
Art. 1681. Neither does the lessee have any
right to a reduction of the rent if the fruits are
lost after they have been separated from their
stalk, root or trunk.
Art. 1682. The lease of a piece of rural land,
when its duration has not been fixed, is
understood to have been for all the time
necessary for the gathering of the fruits which the
whole estate leased may yield in one year, or
which it may yield once, although two or more
years have to elapse for the purpose.
Art. 1683. The outgoing lessee shall allow the
incoming lessee or the lessor the use of the
premises and other means necessary for the
preparatory labor for the following year; and,
reciprocally, the incoming lessee or the lessor is
under obligation to permit the outgoing lessee to
do whatever may be necessary for the gathering
or harvesting and utilization of the fruits, all in
accordance with the custom of the place.
Art. 1684. Land tenancy on shares shall be
governed by special laws, the stipulations of the
parties, the provisions on partnership and by the
customs of the place.
Art. 1685. The tenant on shares cannot be
ejected except in cases specified by law.
Reduction of Rents
• The lessee shall have no right to a
reduction of the rent on account of the
sterility of the land leased, or by reason
of the loss of the fruits due to fortuitous
events; but he shall have such right in
case of the loss of more than one-half of
the fruits through extraordinary and
unforeseen fortuitous events, unless,
there is a specific stipulation to the
contrary.
• Neither does the lessee have any right to
a reduction of the rent if the fruits are
lost after they have been separated from
their stalk, root or trunk.
Duration of Lease
• The lease of a piece of rural land, when
its duration has not been fixed, is
understood to have been made for all the
time necessary for the gathering of the
fruits which the whole estate leased may
yield in one year, or which it may yield
once, although two or more years may
have to elapse for the purpose.
• The duration of a lease can not be
affected by the more or less valuable
improvements voluntarily made by the
lessee upon the property
• The outgoing lessee shall allow the
incoming lessee or the lessor the use of
the premises and other means necessary
for the preparatory labor for the following
year
• Reciprocally, the incoming lessee or
lessor is under obligation to permit the
outgoing lessee to do whatever may be
necessary for the gathering or harvesting
and utilization of the fruits, all in
accordance with the custom of the place.
Land Tenancy
• Land tenancy on shares shall be
governed by the following:
(1) special laws,
(2) stipulations of the parties,
(3) provisions on partnership,
(4) custom of the place
• The tenant on shares cannot be ejected
except in cases specified by law (Art.
1685.)
• The ejectment of tenants of agricultural
lands is governed by special laws.
• Only two tenancy laws have been
passed:
(1) Rice Tenancy Act (Act. 4054 as
amended by RA 34)
(2) Sugar Tenancy Act (Act.4113)
• Tenancy questions on land which is
neither rice nor sugar land are not within
the purview of these tenancy laws.
(15) Special provisions for leases of
urban lands
SECTION 4
Special Provisions of the Lease of Urban
Lands
Art. 1686. In default of a special stipulation, the
custom of the place shall be observed with regard
to the kind of repairs on urban property for which
the lessor shall be liable. In case of doubt it is
understood that the repairs are chargeable
against him.
Art. 1687. If the period for the lease has not
been fixed, it is understood to be from year to
year, if the rent agreed upon is annual; from
month to month, if it is monthly; from week to
week, if the rent is weekly; and from day to day,
if the rent is to be paid daily. However, even
though a monthly rent is paid, and no period for
the lease has been set, the courts may fix a
longer term for the lease after the lessee has
occupied the premises for over one year. If the
rent is weekly, the courts may likewise determine
a longer period after the lessee has been in
possession for over six months. In case of daily
rent, the courts may also fix a longer period after
the lessee has stayed in the place for over one
month.
Art. 1688. When the lessor of a house, or part
thereof, used as a dwelling for a family, or when
the lessor of a store, or industrial establishment,
also leases the furniture, the lease of the latter
shall be deemed to be for the duration of the
lease of the premises.