Property reviewer

PROPERTY
PROPERTY  All things which are, or may be the object of appropriation  1. 2. 3. Requisites: (USA) utility substantivity or individuality appropriability a fixed place on a river, lake or coast; and 11. contracts for public works, and servitudes and other real rights over immovable property  Categories: (NIDA) 1. Real by nature – it cannot be carried from place to place (pars. 1 & 8, Art. 415, Civil Code) 2. Real by incorporation – attached to an immovable in a fixed manner to be an integral part thereof (pars. 1-3 Art. 415, Civil Code) 3. Real by destination – placed in a n immovable for the utility it gives to the activity carried thereon (pars. 4-7 and 9 Art. 415, Civil Code) 4. By analogy it is so classified by express provision of law (par. 10, Art. 415, Civil Code) B.MOVABLE PROPERTIES 1. those movables susceptible of appropriation which are not included in the preceding article; 2. real property which by any special provision of law is considered as personalty; 3. forces of nature which are brought under control of science; 4. in general, all things which can be transported from place to place without impairment of the real property to which they are fixed; 5. obligations and actions which have for their object movables or demandable sums; and 6. shares of stock of agricultural, commercial and industrial entities, although they have real estate. TESTS: a) By exclusion: movables are everything not included in Art. 415. b) By description: an object is movable if it possesses: 1) Ability to change location 2) Without substantial injury to the immovable to which it is attached. Important Doctrines/principles on immovable and movable properties: a) A Building is an immovable even if not erected by the owner of the land. The only criterion is union or incorporation with the soil. (Ladera vs. Hodges, 48 O.G. 4374). b) Parties to a contract may by agreement treat as

I. A. IMMOVABLE PROPERTIES 1. land, buildings, roads and constructions of all kinds adhered to the soil; 2. trees, plants and growing fruits, while they are attached to the land or form an integral part of an immovable; 3. everything attached to an immovable in a fixed manner in such a way that it cannot be separated therefrom without breaking the material or deterioration of the object; 4. statues, reliefs, paintings or other objects for use or ornamentation, placed in buildings or on lands by the owner of the immovable in such a manner that it reveals the intention to attach them permanently to the tenements; 5. machinery, receptacles, instruments or implements intended by the owner of the tenement for an industry or works which may be carried on in a building or on a piece of land, and which tend directly to meet the needs of the said industry or works; Requisites: a. made by owner b. industry or works carried on building or on land c. machines, etc must tend directly to meet needs of the industry or works d. machines, etc. must be essential and principal elements of the industry. 6. animal houses, pigeon-houses, 7. beehives, fishponds or breeding places of similar nature, in case their owner has placed or preserved them, with the intention to have them permanently attached to the land, and forming a permanent part of it; the animals in those places are included; 8. fertilizer actually used on a piece of land; 9. mines, quarries and slag dumps, while the matter thereof forms part of the bed, and waters either running or stagnant; 10. docks and structures which, though floating, are intended by their nature and object to remain at

personal properties that which by nature would be real property; and it is a familiar phenomenon to see things classes as real property for purposes of taxation which on general principle might be considered personal property (Standard Oil Co. vs. Jaranillo, 44 Phil 631). c) For purposes of attachment and execution and for purposes of the Chattel Mortgage Law, ungathered products have the nature of personal property. (Sibal vs. Valdez, 50 Phil, 512). d) The human body, whether alive or dead, is neither real nor personal property, for it is not even property at all, in that it generally cannot be appropriated. Under certain conditions, the body of a person or parts thereof may be subject matter of a transaction. (See RA No. 349, RA No. 7170, RA No. 7719). e) What is the effect of temporary separation of movables from the immovables to which they have been attached? 2 Views: 1) They continue to be regarded as immovables. 2) Fact of separation determines the condition of the objects thus recovering their condition as movables. * the latter view is supported by Paras and Tolentino who maintains that the failure of the codifiers to reproduce the provision of the partidas on the matter is an indication that they did not intend the rule to continue. f) A building that is to be sold or mortgaged and which would be immediately demolished may be considered personal property and the sale or mortgage thereof would be a sale of chattel, or a chattel mortgage respectively, for the true object of the contract would be the materials. II. A. PROPERTY OF PUBLIC DOMINION  Concept: It is not owned by the state but pertains to the state, which, as territorial sovereign exercises certain juridical prerogatives over such property. The ownership of such properties is in the social group, whether national, provincial or municipal.  Purpose: To serve the citizens and not the state as a juridical person.  Kinds: 1. Those intended for public use 2. Those which are not for public use but intended for public service 3. Those intended for the development of the national wealth  CHARACTERISTICS: 1. Outside the commerce of man 2. Inalienable. But when no longer needed for public use or service, may be declared patrimonial property. In Laurel vs. Garcia (187 SCRA 797), the Supreme Court held that “whether or not the Roppongi and related properties will eventually be sold is a policy determination where both the President and Congress must concur”.

3. Cannot be acquired by prescription 4. Not subject to attachment or execution 5. Cannot be burdened with easements NOTE: They cannot be registered under the land registration law and be the subject of a Torrens title. The character of public property is not affected by possession or even a Torrens Title in favor of private persons. (Palanca vs. Commonwealth, 69 Phil. 449). B. PATRIMONIAL PROPERTY OF THE STATE  Property of the State owned by it in its private or proprietary capacity.  the state has the same rights over this kind of property as a private individual in relation to his own private property C. PROPERTY OF LOCAL GOVERNMENT UNITS (LGUs) 1. Property for public use – consist of roads, streets, squares, fountains, public waters, promenades and public works for public service paid for by the LGUs 2. Patrimonial Property – all other property possessed by LGUs without prejudice to provisions of special laws NOTE: In the case of Province of Zamboanga Del Norte vs. City of Zamboanga, the Supreme Court categorically stated that “this court is not inclined to hold that municipal property held and devoted to public service is in the same category as ordinary private property. The classification of municipal property devoted for distinctly governmental purposes as public should prevail over the Civil Code in this particular case”. Here, the Law of Municipal Corporations was considered as a special law in the context of Article 424 of the NCC. D. PROPERTY OF PRIVATE OWNERSHIP  refers to all property belonging to private persons either individually or collectively and those belonging to the State and any of its political subdivisions which are patrimonial in nature  Muebles or furniture generally has for its principal object the furnishing or ornamenting of a building. Note that there are exceptions to this definition and are generally not included as furniture unless the law or the individual’s declaration include them. OWNERSHIP  The right to enjoy, dispose, and recover a thing without further limitations than those established by law or the will of the owner.  Rights included: 1. Right to enjoy: (PUFA) a) to possess (jus possidendi) b) to use (jus utendi) c) to the fruits (jus fruendi) and accessions d) to abuse (jus abutendi) 2. Right to dispose: (DATE) a) to destroy b) to alienate c) to transform

d) to encumber 3. Right to vindicate: (RP) a) pursuit b) recovery 4. Right to exclude: (ER) a) to enclose, fence and delimit b) to repel intrusions even with force  Characteristics: (EGEIP) 1. Ownership is Elastic – power/s may be reduced and thereafter automatically recovered upon the cessation of the limiting rights. 2. General – the right to make use of all the possibilities or utility of the thing owned, except those attached to other real rights existing thereon. 3. Exclusive – there can only be one ownership over a thing at a time. There may be two or more owners but ONLY ONE ownership. 4. Independence – It exists without necessity of any other right 5. Perpetuity – ownership lasts as long as the thing exists. It cannot be extinguished by non user but only by adverse possession.  Limitations: 1. General limitations imposed by the State for its benefit 2. Specific limitations imposed by law 3. Limitations imposed by the party transmitting the property either by contract or by will 4. Limitations imposed by the owner himself 5. Inherent limitations arising from conflict with other rights De Facto case of Eminent Domain  expropriation resulting from the actions of nature as in one case where land becomes part of one sea. The owner loses his property in favor of the state without any compensation. Principle of Self-Help  right of the owner or lawful possessor to exclude any person from the enjoyment and disposal of the property by the use of such force as may be necessary to repel or prevent actual or threatened unlawful physical invasion or usurpation of his property.  Requisites: (RONA) 1. reasonable force 2. owner or lawful possessor is the person who will exercise 3. no delay in one’s exercise 4. actual or threatened physical invasion or usurpation

LEGAL REMEDIES TO RECOVER POSSESSION OF ONE’S PROPERTY 1. Personal property: Replevin  REPLEVIN - remedy when the complaint prays for the recovery of the possession of personal property. 2. Real Property: a. ACCION INTERDICTAL  Nature: summary action to recover physical or material possession only. It consists of the summary actions of: 1. Forcible entry  Action for recovery of material possession of real property when a person originally in possession was deprived thereof by force, intimidation, strategy, threat or stealth 2. Unlawful Detainer  Action for recovery of possession of any land or building by landlord, vendor, vendee, or other person against whom the possession of the same was unlawfully withheld after the expiration or termination of the right to hold possession, by virtue of any contract. Forcible Entry Unlawful Detainer

As to when possession became unlawful Possession of the Possession is defendant is inceptively lawful unlawful from the but becomes illegal beginning as he from the time acquires defendant possession by unlawfully Force, withholds intimidation, possession after strategy, threat the expiration or or stealth termination of his right thereto. As to the necessity of demand No previous Demand is demand for the jurisdictional if the defendant to ground is nonvacate is payment of rentals necessary or failure to comply with the lease contract As to necessity of proof of prior physical possession Plaintiff must Plaintiff need not prove that he was have been in prior in prior physical physical possession possession of the premises until he was deprived thereof by the defendant As to when the 1 year period is counted from 1 year period is 1 year period is generally counted counted from the from the date of date of last actual entry on demand or last the land letter of demand

GENERAL RULE: A person cannot interfere with the
right of ownership of another. EXCEPTION: Doctrine of Incomplete Privilege or State of Necessity (Article 432)  Requisites: (ID) 1. Interference necessary 2. Damage to another much greater than damage to property

b. ACCION PUBLICIANA

 Nature: Ordinary civil proceeding to recover the better right of possession, except in cases of forcible entry and unlawful detainer. The involved is not possession de facto but possession de jure. c. ACCION REIVINDICATORIA  Nature: action to recover real property based on ownership. Here, the object is the recovery of the dominion over the property as owner.  Requisites: 1. Identity of the Property 2. Plaintiff’s title to the property Surface Rights  The owner of parcel of land is the owner of its surface and everything under it.  The economic utility which such space or subsoil offers to the owner of the surface sets the limit of the owner’s right to the same. HIDDEN TREASURE  Definition: any hidden or unknown deposit of money, jewelry or other precious objects, the lawful ownership of which does not appear. GENERAL RULE: It belongs to the owner of the land, building or other property on which it is found. EXCEPTIONS: The finder is entitled to ½ provided: 1. Discovery was made on the property of another, or of the state or any of its political subdivisions; 2. The finding was made by chance; 3. The finder is not a co-owner of the property where it is found; 4. The finder is not a trespasser; 5. The finder is not an agent of the landowner; 6. The finder is not married under the absolute community or the conjugal partnership system (otherwise his share belongs to the community). 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.  Classifications: 1. Accession Discreta – the right pertaining to the owner of a thing over everything produced thereby Kinds of Fruits a. natural fruits – spontaneous products of the soil and the young and other products of animals b. industrial fruits – those produced by lands of any kind through cultivation or labor c. civil fruits – rents of buildings, price of leases or lands and the amount of perpetual or life annuities or other similar income GENERAL RULE: To the owner belongs the natural, industrial, and civil fruits.

EXCEPTIONS: If the thing is: (PULA) a) in possession of a possessor in good faith; b) subject to a usufruct; c) leased or pledged; or d) in possession of an antichretic creditor 2. Accession Continua – the right pertaining to the owner of a thing over everything that is incorporated or attached thereto either naturally or artificially; by external forces. a. With respect to real property i. accession industrial  building, planting or sowing ii. accession natural  alluvium, avulsion, change of river course, and formation of islands b. With respect to personal property i. adjunction or conjuction ii. commixtion or confusion iii specification Basic Principles: (GONE BAD) 1. He who is in good faith may be held responsible but will not be penalized. 2. To the owner of a thing belongs the extension or increase of such thing. 3. Bad faith of one party neutralizes the bad faith of the other. 4. There should be no unjust enrichment at the expense of others. 5. Bad faith involves liability for damages. 6. Accessory follows the principal. 7. Accession exists only if the incorporation is such that separation would either seriously damage the thing or diminish its value. Right of Accession with respect to Immovable Property NOTE: See TABLES  Important Doctrines/Principles: a) Under Art 448, the landowner may not refuse both to pay for the building and to sell the land and instead seek to compel the owner of the building to remove the building from the land. He is entitled to such removal ONLY when, after having chosen to sell the land, the other party fails to pay for said land. (Ignacio vs. Hilario, 76 Phil. 605) b) Should no other arrangement be agreed upon, the owner of the land does not automatically become the owner of the improvement. ( Filipinas Colleges, Inc. vs. Timbang, 106 Phil. 247) c) Article 448 is not applicable where a person constructs a house on his own land and then sells the land, not the building. ( Coleongco vs. Regalado, 27 Phil 387) d) Article 448 does not apply to cases which are governed by other provisions of law such as coownership, usufruct, agency, lease. e) The provision on indemnity in Art. 448 may be applied by analogy considering that the primary intent of the law is to avoid a state of forced coownership especially where the parties in the

main agree that Articles 448 and 546 are applicable and indemnity for the improvements may be paid although they differ as to the basis of the indemnity. (Pecson vs. CA 244 SCRA 407). ACCESSION NATURAL 1. Alluvion or alluvium – increment which lands abutting rivers gradually receive as a result of the current of the waters.  Concept: it is the gradual deposit of sediment by the natural action of a current of fresh water (not sea water, the original identity of the deposit being lost.  Requisites: a) the deposit be gradual and imperceptible b) that it be made through the effects of the current of the water c) that the land where accretion takes place is adjacent to the banks of the river. NOTES:  The owners of the lands adjoining the banks of the river (riparian lands) shall own the accretion which they gradually receive.  Accretion operates ipso jure. However, the additional area is not covered by a Torrens title and the riparian owner must register the additional area.  Doctrines: a) Where the deposit is by sea water, it belongs to the state b) A gradual change of bed is also governed by the rules of alluvium (Canas vs. Tuason 5 Phil. 689) 2. Avulsion – the transfer of a known portion of land from one tenement to another by the force of the current. The portion of land must be such that it can be identified as coming from a definite tenement.  Requisites: a) The segregation and transfer must be caused by the current of a river, creek or torrent. b) The segregation and transfer must be sudden or abrupt c) The portion of land transported must be known or identified NOTES:  The owner must remove the transported portion within two years to retain ownership  In case of uprooted trees, the owner retains ownership if he makes a claim within 6 months. This refers only to uprooted trees and does not include trees which remain planted on a known portion of land carried by the force of the waters. In this latter case, the trees are regarded as accessions of the land through gradual changes in the course of adjoining stream. (Payatas vs. Tuazon)  Registration under the Torrens system does not protect the riparian owner against diminution of

the area of his land through gradual changes in the course of adjoining stream ( Payatas vs. Tuazon). Alluvium
1. gradual and imperceptible 2. soil cannot be identified 3. belongs to the owner of the property to which it is attached 4. merely an attach-ment

Avulsion
1. sudden or abrupt process 2. identifiable and verifiable 3. belongs to the owner from whose property it was detached 4. detachment followed by attachment

3. Change of course of rivers  Requisites: a) There must be a natural change in the course of the waters of the river b) The change must be abrupt or sudden NOTES:  Once the river bed has been abandoned, the owners of the invaded land become owners of the abandoned bed to the extent provided by this article. No positive act is needed on their part, as it is subject thereto ipso jure from the moment the mode of acquisition becomes evident.  It does not apply to cases where the river simply dries up because there are no persons whose lands are occupied by the waters of the river. 4. Formation of Islands  RULES ON OWNERSHIP a. If formed by the sea: 1) within territorial waters - State 2) outside territorial waters – to the first occupant b. If formed in lakes, or navigable or floatable rivers - State c. If formed on non-navigable or non-floatable rivers: 1) if nearer to one margin or bank – to the nearer reparian owner 2) if equidistant from both banks- to the reparian owners, by halves. NOTE: There is no accession when islands are formed by the branching of a river; the owner retains ownership of the isolated piece of land. Right of Accession with respect to movable property  Basic Principle: Accession exists only if separation is not feasible. Otherwise, separation may be demanded.  KINDS (accession continua as to movables): 1. Adjunction  the union of two things belonging to different owners, in such a manner that they cannot be separated without injury, thereby forming a single object.  Requisites a) the two things must belong to different owners

that they form a single object, or that their separation would impair their nature  Kinds: a. inclusion or engraftment b. soldadura or soldering c. escritura or writing d. pintura or painting e. tejido or weaving  Tests to determine principal: a. the “rule of importance and purpose b. that of greater value c. that of greater volume d. that of greater merits  Rules: a) Adjunction in good faith by either owner: : accessory follows the principal. if the accessory is much more precious than the principal, the owner of the accessory may demand the separation even if the principal suffers some injury b) Adjunction in bad faith by the owner of the principal  option of the owner of the accessory: i) to recover the value plus damages ii) to demand separation plus damages c) Adjunction in bad faith by the owner of the accessory i) he loses the accessory ii) he is liable for damages  When separation of things allowed: a. separation without injury b. accessory is more precious than the principal c. owner of the principal acted in bad faith 2. Mixture  Union of materials where the components lose their identity.  Kinds: a. Commixtion – mixture of solids b. Confusion – mixture of liquids  Rules: a. By the will of both owners or by accident: each owner acquires an interest in proportion to the value of his material b. By one owner in good faith: apply rule(a) c. By one owner in bad faith: i) he loses all his rights to his own material ii) he is liable for damages 3. Specification  It is the transformation of another’s material by the application of labor. The material becomes a thing of different kind.  Labor is the principal  Rules: a) Owner of the principal (worker) in good faith: i) maker acquires the new thing ii) he must indemnify the owner of the material : if the material is more valuable than the resulting thing, the owner of the material has the option:

b)

1) to acquire the work, indemnifying for the labor, or 2) to demand indemnity for the material b) owner of the principal (worker) in bad faith: the owner of the material has the option: i) to acquire the result without indemnity ii) to demand indemnity for the material plus damages c) Owner of the material in bad faith i) he loses the material ii) he is liable for damages Adjunction
1. Involves at least 2 things

Mixture
Involves at least 2 things

Specification May involve one thing (or more) but form is changed Accessory follows the principal The new object retains or preserves the nature of the original object.

2. Accessory follows the principal 3. Things joined retain their nature

Coownership results Things mixed or confused may either retain or lose their respective natures

QUIETING OF TITLE  It is an equitable action in rem to determine the condition of the ownership or the rights to immovable property, and remove doubts thereon.  Requisites: 1. plaintiff must have a legal or equitable title to, or interest in the real property which is the subject matter of the action; 2. there must be a cloud in such title; 3. such cloud must be due to some instrument, record, claim, encumbrance or proceeding which is apparently valid but is in truth invalid, ineffective, voidable or unenforceable, and is prejudicial to the plaintiff’s title; and 4. plaintiff must return to the defendant all benefits he may have received from the latter, or reimburse him for expenses that may have redounded to his benefit.  Prescriptive Period: 1. plaintiff in possession – imprescriptible 2. plaintiff not in possession – 10 (ordinary) or 30 years (extraordinary) Action to quiet title Action to remove a cloud on title

PURPOSE to put an end to to remove a troublesome possible foundation litigation in for a future hostile respect to the claim property involved NATURE OF THE ACTION remedial action Preventive action involving a present to prevent a future adverse claim cloud on the title

 The action to quiet title does not apply: a) to questions involving interpretation of documents b) to mere written or oral assertions of claims; EXCEPT: i) if made in a legal proceeding ii) if it is being asserted that the instrument or entry in plaintiff’s favor is not what it purports to be c) to boundary disputes d) to deeds by strangers to the title UNLESS purporting to convey the property of the plaintiff e) to instruments invalid on their face f) where the validity of the instrument involves pure questions of law Ruinous Buildings and Trees in Danger of Falling:  As to buildings – the owners is obliged to demolish or execute necessary work to prevent the building from falling. Should he fail to do so, the authorities shall order its demolition at the expense of the owner, or take measures to insure public safety.  The complainant must show that his property is adjacent to the dangerous construction, or must have to pass by necessity in the immediate vicinity.  The owner is responsible for damages to others due to lack of necessary repairs. However, if the damage is caused by defects in the construction, then the builder is responsible for the damages. CO-OWNERSHIP  Definition: the right of common dominion which two or more persons have in a spiritual part of a thing which is not physically divided.  Concept: co-ownership exists where the ownership of a thing physically undivided pertains to more than one person.

4. Occupation 5. Succession 6. Testamentary disposition or donation inter vivos Co-ownership
1. Can be created without the formalities of a contract 2. Has no juridical or legal personality 3. Purpose is collective enjoyment of the thing 4. Co-owner can dispose of his shares without the consent of the others with the transferee automatically becoming a co-owner 5. There is no mutual representation 6. Distribution of profits must be proportional to the respective interests of the co-owners 7. A co-ownership is not dissolved by the death or incapacity of a co-owner 8. no public instrument needed even if real property is the object of the co-ownership 9. An agreement to keep the thing undivided for a period of more than 10 years is void

Partnership
1. Can be created only by contract, express or implied 2. Has juridical personality distinct from the partners 3. Purpose is to obtain profits 4. A partner, unless authorized cannot dispose of his share and substitute another as a partner in his place 5. A partner can generally bind the partnership 6. Distribution of profits is subject to the stipulation of the parties 7. Death or incapacity dissolves the partnership 8. May be made in any form except when real property is contributed 9. There may be agreement as to a definite term without limit set by law

 Characteristics: a) plurality of subjects (the co-owners) b) there is a single object which is not materially divided c) there is no mutual representation by the coowners d) it exist for the common enjoyment of the coowners e) it has no distinct legal personality f) it is governed first of all by the contract of the parties; otherwise, by special legal provisions, and in default of such provisions, by the provisions of Title III on co-ownership  Sources: 1. Law 2. Contract 3. Chance

 Rules: 1. Rights of each co-owner as to the thing owned in common: USBRAP-LDP a) To use the thing owned in common  Limitations: i) use according to the purpose for which it was intended ii) interest of the co-ownership must not be prejudiced iii) other co-owners must not be prevented from using it according to their own rights b) To share in the benefits and charges in proportion to the interest of each. NOTE: Any stipulation to the contrary is void. c) To the benefits of prescription: prescription by one co-owner benefits all. d) Repairs and taxes: to compel the others to share in the expenses of preservation even if incurred without prior notice.

NOTE: The co-owner being compelled may exempt himself from the payment of taxes and expenses by renouncing his share equivalent to such taxes and expenses. The value of the property at the time of the renunciation will be the basis of the portion to be renounced. e) Alterations: to oppose alterations made without the consent of all, even if beneficial. NOTES:  Alteration is an act by virtue of which a coowner changes the thing from the state in which the others believe it should remain, or withdraws it from the use to which they desire it to be intended.  Expenses to improve or embellish are decided by the majority f) To protest against seriously prejudicial decisions of the majority g) Legal redemption: to be exercised within 30 days from written notice of sale of an undivided share of another co-owner to a stranger h) To defend the co-ownership’s interest in court i) To demand partition at any time  Partition is the division between 2 or more persons of real or personal property which they own in common so that each may enjoy and possess his sole estate to the exclusion of and without interference from others GENERAL RULE: Partition is demandable by any of the co-owners as a matter of right at any time. EXCEPTIONS: 1) When there is a stipulation against it; but not to exceed 10 years. 2) When the condition of indivision is imposed by the donor or testator; but not to exceed 20 years. 3) When the legal nature of the community prevents partition. 4) When partition would render the thing unserviceable. 5) When partition is prohibited by law 6) When another co-owner has possessed the property as exclusive owner for a period sufficient to acquire it by prescription. 2. The following questions are governed by the majority of interests: a) Management  Minority may appeal to the court against the majority’s decision if the same is seriously prejudicial. b) Enjoyment c) Improvement or embellishment 3. Rights as to the ideal share of each co-owner: a) Each has full ownership of his part and of his share of the fruits and benefits b) Right to substitute another person its enjoyment, EXCEPT when personal rights are involved c) Right to alienate, dispose or encumber

d) Right to renounce part of his interest to reimburse necessary expenses incurred by another co-owner e) Transactions entered into by each co-owner only affect his ideal share. EXTINGUISHMENT OF CO-OWNERSHIP (CALSTEP) 1. consolidation or merger in one co-owner 2. acquisitive prescription in favor of a third person or a co-owner who repudiates the co-ownership 3. loss or destruction of property co-owned 4. sale of property co-owned 5. termination of period agreed upon by the coowners 6. expropriation 7. judicial or extra-judicial partition CONDOMINIUM ACT (R.A. NO. 4726) CONDOMINIUM  an interest in real property consisting of a separate interest in a unit in a residential, industrial or commercial building and an undivided interest in common, directly or indirectly, in the land on which it is located and in other common areas of the building.  Any transfer or conveyance of a unit or an apartment, office or store or other space therein, shall include transfer or conveyance of the undivided interest in the common areas or, in a proper case, the membership or shareholdings in the condominium corporation: provided, however, that where the common areas in the condominium project are held by the owners of separate units as co-owners thereof, no condominium unit therein shall be conveyed or transferred to persons other than Filipino citizens or corporations at least 60% of the capital stock of which belong to Filipino citizens, except in cases of hereditary succession. GENERAL RULE: Common areas shall remain undivided, and there shall be no judicial partition thereof: EXCEPTIONS: 1. When the project has not been rebuilt or repaired substantially to its state prior to its damage or destruction 3 years after damage or destruction which rendered a material part thereof unfit for use; 2. When damage or destruction has rendered ½ or more of the units untenantable and that the condominium owners holding more than 30% interest in the common areas are opposed to restoration of the projects; 3. When the project has been in existence for more than 50 years, that it is obsolete and uneconomic, and the condominium owners holding in aggregate more than 50% interest in the common areas are opposed to restoration, remodeling or modernizing; 4. When the project or a material part thereof has been condemned or expropriated and the project is no longer viable, or that the condominium owners holding in aggregate more than 70% interest in the common areas are opposed to the

continuation of the condominium regime; 5. When conditions for partition by sale set forth in the declaration of restrictions duly registered have been met. WATERS  Classification a) Waters public per se (water is the principal; the bed follows the character of the water (See Arts. 502 [1] and 502 [2]) b) Waters public or private according to their bed (water is accessory to bed) c) Waters public by special provision POSSESSION  Concept: the material holding or control of a thing or the enjoyment of a right.  1. 2. 3.  1. 2. 3. Requisites: occupancy, apprehension, or taking deliberate intention to possess by virtue of ones own right

 Only personal knowledge of the flaw in one’s title

or mode of acquisition can make him a possessor in bad faith. It is not transmissible even to an heir.  Possession in good faith ceases from the moment defects in his title are made known to the possessor. This interruption of good faith may take place at the date of summons or that of the answer if the date of summons does not appear. However, there is a contrary view that the date of summons may be insufficient to convince the possessor that his title is defective. Presumptions in favor of possessor: of good faith of continuity of initial good faith of enjoyment in the same character in which possession was acquired until the contrary is proved 4. of non-interruption in favor of the present possessor 5. of continuous possession by the one who recovers possession of which he was wrongfully deprived 6. of extension of possession of real property to all movables contained therein  1. 2. 3.  Object of possession: All things and rights susceptible of being appropriated 1. 2. 3. 4. Res communes Property of public dominion Discontinuous servitudes Non-apparent servitudes

Degrees: possession without any title whatsoever possession with juridical title possession with just title sufficient to transfer ownership 4. possession with a title in fee simple  Classes: a) In one’s own name – where possessor claims the thing for himself b) In the name of another – for whom the thing is held by the possessor c) In the concept of owner – possessor of the thing or right , by his actions, is considered or is believed by other people as the owner, regardless of the good or bad faith of the possessor d) In the concept of holder – possessor holds it merely to keep or enjoy it, the ownership pertaining to another person; possessor acknowledges in another a superior right which he believes to be ownership. NOTE: None of these holders assert a claim of ownership in himself over the thing but they may be considered as possessors in the concept of owner, or under claim of ownership, with respect to the right they respectively exercise over the thing. e) In good faith – possessor is not aware that there is in his title or mode of acquisition a defect that invalidates it  Requisites: 1. Ostensible title or mode of acquisition 2. Vice or defect in the title 3. Possessor is ignorant of the vice or defect and must have an honest belief that the thing belongs to him NOTE: Gross and inexcusable ignorance of the law may not be the basis of good faith, but possible, excusable ignorance may be such basis. (Kasilag vs Roque, 69 PHIL 217) f) In bad faith – possessor is aware of the invalidating defect in his own title. NOTES:

Acquisition of possession:  Manner 1. Material occupancy of the thing 2. Subjection to the action of our will 3. Proper acts and legal formalities established for acquiring such right. Conflicts between several claimants: Possession cannot be recognized in two different personalities except in case of copossession when there is no conflict  Criteria in case of dispute: 1. present/actual possessor shall be preferred 2. if there are two possessors, the one longer in possession 3. if the dates of possession are the same, the one with a title 4. if all the above are equal, the fact of possession shall be judicially determined, and in the meantime, the thing shall be placed in judicial deposit Subject
a. Fruits gathered b. Cultivation Expenses of gathered

Possessor in good faith
a. to possessor b. not reimbursed to possessor

Possessor in bad faith
a. to owner b. reimbursed to possessor

fruits c. Fruits pending and charges d. Production expenses of pending fruits

c. prorated according to time d. indemnity pro rata to possessor (owner’s option) i. in money, or ii. by allowing full cultivation and gathering of all fruits e. reimbursed to possessor; retention

c. to owner

to time or nature

possessor

d. no indemnity

Possession of movables  Possession of movables in good faith is equivalent to title.  Requisites: a) possession is in good faith b) the owner has voluntarily parted with the possession of the thing c) possessor is in the concept of owner One who has lost or has been unlawfully deprived of it , may recover it from whomsoever possesses it, ordinarily, without reimbursement.  Doctrines: a) owner of the thing must prove (1) ownership of the thing and (2) loss or unlawful deprivation; or bad faith of the possessor b) Where the owner acts negligently or voluntarily parts with the thing owned, he cannot recover it from the possessor c) The owner may recover the movable in case of loss or involuntary deprivation; but must reimburse the price paid if possessor acquired the thing in good faith and at a public sale. Loss of possession: 1. By the will of the possessor a) Abandonment b) Transfer or conveyance 2. Against the will of the possessor a) Eminent domain b) Acquisitive prescription c) Judicial decree in favor of better right d) Possession of another for more than one year NOTE: this refers to possession de facto where the possessor loses the right to a summary action; but he may still bring action publiciana or reivindicatoria e) By reason of the object i. destruction or total loss of the things ii. withdrawal from commerce USUFRUCT  gives a right to enjoy the property of another with the obligation of preserving its form and substance, unless the title constituting it or the law otherwise provides.  Characteristics: a. Real right b. Of temporary duration c. To derive all advantages from the thing due to normal exploitation d. may be constituted on real or personal property, consumable or non-consumable, tangible or intangible, the ownership of which is vested in another e. transmissible Usufructuary is bound to preserve the form and substance of the thing in usufruct.

e. Necessary expenses

f.. Useful expenses

g. Ornamental expenses

h. Taxes and charges i. on capital ii. fruits on

f. reimbursed to possessor (owner’s option) i. initial cost ii. plus value  may remove if no reimbursement, and no damage is caused to the principal by the removal g. reimbursement at owner’s option: i. removal if no injury, or ii. cost without removal h. taxes and charges i. charged to owner ii. charged to possessor iii. prorated

e. reimbursed to possessor; no retention f. no reimbursem ent

g. owner’s option: i. removal, or ii. value at time of recovery h. taxes and charges i. charged to owner ii. charged to owner iii. to owner i. no reimbursement j. liable in every case

iii. charges i. Improvements no longer existing j. Liability for accidental loss or deteriorati on

i. no reimbursement j. only if acting with fraudulent intent or negligence, after summons

k. Improvements due

k. to owner or lawful possessor

k. owner lawful

to or

Abnormal usufruct whereby the law or the will of the parties may allow the modification of the substance of the thing. Usufruct
1. Always a real right 2. Person creating the usufruct should be the owner or his duly authorized agent 3. May be created by law, by contract, by will of the testator, or by prescription 4. As a rule, usufruct covers all the fruits and all the uses and benefits of the entire property 5. Involves a more or less passive owner who allows the usufructuary to enjoy the object given in usufruct 6. Pays for ordinary repairs and taxes on the fruits

Lease
1.Generally a personal right 2. Lessor may not be the owner

To remove improvements made by him if the same will not injure the property 2. As to the usufruct itself a. To mortgage the right of usufruct except parental usufruct b. To alienate the usufruct Obligations of the usufructuary: 1. Before exercising the usufruct: a. To make an inventory of the property b. To give a bond, EXCEPT 1) when no prejudice would result 2) when the usufruct is reserved by the donor or parents 3) in cases of caucion juratoria where the usufructuary, being unable to file the required bond or security, files a verified petition in the proper court asking for the delivery of the house and furniture necessary for himself and his family without any bond or security.  takes an oath to take care of the things and restore them  property cannot be alienated or encumbered or leased because this would mean that the usufructuary does not need it. NOTE: Effects of failure to post bond: 1. owner shall have the following options: a. receivership of realty, sale of movables, deposit of securities, or investment of money; OR b. retention of the property as administrator 2. the net product shall be delivered to the usufructuary 3. usufructuary cannot collect credits due or make investments of the capital without the consent of the owner or of the court until the bond is given. 2. During the usufruct: a. To take care of the property b. To replace with the young thereof animals that die or are lost in certain cases when the usufruct is constituted on flock or herd of livestock c. To make ordinary repairs d. To notify the owner of urgent extra-ordinary repairs e. To permit works and improvements by the naked owner not prejudicial to the usufruct f. To pay annual taxes and charges on the fruits g. To pay interest on taxes on capital paid by the naked owner h. To pay debts when the usufruct is constituted on the whole patrimony i. To secure the naked owner’s or court’s approval to collect credits in certain cases j. To notify the owner of any prejudicial act committed by third persons k. To pay for court expenses and costs regarding usufruct. 3. At the termination of the usufruct:

i.

3.Generally created by contract

4.Lease generally refers to uses only

5. Lease involves a more active owner or lessor who makes the lessee to enjoy 6.Lessee is not generally under obligation to undertake repairs or pay taxes

Special Usufructs a) of pension or income (Art 570) b) of property owned in common (Art. 582) c) of cattle (livestock) (Art. 591) d) on vineyards and woodlands (Art. 575-576) e) on a right of action (Art. 578) f) on mortgaged property (Art. 600) g) over the entire patrimony (Art. 598) h) over things which gradually deteriorate (Art. 573) i) of consumable property (Art 574) Rights of the Usufructuary 1. As to the thing and its fruits a. To receive and benefit from the fruits b. To enjoy any increase through accessions and servitudes c. To the half of the hidden treasure he accidentally finds d. To lease the thing, generally, for the same or shorter period as the usufruct. e. To improve the thing without altering its form and substance f. Right to set-off the improvements he may have made on the property against any damage to the same g. To retain the thing until he is reimbursed for advances for extraordinary expenses and taxes on the capital h. To collect reimbursements from the owner for indispensable extraordinary repairs, taxes on the capital he advanced, and damages caused to him.

a. To return the thing in usufruct to the owner unless there is a right of retention b. To pay legal interest on the amount spent by the owner for extraordinary repairs or taxes on the capital c. To indemnify the owner for any losses due to his negligence or of his transferees Extinguishment of Usufruct: (PT2DERM) 1. Prescription 2. Termination of right of the person constituting the usufruct 3. Total loss of the thing 4. Death of the usufructuary, unless contrary intention appears 5. Expiration of the period or fulfillment of the resolutory condition 6. Renunciation of the usufructuary 7. Merger of the usufruct and ownership in the same person EASEMENT OR SERVITUDE  Encumbrance imposed upon an immovable for the benefit of a community or one or more persons or for the benefit of another immovable belonging to a different owner.  Concept: it is a real right, constituted on the corporeal immovable property of another, by virtue of which the owner of the latter has to refrain from doing or must allow something to be done on his property, for the benefit of another person or tenement.  Characteristics: a) It is a real right but will affect third persons only when duly registered b) It is enjoyed over another immovable, never on one’s own property c) It involves two neighboring estates (in case of real easements) d) It is inseparable from the estate to which it is attached, and, therefore, cannot be alienated independently of the estate e) It is indivisible for it is not affected by the division of the estate between two or more persons f) It is a right limited by the needs of the dominant owner or estate, without possession g) It cannot consist in the doing of an act unless the act is accessory in relation to a real easement h) It is a limitation on the servient owner’s rights of ownership for the benefit of the dominant owner; and, therefore, it is not presumed  Classification: 1. As to its exercise: a) Continuous Easements – those the use of which is, or may be, incessant without the intervention of any act of man b) Discontinuous Easements – those which are used at intervals and depend upon the acts of man 2. As to the indication of their existence:

a) Apparent Easements – those which are made known and are continually kept in view by external signs that reveal the use and enjoyment of the same b) Non-apparent Easements – those which show no external indication of their existence 3. As to duty of servient owner a) Positive – the servient owner must allow something to be done in his property or do it himself. These are called servitudes of intrusion and or/service” b) Negative – the servient owner must refrain from doing something which he could lawfully do if the easement did not exist Easement
1. Real right, whether registered or not

Lease
Real right only when it is registered, or when its subject matter is real property and the duration exceeds one year May involve either real or personal Limited right to both the possession and use of another’s property

2. Imposed only on real property 3. There is a limited right to the use of real property of another but without the right of possession

Easement
1. Imposed only on real property 2. Limited to particular or specific use of the servient estate 3. A non-possessory right over an immovable 4. Not extinguished by the death of the dominant owner

Usufruct
May involve either real or personal property Includes all the uses and the fruits of the property Involves a right of possession in an immovable or immovable Extinguished by the death of the usufructuary

 Modes of Acquisition: (PDFAT) 1. by prescription of 10 years (continuous and apparent easements) 2. by deed of recognition 3. by final judgment 4. by apparent sign established by the owner of two adjoining estates 5. by title Dominant Owner  Rights 1. To exercise all the rights necessary for the use of the easement 2. To make on the servient estate all the works necessary for the use and preservation of the servitude 3. To renounce the easement if he desires to exempt himself from contribution to

necessary expenses 4. To ask for mandatory injunction to prevent impairment of his use of the easement  Obligations: 1. Cannot render the easement or render it more burdensome 2. Notify the servient owner of works necessary for the use and preservation of the servitude 3. Choose the most convenient time and manner in making the necessary works as to cause the least inconvenience to the servient owner 4. Contribute to the necessary expenses if there are several dominant estates Servient Owner  Rights: 1. To retain ownership and possession of the servient estate 2. To make use of the easement, unless there is agreement to the contrary 3. To change the place or manner of the easement, provided it be equally convenient  Obligations: 1. Cannot impair the use of the easement 2. Contribute to the necessary expenses in case he uses the easement, unless there is an agreement to the contrary Extinguishment of Easements: (REMAIN BREW) 1. Redemption agreed upon 2. Expiration of the term or fulfillment of the resolutory condition 3. Merger of ownership of the dominant and servient estate 4. Annulment of the title to the servitude 5. Permanent Impossibility to use the easement 6. Non-user for 10 years a. discontinuous: counted from the day they ceased to be used b. continuous: counted from the day an act adverse to the exercise takes place 7. Bad condition - when either or both estates fall into such a condition that the easement could not be used 8. Resolution of the right to create the servitude, i.e. in case of pacto de retro, when the property is redeemed 9. Expropriation of the servient estate 10. Waiver by the dominant owner EASEMENT FOR WATERING CATTLE  This is really a combined easement for drawing of water and right of way  Requisites: a) must be imposed for reasons of public use b) must be in favor of a town or village c) indemnity must be paid EASEMENT OF AQUEDUCT  The right arising from a forced easement by virtue of which the owner of an estate who desires to avail himself of water for the use of

said estate may make such waters pass through the intermediate estate with the obligation of indemnifying the owner of the same and also the owner of the estate to which the water may filter or flow.  Character: apparent and continuous  Requisites: a) dominant owner must prove that he has the capacity to dispose of the water b) that the water is sufficient for the intended use c) that the course is most convenient, and least onerous to the 3rd person d) payment of indemnity RIGHT OF WAY  The right granted to the owner of an estate which is surrounded by other estates belonging to other persons and without an adequate outlet to a public highway to demand that he be allowed a passageway throughout such neighboring estates after payment of proper indemnity  Requisites: 1. Claimant must be an owner of enclosed immovable or one with real right 2. There must be no adequate outlet to a public highway 3. Right of way must be absolutely necessary 4. Isolation must not be due to the claimant’s own act 5. Easement must be established at the point least prejudicial to the servient estate 6. Payment of proper indemnity  it is the needs of the dominant property which ultimately determine the width of the passage, and these needs may vary from time to time (Encarnacion vs. CA, 195 SCRA 72).  Special cause of extinction: the opening of a public road, or joining the dominant tenement to another with exit on a public road. NOTE: the extinction in NOT automatic. There must be a demand for extinction coupled with tender of indemnity by the servient owner. PARTY WALL  a common wall which separates 2 estates built by common agreement at the dividing line such that it occupies a portion of both estates on equal parts. Party Wall
1. Shares of parties cannot be physically segregated but they can be physically identified

Co-ownership
Shares of the coowners can be divided and separated physically but before such division, a co-owner cannot point to any definite portion of the property as belonging to him None of the coowners may use the community property for his

2. No limitation as to use of the party wall for exclusive benefit of a party

3. Owner may free himself from contributing to the cost of repairs and construction of a party wall by renouncing all his rights thereto

exclusive benefit Partial renunciation is allowed

through the estate of another and the power to prevent all constructions or work which would obstruct such view or make the same difficult. It necessarily includes easement of light Restrictions on openings in one’s own wall when contiguous (less than 2m) to another’s tenement: 1. it cannot exceed 1 foot sq. (30 cm each side) 2. openings must be at the height of the joists, near the ceiling (Choco vs. Santamaria, 21 Phil 132) 3. the abutting owner may: a. close the openings if the wall becomes a party wall b. block the light by building or erecting his own wall unless a servitude is acquired by title or prescription c. ask for the reduction of the opening to the proper size Restrictions as to views 1. Direct views: the distance of 2 METERS between the wall and the boundary must be observed 2. Oblique views: (walls perpendicular or at an angle to the boundary line) must not be less than 60cm from the boundary line to the nearest edge of the window NOTE: Any stipulation permitting lesser distances is void. Modes of acquisition 1. by title 2. by prescription a. positive – counted from the time of the opening of the window, if it is through a party wall b. negative – counted from the formal prohibition on the servient owner. NOTE: mere non-observance of distances prescribed by Art. 670 without formal prohibition, does not give rise to prescription VOLUNTARY EASEMENTS  Constituted by the will of the parties or of a testator.  The owner possessing capacity to encumber property may constitute voluntary servitude. If there are various owners, ALL must consent; but consent once given is not revocable  Voluntary easements are established in favor of: 1. predial servitudes: a. for the owner of the dominant estate b. for any other person having any juridical relation with the dominant estate, if the owner ratifies it. 2. personal servitudes: for anyone capacitated to accept. NUISANCE  Any act, omission, establishment, business or condition of property or anything else which: (ISAHO) 1. Injures/endangers the health or safety of others; 2. Shocks, defies or disregards decency or morality; 3. Annoys or offends the senses;

 Presumptions of existence (juris tantum): 1. in adjoining walls of buildings, up to common elevation 2. in dividing walls of gardens and yards (urban) 3. in dividing fences, walls and live hedges of rural tenements 4. in ditches or drains between tenements  Rebuttal of presumption: 1. title 2. by contrary proof: 3. by signs contrary to the existence of the servitude (Arts. 660 & 661) NOTE: if the signs are contradictory, they cancel each other  Rights of part owners: 1. to make use of the wall in proportion to their respective interests, resting buildings on it or inserting beams up to one-half of the wall’s thickness 2. to increase the height of the wall a. at his expense b. upon payment of proper indemnity c. to acquire half interest in any increase of thickness or height, paying a proportionate share in the cost of the work and of the land covered by the increase  Obligations of each part-owners: 1. to contribute proportionately to the repair and maintenance unless he renounces his part-ownership 2. if one part owner raises the height of the wall, he must: a. bear the cost of maintenance of the additions b. bear the increased expenses of preservation c. bear the cost of construction d. give additional land, if necessary, to thicken the wall LIGHT AND VIEW 1. Easement of Light (jus luminum) - right to admit light from the neighboring estate by virtue of the opening of a window or the making of certain openings.  Requisites: a. opening must not be greater than 30 centimeters squared, made on the ceiling or on the wall; and b. there must be an iron grating 2. Easement of view (jus prospectus) – the right to make openings or windows, to enjoy the view

4. Hinders or impairs the use of property; or 5. Obstructs or interferes with the free passage to any public highway or street, or body of water.  Classes: 1. Per se – nuisance at all times and under all circumstances regardless of location and surrounding. 2. Per accidens – nuisance by reason of circumstances, location, or surroundings. 3. Public – affects the community or a considerable number of persons. 4. Private – affects only a person or a small number of persons. Doctrine of Attractive Nuisance:  One who maintains on his premises dangerous instrumentalities or appliances of a character likely to attract children in play and who fails to exercise ordinary care to prevent children from playing therewith 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. Remedies against public nuisance: (PCE) 1. Prosecution under the RPC or local ordinance 2. Civil Action 3. Extrajudicial Abatement Remedies against private nuisance: (CE) 1. Civil Action 2. Extrajudicial Abatement Extrajudicial Abatement  Requisites: 1. nuisance must be specially injurious to the person affected; 2. no breach of peace or unnecessary injury must be committed; 3. prior demand; 4. prior demand has been rejected; 5. approval by district health officer and assistance of local police; and 6. value of destruction does not exceed P3,000. THEORY OF MODE AND TITLE  MODE is the specific cause which gives rise to them, as the result of the presence of a special condition of things, of the aptitude and intent of persons, and of compliance with the conditions established by law. This is the proximate cause of the acquisition.  TITLE is the juridical justification for the acquisition or a transfer of ownership or other real right. This is the remote cause of the acquisition.

DIFFERENT MODES (and TITLES) of ACQUIRING OWNERSHIP Modes of acquiring ownership Titles of acquiring ownership

A. Original Modes 1. Occupation 1. Condition of being without known owner 2. Work which 2. Creation, includes discovery or Intellectual invention creation B. Derivative modes 3. Law 3. Existence of required conditions 4. Tradition 4. Contract of the parties 5. Donation 5. Contract of the parties 6. Prescription 6. Possession in the concept of owner 7. Succession 7. Death

OCCUPATION  a mode of acquiring ownership by the seizure of things corporeal which have no owner, with the intention of acquiring them, and according the rules laid down by law.  Requisites: 1. there must be seizure of a thing 2. the thing seized must be corporeal personal property 3. the thing must be susceptible of appropriation by nature 4. the thing must be without an owner 5. there must be an intention to appropriate  Specific instances: 1. hunting and fishing 2. finding of movables which do not have an owner 3. finding of abandoned movables 4. finding of hidden treasure

5. catching of swarm of bees that has escaped from its owner, under certain conditions 6. catching of domesticated animals that have escaped from their owners, under certain conditions 7. catching of pigeons without fraud or artifice 8. transfer of fish to another breeding place without fraud or artifice TRADITION/DELIVERY  a mode of acquiring ownership as a consequence

of certain contracts , by virtue of which, the object is placed in the control and possession of the transferee, actually or constructively.  Kinds: 1. Real Tradition - actual delivery 2. Constructive Tradition a. traditio symbolica – parties make use of a token or symbol to represent the thing delivered b. traditio longa manu – by mere consent of the parties if the thing sold cannot be transferred to the possession of the vendee at the time of the sale c. traditio brevi manu – when the vendee already has possession of the thing sold by virtue of another title d. traditio constitutum possessorium – when the vendor continues in possession of the thing sold not as owner but in some other capacity 3. Quasi-tradition – exercise of the right of the grantee with the consent of the grantor 4. Tradicion por ministerio de la ley – delivery by operation of law 6. Tradition by public instrument  Requisites: 1. right transmitted should have previously existed in the patrimony of the grantor 2. transmission should be by just title 3. grantor and grantee should have intention and capacity to transmit and acquire 4. transmission should be manifested by some act which should be physical, symbolical or legal DONATION  an act of liberality whereby a person disposes gratuitously of a thing or right in favor of another who accepts it  Requisites: CIDA 1. donor must have capacity to make the donation 2. he must have donative intent (animus donandi) 3. there must be delivery 4. donee must accept or consent to the donation  Essential features/elements of a true donation: a) Alienation of property by the donor during his lifetime, which is accepted b) Irrevocability by the donor c) Intention to benefit the donee (animus donandi) d) Consequent impoverishment of the donor (diminution of his assets)  Classification: 1. As to effectivity: a. inter vivos b. mortis causa

c. 2. As a. b. c. 3. As a. b.

propter nuptias to perfection/extinguishment: pure with a condition with a term to consideration: simple - gratuitous remuneratory or compensatory – made on account of donee’s merits c. modal – imposes upon the donee a burden which is less than the value of the thing donated

Donation Inter Vivos
1. Takes effect independently of the donor’s death 2. Title conveyed to the donee before the donor’s death 3. Valid if donor survives donee 4. Generally irrevocable during donor’s lifetime 5. Must comply with the formalities required by Arts. 748 and 749 of the Code

Donation Mortis Causa
Takes effect upon the death of the donor Title conveyed upon donor’s death Void if donor survives donee Always revocable Must comply with the formalities required by law for the execution Of wills

Donations prohibited by law: 1. Made by persons guilty of adultery or concubinage at the time of donation; 2. Made between persons found guilty of the same criminal offense in consideration thereof; 3. Made to a public officer or his/her spouse, descendants or ascendants in consideration of his/her office; 4. Made to the priest who heard the confession of the donor during the latter’s last illness, or the minister of the gospel who extended spiritual aid to him during the same period; 5. Made to relatives of such priest, etc. within the 4th degree, or to the church to which such priest belongs; 6. Made by a ward to the guardian before the approval of accounts; 7. Made to an attesting witness to the execution of donation, if there is any, or to the spouse, parents, or children, or anyone claiming under them. 8. Made to a physician, surgeon, nurse, health officer or druggist who took care of the donor during his/her last illness; 9. Made by individuals, associations or corporations not permitted by law to make donations; and 10. Made by spouses to each other during the marriage or to persons of whom the other spouse is a presumptive heir. Forms of donations:

1. Donations of movable property: a. With simultaneous delivery of property donated: i.it may be oral/written – P5,000 or less; ii.if value exceeds P5,000 – written in public or private document b. Without simultaneous delivery:  the donation and acceptance must be written in a public or private instrument, regardless of value 2. Donation of immovable property: a. must be in a public instrument specifying the property donated and the burdens assumed by donee, regardless of value b. acceptance must be either: i. in the same instrument; or ii. in another public instrument, notified to the donor in authentic form, and noted in both deeds NOTE: Expression of gratitude to the donor without express acceptance was held a sufficient acceptance (Cuevas vs Cuevas) LIMITATIONS ON DONATION OF PROPERTY 1. Future property cannot be donated. 2. Present property that can be donated: a) if the donor has forced heirs: he cannot give or receive by donation more than he can give of receive by will b) if the donor has no forced heirs: donation may include all present property provided he reserves in full ownership or in usufruct: 1) the amount necessary to support him, and 2) those relatives entitled to support from him 3) property sufficient to pay the donor’s debt contracted prior to the donation. 3. Donation should not prejudice creditors 4. Donee must reserve sufficient means for his support and for his relatives which are entitled to be supported by him. EFFECTS OF DONATION 1. donee may demand the delivery of the thing donated 2. donee is subrogated to the rights of the donor in the property 3. in donations propter nuptias, the donor must release the property from encumbrances, except servitudes 4. donor’s warranty exists if a. expressed b. donation is propter nuptias c. donation is onerous d. donor is in bad faith 5. when the donation is made to several donees jointly, they are entitled to equal portions, without accretion, unless the contrary is stipulated Payment of the donor’s debt by the donee 1. If there is express stipulation: the donee is to pay

only debts contracted before the donation, if not otherwise specified; but the donee answers only up to the value of the property donated, if no stipulation is made to the contrary 2. If there is no stipulation: the donee is answerable for the debts of the donor only in case of fraud against creditors. ACTS OF INGRATITUDE 1. If the donee should commit some offense against the person, honor or property of the donor, or of his wife or children under his parental authority 2. If the donee imputes to the donor any criminal offense, or any act involving moral turpitude, even though he should prove it, unless the crime or act has been committed against the donee himself, his wife or children under his authority 3. Refusal to support the donor PRESCRIPTION  Kinds: 1. Acquisitive prescription - one acquires ownership and other real rights through the lapse of time in the manner and under the conditions laid down by law. a. Ordinary acquisitive prescription: requires possession of things in good faith and with just title for the time fixed by law b. Extraordinary acquisitive prescription: acquisition of ownership and other real rights without need of title or of good faith or any other condition  Requisites: 1) capacity to acquire by prescription 2) a thing capable of acquisition by prescription 3) possession of thing under certain conditions 4) lapse of time provided by law 2. Extinctive Prescription – rights and actions are lost through the lapse of time in the manner and under the conditions laid down by law. Acquisitive prescription
1. relationship between the occupant and the land in terms of possession is capable of producing legal consequences; it is the possessor who is the actor 2. requires possession by a claimant who is not the owner 3. applicable to ownership and other real rights 4. vests ownership or other real rights in the occupant
5. results in the

Extinctive prescription
1. one does not look to the act of the possessor but to the neglect of the owner

2. requires inaction of the owner or neglect of one with a right to bring his action 3. applies to all kinds of rights, whether real or personal 4. produces the extinction of rights or bars a right of action 5. results in the loss

acquisition of ownership or other real rights in a person as well as the loss of said ownership or real rights in another

of a real or personal right, or bars the cause of action to enforce said right 6. should be affirmatively pleaded and proved to bar the action or claim of the adverse party

continued to be in possession during the intervening time, unless there is proof to the contrary 3. The first day shall be excluded and the last day included Persons Against Whom Prescription runs: 1. Minors and other incapacitated persons who have parents, guardians or other legal representatives 2. Absentees who have administrators 3. Persons living abroad who have managers or administrators 4. Juridical persons, except the state and its subdivision Persons against whom prescription does NOT run: 1. Between husband and wife, even though there be separation of property agreed upon in the marriage settlements or by judicial decree. 2. Between parents and children, during the minority or insanity of the latter 3. Between guardian and ward during the continuance of the guardianship

6. can be proven under the general issue without its being affirmatively pleaded

Period of Prescription Movables
4 years 8 years

Immovables

1. Good Faith 10 years 2. Bad Faith 30 years

Rules on Computation of Period: 1. The present possessor may complete the period necessary for prescription by tacking his possession to that of his grantor or predecessor 2. It is presumed that the present possessor who was also the possessor at a previous time, has Prescriptive period
a) Imprescriptible

Actions
 to declare an inexistent or void contract  to quiet title  to demand a right of way  to bring an action for abatement of public nuisance  to demand partition in coownership  to enforce a trust  probate of a will  to recover possession of a registered land under the Land Registration Act by the registered owner

Prescriptive period
g) 4 YEARS

Actions
 action to revoke donations due to non-compliance of conditions  action to rescind partition of deceased’s estate on account of lesion  action to claim rescission of contracts  annulment of contracts for vice of consent  actions upon a quasi-delict  action to revoke or reduce donations based on birth, appearance or adoption of a child  actions upon an injury to the rights of the plaintiff (not arising from contract)

b) 30 YEARS

 real actions over immovables (but not foreclosure) without prejudice to the acquisition of ownership or real rights by acquisitive prescription

h) 3 YEARS

 actions under the eight hour labor law  actions to recover losses in gambling money claims as a consequence of employeremployee relationship  action to impugn legitimacy of a child if the husband or his heirs reside abroad  action to impugn legitimacy of a child if the husband or his heirs are not residing in the city or municipality of birth

c) 10 YEARS

 actions upon a written contract  actions upon an obligation created by law  actions upon a judgment from the time judgment becomes final  actions among co-heirs to enforce warranty against eviction in partition  Mortgage action

i) 2 YEARS

d) 8 YEARS

 action to

recover movables without prejudice to acquisition of title for a shorter period or to the possessors title under Arts. 559, 1505 and 1133

j) 1 YEAR

 action to impugn legitimacy of a child if the husband or his heirs are residing in the city or municipality of birth  forcible entry and unlawful detainer  Defamation  Revocation of donation on the ground of ingratitude  Rescission or for damages if immovable is sold with an apparent burdens or servitude

 action for warranty of solvency in assignment of credits  actions for loss or damage to goods under the COGSA e) 6 YEARS  actions upon an oral (verbal) contract  actions upon a quasi-contract  action for annulment of marriages (except on the ground of insanity) and for legal separation counted from the occurrence of the cause  actions against the co-heirs for warranty of solvency the debtor in credits assigned in partition  action for the declaration of the incapacity of an heir (devisee or legatee) to succeed)  all other actions whose periods are not fixed by law, counted from the time the right of action accrues k) 6 MONTHS  actions for warranty against hidden defects or encumbrances over the thing sold  redhibitory action based on faults or defects of animals

f) 5 YEARS

l) 40 DAYS