Classification of Property
Classification of Property
Classification of Property
It is considered as a property of the State in what 1. The right to enjoy the property (Art. 428,
may be called the private sense. It is said that over par. 1, NCC);
this kind of property the State has the same rights 2. the right to dispose the property (Art. 428,
and has the same power of disposition as private par. 1, NCC);
individuals subject, of course, to existing rules and 3. the right to recover the property from any
regulations. holder or possessor (Art. 428, par. 2, NCC);
4. the right to exclude any person from
Conversion: From Public Dominion to Patrimonial enjoyment and disposal of the property (Art.
Property Property of public dominion, when no 429, NCC);
longer intended for public use or for public service, 5. the right to enclose or fence the land or
shall form part of the patrimonial property of the tenement (Art. 430, NCC);
State. 6. the right to demand indemnity for damages
suffered due to lawful interference by a third
In Ignacio v. Director of Lands case, however, the person to avert an imminent danger (Art.
Supreme Court ruled that a property continues to be 432, NCC);
part of the public domain, not available for private 7. the right to just compensation in case of
appropriation or ownership until there is a formal eminent domain (Art. 435, NCC);
declaration on the part of the government, either 8. the right to construct any works or make any
through the Executive department or the plantations and excavations on the surface or
Legislative, to the effect that the property is no subsurface of the land (Art. 437, NCC);
9. the right to hidden treasure found in the First, it is possible that neither the plaintiff nor the
owner’s property (Art. 438, NCC); and defendant is the true owner of the property in
10. the right to accessions. (Art. 440, NCC) dispute; and
Attributes of Ownership Second, the burden of proof lies on the party who
substantially asserts the affirmative of an issue for
1. Jus Possidendi – the right to possess he who relies upon the existence of a fact should be
2. Jus Fruendi – the right to enjoy the fruits called upon to prove that fact.
(natural, industrial, and civil)
3. Jus Utendi – the right to use and enjoy Ownership Is A Real Right
4. Jus Acessiones – the right to accessories 5. Jus
Abutendi – the right to abuse or to consume Personal right or jus in personam is one which
6. Jus Disponendi – the right to dispose imposes an obligation on a definite person.
Actions for Recovery of Possession A real right or jus in re, on the other hand, has
(a) accion interdictal; been defined as the power belonging to a person
Accion interdictal comprises two distinct over a specific thing without a definite passive
causes of action, namely, forcible entry subject against whom such right may be personally
(detentacion) and unlawful detainer enforced.
(desahuico). Forcible entry is a summary
action to recover material or physical This right of the owner is so important that the law
possession of real property when the person deems it appropriate to allow him to “use such force
who originally held it was deprived of as may be reasonably necessary to repel or prevent
possession by “force, intimidation, threat, an actual or threatened unlawful physical invasion
strategy, or stealth.” An action for unlawful or usurpation of his property.” The employment of
detainer, on the other hand, may be fi led such reasonable force in defense of his property is
when possession by “a lessor, vendor, what is known in juridical science as the doctrine
vendee, or other person against whom the of self-help.
possession of any land or building is
unlawfully withheld after the expiration or Doctrine of Self-help vs. State of Necessity
termination of the right to hold possession,
by virtue of any contract, express or implied The doctrine of self-help is invoked by the owner or
lawful possessor in protection of his right to prevent
(b) accion publiciana; and other persons from interfering with the property.
An accion publiciana is an action for The state of necessity, on the other hand, is availed
recovery of the right to possess and is a of by another person against someone else’s
plenary action38 in an ordinary civil property for the purpose of averting an imminent
proceeding to determine the better right of danger to himself or to another person or to their
possession of realty independent of the title property.
or ownership of the property
Right to Sub-surface and Airspace It is a well-
AI v AP is that the issue in the former is known principle that the owner of piece of land has
limited to the question of possession de rights not only to its surface but also to everything
facto while the issue in the latter is the underneath and the airspace above it up to a
determination of the better right of reasonable height.
possession or possession de jure.
Right to the Sub-Surface or Subsoil
(c) accion reivindicatoria In Republic of the Philippines v. Court of
an action whereby plaintiff alleges Appeals,165 this principle was applied to show that
ownership over a parcel of land and seeks rights over lands are indivisible and, consequently,
recovery of its full possession require a definitive and categorical classification.
It is different from accion publiciana where Extent of Rights Over the Sub-Surface
plaintiff merely alleges proof of a better
right to possess without claim of title. Landowners’ right extends to such height or depth
where it is possible for them to obtain some benefit
Requisites of Accion Reivindicatoria or enjoyment, and it is extinguished beyond such
limit as there would be no more interest protected
First, the identity of the land claimed; and by law.
Second, his title thereto.
Right to Hidden Treasure
“hidden treasure” on the sub-surface also belongs to After an audited report of expenses has been
him. evaluated and approved by the oversight committee,
the sharing of the net proceeds shall be as follows:
The same rule applies if the “hidden treasure” is
located on a building or other property — the same (1) for treasure hunting within public lands –
belong to the owner of the building or other 75% to the Government and 25% to the
property on which it is found. However, when the permit holder;
discovery is made by a stranger who is not a (2) for treasure hunting in private lands – 30%
trespasser and the discovery is by chance, the to the Government and 70% to be shared by
finder is entitled to one-half of the treasure. If the the permit holder and the landowner; and
finder is a trespasser, he shall not be entitled to (3) for shipwreck/sunken vessel recovery – 50%
any share of the treasure. to the Government and 50% to the permit
holder.
Concept of “Hidden Treasure” For legal purposes,
“hidden treasure” is understood to be any hidden Right to the Airspace
and unknown deposit of money, jewelry, or other
precious objects, the lawful ownership of which While the airspace is a public highway, it is obvious
does not appear. that if the landowner is to have full enjoyment of
the land, he must have exclusive control of the
The same rule shall apply even if the land belongs “immediate reaches of the enveloping atmosphere.”
to the State. However, if the thing found be of
interest to science or the Arts, the State may
acquire them by paying just price, whether the
finder of the treasure is the owner of the property on RIGHT OF ACCESSION
which it is found or a third person.
Accession
Requisites:
(1) the deposit of money, jewelry or other precious The ownership of property gives the right by
objects must be hidden or unknown; and accession to everything which is produced thereby,
(2) the lawful ownership of which must not appear. or which is incorporated or attached thereto, either
naturally or artificially. Accession, therefore, is the
Under the ejusdem generis rule, the term “other right of an owner of a thing to the products of said
precious objects” should be understood as being thing as well as to whatever is inseparably attached
similar to money or jewelry. Hence, the concept thereto as an accessory.
does not include natural wealth, i.e., minerals and
petroleum. See Regalian Doctrine. It is not, therefore, a mode of acquiring ownership
but a right included in ownership.
Rule on “Treasure Hunting”
The seven modes of acquiring ownership
The provisions of Article 438 of the New Civil (occupation, intellectual creation, law, donation,
Code on “hidden treasure” shall apply only if the succession, tradition and prescription)
discovery of the treasure is by chance.
Kinds of Accession
If the search for the hidden treasure is deliberate,
otherwise known as “treasure hunting,” such Accesion discreta is subdivided into: (1) natural
activity is governed by the following: fruits, (2) industrial fruits, and (3) civil fruits.
Accesion continua, in turn, may refer to either
1. Republic Act No. 8492 immovable property or movable property.
2. DENR Administrative Order No. 2002- 04,
as amended by DENR AO No. 2004-2003 Accesion continua is classified into either
industrial accession or natural accession. In
In case of treasure hunting for treasures which are industrial accession, the incorporation takes place
not of cultural and historical values, the same shall artificially, while natural accession takes place
require the issuance of a permit for treasure hunting through natural means. Industrial accession, in turn,
or shipwreck/sunken vessel recovery to be issued by may take the form of either building, planting, or
the Department of Environment and Natural sowing. Natural accession, on the other hand, has
Resources, whether the treasure hunting is to be four forms: (1) alluvion, (2) avulsion; (3) change of
undertaken on private lands or government lands course of river; and (4) formation of islands
and subject to the consent of the private landowners
or government agencies concerned. With respect to movable property, accesion
continua may either be: (1) adjunction or
conjunction, (2) commixtion or confusion, and (3)
specification. Adjunction or conjunction, in turn, (1) When the landowner builds, plants or sows on
may take place by: (1) inclusion (engraftment), (2) his land but using materials belonging to another;
soldadura (attachment); (3) tejido (weaving); (4) (2) When a person builds, plants or sows on
pintura (painting); or (5) escritura (writing). another’s land but he made use of materials
belonging to him; and
Exceptions to the Rule The rule in Article 441 is (3) When a person builds, plants or sows on
not absolute inasmuch as there are cases where the another’s land but he made use of materials
owner is not entitled to the fruits of his property. belonging to another.
The exceptions to the rule are the following:
Presumptions
(a) in usufruct • All works, sowing and planting are presumed
(b) in lease of rural lands made by the owner and at his expense, unless the
(c) in antichresis contrary is proved. [Art. 446, CC]
(d) in possession in good faith ● The incorporation must be done in such a manner
(e) fruits naturally falling that to separate the principal from the accessory
would result in injury to both principal and
Kinds of Fruits accessory.
● The party in bad faith is always liable for
1. Natural – spontaneous products of the soil damages.
and the young, and other products of animals. [Art. ● When both parties are in bad faith, they are
442(1), CC] Partus sequitur ventrem: To the considered to be in good faith.
owner of female animals would also belong the ● The owner of the principal thing owns the natural,
young of such animals although this cannot apply industrial and civil fruits, except when the following
when the owner mixes his cattle with those of persons exist:
another and they interbreed, thus co-ownership is a. Possessor in Good Faith
applied. [Siari Valley Estate v. Lucasan, G.R. No. b. Usufructuary
L-13281 (1960)]. c. Lessee
d. Antichretic creditor
2. Industrial – Fruits produced by the lands of any
kind through cultivation of labor [Art. 442 (2), CC] Bad Faith
On the part of the landowner
3. Civil – Rents of buildings, price of leases of Whenever the building, planting or sowing was
lands and other property and the amount of done with his knowledge and without opposition on
perpetual or life annuities or other similar income his part. [Art. 453(2), CC]
[Art. 442 (3), CC]
On the part of the owner of materials
Existence of Fruits, When Recognized Allows the use of his materials without protest. On
the part of the builder, planter and sower One who
With respect to natural and industrial fruits, only has knowledge of any flaw or defect in his title or
those “manifest” or “born” are considered as such. mode of acquisition [Art. 526, CC]
Article 443 applies only when the fruits are already He is a possessor in bad faith at the time of BPS if
harvested and gathered since the article refers to he knows that:
persons “who receives the fruits.” Hence, the article a. He does not have title to the land, and
does not apply to a situation where the fruits are still thus, has no right to build thereon; or
pending. b. He has no permission to build, plant, or
sow on the land which he possesses but does not
Right of Accession with Respect to Immovable own.
Property
Note: Bad faith leads to liability for damages
As defined, accesion continua is the right of the and the loss of the works or the improvement
owner to anything which is incorporated or attached without right to indemnity. [Art. 449, CC] If both
to his property, whether the attachment is by reason parties are in bad faith, then treat them as if they are
of natural or artificial causes. both in good faith. [Art. 453(1), CC]
As A Rule, Art. 448 Cannot Apply To A
Industrial Accession Co-Owner
Industrial accession may take the form of building, The co-owner is not a third person under the
planting or sowing circumstances, and the situation is governed by the
rules of co-ownership. However, when the co-
Controversial Cases ownership is terminated by a partition and it appears
that the house of an erstwhile co-owner has
encroached upon a portion pertaining to another co- Pending Reimbursement, Builder Has Right of
owner which was however made in good faith, then Retention
the provisions of Article 448 should apply to
determine the respective rights of the parties. In addition to the right of the builder in good faith to
be paid the value of his improvement, Article 546 of
Ordinarily, Article 448 does not apply to a case the New Civil Code gives him the corollary right of
where the owner of the land is the builder, sower or retention of the property until he is indemnified by
planter who then later loses ownership of the land the owner of the land.
by sale or donation, for then there can be no
question as to good or bad faith on the part of the Option To Sell the Land
builder. In the case of Pecson v. Court of Appeals,
however, the Court applied by analogy the If the landowner elected to compel the builder or
provision of Article 448 on indemnity to a builder planter to pay the price of the land, then said builder
who loses ownership of his land when the same was or planter must do so, unless the value of land is
auctioned off by a local government unit for failure considerably more than that of the building or trees,
of the landowner to pay the real estate taxes. in which case, the builder or planter must pay
reasonable rent if the landowner does not choose to
Legal Effects Where Both Parties Are In Good appropriate the building or trees.
Faith
Remedy If Builder or Planter Refuses To Pay
What then are the legal effects of a situation where
both the landowner and the builder, planter or sower There is nothing in the language of these two
(who is at the same time the owner of the materials) articles, 448 and 546, which would justify the
acted in good faith? Article 448 governs such a conclusion of appellants that, upon the failure of the
situation. Under Article 448, the landowner, as builder to pay the value of the land, when such is
owner of the principal thing, is given two alternative demanded by the landowner, the latter becomes
rights: (1) to appropriate as his own the works, automatically the owner of the improvement xxx.
sowing or planting after payment to the builder,
planter or sower of the necessary and useful The parties may agree to assume the relation of
expenses, and in the proper cases, expenses for pure lessor and lessee — but they must do so
luxury or mere pleasure, incurred by the latter; or voluntarily.
(2) to oblige the one who built or planted to pay the Owner of the land is entitled to have the
price of the land, if the value of the land is not improvement removed when after having chosen
considerably more than that of the building or trees, to sell his land to the other party, i.e., the builder
and the one who sowed, the proper rent. in good faith, fails to pay for the same. Right
under Art 546 is lost.
Option Is Given To the Landowner
Basis in Determining Price of the Land In Ballatan
Under Article 448, the right to choose between v. Court of Appeals, it was ruled that in the event
appropriating the improvement or selling the land the landowner elects to sell the land to the builder in
on which the improvement of the builder, planter or good faith, the price must be fixed at the prevailing
sower stands, is given to the owner of the land. market value at the time of payment. Right under
The only right given to the builder in good faith is Art 546 is lost.
the right to reimbursement for the improvements;
the builder cannot compel the owner of the land to Landowner In Good Faith; Builder In Bad Faith
sell such land to the former.
Legal Consequences; Alternative Rights of the
Landowner Cannot Refuse to Exercise Either Landowner
Option
The landowner can exercise any of the following
Hence, the landowner cannot refuse to exercise three rights and/ or remedies under Articles 449,
either option and compel instead the owner of the 450 and 451:
building or improvement to remove it from the land.
1. Right to Appropriate – owner
In a situation where the landowner is refusing to appropritates
exercise any of the options granted him under 2. Right of Remotion – demolish plus
Article 448, the builder in good faith can, under the damages
same Article, compel the landowner to make a 3. Right To Compel Payment of the Price of
choice between appropriating the building by the Land - compel the builder or planter
paying the proper indemnity or obliging the builder to pay the price of the land, and the sower
to pay the price of the land. the proper rent,
Limited Rights of Builder, Planter or Sower in
Bad Faith
If the Owner of the Materials Acted In Bad Faith For an action to quiet title to prosper, the following
indispensable requisites must concur, namely:
He Loses His Materials Without Indemnity
- he loses his materials without any right (1) the plaintiff or complainant has a legal or an
whatsoever equitable title to or interest in the real property
subject of the action;
Rights of the Landowner (2) there is a cloud on title to real property or any
- the landowner can claim what has been interest therein; and
built, planted or sown on his land (3) the deed, claim, encumbrance or proceeding
without any obligation to indemnify the claimed to be casting cloud on his title must be
owner of the materials shown to be in fact invalid or inoperative despite its
prima facie appearance of validity or legal efficacy.
Rights of the Builder, Planter or Sower
Legal or Equitable Title
Acted in good faith. He may claim from the
landowner a reasonable compensation for his labor. It is not necessary, therefore, that the person seeking
This is based on the principle that no person should to quiet his title be the registered owner of the
be unjustly enriched at the expense of another property in question.404 When Article 477 speaks
of “title” to property, it does not necessarily denote
Acted in bad faith. He had no right to the land, a certificate of title issued in favor of the person fi
then he is not entitled to anything. He may instead ling the suit. It can connote acquisitive prescription
be made to pay damages to the landowner. by possession in the concept of an owner thereof.
“Cloud” on Title
Prescription
As a mere part owner, a co-owner cannot alienate In a co-ownership, the act of one benefi ts all the
the shares of the other co-owners. other co-owners, unless the former repudiates the
co-ownership.
However, even if a co-owner sells the whole Partition
property as his, the sale will affect only his own
share but not those of the other co-owners who did Note, however, that an action for partition implies
not consent to the sale. that the thing is still owned in common
Since a co-owner is entitled to sell his undivided Article 494 has been interpreted to mean that the
share, a sale of the entire property by one co-owner action for partition is imprescriptible or cannot be
without the consent of the other co-owners is not barred by laches.
null and void. However, only the rights of the co-
owner-seller are transferred, thereby making the Period of Prescription When a co-owner has
buyer a co-owner of the property. effectively repudiated the co-ownership, two
possibilities may arise: (1) such co-owner may
Since the sale is not null and void, the proper action acquire the entire property by virtue of acquisitive
in cases like this is not for the nullifi cation of the prescription if his possession meets all the
requirements of the law, and after the expiration of proceedings, the following are the legal effects
the prescriptive period; or (2) the other co-owners thereof:
who were deprived of their share may lose their
right to seek a declaration of the existence of the co- 1. The co-ownership is terminated292 and each
ownership and of their rights thereunder because the co-owner becomes the absolute and
same may already be barred under the statute of exclusive owner of the share allotted to him.
limitations (or extinctive prescription). 2. It shall not prejudice the rights of third
persons, who shall retain the rights of
Acquisitive Prescription mortgage, servitude, or any other real rights
belonging to them before the division was
Ordinary acquisitive prescription requires made.
possession of things in good faith and with just title 3. Personal rights pertaining to third persons
for a period of ten years. Without good faith and against the ownership shall also remain in
just title, acquisitive prescription can only be force.
extraordinary in character which requires 4. Mutual accounting shall be rendered by the
uninterrupted adverse possession for thirty years. co-owners to each other with regard to
benefi ts and expenses and each co-owner
Action For Partition, Explained shall pay for damages caused by reason of
his negligence or fraud.
First, there is the issue of whether the plaintiff is 5. Every co-owner shall be liable for defects of
indeed a co-owner of the property sought to be title and quality of the portion assigned to
partitioned. Second, assuming that the plaintiff each of the other co-owners.
successfully hurdles the fi rst issue, there is the
secondary issue of how the property is to be divided
between plaintiff and defendant(s) — i.e., what
portion should go to which co-owner