Property: Concept and Kinds Physical impossibility - sun, moon,

Article 414. All things which are or may etc.

be the object of appropriation are Legal impossibility - human body
considered either: while the person is still alive, except
(1) Immovable or real property; or in cases when the body of a person
(2) Movable or personal property. (333) or parts may be the subject matter of
a contract (modelling, donation of
Origin blood/corpse), however this is void if
- Derived from the latin word ​proprius​; the contract is onerous.
meaning, belonging to one or one’s own Right as property
Traditionally - things which are already Property - used to denote something with
possessed/found in the possession of a man; respect, suggesting that legal relations
where property is inseparable from the between people exist, which ownership
person exercising dominion or right over it rights may be exercised - and sometimes to
Civil Code - no strict definition; implies that the rights with respect to the thing
the concept refers to ​things which are 2 kinds or RIGHTS relating to property:
susceptible of appropriation​. Real rights
Things - jus in res
- any object that exists and is capable of - right of interest belonging to a
satisfying some human needs. person over a specific thing without
- extends to all objects that existKinds of a definite passive subject against
things: whom such right may be personally
1. Possessions or owned (res alicuius) enforced.
2. Susceptible to appropriation 1. Cases
Property a. ownership/dominion
- a thing susceptible to appropriation or is b. surface right
found in the possession of a man. c. Civil possession
d. Usufruct
Requisites of property: e. Easement or servitude
1. Utility - An economic concept where f. Hereditary right
something is a means to satisfy a g. Conventional or legal
man’s wants. redemption
2. Substantivity or individuality - h. Lease record
having an independent or i. Pledge
autonomous existence j. Real mortgage
3. Appropriability - susceptibility of k. Antichresis
being possessed by men l. Chattel mortgage
➔ A thing cannot be considered 2. Subject matter - the thing of a real
property if it cannot be appropriated. right may be personal, real or
By reason of: personal/real property.
 For example: Personal rights
Personal property: - Also known as jus in personam/jus
- Pledge ad rem
- Chattel mortgage - Right or power of a person
Real property: (creditor/obligee) to demand from
- Easement another (debtor/obligor) as definite
- Lease record passive subject, the fulfillment of the
- Real mortgage latter’s obligation (so like security?)
- Antichresis Elements of personal right:
Either personal or real property: 1. Active subject - the person who has
- Ownership the power to yield the right
- Possession 2. Passive subject - person against
- usufruct whom the right may be exercised
3. Kind as property - if the thing of a over
real right is a real property, the real 3. Object or presentation - conduct
property is the right itself; otherwise, which must be observed by the
it is personal property. debtor which may consist in giving a
Note: Rights are not the same as their thing or property, or doing or not
subject matter, however, their classification doing
naturally follows the things over which they 4. Juridical or legal tie - what binds the
are exercises. parties to the obligation. Must be
Real rights based on dominion easily determined by knowing the
1. Domino pleno - the powers to enjoy source of the obligation (law,
and to dispose are united: contract, quasi-delict, act or omission
a. Dominion; punished by law or quasi-delict)
b. Civil Possession;
c. Hereditary right Example:
2. Domino menos pleno - the powers to Contract of sale of land
and to dispose are separated - Payment has been made
a. Surface right Active subject: vendee
b. Usufruct Passive subject: vendor
3. Domino limitado - the powers to and Presentation: legal delivery of the land
to dispose though united, are limited: Legal tie: contract
a. By a ​charge​, such as
easement, tax, etc.
b. By a ​guaranty​, such as
mortgage, pledge, etc.
c. By a ​privilege, ​such as
pre-emption, redemption,
lease record, etc.
Real rights vs. Personal rights Classification of things:
1. As to nature
Real Personal
a. Res nullius - Belonging to no one
People involved in legal relation Example: wild animals
b. Res communes - Belonging to everyone
definite active there is a definite
Example: wind, sunlight, air
subject who has a active subject and a
c. Res alicujus- Belonging to someone
right against all definite passive
Example: shares of stock
persons generally as subject
2. As to mobility
an indefinite
a. Movable/ personal
passive subject
- television set
Subject matter b. Immovable/ real
- land
Corporeal thing Incorporeal thing 3. As to ownership
a. Public - sea
Manner in which the will of the active
subject acts b. Private - car
4. As to alienability
Acts directly Acts indirectly a. Within the commerce of men
through the promise - residential building
of obligor b. Outside the commerce of men
Causes of their creation - Roads
5. As to existence
Created by “mode’’ Created by “title” a. present
and “title’’ b. future
Modes of their extinction 6. As to materiality
a. Tangible/ corporeal -Paper
Extinguished by the Survives the subject b. Intangible/ incorporeal
loss or destruction matter - Rights or credit
of the thing over
which it is 7. As to dependence
exercised a. Principal
b. Accessory
Nature of actions arising from the juridical 8. As to substitution
relation a. Fungible
directed against the binding or - Capable of substitution of same kind
whole world, giving enforceable only and quantity
rise to real actions against a particular b. Non-fungible
(actio in rem) person, i.e., the - Incapable of substitution; Identical
against third debtor, giving rise thing must be given or returned
persons to personal actions 9. As to nature or definiteness
(actio in personam)
against such debtor. a. Generic
 - Referring to a group or class 9. As to their definiteness or designation:
b. Specific (a) generic; or
- Referring to single, unique object (b) specific.
10. As to custody of the court 10. As to their manifestability to the senses:
a. In custodia legis (a) corporeal; or
b. free (b) incorporeal (e.g., rights).

2 primary classifications of property Classification into real property and

under the Civil Code personal property.
- Real or personal Most important classification:
- Public or private - Immovable property/bienes
immuebles
Classification of property: - Movable property/bienes muebles
1. As to their nature: Importance of classification:
(a) Real; 1. Applying the rules of acquisitive
(b) Personal prescription
(c) Mixed. 2. Determining the propriety of the
2. As to their ownership: object of the contracts of pledge,
(a) Public chattel mortgage and real estate
(b) Private. mortgage
3. As to their divisibility: 3. For purposes of determining the
(a) Divisible (e.g., sack of rice); or formalities of a donation
(b) Indivisible (e.g., car). 4. In extrajudicial deposit
4. As to their consumability: 5. In crimes of theft, robbery
(a) Consumable; or andusurpation
(b) Non-consumable. 6. For purposes of determining the
5. As to their susceptibility of substitution: venue in remedial law
(a) Fungible; or 1. Basis of classification
(b) Non-fungible. - nature of the thing itself: mobility or
6. As to their alienability: immobility
(a) Within the commerce of man; or 2. Manner of classification.
(b) Outside the commerce of men. Immovable property: Enumerated in Article
7. As to their existence in time: 415
(a) existing or present; or Personal properties - enumerated in Articles
(b) future (e.g., ungathered crops). 416 and 417.
8. As to their dependence or importance: 3. No absolute criterion. — The
(a) principal (e.g., land on which a enumerations are not complete nor do they
house is built); or supply an absolute criterion on the
(b) accessory (e.g., house built on a distinction of property into real and
land). personal.
 (real action) any of its
As a general rule: are brought defendants
Real properties - things that are permanently in the reside or
or intended to be permanently attached or regional may be
fixed to another thing, or cannot be trial court found, or
transferred from place to place. If they can where the where the
be transferred, the transfer cannot be done property or plaintiff or
without injury or damage to the immovable any part any of the
to which they are attached thereof lies plaintiffs
Personal property - Mobile, and may be resides, at
transferred from one place to another Remedy: the election
without injury or damage to an immovable - Forcible of the
property. entry plaintiff.
- Unlawful
Rules: Movable vs. Immovable detainer Remedy:
Movable Immovable - replevin or
manual
Private governed by governed by
delivery of
international the personal the law of
law personal
law of the the country
prop- erty
owner in which
which in they are Contracts subject subject
some cases located matter of matter of
is the law of real simple loan
his mortgage or mutuum,
nationality and voluntary
antichresis deposit,
and in other pledge, and
cases, the chattel
law of his mortgage
domicile.
Donation must be may be
Criminal Only Only made in a made orally
law usurpation robbery and public or in writing
of property instrument unless the
theft can be
can be value
committed exceeds
committed
P5,000 in
Procedure actions brought in which case,
concerning the court it need only
real where the be in a
property defendant or private
instrument
 Prescription Ownership 8 years being immobilized by destination or through
is acquired attachment to immovables;
by 2. ​Immovables but are treated as movables -​
prescription, because they can be transplanted (e.g.,
plants) or dismantled and moved (small
*if there is homes) to another place without impairing
bad faith = their substance
30 years
3. ​Animals in animal houses, pigeon houses,
etc​. - classified as immovables though
transferable from place to place or they can
Transactions Recorded in Must record move by themselves.
the Registry in Registry Note: In common law, a leasehold is
of Property of Property
regarded as partaking partly of the nature of
to affect if Chattel
third Mortgage, land and partly of chattels and is, therefore,
persons. otherwise called a chattel real.
unnecessary American Law
- Law of real property almost equivalent
Ship to the law of land
Mortgage - Law of personal property is all but
Decree of
1978 - identical to the law of movables.
every ship Real property - comprises all rights over
mortgage land with such additions and exceptions as
must be the law has seen fit to establish.
recorded in
the office of Personal property - ​All other proprietary
the
rights, whether, in rem or in personam
Philippine
Coast Guard
of the port 2 main classifications or properties:
of - Immovable
documentati - Movable
on of the
vessel.

Mixed property or semi-movables.

- Strictly neither movables nor
immovables but partake of the nature of Immovable Property
both. They are thus called mixed, or the
Art. 415. The following are immovable
semi-movables.
property:
Examples:
1. ​Movables (e.g., machines, paintings) that
are rendered immovable - by reason of their
(1) Land, buildings, roads, and
constructions of all kinds adhered to the (8) Mines, quarries, and slag dumps, while
soil; the mat- ter thereof forms part of the bed,
and waters either run- ning or stagnant;
(2) Trees, plants, and growing fruits,
while they are attached to the land or form (9) Docks and structures which, though
an integral part of an immov- able; floating, are intended by their nature and
object to remain at a fixed place on a
(3) Everything attached to an immovable river, lake, or coast;
in a fixed manner, in such a way that it
cannot be separated therefrom without (10) Contracts for public works, and
breaking the material or deterioration of servitudes and other real rights over
the object; immovable property.

(4) Statues, reliefs, paintings or other Classification of immovable or real

objects for use or ornamentation, placed in property
buildings or on lands by the owner of the 1. By nature - cannot be carried from
immovable in such a manner that it one place to another
reveals the intention to attach them 2. By incorporation - -attached to an
permanently to the tene- ments; immovable in a fixed manner to be
an integral part thereof
(5) Machinery, receptacles, instruments or 3. By destinations - placed in an
imple- ments intended by the owner of the immovable for the utility it gives
tenement for an in- dustry or works which 4. By analogy or by law - regarded as
may be carried on in a building or on a united to the immovable property by
piece of land, and which tend directly to express provision of law
meet the needs of the said industry or PARAGRAPH 1
works; Examples of immovable properties
The buildings, roads, and constructions must
(6) Animal houses, pigeon-houses, adhere to the soil.
beehives, fish ponds or breeding places of 1. Lands - best example of an
similar nature, in case their owner has immovable. Real by nature and
placed them or preserves them with the in- definition, even if it is rented.
tention to have them permanently attached 2. Buildings treated separated from
to the land, and forming a permanent part land - as a general rule, it is
of it; the animals in these places are immovable provided it is more or
included; less of a permanent structure and oit
adheres to land.
(7) Fertilizer actually used on a piece of Building that are considered
land; MOVABLE:
 a. Superimposed structure on Examples:
the soil 1. Chattel mortgage on real property -
b. Building or house which is when elements of real property acts a
sold to be demolished security for a loan through the
immediately or after a short agreement by the contracting parties
time is to be regarded as Examples:
movable because the subject - leasehold rights and building
matter of the contract is - a house of mixed materials
really the materials thereof. which by its very nature is
c. Demolished house. considered real property
Recovering damages in a. Chattel mortgage not binding on
connection with a demolished third persons - this scenario is only
house, including the materials valid for the contracting parties
of such house, ​does not b. Venue of real action involving
involve title to real property​. building does not change its characte
3. Roads and constructions - Public from being an immovable property
and/or private roads 2. Chattel mortgage on houses built on
- immovable as long as there is rented land. — The law makes no distinction
an intent to attach it as to the ownership of the land on which the
permanently although it only house is built.
rests on land. a. house may be the subject matter of
Examples: chattel mortgage as personal or
- railroads. movable property if so stipulated in
- wall or fence is to be the document of mortgage and in an
regarded as a construction by action by the mortgagee for
incorporation foreclosure, the validity of the chattel
Real property treated by the parties as mortgage cannot be assailed by the
personal property: Doctrine Estoppel parties to the contract of mortgage.
- A building is by itself an immovable b. Property ​does not become
property regardless if land it sits on immobilized by attachment ​if his
belongs to the same owner. house is built on land owned by
- valid real estate mortgage is only someone else.
applicable on the building erected on c. It is a chattel mortgage if owner
the land belonging to another. states that he leases, sells and
- contracting parties may validly transfers by way of chattel mortgage.
stipulate that a real property be 3. Chattel mortgage on immobilized
considered as personal. machineries and equipment. — The fact that
Principle of estoppel - a party to a contract is the disputed machineries were heavy, bolted
ordinarily precluded from denying of any or cemented on the real property mortgaged
material fact found therein. does not make them immovable
immediately. Parties’ ​intent must be Trees, plants, and growing fruits.
considered. Classifications of immovable property:
- Immovable, they may be considered - By incorporation: planted through
personal property when their labor
purpose is to ​serve as security for the - By nature: spontaneous products of
payment of an obligation over which the soul
a chattel mortgage is executed. Trees or plants ​- real property, but ​becomes
- Even if the properties in question are personal property once uprooted from the
considered immovable by nature, land.
nothing detracts the parties from Exception: Uprooted timber remains to be
treating them as chattels to secure an an integral part of the timber land, hence it
obligation under the principle of remains as immovable property in spite of
estoppel. its detachment from soil.
4. Lease of immobilized machines treated as
personal property. — Growing crops/fruits​ - real property
Personal to Real Exception: Under certain conditions,
Note: growing crops or fruits or ungathered
- Factory built on their own land: products or fruits may be treated as
Immovable property PERSONAL PROPERTY.
- Machines leased + essential purpose Examples:
= Immovable (perspective of lessor) - nature of personal property (for
- Machines leased by petitioners were purposes of attachment, execution, and
placed by them in the factory built the chattel mortgage law)
on their own land. They were - Sold growing crops: sale of movables
essential and principal elements ​of because they are to be gathered or
their chocolate-making industry. harvested for delivery
Hence, although each of them was - no longer attached to the land or
movable or personal property on its integral parts thereof
own, all of them have become
immobilized by destination, PARAGRAPH 3
making them real, not personal For an attachment to be considered as
property ​pursuant to Article 415(5). immovable property: attachment to
Writ of replevin -- lease agreement immovable property must be such that it
With respect to lessee cannot be separated from it without breaking
- machines in question were to be the material or deterioration of the object.
considered or treated as personal Examples:
property, they were proper subjects - walls, canals, and aqueducts.
of a ​writ of replevin​.

PARAGRAPH 2 Classification of immovable property:

 - By incorporation Example:
Temporary separation from immovable Carpet nailed to the floor: immovable
- continue to be regarded as pictures hanging on the wall: movable;
immovable if there is an ​intent to unless the physical attachment is such as to
put them back. reveal an intention to make it permanent.
- applicable to the materials separated
from the building, but with intent to Paragraph 3 Paragraph 4
restore them.
Intent to attach permanently essential Cannot be separated Can be separated
- Physical attachment and permanent from immovable from immovable
annexation of things become part of the land property without without breaking/
breaking/ deterioration
and become immovable.
deterioration
Examples:
- Carpets, tapestries or ornaments Doesn’t have to be Must be attached by
nailed to the floor or walls of a house placed by the the owner or his
are not thereby made part of the owner/his agent agen
house under ​paragraph (3) ​but they By incorporation By incorporation
may be considered immovable under and destination
paragraph (4). Money buried in the
ground is as much a chattel as money
PARAGRAPH 5
in its owner’s pocket.
Machinery, receptacles, instruments, or
PARAGRAPH 4
implements for an industry or works.
Statues, reliefs, paintings, or other objects
1. They must be machinery, receptacles,
for use or ornamentation.
instruments or implements;
Requisites:
2. They must be placed by the owner of the
Objects must be placed by owner
tenement or by his agent;
- Note that the objects must be placed
3. There must be an industry or work carried
on the immovable by the owner or
in such building or on the piece of land; and
by the agent and the attachment must
4. They must tend directly to meet the needs
be intended to be permanent
of said industry or work.
- intention to attach the objects
Classification of immovable property:
permanently to the immovable
- By destination or purpose
Classification of immovable property:
Note:
- By incorporation
- If the machinery, receptacles, instrument or
- By destination
implements are not placed by the owner of
Note: immovables by incorporation, such as
the tenement or by his agent, these
houses, trees and plants, does not require
properties remain as movables and are not
that the attachment be made by the owner of
converted into real properties.
the land, the only criterion is the union (or
- Before movables may be deemed
incorporation) with the soil.
immobilized in contemplation of paragraph
5 of Article 415, it is necessary that they forming a permanent part of it; the
must be “essential” and “principal” elements animals in these places are included.
of the industry or works without which such - must permanently form part of the
industry or works would be unable to land and so intended by the owner.
function or carry on the industrial purpose - They are included in “constructions
for which it was established. of all kinds adhered to the soil’’
- Machinery which is movable in its nature - Inserted by the Code Commission in
only becomes immobilized when placed in a order to obviate doubts as to whether
plant by the owner of the property or plant, or not they are real property.
but not when so placed by a tenant, a Animals
usufructuary, or any person having only a As personal property ​- in case of alienation
temporary right, unless such person acted as caused by their nature to move from place to
the agent of the owner. (Davao Sawmill v. place without causing injury. They may
Castillo, G.R. No. L- 40411, August 7, properly be the object of theft or robbery.
1935) As real property - when animals are
Example: Transportation business temporarily outside but reveal their intent to
It is not carried on in a building or in the return
compound, thus it is a MOVABLE PARAGRAPH 7
PROPERTY. Meaning, the machines etc. to FERTILIZERS
be used for repair are not considered to - Uses a piece of land
meet the needs of industry or works because - Immovable by destination.
the repairs need not be made themselves. As immovable property - if they are actually
Instead, the business can go to a repair shop. used because it is only then when there can
Without the machines, the business can be no question that they form part of the
continue conducting its business, thus is not land.
essential nor principal. - Fertilizers kept in a barn are not
Effect of separation when no longer used: immovable.
- reverts to condition of chattel As movable property - Fertilizers already
When separated temporarily but will still on the land, but still in their containers
serve industry: PARAGRAPH 8
- Continues to be immovable Mines, quarries, and slag dumps.
PARAGRAPH 6 Classification of immovable property:
Animal houses, pigeon houses, beehives, - By nature
fish ponds or breeding places of similar As immovable property
nature. - “while the matter thereof forms part
Paragraph 6 of the bed’’
- considered real property in case their - Still part of soil
owner has placed them or preserves
them with the intention to have them As movable property
permanently attached to the land, and
 - Once extracted, they cease to be Of vessel
mines and are converted to minerals. - a record of documents affecting the
- Minerals are movable property. title to a vessel be entered in the
Waters, either running or stagnant. record of the Collector of Customs at
Physical impossibility the port of entry
- immovables, such as a sea (as to that - under the Ship Mortgage Decree of
part which may be appropriated), 1978, every ship mortgage must be
river, or lake, recorded in the office of the
- Waters, either running or stagnant, Philippine Coast Guard of the port of
are classified as immovables in most documentation of the vessel.
jurisdictions. Of other personal property
Canals and aqueducts - Must be recorded at the register of
- Immovables. deeds in the province where the
Note: Water vs Waters mortgagor resides.
Water - movable Rules for ships or vessels:
Waters - immovable Partake of the nature and condition of real
PARAGRAPH 9 property.
Docks and structures. - personal property because they can
- Considered as real property if be moved from place to place
“intended by their nature and object - they partake of the nature and
to remain at a fixed place on a river, condition of real property on account
lake, or coasts (despite floating) of their importance in the world of
- constructions that are united to them commerce.
in a fixed and permanent manner, - In case of double sale, the rules the
such as “docks and structures’’ are purchaser at public auction of a
also immovables. vessel (pilot boat) who was careful to
register his acquisition opportunely
Classification of immovable property: and on a prior date, has a better right
- By design or purpose than another who subsequently
Ships or vessels registered his purchase.
- considered ​personal property PARAGRAPH 10
(bysteam or by oil) under the civil Contracts for public works and servitudes
law. and other real rights over immovables.
- Mortgage on a vessel is in nature a Personal property - piece of paper on which
chattel mortgage governed by the the contractfor public has been written
provisions of the Chattel Mortgage Real property - the contract itself / right of
Law the contract
Difference between a chattel mortgage of a
vessel and a chattel mortgage of other
personal property:
 - Where the thing of a real right is real Art. 417. The following are also
property, the right itself is real considered as personal property:
property
- As for personal property, the right (l) Obligations and actions which have for
itself is personal property. their object movables or demandable
- A personal right is always regarded sums; and
as personal property.
Exception: contracts for public (2) Shares of stock of agricultural,
works which are considered as real commercial and industrial entities,
property. although they may have real estate. (336a)
- Ownership is real property if the
thing owned is immovable and Classes of movable or personal property.
personal property, if movable. They are those enumerated in Articles 416
- Real estate mortgage not registered and 417, and those excluded from Article
in the Registry of Property cannot be 415.
classified as immovable property, PARAGRAPH 1
although it is valid as between the Movables excluded from
contracting parties. Examples:
- ships or vessels irrespective of size
- one-half interest in a business
MOVABLE PROPERTY - being ​capable of appropriation ​and
Articles 416 - 418 not included in the enumeration of
real properties in Article 415 and
Art. 416. The following things are may thus be the ​subject of a chattel
deemed to be personal property: mortgage
- semi-movables such as wild or
(1) Those movables susceptible of domesticated animals, except those
appropriation which are not included in mentioned in Article 415(6)
the preceding article; - automobiles, books, money, jewelry,
cellphones etc.
(2) Real property which by any special PARAGRAPH 2
provision of law is considered as Examples:
personalty; - Growing crops are considered immovable
under but they are recognized as personal
(3) Forces of nature which are brought property by the Chattel Mortgage Law and
under con- trol by science; and thus, may be the object of chattel mortgage.
Scenarios:
(4) In general, all things which can be 1. Growing crops
transported from place to place without Sugar cane: personal or real property?
impairment of the real prop- erty to which Personal property - cannot be the subject of
they are fixed. (335a) legal redemption sought to be enforced.
Citing a decision of the Supreme Court of PARAGRAPH 4
Louisiana, our Supreme Court ruled that : 4. In general, all movable things. —
- growing crops or ungathered Three tests to determine if property is
products raised by labor and movable:
cultivation are considered ​personal a. transport - if it can be carried from one
property​. place to another
- The existence of a right on the b. absence of injury - whether change of
growing crops is a mobilization [not location can be made without injuring the
immobilization] by anticipation, immovable to which the object may be
gathering as it were in advance, attached
rendering the crop movable. c. If not enumerated in article 415
2. Immovable becomes movable because Examples:
the owner or his agent did not attach - Machineries that are not
it/business can function without it: essential/principal to the works of
- machinery placed on a tenement by a the business
lessee or usufructuary who did not Tests of Movable Character
act as the agent of the tenement 1. Test by Exclusion (superior test)
owner was held as personal property. -Whether the property was not enumerated
- a house built on leased land may be in Art. 415 (expressio unius est exclusio
treated insofar as the parties are alterius)
concerned as personal property and 2. Test by Description
be the object of chattel mortgage. -Whether the property can be transported or
PARAGRAPH 3 carried from place to place; Whether such
Forces of nature ​which are brought under change of location can be made without
control by science. injuring the immovable to which the object
Examples: electricity, gas, rays, heat, light, may be attached; unless expressly included
oxygen, atomic energy, water power, etc. in Art. 415
- Electricity as the subject of theft (by ARTICLE 417
the use of a “jumper’’)​: “The true Obligations and actions
test of what is a proper subject of - Definite passive subject
theft seems to be not whether the Property - goes beyond material objects and
subject is corporeal or incorporeal comprehends also rights.
but whether it is capable of - Material things: “corporeal
appropriation by another than the property’’
owner.” - Rights: “incorporeal property’’
- Electricity is a valuable article of Such that: even if the sole property of a
merchandise, bought and sold like corporation consists only of real property, a
other personal property and is share of stock in said corporation is
capable of appropriation by another. considered personal property
- Sole property = real property
 - Share of stock = personal property Example:
Is money considered merchandise? Half-interest in a drugstore business is
As to domestic circulation - money is legal personal property.
tender Note: interest in a business must not be
As an attempt to export or smuggle - money confused with interest in the real property of
is considered as merchandise or commodity a business entity where interest is also real
subject to forfeiture. property.
PARAGRAPH 1
a. Includes contracts such as: promises, or Other incorporeal personal property
obligations which confer on one party the Examples: intellectual property such as
right to recover movable property or a sum copyrights, patents, trademarks, rights to
of money from another by action. invention, etc. Intellectual creation is
recognized in the Civil Code as a mode of
Example: a promissory note is personal acquiring ownership.
property because it gives the creditor the
right to collect his credit, contract of chattel Art. 418. ​Movable property is either
mortgage consumable or non-consumable. To the
first class belong those movables which
Note: if a loan is secured by a real estate cannot be used in a manner appropriate to
mortgage, the loan is real property by their nature without their being consumed;
analogy, as a real right over immovable to the second class belong all the others.
property.

b. Demandable sums - amounts are Consumables and non-consumables.

liquidated or determined, thus obligations Article 418 classifies movable property
and actions must be legally demandable or based upon its apti-tude to repeated use into
enforceable. either consumable or non-consumable.
PARAGRAPH 2
Shares of stocks Consumable
- personal property - e.g., food, money cannot be the
- can be the subject matter of a chattel subject matter of a contract of
mortgage commodatum (cos it’s muttum)
- the certificates themselves unless the purpose of the contract is
evidencing the ownership of the not the consumption of the object, as
shares. when it is merely for exhibition.
a. Include all juridical persons, even - In simple loan or mutuum, the
partnerships although they do not issue subject matter is money or other
shares of stocks. consumable thing.
b. Stock - “participation’’ or “interest.’’ - Generally, usufruct should not
include things which are consumed
when used.
 PROPERTY OF PUBLIC DOMINION,
Fungibles and non-fungibles. defined:
- The consumability of movable It is not owned by the state but pertains to
property depends upon the nature of the state, which, as territorial sovereign,
the thing itself. exercises certain juridical prerogatives over
- A thing is fungible if it can be such property. The ownership of such
substituted by another thing of the properties is in the social group, whether
same kind, quantity and quality national, provincial or municipal.
- non-fungible if not replaceable in - Private ownership
such equivalents.
Article 420 - Public dominion
Example: Intended for:
(1) Rice is by its nature consumable but if ➔ Public use
the parties intend a loan of rice, for display ◆ roads, canals, rivers, torrents, ports and
or exhibition, it is in that sense non- fungible bridges, banks, shores, roadsteads, and
because the identical rice need be returned. others of similar character constructed
If the rice is loaned for consumption, it is by the State
not only consumable but also fungible. ➔ Public service
◆ Government buildings/vehicles
(2) Money is by its nature (physically) ➔ Development of national wealth
non-consumable but it is considered ◆ Minerals, coal, oil, forest, and other
consumable in the sense that when used, natural resources
money leaves the owner who thereby parts Note: property is presumed to be owned by
with it. Money is fungible because the the national/provincial/municipal
debtor need only to return an equivalent government entities in the absence of
amount in case of simple loan. But if the evidence proving the contrary
obligation is that the identical bills given are
the same ones to be returned, then the Classification of public domain lands in
money is non- fungible. reference to the 1987 Constitution:
1. Agricultural
(3) The obligation to deliver ten copies of a 2. Forest or timber
particular book involves fungible, but 3. Mineral lands
non-consumable things. 4. National parks
Characteristics:
Property in Relation to the Person to 1. It is beyond the commerce of man
Whom It Belongs 2. It cannot be acquired by prescription
Article 419 3. It cannot be registered under the
Property as to ownership: Land Registration Law and be the
- Public dominion subject of a Torrens Title
 4. It cannot be levied upon by the property is
execution nor can be attached. already patrimonial
Article 421- Patrimonial property and declaration that
- owned by the State in its proprietary these are already
capacity. Differs from the kinds of alienable and
properties under public dominion. disposable.
- Subject to principles of private Beyond the Once public land is
property commerce of man patrimonial, may be
Article 422 - Public Dominion to subject to
Patrimonial Property acquisition through
- Property originally classified as prscription
public dominion will be converted to Property of the state
patrimonial property when no longer not patrimonial in
intended for public use, service, or character (e.g.
the development of national wealth railroads, trains,
Article 423 - Property of provinces, cities, canals, and more)
and municipalities
- Public dominion/patrimonial Article 425 - Property or private
property ownership
Article 424 - Property for public use in Kinds and ownership:
provinces, cities, and municipalities - Patrimonial properties or the State,
Examples: provincial roads, city streets, provinces cities, municipalities
municipal streets, the squares, fountains, - Individual or collective ownership
public waters, promenades, and public
works for public service paid for by said Subject to the provision found in the 1987
provinces, cities, or municipalities. Constitution which prohibits non-Filipinos
- Other properties owned by from acquiring or holding title to private
provinces, cities, and municipalities lands or to lands of the public domain except
that are not mentioned above are only by way of legal succession or if the
considered are patrimonial acquisition was made by a former
properties. natural-born citizen.

Public Dominion vs. Patrimonial

Property Provisions Common to the Three
Preceding Chapters
Public Dominion Patrimonial ARTICLE 426. Whenever by provision of
Property the law, or an individual declaration, the
Cannot be acquired Realized upone expression "immovable things or
by prescription xpress government property," or "movable things or
manifestation that property," is used, it shall be deemed to
 include, respectively, the things c. Right to vindicate and
enumerated in Chapter 1 and in Chapter 2. recover
2. Naked ownership- Ownership where
Whenever the word "muebles," or right to use and fruits have been
"furniture," is used alone, it shall not be denied
deemed to include money, credits, 3. Sole ownership- Ownership vested
commercial securities, stocks and bonds, to only one person
jewelry, scientific or artistic collections, 4. Co-ownership- Ownership when an
books, medals, arms, clothing, horses or undivided thing or right belongs to
carriages and their accessories, grains, different persons (Art 484.)
liquids and merchandise, or other things
which do not have as their principal object
Art 428. The owner has the right to enjoy
the furnishing or ornamenting of a
and dispose of a thing, without other
building, except where from the context of
limitations than those established by law.
the law, or the individual declaration, the
The owner has also a right of action
contrary clearly appears. (346a)
against the holder and possessor of the
thing in order to recover it.
Co-Ownership (Art 427-437)

Art 427. Ownership may be exercised 7 Rights under Roman Law

over things or rights.
1. Jus possidendi- Right to possess
a. Right to hold a thing or enjoy
Ownership: ​Independent right​ of a person a right, this does not
and ​exclusive enjoyment and control ​of a necessarily include the right
thing including its disposition and recovery to use
subject only to the restrictions or limitations 2. Jus utendi- Right to use and enjoy
established by law and rights of others. a. Includes the right to
transform and the right to
Kinds of ownership exclude persons from
enjoyment and disposal.
1. Full ownership- All the rights of the 3. Jus fruendi- Right to the fruits
owner. 4. Jus accessionis- Right to accessories
a. Right to possess, use and 5. Jus abutendi- Right to consume (by
enjoy the property, fruits, and its use)
accessories 6. Jus disponendi- Right to dispose
b. Right to consume the thing a. The right to dispose also
through use, dispose or includes the right not to
alienate dispose.
7. Jus vindicandi- Right to recover
 a. The owner has the right of 6. Writ of preliminary injunction-
action against the holder and Person in actual possession is
possessor of the thing/right in presumed disputably to have the
order to recover it. better right.

Actions to Recover

1. Replevin – Action/provisional Limitations on the right of ownership

remedy where complainant prays for
the recovery of ​personal property. 1. Those imposed by the State in
2. Accion interdictal exercise of power of taxation, police
a. Forcible entry- An action power, and power of eminent
brought within one year from domain.
the dispossession to recover 2. Those imposed by law
material/property deprived by 3. Those imposed by grantor of the
force, intimidation, strategy, property on the grantee (contract,
threat, or stealth. (Physical donation, last will)
possession) 4. Those imposed by the owner such as
b. Unlawful detainer- An action easement, mortgage, pledge, and
brought within one year from lease
the last demand letter when 5. Those arising from conflicts of
land/building is being private rights
unlawfully withheld by 6. Limitations provided by the
landlord, vendor, vendee or constitution – Prohibition against the
any other person. acquisition of private lands by aliens.
3. Accion publiciana- Recovery of the
right to possess and must be brought
within a period of 10 years.
4. Accion reinvidicatoria – Must be
Art 429. The owner of lawful possessor of
brought within 10-30 years an action
a thing has the right to exclude any person
to recover ownership over real from the enjoyment and disposal thereof.
property. For this purpose, he may use such force as
Issue involved is ownership. may be reasonably necessary to repel or
prevent an actual or threatened unlawful
5. Writ of possession – Generally physical invasion or usurpation of his
understood to be an order to place a property.
person in possession of real or
personal property when a property is
judicially foreclosed.
Doctrine of Self-help​- Comparable with Limitations​- Right of others to existing
self-defense under justifying circumstances servitudes imposed on the land or tenement.
in criminal law

Limitations of the Doctrine of Self-help

1. Owner may only use force Art 431. The owner of a thing cannot
reasonably necessary make use thereof in such manner as to
2. The right to repel or prevent an injure the rights of a third person.
actual or threatened physical
invasion or usurpation is essential to
the maintenance of property rights.
(Report of the Code, p. 95.)

Requisites of the Doctrine of Self-help Art 432. ​The owner of a thing has no right
to prohibit the interference of another with
1. Owner or lawful possessor- person
the same, if the interference is necessary
defending must be the owner or
to avert an imminent danger and
lawful possessor
threatened damage, compared to the
2. Reasonable force- must only use damage rising to the owner from the
force as reasonably necessary to interference, is much greater. The owner
repel or prevent may demand him the person benefited
3. No delay- once delay has taken
indemnity for the damage to him.
place, the owner must undergo
judicial process for the recovery of
the property. Generally, a person cannot interfere with the
4. Actual or threatened physical right of ownership of another.
invasion or usurpation- The person
whom against force is employed has State of necessity- Justifying circumstances
acted wrongfully/unlawfully recognized in the RPC but does not exempt
the offender from civil liability.

Requisites

Art 430. Every owner may enclose or 1. Evil sought to be avoided exists
fence his land or tenements by means of 2. Injury feared is greater than that
walls, ditches, live or dead hedges, or by done to avoid it
any other means without detriment to 3. There is no other practical or less
servitudes constituted thereon. harmful means to prevent it
 4. Deed of sale
Art 433. ​Actual possession under claim of 5. Operating a business for nine years
ownership raises a disputable presumption in defendant’s own name
of ownership. The true owner must resort (representing himself to the public)
to judicial process for the recovery of the 6. Occupation of a building for a long
property. time by party (without paying rent)
7. A letter in which defendant
recognized the ownership of property
Requirements to have disputable by plaintiff
presumption 8. Adverse and exclusive possession
and ownership of parcels of land
1. Actual possession of the property attested by witnesses but also
2. Claim of ownership declaration of properties, payment of
taxes and a deed of mortgage
executed by the possessor’s
predecessors.
Art 434 In an action to recover, the
property must be identified, and the
plaintiff must rely on the strength of his
title and not on the weakness of the Art 435. ​No person shall be deprived of
defendant’s claim. his property except by competent
authority and for public use and always
upon payment of just compensation.
Requisites in action to recover Should this requirement be not first
complied with, the courts shall protect
1. Identity of the property – the person
and, in a proper case, restore the owner in
who claims that he has better right to
his possession.
property must prove not only
ownership of property but also the
identity of the land being claimed.
2. Strength of the plaintiff’s title – the Power of eminent domain.
parties must litigate the issue of
identity of the property before the Requisites
proper courts.
1. Taking must be done by competent
Evidence to prove ownership authority
a. By the State
1. Torrens title b. By municipal corporations,
2. Title from Spanish government other government entities,
3. Patent registered in the Registry of and public service
Property corporations
 2. Must be taken for public use
a. Public benefit Art 437. The owner of a parcel of land is
3. Owner must be paid just the owner of its surface and of everything
compensation under it, and he constructs thereon any
a. Equivalent for the value of works or make any plantations and
property at the time of taking excavations which he may deem proper,
b. Prompt payment to owner without detriment to servitudes and
c. Determination of just subject to special laws and ordinances. He
compensation cannot complain of the reasonable
4. Due process of law must be observed requirements for aerial navigation.
a. Procedural
i. Owner of property
shall have due notice Surface rights- Ownership extends from the
b. Substantive surface downwards to the center of the earth
i. Not merely and upwards.
procedures but the
law is enforced Limitations
5. By the executive department or
1. Existing servitudes or easements
legislature
2. Special Laws

A. All minerals and other natural

resources found either in public or
Art 436. When any property is
private lands is owned by the State
condemned or seized by competent
authority in the interest of health, safety or 3. Local Ordinances
security, the owner thereof shall not be
entitled to compensation, unless he can 4. Reasonable Requirements of aerial
show that such condemnation or seizure is navigation
unjustified.
5. Rights of third persons

B. Co- Ownership Articles 484-501.

Exercise of Police Power

Person affected not entitled to financial

compensation unless he can show that the
condemnation or seizure is unjustified.
Art. 484. ​There is co-ownership whenever
the ownership of an undivided thing or
right belongs to different persons. In
default contracts, or of special provisions,
 co-ownership shall be governed by the 5. By fortuitous events
provisions of this Title. 6. By occupancy

Definition- Form of ownership which exists

Art. 485. ​The share of the co-owners, in
whenever an undivided thing or right
the benefits as well as in the charges, shall
belongs to different persons.
be proportional to their respective
Requisites interests. Any stipulation in a contract to
the contract shall be void. The portions
1. There must be plurality of owners belonging to the co-owners in the
2. Object of ownership must be a thing co-ownership shall be presumed equal
which is undivided- Real or personal unless contrary is proved.
or a right over a thing.
3. Each co-owner’s right must be
limited only to his ideal share of the Shares in Benefit or Charges
physical whole. - all owners have an
ideal or abstract quota in the 1. Share is proportional to the interest
undivided thing of each
2. Contrary stipulation is void
Characteristics a. Any stipulation in a ​contract
making the shares
1. Two or more owners disproportional is void
2. There is a single object not because it is not in line with
materially or physically divided the essence of co-ownership.
3. There is no mutual representation by 3. Co-owners shares proportionately in
co-owners the accretion or alluvium of the
4. It exists for the common enjoyment property
of the co-owners
5. It has no distinct legal personality
6. Governed by the contract of the
parties; followed by special legal
provisions and in default provisions Art.486. ​Each co-owner may use the thing
of Title III on Co-ownership. owned in common, provided he does so in
accordance with the purpose for which it
Sources of co-ownership is intended and in such a way as not to
injure the interest of the co-ownership or
1. Contract prevent the other co-owners from using it
2. By Law according to their rights. The purpose of
3. By succession
4. By testamentary disposition
the co-ownership may be changed by 1. Renouncing his undivided share as
agreement, express or implied. may be equivalent to the share of the
expenses and taxes.

Limitations

1. The interest of the co-ownership

must not be impaired or prejudiced Art. 489. ​Repairs for preservation may be
2. The co-owners must not be made at the will of one of the co-owners,
prevented from using it but he must if practicable, first notify his
co-owners of the necessity for such
repairs. Expenses to improve or embellish
Art 487. ​Anyone of the co-owners may the thing shall be decided upon by a
bring an action in ejectment. majority as determined in Article 492.

Consent Requirements.

1. Acts of preservation
a. No consent
Art 488. ​Each co-owner shall have a right
2. Acts of administration
to compel the other co-owners to
contribute to the expenses of preservation a. Financial Majority
of the thing or right owned in common 3. Acts of alteration
and to the taxes. Anyone of the latter may a. All must consent
exempt himself from this obligation by
renouncing so much of his undivided
Art. 490. ​Whenever the different stories
interest as may be equivalent to his share
of a house belong to different owners, if
of the expenses and taxes. No such waiver
the titles of ownership do not specify the
shall be made if it is prejudicial to the
terms under which they should contribute
co-ownership.
to the necessary expenses and there exist
no agreement on the subject the following
rules shall be observed. 1.The main and
Expenses party walls and the roof and other things
used in common, shall be preserved at the
1. Covers only necessary expenses expense of all the owners in proportion to
2. Co-owner has a right to compel the the value of the story belonging to each. 2.
others to share in expenses of Each owner shall bear the cost of
preservation maintaining the floor of his story; the
floor of the entrance, front door, common
Exempt himself yard and sanitary works common to all
 shall be maintained at the expense of all 492 245 There shall be no majority unless
the owners pro rata; 3. The stairs from the the resolution is approved by the
entrance to the first story shall be co-owners who represent the controlling
maintained at the expense of all the interest in the object of the co-ownership.
owners pro rate, with exception of the Should there be no majority, or should the
owner of the ground floor; the stairs form resolution of the majority be seriously
the first to the second story shall be prejudicial to those interested in the
preserved a the expense of all, except the property owned in common, the court, at
owner of the ground floor and the owner the instance of an interested party, shall
of the first story; and so on successively order such measures as it may deem
proper, including the appointment of an
administrator. Whenever a part of the
thing belongs exclusively to one of the
co-owners, and the remainder is owned in
common, the preceding provisions shall
apply only to the part owned in common.
Art. 491. ​None of the co-owners shall
without the consent of the others, make
alterations in the thing owned in common,
even though benefits for all would result Important to note
therefrom. However, if the withholding of
the consent by one or more of the 1. Acts or decisions for the common
co-owners is clearly prejudicial to the benefit of all the co-owners
common interest, the court may afford 2. Transitory effects as opposed to
adequate relief. alterations
3. Still requires the majority to prevail
4. No majority may go to court
Alterations 5. Seriously prejudicial

1. Change to its state or essence

2. Which changes the use of the thing
3. Which prejudices the condition of
the thing or its enjoyment by others Art 493. Each co-owner shall have the
full ownership of his part and of the fruits
and benefits pertaining thereto, and he
may therefore alienate, assign or mortgage
it, and even substitute another person in its
Art. 492. For the administration and enjoyment, except when personal rights
better enjoyment of the thing owned in are involved. But the Art. 493 247 effect
common, the resolutions of the majority of the alienation or the mortgage, with
of the co-owners shall be binding. Art. respect to the co-owners, shall be limited
to the portion which may be allotted to expressly or impliedly recognizes the
him in the division upon the termination co-ownership.
of the co-ownership

Termination of co-ownership
Rules regarding share
1. Consolidation or merger in only one
1. Each co-owner must have full of the co-owners of all the interest of
ownership of his part and his share the others
of the fruits and benefits 2. Destruction/loss of the property
2. Co-owner may alienate, assign or co-owned
mortgage his share (without 3. Through acquisitive prescription in
prejudice to right of others) favor of third person
3. He may substitute another person 4. By partition, judicial/extrajudicial
(except when personal right) 5. By the termination of the period
a. Personal right- right which agreed upon or imposed
cannot be transferred because 6. By the sale by the co-owners
it affects the personal
relations of the co-owners Right to demand partition
4. Exempt himself from necessary
Partition- division between two or more
expenses by renouncing his part
persons for real or personal property

Limitations, Partition is prohibited

Art 494. ​No co-owner shall be obliged to
remain in the co-ownership. Each 1. By agreement, for period not
co-owner may demand at any time the exceeding 10 years
partition of the thing owned in common, 2. Prohibited by the donor or testator,
insofar as his share is concerned. for a period not exceeding 20 years
Nevertheless, an agreement to keep the 3. Prohibited by law
thing undivided for a certain period of 4. Art. 495. Render it unserviceable
time, not exceeding ten years, shall be 5. Legal nature does not allow
valid. This term may be extended by a
new agreement. A donor or testator may
prohibit partition for a period which shall
not exceed twenty years. Neither shall
there be any partition when it is prohibited Art. 495. Notwithstanding the provisions
by law. No prescription shall run in favor of the preceding article, the co-owners
of a co-owner or coheir against his cannot demand a physical division of the
co-owners or co-heirs so long as he thing owned in common, when to do so
would render it unserviceable for the use
 for which it is intended. But the to the right of the debtor or assignor to
co-ownership may be terminated in maintain its validity.
accordance with Article 498.

Partition will render thing unserviceable

denies to a co-owner the right to demand a
physical or material division of a thing Creditors and Assignees- they have the right
which is essentially indivisible to participate in the partition

Right to notice of partition- they have both

he right to participate and be notified of the
partition

Right to object to impugn partition

Art. 496 Partition may be made by
1. No notice- assignees may question
agreement between the parties or by
the partition
judicial proceedings. Partition shall be
2. No notice- it is their duty to appear
governed by the Rules of Court insofar as
and make known their position
they are consistent with this Code.
3. They cannot impugn a partition
already executed
The court will ascertain a. Unless there is fraud

1. Co-ownership present
2. Parties in co-ownership
3. Respective shares of co-owners
Art. 498 ​Whenever the thing is essentially
4. Allocation
indivisible and the co-owners cannot
agree that it be allotted to one of them
who shall indemnify the others, it shall be
sold, and its proceeds distributed
Art. 497 The creditors or assignees of the
co-owners may take part in the division of
the thing owned in common and object to Sale of a thing co-owned to a third person-
its being effected without their although it cannot physically be divided,
concurrence. But they cannot impugn any co-ownership may be terminated through the
partition already executed, unless there sale and divided among the co-owners
has been fraud, or in case it was made
notwithstanding a formal opposition
presented to prevent it, without prejudice
 Art. 499. ​The partition of a thing owned
in common shall not prejudice third
persons who shall retain the rights of Obligations of co-owners
mortgage, servitude, or any other real
rights belonging to them before the 1. Mutual accounting of benefits
division was made. Personal rights received
pertaining to third persons against the 2. Mutual reimbursements for expenses
coownership shall also remain in force, 3. Indemnity for damages
notwithstanding the partition. 4. Reciprocal warranty for defects

III. Rights arising from Ownership

Rights of a third person
Right of Accession (Art. 440-475)
1. Third persons- all those with real
rights such as mortgage and
servitude over the thing Art. 440. ​The ownership of property gives
2. Real rights / Personal rights- rights the right by accession to everything which
are retained by them before the is produced thereby, or which is
division incorporated or attached thereto, either
naturally or artificially.

Defined- Right of the owner of a thing, real

Art. 500. ​Upon partition, there shall be a or personal to become the owner of
mutual accounting for benefits received everything which is produced
and reimbursements for expenses made.
Likewise, each co-owner shall pay for Accession not a mode of acquiring
damages caused by reason of his ownership
negligence or fraud.
Kinds

1. Accesion discreta

a. Right of owner to
anything which is
Art. 501. Every co-owner shall, after produce by his property
partition, be liable for defects of title and
quality of the portion assigned to each of 2. Accession continua
the other co-owners.
a. Right of the owner to
anything which is
 incorporated or attached c. Specification
to his property

i. Natural

ii. Artificial Art. 441. ​To the owner belongs 1. Natural

fruits, 2. Industrial fruits, 3. Civil Fruits
Immovable property falls within

a. Industrial
accession-Artificial Accesion Discreta
incorporation
General- ​All fruits belong to the owner of
1. Planting
the thing
2. Building
3. Sowing Exceptions to the general rule

b. Natural accession 1. Possession in good faith by another

(Art. 546)
1. Alluvion 2. Usufruct (Art. 566)
2. Avulsion 3. Lease of rural lands (Art.1680)
3. Change of 4. Pledge (Art. 2102)
course of river 5. Antichresis (Art. 2132)
4. Formation of
islands

Moveable Property – Accesion Continua

Art. 442. ​Natural fruits are the
a. Adjunction/ Conjunction
spontaneous products of the soil, and the
1. Inclusion- young and other products of animals.
Engraftment Industrial fruits are those produced by
lands of any kind through cultivation or
2. Soldadura- labor. Civil fruits are the rents of
Attachment buildings, the price of leases of lands and
other property and the amount of
3. Tejido- weaving perpetual or life annuities or other similar
income.
4. Pintura- painting

5. Escritura- writing

b. Commixtion/confusion
1. Natural Fruits
 a. Spontaneous products of the
soil Art. 445​. Whatever is built, planted, or
b. Young and product of sown on the land of another and the
animals improvements or repairs made thereon,
2. Industrial Fruit belong to the owner of the land, subject to
3. Civil Fruits the provisions of the following articles.
a. Rents of buildings
b. Prices of leases of lands

Art. 446. All works, sowing, and planting

Art. 443. He who receives the fruits has are presumed made by the owner and at
the obligation to pay the expenses made his expense, unless the contrary is proved.
by a third person in their production,
gathering, and preservation.
Presumption as to improvements

Good faith- possessor owns the fruits 1. Made by the owner- Positive Law
2. Owner’s Expense
Bad faith

1. Fruits already gathered- owner

should pay
2. If still attached apply Art 449 Art. 447. The owner of the land who
makes thereon, personally or through
Reason- No one may unjustly enrich himself
another, plantings, constructions or works
at the expense of another
with the materials of another, shall pay
their value; and, if he acted in bad faith,
he shall also be obliged to the reparation
Art. 444. ​Only such as are manifest or
of damages. The owner of the materials
born are considered as natural or industrial
shall have the right to remove them only
fruits. With respect to animals, it is
in case he can do so without injury to the
sufficient that they are in the womb of the
work constructed, or without the
mother, although unborn.
plantings, constructions or works being
destroyed. However, if the landowner
Annual and perennial crops- natural fruits acted in bad faith, the owner of the
materials may remove them in any event,
Civil Fruits accrue daily and can be with a right to be indemnified for
pro-rated damages.
Relates when owner of the property ​uses land does not choose to appropriate the
material of another​. Not when a possessor building or trees after proper indemnity.
builds on the property of another. The parties shall agree upon the terms of
the lease and in case of disagreement, the
court shall fix the terms thereof.

Faith

1. Good Faith Landowner- Choice is placed upon the

a. Landowner becomes the landowner based upon the principle of
owner of the materials but accession
shall pay the value (Art. 466.)
b. Owner of material has the Owner of materials- Earlier/Older right
right to remove without
injury to work constructed Good faith
2. Bad Faith
1. Landowner
a. Landowner becomes the
a. May appropriate after
owner but has to pay their
payment of indemnity
value in addition to damages
b. No right of removal unless
(Art. 453, Art. 526)
builder fails to pay upon
b. Owner of materials has the
choice of sale
right to remove plus
c. If the landowner did not
indemnified for damages
choose to pay, has to pay
reasonable rent, terms fixed
by parties
i. Disagreement-court
Art. 448. The owner of the land on which fixes the term of lease
anything has been built, sown, or planted 2. Builder/Planter/Sower
in good faith, shall have the right to a. May pay the price of land
appropriate as his own the works, sowing provided land is not
or planting, after payment of the considerably more than the
indemnity provided for in articles 546 and building or the tree
548, or to oblige the one who built or b. Builder fails to pay
planted to pay the price of the land, and i. May demand
the one who sowed, the proper rent. reasonable rent
However, the builder or planter cannot be ii. Demolish
obliged to buy the land if its value is iii. Sell the property at
considerably more than that of the public auction
building or trees. In such case, he shall
pay reasonable rent, if the owner of the
 Art. 451.​In the cases of the two preceding
articles, the landowner is entitled to
Art. 449. He who builds, plants or sows in damages from the builder, planter or
bad faith on the land of another, loses sower.
what is built, planted or sown without
right to indemnity
1. Landowner may compel the builder,
planter to py the price of land and sower ,
Bad Faith proper rent plus damages
1. Landowner
a. May demand demolition at Art. 452. The builder, planter or sower in
the expense of the builder, bad faith is entitled to reimbursement for
planter or sower the necessary expenses of preservation of
b. Get the house without the land.
indemnity plus damages
2. Builder/planter/sower
a. Losses what is built, planted, Builder/Planter/Sower
or sowed without right to
indemnity - Entitled to reimbursement for the
necessary expenses for the preservation of
land

Art. 450. The owner of the land on which Art. 453. If there was bad faith, not only
anything has been built, planted, or sown on the part of the person who built,
in bad faith may demand the demolition of planted or sowed on the land of another,
the work, or that the planting or sowing be but also on the part of the owner of such
removed, in order to replace things in their land, the rights of one and the other shall
former condition at the expense of the be the same as though both had acted in
person who built, planted or sowed; or he good faith. It is understood that there is
may compel the builder or planter to pay bad faith on the part of the landowner
the price of the land, and the sower the whenever the act was done with his
proper rent. knowledge and without opposition on his
part.

If both parties acted in bad faith= Both are

considered in good faith
 a. Landowner- subsidiarily
liable
b. Owner of materials- entitled
Art. 454. When the landowner acted in to reimbursement
bad faith and the builder, planter or sower c. Builder/sower/planter-
proceeded in good faith, the provisions of Principally liable for
article 447 shall apply. reimbursement

Art. 456. In the cases regulated in the

1. Landowner in bad faith preceding articles, good faith does not
a. Pay the value of the material necessarily exclude negligence, which
plus damages gives right to damages under article 2176.
2. Builder/Planter/Sower
a. Right to remove plus right to
be indemnified for damages

Art. 455. If the materials, plants or seeds

belong to a third person who has not acted Art. 457.​ To the owners of lands
in bad faith, the owner of the land shall adjoining the banks of rivers belong the
answer subsidiarily for their value and accretion which they gradually receive
only in the event that the one who made from the effects of the current of the
use of them has no property with which to waters.
pay. This provision shall not apply if the
owner makes use of the right granted by
Article 450. If the owner of the materials,
plants or seeds has been paid by the Natural accession
builder, planter or sower, the latter may
1. Alluvion- Gradual change (Rivers
demand from the landowner the value of
only)
the materials and labor.
a. Not protected by registration
of Torrens title
b. automatic ownership not
Owner of the materials automatic registration
2. Avulsion- Abrupt
1. Bad faith- Losses all rights to be 3. Change in course of rivers
indemnified, he may be liable for 4. Formation of islands
consequential damages.
2. Good Faith
 cast, if the owners do not claim them
Art. 458. The owners of estates adjoining within six months. If such owners claim
ponds or lagoons do not acquire the land them, they shall pay the expenses incurred
left dry by the natural decrease of the in gathering them or putting them in a safe
waters or lose that inundated by them in place.
extraordinary floods.

Trees uprooted should be claimed within 6

months

If claimed owner should pay expenses in

gathering and putting them in a safe place
Art. 459. ​Whenever the current of a river,
creek, or torrent segregate from an estate Claim of ownership but no actual claim-
on its bank a known portion of land and action to recover will prescribe in 4 years
transfers it to another estate, the owner of (Ordinary prescription)
the land to which the segregated portion
belonged retains the ownership of it,
provided that he removes the same within Art. 461. Riverbeds which are abandoned
two years. through the natural change in the course
of the waters ipso facto belong to the
owners whose lands are occupied by the
new course in proportion to the area lost.
Avulsion- Abrupt However, the owners of the lands
adjoining the old bed shall have the right
Requisites to acquire the same by paying the value
1. Segregation and transfer must be thereof, which value shall not exceed the
value of the area occupied by the new bed.
caused by the current of river, creek,
or torrent
2. Segregation and transfer must be
sudden or abrupt Change in course of the waters
3. Portion of land must be known or
identifiable 1. Owned by landowners of land now
occupied by water
Removal should be within 2 years 2. Owners of land adjoining land shall
have right to acquire
3. Multiple owners
Art. 460. Trees uprooted and carried away
a. In proportion
by the current of the waters belong to the
4. One owner- whole thing is owned by
owner of the land upon which they may be
landowners
Requisites

1. Natural Change in the course of the

water Art. 465. Islands which through
2. Change must be abrupt or sudden successive accumulation of alluvial
deposits are formed in non-navigable and
River dries up = Public domain non-floatable rivers, belong to the owners
of the margins or banks nearest to each of
them, or to the owners of both margins if
Art. 462. Whenever a river, changing its
the island is in the middle of the river, in
course by natural causes, opens a new bed
which case it shall be divided
through a private estate, this bed shall
longitudinally in halves. If a single island
become of public dominion.
thus formed be more distant from one
margin than from the other, the owner of
the nearer margin shall be the sole owner
River (New) private estate= public domain thereof.

Original Bed= land owned by landowners

Islands formed on non-navigable rivers

Art. 463. Whenever a current of a river Owners of nearer margin- sole owner
divides itself into branches, leaving a
Equidistant- dividend longitudinally in half
piece of land or part thereof isolated, the
owner of the land retains his ownership.
He also retains it if a portion of land is Art. 466. Whenever two movable things
separated from the estate by the current. belonging to different owners are, without
bad faith, united in such a way that they
form a single object, the owner of the
principal thing acquires the accessory,
River divides- Owner preserves ownership
of the isolated or separated property indemnifying the former owner thereof for
its value.

Art. 464. Islands which may be formed on

the seas within the jurisdiction of the Adjunction/Conjunction- Union of two
Philippines, on lakes, and on navigable or movable things belonging to different
floatable rivers belong to the State. owners in such a way that they form a single
object but each preserves value

Characteristics
 1. There are two movables (different 1. Which the other has been united as
owners) an ornament
2. United that they form a single object 2. Greater value
3. Inseparable (separation would impair 3. Greater volume
their nature) 4. Greater merits

Kinds

1. Union with Good faith- Principle

acquires the accessory Art. 469. Whenever the things united can
a. Indemnify accessory owner be separated without injury, their
2. Bad faith respective owners may demand their
separation. Nevertheless, in case the thing
united for the use, embellishment or
Art. 467. ​The principal thing, as between perfection of the other, is much more
two things incorporated, is deemed to be precious than the principal thing, the
that to which the other has been united as owner of the former may demand its
an ornament, or for its use or perfection. separation, even though the thing to which
it has been incorporated may suffer some
injury
Accessory- been united as ornament for its
use or perfection
Requisites for separation allowed

1. Separation without injury

2. Accessory much more precious
Art. 468. If it cannot be determined by the (even if injury is caused)
rule given in the preceding article which a. Cause of union shall bear
of the two things incorporated is the expenses
principal one, the thing of the greater 3. Owner of principal acted in bad
value shall be so considered, and as faith
between two things of equal value, that of
the greater volume. In painting and
sculpture, writings, printed matter, Art. 470. Whenever the owner of the
engraving and lithographs, the board, accessory thing has made the
metal, stone, canvas, paper or parchment incorporation in bad faith, he shall lose the
shall be deemed the accessory thing. thing incorporated and shall have the
obligation to indemnify the owner of the
principal thing for the damages he may
have suffered. If the one who has acted in
Principal Accessory Test
bad faith is the owner of the principal
 thing, the owner of the accessory thing Material employed without consent of
shall have a right to choose between the owner
former paying him its value or that the 1. Delivery of equal kind and value
thing belonging to him be separated, even 2. Pay price
though for this purpose it be necessary to a. Sentimental value is
destroy the principal thing; and in both considered
cases, furthermore, there shall be b. Material may be principal or
indemnity for damages. If either one of accessory
the owners has made the incorporation
with the knowledge and without the
objection of the other, their respective Art. 472. If by the will of their owners
rights shall be determined as though both two things of the same or different kinds
acted in good faith. (379a) are mixed, or if the mixture occurs by
chance, and in the latter case the things
are not separable without injury, each
Adjunction in bad faith owner shall acquire a right proportional to
1. Owner of accessory – Losses the the part belonging to him, bearing in mind
thing the value of the things mixed or confused.
2. Owner of principal – accessory may
choose
a. To pay for value plus
damages
b. Remove the thing even
Art. 473. If by the will of only one owner,
resulting to injury of
but in good faith, two things of the same
principal plus damages or different kinds are mixed or confused,
c. If both in bad faith= Good the rights of the owners shall be
faith determined by the provisions of the
preceding article. If the one who caused
the mixture or confusion acted in bad
Art. 471. Whenever the owner of the
faith, he shall lose the thing belonging to
material employed without his consent has
him thus mixed or confused, besides being
a right to an indemnity, he may demand
obliged to pay indemnity for the damages
that this consists in the delivery of a thing
caused to the owner of the thing with
equal in kind and value, and in all other
which his own was mixed.
respects, to that employed, or else in the
price thereof, according to expert
appraisal.
Kinds
 1. Commixtion- mixture of solid things Specification- when work of a person is
(different owners) done on the material of another, imparts new
2. Confusion- mixture of liquid things form
(different owners)
Rules
Voluntary or chance
1. Good faith
Good faith= co-ownership a. Worker becomes owner of
the new thing
Bad faith= losses material plus damages b. Exception- material is more
precious or of more value
Same kind and quantity= divide into equal
than new thing
parts
i. Owner of material
may appropriate thing
to himself but must
Art. 474. One who in good faith employs
pay for the value of
the material of another in whole or in part
the work/labor
in order to make a thing of a different
kind, shall appropriate the thing thus ii. Owner of material
transformed as his own, indemnifying the may demand
owner of the material for its value. If the indemnity for material
loss
material is more precious than the
2. Bad faith
transformed thing or is of more value, its
a. Owner
owner may, at his option, appropriate the
i. Appropriate the thing
new thing to himself, after first paying
indemnity for the value of the work, or ii. Demand value plus
demand indemnity for the material. If in damages
the making of the thing bad faith b. Exception
i. Value of the work is
intervened, the owner of the material shall
considerably more
have the right to appropriate the work to
valuable than that of
himself without paying anything to the
maker, or to demand of the latter that he the material (Art. 448)
indemnify him for the value of the 3. With consent and without objection
material and the damages he may have a. Both acted in good faith
suffered. However, the owner of the Distinguish
material cannot appropriate the work in
case the value of the latter, for artistic or 1. Adjunction
scientific reasons, is considerably more a. Two things
than that of the material. b. Component parts preserve
their nature
c. Principal applies
 2. Mixture 1. Lessees
a. Two things 2. Trustees
b. Things mixed may or may 3. Antichretic creditors
not retain their nature 4. Agents
c. Co-ownership 5. Depositaries
3. Specification 6. Co-owners
a. One thing Article 526, 527, 528 - Kinds of possessor
b. Component parts preserve In good faith
their nature - Someone who is not aware that there
c. Principal applies exists in his title or mode of
acquisition any flaw which
invalidates it.
Art. 475. In the preceding articles, - Good faith is extinguished from the
sentimental value shall be duly moment that facts are presented
appreciated. showing that the possessor is aware
of his wrongful or improper
possession
Appraisal of sentimental value- Considered - Good faith is presume
by the court (Art. 2218) Basis of good faith:
- Mistake upon a doubtful or difficult
Rights of Possession (Civil Code: Articles
question of flaw
523-561)
In bad faith
Possession and the Kinds Thereof
- Possessor who is knowledgeable of
Article 523
any defect in his title over the thing
Possession - holding of a thing or the
- Onus probandi or burden of proof
enjoyment of a right
shall be borne by that who alleges
Articles 524 and 525 - Concepts of things
bad faith
or rights
- Personal and intransmissible to that
- May be exercised in one’s own name or
who had no knowledge of the
in the name of another
wrongful possession. This means
In one’s own name
that the successor by hereditary title
- Possession by the owner himself or
will not suffer the consequences of
one who claims to be the owner (Art.
the wrongful possession of the
525).
decedent.
- Can ripen to ownership, by
Article 529.
prescription (Art. 540)
Note: Possession continues to be enjoyed in
In the name of another
the same character in which it was acquired,
- Holder of the thing or right to keep
until the contrary is proved.
or enjoy it
Article 530 - Object of possession
- Ownership belongs to another
Examples:
 - Things or rights that are susceptible representatives in order to exercise
to appropriation the rights and enjoy the benefits
Acquisition of possession arising from the possession
Article 531 - Possession is acquired by: Article 536 - Possession cannot be
- the material occupation of a thing or acquired through:
the exercise of a right - Force or intimidation as long as there
- the fact that it is subject to the action is a possessor who objects thereto.
of our will, or by the proper acts Note: a competent court may assist an
- legal formalities established for individual who believes that he has a right to
acquiring such right deprive another of the possession of the
Article 532 - Possession can be acquired thing
by the following: Article 537 - Lawful possession may not
- The same person who is to enjoy it be affected by the following acts:
- legal representative or agent - Acts merely tolerated, and
- any person without authority, - Clandestine acts; committed without
provided his action is subsequently the knowledge of the possessor of a
ratified thing, or by
Article 533. - Possession of hereditary - Violent acts
property
Accepted Article 538 - in cases of conflicting
- Transmitted to the heir without possession, the preferred order of
interruption and from the moment of possession is:
the death of the decedent (1) present possessor;
(2) one longer in possession;
(3) one who presents a title;
Renounced (4) judicial determination [Art. 538
- Hier never possessed the thing or
right Effects of Possession
Article 534 - Heir of the thing or right Article 539 - Rights to be respected in
Thing or right possessed in good faith possession
- Will only benefit after the death of General rule:
the decedent 1. Right of a person to be respected in his
Thing or right possessed in bad faith possession
- Heir who has no knowledge of the 2. Protection in said right or restoration to
flaws affecting the thing does not said possession through legal means
suffer the consequence of the ➔ Legal means for restoration of
wrongful possession of the decedent possession
Article 535 - Incapacitated/Minor heirs ◆ 1. To prevent spoliation or a
- may acquire the possession of things disregard of public order
with the assistance of their legal
 ◆ 2. To prevent deprivation of the same time claim adverse
property without due process possession.
◆ 3. To prevent a person from
taking the law into his own Article 541 - Legal presumption that
hands possessor in the concept of owner
3. The writ of preliminary mandatory possesses the title
injunction
- Injunction cannot substitute for the Requisites:
other, actions to recover possession. 1. One must be in possession: actual or
The possessor in the meantime has in constructive
his favor, the presumption of rightful 2. The possession must be in the concept of
possession, at least, till the case is owner
finally decided Kinds of titles:
- Requisites for the issuance— 1. ​True and valid title (titulo verdadero y
a. In forcible entry cases—file within 10 valido)—there was a mode of transferring
days from the time of the complaint ownership and the grantor was the owner
b. In unlawful detainer cases—within 10 2. ​Colorable title (titulo Colorado)—that
days from the time appeal is perfected only title, although there was a mode of
if transferring ownership, still something is
i. The lessee’s appeal is frivolous or dilatory wrong since the grantor is not the owner.
ii. The lessor’s appeal is prima facie 3. Putative title​—where although the
meritorious person believes himself to be the owner, he
is nonetheless is not, because there was no
Specific right mode of acquiring ownership.
1. Reasons for protection of possession
a. Possession is very similar to ownership. It Art. 542. The possession of real property
also modifies ownership. presumes that of the movables therein, so
b. Possession gives rise to the presumption long as it is not shown or proved that they
that the possessor is the owner should be excluded. (449)
2. Every possessor is protected (as
owner/holder) Possession of immovable property implies
possession of the movable properties inside
Article 540 - Acquiring dominion it, unless there is an explicit stipulation
- If a person possesses in the concept stating otherwise.
of owner, he may eventually become
the owner by prescription Requisites:
- a holder cannot acquire property by
acquisitive prescription— one cannot 1. Whether the possessor be in good faith or
recognize the right of another and at bad faith
2. Whether the possessor be in one own’s harvest in proportion to his time of
name or in another’s possession. (Art. 545)
3. Whether the possessor be in concept of Possessor in bad faith - not entitled to the
owner or holder fruits of the property. He shall reimburse the
legitimate possessor of the fruits he received
Article 543 - Effect of partition or the fruits which the legitimate possessor
Upon the division of what was previously could have received. (Art. 549)
commonly owned, each participant will
possess a part allotted to him. Rules on Reimbursement of expenses
- Arises due to right, not merely Articles 546-549
presumption. Kinds of Possessor Possessor
- Interruption in the possession of the expense in good in bad faith
whole or a part of a thing possessed faith
in common shall be to the prejudice
of all the possessors. Necessary Entitled to Entitled to
reimburse- reimburse-
- In case of ​civil interruption​, the
ment with ment
Rules of Court shall apply. right of without
Rules for applying for civil interruption: retention right of
- Civil interruption is produced by retention
judicial summons to the possessor
- Judicial summons shall be deemed Function - entitled to - not entitled
reimbursem to any
not to have been issued and shall not ent with reimburse-
give rise to interruption right of ment
- If it should be void for lack retention - also cannot
of legal solemnities - may remove the
- If the plaintiff should desist remove improve-
from the complaint or should improve- ment even if
allow the proceedings to ment if it it will not
will not damage the
lapse damage the principal
- If the possessor should be principal thing
absolved from the complaint thing, unless
Fruits derived from possession the lawful
Articles 544, 545, and 549 possessor
Possessor in good faith - entitled to the fruits opts to
appropriate
received before his possession is legally the thing
interrupted. (Art. 544) with
Possessor becomes aware of defects in title payment of
ove thing - Should there be any natural or indemnity
industrial fruits at the time good faith ceases,
the possessor shall have a share in the net Luxury/Ple -not entitled -not entitled
asure to to
 reimbursem reimburse- Possessor in good faith - not liable, unless
ent, but he ment, but he he acted with fraudulent intent or
may remove may remove negligence, after judicial summons
the the
embellish- embellish- Possessor in bad faith - liable in every case,
ment if it ment if it even if caused by fortuitous event
will not will not Article 553 - Payment of expired
damage the damage the
principal principal improvements
thing (in thing (in One who recovers possession shall not be
case the case the obliged to pay for improvements which have
lawful lawful ceased to exist at the time he takes
possessor possessor possession of the thing.
does not does not Article 554 - Previous possession
prefer to prefer to
presumes intermediate possession
appropriate appropriate
it) it) Of non-interruption of possession in favor of
- if lawful present possessor who proves possession at
-if the possessor a previous time until the contrary
lawful opts to is proved.
possessor appropriate
opts to the
appropriate embellish-
Article 555 ​- Ways a possessor may lose
the ment, he
embellishme will be possession:
nt, he will reimbursed 1. By the ​abandonment​ of the thing;
be the value 2. By an ​assignment made to another
reimbursed thereof at either by onerous or gratuitous title;
the amount the time the 3. By the ​destruction or total loss of
expended lawful the thing​, or because it goes out of
possessor
enters into commerce;
the 4. By the ​possession of another,
possession subject to the provisions of article
537, if the new possession has lasted
Article 550 - Cost of litigation longer than one year. But the real
In cases where litigation arises, the expenses right of possession is not lost till
shall be borne by every possessor. after the lapse of ten years. (460a)
ARTICLE 551. Improvements caused by Paragraph 1 - Abandonment
nature or time 1. Possessor must be in the concept of owner
- benefits of the person who has lawfully 2. The abandoner must have the capacity to
succeeded in recovering possession renounce or to alienate
Article 552 - Deterioration or loss of thing 3. There must be physical relinquishment of
the thing or object
4. There must be no more expectation to The possession of immovables and of real
recover or intent to return or get back rights is not deemed lost, or transferred for
note: Abandonment which converts the purposes of prescription to the prejudice of
thing into ownership of which may third persons, except in accordance with the
ordinarily be obtained by occupationdoesn’t provisions of the Mortgage Law and the
apply to land. Ownership of land cannot be Land Registration laws.
obtained through occupation.
Paragraph 2 - Assignment Article 558 - Acts of holder with respect
1. Complete transmission of ownership to owner of property
rights to another person Acts relating to possession, executed or
2. At no time did the thing not have a agreed to by the holder do not bind or
possessor prejudice the owner, unless he gave said
3. Both possession de facto and de jure are holder express authority to do such acts, or
lost and no action will allow recovery ratifies them subsequently.
Paragraph 4 - Possession of another
1. De facto possession of land is lost Article 559 - Rules on the possession of
after 1 year if no ejectment suit is movables
filed. 1. Possession of movable property
2. De jure possession of land is lost acquired in good faith is equivalent
after 10 years if no accion publiciana to a title.
is filed. After 10 years, accion Requisites:
reivindicatoria may still be filed, a. possession should be in good
unless an acquisitive prescription has faith
set in. b. former owner voluntarily parted
with the possession of the thing
Article 556 - Possession of movable c. possession is in the concept of
lost/not lost owner
Lost: 2. Lawful possessor may recover any
- When the thing is no longer under lost or unlawfully deprived movable
the control of the possessor thing from the person who is
Not lost: currently wrongfully/unlawfully in
- As long as it remains under the possession of it
control of the possessor, even if the Unless:
possessor does not know its a. Current possessor acquired it in
whereabouts for the time being good faith at a public sale,
- When the possessor knows where its unless he reimburses the price
general location is paid therefore
Article 557 - Loss of possession of b. purchased it in a merchant’s
immovables with respect to 3rd persons store, fairs or markets
 c. purchased it in good faith from C. Usufructuary Right (Art. 562-612)
one who has voidable title
thereto, which has not been
annulled at the time of sale Art. 562. Usufruct gives a right to enjoy
d. has become the owner of the the property of another with the obligation
thing through acquisitive of preserving its form and substance,
prescription. unless the title constituting it or the law
3. Movable can no longer be recovered otherwise provides. (467)
if in the hands of a buyer in good
faith
Defined- gives a right to enjoy the property
Article 560 - Possession of animals of another with the obligation of preserving
Classification of animals its form and substance, unless the title
1. Wild animals - live naturally independent constituting it or the law otherwise provides.
of man
Characteristics
2. Domesticated - wild by nature but
recognizes the authority of man 1. Real Right of use and enjoyment
3. Domestic - born and reared ordinarily (whether registered or not in the
under the control of and care of man registry of property)
Possession of wild animals 2. Temporary Duration
- lost when they are under another’s 3. Transmissible
control or under no one’s control 4. May be constituted on real or
Possession of domesticated or tamed personal property, consumable or
animals non-consumable, tangible or
- Possession remains as long as intangible, the ownership of which is
animals habitually return to the vested in another
possessor’s premises
- Possession is lost if the Note: A person cannot create a usufruct over
aforementioned habit has ceased his own property and at the same time retain
ownership of the same.
Article 561 ​- Lawful recovery of
possession unjustly lost Classifications
- Applies to both possessors in good
1. Whether or not impairment of object
faith and bad faith, but only if
is allowed
beneficial to them
a. Normal
- Possession is deemed uninterrupted
b. Abnormal (Art. 562.)
- Useful for prescription for possessor
2. Origin
in good faith
a. Legal
b. Voluntary
c. Mixed
 3. Number of Usufructuaries 2. Action to protect the exercise of the
a. Simple usufruct
b. Multiple
i. Simultaneous Usufruct v Lease
ii. Successive
Usufruct
4. Terms/Conditions
a. Pure 1. Real Right (Nature)
b. With a term or period 2. Person creating should be the owner/
c. Conditional (Art. 564.) authorized agent (Creation)
5. Kind of Object 3. By law, contract, will of the testator
a. Things or prescription (Origin)
b. Rights 4. Covers as a rule all the fruits and all
6. Quantity or Extent the uses and benefits of the property
a. Total (Enjoyment)
b. Partial (Art. 564.) 5. More or Less passive owner (Cause)
7. Extent of Owner’s Patrimony 6. Usufructuary pays for ordinary taxes
a. Universal and repairs on the fruits (Payment)
b. Particular (Art. 598., Art.
599.) Lease

Natural Characteristics - The obligation of 1. Generally a Personal right (Nature)

Conserving or Preserving the form and 2. Lessor may not be the owner
substance of the thing (Creation)
3. Generally by contract (Origin)
Accidental Characteristics 4. Certain uses, Stipulated (Enjoyment)
5. Active Owner (Cause)
1. Whether it be pure or conditional
6. Lesse is not generally under
usufruct
obligation to pay for repairs and
2. Number of years
taxes (Payments)
3. Whether it is in favor of one person
or several

Object of Usufruct Art. 563.​Usufruct is constituted by law,

by the will of private persons expressed in
1. Real or Personal Property acts inter vivos or in a last will and
2. Sterile or Productive (Fruits) testament, and by prescription.
3. Created over a right

Rights of Action Creation

1. Action to protect the usufruct 1. Legal

a. created by law
 b. declared by law a. Over things
2. Voluntary- created by the will of the b. Over rights
parties
a. Inter vivos (Contract or
donation) Art. 565. ​The rights and obligations of the
b. Mortis Causa (Last will and usufructuary shall be those provided in the
testament) title constituting the usufruct; in default of
3. Mixed such title, or in case it is deficient, the
a. By Law and volition of the provisions contained in the two following
person Chapters shall be observed.

Usufruct over real property, being a real

right must be duly registered to bind Rules governing a usufruct
innocent third parties
1. Agreement of the parties or the title
granting the usufruct
Art. 564.​Usufruct may be constituted on 2. In case of deficiency, Civil Code
the whole or a part of the fruits of the applies
thing, in favor of one or more persons,
simultaneously or successively, and in Conflict- Rights granted by virtue of a will
every case from or to a certain day, purely prevails over the codal provisions, unless
or conditionally. It may also be repugnant to the mandatory provisions of the
constituted on a right, provided it is not Civil Code
strictly personal or intransmissible.
Art. 566. ​The usufructuary shall be
entitled to all the natural, industrial and
Kinds civil fruits of the property in usufruct.
With respect to hidden treasure which
1. Extent may be found on the land or tenement, he
a. Total shall be considered a stranger.
b. Partial
2. Number of beneficiaries
Fruits- Usufruct is entitled to the natural,
a. Simple
industrial and civil fruits that will accrue
b. Multiple
during the existence of the usufruct.
i. Simultaneous
ii. Successive
Note:
3. Effectivity or extinguishment
Hidden Treasure- Usufructuary is a stranger
a. Pure
but may be entitled to one half if he is a
b. With a term
finder
c. Conditional
4. Subject Matter
Art. 567. ​Natural or industrial fruits and successors shall receive only the
growing at the time the usufruct begins, proportionate share of the rent that must
belong to the usufructuary. Those growing be paid by the lessee. (473) Art. 569. Civil
at the time the usufruct terminates, belong fruits are deemed to accrue daily, and
belong to the usufructuary in proportion to
to the owner. In the preceding cases, the the time the usufruct may last.
usufructuary, at the beginning of the
usufruct, has no obligation to refund to the
owner any expenses incurred; but the
owner shall be obliged to reimburse at the Not the naked owner, but usufructuary has
the right to choose the tenant
termination of the usufruct, from the
proceeds of the growing fruits, the Art. 569. ​Civil fruits are deemed to accrue
ordinary expenses of cultivation, for seed, daily, and belong to the usufructuary in
and other similar expenses, incurred by proportion to the time the usufruct may
the usufructuary. The provisions of this last.
article shall not prejudice the rights of
third persons, acquired either at the IF leased by Usufructuary- if it should
beginning or at the termination of the expire before the termination of the lease,
usufruct. usufructuary is entitled only for the duration
corresponding to the duration of the usufruct
1. Fruits Pending at the beginning of
usufruct Art. 570. ​. Whenever a usufruct is
a. Belong to Usufructuary constituted on the right to receive a rent or
b. No necessity of refunding periodical pension, whether in money or
owner of expenses incurred in fruits, or in the interest on bonds or
c. Without prejudice to the right securities payable to bearer, each payment
of third persons due shall be considered as the proceeds or
2. Fruits pending at the termination of fruits of such right. Whenever it consists
usufruct in the enjoyment of benefits accruing from
a. Belong to the owner a participation in any industrial or
b. Owner must reimburse the commercial enterprise, the date of the
usufructuary for the ordinary distribution of which is not fixed, such
cultivation expenses and for benefits shall have the same character. In
the seed and similar expenses either case, they shall be distributed as
c. Without prejudice to the right civil fruits, and shall be applied in the
of third persons manner prescribed in the preceding article.
Art. 568. ​If the usufructuary has leased
the lands or tenements given in usufruct,
and the usufruct should expire before the
termination of the lease, he or his heirs
Civil fruits shall accrue proportionately to 2. He may lease the thing to another
the naked owner and usufructuary for the a. Even without owner’s
time the usufruct lasts consent
Note Rights with reference to right itself
1. The parties may stipulate otherwise 1. He may alienate the usufructuary
in their contract right
a. Absent apply Art 570. a. Legal Usufruct
2. Article applies whether the date of b. Usufruct granted in
distribution of benefits from consideration of person
industrial or commercial enterprises c. Usufruct acquired through a
are fixed or not caucion juratoria
3. Cash and stock dividends are fruits
a. Should also apply to profits Note: Caucion Juratoria- Promise under oath
of a partnership given as security by a usufructuary in order
Art. 571. The usufructuary shall have the to be able to use certain things that are
right to enjoy any increase which the thing necessary for living and shelter
in usufruct may acquire through (Art. 587.)
accession, the servitudes established in its
favor, and, in general all the benefits 2. He may pledge or mortgage the
inherent therein. usufructuary right
a. He may not pledge or
Usufruct has the right to the enjoyment of mortgage the thing itself
1. Accessions
2. Servitutes or easements Art. 573. Whenever the usufruct includes
3. All benefits inherent in the property things which, without being consumed,
gradually deteriorate through wear and
Art. 572. The usufructuary may tear, the usufructuary shall have the right
personally enjoy the thing in usufruct, to make use thereof in accordance with
lease it to another, or alienate his right of the purpose for which they are intended,
usufruct, even by a gratuitous title; but all and shall not be obliged to return them at
the contracts he may enter into as such the termination of the usufruct except in
usufructuary shall terminate upon the their condition at that time; but he shall be
expiration of the usufruct, saving leases of obliged to indemnify the owner for any
rural lands, which shall be considered as deterioration they may have suffered by
subsisting during the agricultural year. reason of his fraud or negligence.
Deterioration
Rights with reference to thing 1. Normal Use
a. Usufructuary not responsible
1. Personally enjoy the thing 2. Event or act that endangers their
a. Enjoyment may be through preservation
another unless stipulated a. Fortuitous event
 i.Required to make 2. Those cut off or uprooted by
necessary repairs accident
3. Fraud or Negligence a. Must replace with new plants
a. Usufructuary is responsible Art. 576. If in consequence of a calamity
b. Liability is set off with or extraordinary event, the trees or shrubs
improvements shall have disappeared in such
considerable number that it would not be
Art. 574. Whenever the usufruct includes possible or it would be too burdensome to
things which cannot be used without being replace them, the usufructuary may leave
consumed, the usufructuary shall have the the dead, fallen or uprooted trunks at the
right to make use of them under the disposal of the owner, and demand that
obligation of paying their appraised value the latter remove them and clear the land.
at the termination of the usufruct, if they
were appraised when delivered. In case
they were not appraised, he shall have the Art. 577. The usufructuary of woodland
right to return the same quantity and may enjoy all the benefits which it may
quality, or pay their current price at the produce according to its nature. If the
time the usufruct ceases. woodland is a copse or consists of timber
for building, the usufructuary may do such
ordinary cutting or feeling as the owner
Quasi-Usufruct
was in the habit of doing, and in default of
1. Usufructuary can use them as if he is
this, he may do so in accordance with the
owner
custom of the place, as to the manner,
Provided at the end of the usufruct
amount and season. In any case the felling
1. Pay the appraised value
or cutting of trees shall be made in such
2. Return the same kind, quality or
manner as not to prejudice the
quantity
preservation of the land. In nurseries, the
3. Pay the current price at the
usufructuary may make the necessary
termination of usufruct
thinnings in order that the remaining trees
may properly grow. With the exception of
Art. 575. The usufructuary of the provisions of the preceding
fruit-bearing trees and shrubs may make paragraphs, the usufructuary cannot cut
use of the dead trunks, and even of those down trees unless it be to restore or
cut-off or uprooted by accident, under the improve some of the things in usufruct,
obligation to replace them with new and in such case, he shall first inform the
plants. owner of the necessity for the work.
Special usufruct on fruit bearing trees- Obligations
Rights 1. Exercise the diligence in caring for
Usufruct can use the property
1. Dead trunks 2. In cutting or felling trees he must
 a. Follow owner’s habit or Art. 579. The usufructuary may make on
practices the property held in usufruct such useful
b. Follow customs of the place improvements or expenses for mere
c. Cut down trees for repairs or pleasure as he may deem proper, provided
improvements he does not alter its form or substance; but
3. Cannot alienate the trees he shall have no right to be indemnified
a. Unless expressly permitted therefor. He may, however, remove such
Art. 578. The usufructuary of an action to improvements, should it be possible to do
recover real property or a real right, or any so without damage to the property.
movable property, has the right to bring Improvements
the action and to oblige the owner thereof 1. Useful Improvements
to give him the authority for this purpose 2. Luxurious Improvements
and to furnish him whatever proof he may Limitations
have. If in consequence of the 1. May not alter the form or substance
enforcement of the action he acquires the of property held
thing claimed, the usufruct shall be 2. Not entitled to refund
limited to the fruits, the dominion a. May either remove the
remaining with the owner. improvements if no
Usufruct demand from owner substantial damage is caused
1. Authority to bring the action b. May set off the
2. Proofs needed for recovery improvements
Art. 580. The usufructuary may set-off
Institution of the action - may be done in the improvements he may have made on
usufructuary’s name the property against any damage to the
1. Purpose to recover the property or same.
right
a. Still needs naker owner’s
authority Rules for Set- off
2. Purpose to prevent disturbance 1. If damage exceeds the value,
a. No authority needed from usufructuary is liable
owner 2. If value exceeds damage, difference
accrues in favor of the naked owner
Effect of the judgement (unless stipulated)
1. Naked ownership Requisites for Set- off
a. Owner 1. Damage must be caused by the
2. Usufruct usufructuary
a. Belongs to usufructuary 2. Improvements must have augmented
the value of property
 Art. 581. The owner of property the representative, an inventory of all the
usufruct of which is held by another, may property, which shall contain an appraisal
alienate it, but he cannot alter its form or of the movables and a description of the
substance, or do anything thereon which condition of the immovables; (2) To give
may be prejudicial to the usufructuary. security, binding himself to fulfill the
Rights and obligations of naked owner obligations imposed upon him in
1. May alienate the property in the accordance with this Chapter.
usufruct Classifications of obligations
a. Alienation cannot affect the 1. Before the usufruct begins
usufruct a. Make an inventory of the
2. Naked owner cannot alter the form property
or substance of of the property (that b. To give security (Art. 583.)
diminishes the value) 2. During the Usufruct
Art. 582. ​The usufructuary of a part of a a. Take care of the property
thing held in common shall exercise all (Art. 589.)
the rights pertaining to the owner thereof b. Replace with the young
with respect to the administration and the thereof animals that die
collection of fruits or interest. Should the (Art. 591.)
co-ownership cease by reason of the c. Make ordinary repairs
division of the thing held in common, the (Art. 592)
usufruct of the part allotted to the d. Notify the owner of urgent
co-owner shall belong to the usufructuary. extraordinary repairs
(Art. 593)
Usufruct part of common property e. To permit works and
Usufruct in cases may take the owner’s improvements by naked
place as to owner (Art. 595.)
1. Administration i. Not prejudicial to
2. Collection of fruits or interest usufruct
Effect of Partition f. To pay annual taxes and
1. Usufructuary continues to have the charges on fruits (Art. 596)
usufruct of the part allotted to the g. To pay interest on taxes on
co-owner concerned capital paid by naked owner
2. If co-owner makes partition (Art. 597)
a. Without the intervention of h. To pay debts when usufruct
the usufructuary = Binding is constituted on the whole of
Art. 583. The usufructuary, before a patrimony (Art. 598)
entering upon the enjoyment of the i. To secure the naked owner’s/
property, is obliged: (1) To make, after Court’s approval to collect
notice to the owner or his legitimate credits (Art. 599)
 j. To notify the owner of any b. Waiver by naked owner
prejudicial act committed by c. Usufructuary is the donor of
third persons (Art. 601) property
k. To pay for court expenses d. Parental usufruct
and costs regarding usufruct e. When there is caucion
(Art. 602) juratoria
3. Termination of usufruct i. Instead of bond
a. Return the thing in usufruct
(Art. 612)
b. Pay legal interest (Art. 594) Art. 584. The provisions of No. 2 of the
c. To indemnify naked owner preceding article shall not apply to the
(Art. 589-590) donor who has reserved the usufruct of the
Requisites for making inventory property donated, or to the parents who
1. Previous notice to owner are usufructuaries of their children’s
2. Condition of the immovables must property, except when the parents contract
be described a second marriage.
3. Movables must be appraised
4. No form is required
a. Except real property in public Art. 585. ​The usufructuary, whatever may
instruments to bind third be the title of the usufruct, may be
persons excused from the obligation of making an
5. Expense to be borne by usufructuary inventory or of giving security, when no
6. Effect of not making inventory one will be injured thereby.
a. Same as not giving security
When obligation to make inventory/Security
7. When inventory is not required
excused
a. When no one will be injured
1. When naked owner renounces or
thereby
waives rights
i. Naked owner must
2. Title constituting the usufruct
consent
relieves the usufructuary from
b. Waiver by naked owner or
obligation
the law
3. Usufructuary asks that he be
Security- To insure faithful compliance to
exempted from the obligation
duties of the usufructuary
a. Provided no one will be
1. Form- Any kind of sufficient
prejudiced
security
a. Cash
b. Personal bond
c. Mortgage Art. 586. ​Should the usufructuary fail to
2. When security is not required give security in the cases in which he is
a. No one will be prejudiced bound to give it, the owner may demand
 that the immovables be placed under i. Cannot use as lease
administration, that the movables be sold, c. Cannot collect credits that
that the public bonds, instruments of have matured
credit payable to order or to bearer be d. Can alienate his rights to the
converted into registered certificates or usufruct
deposited in a bank or public institution, Art. 587. ​If the usufructuary who has not
and that the capital or sumsin cash and the given security claims, by virtue of a
proceeds of the sale of the movable promise under oath, the delivery of the
property be invested in safe securities. furniture necessary for his use, and that he
The interest on the proceeds of the sale of and his family be allowed to live in a
the movables and that on public securities house included in the usufruct, the court
and bonds, and the proceeds of the may grant this petition, after due
property placed under administration, consideration of the facts of the case. The
shall belong to the usufructuary. same rule shall be observed with respect
Furthermore, the owner may, if he so to implements, tools and other movable
prefers, until the usufructuary gives property necessary for an industry or
security or is excused from so doing, vocation in which he is engaged. If the
retain in his possession the property in owner does not wish that certain articles
usufruct as administrator, subject to the be sold because of their artistic worth or
obligation to deliver to the usufructuary because they have a sentimental value, he
the net proceeds thereof, after deducting may demand their delivery to him upon
the sums which may be agreed upon or his giving security for the payment of the
judicially allowed him for such legal interest on their appraised value.
administration. When applicable- When required to give
Failure to give Security security but cannot afford
1. Rights of the naked owner Does not apply if exempted from security
a. He may deliver the property
to usufructuary Caucion Juratoria
b. Naked owner may choose 1. Promise under oath
retention of the property as 2. Sword duty to take good care of
administrator property
c. Naked owner may demand 3. Takes place of bond or security
receivership of real property Requisites
2. Rights of the usufructuary 1. Proper court petition
a. Usufructuary cannot possess 2. Necessity for delivery
the property 3. Approval of cout
i. Until security is 4. Sworn promise
provided Limitations
b. Cannot administer the 1. Usufructuary cannot alienate or lease
property property
 If the animals on which the usufruct is
constituted should all perish, without the
Art. 588. After the security has been fault of the usufructuary, on account of
given by the usufructuary, he shall have a some contagious disease or any other
right to all the proceeds and benefits from uncommon event, the usufructuary shall
the day on which, in accordance with the fulfill his obligation by delivering to the
title constituting the usufruct, he should owner the remains which may have been
have commenced to receive them. saved from the misfortune. Should the
herd or flock perish in part, also by
accident and without the fault of the
Art. 589. ​The usufructuary shall take care usufructuary, the usufruct shall continue
of the things given in usufruct as a good on the part saved. Should the usufruct be
father of a family on sterile animals, it shall be considered,
with respect to its effects, as though
Obligation includes constituted on fungible things.
1. Ordinary repairs
2. Care that of a good father of a family
a. Should not be less that Rules
required by circumstances 1. Replace
Art. 590. ​A usufructuary who alienates or a. If animals die due to natural
leases his right of usufruct shall answer causes
for any damage which the things in b. Lost due to rapacity of beasts
usufruct may suffer through the fault or of prey
negligence of the person who substitutes 2. No obligation to replace
him. a. There is total loss of the
animals due to (provided
usufructuary has no fault)
1. Liable for damages suffered due to i. Unexpected or
b. Fault unnatural loss
c. Negligence ii. Contagious disease
iii. Uncommon events
Reason​: duty to preserve the form and b. Partial loss
substance of usufruct i. In similar conditions
Art. 591. If the usufruct be constituted on
a flock or herd of livestock, the Note: If due to fault- Usufruct is still liable
usufructuary shall be obliged to replace Art. 592. The usufructuary is obliged to
with the young thereof the animals that make the ordinary repairs needed by the
die each year from natural causes, or are thing given in the usufruct. Ordinary
lost due to the rapacity of beasts of prey. repairs are understood as are required by
 the wear and tear due to the natural use of a. Naked owner pays
the thing and are indispensable for its 2. Abnormal and exceptional that are
preservation. Should the usufructuary fail needed for preservation
to make them after demand by the owner, a. Naked owner pays
the latter may make them at the expense b. Owner cannot be compelled
of the usufructuary. but usufructuary may make
them
Duty to make ordinary repairs 3. Abnormal and exceptional that are
1. Usufructuary is bound to make not needed for preservation
repairs referred a. Naked owner pays
a. Without demand from owner b. Usufructuary not allowed to
2. Owner may make repairs at the pay
expense of usufructuary
3. Defects requiring ordinary repairs Requisites
must have occurred during the 1. There must be notification to the
usufruct naked owner
Note: Usufruct is not liable for deterioration 2. Naked owner failed to make repairs
resulting from wear and tear out due to his 3. Repair is needed for preservation
Fraud or Negligence.
Art. 593. Extraordinary repairs shall be at Right of the usufructuary who made
the expense of the owner. The repairs
usufructuary is obliged to notify the owner 1. Get increase in value
when the need for such repairs is urgent. a. Difference in value before
and after repair
2. Right to retention until paid
Art. 594. If the owner should make the a. Reimbursement is paid at the
extraordinary repairs, he shall have a right end of usufruct
to demand of the usufructuary the legal
Art. 595. ​The owner may construct any
interest on the amount expended for the
works and make any improvements of
time that the usufruct lasts. Should he not
which the immovable in usufruct is
make them when they are indispensable
susceptible, or make new plantings
for the preservation of the thing, the
thereon if it be rural, provided that such
usufructuary may make them; but he shall
acts do not cause a diminution in the value
have a right to demand of the owner at the
of the usufruct or prejudice the right of the
termination of the usufruct, the increase in
usufructuary
value which the immovable may have
acquired by reason of the repairs. Naked owner may
1. Construct works
Kinds and who should pay
2. Make improvements
1. Natural use but not needed for
3. Make new plantings
preservation
Provided
 1. Value of the usufruct is not a. Reimbursed immediately
diminished
2. Value of usufruct is not prejudiced
Effect Art. 598. If the usufruct be constituted on
1. Usufructuary profits by the said the whole of a patrimony, and if at the
increase time of its constitution the owner has
2. Does not have to pay legal interest debts, the provisions of articles 758 and
a. Reason: Voluntary act of the 759 relating to donations shall be applied,
naked owner both with respect to the maintenance of
Art. 596. The payment of annual charges the usufruct and to the obligation of the
and taxes and of those considered as a lien usufructuary to pay such debts. The same
on the fruits, shall be at the expense of the rule shall be applied in case the owner is
usufructuary for all the time that the obliged, at the time the usufruct is
usufruct lasts. constituted, to make periodical payments,
even if there should be no known capital.
Application
Art. 597. The taxes which, during the 1. Universal usufruct
usufruct, may be imposed directly on the 2. Naked owner
capital, shall be at the expense of the a. Has debts
owner. If the latter has paid them, the b. Obliged to make periodical
usufructuary shall pay him the proper payments
interest on the sums which may have been Note: Usually applies if a person donates
paid in that character; and, if the said everything but reserved to him the usufruct
sums have been advanced by the of the thing
usufructuary, he shall recover the amount
thereof at the termination of the usufruct.
Art. 599. The usufructuary may claim any
Rules matured credits which form a part of the
1. If paid by naked owner usufruct if he has given or gives the
a. Can demand legal interest on proper security. If he has been excused
the sum paid from giving security or has not been able
2. If advanced by the usufructuary to give it, or if that given is not sufficient,
a. He should be reimbursed he shall need the authorization of the
b. Entitled to retention (Until owner, or of the court in default thereof, to
paid) collect such credits. The usufructuary who
Note: Reimbursement has given security may use the capital he
1. Advance had been made voluntarily has collected in any manner he may deem
a. Upon termination proper. The usufructuary who has not
2. Forced to pay given security shall invest the said capital
 at interest upon agreement with the owner knowledge, that may be prejudicial to the
in default of such agreement, with judicial rights of ownership, and he shall be liable
authorization; and, in every case, with should he not do so, for damages, as if
security sufficient to preserve the integrity they had been caused through his own
of the capital in usufruct. fault.
When notification is required
Usufruct of matured credits 1. When third persons commits acts
1. If usufructuary has given security prejudicial to the rights of the
a. Collection and investments ownership
can be done without the 2. If urgent repairs are needed
approval of the court or the 3. Inventory to be made
naked owner Effect of non-notification
2. If usufructuary has not given security 1. Usufructuary is liable for damages
or exempted 2. Usufructuary cannot even make
a. Can only be done with the extraordinary repairs needed
approval of the court or the 3. If inventory can go on but there are
naked owner discrepancies and omissions in
Ownership of the credit collected inventory
1. Credit belongs to naked owner
2. Usufructuary get the usufruct Obligation to notify owner of prejudicial
Art. 600. The usufructuary of a acts by third persons
mortgaged immovable shall not be
obliged to pay the debt for the security of Note
which the mortgage was 1. Not merely towards naked ownership
constituted.Should the immovable be 2. Also those that are prejudicial to
attached or sold judicially for the payment rights of ownership
of the debt, the owner shall be liable to the Art. 602. The expenses, costs and
usufructuary for whatever the latter may liabilities in suits brought with regard to
lose by reason thereof. the usufruct shall be borne by the
Liability extinguished (naked owner) usufructuary.
1. Constituting a usufruct over an Note:
equivalent estate 1. Article applies when usufruct lost the
2. Payment of a periodical pension case
equivalent to loss 2. Defense of naked ownership is
3. Any other similar way chargeable to the naked owner
Art. 601. The usufructuary shall be
obliged to notify the owner of any act of a
third person, of which he may have
 Art. 603. ​Usufruct is extinguished: (1) By i. Usufruct continues
the death of the usufructuary, unless a (remaining part)
contrary intention clearly appears; (2) By b. Total Loss
the expiration of the period for which it i. Building
was constituted, or by the fulfillment of 1. Land included
any resolutory condition provided in the or not
title creating the usufruct; (3) By merger c. Legal Loss
of the usufruct and ownership in the same i. Expropriation
person; (4) By renunciation of the 6. Termination of the right of the
usufructuary; (5) By the total loss of the person constituting the usufruct
thing in usufruct; (6) By the termination a. If usufructuary has
of the right of the person constituting the sub-usufructuary
usufruct; (7) By prescription. i. Sub-usufructuary dies
ahead of usufructuary
Modes of extinguishment b. Death of the naked owner
1. Death of the usufructuary does not extinguish the
a. Multiple usufruct- ends at usufruct
death of last survivor 7. Prescription
b. Period fixed elapse before a a. Refers to acquisitive
person reaches a certain age prescription
c. Contrary intention Other forms
i. Express 1. Annulment
ii. Implied 2. Rescission
2. Expiration of the period 3. Mutual Withdrawal
a. Usufruct is real property 4. Legal Clauses
period must be recorded a. Abuse or misuse of the
i. To bind third persons usufruct
b. Fifty year expiration i. Must be totally lost
3. Merger of the usufruct and b. Non fulfillment of a
ownership in the same person suspensive condition does not
4. Renunciation of the usufructuary extinguish the usufruct
a. May be expressed or implied i. Usufruct never came
b. No need for naked owner’s
consent Art. 604. If the thing given in usufruct
c. Renunciation is made should be lost only in part, the right shall
gratuitously continue on the remaining part.
i. Fraud of creditors Effect of partial loss
1. May rescind 1. Usufruct continues with remaining
5. Total loss of the thing in usufruct part
a. Partial Loss 2. If partial loss is important
(Considered total loss)
 a. Court determines occupy the land and to make use of the
Art. 605. Usufruct cannot be constituted materials, being obliged to pay to the
in favor of a town, corporation, or usufructuary, during the continuance of
association for more than fifty years. If it the usufruct, the interest upon the sum
has been constituted, and before the equivalent to the value of the land and of
expiration of such period the town is the materials.
abandoned, or the corporation or Rules
association is dissolved, the usufruct shall 1. Usufruct on Both building and land
be extinguished by reason thereof. (Building is destroyed before
Usufruct in favor of juridical or expiration)
non-juridical entities a. Usufruct on building ends
1. Fifty year limitation may use materials
a. Rights of usufruct is i. Usufruct on land
temporary continues
b. Lifetime grant b. Usufructuary is entitled to
Fifty year limitation is not applicable to use the land
trusts c. Naked owner wants to
rebuild but usufructuary
Art. 606. A usufruct granted for the time refuses
that may elapse before a third person i. Usufructuary prevails
attains a certain age, shall subsist for the
number of years specified, even if the 2. Usufruct on the building alone
third person should die before the period (building is destroyed before
expires, unless such usufruct has been expiration)
expressly granted only in consideration of a. Usufruct on building ends but
the existence of such person. may use materials
b. Usufructuary is entitled to
use of land
Art. 607. If the usufruct is constituted on c. Since no usufruct over land
immovable property of which a building i. Naked owner has
forms part, and the latter should be preferential right to
destroyed in any manner whatsoever, the the use of the land
usufructuary shall have a right to make Art. 608. If the usufructuary shares with
use of the land and the materials. The the owner the insurance of the tenement
same rule shall be applied if the usufruct given in usufruct, the former shall in case
is constituted on a building only and the of loss, continue in the enjoyment of the
same should be destroyed. But in such a new building, should one be constructed,
case, if the owner should wish to construct or shall receive the interest on the
another building, he shall have a right to insurance indemnity if the owner does not
 wish to rebuild. Should the usufructuary return either the interest or to
have refused to contribute to the replace the property
insurance, the owner insuring the b. May even deduct interest
tenement alone, the latter shall receive the himself
full amount of the insurance indemnity in i. If naked owner fails
case of loss, saving always the right to object
granted to the usufructuary in the Art. 610. A usufruct is not extinguished
preceding article. by bad use of the thing in usufruct; but if
the abuse should cause considerable injury
Payment of cost of insurance to the owner, the latter may demand that
1. Usufructuary shares with the owner the thing be delivered to him, binding
in insuring the property himself to pay annually to the
2. Usufructuary refuses to contribute to usufructuary the net proceeds of the same,
insurance after deducting the expenses and the
a. Owner gets full insurance compensation which may be allowed him
indemnity in case of loss for its administration.
Effects
Art. 609. ​Should the thing in usufruct be 1. Bad use ( did not cause considerable
expropriated for public use, the owner injury)
shall be obliged either to replace it with a. Usufruct continues
another thing of the same value and of b. Naked owner cannot demand
similar conditions, or to pay the administration
usufructuary the legal interest on the 2. Bad cause (did cause considerable
amount of the indemnity for the whole injury)
period of the usufruct. If the owner a. Usufruct continues
chooses the latter alternative, he shall give b. Naked owner can demand
security for the payment of the interest. delivery and administration
i. But must pay net
Rules in expropriation proceeds
1. Owner alone was given indemnity c. Court will determine whether
a. To replace the equivalent or not there is considerable
thing injury
b. Pay the usufructuary lega
interest Art. 611. A usufruct constituted in favor
2. Both were given indemnity of several persons living at the time of its
a. Usufruct is extinguished constitution shall not be extinguished until
3. Usufructuary alone was given the death of the last survivor.
indemnity Rules in case of multiple usufruct
a. Must give to naked owner 1. Simultaneously
and compel the latter to
 a. Death of the last survivor
terminates the usufruct
2. Successively
a. Death of last survivor
Note
1. Donation
a. The donees-usufructuaries
must be living at the time of
donation
2. Last will
a. Only two successive
usufructuaries
b. Both alive or atleast
conceived
Art. 612. ​Upon the termination of the
usufruct, the thing in usufruct shall be
delivered to the owner, without prejudice
to the right of retention pertaining to the
usufructuary or his heirs for taxes and
extraordinary expenses which should be
reimbursed. After the delivery has been
made, the security or mortgage shall be
cancelled.
Obligations of usufructuary upon
termination
1. Return the property to the naked
owner
2. Expressly granted the right of
retention until he is reimbursed
a. For taxes
3. After delivery
a. Security or mortgage given
shall be cancelled
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