1|Page LAWYERS IN THE MAKING FROM ST.
THOMAS MORE SCHOOL OF LAW AND BUSINESS
BOOK II
PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS b) Ownership
Title I. - CLASSIFICATION OF PROPERTY 1. Public Dominion
PRELIMINARY PROVISIONS 2. Private Dominion
(Based on the book of Paras)
c) Alienability
PROPERTY 1. Within the commerce of man
Considered as an object, is that which is, or 2. Outside the commerce of man
may be, appropriated.
A branch of Civil Law which classifies and d) Existence
defines the different kinds of appropriable 1. Present Property (Res Existentes)
objects, provided for their acquisition and 2. Future Property (Res Futurae)
loss, and in general, treats of the nature and
consequences of real rights. e) Materiality or Immateriality
Two (2) Elements of Right (derecho): 1. Tangible or Corporeal
1. Subjects (persons); and 2. Intangible or Incorporeal
2. Objects (properties).
f) Dependence or Importance
THING PROPERTY 1. Principal
Broader in scope for it Involves not only 2. Accessory
includes both material objects but also
appropriable and non- intangible things, like g) Capability of Substitution
appropriable objects. rights or credits. 1. Fungible
Ex: Planets, stars, sun. Ex: But under certain 2. Non-Fungible
(Since we cannot conditions, when a
appropriate them, they portion of the sun or h) Nature or Definiteness
are not considered star is placed in a 1. Generic
properties. container, it may be 2. Specific
considered.
i) Whether in the Custody of the Court or Free
CLASSIFICATION OF THINGS: 1. In Custodia Legis (in custody of the
a) Res Nullius (Belonging to no one) court)
b) Res Communes (Belonging to everyone) 2. “Free” property
c) Res Alicujus (Belonging to someone)
CHARACTERISTICS OF PROPERTY
Res Nullius a) Utility for the satisfaction of moral or
The reason why it belongs to no one is economic wants;
because it is: b) Susceptibility of appropriation; and
1. Not yet been Appropriated (ex: fish still c) Individuality or substantivity.
swimming in the ocean); or
2. Abandoned (Res Decelictae) by the owner Art. 414. All things which are or may be the object
with the intention of no longer owning of appropriation are considered either:
them.
(1) Immovable or real property; or
Res Communes (2) Movable or personal property. (333)
It is owned by everybody in that their use
and enjoyment are given to all of mankind. (Ex: air, IMPORTANCE OF THE CLASSIFICATION OF
wind, sunlight, starlight.) PROPERTY INTO IMMOVABLES AND MOVABLES
Different provisions of the law govern the
Res Alicujus (Considered Property) acquisition, possession, disposition, loss,
The objects that are tangible or intangible and registration of immovable and
which are owned privately, either in a collective or movables.
individual capacity, and because they can be owned, Ex: Donation of real property must be in a
it is considered a Property. (Ex: Your book, shares of public instrument. (Art. 749)
stock, or parcel of land.) Ex: The donation of an automobile worth
P1.8M needs only to be in a private
CLASSIFICATION OF PROPERTY: instrument. (Art. 748)
a) Mobility and Non-Mobility Ex: Ownership of real property may be
1. Movable or Personal property acquired by the prescription of 30 years
2. Immovable or Real property although there was bad faith. (Art. 1137)
LAW ON PROPERTY
2|Page LAWYERS IN THE MAKING FROM ST. THOMAS MORE SCHOOL OF LAW AND BUSINESS
Ex: Acquisition in bad faith of personal his/her body for any
property needs only 8 years. specified purpose.
To affect 3rd persons, transactions involving o Who may execute a donation? (Any
real property must be recorded in Registry of the following persons may
of Property; there is not so in the case of donate all or any part of the
personal property. decedent’s body for purpose
NOTE: specified, thus: (SSEBG)
There is NO INCOMPLETENESS OF THE 1. Spouse;
CLASSIFICATION. Machines, or removable 2. Son or daughter of legal age;
houses, or transplantable trees may be 3. Either parent;
considered immovable by virtue of their 4. Brother or sister of legal age; or
being attached to an immovable for certain 5. Guardian over the person of the
specified purposes. decedent at the time of his
Under Spanish Civil Code: death.
o Immovables = Bienes Immuebles (Note: The persons authorized may
o Movables = Bienes Muebles make the donation after or
Justinian first classified corporeal property immediately before death.)
(Res Corporales) into: o Manner of Executing a Legacy:
o Immovables = Res Immobiles By will (Only effective upon
o Movables = Res Mobiles testator’s death without
waiting for probate of the
RECLASSIFICATION CONVERSION will.)
The act of specifying The act of changing the If not probated or invalid,
how agricultural lands current use of a piece of the legacy, to the extent
shall be utilized for non- agricultural land into that it was executed in good
agricultural uses such as some other use as faith, is nevertheless valid
residential, industrial, or approved by the Dept. and effective.
commercial. of Agrarian Reform It can also be made in any
(DAR). document other than a will.
The legacy becomes
NOTE: effective upon the death of
The Human Body is neither a real nor a the testator and shall be
personal property, thus, it cannot be respected by and binding
appropriated. It is indeed a thing or a being. upon the testator’s:
While a human is alive, he cannot be the 1. Executor;
object of a contract for he is outside the 2. Administrator;
commerce of man. He may donate his blood 3. Heirs;
or even sell his organs, but he cannot sell 4. Assign;
his body. 5. Successors-in-interest;
ORGAN DONATION ACT OF 1991 (RA 7170) 6. All members of the
o An act authorizing the legacy or family.
***The document (may be
donation of all or part of a human
a card or any paper, must
body after death for specified
be signed by the testator in
purposes.
the presence of two
o Therefore, all or part of a human
witnesses who must sign
body may only be donated after a
the document in his
person’s “death”.
presence.
o Death = Irreversible cessation of
o International sharing of human
circulatory and respiratory
organs or tissues; shall be made
functions or the irreversible
only thru exchange programs duly
cessation of all functions of the
approved by the Department of
entire brain, including the brain
Health.
system.
Any right in the nature of property less than
o Who may execute a Legacy?
Title; (PNB vs. CA) “Interests” is broader and
Any individual, at least 18
more comprehensive than the word “Title”.
years of age and of sound
The terms are not considered synonymous.
mind may give by way of
legacy, to take effect after
his/her death, all or part of
LAW ON PROPERTY
3|Page LAWYERS IN THE MAKING FROM ST. THOMAS MORE SCHOOL OF LAW AND BUSINESS
The enumeration in Article 415 is not
CHAPTER 1 absolute.
IMMOVABLE PROPERTY
Academic Classification of Real Properties
Art. 415. The following are immovable property: Real property by: (NIDA)
1. Nature (like trees and plants)
(1) Land, buildings, roads and constructions of all 2. Incorporation (like a building)
kinds adhered to the soil; 3. Destination or Purpose (like machinery
for direct use in an industry)
(2) Trees, plants, and growing fruits, while they are 4. Analogy (like the right of usufruct)
attached to the land or form an integral part of an
immovable; PAR. 1: “Land, buildings, roads and constructions
of all kinds adhered to the soil.”
(3) Everything attached to an immovable in a fixed a) Land is the best example of an immovable
manner, in such a way that it cannot be separated property. Immovable by its very nature.
therefrom without breaking the material or However, a shovelful of land should be
deterioration of the object; considered a Personal Property for it is no
longer adhered to the soil. If the land is
(4) Statues, reliefs, paintings or other objects for use rented, it is still immovable.
or ornamentation, placed in buildings or on lands by b) Buildings are considered immovable
the owner of the immovable in such a manner that provided that they are of permanent
it reveals the intention to attach them permanently structure adhering to the land. A dismantled
to the tenements; house and/or materials of such house
should be regarded as personal property.
(5) Machinery, receptacles, instruments or c) May a house built on rented land be the
implements intended by the owner of the tenement object of a mortgage? YES, in a real (estate)
for an industry or works which may be carried on in mortgage. It may also be the subject of a
a building or on a piece of land, and which tend chattel mortgage provided two conditions
directly to meet the needs of the said industry or are present:
works; 1. That the parties to the contract so
agree; and
(6) Animal houses, pigeon-houses, beehives, fish 2. That no innocent third party will be
ponds or breeding places of similar nature, in case prejudiced.
their owner has placed them or preserves them d) Building Mortgaged Separately from the
with the intention to have them permanently Land on Which It Has Been Built: in the
attached to the land, and forming a permanent part absence of stipulation, still a building by
of it; the animals in these places are included; itself may be mortgaged apart from the land
on which it has been built. Still considered a
(7) Fertilizer actually used on a piece of land; real estate mortgage for the building in
itself is an immovable property. If registered
(8) Mines, quarries, and slag dumps, while the as a chattel mortgage, it would be void
matter thereof forms part of the bed, and waters insofar a 3rd person is concerned.
either running or stagnant; e) Sale or Mortgage of a Building which Would
Be the Object of Immediate Demolition;
(9) Docks and structures which, though floating, are may be considered a personal property and
intended by their nature and object to remain at a the sale or mortgage thereof would be a
fixed place on a river, lake, or coast; sale of chattel or a chattel mortgage, for the
true object of the contract would be the
(10) Contracts for public works, and servitudes and materials thereof.
other real rights over immovable property. f) Ministerial Duty of the Registrar of Property
(ROP): When parties present to the ROP a
document of chattel mortgage, they must
NOTE: record it even if in his opinion, the object of
The law does not define what properties are the contract is a real property, because his
immovable, it only enumerated such. duty are of a purely ministerial character,
The dictionary defines “property” as: That they are not empowered to determine the
which is firmly fixed, settled, or fastened, nature of any document of which
and while in general, that which is fixed in a registration is sought as a chattel mortgage.
definite place. g) Constructions of All Kinds: The attachment
must be more or less permanent. (Ex:
Fences and Rail-tracks)
LAW ON PROPERTY
4|Page LAWYERS IN THE MAKING FROM ST. THOMAS MORE SCHOOL OF LAW AND BUSINESS
In Roman Law, thing included in Par.3 were
PAR. 2: “Trees, plants and growing crops, while called Res Vinta.
they are attached to the land or form an integral Distinction between Par. 3 and Par.4:
part of an immovable.”
a) Trees and Plants : PAR. 3 PAR. 4
By nature – If spontaneous products of 1) Cannot be separated 1) Can be separated
soil; and from immovable from immovable
By incorporation – if they were planted without breaking or without breaking or
through labor. deterioration. deterioration.
Once detached or uprooted – personal 2) Need not be placed 2) Must be placed by the
property. by the owner. owner, or by his
But if coming from a timber land – still 3) Real property by agent, express or
forms as an integral part, thus, Incorporation. implied.
immovable. 3) Real property by
Trees blown in typhoons – remain part Incorporation and
of the land upon which they rest, thus, Destination.
considered real property.
b) Registration of land containing trees and What if?
plants: The property referred to in Par. 3 is
If no claimants – trees and plants are temporarily removed, but with the intention to be
considered to be annexed to the land, replaced, should it be considered a real or personal
thus, belonging to the new owner. property? Answer: It is considered a personal
If there are claimants – they become property for the incorporation has ceased.
the property of the person to whom
the land is adjudicated. PAR. 4: “Statues, reliefs, paintings or other objects
c) Growing Crops on One’s Own Land: for use or ornamentation, placed in the building or
Growing crops are considered real on land by the owner of the immovable in such a
property by incorporation. manner that it reveals the intention to attach them
However, under Chattel Mortgage Law, permanently to the tenements.”
it may be considered personal
property, and thus be subject to chattel a) Objects must be placed by the owner of the
mortgage. immovable property and not by the owner
Moreover, the sale of growing crops of the object.
should be considered a sale of personal b) The owner can act through his agent or, if
property. (If harvested, gathered and insane, through his appointed guardian.
delivered) But jurisprudence for the c) If placed by tenants, object remains as a
selling of coconut trees help that it personal property for the purposes of the
remains as a real property, as long as Chattel Mortgage Law.
the trees are still attached to the land
or form and integral part thereof. What if?
d) Growing Crops on Another’s Land: During my house construction, I asked my
In the case of Usufructuary, a possessor neighbour to keep for the meantime my painting
or a tenant should be considered a real with frame, and the neighbour attaches said
property. *IMPORTANT THING* is that painting to own walls. Shout it be considered as a
it is still attached to the land. real or personal property? Answer: Personal
If severed, they become personal property. Lack of intent to “permanently” attach it
property. to neighbour’s wall.
e) Synonyms: “GROWING CROPS”
Standing Crops PAR. 5: “Machinery, receptacles, instruments, or
Ungathered Fruits implements intended by the owner of the
Growing Fruits tenement for an industry or works which may be
PAR. 3: “Everything attached to an immovable in a carried on in a building or on a piece of land, and
fixed manner, in such a way that it cannot be which tend directly to meet the needs of the said
separated therefrom without breaking the industry or works.”
material or deterioration of the object.”
Essential Requisites:
NOTE: 1) The placing must be placed by the owner of the
The injury or breakage or deterioration in tenement, his agent, or his duly authorized
case of separation must be SUBSTANTIAL. legal representative;
LAW ON PROPERTY
5|Page LAWYERS IN THE MAKING FROM ST. THOMAS MORE SCHOOL OF LAW AND BUSINESS
2) The industry or works must be carried on in the PAR. 8: “Mines, quarries, and slag dumps while the
building or on the land. A transportation matter thereof forms part of the bed, and waters,
business is not carried on in a building or in the either running or stagnant.”
compound.
3) The machines, etc., must tend directly to meet NOTE:
the needs of said industry or works; and Mines, including minerals, are real property.
4) The machines must be essential and principal If extracted, already considered chattels.
elements in the industry and not merely “Slag dump” is the dirt and soil taken from a
incidental. mine and piled upon the surface of the
ground. Inside the “dump” can be found the
NOTE: minerals.
Par. 5 refers to real property by destination “Waters” referred to are those still attached
or purpose. to or running thru the soil and ground. But
Effects of separation: if machine is still in water itself distinguished from “waters” is
the building but is no longer used in the personal property.
industry, machine reverts to the condition Canals, rivers, lakes, and such part of the
of a chattel. But if temporarily separated, sea as may be the object of appropriation,
continues as a real property, not by are classified as real property.
incorporation but, by destination.
PAR. 9: “Docks and structures which, though
PAR. 6: “Animal houses, pigeon-houses, beehives, floating, are intended by their nature and object to
fishponds or breeding places of similar nature, in remain at a fixed place on a river, or coast.”
case their owner has placed them with the
intention to have them permanently attached to a) “Floating house” tied to ashore or bank
the land, and forming a permanent part of it; the used as residence is considered real
animals in these places are included.” property considering that the waters on
which it floats is immovable. But, if the
NOTE: floating house makes a journey from place
“Houses” referred to may already be to place, it assumes the category of a
deemed included in Par.1 when speaking of Vessel.
“construction of all kinds adhered to the b) “Vessels” Are considered personal property
soil.” as a matter of fact for it is very movable and
The phrase “The animals in these places are may be subject to chattel mortgage.
included.” was already eliminated by the However, a chattel mortgage of a vessel
Code Commission as to avoid confusion on must not be registered with the R.O.D. or
the matter. Property, but in the record of the Collector
If animals are temporarily outside, still of Customs at the Port of Entry.
considered real property as long as the c) Although vessel are personal property, they
intent to return is present. partake to a certain extent of the nature
For the purposes of criminal law, they are and conditions of a Real Property because
considered personal property and may be of their value and importance in the world
the object of theft or robbery. of commerce.
Alienation of animals; if onerous, the Bar Qs:
transaction is considered an alienation of Is the steamship President Cleveland
personal property. personal or real property? ANSWER: Personal
Temporary Structures of Cages: (Bird Cage) property for it can be moved from place to place,
which may be carried from place to place, is although it PARTAKE THE NATURE of real property
a chattel. The birds inside are also chattel. in view of its importance in the world of commerce.
PAR. 7: “Fertilizers actually used on a piece of PAR. 10: “Contracts for public works, and servitude
land.” and other real rights over immovable property.”
NOTE: NOTE:
Fertilizers still in the barn, or on ground but Under the old Civil Code, the words
wrapped inside cover, are still considered “Administrative concessions for public
personal property. They have not yet been works” were used instead of “contracts for
“actually” used or spread over the land. public works.”
Properties referred to in Par. 10 are not
material thing but rights, which are
necessarily intangible. The piece of paper of
LAW ON PROPERTY
6|Page LAWYERS IN THE MAKING FROM ST. THOMAS MORE SCHOOL OF LAW AND BUSINESS
the written agreement is a personal 3) If finally, the object is not one of those
property, but the contract itself is a right, enumerated or included in Art. 415 (test by
thus, a real property. exclusion).
Presbitero vs. Fernandez: ***Inevitable conclusion is that the property is
o Issue: Are “sugar quotas” real or a Personal Property.
personal property? ***Take Note: Test of exclusion is superior to
o Held: They are real property, for the test of description.
they are by law considered “real
rights over immovable property” NOTE:
just like servitudes and easements. A patent, a copyright, the right to an
Properties or rights referred to in Par. 10 invention are example of intellectual
are considered real property by analogy. property which should be considered as a
The real right of use and habitation (Arts. personal property.
523-529, Old CC) and the real right of censo “Personal Effects” are personal property but
[(ground rents) Arts. 1604-1994, Old CC) not all personal property is personal effects.
have been eliminated in the new Civil Code, Personal effects include only such tangible
because according to the Code Commission, property as applied to a person and cannot
they have never been referred to in include automobiles, although they indeed
Philippine contracts and wills. are personal property.
CHAPTER 2 Art. 417. The following are also considered as
MOVABLE PROPERTY personal property:
Art. 416. The following things are deemed to be (1) Obligations and actions which have for their
personal property: object movables or demandable sums; and
(1) Those movables susceptible of appropriation (2) Shares of stock of agricultural, commercial and
which are not included in the preceding article; industrial entities, although they may have real
estate. (336a)
(2) Real property which by any special provision of
law is considered as personal property;
PAR. 1: Example 1: if somebody steals my car, my
(3) Forces of nature which are brought under right to bring an action to recover is a personal
control by science; and property by itself. This is because, although the law
uses the term “obligations,” same really refers to
rights or credits, but if credit has not matured, still
(4) In general, all things which can be transported
considered a personal property. However, if my
from place to place without impairment of the real
right to recover involved a piece of land, it is
property to which they are fixed.
considered as a real property because the object of
my right is an immovable.
EXAMPLES: Example 2: A promissory note is a personal
PAR.1: A fountain pen; a piano; animals. property, but a mortgage on real estate is real
PAR.2: Growing crops for the purposes of property by analogy.
chattel mortgage law; machinery placed on
a tenement by a tenant who did not act as PAR. 2: Example 1: Share of Stocks in a mining
the agent of the tenement owner. corporation is personal property, but the gold mind
PAR.3: Electricity, gas, light, nitrogen. and the land of the corporation itself are regarded
PAR.4: Machinery not attached to land nor to as a real property by the law.
needed for the carrying on of an industry
conducted therein; portable radio; a laptop IS MONEY MERCHANDISE?
computer; a diploma hanging on the wall. When it is in domestic circulation, money is
legal tender and is, therefore, NOT merchandise.
Three (3) Tests to determine whether a property is However, if attempted to be exported or smuggled,
Movable or Immovable: it is deemed to be taken out of domestic circulation,
1) If the property is capable of being carried thus, now considered a merchandise or commodity.
from place to place (test by description);
2) If such change in location can be made Note, however, whether money is legal
without injuring the real property to which tender or not, whether merchandise or not, it is still
it may in the meantime be attached (test by a Personal Property.
description); and
Art. 418. Movable property is either consumable or
LAW ON PROPERTY
7|Page LAWYERS IN THE MAKING FROM ST. THOMAS MORE SCHOOL OF LAW AND BUSINESS
non-consumable. To the first class belong those
movables which cannot be used in a manner (2) Those which belong to the State, without being
appropriate to their nature without their being for public use, and are intended for some public
consumed; to the second class belong all the others. service or for the development of the national
(337) wealth. (339a)
Kinds of Movable Property: (CN)
a) Consumable – this cannot be used
according to its nature without it being Art. 421. All other property of the State, which is
consumed. not of the character stated in the preceding article,
b) Non-Consumable – Any other kind of is patrimonial property. (340a)
movable property.
Art. 422. Property of public dominion, when no
Classifications of Movable Property: (NI) longer intended for public use or for public service,
a) According to their Nature – Consumable shall form part of the patrimonial property of the
and non-consumable. State. (341a)
b) According to the Intention of the parties –
Fungible and Non-fungible.
Art. 423. The property of provinces, cities, and
NOTE: municipalities is divided into property for public use
1) When you say Non-Fungible it means that it and patrimonial property. (343)
is agreed that the identical thing be
returned, even though by nature it is
Art. 424. Property for public use, in the provinces,
consumable. (Ex: I will borrow a sack of rice
cities, and municipalities, consist of the provincial
for display purposes only.) The rice is
roads, city streets, municipal streets, the squares,
considered here as non-fungible.
fountains, public waters, promenades, and public
2) When we say Fungible it means that it is
works for public service paid for by said provinces,
agreed that the equivalent be returned. (Ex:
cities, or municipalities.
I borrow rice to consume and promise to
return an equivalent amount of money.)
All other property possessed by any of them is
3) In the law of credit transactions:
patrimonial and shall be governed by this Code,
a) Loan of rice for consumption – simple
without prejudice to the provisions of special
loan or mutuum; and
laws. (344a)
b) Loan of rice for exhibition –
commodatum.
4) The Civil Code uses the words Art. 425. Property of private ownership, besides the
“consumable” and “fungible” patrimonial property of the State, provinces, cities,
interchangeably. and municipalities, consists of all property
5) It is evident, however, that fungibles are belonging to private persons, either individually or
those replaceable by an equal quality and collectively. (345a)
quantity, either by the nature of things, or
by common agreement. If irreplaceable,
because the identical object must be
returned, they are referred to as non-
fungibles.
CHAPTER 3
PROPERTY IN RELATION TO THE PERSON TO
WHOM IT BELONGS
Art. 419. Property is either of public dominion or of
private ownership. (338)
Art. 420. The following things are property of public
dominion:
(1) Those intended for public use, such as roads,
canals, rivers, torrents, ports and bridges
constructed by the State, banks, shores, roadsteads,
and others of similar character;
LAW ON PROPERTY
8|Page LAWYERS IN THE MAKING FROM ST. THOMAS MORE SCHOOL OF LAW AND BUSINESS
LAW ON PROPERTY
