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POSSESSION

POSSESSION

WHAT IS POSSESSION?

Art. 523. Possesion is the holding of a thing or the enjoyment of a right.

Art. 530. Only things and rights which are susceptible of being appropriated may be the object of possession.

WHAT ARE THE ELEMENTS OF POSSESSION?

1. Holding or control of a thing or right.
2. Deliberate intention to possess (animus possidendi)
3. Possession is by virtue of one’s own right

WHAT ARE THE CLASSES OF POSSESSION?

Art. 524. Possession may be exercised in one’s own name or in that of another.

Art. 525. The possession of things or rights may be had in one of two concepts: either in the concept of owner or in that of the holder of the thing or right to keep or enjoy it, the ownership pertaining to another person.

Art. 540. Only the possession acquired and enjoyed in the concept of owner can serve as title for acquiring dominion.

Art. 526. He is deemed a possessor in good faith who is not aware that there exists in his title or mode of acquisition any flaw which invalidates it.

            He is deemed a possessor in bad faith who possesses in any case contrary to the foregoing.

            Mistake upon a doubtful or difficult question of law may be the basis of good faith.

Art. 527.  Good faith is always presumed, and upon him who alleges bad faith on the part of a possessor rests the burden of proof.

Art. 528. Possession acquired in good faith does not lose this character except in the case and from the moment facts exist which show that the possessor is not unaware that he possesses the thing improperly or wronglfully.

WHAT ARE THE PRESUMPTIONS REGARDING POSSESSION?

Art. 527.  Good faith is always presumed, and upon him who alleges bad faith on the part of a possessor rests the burden of proof.

Art. 529. It is presumed that possession continues to be enjoyed on the same character in which it was acquired, until the contrary is proved.

Art. 541. A possessor in the concept of owner has in his favor the legal presumption that he possesses with a just title and he cannot be obliged to show or prove it.

Art. 542. The possession of real property presumes that of the movables therein, so long as it is not shown or proved that they should be excluded.

Art. 554. A present possessor who shows his possession at some previous time, is presumed to have held possession also during the intermediate period, in the absence of proof to the contrary.

HOW IS POSSESSION ACQUIRED? 

Art. 531. Possession is acquired by the material occupation of a thing or the exercise of a right, or by the fact that it is subject to the action of our will, or by the proper acts and legal formalities established for acquiring such right.

Art. 532. Possession may be acquired by the same person who is to enjoy it, by his legal representative, by his agent, or by any person without any power whatever; but in the last case, the possession shall not be considered as acquired until the person in whose name the act of possession was executed has ratified the same, without prejudice to the juridical consequences of negotiorum gestio in a proper case.

WHEN DOES AN HEIR ACQUIRE POSSESSION OVER THE PROPERTY HE INHERITED?

Art. 533. The possession of hereditary property is deemed transmitted to the heir without interruption and from the moment of the death of the decedent, in case the inheritance is accepted.

            One who validly renounces an inheritance is deemed never to have possessed the same.

Art. 534. One who succeeds by hereditary title shall not suffer the consequences of the wrongful possession of the decedent, if it is not shown that he was aware of the flaws affecting it; but the effects of possession in good faith shall not benefit him except from the date of death of the decedent.

MAY POSSESSION BE ACQUIRED BY MINORS AND OTHER INCAPACITATED PERSONS?

Art. 535. Minors and incapacitated persons may acquire the possession of things; but they need the assistance of their legal representatives in order to exercise the rights which from the possession arise in their favor.

WHAT ARE THE INSTANCES WHEN LEGAL POSSESSION (RIGHT TO POSSESSION) CANNOT BE ACQUIRED?

Art. 536. In no case may possession be acquired through force or intimidation as long as there is a possessor who objects thereto. He who believes that he has an action or right to deprive another of the holding of a thing, must invoke the aid of the competent court, if the holder should refuse to deliver the thing.

Art. 537. Acts merely tolerated,and those executed clandestinely and without the knowledge of the possessor of a thing, or by violence, do not affect possession.

MAY POSSESSION AS A FACT BE ORGANIZED AT THE SAME TIME IN TWO DIFFERENT PERSONLAITIES?

Art. 538. Possession as a fact cannot be recognized at the same time in two different personalities except in the case of co-possession. Should a question arise regarding the fact of possession, the present possessor shall be preferred; if there are two possessors, the one longer in possession, if the dates of possession are the same, the one who presents a title; and if all these conditions are equal, the thing shall be placed in judicial deposit pending determination of its possession or ownership through proper proceedings.

WHAT ARE THE RIGHTS OF A POSSESSOR?

1. RIGHT TO BE RESPECTED IN HIS POSSESION

Art. 539. Every possessor has a right to be respected in his possession; and should he be disturbed therein he shall be protected in or restored to said possession by the means extablished by the laws and the rules of court.

            A possessor deprived of his possession through forcible entry may within ten days from the filing of the complaint present a motion to secure from the competent court, in the action for forcible entry, a writ of preliminary mandatory injunction to restore him in his possession. The court shall decide the motion within thirty (30) days from filing thereof.

Art. 541. A possessor in the concept of owner has in his favor the legal presumption that he possesses with a just title and he cannot be obliged to show or prove it.

2. RIGHT OF EACH CO-OWNER TO BE DEEMED TO HAVE EXCLUSIVELY POSSESSED THE PART ALLOTTED TO HIM FOR THE ENTIRE PERIOD THE CO-POSSESSION LASTED.

Art. 543. Each one of the participants of a thing possessed in common shall be deemed to have exclusively possessed the part which may be allotted to him upon the division thereof, for the entire period during which the co-possession lasted. Interrruption in the possession of the whole or a part of a thing possessed in common shall be to the prejudice of all the possessors. However, in case of civil interruption, the rules of court shall apply.

3. RIGHT TO THE FRUITS OF THE PROPERTY HE POSSESSES.

Art. 545. If at the time the good faith ceases, there should be any natural or industrial fruits, the possessor shall have a right to a part of the expenses of cultivation, and to a part of the net harvest, both in proportion to the time of possession.

            the charges shall be divided on the same basis by the two possessors.

            The owner of the thing may, should he so desire, give the possessor in good faith the right to finish the cultivation and gathering of the growing fruits,as an indemnity for his part of the expenses of cultivation and gathering of the the growing fruits, as an indemnity for his part of the expenses of cultivation and the net proceeds; the possessor in good faith who for any reason whatever should refuse to accept this concession, shall lose the right to be indemnified in any other manner.

Art. 449. He who builds, plants or sows in bad faith on the land of another, loses what is built, planted or sown without right to indemnity.

Art. 544.  A possessor in good faith is entitled to the fruits received before the possession is legally interrupted.

            Natural and industrial fruits ate considered received from the time they are gathered or severed.

            Civil Fruits are deemed to accrue daily and belong to the possessor in good faith on that proportion.

Art. 549. The possessor in bad faith shall reimburse the fruits received and those which the legitimate possessor could have received, and shall have a right only to the expenses mentioned in paragraph 1 of Article 546 and in Article 443. The expenses incurred in improvements for pure luxury or mere pleasure shall not be refunded to the possessor in bad faith; but he may remove the objects for which such expenses have been incurred, provided that the thing suffers no injury thereby,and that the lawful possessor does not prefer to retain them by paying the value they may have at the time he enters into possession.

4. RIGHT TO RECOVER POSSESSION UNJUSTLY LOST

Art. 539. Every possessor has  a right to be respected in his possession; and should he be disturbed therein he shall be protected in or restored to said possession by the means established by the laws and the rules of court.

            A possessor deprived of his possession through forcible entry may within ten days from the filing of the compliant present a motion to secure from the competent court, in the action for forcible entry, a writ of preliminary mandatory injunction to restore him in his possession. The court shall decide the motion within thirty (30) days from filing thereof. (446a)

5. RIGHT ON THE EXPENSES INCURRED ON THE PROPERTY UPON RECOVERY BY THE RIGHTFUL POSSESSOR OR OWNER

1. Necessary expenses – Necessary expenses shall be refunded to every possessor; but only the possessor in good faith may retain the thing until he has been reimbursed therefor.
2. Useful expenses – Useful expenses shall be refunded only to the possessor in good faith with the same right of retention, the person who has defeated him in the possession having the option of refunding the amount of the expenses or of paying the increase in value which the thing may have acquired by reason thereof.

Art. 547. if the useful improvements can be removed without damage to the principal thing, the possessor in good faith may remove them, unless the person who recovers the possession exercises the option under paragraph 2 of the preceding article.

1. Expenses for pure luxury or mere pleasure

Art. 548. Expenses for pure luxury or mere pleasure shall not be refunded to the possessor in good faith; but he may remove the ornaments with which he has embellished the principal thing if it suffers no injury thereby,and if his successor in the possession does not prefer to refund the amount expended.

Art. 549. The possessor in bad faith shall reimburse the fruits received and those which the legitimate possessor could have received, and shall have a right only to the expenses mentioned in paragrapgh 1 of Art. 546 and in Art. 443. The expenses incurred in improvements for pure luxury or mere pleasure shall not be refunded to the possessor in bad faith; but he may remove the objects for which such expenses have been incurred, provided that the thing suffers no injury thereby, and that the lawful possessor does not prefer to retain them by paying the value they may have at the time he enters into possession.

6. RIGHT ON THE IMPROVEMENTS CAUSED BY NATURE OR TIME

Art. 551. Improvements caused by Nature or time shall or time shall always inure to the benefit of the person who has succeeded in recovering possession.  

7. RIGHT ON THE COST OF LITIGATION

Art. 550. The costs of litigation over the property shall be borne by every possessor.

WHAT IS THE LIABILITY OF THE POSSESSOR TO THE RIGHTFUL POSSESSOR OR OWNED IN CASE OF LOSS OR DETERIORATION?

Art. 552. A possessor in good faith shall not be liable for the deterioration or loss of the thing possessed, except in cases in which it is proved that he has acted with fraudulent intent or negligence, after the judicial summons.

            A possessor in bad faith shall be laible for deterioration or loss in every case, even if caused by a fortuitous event.

WHEN IS POSSESSION OF MOVABLES EQUIVALENT TO TITLE?

Art. 559. The possession of movable property acquired in good faith is equivalent to a title. Nevertheless, one who has lost any movable or has been unlawfully deprived thereof, may recover it from the person in possession of the same.

            If the possessor of a movable lost or of which the owner has been unlawfully deprived, has acquired it in good faith at a public sale, the owner cannot obtain its return without reimbursing the price paid therefor.

HOW IS POSSESSION EXTINGUISED?

Art. 555. A possessor may lose his possession:

(1)By the abandonment of the thing;

(2)By an assignment made to another either by onerous or gratuitous title;

(3)By the destruction or total loss of the thing, or because it goes out of commerce;

(4)By the possession of another, subject to the provisions of Article 537, if the new possession has lasted longer than one year. But the real right of possession is not lost till after the lapse of ten years. (460a)

Article 556.The possession of movables is not deemed lost so long as they remain under the control of the possessor, even though for the time being he may not know their whereabouts. (461)

Article 561.One who recovers, according to law, possession unjustly, shall be deemed for all purposes which may redound to his benefit to have enjoyed it without interruption. (467)

When possession is recovered by the owner, is he obligated to reimburse the expenses incurred by the possessor in acquiring the?

1. owner may recover without reimbursement
2. from possessor in bad faith
3. from possessor in good faith when the owner lost property or was unlawfully deprived of it
4. owner may recover but should reimburse
5. possessor acquired the property in good faith at a public auction sale.
6. Owner cannot recover even if he offers to reimburse
   1. possessor acquire in good faith by purchase from a merchant’s store, or in fairs, or market.
   2. possessor is an innocent purchases for value and holder of a negotiable document of title to the goods
   3. owner is guilty of estoppels

Cases: Imuan vs. cereno

            Semirara Coal Corp vs. HGL Dev’t corp

            Calicdan vs. Cendana

            Lubos vs. Galupo

            Cequena vs. Bolante

            PNB vs. CA

            Caniza vs. CA

            Habagat Grill v. DMC

CO-OWNERSHIP

TITLE III. CO-OWNERSHIP

WHAT IS CO-OWNERSHIP?

Art. 484. There is co-ownership whenever the ownership of an undivided thing or right belongs to different persons.

                        In default of contracts, or special provisions, co-ownership shall be governed by the provisions of this Title.

Characteristics of co-ownership:

1. Plurality of subjects or owners
2. Unity of Object
3. Recognition of ideal shares/physical whole divided into ideal shares
4. Each share is definite in amount but is not physically segregated from the rest.
5. Regarding the physical whole, each co-owner must respect each other in the common use, enjoyment, or preservation of the physical whole.
6. Regarding the ideal share, each co-owner holds absolute control over the same.
7. Not a juridical person
8. Co-owner is in a sense a trustee for other co-owners.

WHAT GOVERNS CO-OWNERSHIP?

1. Contract
2. Special laws
3. Provisions on co-ownership in the civil code

HOW DOES CO-OWNERSHIP DIFFER FROM PARTNERSHIP

HOW DOES CO-OWNERSHIP DIFFER FROM CONJUGAL PARTNERSHIP?

WHAT RULES GOVERN THE IDEAL SHARES OF CO-OWNERS?

Art. 485. The shares of the co-owners, in the benefits as well as in the charges, shall be proportional to their respective interests. Any stipulation in a contract to the contrary shall be void.

            The portions belonging to the co-owners in the co-ownership shall be presumed equal, unless the contrary is proved.

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 enjoyment, except when personal rights are involved. But the effect of the alienation or the mortgage, with respect to the co-owners, shall be limited to the portion which may be allotted to him in the division upon the termination of the co-ownership.

Art. 1620. A co-owner of a thing may exercise the right of redemption in case the shares of all the other co-owners or any of them, are sold to a third person. If the price of the alienation is grossly excessive, the redemptioner shall pay only a reasonable one.

            Should two or more co-owners desire to exercise the right of redemption, they may only do so in proportion to the share they may respectively have in the thing owned in common.

WHAT RIGHT DOES A CO-OWNER HAVE IN THE USE OF THE PROPERTY OWNED IN COMMON? MAY ANY ONE OF THE CO-OWNERS CHANGE THE PURPOSE OF THE CO-OWNERSHIP?  

Art. 486. Each co-owner may use the thing owned in common, provided he does so in accordance with the purpose for which it is intended and in such a way as not to injure the interest of co-ownership or prevent the other co-owners from using it according to their rights. The purpose of the co-ownership may be changed by agreement, express or implied.

WHO AMONG THE PARTNERS HAS THE RIGHT TO BRING AN ACTION FOR EJECTMENT?

Art. 487. Any one of the co-owners may bring an action in ejectment.

WHAT IS THE SHARE OF THE CO-OWNERS IN THE BENEFITS AND CHARGES?

Art. 485. The shares of the co-owners, in the benefits as well as in the charges, shall be proportional to their respective interests. Any stipulation in a contract to the contrary shall be void.

            The portions belonging to the co-owners in the co-ownership shall be presumed equal, unless the contrary is proved.

• IN PROPORTION TO THEIR RESPECTIVE INTERESTS
• CONTRARY STIPULATION IS VOID

WHAT IS THE RIGHT OF THE CO-OWNERS WITH RESPECT TO THE EXPENSES OF PRESERVATION OF THE COMMON PROPERTY?

Art. 488. Each co-owner shall have a right to compel the other co-owners to contribute to the expenses of preservation of the thing or right owned in common and to the taxes. Any one of the latter may excempt himself from this obligation by renouncing so much of his undivided interest as may be equivalent to his share of the expenses and taxes. No such waiver shall be made if it is prejudicial to the co-ownership.

Art. 489. Repairs for preservation may be made at the will of one of the co-owners , but he must, if practicable, first notify his co-owners of the necessity for such repairs. Expenses to improve or embellish the thing shall be decided upon by a majority as determined in Article 492.

MAY A CO-OWNER IMPROVE OR EMBELLISH THE THING OWNED IN COMMON (ACTS OF ADMINISTRATION)?

Art. 489. Repairs for preservation may be made at the will of one of the co-owners , but he must, if practicable, first notify his co-owners of the necessity for such repairs. Expenses to improve or embellish the thing shall be decided upon by a majority as determined in Article 492.

Art. 492. For the administration and better enjoyment of the thing owned in common, the resolutions of the majority of the co-owners shall be binding.

            There shall be no majority unless the resolution is approved by the co-owners who represent the controlling interest in the object of the co-ownership.

            Should there be no majority, or should the resolution of the majority be seriously prejudicial to those interested in the property owned in common, the court, at the instance of an interested party, shall 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 preceeding provisions shall apply only to the part owned in common.

HOW IS CO-OWNERSHIP EXTINGUISHED?

1. Acquisition of the common property by one person.
2. merger or consolidation in one co-owner of all the shares of the other co-owners
3. destruction or lose of the common property
4. prescription in favor of co-owner or a third person

WHAT IS PARTITION?

Article 494. No co-owner shall be obliged to remain in the co-ownership. Each co-owner may demand at any time the partition of the thing owned in common, insofar as his share is concerned.

            Nevertheless, an agreement, to keep the thing undivided for a certain period of time, not exceeding ten years shall be 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 by law.

            No prescription shall run in favor of a co-owner or co-heir against his co-owners or co-heirs so long as he expressly or impliedly recognizes the co-ownership.

HOW IS PARTITION EFFECTED?

Art. 496. Partition may be made by agreement between the parties or by judicial proceedings. Partition shall be governed by the Rules of Court insofar as they are consistent with this code.

• EXTRAJUDICIAL (AGREEMENT OF THE PARTIES)
• JUDICIAL PROCEEDINGS

DOES THE RIGHT OF THE CO-OWNERS TO DEMAND PARTITION PRESCRIBED?

Article 494. No co-owner shall be obliged to remain in the co-ownership. Each co-owner may demand at any time the partition of the thing owned in common, insofar as his share is concerned.

            Nevertheless, an agreement, to keep the thing undivided for a certain period of time, not exceeding ten years shall be 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 by law.

            No prescription shall run in favor of a co-owner or co-heir against his co-owners or co-heirs so long as he expressly or impliedly recognizes the co-ownership.

MAY A CO-OWNER ACQUIRE PROPERTY OWNED IN COMMON THROUGH PRESCRIPTION?

Art. 494 (last paragraph) No prescription shall run in favor of a co-owner or co-heir against his co-owners or co-heirs so long as he expressly or impliedly recognizes the co-ownership.

WHAT ARE THE LIMITATIONS ON THE RIGHT OF THE CO-OWNERS TO DEMAND PARTITION?

Article 494. No co-owner shall be obliged to remain in the co-ownership. Each co-owner may demand at any time the partition of the thing owned in common, insofar as his share is concerned.

            Nevertheless, an agreement, to keep the thing undivided for a certain period of time, not exceeding ten years shall be 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 by law.

            No prescription shall run in favor of a co-owner or co-heir against his co-owners or co-heirs so long as he expressly or impliedly recognizes the co-ownership.

Art. 495. Notwithstanding the provisions of the preceeding article, the co-owners cannot demand a physical division of the thing owned in common, when to do so would render it unserviceable for the use which it is intended. But the co-ownership may be terminated in accordance with Article 498.

Art. 498. Whenever the thing is essentially 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.

1. Partition is prohibited by agreement of co-owners for a period not exceeding ten years.
2. Partition is prohibited by donor/testator for a period not exceeding twenty years.
3. Partition is prohibited by law, i.e. conjugal partnership, family home, party walls
4. Property is essentially indivisible or physical partition would render property useless.

WHAT ARE THE RIGHTS OF THE CREDITORS OR ASSIGNEES OF THE CO-OWNERS IN CASE OF PARTITION?

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 its being effected without their concurrence. But they cannot impugn any partition already executed, unless there has been fraud, or in case it was made notwithstanding a formal opposition presented to prevent it, without prejudice to the right of the debtor or assignor to maintain its validity.

WHAT ARE THE RIGHTS OF THIRD PERSONS IN CASE OF PARTITION?

Art. 499. The partition of a thing owned in common shall not prejudice third persons, who shall retain the rights of mortgage, servitude, or any other real rights belonging to them before the division was made. Personal rights pertaining to third persons against the co-ownership shall also remain in force, notwithstanding the partition.

WHAT ARE THE EFFECTS OR CONSEQUENCES OF PARTITION?

Art. 500. Upon partition, there shall be a mutual accounting for benefits received and reimbursements for expenses made. Likewise, each co-owner shall pay for damages caused by reason of his negligence or fraud.

Art. 501. Every co-owner shall, after partition, be liable for defects of title and quality of the portion assigned to each of the other co-owners.

WHAT IS PERPENDICULAR CO-OWNERSHIP?

Art. 490. Whenever the different stories of a house belongs to different owners, if the titles of ownership do not specify the terms under which they should contribute to the necessary expenses and there exists no agreement on the subject, the following rules shall be observed:

1. The main and party walls, the roof and the other things used in common, shall be preserved at the expense of all the owners in proportion to the value of the story belonging to each:
2. Each owner shall bear the cost of maintening the floor of his story; the floor of the entrance, front door, common yard and sanitary works common to all, shall be maintained at the expense of all the owners prorate;
3. The stairs from the entrance to the first story shall be maintained at the expense to the first story shall be maintained at the expense of all the owners pro rata, with the exception of the owner of the ground floor; the stairs from the first to the second story shall be preserved at the expense of all, except the owner of the ground floor and the owner of the first story; and so on successively.

SUMMARY OF CONSEQUENCES OF CO-OWENRSHIP?

1. Each co-owner does not own a definite portion of the physical whole.
2. Each co-owner cannot sell the entire thing. If one of them sells, sale is valid only as to his rightful share.
3. Each co-owner can sell his ideal share, even without permission of others provided no personal rights are involved.
4. Other co-owners do not have a say on who should buy the ideal share sold by a co-owner, subject only to their right of redemption.
5. Each co-owner may bring an action for ejectment for the benefit of the co-ownership.
6. Share of each co-owner in the fruits and charges is proportionate to his ideal share. Contrary agreement is void.
7. Share is presumed equal unless contrary is proven.
8. A larger share does not mean larger right to use property.
9. Each co-owner may use property as long as he does not prejudice the interest of the co-ownership and does not prevent others from its use.

ACCESSION

ACCESSION

WHAT IS RIGHT OF ACCESSION

            Art. 440. The ownership of property gives the right by accession to everything which is produced thereby , or which is incorporated or attached  thereto, either naturally or artificially.

Is accession a mode of acquiring ownership?

            No because in Article 712, accession is not one of those listed  modes of acquiring ownership.

            Art. 712. Ownership is acquired by occupation and by intellectual creation.

                            Ownership and other real right over property are acquired and transmitted by law, by donation, by testate and intestate succession, and in consequence of certain contracts, by tradition.

                            They may also be acquired by means of prescription.

Modes of acquiring Ownership:

1. Occupation
2. Intellectual creation
3. Law
4. Donation
5. Succession
6. Tradition, as a consequence of certain contracts
7. Prescription

What are the kinds of accession?

1. Accession discreta – to the fruits, a right of property owner to everything which is produced therby.

1. Natural fruits
2. Industrial fruits
3. Civil fruits

2. Accession Continua – the right of a property owner to everything which is incorporated or attached thereto , either naturally or artificially.

1. With reference to real property
   1. Accession industrial
      1. Building
      2. Planting
      3. Sowing
   2. Accession natural
      1. Alluvium
      2. Avulsion
      3. Change of course of rivers
      4. Formation of islands
   3. With respect to personal property
      1. Adjunction or conjunction
         1. Engraftment
         2. Attachment
         3. Weaving
         4. Painting
         5. Writing
      2. Mixture ( confusion – liquids; commixtion-solids)

• Specification

What is Accession discreta?

Art. 440. The ownership of property gives the right by accession to everything which is produced thereby , or which is incorporated or attached  thereto , either naturally or artificially.

Art. 442. Natural fruits are the spontaneous products of the soil, and the young and other products of animals.

                        Industrial fruits are those produced by lands of any kind through cultivation or labor.

                        Civil fruits are the rents of buildings, the price of leases of land and other property and the amount of perpetual or life annuities or other similar income.

What are the exceptions to accession discrete?

KEY WORD: PULA

            Art. 544. A possessor in good faith is entitled to the fruits received before the possession is legally interrupted.

                        Natural and  industrial fruits are considered received from  the time they are gathered or severed.

                        Civil fruits are deemed to accrue daily and belong to the possessor in good faith on that proportion.

            Art. 566. The usufructuary shall be entitled to all the natural, industrial and civil fruits of the property in usufruct. With respect to hidden treasure which may be found on the land or tenement, he shall be considered a stranger.

            Art. 1654. The lessor is obliged:

1. To deliver the thing which is the object of the contract in such conditions as to render it fit for the use intended.
2. To make on the same during the lease all the necessary repairs in order to keep it suitable for the use to which it has been devoted, unless there is a stipulation to the contrary;
3. To maintain the lessee in the peaceful and adequate enjoyment of the lease for the entire duration of the contract.

Art. 2132. By the contract of antichresis the creditor acquires the right to receive the fruits of an immovable of his debtor, with the obligation to apply them to the payment of the interest, if owing, and thereafter to the principal of his credit.

WHO OWNS THE FRUITS WHICH ARE STILL PENDING (GROWING) AT THE TIME POSSESSION IS RECOVERED BY THE OWNER FROM A MERE POSSESSOR WHO DID THE PLANTING OR SOWING?

            Art. 545.  If at the time the good faith ceases, there should be any natural or industrial fruits, the possessor shall have a right to a part of the expenses of cultivation, and to a part of the net harvest, both in proportion to the time of the possession.

                        The charges shall be divided on the same basis by the two possessors.

                        The owner of the thing may, should he so desire, give the possessor in good faith the right to finish the cultivation and gathering of the growing fuits, as an indemnity for his part of the expenses of cultivation and the net proceeds; the possessor in good faith who for any reason whatever should refuse to accept this concession, shall lose the right to be indemnified in any other manner.

            Art. 449.  He who builds, plants or sows in bad faith on the land of another, loses what is built, planted or sown without right to indemnity.

WHO HAS THE RIGHT OVER THE FRUITS WHICH WERE ALREADY GATHERED OR HARVESTED AT THE TIME POSSESSION IS RECOVERED BY THE OWNER FROM A MERE POSSESSOR WHO DID PLANTING OR SOWING?

            Art. 544.  A possessor  in good faith is entitled to the fruits received before the possession is legally interrupted.

                        Natural and industrial fruits are considered received from the time they are gathered or severed.

                        Civil fruits are deemed to accrue daily and belong to the possessor in good faith on that proportion.

            Art. 443. He who receives the fruits has the obligation to pay the expenses made by a third person in their production, gathering and preservation.

            Art. 549. The possessor in bad faith shall reimburse the fruits received and those which the legitimate possessor could have received , and shall have a right only to the expenses mentioned  in paragraph 1 of art. 546 and  in art. 443. The expenses incurred in improvements for pure luxury or mere pleasure shall not be refunded to the possessor in bad faith; but he may remove the objects for which such expenses have been incurred, provided  that the things suffers no injury thereby, and that the lawful possessor does not prefer to retain them by paying the value they may have at the time he enters possession.

            Art. 546. Necessary expenses shall be refunded to every possessor; but only the possessor in good faith may retain the thing until he has been reimbursed therefor.

                        Useful expenses shall be refunded only to the possessor in good faith with the same right of retention, the person who has defeated him in the possession having the option of refunding the amount of the expenses or of paying the increase in value which the thing may have acquired by reason thereof.

CASE: EQUATORIAL REALTY VS. MAYFAIR THEATER, 379 SCRA 56

ACCESSION INDUSTRIAL – accession continua with reference to a real property. This pertains to building, planting, and sowing.

WHAT ARE THE BASIC RULES AND CONSIDERATIONS IN ACCESSION INDUSTRIAL?

            Art. 446. All works, sowing, and planting are presumed made by the owner and at his expense, unless the contrary is proved.

            Art. 445. Whatever is built, planted or sown on the land of another and the improvements or repairs made thereon, belong to the owner of the land, subject to the provisions of the following articles.

            The builder, planter or sower is a person different from the landowner.

            Accession follows the principal

            Incorporation or attachment is such that removal or separation will cause substantial injury.

            Observe rules on unjust enrichment.

            The good faith or bad faith of the parties determines their rights.

CASE: ARANGOTE VS. MAGLUNOB, GR # 178906, FE. 18 2009

WHAT ARE THE RIGHTS AND OBLIGATIONS OF THE PARTIES WHEN THE LANDOWNER BUILDS, PLANTS OR SOWS WITH MATERIALS OF ANOTHER?

            Art. 447. The owner of the land who makes thereon, personally or through another, plantings, constructions or works with the materials of another ,shall pay their value; and if, he acted in bad faith, he shall also be obliged to the reparation of damages. The owner of the materials shall have the right to remove them only in case he can do so without injury to the work constructed, or without the plantings, constructions or works being destroyed. However, if the landowner acted in bad faith, the owner of the materials may remove them  in any event, with a right to be indemnified for damages.

WHAT ARE THE RIGHTS AND OBLIGATIONS OF THE PARTIES WHEN THE LANDOWNER AND THE BUILDER, PLANTER OR SOWER ARE BOTH IN GOOD FAITH?

            Art. 448 The owner of the land on which anything has been built, sown or planted in good faith, shall have the right to appropriate as his own the works, sowing or planting, after payment of the indemnity provided for in Article 546 and 548, or to oblige the one who built or planted to pay the price of the land, and the one who sowed, the proper rent. However, the builder or planter cannot be obliged to buy the land if its value is considerably more than that of the building or trees. In such case, he shall pay reasonable rent, if the owner of the land does not choose to appropriate the building or trees after proper indemnity. The parties shall agree upon the terms of the lease and in case of disagreement, the court shall fix the terms thereof.

            Art. 546. Necessary expenses shall be refunded to every possessor; but only the possessor in good faith may retain the thing until he has been reimbursed therefor.

                        Useful expenses shall be refunded only to the possessor in good faith with the same right of retention, the person who has defeated him in the possession having the option of refunding the amount of the expenses or of paying the increase in value which the thing may have acquired by reason thereof.

            Art. 548. Expenses for pure luxury or mere pleasure shall not be refunded to the possessor in good faith; but he may remove the ornaments with which he has embellished the principal thing if it suffers no injury thereby, and if his successor in the possession does not prefer to refund the amount expended.

WHAT ARE THE RIHTS AND OBLIGATIONS OF THE PARTIES WHEN THE LANDOWNER IS IN GOOD FAITH WHILE THE BUILDER, PLANTER OR SOWER IS IN BAD FAITH?

            Art. 449. He who builds, plants or sows in bad faith on the land of another, loses what is built, planted or sown without right to indemnity.

            Art. 450. The owner of the land on which anything has been built, planted or sown in bad faith may demand the demolition of the work, or that the planting or sowing be removed, in order to replace things in their former condition at the expense of the person who built, planted or sowed; or he may compel the builder or planter to pay the price of the land, and the sower the proper rent.

            Art. 451. In the cases of the two preceding articles, the landowner is entitle to damages from the builder, planter or sower.

            Art. 452. The builder, planter or sower in bad faith is entitled to reimbursement for the necessary expenses of preservation of the land.

WHAT ARE THE RIGHT AND OBLIGATIONS OF THE PARTIES WHEN BOTH THE LANDOWNER AND THE BUILDER, PLANTER OR SOWER ARE IN BAD FAITH?

            Art. 453. If there was bad faith, not only on the part of the person who built, planted or sowed on the land of another, but also on the part of the owner of such land, the rights of one and the other shall be the same as though both had acted in good faith.

                        It is understood that there is bad faith on the part of the landowner whenever the act was done with his knowledge and without opposition on his part.

WHAT ARE THE RIGHTS AND OBLIGATIONS OF THE PARTIES WHEN  THE LANDOWNER IS IN BAD FAITH WHILE THE BUILDER , PLANTER OR SOWER IS IN GOOD FAITH?

            Art. 454. When the land owner acted in bad faith and the builder, planter or sower proceeded in good faith, the provisions of Article 447 shall apply.

            Art. 447. The owner of the land who makes thereon, personally or through another, plantings, constructions or works with the materials of another ,shall pay their value; and if, he acted in bad faith, he shall also be obliged to the reparation of damages. The owner of the materials shall have the right to remove them only in case he can do so without injury to the work constructed, or without the plantings, constructions or works being destroyed. However, if the landowner acted in bad faith, the owner of the materials may remove them  in any event, with a right to be indemnified for damages.

WHAT ARE THE RIGHTS AND OBLGIATIONS OF THE PARTIES WHEN THE BUILDER, PLANTER OR SOWER USES MATERIALS OF ANOTHER AND BUILDS, PLANTS OR SOWS ON THE LAND OF ANOTHER?

            Art. 455. If the materials, plants or seeds belong to a third person who has not acted in bad faith, the owner of the land shall answer subsidiarilly for their value and only in the event that the one who made use of them has nor property with which to pay.

                        This provision shall not apply if the owner makes use of the right grnated by Article 450. If the owner of thematerials, plants or seeds has been paid by the builder, planter or sower, the latter may demand from the landowner the value of the materials and labor.

CASES:

1. Nuguid vs. CA
2. PNB vs. De Jesus
3. Pleasantville Dev’t Corp vs. CA
4. Evadel Soriano
5. Technogias vs. CA
6. Reynaldo and Editha Lopez vs. Sarabia
7. Programme Inc. vs. Province of Bataan
8. Geminiano v. CA
9. Sulo sa Nayon Inc. v Nayong Filipino Founation
10. Cheng vs. Donini
11. Jimenez vs. Patricia
12. NHA vs. Grace Baptist Church

ACCESSION NATURAL

WHAT IS ALLUVIUM OR ALLUVION

            Art. 457. To the owners of lands adjoining the banks of rivers belong the accretion which they gradually receive from the effects of the current of the waters.

            Art. 458. The owners of estates adjoining ponds or lagoons do not acquire the land left dry by the natural decrease of the waters, or lose that inundated by them  in extraordinary floods.

            Article 4, Spanish Law of Waters of 1866: accretion and alluvial deposits caused by action of the sea form part of the public domain.

            Article 77, Spanish Law of Waters of 1866: Land accidentally inundated by the waters of lakes, creeks, rivers or streams shall continue to be the property of their respective owners.

WHAT IS AVULSION?

            Art. 459. Whenever the current of a river, creek or torrent segregates from an estate on its bank a known portion of land and transfers it to another estate, the owner of the land to which the segregated portion belonged retains the ownership of it, provided that he removes the same within two years.

WHO OWNS THE TREES WHICH ARE UPROOTED AND CARRIED AWAY BY THE CURRENT OF THE WATERS AND THEN CAST UPON THE LAND OF ANOTHER?

            Art. 460. Trees uprooted and carried away by the current of the waters belong to the owner of the land upon which they may be cast, if the owners do not claim them within six months. If such owners claim them, they shall pay the expenses incurred in gathering them or putting them in a safe place.

WHO OWNS THE RIVER BED WHICH IS ABANDONED THROUGH THE NATURAL CHANGES IN THE COURSE OF THE WATERS OF A RIVERS?

            Art. 461. River beds which are abandoned 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. However, the owners of the lands adjoining the old bed shall have the right to acquire the same by paying the value thereof, which value shall not exceed the value of the area occupied by the new bed.

            Article 58, Water Code of the Philippines

            Article 462.  Whenever a river, changing its course by natural causes, opens a new bed through a private estate, this bed shall become of public dominion.

WHEN THE CURRENT OF A RIVER DIVIDES ITSELF INTO BRANCHES AND LEAVES A PIECE OF LAND OR PART THEREOF ISOLATED, WHO OWNS THE PIECE OF LAND?

            Art. 463.  Whenever the current of a river divides itself into branches, leaving a 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 separated from the estate by the current.

WHO OWNS THE ISLAND FORMED ON A BODY OF WATER?

            Art. 464. Islands which may be formed on the seas within the jurisdiction of the Philippines, on lakes, and on navigable or floatable rivers belong to the State.

            Art. 465 Islands which through successive accumulation of alluvial deposits are formed in non navigable and 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 the island is in the middle of the river, in which case it shall be divided longitudinally in halves. If single island thus formed be more distant from one margin than from the other, the owner of the nearer margin shall be the sole owner thereof.

            Art. 59. Water Code of the Philippines.

Cases: Begaipo etc.

ACCESSION TO MOVABLE PROPERTY

1. Adjuntion/Conjunction

Art. 466. Whenever two movable things 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, indemnifying the former owner thereof for its value.

Art. 467. The principal thing, as between two things incorporated, is deemed to be that to which the other has been united as an ornament, or for its use or perfection.

Art. 468. If it cannot be determined by the rule given in the preceeding article which of the two things incorporated is the principal one, the thing of the greater value shall be so considered, and as between two things of equal value, that of the greater volume.

            In painting and sculpture, writings, printed matter, engraving and lithographs, the board, metal, stone, canvas, paper or parchment shall be deemed the accessory thing.

Art. 469. Whenever the things united can be separated without injury, their respective owners may demand their separation.

            Nevertheless, in case the thing united for the use, embellishment or perfection of the other, is much more precious than the principal thing, the owner of the former may demand its separation, even though the thing to which it has been incorporated may suffer some injury.

Art. 470. Whenever the owner of the accessory thing has made the incorporation in bad faith, he shall lose the 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 bad faith is the owner of the principal thing, the owner of the accessory thing shall have  a right to choose between the former paying him its value or that the thing belonging to him be separated, even though for this purpose it be necessary to destroy the principal thing; and in both cases, furthermore, there shall be indemnity for damages.

            If either one of the owners has made the incorporation with the knowledge and without the objection of the other, their respective rights shall be determined as though both acted in good faith.

            Art. 471. Whenever the owner of the material employed without his consent has a right to an indemnity, he may demand that this consist in the delivery of a thing equal in kind and value, and in all other respects, to that employed , or else in the price thereof, according to expert appraisal.

2. Mixture

Art. 472. If by the will of the owners two things of the same or different kinds are mixed, or if the mixture occurs by chance, and in the latter case things are not separable without injury, each owner shall acquire a right proportional to the part belonging to him, bearing in mind the value of the things mixed or confused.

1. Commixtion
2. Confusion

3. Specification

RESERVATIONS FOR TOWN SITE AND FOR PUBLIC AND SEMI-PUBLIC USES

CHAPTER VIII

RESERVATIONS FOR TOWN SITE AND FOR PUBLIC AND SEMI-PUBLIC USES

PROCEDURE TO ESTABLISH NEW TOWN:

1. The DENR Secretary directs the DOL to survey the exterior boundaries of the proposed site.
2. The DOL submit the survey to the DENR Sec who shall in turn submit it to the President.
   1. If the president approves it, he issues the necessary proclamation reserving the land surveyed, or such part thereof as he may deem proper, as a town site.
   2. Certified copies of such proclamation are furnished to the DOL and the Register of Deeds of the province or city where the land is located.
3. After making reservation for the necessary avenues, streets, alleyways, parks and squares, and other areas for public use:
   1. the land as originally surveyed is then subdivided into lots for commercial and industrial uses and the remainder for residential purposes;
   2. the plat prepared by the Director of lands is submitted to the DENR Sec for consideration, modification , amendment and approval.
   3. For public interests, the president may reserve for public purposes any lot or lots not yet disposed of.
4. If it is necessary to expropriate private lands within the limits of the new town, the president shall direct the Solicitor General to institute appropriate proceedings in court.
5. The plat of the subdivision as finally approved is recorded in the:
   1. Bureua of Lands and
   2. in the office of the Register of Deeds concerned
6. The lots with the exception of those claimed by or belonging to private parties ad those reserved for parks, buildings and other public use, shall then be sold after due notice at a public auction to the highest bidder at a price of NOT LESS THAN 2/3 OF THE APPRAISED VALUE.

Procedure to follow: a. sale of public agricultural lands

                              b. impose the same conditions such as the commencement of the construction of the improvement within six months and the completion thereof within 18 months.

Lots not sold after satisfactory bid:

1. subjected to another public bidding;
2. if still unsold, the DOL may sell them at a private sale – the price should not be less than 2/3 of the appraised value.

PROCEEDS OF SALE:

1. Remitted to the national treasury as part of the general funds (Sec. 80 of CA 141)
2. The proceeds of the sales of lots situated in Baguio accrue to the city funds (Baguio city charter)

LIMITATIONS:

1. Not more than 2 residential lots and two other lots for commercial or industrial uses in any one town site may be sold to any one person, corporation, or association EXCEPT when approved by the DENR Sec.
2. BUYERS IN BAGUIO TOWN SITE – it is forbidden to cut down any tree standing upon a lot without permission in writing from the Baguio Coordinating Committee/representative.
3. All sales or other dispositions of lots in the town site are subject to the blanket authority reserved upon the Congress to alter, rescind or cancel at any time as circumstances may warrant.

RESERVATIONS FOR PUBLIC OR SEMI-PULBIC PURPOSES:

1. Where public interests so warrant, other reservations for public and semi-public purposes may be designated by proclamation of the President upon recommendation of the DENR Sec.
2. Such reservations may be used by the Rep of the phil or any of its branches, or by the inhabitants thereof under certain conditions to be prescribed for the purpose, or for quasi-public uses or purposes when necessary.
3. Reservations may include areas for:
   1. highways
   2. rights of way for railroads etc.
   3. other improvements for public benefits

RESTRICTION: these reservations are not subject to alienation, occupation, entry, sale, lease, or other disposition until again declared alienable by proclamation of the President.

RESERVATION ALONG  RIVER BANKS FOR TIMBERLAND

            Reservation of 40 meters wide along the bank on each side of any river or stream for the purpose of reserving the same as permanent timberland of the government – applied only to lands of the public domain subsequently acquired by a private person.

            *** not applied to lands of private ownership to be registered under the provisions of the Cadstral law or the Land Registration Act.

RESERVATIONS FOR NON-CHRISTIAN FILIPINOS