PROPERTY

Definition:

Property - things which are capable of satisfying human wants and are susceptible of appropriation.

Appropriation – equivalent to occupation

Traditional:Property are those things which are already

possessed and found in the possession of a man, while things are all that can be possessed.

NCC:Things and property are identical to each

other

THING vs. PROPERTY

Utility – capable of satisfying human needs(i.e. food, shelter, clothing)

Individuality / substantivity – quality of having existence apart from any other thing or property

(i.e. parts of the human body, -only when separated from the body of the person to whom they belong)

Appropriability – susceptibility of being appropriated by men. Hence, diffused forces of nature in their totality cannot be considered as property.

(i.e. air, lightning)

Requisites of property

An object cannot be considered as property because of PHYSICAL IMPOSSIBILITY (res communes) or LEGAL IMPOSSIBILITY (i.e. human body)

Res Communes – common things which are NOT capable of appropriation in their entirety. (i.e. air, lightning) ALTHOUGH they may be appropriated under certain conditions in a limited way (i.e. oxygen, electricity).

During Lifetime:G.R.: it is NOT a property. XPN: within the limits prescribed by law(R.A. 7719 – voluntary blood donation)

After Death:G.R.: still NOT a property by reason of public policyXPN: R.A. 349 – use of human organs or any portion of

the human body for medical, surgical or scientific purposes under certain conditions.

R.A. 7170 – donation of human organs after death or for transplant.

The Human Body

Res Nullius – that which has no owner because it has not yet been appropriated

(i.e. hidden treasure, wild animals, fish in the ocean)

Or because it has been lost or abandoned by the owner.

It constitutes property as long as it is susceptible of being possessed for the use of man.

Res alicujus – objects already owned or possessed by men.

TESTS:a. Immovable – cannot be transferred from

place to placeb. Movable – excluded from the enumeration

of immovable and can be moved from place to place without damage thereto

c. Mixed/semi-movable – those which move by themselves (both immovable and movable in nature)

CLASSIFICATION OF PROPERTY

1. By Nature – it cannot be carried from place to placea. Lands, buildings, roads and constructions

(adhered to the soil)b. Mines, quarries and slag dumps, while the

matter thereof forms part of the bed, and waters either running or stagnant.

• The materials constituting a building which is the subject of demolition are movable

• A structure which is merely superimposed, not adhered to the soil may be considered movable.

IMMOVABLE PROPERTY

2. By Incorporation – essentially moves but are attached to an immovable in a fixed manner to be

an integral part thereof.a. Constructions (adhered to the soil)b. Trees, plants and growing fruits while they are attached to the land and

form an integral part of an immovable.c. REX VINTA: everything attached to an immovable in a fixed manner in such

a way that it cannot be separated therefrom without breaking the material or deterioration of the object.

d. Animal houses or breeding places, in case the owner has placed them or preserve them with the INTENTION to attach them permanently to the land, and the animals in these places.

e. Statutes, reliefs, paintings or other objects for USE or ORNAMENTATION, placed in a building or on lands, by the OWNER of the immovable in such a manner that it reveals the intention to attach them permanently to the tenements.

• These are immovable both by incorporation and by destination. As distinguished from REX VINTA, these objects become immobilized only when placed in the tenement by the OWNER of such tenement. – unless by an agent.

• Trees and plants – only when they are attached to the land. G.R. Growing crops are considered REAL PROPERTYXPN: the moment they are detached or uprooted from the land.XPN to the XPN: uprooted timber – when it is the natural product of the tenement.

- Essentially movables but are placed in an immovable as an added utility.a. Indirect Utility: Statutes, reliefs paintings or other objects for USE or

ORNAMENTATION, placed in a building or on lands by the OWNER of the immovable in such a manner that it reveals the INTENTION to attach them permanently to the tenements.

b. Direct Utility: Machinery, instruments or implements INTENDED by the owner of the tenement for an INDUSTRY or WORKS which may be carried on in a building or land, AND which tend directly to meet the needs of such industry or works. (i.e. machineries of breweries in liquor factory)

c. Animal houses or breeding places, in case the owner has placed or preserved them with the INTENTION to attach them permanently to the land, and the ANIMALS in these places.

d. Fertilizers ACTUALLY used on a piece of land.e. Docks and structures which, though floating, are intended by their nature

and object to remain at a fixed place on a river, lake or coast.

• Machinery which is movable in its nature only becomes immobilized when placed in a plant by the owner of the property or plant, but not when so placed by a tenant, a usufructuary, or any person having only temporary right, unless such person acted as the agent of the owner. Davao Sawmill v. Castillo

BY DESTINATION

- Classified by express provision of law because it is regarded as united to the immovable property.

a. Contracts for public works.b. Servitudesc. Real rights over immovable property.

BY ANALOGY

1. As to naturea. Res nullius

belonging to no one – wild animalsb. Res communes

belonging to everyone – wind, sunlight, airc. Res alicujus

belonging to someone – shares of stock

2. As to mobilityb. movable/personal – laptopc. Immovable/real – land

3. As to ownershipd. Public – sea e. Private – car

Classification

4. As to alienabilitya. Within the commerce of men – residential buildingb. Outside the commerce of men – public plaza

5. As to existencec. Presentd. Future

6. As to materialitye. tangible/corporeal – paperf. Intangible/incorporeal – rights or credit

7. As to dependenceg. Principalh. Accessory

8. As to substitutioni. Fungible

capable of substitution of the same kind and quality – 10 bottles of wineb. Non-fungible

incapable of substitution; identical thing must be returned or given – 10 bottles of wine in my cabinet

All things which can be transported from place to place without impairment of the real property to which they are fixed.Special: real property which by any special provision of law is considered as personalty.(i.e. chattel mortgage law – growing fruits

Shares of stocks – although they may have real estate

MOVABLE PROPERTY

1. In Acquisitive prescriptiona. Movable – 4-8 yrsb. Immovable – 10-30 yrs

2. As object of accessory contractc. Movable – pledge and chattel mortgaged. Immovable – real estate mortgage

3. As to formal requirements in donatione. Movable – exceeds 5000, must be in writingf. Immovable – always in writing and must be accepted

4. As to criminal lawg. Movable – theft, robberyh. Immovable – usurpation of real property

IMPORTANCE OF CLASSIFICATIONPERSONALTY vs REALTY

What are the different classes of immovables?

N-I-D-Aa. Immovables by Natureb. Immovables by Incorporationc. Immovables by Destinationd. Immovables by Analogy

Q. A constructed his building on a piece of land belonging to B, to whom he (A) pays a monthly rental of P500.00. Is the building real or personal property?

A. The building is a real property. The building is a real property by incorporation within the meaning of No. 1 of the Art. 415 of the NCC

Q: To secure the payment to B of a loan,

the owner of a lot, executed a chattel mortgage (CM) on the building he erected thereon as well as on some newly bought machinery stored therein. Thereafter, a judgment was rendered against A in favor of C who had the building and machinery levied upon to satisfy the judgment. Is the CM binding on C? Explain. (1983 BAR)

The CM on the building is not binding on C, it is crystal clear. The CM on the building is void from the very beginning. Under the CM Law, on chattels or personalty may be the object of CM. A building is a real property.

The machineries are merely stored by A in his building. Machineries are classified as realty only when they are intended by the owner of the tenement for an industry or work which may be carried on in a building or on a piece of land, and which tend directly to meet the needs of the industry or work. Therefore, they are still classified as chattels or personalty for the purpose of the CM law.

A. The CM on the building is not binding on C. The CM on the machinery is binding.

Q: As A was a concrete building on his own lot, he also erected wooden scaffoldings on which plumbers and carpenters may climb.

a. What kind of property are the wooden scaffoldings and why?

b. What kind of property is the building constructed on the lot?

Ans.

a. Wooden scaffoldings – personaltythey are not permanent and they cannot be classified as constructions adhering to the land and forming an integral part thereof since they are MERELY SUPERIMPOSED on the land.

b. In the enumeration of properties under art. 415 of the NCC, the inclusion of “building” separate and distinct from the land, in the said provision of law, can only mean that a building is by itself an immovable property.

Building is immovable by incorporationA house (or a building) is immovable by incorporation. It is classified as realty by reason of its adherence to the soil on which it is built.

• Building treated separately from land

Ans.Yes. Doctrine of estoppel

“although there is no specific statement referring to the subject house as personalty, yet by ceding, selling, or transferring a property by way of chattel mortgage could only have meant to convey the house as chattel or at least, intended to treat the same as such, so that they should not now be allowed to make an inconsistent stand by claiming otherwise.” Tumalad v. Vicencio 41 SCRA 143 (1971)

Can a building be treated as a personal property?

1. Test by EXCLUSION- Whether the property was not enumerated

in art. 415 (expression unius est exclusio alterius)

2. Test by DESCRIPTION- Whether the property can be transported

or carried from place to place

• Test by EXCLUSION is superior

Tests of Movable Character

Art. 419. Property is either of public dominion or of private ownership.

Property of Public Dominion, defined:It is not owned by the State but pertains to the state, which, as

territorial sovereign, exercises certain juridical prerogatives over such property.

The ownership of such properties is in the social group, whether national, provincial or municipal.

• Since the ownership of public dominion belong to the public in general and not to the state, the latter may not make them object of commerce unless they are properly converted into patrimonial property.

Property in relation to whom it belongs

Q: Is money considered a merchandise?

A: G.R.

No. In domestic circulation, money is a LEGAL TENDER and NOT MERCHANDISE.

XPN: When attempted to be exported or smuggled, money is considered as merchandise or commodity subject to forfeiture.

1. For Public Use (Art. 420[1], NCC)2. For Public Service (Art. 420[2], NCC)3. For the development of national wealth

(Art. 424[1], NCC) (420[2], NCC)

* Property is presumed to be State property in the absence of any showing to the contrary. (Regalian Doctrine)

KINDS of PUBLIC DOMINION

- Those owned by the State NOT devoted to public use, public service or the development of national wealth.

- It is the property owned by the State in its private or proprietary capacity

- May be acquired by private individuals or corporations thru prescription

- May be an object of ordinary contract

PATRIMONIAL PROPERTY OF THE STATE

• Until a formal declaration on the part of the government, through the executive or legislative department, to the effect that the land in question is no longer needed for coast guard service, for public use or for special industries, they continue to be part of the public domain, not available for private appropriation or ownership. (Ignacio v. Dir. Of Lands)

• It is not necessary, therefore, that a plaza in order that it be considered property for public use. It is sufficient that it be intended to be such. (Manila Lodge No. 761 vs CA)

Ownership – independent and general right of a person to control a thing particularly in his possession, enjoyment, disposition, and recovery. Subject to no restriction except those imposed by the State or private persons.

Title – the foundation of ownership of property.

OWNERSHIP

1. Full – includes all rights of owner2. Naked – right to use and fruits has been

denied3. Sole – only one person4. Co-ownership – two or more owners

KINDS OF OWNERSHIP

1. Accion Interdictal – summary action to recover physical possession, and not juridical possession nor ownership

a. Forcible Entry – action for recovery if material/physical possession was deprived thereof by force, intimidation, strategy, threat or stealth (FISTS)

b. Unlawful Detainer – possession by a landlord, vendor, vendee or other person of any land or building is being unlawfully withheld after the expiration or termination of the right to hold possession, by virtue of any contract.

2. Accion Publiciana – plenary action to recover the better right of possession

3. Accion Reivindicatoria – Action to recover ownership over real property.

ACTIONS TO RECOVER OWNERSHIP AND POSSESSION: REAL PROPERTY

Art. 429. The right of the owner or lawful possessor to exclude any person from the enjoyment and disposal of the property by the use of such force as may be necessary to repel or prevent actual or threatened unlawful physical invasion or usurpation of his property.

Requisites:1. He must be the owner or the lawful possessor.2. Force used is reasonably necessary to repel or

prevent an invasion or usurpation; otherwise he shall be liable for damages.

3. No delay4. Actual or threatened physical invasion or usurpation

Doctrine of Self-Help

Art. 431 The owner of a thing cannot make use thereof in such a manner as to injure the rights of a third person.

“The continued occupation by petitioners of the two lots belonging to private respondents, despite the expiration of the lease contracts over the same, petitioners had become undesirable lessees.” However, it was improper for private respondents to resort to fencing their properties in order to remove petitioners from the premises in light of the clear provision of Art. 536 of the NCC on the matter.” (Villafuerte vs CA, 2005)

XPN: State of NecessityThere is no cause of action for acts done by one person upon

his own property in a lawful and proper manner, although such acts incidentally cause damage to another because the inconvenience arising from said use can be considered as a mere consequence. (Sps. Custodion vs CA, 1996)

Doctrine of incomplete privilegeArt. 432Requisites:

1. Interference is necessary2. Damage to another is greater than damage

to property3. Imposed by the owner (i.e. lease)4. Imposed by the grantor

DOCTRINE OF STATE OF NECESSITY

Art. 437 The owner of a parcel of land is the owner of its surface and of everything under it, and he can construct thereon any works or make any plantations and excavations which he may deem proper.

Limitations:1. Servitudes2. Special laws and ordinances3. Reasonable requirements of aerial navigation4. Rights of third persons

SURFACE RIGHT

REQUISITES:1. The plaintiff or complainant has a legal or an equitable

title to or interest in the real property subject of the action

2. There is cloud on the title3. The deed, claim, encumbrance or proceeding claimed

to be casting cloud on his title must be shown to be in fact invalid or inoperative despite its prima facie appearance of validity or legal efficacy.

• The plaintiff need not be in possession of the property• If he is however in possession, the action is

imprescriptible

QUIETING OF TITLE

G.R.: hidden treasure belongs to the owner of the land, buildings or other property on which it is found.

XPN: If finder is not the owner of the land, finder is entitled to ½ of the treasure if:

1. Made in the property of another2. Made by chance3. Finder is not a trespasser/agent of the landowner4. Finder is not a co-owner of the property where it is found5. Finder is not married under the absolute community or the

conjugal partnership system (otherwise his/her share belongs to the community)

XPN to the XPN: if the finder is a trespasser, he shall not be entitled of any share.

HIDDEN TREASURE

Art. 486“the defendant, therefore, in occupying with her husband the upper floor of the said house, did not injure the interests of her co-owner, her sister, nor did she prevent the latter from living therein, but merely exercised a legitimate right pertaining to her as co-owner of the property” Pardell v. Bartolome

Limitations on the right to use:1. Must be in accordance with the purpose2. Must be without prejudice to the rights of co-owners3. Must not prevent other co-owners from using the thing

according to their own right.

CO-OWNERSHIP

- action must be instituted for all co-owners- Also available even against co-owners- Adverse judgment cannot prejudice the

rights of other co-owners. However, any judgment in favor of the co-owner will benefit the others

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

Art. 493- Right to alienate a co-owners pro-indiviso share is inherent- Alienation or mortgage shall be limited to the portion as

may be allotted to a co-owner

LEGAL REDEMPTIONRequisites:

1. There must be co-ownership2. One of the co-owners sold his right to a stranger3. The sale was made before the partition of the co-owned

property4. The right of redemption must be exercised by one or

more co-owners within a period of 30 days to be counted from the time that he or they were notified in writing by the vendee or by the co-owner vendor.

5. The vendee must be reimbursed for the price of the sale.

Accession is not a mode of ownership. It is a mere concomitant right of ownership. It is a mere incident or consequence of ownership.

• The law does not define accession, it merely tells us what accession does.

Accession

A. Accession discreta- The right pertaining to the owner of a thing over everything

produced thereby (art.442)1. Natural fruits – the spontaneous products of the soil, and the

young and other products of animals.B owns a male dog, M owns a female dog. The 2 dogs breed. To whom does the litter go? To the female since birth follows the womb.

2. Industrial fruits – those produced by land through cultivation or labor

3. Civil fruits – rents of buildings

B. Accession continua- The right pertaining to the owner of a thing over everything that is

incorporated or attached thereto either naturally or artificially.

Two Kinds of Accession

Q: Manila Petroleum Co. (MPC) owned and operated a petroleum facility off the coast of Manila. The facility was located on a floating platform made of wood and metal, upon which was permanently attached the heavy equipment for the petroleum operations and living quarters of the crew. The floating platform likewise contained a garden area, where trees, plants and flowers were painted. The platform was tethered to a ship, the MV 101, which was anchored to seabed.

a. Is the platform movable or immovable property?b. Are the equipment and living quarters movable or

immovable?c. Are the trees, plants and flowers immovable or

movable property?

Ans.

a. The platform is an immovable property by destination. It was intended by the owner to remain at a fixed place on a river (Fels Energy vs Province of Batangas)

b. With respect to the equipment, the same is a real property. It is intended to meet the needs of the industry being undertaken by MPC. The equipment partakes of the nature of the immovable upon which it has been placed.

c. The trees, plants and flowers are also immovable, having been planted in the garden area, under Art. 415 (2) which provides that “trees, plants, and growing fruits, while they are attached to the land or form an integral part of the immovable” are likewise immovable property.

Q: A leased a building to B for a term of 10 years. B established a shoe factory in the building and as a result he installed certain machineries therein. Are such machineries movables or immovables? Reasons.

Suppose that in the above problem, the stipulation in the contract is to the effect that the machineries to be installed by B shall belong to A upon the expiration of the lease, would such stipulation make any difference in your answer? Reasons

Ans.The machineries are movables. In order that machineries can be classified as immovables within the meaning of No.5 of Art. 415 of the NCC, it is essential that the following requisites must concur:

1. The machinery must be placed by the owner of the tenement2. An industry or works must be carried on in the tenement3. The machinery must be intended for such industry or works.4. The machinery must tend directly to meet the needs of such

industry or works.It is clear from the facts stated in the problem that the machineries are movables since they were installed by the lessee, B, and not by A. (see Davao Sawmill case…)

Yes it would make a difference in my answer. The machineries in such case would then be classified as immovables. It is evident that B would then be considered as the agent of A.

Q: A was the owner of a beautiful painting

with a frame, which he bought in Florence, Italy. As his house was not yet habitable, A gave the painting to his neighbor and friend B, who in turn attached the painting in the meantime that A’s house was being constructed, to the wall of his house. What kind of property is the painting while in the of B? Reasons.

A:The painting, at this stage, can be

classified only as movable or personal property. Under no. 4 of art.416 of the NCC, in order that paintings may be classified as immovable property, it is essential that they should have been placed in a building for use or ornamentation in such a manner that it reveals the intention to attach them permanently to the tenement. Here, the attachment is merely temporary, not permanent.

Q:In order to secure the payment of a debt of

P100,000, A, the debtor, executed a chattel mortgage in favor of B, the creditor, over a house which he had constructed on a rented lot belonging to C. In the deed of chattel mortgage, the parties expressly stated that A’s house is a chattel. Because of A’s inability to pay the debt when it became due and demandable, B finally decided to foreclose the mortgage. A contends that B cannot foreclose the mortgage on the ground that the chattel mortgage contract is void under the law, a building is real property and not personal property, and therefore, cannot be the subject matter of a chattel mortgage contract. Is the contention correct? Reasons.

A:A’s contention is not correct. Since the

contracting parties had voluntarily entered into the contract, neither of them should now be allowed to impugn its validity. It must be observed, however, that this view that parties to a contract of chattel mortgage may agree in a contract, is good only insofar as the contracting parties are concerned. It is based, partly, upon the principle of estoppel.

1st case: LO is the B/P/S using the materials of another.Land Owner is the Builder / Planter / Sower

Owner of the Materials

Good Faith

Can acquire the materials provided he pays for the value thereof.

Good FaithHe has the:1. Right to receive payment for value

of the materials; OR2. Limited right of removal if there

would be no injury to work constructed, or w/o plantings or constructions being destroyed (Art.447)

Baf Faith

Can acquire the materials provided he pays the value thereof PLUS damages

Good Faith

1. Right to receive payment for value of materials PLUS damages

2. Absolute right of removal of the work (whether or not substantial injury is caused) PLUS damages

Good Faith

Can acquire the materials w/o paying for the value thereof and entitled to consequential damages due to the defects of the materials

Bad Faith

Loses the materials completely without receiving any indemnity

Problem 1.May the LO – B/P/S choose to return the materials instead of reimbursing their value even w/o the consent of the owner of the materials?Ans.It depends:

1. If no damage has been made to the materials. – may be returned at the LO’s expense

2. If damage has been made to the materials.- They cannot be returned anymore.

Problem 2.Suppose the LO-B/P/S has already demolished or removed the

plantings, constructions or works, is the owner of the materials still entitled to claim them?

Ans.There are different opinions on this matter but the best result

seems to be the OM is still entitled to get them since the law makes no distinction. Moreover, the land owner may insist on returning them for evidently there is no accession.

2ND CASE: B/P/S builds, plants, sows on another’s land using his own materialsLand Owner B/P/S is the OM

GF:1. Can appropriate whatever has been b/p/s

after paying indemnity w/c includes necessary and useful expenses. OR

2. To obligate the b/p/ to pay the price of the land and the sower to pay the proper rent. However, the land owner cannot obligate the b/p to buy if the value of the land is more than the building or planting.

GF:Entitled to receive indemnity. And having the right of retention over the land w/o having to pay rents until the LO pays the indemnity

Can remove useful improvements provided it does not cause any injury

If he does not buy the land because of option 2 of LO. He shall pay reasonable rent if the LO does not choose option 1, otherwise he can be ejected by LO.

If he cannot pay the purchase price, LO can require him to remove what has been built.

BF: To acquire what has been built, planted or sown by paying the indemnity plus damages.

Gf:If LO acquires, he must be indemnified plus damages.If LO does not acquire, he can remove whatever has been built whether or not it will cause damageIf LO does not acquire, he cannot insist on purchasing the land.

GF:1. To acquire whatever has

been built, planted or sown w/o paying for indemnity except necessary expenses for the preservation of the land only and luxurious expenses if he decides to acquire the luxurious ornaments plus damages.

2. Compel the builder/planter to pay the price of the land and the sower to pay the proper rent plus damages.

3. To demand the demolition or removal of the work at the expense of the builder/planter/sower

BF:Loses what has been built, planted or sown.

Entitled to reimbursement for necessary expenses for the preservation of the land but has no right of retention.

Not entitled to reimbursement for useful expenses and cannot remove the useful improvements even if the removal will not cause injury.

BFTreat as if both are in goodfaith

BFTreat as if both are in goodfaith

LAND OWNER BUILDER/PLANTER/SOWER

OWNER OF THE MATERIALS

GF:To acquire whatever has been built, planted or sown provided he pays the indemnity

To oblige the b/p/s to buy the land unless the value is considerably more than the value of the building or trees.

GF:To receive indemnity from the LO and has the right of retention

To buy the land

GF:To receive indemnity from the b/p/s who is principally liable. If b/p/s is insolvent, then demand from LO but has no right of retention

Material right lien against the b/p/s for the payment of the value of the materials

GF:same

GF:same

BF:Whatever is the choice of the landowner1. Loses the materials

in favor of the b/p/s2. No right to receive

indemnity from the b/p/s

3rd case: B/P/S builds, plants, sows on another’s land with materials owned by third person.

GF:To acquire whatever has been built

To oblige the builder to pay the price of the land and the sower for the proper rent

To demolish or remove what has been built or planted

BF:Loses what has been built but he is entitled to be indemnified for necessary expenses and luxurious expenses should the LO acquire luxurious ornaments

Has no right of removal

Pay the price of the land

Cannot do anything about it so he must remove

BF:(Since both b/p/s and the OM are in BF, treat them as if both in GF)

Whatever is the choice of the LO, he has the right to receive indemnity for the value of the materials from the B/P/S only. The LO has no liability whatsover.

BFTo acquire what has been built, planted or sown by paying the indemnity plus damages to B/P/S

GFTo receive indemnity from LO

Cannot insist on purchasing the land

GF:To receive indemnity for value of the materials from B/P/S or from LO in case B/P/S is insolvent

BFSame

GFSame

BFNo right to receive indemnity

Problem:A promised to donate a property to B. B constructed his house thereon before the donation. If the property was not donated to him, is B considered a possessor in goodfaith?

Ans.:No. The mere promise to donate the property to B cannot convert him into a Builder in good faith for at the time the improvement was built, such promise was not yet fulfilled. It was a mere expectancy of ownership that may or may not be realized. (Pada-Kilario v. CA, 2000)

Problem:If the owner of the land makes thereon any building, planting or sowing with materials of another, what are the rights and obligations of the parties?

Ans.: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 remove them only in case he can do so without them being destroyed. However, if the landowner acted in badfaith, the owner of the materials may remove them in any event, with a right to be indemnified for damages. (art.447, NCC)

Problem: A plants in bad faith on his own land, palay seeds belonging to B. What are the rights and obligations of the parties.

Ans.:A shall pay to B the value of the palay seeds and at the same time, indemnify him for any damages which he may have suffered. B on the other hand, may choose between demanding from A the payment of the value of the seeds plus damages or the removal of the palay seeds with or without injury to the planting, plus damages.

Problem:A built a garage on a lot adjoining his property knowing it to belong to B. B, who was aware thereof, offered no objection. What are the rights and obligations of the parties.

Ans.:Since both A and B had acted in bad faith, their rights and obligations shall be the same as if they had both acted in goodfaith. Consequently, B shall have the right to appropriate the garage as his own, after payment of necessary and useful expenses to A or to oblige A to pay the price of the land. It must be noted, however, that A cannot be obliged to buy the land if its value is considerably more than that of the garage. In such case, he shall merely pay reasonable rent, if B does not choose to appropriate the garage.

Problem:Believing that a piece of land belonged to him, A erected thereon a building using materials belonging to C. B, the owner of the land, was aware of the construction being made by A, but did not do anything to stop it. Discuss the rights and obligations of the parties.

Ans.:A can choose between reimbursement by B of the value plus damages or removal of the materials. It must be observed that B is in bad faith. The rights of B, owner of the land, will depend upon the option selected by A. If a decides to demand reimbursement of the building plus damages, of course, B becomes the owner of the building. If a decides to remove the materials, B does not become the owner. In the case of C, the OM, assuming that he was in goodfaith, obviously he can proceed against A for value of his materials and against B for damages. If A cannot pay him the value of his materials, he (C) can then proceed against B for the value of the said materials.

Define Alluvion:- The accretion which the lands adjoining the

banks of rivers, creeks, torrents or lakes gradually receive from the effects of the waters.

What is the rule with regard to alluvion?- 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.

- 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.

What is the rule with regard to avulsion?- 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.

- 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 in a safe place.

Distinguish between alluvion and avulsion.

In alluvion the accretion is gradual, whereas in avulsion it is sudden and abrupt.

In alluvion the accretion cannot be identified, whereas in avulsion it can be identified.

In alluvion there is merely an attachment, whereas in avulsion there is first detachment followed by attachment; and

In alluvion the accretion belongs to the owner of the land to which the attachment is made, whereas in avulsion the ownership is retained by the owner of the land from which it is detached, at least; for a certain period.

What is the rule with regard to islands which may be formed either on the seas or on rivers?

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.

Islands which through successive accumulation or alluvial deposits 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 islands is in the middle of the river, in which case it shall be divided longitudinally in halves. If a 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.

Define Possession:- It is the holding of a thing or the enjoyment

of a right, either by material occupation or by the fact of subjecting the thing or right to the action of our will

What are the different classes of possession?1. Possession in one’s own name2. Possession in concept of owner3. Possession in good faith or possession in

bad faith

Problem:O, the owner of a riceland, leases the same to L who, in turn, subleases it to S. S hires a kasama, K, who actually cultivates the land, but does not stay thereon. As a matter of fact, nobody lives on the land. Who among O,L,S, and K may be said to have possession of the rice land?

Ans.:It is submitted that only S and K may be said to have possession of the rice land – the first, in the concept of a mere holder, but in his own name, and the second also in the concept of a mere holder, but in the name of another. The doctrine of constructive possession can be applied to the case of K.

Problem:A, the owner of a Fortuner, was approached by B, a dealer in second hand cars, regarding the sale of the Fortuner to a prospective buyer. Since A had lost his certificate of registration when he delivered the car to B to be shown to the prospective buyer, he also gave to the latter a letter addressed to the LTO asking for the issuance of a new CR. B however falsified the letter, converting it into an absolute DOS. Subsequently after obtaining a CR, he sold the car to C, who, in turn, sold it to D. Later, A brought an action against D for the recovery of the car. Will the action prosper?

Yes, the action will prosper. A had been illegally deprived of the car because of the ingenious scheme utilized by B; consequently, applying the provisions of Art. 559 of the NCC, A can now recover the property from D.

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