Notes On Fundamentals of Property Ownership
Notes On Fundamentals of Property Ownership
I.
II.
NOTE: the 1987 Constitution emphasizes the stewardship concept of property ownership where
the owner, recognizing the primacy of the state under REGALIAN DOCTRINE, exercises the right of
ownership
- Section 2. All lands of the public domain, waters, minerals, coal, petroleum, and other
mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife, flora and
fauna, and other natural resources are owned by the State. With the exception of
agricultural lands, all other natural resources shall not be alienated. The exploration,
development, and utilization of natural resources shall be under the full control and
supervision of the State. The State may directly undertake such activities, or it may
enter into co-production, joint venture, or production-sharing agreements with Filipino
citizens, or corporations or associations at least sixty per centum of whose capital is
owned by such citizens. Such agreements may be for a period not exceeding twentyfive years, renewable for not more than twenty-five years, and under such terms and
conditions as may be provided by law. In cases of water rights for irrigation, water
supply fisheries, or industrial uses other than the development of water power,
beneficial use may be the measure and limit of the grant.
The State shall protect the nations marine wealth in its archipelagic waters,
territorial sea, and exclusive economic zone, and reserve its use and enjoyment
exclusively to Filipino citizens.
The Congress may, by law, allow small-scale utilization of natural resources by
Filipino citizens, as well as cooperative fish farming, with priority to subsistence
fishermen and fishworkers in rivers, lakes, bays, and lagoons.
The President may enter into agreements with foreign-owned corporations
involving either technical or financial assistance for large-scale exploration,
development, and utilization of minerals, petroleum, and other mineral oils according to
the general terms and conditions provided by law, based on real contributions to the
economic growth and general welfare of the country. In such agreements, the State
shall promote the development and use of local scientific and technical resources.
-
Section 3. Lands of the public domain are classified into agricultural, forest or timber,
mineral lands and national parks. Agricultural lands of the public domain may be
further classified by law according to the uses to which they may be devoted. Alienable
lands of the public domain shall be limited to agricultural lands. Private corporations
or associations may not hold such alienable lands of the public domain except by
lease, for a period not exceeding twenty-five years, renewable for not more than
twenty-five years, and not to exceed one thousand hectares in area. Citizens of the
Philippines may lease not more than five hundred hectares, or acquire not more than
twelve hectares thereof, by purchase, homestead, or grant.
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NOTES:
- Transferee
- The acquisition or transfer of private land refers to either voluntary or involuntary sale,
devise or donation. Involuntary sale includes sales on tax delinquency, foreclosures, and
executions of judgment.
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Particulars
Size/Area of Coverage
Additional Land
Acquisition
Limits to Acquisition of
Land
Use of Land
Special Requirements
Violations through:
misrepresentation in the sworn
statement
acquisition of land through
fraudulent means
failure to reside permanently in the
land acquired within two (2) years
from its acquisition, except when
such failure is caused by force
majeure shall be penalized by the
following:
forfeiture of such lands and
their improvements to
theNational Government
through escheat
proceedings by the
representative of the
Solicitor General
permanent disqualification
from availment of the
privilege under this Act
following:
a. certification
of
business
registration issued by the
Bureau of Trade Regulation and
Consumer Protection of the
DTI;
b. sworn
statement
stating
information required under
Batas Pambansa 185;
c. certification from assessor of
municipality or province where
the property is situated that
the subject land for transfer is
an urban or rural area;
d. if an agricultural land is
acquired, a certification from
the Department of Agrarian
Reform that the land is a
retained area of the transferor
e. affidavit of the transferee
attesting that his/her total
landholding inclusive of the
land to be acquired does not
exceed the 5-hectare limit
Special
Qualifications
Disqualifications
o
o
o
CONCEPT OF OWNERSHIP
Independent right of a person to the exclusive enjoyment and control of a property including its
disposition and recovery subject only to the restrictions established by law and rights of others.
BUNDLE OF RIGHTS THEORY
Fee simple consists of the so called bundle of rights which are inherent in or appurtenant to
ownership, without any limitations or restrictions other than those imposed by law or contract.
Includes the following
Right to possess
Right to use and enjoy
Right to the fruits
Right to dispose
Right to recover or vindicate
Right to accession
LIMITATIONS ON RIGHT OF OWNERSHIP
GOVERNMENT OR LEGAL
1. Those imposed in general by the state in the exercise of:
a. Power of taxation: power to impose and collect taxes and other charges on its citizens
and residents
b. Police Power: to impose restrictions on private rights for the safety of public welfare,
order and security
c. Power of Eminent Domain: to take private property for public use upon payment of just
compensation
2. Those imposed by law
a. Legal easements: for the purpose of public use are the interest of private persons
b. Requirement of legitimate succession
c. Zoning Ordinances: restrictions on the use of land in particular areas or the delineation
of allowable uses in particular areas
d. Building code: specifications such as height and setbacks
i. BP 1096
e. Rent control
f. Urban and agrarian reform
g. Subdivision regulations: requirements which may be complied within subdivision
projects (open spaces, development specifications, etc)
i. PD 957
ii. BP 220
h. Escheat: reversion of private property to the state due to the inestate death of the
owner who is not survived by any heir
CONTRACTUAL OR VOLUNTARY
1. Those imposed by the grantor of the property on the grantee by contract
a. Donation
b. Last will
c. Usufruct: right to enter the property of another with the obligation of preserving its
form and substance; right to enjoy the fruits of the property
(4) Statues, reliefs, paintings or other objects for use or ornamentation, placed in buildings 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;
(5) Machinery, receptacles, instruments or implements intended by the owner of the tenement
for an industry or works which may be carried on in a building or on a piece of land, and which
tend directly to meet the needs of the said industry or works;
(6) Animal houses, pigeon-houses, beehives, fish ponds or breeding places of similar nature, in
case their owner has placed them or preserves them with the intention to have them
permanently attached to the land, and forming a permanent part of it; the animals in these
places are included;
(7) Fertilizer actually used on a piece of land;
(8) Mines, quarries, and slag dumps, while the matter thereof forms part of the bed, and waters
either running or stagnant;
(9) 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;
(10) Contracts for public works, and servitudes and other real rights over immovable property.
1.
2.
3.
4.
Classifications:
Nature (land, buildings, trees, plants, etc.)
**LAND is the first to be listed as immovable property or real property by nature
Incorporation (machineries, statues, fish ponds, etc)
Destination (mines, fertilizers, quarries, docks, etc)
Analogy or Law (servitudes and other real rights over the property)
**NOTE: Whenever the word "muebles," or "furniture," is used alone, it shall not be deemed to include
money, credits, commercial securities, stocks and bonds, jewelry, scientific or artistic collections, books,
medals, arms, clothing, horses or carriages and their accessories, grains, liquids and merchandise, or
other things which do not have as their principal object the furnishing or ornamenting of a building,
except where from the context of the law, or the individual declaration, the contrary clearly appears.
SURFACE, SUBSURFACE AND AIR RIGHT
Land, in its legal signification, extends from the surface downwards to the center of the earth
and extends upwards indefinitely to the skies. The surface and subsurface of rights of an owner entitle
him to construct thereon any works or make any plantations and excavations without detriment to
servitudes and special laws. Air right is the right of an owner to use and control the air space over his
land subject to the requirements of aerial navigation, laws, or contract.
RIGHT TO HIDDEN TREASURE
Hidden treasure belongs to the owner of the land, building, other property on which it is found. When
the discovery is made on the property of another, or of the State or any of its subdivisions, and by
chance, one-half of the treasure shall be allowed to the finder. If the finder is a trespasser, he shall not
be entitled to any share of the treasure. If the things found be of interest to science or arts, the State
may acquire them at their just price, which shall be divided in conformity with the rule above stated.
Hidden treasure, for legal purpose, is understood to be any hidden unknown deposit of money, jewelry,
or other precious objects, the lawful ownership of which does not appear.
RIGHTS OF ACCESSION
1) In General The ownership of property gives the right by accession to everything which is produced
thereby, or which is incorporated or attached thereto, whether naturally or artificially.
2) With Respect to Produce of Property To the Owner belongs the:
a) Natural fruits the spontaneous product of the soil
b) Industrial fruits those produced by land cultivation or labor
c) Civil fruits the rental income of buildings and /or lands
3) With Respect to Immovable Property:
a) The owner of the land on which anything has been built, sown or planted in good faith shall have
the right:
aa) To appropriate as his own the works, sowing or planting after payment of indemnity p
rovided
by law
bb) To oblige the builder or planter to pay the price of the land. However, the builder or planter
cannot be obliged to pay for the land if its value is considerably more than that of the building or
planting. In such case, he shall pay reasonable rent if the owner does not choose to appropriate
the building after proper indemnity. The parties shall agree on the terms of the lease and in case
of disagreement, the court shall fix the terms thereof.
b) The owner of the land on which anything has been built, planted or sown In bad faith may:
aa) Demand the demolition of the work or removal of the planting or sowing at the
expense of the builder or planter
bb) compel the builder or planter to pay the price of the land and the sower, the proper rent.
The landowner is also entitled to damages from the builder planter or sower.
cc) To the owners of land adjoining the banks of rivers belong the accretion which they gradually
receive from the effects of the current of the water.
dd) Whenever a river, changing its course by natural causes, opens a new bed through a private
estate, the new bed shall become a public dominion.
CONCEPT OF TITLE
- A person is deemed to have title to a property when he can exercise or has the bundle of rights
over it.
- Evidence or proof of ownership
o Tax declaration
o Realty tax receipt
o Deed of sale
o Torrens Certificate of Title: best evidence of ownership because it is imprescriptible and
indefeasible.
MODES OF ACQUIRING TITLE
- Private Grant: voluntary transfer or conveyance of private property by a private owner, such as
sale or donation.
- Public Grant: acquisition of alienable lands of the public domain by homestead patent, free
patent, sales patent, or other government awards.
- Involuntary Grant:acquisition of private party against the consent of the former owners, such as
foreclosure sale, execution sale, or tax sale
- Inheritance: through hereditary succession
- Reclamation: filling of submerged land
Accretion: acquisition of more lands adjoining the banks of rivers due to the gradual deposit of
soil as a result of the river current
Prescription: acquisition of title by actual, open, continuous, and uninterrupted possession in
the concept of owner for the period required by law
NOTE: The peaceful and adverse possession of land that is continuous and uninterrupted for a certain
period of time may be converted into ownership of the land.
10years by ordinary prescription (with just title and in good faith)
30years by extraordinary prescription (without need of title and good faith)
PROPERTY IN RELATION TO THE PERSON TO WHOM IT BELONGS
Property is either of public dominion or of private ownership.
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;
(2) Those which belong to the State, without being for public use, and are intended for some
public service or for the development of the national wealth.
All other property of the State, which is not of the character stated in the preceding article, is
patrimonial property. (340a)
Property of public dominion, when no longer intended for public use or for public service, shall
form part of the patrimonial property of the State. (341a)
The property of provinces, cities, and municipalities is divided into property for public use and
patrimonial property. (343)
Property for public use, in the provinces, cities, and municipalities, consist of the provincial
roads, city streets, municipal streets, the squares, fountains, public waters, promenades, and
public works for public service paid for by said provinces, cities, or municipalities.
All other property possessed by any of them is patrimonial and shall be governed by this Code,
without prejudice to the provisions of special laws.
Property of private ownership, besides the patrimonial property of the State, provinces, cities,
and municipalities, consists of all property belonging to private persons, either individually or
collectively.
OWNERSHIP IN GENERAL
Art. 427. Ownership may be exercised over things or rights. (n)
Art. 428. The owner has the right to enjoy and dispose of a thing, without other limitations than those
established by law.
The owner has also a right of action against the holder and possessor of the thing in order to recover it.
(348a)
Art. 429. The owner or lawful possessor of a thing has the right to exclude any person from the
enjoyment and disposal thereof. For this purpose, he may use such force as may be reasonably
necessary to repel or prevent an actual or threatened unlawful physical invasion or usurpation of his
property. (n)
Art. 430. Every owner may enclose or fence his land or tenements by means of walls, ditches, live or
dead hedges, or by any other means without detriment to servitudes constituted thereon. (388)
Art. 431. The owner of a thing cannot make use thereof in such manner as to injure the rights of a third
person. (n)
Art. 432. The owner of a thing has no right to prohibit the interference of another with the same, if the
interference is necessary to avert an imminent danger and the threatened damage, compared to the
damage arising to the owner from the interference, is much greater. The owner may demand from the
person benefited indemnity for the damage to him. (n)
Art. 433. Actual possession under claim of ownership raises disputable presumption of ownership. The
true owner must resort to judicial process for the recovery of the property. (n)
Art. 434. In an action to recover, the property must be identified, and the plaintiff must rely on the
strength of his title and not on the weakness of the defendant's claim. (n)
Art. 435. No person shall be deprived of his property except by competent authority and for public use
and always upon payment of just compensation.
Should this requirement be not first complied with, the courts shall protect and, in a proper case,
restore the owner in his possession. (349a)
Art. 436. When any property is condemned or seized by competent authority in the interest of health,
safety or security, the owner thereof shall not be entitled to compensation, unless he can show that
such condemnation or seizure is unjustified. (n)
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,
without detriment to servitudes and subject to special laws and ordinances. He cannot complain of the
reasonable requirements of aerial navigation. (350a)
Art. 438. Hidden treasure belongs to the owner of the land, building, or other property on which it is
found.
Nevertheless, when the discovery is made on the property of another, or of the State or any of its
subdivisions, and by chance, one-half thereof shall be allowed to the finder. If the finder is a trespasser,
he shall not be entitled to any share of the treasure.
If the things found be of interest to science of the arts, the State may acquire them at their just price,
which shall be divided in conformity with the rule stated. (351a)
Art. 439. By treasure is understood, for legal purposes, any hidden and unknown deposit of money,
jewelry, or other precious objects, the lawful ownership of which does not appear. (352)
Reference: Civil Code of the Philippines; Book II, and Handouts