UNIVERSITY OF MAKATI

SCHOOL OF LAW 1

PROPERTY COURSE OUTLINE

I. DEFINITION

Traditionally, the concept of property extends only to those things that are already possessed and
found in the possession of man. Property is inseparable from the relation which the object has with
the person exercising dominion or right over it. In our Civil Code, the concept of property is not
confined to things which are already appropriated or possessed by man but also extends to those
susceptible of such appropriation.

For a thing to be considered as property, it must have: (a) utility; (b) substantivity; and (c)
appropriability or susceptibility to appropriation.

A. Classification under the Civil Code

1. Immovable or Real Property - Art. 415

a. by nature - (1), (8)
b. by incorporation - (2), (3), (7)
c. by destination - (4), (5), (6), (9)
d. by analogy - (10)

Movable or Personal Property- Arts. 416-417

Cases: Davao Sawmill v. Castillo, 61 Phil. 709

Berkenkoter v. Cu· Unjieng, 61 Phil 663
Lopez v. Orosa, 1 03 Phil. 98
Tumalad v. Vicencio,41 SCRA 143
Associated Insurance v. Iya, 103 Phil. 972
Makati Leasing v. Wearev, 122 SCRA 296
Bd. of Assessment Appeals v. Meralco, 10 SCRA 63
Meralco Securities v. Bd. of Assessment Appeals, 114 SCRA 260
Meralco v. Central Bd. of Assessment Appeals, 114 SCRA 273
Caltex v. Bd. of Assessment Appeals, 114 SCRA 296
Benguet Corp. v. Central Bd. of Assessment Appeals, 218 SCRA 271

2. Importance and Significance of Classification

a. From point of view of: (i) Criminal Law; (ii) Form of

contracts involving movables or immovables; (iii)
Prescription; (iv) Venue; (v) Taxation; (vi) Double Sales
under Art. 1544; (vii) Preference of Credits; and (viii)
Causes of Action to Recover

3. Differences between Real Rights and Personal Rights

B. By Ownership

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Acknowledgement to U.P. College of Law Professor Eduardo Labitag for this course outline.

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 1. Res Nullius
2. Public Dominion, (cf. Patrimonial) (Arts. 419, 420-422, 424)
a. Property of State - Art. 420-422
i. For Public Use
ii. For Public Service
iii. For Development of National Wealth
Cases:
La Bugal-B'laan Tribal Assn. v. Ramos, G.R. 127882, Jan, 27, 2004
on Reconsideration Dec. 1, 2004, Jan. 27, 2004, Feb. 1,2005
Chavez v. Public Estates Authority, 384 SCRA 152 on
Reconsideration: Chavez v. Public Estates Authority, G.R. No.
133250, May 6, 2003
Usero v. CA, G.R. No. 152115, Jan. 26, 2006
b. Property of Municipal Corporations- Art. 424, par. 1. For Public Use
including Public works for Public Service

3. Private property
a. Patrimonial Property of State- Art. 424
b. Patrimonial Property of Municipal Corporations - Art. 424, par. 2
c. Private Property of Private Persons- Art. 425, par. 2
Cases: Tantoco v. Municipal Council, 49 Phil. 52
Zamboanga del Norte v. City of Zamboanga, 22 SCRA 1334
Salas v. Jarencio, 46 SCRA 743
Cebu v. Bercilles, 66 SCRA 481
Municipality of San Miguel v. Fernandez, 130 SCRA 56
Government v. Cabangis, 53 Phil. 112
Chavez v PEA G.R. 133250, July 9, 2002 on Motion for
Reconsideration, May 6, 2003

4. Significance of Classification of Property as Property of Public Dominion

a. Property that is Outside the Commerce of Man
b. Property that cannot be the subject of Acquisitive Prescription
c. Property that cannot be attached or levied upon in execution
d. Property cannot be burdened with a voluntary easement

C. Other Classification
1. By their physical existence
a. Corporeal
b. Incorporeal
2. By their Autonomy of Dependence
a. Principal
b. Accessory
3. By their Subsistence After Use
a. Consumable- Art. 418(1)
b. Non-Consumable- Art. 418
Differentiated from Fungible or Non-fungible
c. Deteriorable or Non-deteriorable
4. By Reason of their Susceptibility to Division
a. Divisible
b: Indivisible

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 5. By reason of Designation
a. Generic
b. Specific
6. Existence in Point of Time
a. Present
b. Future
7. Contents and Constitution
a. Singular (simple, compound)
b. Universal
8. Susceptibility to Appropriation
a. Non-appropriable
b. Appropriable (already appropriated, not yet appropriated)
9. Susceptibility to Commerce
a. Within the Commerce of Man
b. Outside the Commerce of Man

II. OWNERSHIP

A. Definitions.
It is independent right of exclusive enjoyment and control of a thing for the purpose of
deriving therefrom all the all advantages required by the reasonable needs of the owner
(or holder of the right) and the promotion of the general welfare, but subject to the
restrictions imposed by law and rights of others. (J .B.L. Reyes)

Ownership is a relation in private law by virtue of which a thing (or property right)
pertaining to one person is completely subjected to his will in everything not prohibited
by public law or the concurrence with the rights of another.

B. Bundle of rights included in Ownership Art. 429

C. Other Specific Rights Found in Civil Code Arts. 429, 430, 437, 438, 440
a. Right to Exclude; Self-Help; Doctrine of Self Help; Elements
Art. 429
b. Right to Enclose or Fence - Art. 430
c. Right to Receive Just Compensation in case of Expropriation - Art. 435
d. Right to Hidden Treasure - Arts. 438-439
e. Right to Accession - Art. 440
f. Right to Recover Possession and/or Ownership – Jus Vindicandi
1. Available Actions to Recover Possession/ Ownership
Re: Immovable Property:
Accion Reivindicatoria Accion
Publiciana Forcible Entry and
Unlawful Detainer
2. Specific Limitations
a. by law, e.g., legal servitudes
i. Limitation From Scattered provisions of Civil Code Arts.
431, 432, Arts. 2191, 677-679, 670, 649 & 652, 637, 676,
644, 684-687

Cases: U.S. v. Causby, 328 U.S. 256; 66 Sup.Ct. 1062

Lunod v. Meneses, 11 Phil. 128

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 ii. Latin Maxim: Sic Utere Tuo Ut Alienum Non Lqedas -
Art. 431
iii. Act in State of Necessity - Art. 432
b. by party transmitting property, be it in a contract, or last will or donation
c. by owner himself, e.g. voluntary servitude, mortgage, pledge, lease
d. inherent limitations from conflict of rights arising from contiguity of
property

III. RIGHT OF ACCESSION

A. Concept - Art. 440
B. General Principles of Accession
1. Applicable to both accession discreta and accession continua
a. Accessory Follows the Principal
b. No one shall be unjustly enriched at the expense of
another
2. Applicable to accession continua
a. Whatever is build, 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 (358).
b. All Works, Sowing and Planting are Presumed made by Owner and at His
Expense, Unless contrary is Proved.
c. Accessory Incorporated to Principal such that it cannot be
Separated without Injury to Work Constructed or Destruction to
Plantings, construction or works - Art. 447
d. Bad Faith involves Liability for Damages and Other Dire Consequences
e. Bad Faith of one Party Neutralizes Bad Faith of the Other - Art. 453
3. Applicable to accession discreta alone
a. Ownership of Fruits - To Owner of Principal Thing belongs t}le natural,
industrial and civil FRUITS (Art. 441) exceptions:
i. Possession in Good Faith
ii. In Usufruct
iii. In Lease
iv. In Antichresis

C. Obligations of Receiver of Fruits to pay expenses by 3rd person in production, gathering

and preservation - Art. 443
D. Kinds of Accession
1. Accession Discreta (Fruits) - Art. 440
a. Natural
b. Industrial
c. Civil
Cases: Bachrach v. Seifert, 87 Phil. 11 7
Bachrach v. Talisay Silay, 56 Phil. 117
2. Accession Continua
a. Over Immovables
1. Artificial or Industrial - Building, Planting, Sowing (BPS)
i. Owner is Builder, Planter, sower (BPS) Using Material
of Another Art. 447: In Good Faith · In Bad Faith
ii. BPS on Another's Land Using his Own Materials - Art.
448-454

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 iii. BPS in Good Faith - Art. 448
iv. BPS in Bad Faith - Art. 449, 450, 451
1. Options Open to Owner of Land
a. To acquire building, planting and sowing
BPS has right of retention retain possession
without paying rental not entitled to fruits; his
rights are the same as an antichretic creditor
b. To sell and to BP to lease lands
BP may refuse if value of land considerable
more than bp unless owner chooses to
acquire bps; then - forced lease by LO and
BP

2. Rights of BPS in bad faith - Art. 452, 443

3. Landowner in bad faith but BPS in good faith
- Art. 454, 447- reason for adverting to rule 447

v. BPS on another's land with materials owned by 3rct person­

Art. 455
Nota Bene: good faith does not exclude negligence, thus
damages, negligent one may be made. to pay damages -
Art. 456
Cases:
Bernardo v. Bataclan, 66 Phil. 598
Ignacio v. Hilario, 76 Phil. 605
Sarmiento v. Agana, 129 SCRA 122
Depra v. Dumlao, 136 SCRA 475
Technogas Phils. V. CA, 268 SCRA 5
Ortiz v. Kayanan, 92 SCRA 146
Geminiano v. CA, 259 SCRA 10
Pleasantville Dev't. Corp. v. CA, 253 SCRA 10
Felices v. Iriole, G.R. No. 115814, May 26, 1995
Spouses Nuquid v. CA, G.R. No. 105360, May 25, 1993;
G.R. No. 151815, Jan.23,2005

For Submission: Outline Arts. 447-455. Take care to indicate the

permutations and legal results of the good faith or bad faith by
landowner builder, planter, sower and owner of material; also the options
open to any of these parties.

2. Natural
a. Accretion Alluvium- Art. 457
Case: Republic v. CA, 132 SCRA 514
Grande v . CA, G.R. No. L-17652, June 30,
1962
Meneses, July 14, 1995
b. Avulsion
c. Change of Course of River - Art. 461-463
Case: Baes v. CA, 224 SCRA 562
Binalay v. Manalo, G.R. No. 92161
d. Formation of Islands ·- Art. 461-465 see: PD

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 1067, Water Code

Reverse Accession - 120 FC; 321 CC

3. Over Movables
a. Conjunction and Adjunction
i. Inclusion or Engraftment
ii. Solladura· or soldering: Plumbatura (different metals);
Ferruminatio (same metal)
iii. Tejido or Weaving
iv. Escritura or writing
v. Pintura or painting
b. Commixtion and Confusion
Case: Siari Valley Estates v. Lucasan G.R. No. L-704 Aug. 31, 1955
Santos v . Bernabe, 54 Phil. 19
c. Specification

IV. QUIETING OF TITLE

A. Differences Between Action to Quiet Title and Action: To Remove or Prevent A Cloud
B. Prescription of Action - Imprescriptible if plaintiff is in possession; if not, prescribes within
period for filing accion publiciana, accion reivindicatoria
Cases: Olviga v. CA, G.R. No. 104813, Oct. 21, 2993
Pingol v. CA, G.R. No. 102909, Sept. 6, 1993
C. Who are Entitled to bring Action? Rule 64 Sec. 1 par. 2, Rules of Court.
D. Notes:
1. There is a cloud on title to real property or any interest to real property (Art. 476)
2. Plaintiff has legal or equitable title to or interest in the subject/real property
3. Instrument record claim, etc., must be valid and binding on its face but in truth and
in fact invalid, ineffective, voidable or unenforceable
4. Plaintiff must return benefits received from defendant
Case: Titong v. Court of Appeals, G.R. No. 111141, March 6, 1998
5. Actions to quiet title are proceedings quasi in rem
Case: Sps. Partie v Cristobal, G.R. 156171, April 22, 2005

V. CO-OWNERSHIP
A. Definition
The right of common dominion which two or more persons have in a spiritual part (or ideal
portion) or a thing, which is not physically divided.
B. Characteristics
1. There is plurality of owners, but only one real right of ownership;
2. The recognition of ideal shares, defined but not physically identified;
3. Each co-owner has absolute control over his ideal share;
4. Mutual respect among co-owners in regard to use enjoyment and preservation of
thing as a whole
Cases: Pardell v. Bartolome, 23 Phil. 450

C. Differences between co-ownership and joint tenancy

D. Differences between partnership and co-ownership
Case: Gatchalian v. Collector, 67 Phil. 666
E. Sources of co-ownership
1. Law, e.g., party walls, hedges and ditches; co-ownership in hidden treasure

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 i. Cohabitation (Art. 147 & 148, Family Code); Art. 90 on suppletory
application of the principles of co­ownership to ACP
ii. Purchase (Art. 1452)
iii. Succession (Intestate): Art. 1078; Testate: Property is given to two or more
heirs
iv. Donation (Art. 753; Article 573, 2nd par.)
v. Chance (Art. 472)
Case: Siari Valley Estate v. Lucason, supra.
vi. Hidden treasure (Art. 348)
vii. Easement of party wall (Art. 658)
viii. Occupation
Case: Punzalan v. Boon Liat, 44 Phil. 320
ix. Condominium Law (Sec. 6(c) Rep. Act 4726)
Case: Twin Towers Condominium Corporation v. Court of
Appeals, G.R. No. 123552, Feb. 27, 2003
2. Contract
i. By agreement (duration of co-ownership, Art. 494)
ii. Universal Partnership (Arts. 1778-1780)
iii. Associations and societies with secret articles (Art. 1775)
3. Succession
4. Chance (Commixtion, hidden treasure)
5. Occupation (harvesting and fishing)

F. Rights of each co-owner as to thing owned in common:

1. To use the thing according to the purpose intended may be altered by agreement,
express or implied; provided:
a. it is without injury or prejudice to interest of co­
ownership and;
b. without preventing the use of other co-owners, Art. 486
Case: Pardell v. Bartolome, 23 Phil. 450
2. To share in the benefits in proportion to his interest, provided the charges are
borne by each in the same proportion (Art. 485)
• Contrary stipulation in void
• Presumption is that portions are equal unless contrary is proved
3. Each co-owner may bring an action in ejectment (Art. 487)
Cases: Resuena v. CA, G.R. No. 128338, March 28, 2005
Acabal v. Acabal, G.R. No. 122904, April 15, 2005
4. To compel other co-owner to contribute to expenses for preservation of the thing or
right owned in common and to payment of taxes (Art. 488)
• Co-owner's option not to contribute by waiving his undivided interest
equal to amount of contribution (exception: if waiver prejudicial to
co-ownership)
• Requisites before repairs for preservation may be made of expenses for
embellishment or improvement may be made (Art. 489)
• Effects of failure to notify co-owners

5. To oppose any act of alteration; remedy of other co-owners re: acts of alteration (Art.
491)
Acts of alteration
i. Concept - any change injurious to the thing owned in common or to the
rights of other co-owners or any change material to

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 the use, destination or state of thing which act is in violation of the
express or tacit agreement of the co-owners
ii. Distinguished from acts of administration Art. 492
iii. Effect of acts of alteration and remedies of non­consenting co-owner
Query: Is lease of real property owned in common an act of alteration?
Art. 647 in relation to Art. 1878(8)
6. To protest against acts of majority which are prejudicial to minority (Art. 492 par.
3)
Cases: Lavadia v. Cosme, 72 Phil. 196
Melencio v. Dy Tiao Lay, 55 Phil. 100
Tuason u. Tuason, 88 Phil. 428
7. To exercise legal redemption- Art. 1620, 1623
Cases: Mariano v. CA, 222 SCRA 736
Verdad v. CA, 256 SCRA 593
8. To ask for partition - Art. 494
Cases: Ramirez v. Ramirez, 21 SCRA 384
Aguilar v. CA, G.R. No. 76351, Oct. 26, 1993
Vda. de Ape v. CA, G.R. No. 133638, April 15, 2005
9. Other cases where right of legal redemption is given -Arts.
1621, 1622
Cases: Halili v. CA, G.R. No. 113539, March 12, 1998
Francisco v. Boiser, G.R. No. 137677, May 31,2000

G. Implications of co-owners right over his ideal share:

1. Co-owner has the right:
a. To share in fruits and benefits
b. To alienate, mortgage or encumber and dispose of his ideal share - (but
other co-owners may exercise right of legal redemption)
c. To substitute another person in the enjoyment of thing
d. To renounce part of his interest to reimburse necessary expenses incurred
by another co-owner (Art. 488)

2. Effect of transaction by each co-owner

a. Limited to his share in the partition
b. Transferee does not acquire any specific portion of whole property until
partition
c. Creditors of co-owners may intervene in partition or attack the same if
prejudicial (Art. 499), except that creditors cannot ask for rescission even
if not notified in the absence of fraud (Art. 497)
Cases: Carvajal v. CA, 112 SCRA 237
Pamplona u. Moreto, 96 SCRA 775
Castro v. Atienza, 53 SCRA 264
Estoque v. Pajimula, 24 SCRA 59
Diversified Credit v. Rosado, 26 SCRA 470
PNB v. CA, 98 SCRA 207

H. Rules on co-ownership not applicable to conjugal partnership of gains or absolute

community of property.
I. Special rules on ownership of different stories of a house as differentiated from provisions
of Condominium (Act No. 4726)
1. Concept of Condominium

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 2. Essential requisites for Condominium
3. Important documents to consider in purchase of condominium unit:
a. master or enabling deed
b. declaration of restrictions
c. articles & by-laws of condominium corporation, f
applicable
d. contract of sale

Related Laws: PD 957; RA 6552

4. Rights and Obligations of Condominium owner

Case: Sunset View Condominium v. Judge Campos, G.R. No. 52361, April27, 1981

J. Extinguishment of co-ownership
1. Total destruction of thing
2. Merger of all interests in one person
3. Acquisitive prescription
a. By a third person
b. By one co-owner as against the other co-owners requisites and
unequivocal acts of:
i. Unequivocal acts of repudiation of co-ownership (acts amounting
to ouster of other co-owners) known to other co-owners and shown
by clear and convincing evidence
ii. Open and adverse possession, not mere silent possession for the
required period of extraordinary acquisitive prescription
iii. The presumption is that possession by co-owner is not adverse
Case: Capitle v. De Gahan, G.R. No. 146890, June 8, 2004
4. Partition or Division
a. Right to ask for partition at any time except:
i. When there is a stipulation against it (not over ten years)
ii. When condition of indivision is imposed by transferor (donor or
testator) not exceed 20 years - Art. 494
iii. When the legal nature of community prevents partition (party wall)
iv. When partition is generally prohibited by law (e.g., absolute
community of property
v. When partition would render the thing unserviceable (but
the thing may be sold and · co-owners divide the proceeds (Art.
494) - Action for partition will fail if acquisitive prescription has
set in.
b. Effect of Partition
Arts. 1091, 543, 1092-1093, 499-501
c. Right of Creditors of Individual co-owners Art. 497
d. Procedure for Partition - Rule 69 Rules of Court

VI. POSSESSION
A. Definition and Concept (Art. 523)
Possession is the holding of a thing or the enjoyment of a right, whether by material
occupation or by the fact that the thing or the right is subjected to the action of our will.

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 It is a real right independent of and apart from ownership, i.e., the right of possession
(distinguished from the right to possess or jus possidendi)

B. Essential requisite of possession:

C. Differences between a possession and occupation
D. Essential requisites of possession:
1. Holding or control of a thing or right (corpus) consists of either
a. The material or physical holding or occupation either
b. Exercise of a right
c. Constructive possession (intention to possess is very crucial)
Cases: Ramos v. Director of Lands, 39 Phil. 175
Director vs. CA, 130 SCRA 9
2. Intention to possess (animus possidendi)

D. Degrees of holding or possession

1. Mere holding or possession without title whatsoever and in violation of the
right of the owner, e.g., possession of a thief or a usurper of land.
2. Possession with juridical title but not that of ownership, e.g. possession of tenant,
depository agent, bailee trustee, lessee, antichretic creditor. This degree of
possession will never ripen into full ownership as long as there is no repudiation of
concept under which property is held.
3. Possession with just title or title sufficient to transfer ownership, but not from the
true owner e.g. possession of a vendee from vendor who pretends to be the owner.
This degree of possession ripens into full ownership by lapse of time.
4. Possession with just title from the true owner. The delivery of possession transfers
ownership, and strictly speaking, is the jus possidendi.
E. Cases of possession:
1. Possession for oneself, or possession exercised in one's own name and possession in
the name of another - (Art. 524)
2. Possession in the concept of an owner and possession in the concept of a holder with
the ownership belonging to another (Art. 525)
3. Possession in good faith and possession in bad faith (Art. 526)
Case: Pleasantville Dev't. Corp. v. CA, 253 SCRA 10
Mistake upon a doubtful or difficult question of law as a basis of good faith.
Case: Kasilag v. Roque, G.R. No. 46623, Dec. 7, 1939
F. What things or rights may be possessed.
Only things or rights susceptible of appropriation may be the object of
possession (Art. 530)
G. What may not be possessed by private persons.
1. Res communes
2. Property of public dominion
3. Right under discontinuous and/ or non-apparent easement

H. Acquisition of Possession
1. Ways of acquiring possession (Art. 531)
a. Material occupation of the thing
b. Subjection to the action of our will
i. The doctrine of constructive possession.

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 ii. Includes constructive delivery;
1. Traditio brevi manu (thing already in transferee's hands, e.g.,
under a contract of lease, then delivered under a sale)
2. traditio constitutum possessorium (thing remains in
transferor's hands, e.g. sale, then retained under a commodatum)
c. Proper acts and legal formalities - refers to the acquisition of possession by
sufficient title, intervivos or mortis causa, lucrative or onerous. Example:
Includes traditio longa manu and traditio simbolica, donations,
succession (testate on intestate), contracts, judicial writs of possession, writ
of execution of judgments, execution and registration of public instruments.
Case: Banco Espafw{Filipino v. Peterson, 7 Phil. 409
2. By whom may possession be acquired: (Art. 532)
a. By same person; elements of personal acquisition
b. By his legal representative; requisites
c. By his agent
d. By any person without any power whatsoever but subject to ratification,
without prejudice to proper case of negotiorium gestio (Arts. 2144), 4129,
2150)
e. Qualifiedly, minors and incapacitated persons (Art. 525)
3. What do not affect possession (Arts. 537, 1119)
a. Acts merely tolerated
Case: Macasaet v. Macasaet, G.R. No. 154391-92, Sept. 30, 2004
b. Acts executed clandestinely and without the knowledge of the possessor
c. Acts by violence as long as possessor objects thereto (Art. 536)
Cases: Cuaycong v. Benedicta, 37 Phil. 781
Astudillo v. PHHC, 73 SCRA 15
Peran v. CFI, 125 SCRA 79
4. Rules to solve conflict of possession (Art. 538): Possession cannot be recognized in
different personalities, except in cases of co-possession by co-possessors without
conflict claims or interest. In case of conflicting possession, preference is given to:
(a) present or actual possessor; (b) one longer in possession if two or more
possessors; (c) if dates of possession are same, one who presents a title; (d) if all
conditions are equal, the thing is placed in judicial deposit pending determination of
possession or ownership through proper proceedings

I. Effect of Possession. In general, every possessor has a right to be respected in his

possession. If disturbed, he has a right to protect or restore his possession (Art. 539)
1. Actions to recover: summary proceedings
a. Forcible entry or unlawful detainer. Writ of preliminary injunction may be asked
for by plaintiff within 10 days from filing forcible entry action.
Case: Yu v. Honrado, 99 SCRA 273

The same writ is available in unlawful detainer actions upon appeal (Art. 1674)

b. Accion publiciana (based on superior right of possession, not of

ownership)
c. Accion reinvidicatoria (recovery of ownership), including right to possess
d. Action for replevin (possession or ownership for movable property)
e. Lawful possessor can employee self-help (Art. 429)
2. Entitlement to fruits- possessor in good faith/bad faith (Art. 544, 549)

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 3. Reimbursement for expenses -possessor in good faith/bad faith. Liability for
loss or deterioration of property by possessor in bad faith. (Art. 553; 552)
4. Possession of movable acquired in good (in concept of owner) is equivalent to title
(Art. 559). Possessor has actual title which is defeasible only by true owner – one
who has lost a movable or has been unlawfully deprived thereof may recover it
without reimbursement, except if possessor acquired it at a public sale.

J. Effect of possession in the concept of owner:

1. Possession may be lapsed of time ripen into full ownership, subject to certain
exceptions
2. Presumption of just title and cannot be obliged to show or prove it (Art. 541);
exception (Art. 1131)
3. Possessor may bring all actions necessary to protect his possession except accion
reivindicatoria
4. May employ self-help under Art. 429
5. Possessor may ask for inscription of such real right of possession in the registry of
property
6. Has right to the fruits and reimbursement for expenses (assuming he is a
possessor in good faith)
7. Upon recovery of possession which he has been unlawfully deprived may demand
fruits and damages.
8. Generally, he can do on the things possessed everything that the law authorizes
owner to do until he is ousted by one who has a better right.
9. Possession in good faith and possession in bad faith. (Art. 528). Mistake .upon a
doubtful or difficult question of law as a basis of good faith. (Art. 526, par. 3).
K. Presumptions in favor of the possessor:
1. Of good faith until the contrary is proved (Art. 527)
2. Of continuity of initial good faith in which possession was commenced or
-possession in good faith does not lose this character except in the case and from
the moment possessor became aware or is not unaware of improper or wrongful
possession. (Art. 528)
Case: Cordero v. Cabral, 122 SCRA 532
3. Of enjoyment of possession in the same character in which possession was required
until contrary is proved (Art. 529)
4. Of non-interruption of possession in favor of present possessor who
proves possession at a previous time until the contrary is proved (Art. 554) Arts.
1120-1124)
5. Of continuous possession or non-interruption of possession of which he was
wrongfully deprived for all purposes favorable to him (Art. 561). Present
possession presumed to be the possession at previous time & has continued
to be so during intervening time, unless proved contrary 1138 (2) .
6. Other presumptions with respect to specific properties of property rights:
a. Of extension of possession of real property to all movables contained
therein so long as it is not shown that they should be excluded; exceptions
(Art. 426)
b. Non-interruption of possession of hereditary property (Art. 533 & 1078)
c. Of just title in favor of possessor in concept of owner (Art. 541; but see: Art.
1141)
7. Possession may be lost by:
a. Abandonment
b. Assignment, either onerous or gratuitous

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 c. Destruction or total loss of thing or it goes out of commerce
d. Possession by another; if possession has lasted longer than one year; real
right of possession not lost until after ten (10) years - subject to Art. 537
(acts merely tolerated, etc.)

VII. USUFRUCT
A. Concept - (Art. 562)
Usufruct is a real right, temporary in character that authorizes the holder to enjoy
all the advantages derived from a normal exploitation of another's property, according
to its destination or purpose, and imposes and obligation of restoring at the time
specified, either the thing itself or its equivalent.

B. Historical considerations
C. Characteristics of Usufruct
D. Usufruct distinguished from lease; from servitude
E. Classes of Usufruct
1. By origin:
a. Voluntary
b. Legal - Art. 321 CC; Art. 226 Family Code
c. Mixed
2. By person enjoying right of usufruct a. Simple
b. Multiple
i. Simultaneous
ii. Successive
Limitation on successive usufruct (Art. 756, 863 & 869)
3. By object of usufruct
a. Rights - (Art. 574)
b. Things
iii. Normal
iv. Abnormal, irregular or quasi-usufruct
4. By the extent of the usufruct
a. As to the fruits
i. Total
ii. Partial (Art. 598)
b. As to object
i. Singular
ii. Universal (Art. 595) - subject to provisions of Arts. 758 & 759
5. By the terms of usufruct (Art. 564)
a. Pure
b. Conditional
c. With a term (period)

F. Rights of Usufructuary
1. As to the thing and its fruit
a. Right to possess and enjoy the thing itself, its fruits and accessions
- Fruit consist of natural, industrial and civil fruits
- As to hidden treasure, usufructuary is considered a stranger (Art.
566; 436)
- Fruits pending at the beginning of usufruct (Art. 567)
- Civil fruits (Arts. 569, 588)
b. Right to lease the thing (Art. 572) - - Limitations

13
 - Liability of usufructuary - lessor (Art. 590)
- Exceptions to right of-leasing the thing
Case: Fabie v. David, 75 Phil. 536
c. Right to improve the thing (Art. 579)
2. As to the legal right of usufruct itself
a. Right to mortgage
right of usufruct (Art. 572)
b. Right to alienate the usufruct, except purely personal usufructs, or when title
constituting it prohibits the same.

G. Rights of the naked owner

1. At the beginning, during and termination of usufruct (obligations of usufructuary at
the beginning of usufruct)
2. During the usufruct:
a. Retains title to the thing or property
b. He may alienate the property. Limitations (Art. 581)

H. Obligations of Usufructuary
1. At the beginning of usufruct or before exercising the usufruct
A. to make inventory (Art. 583)
1. Requisites of inventory
i. Immovables described
ii. Movables appraised

2. Exception to requirement of inventory

i. no one will be injured thereby (Art. 585)
ii. title constituting usufruct excused the making of
inventory
iii. title constituting usufruct already makes an inventory

B. To give bond for the faithful performance of duties as usufructuary

1. No bond are required in the following:
i. No prejudice would result (Art. 585)
ii. Usufruct is reserved by donor (Art. 584)
iii. Title constituting usufruct excused usufructuary
iv. If usufructuary takes possession under a caucion juratoria
2. Effect of filing a bond (Art. 588)
3. Effect of failure to ·give bond (Art. 586, 599)

2. During the usufruct

a. To take care of the thing like a good father or a family
(Art. 589). Effect of failure to comply with obligation (Art. 610)
b. To undertake ordinary repairs (Art. 592). Concept of ordinary repairs
c. To notify owner of need to undertake extra-ordinary repairs (Art. 593)
1. Concept of extraordinary repairs
2. Naked owner obliged to undertake them but when made by
owner, usufructuary pays legal interest on the amount while usufruct
lasts (Art. 594, par. 1)
3. Naked owner cannot be compelled to undertake extra-ordinary
repairs.
a. If indispensable and owner fails to undertake extraordinary

14
 repairs may be made by usufructuary; repairs
usufructuary right (Art. 594, par. 2)
d. To pay for annual charges and taxes on the fruits
Case: Board of Assessment Appeals of Zamboanga del Sur v. Samar
Mining Company, Inc., 37 SCRA 734
e. To notify owner of any act detrimental to ownership (Art. 601)
f. To shoulder the costs of litigation re usufruct (Art. 602)
g. To answer for fault or negligence of alienee, lessee, or agent of usufructuary
(Art. 590)

J. Special Cases of usufruct

1. Usufruct over a pension or periodical income (Art. 570)
2. Usufruct of property owned in common (Art. 582)
3. Usufruct of head of cattle (Art. 591)
4. Usufruct over vineyards and woodlands (Arts. 575-576)
5. Usufruct on a right of action (Art. 578)
6. Usufruct on mortgaged property (Art. 600)
7. Usufruct over an entire patrimony (Art. 598) Liability of
usufructuary for debts
8. Usufruct over deteriorable property (Art. 578)
9. Usufruct over consumable property (or quasi-usufruct) Art. 574)

K. Extinguishment of usufruct (Art. 603)

1. Death of usufructuary. Exception: unless contrary intention clearly appeals

2. Expiration of period or fulfillment of resolutory condition imposed on usufruct
by person constituting the usufruct
Cases: Baluran v. Navarro, 79 SCRA 309
NHA v. CA, Bulacan Garden Corp. v. Manila Seedling Bank G.R. No.
148830, April 13, 2005
a. time that may elapse before a third person attains a certain age, even if
the latter dies before period expires unless granted only in consideration
of his existence (Art. 606)

3. Merger of rights of usufruct and naked ownership m one person

4. Renunciation of usufruct
a. Limitations: Must be express If made in fraud of creditors, waiver may
be rescinded by them through action under Art. 1381.
5. Extinction or loss of property
a. If destroyed property is insured before the termination of the usufruct (Art.
608)
1. When insurance premium paid by owner and usufructuary (Art.
608, Par. 1)
a. If owner rebuilds, usufruct subsists on new building
b. If owner does not rebuild interest upon
insurance proceeds paid to usufructuary
2. When the insurance taken by owner only because usufructuary
refuses Art. 608, par. 2)

a. Owner entitled to insurance money (no interest paid to

usufructuary)

15
 b. If he does not rebuild, usufruct continues over remaining
land and/or owner may pay interest on value of both (Art.
607)
c. If owner rebuilds, usufruct does not
continue on new building, but owner must pay interest
on value on land and old materials.
3. When insurance taken by usufructuary only depends on value of
usufructuary's insurable interest (not provided for in Civil Code)
a. Insurance proceeds to usufructuary
b. No obligation to rebuild .
c. Usufruct continues on the land
d. Owner does not share in insurance proceeds
b. If destroyed property is not insured (Art. 607)
1. If building forms part of an immovable under usufruct
a. If owner does not rebuild, usufruct continues over the
land and materials
b. If owner rebuilds, usufructuary must allow owner to
occupy the land and to make use of materials, but value
of both and land and materials.
6. Termination of right of person constituting the usufruct.
7. Prescription
Cases covered: If third party acquires ownership of thing or property in usufruct
or right of ownership lost through prescription or right of usufruct not began
within prescriptive period, or if there is a tacit abandonment or non-user of thing
held in usufruct for required period
8. What do not cause extinguishment of usufruct
a. Expropriation of thing in usufruct (Art. 609)
b. Bad use of thing in usufruct (Art. 810) Owner's right
c. Usufruct over a building (Art. 607, 608) VIII.

EASEMENT OR SERVITUDES

A. Definition - Easements or real servitudes is a real right which burdens a thing with a
presentation consisting of determinate servitudes for the exclusive enjoyment of a person who is not its
owner or of a tenement belonging to another, or, it )s the -real right over an immovable by nature i.e.
land and buildings, by virtue of which the owner of the same has to abstain from doing or to allow
somebody else to do something in his property for the benefit of another thing/ or person.

B. Essential feature of easements/real servitudes/praedial servitudes

1. It is a real right, i.e., it gives an action in rem or real action against any possessor of
servient estate.
2. It is a right enjoyed over another property, i.e., it cannot exist in one's own
property (nulli res sua servit).
3. It is a right constituted over an immovable by nature (Land and buildings), not over
movables.
4. It limits the servient owner's right of ownership for the benefit of the dominant
estate. Right of limited use, but no right to possess servient estate. Being an
abnormal limitation of ownership, it cannot be presumed.
5. It creates a relation between tenements
6. It cannot consist in requiring the owner of the servient estate to do an act,
(servitus in faciendo consistere nequit) unless the act is accessory to a praedial

16
 servitude (obligation propter rem)
7. Generally, it may consist in the owner of the dominant estate demanding
that the owner of the servient estate refrain from doing something (servitus· in non
faciendo), or that the latter permit that something be done over the servient
property (servitus inpatendo), but not in the right to demand that the owner of the
servient right to demand that the owner of the servient estate do something (
servitus in faciendo) except if such act is an accessory obligation to a praedial
servitude (obligation propter rem).
(Characteristics of easements):
8. It is inherent or inseparable from estate to which they actively or passively belong
(Art. 617)
9. It is intransmissible, i.e., it cannot be alienated separately from the tenement
affected, or benefited.
10. It is indivisible. (Art. 616)
11. It has permanence, i.e., once it attaches, whether used or not, it continues and may
be used at anytime.

C. Classification of Servitudes
1. As to recipient of benefits:
a. Real or Praedial
b. Personal (Art. 614) [But note that under Roman Law, usufruct together
with usus habitatio, and operae servorum were classified as personal
servitudes]

2. As to course or origin:
a. Legal, whether for public use or for the interest of private persons (Art.
634)
b. Voluntary

3. As to its exercise (Art. 615)

a. Continuous
b. Discontinuous

4. As indication of its existence (Art. 615)

a. Apparent
b. Non-apparent

5. By the object or obligation imposed (Art. 616)

a. Positive
b. Negative (prescription start to run from service of notarial prohibition)

D. General rules relating to servitudes

1. No one can have a servitude over his own property (nulli res ·
sua servit)
2. A servitude cannot consist m doing (servitus in faciendo consistere nequit)
3. There cannot be a servitude over another servitude (Servitus servitutes esse non
potest)
4. A servitude must be exercised in a way least burdensome to the owner of the land.
5. A servitude must have a perpetual cause.

E. Modes of Acquiring Easements

17
 Case: North Negros v. Hidalgo, 63 Phil. 664
1. By title-juridical act which give rise to the servitude, e.g. law, donations, contracts
or wills.
Case: Dumangas v. Bishop of Jaro, 34 Phil. 541
a. If easement has been acquired but no proof of existence of easement
available, and easement is one that cannot be acquired by prescription- then
1. May be cured by deed of recognition by owner of
servient estate, or
2. By final judgment
3. Existence of an apparent sign considered a title (Art. 624)
Case: Amor v. Florentino, 74 Phil. 404
2. By prescription
Case: Ronquillo v. Roco, 63 Phil. 86

F. Rights and Obligations of Owners of Dominant and Servient Estates

1. Right of owner of dominant estate
a. To use the easement (Art. 626) and exercise all rights necessary for the use
of the (Art. 625)
b. To do at his expense, all necessary works for the use and preservation of
the easement (Art. 627)
c. In a right of way, to ask for change in width of easement sufficient
for needs of dominant estate (Art. 651)
Case: De Luna v. Encarnacion
2. Obligations of the owner of Dominant Estate:
a. To use the easement for benefit of immovable and in the manner
originally established (Art. 626)
b. To notify owner of servient estate before making repairs and to
make repairs in a manner least inconvenient to servient estate (Art. 627)
c. Not to alter easement or render it more burdensome (Art. 627)
Case: Valderrama v. North Negros, 48 Phil. 482
d. To contribute to expenses of works necessary for use and preservation of
servitude, if there are several dominant estates, unless be renounces his
interest (Art. 628)
3. Rights of owner of servient estate
a. To retain ownership and use of his property (Art. 630)
b. To change the place and manner of use the easement (Art. 629, par. 2)
4. Obligations of the servient estate
a. Not to impair the use of the easement (Art. 628, par. 1)
b. To contribute proportionately to expenses if he uses the easement (Art.
628, par. 2)

G. Modes of Extinguishment of Easements:

1. Merger - must be absolute, perfect and definite, not merely temporary.
2. By non-user for 10 years
a. Computation of the period
(1) discontinuous easements; counted from the day they ceased to be
used
(2) continuous easements: counted from the day an act adverse to the
exercise took place.
b. The use by a co-owner of the dominant estate bars prescription with
respect to the others. (Art. 633)

18
 c. Servitudes not yet exercised cannot be extinguished by non-user.

3. Extinguishment by impossibility of use

4. Expiration of the term or fulfillment of resolutory condition
5. Renunciation of the owner of dominant estate - must be specific clear, express
(distinguished from non-user)
6. Redemption agreed upon between the owners
7. Other causes not mentioned in Art. 631
a. Annulment or rescission of the Title constituting the easement
b. termination of the right of grantor
c. abandonment of the servient estate d. eminent
domain
e. special cause for extinction of legal rights of way; if right of way; if
right of way no longer necessary

H. Legal Easements
1. Law Governing Legal Easements-
a. For public easements
1) special laws and regulations relating thereto, e.g., Pres. Decree
1067, P.D. 705
2) by the provisions of Chapter 2, Title VII, Book II New Civil Code
b. For private legal easements
1) by agreement of the interested parties whenever the law does not
prohibit it and no injury is suffered by a third person
2) by the provisions of Chapter 2, Title VII Book II

2. Private Legal Easements provided for by the New Civil Code

a. those established for the use of water or easements relating to waters
(Art. 637-648)
1) Natural drainage of waters (Art. 637)
Case: Ongsiako v. Ongsiako
2) Easements on lands along riverbanks (Art. 638), See Water Code
3) Abutment of a dam (Art. 639)
4) Aqueduct (Art. 642-646)
5) Drawing waters and watering animals (Art. 640)
6) Stop lock or sluice gate (Art., 649)
b. The easement of right of way (Arts. 649-657)
Cases: Quimen v. CA, G.R. No. 112331, May 29, 1996 ·
David Chan v. CA, 268 SCRA 677
La VistaAssn. v. CA, G.R. No. 95252, Sept. 5, 1997
Vda. De Beltazar v. CA, 245 SCRA 333
Sps. de la Cruz v. Ramiscal, G.R. No. 137882, Feb. 4,2005
c. The easement of party wall (Arts. 658-666)
d. The easement of light and view (Art. 667-673)
e. The easement of drainage of buildings (Arts. 674-676)
f. The easement of distance for certain constructions and plantings (Arts.
677-681)
g. The easement against nuisances (Art. 682-683)
h. The easement of lateral and subjacent support (Arts.
684-687)

19
Book III- Different Modes of Acquiring Ownership

1. MODE AND TITLE DIFFERENTIATED

Mode is the specific cause which produces dominion and other re.al rights as a result of the
co-existence of special status of things, capacity and intention of persons and fulfillment of
the requisites of law. Title is every juridical right which gives a means to the acquisition of
real rights but which in itself is insufficient.

2. MODES OF ACQUIRING OWNERSHIP

a. Original Modes - which produce the acquisition of ownership independent of any
pre-existing right of another person, hence, free from any burdens or
encumbrances.
i. occupation
ii. intellectual creation
b. Derivative Modes - based on a right previously held by another person,
and therefore, subject to the same characteristics powers, burdens, etc., as
when held by previous owner.
1. Law - e.g. registration under Act 496; estoppel of title under Art. 1434
CC; marriage under absolute community of property system; hidden treasure;
accession (Art. 445); change in river's course (Art. 461); accession continua
over movables (Art. 466); Arts. 681, 1456 CC, and Art. 120 FC.
i. Donation
ii. Succession
iii. Prescription
iv. Tradition

Kinds of Tradition:
a. Real Tradition
b. Constructive Tradition
i. Symbolical delivery
ii. Delivery of Public Instrument
iii. Tradition Longa manu
iv. Tradition Brevi manu
v. Tradition Constitutum Possessorium
vi. Quasi-Tradition
vii. Tradition by operation of law

3. OCCUPATION
a. Not applicable to ownership of a piece of land (Art. 714 CC)
b. Privilege to hunt and fish regulated by. special law (Art. 715)
c. Occupation of a swarm of bees or domesticated animals (Art. 716) - see also Art.
560
d. Pigeons and fish (Art. 717)
e. Hidden treasure (Art. 718) see also Arts. 438-439
f. Lost movables; procedure after finding lost movables (Art. 719-720)

4. INTELLECTUAL CREATION- Intellectual Property Code

(Rep. Act No. 8293)
Intellectual Property Rights (IPR):
a. Copyright & related rights
b. Trademarks & service marks

20
 c. Geographic indications
d. Industrial designs
e. Patents
f. Topographies of integrated circuits
g. Rights of performers, producers of sound recordings &
broadcasting orgs.
h. Protection of undisclosed information
1. Laws repealed by the Intellectual Property Code (Sec. 239)

All Acts and part of Acts inconsistent with Intellectual

Property Code, particularly:
Pres. Decree No. 49 - Intellectual Property Decree, including PD 285 as
amended
Rep. Act. No. 165, as amended- Patent Law
Rep. Act. No. 166, as amended
Arts. 188 & 189 of the Revised Penal Code

DONATION

I. Nature of Donation - A bilateral contract creating unilateral obligations on donor's, part.

II. Requisites of donation:

a. Consent and capacity of the parties
b. Animus donandi (causa)
c. Delivery of thing donated
d. Form as prescribed by law

Note: There must be impoverishment (in fact) of donor's patrimony and enrichment on part
of donee)

III. Kinds of donations

1. As to its taking effect
a. Inter vivos (Arts. 729, 730, 731)
b. Mortis causa (Art. 728)
c. Propter nuptias (Arts. 82, 87, Family Code)

2. As to cause or consideration:
a. simple
b. remuneratory
c. onerous- (imposes a burden inferior in to value property donated)
i. improper-burden equal in value to property donated
ii. sub-modo or modal - e.g. imposes a prestation upon donee as to
how property donated will be applied (See: Art. 882 C.C.)
iii. mixed donations, e.g., sale for price lower than value of property
Case: Lagazo v. Court of Appeals, 287 SCRA 24
3. As to effectivity or extinguishment
a. pure
b. conditional (Art. 730, 731)
c. with a term

4. Importance of classification a. as to form

21
 b. as to governing rules
c. as to impossible conditions- Art. 727, 1183

5. Characteristics of a donation mortis causa

a. convey no title or ownership before donor's death
b. before donor's death transfer is revocable.
c. transfer is void if donor survives donee.
6. Distinction between donation mortis causa and donation inter vivos.
a. what is important is the time of transfer of ownership, even if transfer of
property donated may be subject to a condition or a term
b. importance of classification - validity and revocation of donation
Cases: Bonsato u. Court of Appeals, 95 Phil. 481
Gestopa u. Court of Appeals, 342 SCRA 105
Austria-Magat u. CA, G.R. No. 106755, Feb. 1, 2002

IV. Who may not give or receive donations - Art. 735, 737, 738, 741, 742

V. Who may give or receive donations (Art. 736, 739 [1027, 1032], 740, 743, 744)

Cases: Vitug v. Court of Appeals, 183 SCRA 755

Hemedes v.. Court of Appeals, 316 SCRA 347

VI. Acceptance of donation

a. who may accept (Art. 745, 747)
b. time of acceptance of donation inter vivos (Art. 746) - donation mortis causa
Case: Lagazo u. Court of Appeals, 287 SCRA 24

VII. Form of donations

a. personal property (Art. 748)
b. real property (Art. 749)
c. Rules in Art. 748 and 749 not applicable to .
i. onerous donations
ii. modal donations
iii. mortis causa donations
iv. donations propter nuptias
Case: Sumipat u. Banga, G.R. No. 155810, Aug. 13, 2004

VIII. What may be donated

1. All present property, or part thereof, of donor
a. provided he reserves, in full ownership or usufruct, sufficient means for
support of himself and all relatives entitled to be supported by donor at
time of acceptance (Art. 750)

Case: Calicdan v. Cendana, G.R. No. 155080, Feb. 5,2004

b. provided that no person may give or receive by way of donation, more

than he may give or receive by will (Art. 752) also, reserves
property sufficient to pay donor's debts contracted before donation,
otherwise, donation is in fraud of creditors, (Arts. 759, 1387)

If donation exceed the disposable or free portion of his estate, donation is

22
 inofficious.

Exceptions:
a. donations provided for in marriage settlements
between future spouses (Art. 84, Family Code; Art.
130 C.C.) - not more than l/5 of present property.
b. donations propter nuptias by an ascendant consisting of
jewelry, furniture or clothing not to exceed 1/10 of
disposable portion (Art. 1070)

2. What may not be donated

a. meaning of future property: anything which donor cannot dispose of at the
-time of donation (Art. 751). Exception: marriage settlements of future spouses only
in event of death to extent laid down in civil code re-testamentary succession
(Art. 130 C.C.; Art. 84 Family

IX. Effect of Donation

A. In general
Case: Shopper's Paradise Realty v. Roque, G.R. No. 148775, Jan. 13, 2004
1. Donee may demand actual delivery of thing donated.
2. donee is subrogated to rights of donor in the property donated (Art. 754)
3. Donor not obliged to warrant things donated, except in onerous donations in
which case donor is liable for eviction up to extent of burden (Art. 754)
4. Donor is liable for eviction or hidden defects in case of bad faith on his part
(Art. 754)
5. In donations propter nuptias, donor must release property donated from
mortgages and other encumbrances, unless contrary has been stipulated (Art.
131 C.C.). Donations propter nuptias of property subject to encumbrances
are valid. Effect of foreclosure (Art. 85 FC)
6. Donations to several donees jointly - no right of accretion, except:
a. Donor provides otherwise
b. Donation to husband and wife jointly with right of accretion unless
donor provides otherwise (Art. 753)

B. Special provisions
1. Reservation by donor of power to dispose (in whole or in part) or to
encumber property donated (Art. 755)
2. Donation of naked ownership to one donee and usufruct to another (Art. 756
CC)
3. Conventional reversion in favor of donor or other person (Art. 757)
4. Payment of donor's debt- (Art. 758)
a. If expressly stipulated - donee to pay only debts contracted before
the donation, unless specified otherwise - but in no case shall donee be
responsible for debts exceeding value of property donated, unless clearly
intended. (Art. 272; 1183)
b. If there is no stipulation - Donee answerable only for donor's debt only in case of donation is
in fraud of creditors.

5. Illegal or impossible conditions

X. Revocation and Reduction of Donations

23
 A. Revocation distinguished from reduction of donations.
B. Causes of Reduction/Revocation
1. Inofficiousness of donation (Art. 752, 771, 773; Art.
911 & 912 also govern reduction
a. Who may ask for reduction (772)
b. Rule applied – If disposable portion not sufficient to cover two or
more donations (Art. 773)

2. Subsequent birth, reappearance of child or adoption of minor by

donor (Art. 760).
C. Revocation (only)
1. Ingratitude (Art. 765)
a. Causes
b. Time to file action for revocation
(Art. 769)
c. Who may file (Art. 770)
d. Effect of revocation: On alienations and mortgages (Art. 766; 767)

Cases: Eduarte v. Court of Appeals,

. 253 SCRA 391
Noceda v. Court of Appeals,
313 SCRA 504

2. Violation of condition
a. Prescription of action
b. Transmissibility of action

Case: Yulo and Sons v. Roman Catholic Bishop of San Pablo,

G.R. No. 133705,
March 31, 2005

3. Effect of revocation or reduction - (Art. 762, 764 par. 2, 767)

4. Effect as to fruits (Art. 768)

XI. Lease

1. General characteristics (of every lease)

i. temporary duration
ii. onerous
iii. price is fixed according to contract duration

2. Kinds of Leases
a. Lease of things - movables and immovables
b. Lease of work or contract of labor (Arts. 1700-1712)
c. Lease of services
i. household service
ii. contract for a piece of work (Arts. 1713-1731)
iii. lease of services of common carriers (Art. 1732-1763)

3. Lease of Things
a. concept- (Art. 1643)

24
b. consumable things cannot be the subject. matter of lease, except; (Art. 1645)
i. consumable only for display or advertising
(lease ad pompam et ostentationem)
ii. goods are accessory to an industrial establishment, e.g. coal in a factory
c. special characteristics of lease of things:
i. essential purpose is to transmit the use and
enjoyment of a thing
ii. consensual
iii. onerous
iv. price fixed in relation to period of use or enjoyment
v. temporary
d. lease distinguished from sale, usufruct, commodatum
e. period of lease - cannot be perpetual
i. definite period - not more than 99 years
ii. indefinite period:
a. rural land (Art. 1682)
b. urban land (Art. 1687)
f. assignment of lease (Art. 1649)
g. sublease (Art. 1650)
i. of House Rental Law (R.A. 877)
ii. obligation of sublessee to lessor (Art. 1651, Art. 1652)
h. Rights and obligations of lessor and lessee:
i. obligations of lessor (Art. 1654, 1661)
ii. obligations of lessee (Art. 1657, 1662, 1663, 1665, 1668, 1667)
iii. right of lessee to suspend payment of rentals (Art. 1658)
iv. Case: Chua Tee Dee (Pioneer Enterprises v. CA, G.R. No. 157568, May 18,
2004
v. right to ask for rescission (Art. 1659, 1660)
vi. lessor not obliged to answer for mere act of trespass ·
by a third person (Art. 1664)
i. Grounds for ejectment of Lessee by Lessor (Art. 1673) (Note the grounds under
the House Rental Law Query. Are they still effective?
j. Right to ask for writ of preliminary mandatory injunction in unlawful
detainer cases (Art. 1674; 539 par. 2)
k. Implied extension of lease (Arts. 1670, 1682, 1687, 1675)
1. Right of purchaser of leased land (Art. 1676, 1677)
m. Useful improvements in good faith made by lessee (Art. 1678)
n. Special provisions for leases of rural lands (Art. 1680-1685)
o. Special provisions for leases of urban lands (Art. 1686-1688)

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