Modes of Acquiring Ownership

DIFFERENT MODES OF ACQUIRING OWNERSHIP
Real right (jus in re) is a right belonging to a person over a specific thing, against
whom such right may be personally enforced, while personal right (jus ad rem) is
a right belonging to a person to demand from another, the fulfillment of a
prestation to give, to do or not to do.
Modes of acquiring ownership and other real rights:
1. Occupation
2. Intellectual creation
3. Prescription
4. Law
5. Donation
6. Testate and instestate succession
7. In consequence of certain contracts, i.e., tradition.
The first 3 are original and the last four are derivative. Original if the ownership is
created for the first time in the person of an individual who has no predeccessor
with respect to the title, and it is derivative if the ownership is merely transferred
from one individual to another.
In law, independently of the other modes, automatically and directly vests the
ownership of the thing in a certain individual once the prescribed requisites or
conditions are present or complied with.
Examples:
1. Hidden treasures which a stranger discovers by chance on another’s property.

Hence, 1/2 of the treasure belongs by right of occupation to the stranger, while
the other half belongs by operation of law to the proprietor. (Art. 438)
2. Fruits naturally falling from a tree upon adjacent land. Here, the ownership of
the fruits is vested automatically in the owner of the adjacent land. (Art. 681)
Tradition is a derivative mode by virtue of which they are transmitted from the
patrimony of the grantor to that of the grantee by means of a just title, there being
both the intention and the capacity on the part of both parties.
 

 
 
 
 

Its requisites are:
1. Right to be transmitted should have previously existed in the patrimony of the

grantor.
2. Transmission should be by virtue of a just title.
3. Grantor and grantee should have the intention and the necessary capacity to
transmit and to acquire.
4. Transmission should be manifested by some act which may be physical,
symbolical or legal.
Kinds of tradition:
1. Real is by delivery or transfer of a thing from hand to hand if it is movable, or

by certain material and possessory acts of the grantee performed in the presence
and with the consent of the grantor if it is immovable.
2. Constructive is by delivery of a movable or immovable thing by means of acts
or signs thereof. This delivery may take place in the following ways:
a. Traditio symbolica is by delivery of a symbol representing the thing which is

delivered, such as the key to a warehouse.
b. Traditio longa manu by the grantor pointing out to the grantee the thing which
is delivered which at the time must be withing sight.
c. Traditio brevi manu is when the grantee is already in possession of the thing
under a title which is not of ownership, such as when the lessee purchases from
the lessor the object of the lease.
d. Traditio constitutum possessorium by the grantor alienates a thing belonging to
him, but continues in possession thereof under a different title, such as that of a
lessee, pledgee or depositary.
3. Quasi-tradicion is used to indicate the exercise of a right by the grantee with

the acquiescence of the grantor, such as delivery which may be made by the
execution of a public instrument with respect to incorporeal property. (See Art.
1501)
4. Tradicion por ministerio de la ley is delivery which takes place by operation of
law, such as by the registration of a deed of transfer of titled land which is also
the operative act in order to bind innocent persons in such deeds.
 
 

 
 
 
 
 

OCCUPATION
(Arts. 713-720)
Occupation is a mode by the seizure of corporeal things which do not have an

owner with the intention of acquiring them and in accordance with the rules
prescribed by law.
Its requisites are:
1. There must be a seizure or apprehension.

2. The thing seized must be corporeal.
3. The thing seized must be without any owner.
4. There must be an intention to acquire ownership over the things.
5. There must be compliance with the rules prescribed by law.
INTELLECTUAL CREATION
(Arts. 721-724)
Intellectual creation is a mode by virtue of which the author acquires intellectual

property or ownership over the products of his intellect, with the consequent
power to authorize or refuse publication or production of such products.
DONATION
(Arts. 725-773)
Donation is an act of liberality whereby a person disposes gratuitously of a thing

or right in favor of another, who accepts it. (Art. 725) It is when the gift imposes
upon the donee a burden which is less than the value of the thing given. (Art.
726)
Its requisites:
1. Decrease or reduction of the patrimony of the donor.

2. Increase the patrimony of the donee.
3. Intent to make a donation. (Animus donandi)
 
 
 
 

 
 

Kinds of donations:
AS TO EFFECTIVITY –
1. Donation inter vivos are those which take effect independently of the donor’s
death.
a. Simple
b. Remunerative is where a person gives to another on account of services
rendered by the latter to the former, provided that they do not constitute a
demandable debt.
c. Onerous is where a person gives to another in consideration of demandable
debt.
2. Donation mortis causa are those which are effective upon the donor’s death
and must therefore be governed by the rules of testamentary succession. (Art.
728) Thus, the donation is revocable at will. (Q3, 1990 Bar)
Characteristics of a donation mortis causa:
a. Convey no title or ownership to the transferee before the death of the

transferor.
b. That before his death, the transfer should be revocable by the transferor at
will, ad nutum.
c. The transfer should be void if the transferor should survive the transferee.
The right to dispose of some of the things donated, or of some amount which
shall be a charge thereon, may be reserved by the donor; but if he should die
without having made use of this right, the property or amount reserved shall
belong to the donee. (Art. 755) (Q3, 1990 Bar)
AS TO PERFECTION OR EXTINGUISHMENT –
1. Pure donations are those which are immediately demandable.

2. Donation with a condition are those whose effectivity are subordinated to the
fulfillment or non-fulfillment of a future and uncertain fact or event.
3. Donation with a term are those whose effectivity or extinguishment is subject
to the expiration of a term or period.
 
 
 
 

 
 

The donation inter vivos is perfected from the moment the donor knows of the
acceptance by the donee. (Art. 734)
In order that a person can make a donation, 3 requisites are necessary. They
are:
1. Capacity to enter into contracts.

2. Able to dispose of his property.
3. Not be prohibited or disqualified by law from making the donation.
In order that a person can accept a donation, only one requirement is necessary,
that, he must not be prohibited or disqualified by law from accepting the donation.
Donor’s capacity shall be determined as of the time of the making of the

donation. (Art. 737)
The following donations are prohibited by law, among others:
1. Those made by persons who were guilty of adultery or concubinage at the

time of the donation.
2. Those made between persons found guilty of the same criminal offense, in
consideration thereof.
3. Those made to a public officer or his wife, descendants and ascendants, by
reason of his office. (Art. 739)
4. Those made by a ward to the guardian before the final accounts of the
guardianship have been approved, unless the guardian is an ascendant,
descendant, brother or sister.
5. Those made by the spouses to each other during the marriage, or to the
persons of whom the other spouse is a presumptive heir.
 
 
 
 
 
 

Modes of Acquiring Ownership

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DIFFERENT MODES OF ACQUIRING OWNERSHIP

Modes of acquiring ownership and other real rights:

1. Hidden treasures which a stranger discovers by chance on another’s property.

Its requisites are:

1. Right to be transmitted should have previously existed in the patrimony of the

1. Real is by delivery or transfer of a thing from hand to hand if it is movable, or

a. Traditio symbolica is by delivery of a symbol representing the thing which is

3. Quasi-tradicion is used to indicate the exercise of a right by the grantee with

Occupation is a mode by the seizure of corporeal things which do not have an

Its requisites are:

1. There must be a seizure or apprehension.

Intellectual creation is a mode by virtue of which the author acquires intellectual

Donation is an act of liberality whereby a person disposes gratuitously of a thing

1. Decrease or reduction of the patrimony of the donor.

Characteristics of a donation mortis causa:

a. Convey no title or ownership to the transferee before the death of the

1. Pure donations are those which are immediately demandable.

1. Capacity to enter into contracts.

Donor’s capacity shall be determined as of the time of the making of the

The following donations are prohibited by law, among others:

1. Those made by persons who were guilty of adultery or concubinage at the

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