Laws On Property 2021 Handouts

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19/07/2021

GE Board Exam 2021 Law Coverage:

-Obligations and Contracts Laws on Property


-Laws on Property and Land Registration
-Public Land Law and Natural Resources (Book II of the New Civil Code of the Philippines)
-Agrarian Reform laws
-Code of Ethics of the Profession
-Rules and Regulations Governing Land Prepared by:
Surveying Engr. Mark Reynold M. Arriesgado, Juris Doctor
-and other related laws

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Property – All things which are, or Classifications of Property


may be, the object of appropriation. 1. Based on Mobility (Movable/ Immovable)
(Article 414 of the New Civil Code) 2. Based on Ownership (Private/ Public dominion)
3. Based on Physical Existence (Corporeal/
Incorporeal)
What cannot be appropriated because of their 4. Based on Autonomy or Dependence (Principal/
distance, depth, or immensity cannot be Accessory)
considered ‘things’ (i.e. stars, ocean, properties of
public dominion)

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Real/ Immovable properties


(LTASMAFMDC) Real/ Immovable properties
(1) Land, buildings, roads and constructions of all
(4) Statues, reliefs, paintings or other objects for use or
kinds adhered to the soil; 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
(2) Trees, plants, and growing fruits, while they are
the tenements;
attached to the land or form an integral part of an
immovable;
(5) Machinery, receptacles, instruments or implements
intended by the owner of the tenement for an industry
(3) Everything attached to an immovable in a fixed or works which may be carried on in a building or on a
manner, in such a way that it cannot be separated piece of land, and which tend directly to meet the
therefrom without breaking the material or needs of the said industry or works;
deterioration of the object;

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Real/ Immovable properties Real/ Immovable Properties


(6) Animal houses, pigeon-houses, beehives, fish (8) Mines, quarries, and slag dumps, while the matter
ponds or breeding places of similar nature, in thereof forms part of the bed, and waters either
case their owner has placed them or preserves running or stagnant;
them with the intention to have them
permanently attached to the land, and forming (9) Docks and structures which, though floating, are
a permanent part of it; the animals in these intended by their nature and object to remain at a
places are included; fixed place on a river, lake, or coast;

(7) Fertilizer actually used on a piece of land; (10) Contracts for public works, and servitudes and
other real rights over immovable property.

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PERSONAL OR MOVABLE PROPERTIES


(NSFTOS) PERSONAL OR MOVABLE PROPERTIES
(1) Those movables susceptible of appropriation (4) In general, all things which can be transported
which are not included in the preceding article; from place to place without impairment of the real
property to which they are fixed.

(2) Real property which by any special provision of (5) Obligations and actions which have for their
law is considered as personalty; object movables or demandable sums;

(6) Shares of stock of agricultural, commercial and


(3) Forces of nature which are brought under industrial entities, although they may have real
control by science; estate.

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Sample Board Exam Question Q: In the previous question , what kind of


A petroleum operation facility is operated off the coast of
property are the equipment for petroleum
Manila. The facility was located on a floating platform operation?
upon which was permanently attached the heavy
equipment for the petroleum operations. What kind of a. Personal
property is the platform? b. Real
a. Movable c. It depends on the use
d. Cannot be determined
b. Immovable
c. Both movable and immovable
d. NOTA

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CLASSIFICATION BASED ON
Uses of Public dominion (USD)
OWNERSHIP
PUBLIC DOMINION a) For public use- may be used by everybody, even
by strangers or aliens (ex. roads)
Property of public dominion is outside the
commerce of man. They cannot be the subject b) For public service- may be used only by
matter of private contracts or acquisition. authorized persons but exists for the benefit of
all (ex. government office buildings)

Ex. Roads, canals, rivers, torrents, ports and c) For development and national wealth- includes
bridges constructed by the State natural resources such as minerals, coal, oil and
forest

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PRIVATE OWNERSHIP Patrimonial property- part of the public


Can be exercised by private individual over domain owned by the State in its private
their private properties or the State in its capacity for economic purposes
private capacity (patrimonial properties)
Ex. friar lands, escheated properties and
commercial buildings

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Sample Board Exam Question


Property in Conjugal Property Gains
The City of Cavite entered into an agreement with the
Fil-Estate Realty Company, authorizing the latter to Capital Property- exclusive property of the
reclaim 300 hectares of land from the sea bordering husband
the city for docking and harbour facilities, with 30% of
the land to be reclaimed to be owned by Fil- Estate as
compensation for its services. Is the agreement valid?
Paraphernal Property- exclusive property of
the wife
a. Yes, it is allowed under RA 1899 for reclamation of
land.
Note: The default property regime now is Absolute
b. No, because there is no consent of the President. Community Property after the effectivity of Family
c. Yes, it is a perfected contract between the parties Code (1988) so there is no more distinction between
capital and paraphernal property of husband and wife.
d. No, reclaimed land from the sea is public dominion.

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Classification by physical existence Classification by autonomy or dependence


1) Corporeal- all the property the existence of 1) Principal- those to which other things are
considered dependent or subordinated (i.e. such
which can be determined by the senses as the land on which a house is built)

2) Incorporeal- things having abstract existence 2) Accessory- those which are dependent upon or
subordinated to the principal. They are
creating by man and representing value (real designated to complete, enhance or ornament
rights, credit, corporate stocks etc.) another property (i.e. house)

“Accessory follows the principal.”

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IMPORTANCE AND SIGNIFICANCE OF IMPORTANCE AND SIGNIFICANCE OF


CLASSIFICATION OF PROPERTIES CLASSIFICATION OF PROPERTIES
In the Form of Contracts Involving Movable and For Acquisitive Prescription (acquiring a
Immovable Properties
property through lapse of time)
(a) Subject matter of specific contracts: (a) Real property can be acquired by prescription
-Only real property can be the subject of real mortgage in 30 years (bad faith) and 10 years (good
-Only personal property can be the subject chattel faith).
mortgage

(b) Donations of real property (any value) are required to (b) Movables can be acquired by prescription in
be in a public instrument. If it is movable and the value
exceeds 5,000 pesos it should be in writing. 8 years (bad faith) and 4 years (good faith).

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IMPORTANCE AND SIGNIFICANCE OF


Ownership vs Possession
CLASSIFICATION OF PROPERTIES
Ownership Possession
Actions for Recovery of Possession Independent right of The holding of a thing or
exclusive enjoyment and the enjoyment of a right
(a) Possession of real property - recovered control of a thing whether by material
through accion reivindicatoria, accion occupation or by the fact
publiciana, ejectment suits such as forcible entry that the thing or the right
and unlawful detainer. is subjected to the action
of our will

(b) Possession of movable property - recovered


Note: If someone possesses a property, it does not mean that he is the true
Through filing a case of replevin. owner. The true owner has a right of action against the possessor of the thing
in order to recover it.

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Sample Board Exam Question How can Ricky become the owner of
100 pesos?
While waking on a street, Ricky finds a purse
If the owner is unknown, Ricky should immediately
containing 100 pesos. Does he become the owner deposit the movable (money) with the mayor of the place
thereof by his mere possession? where the finding took place.

a. Yes, because the owner is unknown There shall then be a public announcement of the finding
for 2 consecutive weeks. Six months from the publication
b. No, possession does not make him a owner having elapsed without the owner having appeared, the
thing found shall be awarded to Ricky, after
c. Yes, he found it by chance. reimbursement of the expenses.
d. No, he can be liable for stealing it.
If the owner should appear in time, he shall be obliged to
pay Ricky, as a reward, 1/10 of the amount found.

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7 Basket of Rights of an Owner Specific Rights of an Owner under the


Civil Code
(1) Jus Utendi: Right to enjoy and receive what the
property produces 1. Right to self-help
(2) Jus Fruendi: Right to receive fruits (Natural, 2. Right to Enclose of Fence
Industrial and Civil)
3. Right to Receive Just Compensation (in case
(3) Jus Accessiones: Right to the accessories
of expropriation by Government)
(4) Jus Abutendi: Right to consume a thing by use
(5) Jus Disponendi: Right to alienate, encumber, 4. Right to Accession
transform or even destroy the thing owned 5. Right to Space and Subsoil
(6) Jus Possidendi: Right to possess the property 6. Right to Hidden Treasure
(7) Jus Vindicandi: Right to recover possession of 7. Right to Recover Possession
property based on a claim of ownership

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Sample Board Exam Question


Right to Self-help
A principle which authorizes an owner or lawful
Can a land owner eject a squatter on his
possessor of a property to use reasonable counter- property?
force to prevent or stop another person from taking a. Yes, by principle of self-help
the former’s property.
b. No, he must call the police to eject the
squatters
The force must be reasonably necessary to repel the
unlawful physical invasion or usurpation of property. c. Yes, he is the real owner and it his right to
(physical invasion must not have been succeeded yet eject them by himself
otherwise the owner can no longer use force but d. No, there must be a court order first
must file an action to recover with the court)

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Exception to right to self-help: Act in Right to Enclose or Fence


State of Necessity
-Every owner may enclose or fence his land or
The owner of a thing has no right to prohibit the tenements by means of walls, ditches, live or dead
interference of another with the same, if the hedges or by any other means without detriment
interference is necessary to avert in imminent to servitudes (easement) constituted thereon
danger. The owner may demand from the
person benefited, indemnity for the damage to Ex. The owner of lower lands cannot erect works
him. that will impede or prevent such an easement upon
his estate for the benefit of higher lands neither can
the latter do anything to increase or extend the
easement.

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Easement/ Servitude Classification of Servitudes


An encumbrance imposed upon an immovable for the
benefit of another immovable belonging to a different As to its exercise
owner
1. Continuous: Use may be incessant,
Dominant Estate – the immovable in favor of which the without the intervention of any man
easement is established
Servient Estate – the immovable which is subject to the
easement
2. Discontinuous: Used at intervals, and
Ex. Aqueduct, planting of trees, light and view, right of way, dependent upon the acts of man.
passage of water from upper to lower tenements, drainage
of buildings, lateral and subjacent support

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Classification of Servitudes Modes of Acquiring Easements


As indication of its existence A. By Title – juridical act which gives rise to the
servitude (e.g. law, donations, contracts or wills)
1. Apparent: Made known and continually
kept in view by external signs that reveal a. Deed of recognition by owner of servient estate: By
the use and enjoyment of the same affidavit or a formal deed acknowledging the
servitude
b. By final judgment: Owner of the dominant estate
2. Non-apparent: No external indication of must file a case in Court to have the easement
their existence declared by proving its existence through other
evidence

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Modes of Acquiring Easements Sample Board Exam Question


B. By Prescription Q: Dodong was the owner of an agricultural land with no access to
1. Easement must be continuous and apparent. a public road. He had been passing through the land of Tetay with
consent for over 20 years. Then, Dodong subdivided his property
2. Easement must have existed for 10 years. into 10 residential lots and sold them to different persons. Tetay
blocked the pathway and refused to let the buyers pass through his
land. Did Dodong acquire an easement of right of way?
3. NO NEED for good faith or just title.
A. Yes, he acquired it by prescription for more than 10 years
Note: Right of way, cannot be acquired by prescription. B. No, easement can never be acquired.
There must be a court order or acknowledgement from the C. Yes, it is just a mere misunderstanding between Dodong and
owner of the servient estate.
Tetay and right of way should not be affected.
D. No, Dodong must have a title of it.

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Q: In the previous question, what can


Right to Receive Just Compensation (in
the lot buyers do?
expropriation by the government)
A. It depends on Tetay if he will allow the buyers to
have the right of way. Eminent Domain: Property taken for public
B. Buyers cannot demand the right of way because use/purpose, but subject to due process and
Dodong is at fault.
payment of just compensation (Market Value +
C. Buyers may demand an easement of a right of
consequential damages)
way provided proper indemnity is paid and least
prejudicial to Tetay.
D. They will be landlocked because they did inquire
prior to sale if there is access to public road.

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Right to Accession CLASSIFICATION OF ACCESSION

the right by virtue of which the owner of a thing (1) Accession Discreta (fruits) – the right
becomes the owner of everything which is pertaining to the owner of a thing over
produced thereby, or which is incorporated or everything produced thereby. Right of
attached thereto, either naturally or artificially. ownership to the fruits. (natural, industrial
and civil fruit)

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CLASSIFICATION OF ACCESSION Sample Board Exam Question


(2) Accession Continua (accretion) – the right pertaining to the owner
Andres is a riparian owner of a parcel of registered land.
of a thing over everything that is incorporated or attached thereto
His land, however, has gradually diminished in area due
either naturally or artificially or by external forces.
to the current of the river, while the registered land of
Examples: Mario on the opposite bank has gradually increased in
(1) Alluvion- Soil is gradually deposited on banks adjoining the river. area by 200-square meters. Who has the better right over
Effect: Land automatically owned by the new riparian owner to the 200-square meter area that has been added to
offset the owner’s loss from possible erosion due to the current of Mario's registered land?
the river A. Andres
(2) Avulsion- A known portion of land is segregated from one estate by B. Mario
the forceful current of a river, creek or torrent and transferred to C. Both Andres and Mario, in equal sharing.
another. D. No one. It is owned by the State.
Effect: The ownership of the detached property is retained by the
owner subject to removal within 2 years from the detachment

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Sample Board Exam Question


Right to hidden treasure
Pepe learning that Japanese soldiers may have
buried gold at the vacant lot belonging to spouses
Hidden treasure –any hidden and unknown deposit Cruz, excavated the lot where he succeeded in
of money jewels or other precious objects, the
lawful ownership of which does not appear. unearthing gold and precious stones. How will the
Belongs to the owner of the land treasures found by Pepe be divided?

Exception: Finder by chance who is not a trespasser


gets ½ of the value of the hidden treasure but if a a. 100% to Pepe as finder
trespasser he gets nothing or right of the state to b. 50% to Pepe and 50% to the spouses Cruz
acquire things of interest to science or the arts subject
to just compensation for the owner c. 50% to Pepe and 50% to the state
d. NOTA

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Right to Recover: Actions for recovery Actions for recovery of possession of


of possession of immovable property immovable property
1. Ejectment Suits (2) Accion Publiciana: Recovery of a better right to
(a) Forcible Entry: Lawful possessor deprived through possess
FISTS: -Judgment as to who has the better right of
-FISTS (Force, Intimidation, Strategy, Threats, Stealth) possession
-Must be filed 1 year from dispossession (force, intimidation, -Also, actions for ejectment not filed within 1 year
threats) or from knowledge of dispossession (strategy, stealth)
must be filed as accion publiciana
-Must be filed within 10 years
(b) Unlawful Detainer: Possessor refused to vacate upon
demand by owner (3) Accion Reivindicatoria: Recovery of ownership of
-Legal possession (by permission/ tolerance) becomes unlawful real property
upon failure to vacate -Including but not limited to possession
-Must be filed 1 year from last notice to vacate -Must be filed within 30 years

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Actions for recovery of possession of Action for reconveyance of real


movable property properties
Replevin • Action based on fraud – 4 years

(1) for manual delivery of property • Action to quiet title where plaintiff is in possession
(imprescriptible)

• Action to foreclose mortgage: prescribes after 10 years from the time


the obligation secured by the mortgage becomes due and
demandable

• All other actions must be filed within 5 years

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Nuisance Co-ownership
A nuisance is any act, omission, establishment,
business, condition of property, or anything else The form of ownership when the ownership of
which injures or endangers the health or safety of an undivided thing or right belongs to different
others; annoys or offends the senses; shocks, defies persons.
or disregards decency or morality; obstructs or
interferes with the free passage of any public REQUISITES:
highway or street, or any body of water; hinders or (1) Plurality of owners
impairs the use of property.
(2) Object must be an undivided thing or right
i.e. A pumping station in a community that produces (3) Each co-owner’s right must be limited only to
unnecessary noise, a patis factory near residential his ideal or abstract share of the whole but not
area, SPA that offers extra service physically identified

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Co-ownership Duties of a co-owner


Important points: • Duty to obtain consent of all if thing is to be altered
even if beneficial; resort to court if non-consent is
• A co-owner can sell, mortagage or encumber manifestly prejudicial
his ideal share (other co-owners may exercise • Duty to obtain consent of majority with regards to
administration and better enjoyment of the thing;
right of legal redemption within 30 days from controlling interest; court intervention if prejudicial
notification of the sale) • No prescription to run in favor of a co-owner as long as
he recognizes co-ownership.
• Partition: No co-owner shall be obliged to
• Co-owners cannot ask for physical division if it would
remain the co-ownership. Partition or division render thing unserviceable; but can terminate co-
can be done judicially or extra-judicial. ownership

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Sample Board Exam Question Usufruct


Can any of the heirs sell his/her Usufruct gives a right to enjoy the property of
hereditary rights? another with the obligation of preserving its
form and substance, unless the title constituting
A. No, he/ she can’t. it or the law otherwise provides
B. It is against the law.
C. They should remain as co-owners. -right to use (‘Usu’) and fruits (‘fruct’) only
D. Yes, he/she can.

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DONATION Sample Board Exam Question

The Roman Catholic Church accepted a donation of a real


Donation is an act of liberality whereby a property located in Lipa City. A deed of donation was executed,
person disposes gratuitously of a thing or right signed by the donor, Don Mariano, and the donee, the Church,
in favor of another, who accepts it. It is a mode as represented by Fr. Damian. Before the deed could be
notarized, Don Mariano died. Is the donation valid?
of acquiring properties.
A. Yes, because the donor donated it freely.
Note: In donating an immovable property, B. No, because the donation is void.
donation and acceptance must be done in a C. Yes, because the donee accepted it.
public instrument, otherwise, donation is void. D. No, because the terms are not clear.

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Land Owner vs Builder/Planter/Sower


Answer: Land Owner Builder/Planter/Sower (BPS)
Good faith Good faith
-right to acquire improvements and pay -right of retention until necessary and
B. No, the donation is void. The donation of an indemnity to BPS useful expenses are paid by the land
-has option to: sell the land to Builder or owner
immovable property must be in a public Planter if the value of the land is
instrument in order for it to be valid. considerably more or rent to sower
Good faith Bad faith
-right to collect damages in any case and -recover necessary expenses for
In this case, the donor died even before the has option to: acquire improvements preservation of land from land owner
without paying for indemnity, demolition unless land owner sells the land
notarization of the deed of donation. Hence, it or restoration, sell the land to Builder or
does not satisfy the requirement of being in a Planter if the value of the land is
public instrument for the donation to be valid. considerably more or rent to sower
Bad faith Good faith
-acquire improvement after paying -may remove improvements, be
indemnity and damages to BPS unless indemnified for damages in any event
latter decides to remove

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Sample Board Exam Question


Sample Board Exam Question

Mr. C is a title holder of a piece of land where Mr. D Believing that a piece of land belonged to him, Totoy
erected his two story residential house. If there was erected thereon a building. The owner of the land
bad faith on the part of Mr. D, can the land owner was aware of the construction being made by Totoy,
demand the demolition of his erected house? but did not do anything to stop it. Which of the
following statement is the most accurate?
A. Mr. D is protected by the Urban Poor Law.
B. No, he can’t. A. Totoy is in bad faith.
C. Yes, he can. B. Owner is in good faith.
D. Mr. D can demand reimbursement of his C. Owner is in bad faith.
expenses. D. Both Totoy and owner is in good faith.

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