Concept of Property

Property Definition:
“Refers to anything that can be owned and controlled by legal rights. It includes both tangible
objects (e.g., lands, buildings) and intangible things (e.g., intellectual property)”

- Example: A parcel of land is considered property because it is a physical object that can
be owned and transferred.

Concept of Property
- Art. 414 All things which are or may be the object of appropriation are considered either
(1) immovable or real property; or (2) movable or personal property. It follows that those
which cannot be appropriated are not considered property. [i.e. stars, moon, air, planets,
etc.]

Classification of Property
● Real (immovable property)
- Items that are permanently attached to the land, such, buildings, trees, and
infrastructure
● Personal (movable property)
- All other property that can be transported, such as furniture and vehicles
● Public Property
- Owned by the state for public use (e.g. parks, roads, etc)
● Private Property
- Owned by individuals or corporations
● Common Ownership
- Property owned by a group, like condominium, common areas
● Individual Ownership
- Owned solely by one person or entity

Legal Framework
“Property law establishes the rights and duties of owners, protecting their interest and providing
legal remedies”

Why is there importance to classify?

“Because different provisions of the law govern the acquisition, possession, disposition, loss, and
registration of immovable and movable objects”

Example:
a. Donations of real property (like land) must be in a public instrument, otherwise the
alienation will be null and void even as between the parties. On the other hand, the
donation of a movable (like a ring valued at say P5,000.00), needs only to be in a private
instrument. (see Art. 748, NCC).
b. The ownership over a real property may be acquired by prescription (see Art. 1137) in 30
years (bad faith); whereas, acquisition of personal property in bad faith needs only 8
years (see Art. 1132, NCC).
 Immovable Property

Art. 415: The following are Immovable Property:

(1) Land, buildings, roads and constructions of all kinds adhered to the soil;
(2) Trees, plants, and growing fruits, while they are attached to the land or form an integral
part of an Immovable
(3) Everything attached to an immovable in a fixed manner,in such a way that it cannot be
separated therefrom without breaking the material or deterioration of the object;
(4) Statuses, reliefs, paintings or other objects for use or ornamentation, placed in building
or on lands by the owner of the immovable in such a manner that it reveals the intention
to attach them permanently to the tenements;
(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; animals in these
places are included;
(7) Fertilizer actually used on a piece of land;
(8) Mines, quarries, and slag dumps, while matter thereof form 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 legal real rights over immovable
property.

Classes of Immovable:

Immovables by nature:
- Those which cannot be moved from place to place because of their nature, such as land
(Par 1, Art. 415), mines, quarries, slag dumps (par 8, Art 415);
- Paragraph 1, Article 415:
- Land, buildings, roads and constructions of all kinds adhered to the soil.
- Paragraph 8, Article 415:
- Mines, quarries, and slag dumps while the matter therefi forms part of the
bed of and water either running or stagnant.

Immovables by Incorporation:
- Those which are essentially movables, but are attached to an immovable in such manner
as to become integral part thereof [those mentioned in par 1, 2, 3, 4 & 6, Art. 415, except
land, buildings and roads]];
- (1) Land, buildings, roads and constructions of all kinds adhered to the soil;
- (2) Trees, plants, and growing fruits, while they are attached to the land or form
an integral part of an immovable;
- (3) Everything attached to an immovable in a fixed manner, in such a way that it
cannot be separated therefrom without breaking the material or deterioration of
the object;
- (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;
 - (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;

Immovable by Destination:
- Those which are essentially movables, but by the purpose for which they have been
placed in an immovable, partake the nature of the latter because of the added utility
derived therefrom, such as those mentioned in pars 4, 6, 7, and 9 of Art. 415
- 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;
- (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;
- (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;

Immovables by Analogy or by Law:

- Those mentioned in Par 10, Art. 415; right of usufruct; easement of servitudes
- (10) Contracts for public works, and servitudes and other real rights over
immovable property.

Movable Property

Art. 416. The following thing are deemed to be personal property:

1. Those movable susceptible of appropriation which are not included in the preceding
article. [Example: cell phones; money; ring; cars]
2. Real property which by any means special provision of law is considered as personality.
[Example: Growing crops for the purpose of the Chattel Mortgage Law; Machinery
placed by tenement by tenant, who did not act as the agent of the tenement owner.]
3. Forces of nature which are brought under control by science. [example: gas; light;
nitrogen]
4. In General, all things which can be transported from place to place without impairment
of the real property to which they are fixed. [Examples: Machinery not attached to land
or needed for carrying on of an industry conducted therein ]

Test of Immovability
1. If the property is capable of being carried from place to place (test of description)
2. If such change in location can be made without injuring the real property to which it may
in the meantime be attached (test by description)
3. And if finally, the object is not one of those enumerated or included in Art. 415 (test by
exclusion)

Then the inevitable conclusion is that the property is personal

Test by Exclusion is superior to the test by Description
Other Personal Property
1. Obligations and actions which have for their object movables or demandable sums.
2. Shares of stock of agricultural, commercial and industrial entities, although they may
have real estate.
3. Art. 418. Movable property is either consumable or non consumable. To the first class
belong those movables which cannot be used in a manner appropriate to their nature
without their being consumed; to the second class belong all the others.

Ownership

Ownership Defined:
“It refers to the legal right of a person to possess, enjoy, dispose of, and exclude others from a
thing or property, whether it is movable or immovable.”

Ownership in General
● Art. 427. Ownership may be exercise over things and rights
● 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 the right of action against the holder and possessor of the thing in
order to recover it.

Limitation of Ownership
(1) Imposed by law :
○ Easement of right of way; party wall; drainage.
(2) Imposed by state :
○ Police power;
○ Power of taxation;
○ Power of eminent domain.
(3) Imposed by owner :
○ In cases of lease, the owner cannot in the meantime physically occupy the
property; (also pledges).
(4)Imposed by grantor :
○ The donor may prohibit the donee from partitioning the property for a period not
exceeding 20 years

Modes of Acquiring Ownership:

A. Original Modes
a. Occupation
➢ Acquiring ownership of property that has no owner, such as hunting or
gathering fruits from unowned land.
b. Intellectual Creation
➢ Ownership of intellectual property, such as inventions or literary works,
created by an individual.
B. Derivative Modes
a. Succession
➢ Transfer of property upon the death of the owner, as provided in a will or
by law (intestate succession).
b. Donation
➢ The act of giving property voluntarily without receiving anything in return
 c. Prescription
➢ Acquiring ownership through continuous and uninterrupted possession
over a long period of time
d. Law, Contract, or Succession:
➢ Property can be transferred or acquired through legal instruments like
contract, or through inheritance.

Rights of Ownership:
● Right to use (Jus Utendi):
○ The owner has the right to utilize their property in any legal manner (e.g., living
in a house)
● Right to Enjoy (Jus Fruendi):
○ The owner can derive benefits from the property, such as collecting rent or
harvesting crops.
● Right to Dispose (Jus Disponendi):
○ The owner can sell, donate, or bequeath their property.
● Right to Exclude Others (Jus Excludendi Alios)
○ The owner can prevent others from using or interfering with their property.

Types of Ownership:

1. Full Ownership:
➢ Involves all rights (possessions, use, enjoyment, and disposal) vested in the
owner.
⇀ Ex. A person who owns a piece of land outright without any restrictions.
2. Naked Ownership:
➢ The right of ownership minus the right to enjoy or use the property. This often
occurs when another party holds the usufruct.
⇀ Ex. A parent transfers ownership of land to their child but retains the
right to live on it during their lifetime.
3. Co-ownership:
➢ When two or more persons own a property together. Each co-owner has an
undivided share in the property, which they can exercise proportionally.
⇀ Ex. Siblings inherit a family house and become co-owners.]

Accession

Definition:
● Is a legal principle under article 440 to 450 of the civil code of the Philippines, which
governs how property owners acquire rights over something produced, attached, or
incorporated into their property, whether naturally or artificially.
● The right of a property owner to everything which is produced or which is incorporated
attached thereto
● To the owner of the principal belongs the accessory

Right of Accession (Art. 440)

- The ownership of property gives the right by accession to everything which is produced
thereby, or which is incorporated or attached thereto, either naturally or artificially.
Types of Accession:
1. Accession Discrete (Ownership of fruits if the property) (Art. 441)
- deals with the right of the owner to the fruits or products of their property
(Art., 442)
a. Natural fruits:
⇀ These are products of the soil, plants, animals, or any other natural
growth from the land
b. Industrial Fruits:
⇀ These are produced through human intervention, such as crops that are
the result of cultivation
c. Civil Fruits
⇀ These are benefits from contract, like rentals, or interest from loans
2. Accession Continua (Art. 443)
- refers to ownership over any improvement, extension, or addition to the property,
wither or by human intervention: it includes
a. Accession Industrial (man-made improvements):
⇀ When something is attached or incorporated in to a property by human
work
b. Accession Natural (natural improvements):
⇀ When natural forces, like the flow of a river, add or modify the property.

Specific forms of Accession Continua:

● Accession to immovable property (Land and Buildings):

○ Building on one’s own land with one’s materials:
■ The owner of the land becomes the owner of any building constructed on
it, regardless of who provides the materials.
○ Building on another’s land with consent
■ If a person builds on another’s land with permission, ownership of the
improvement generally belongs to the landowner, but the builder may be
entitled to compensation.
○ Building without consent (good or bad faith)
■ If someone builds on another’s land without consent, ownership depends
on whether the builder acted on good or bad faith, the builder may be
compensated; in bad faith the builder could lose the materials used.

Laws Governing Accession of Movable and Immovable Property

General Rule:

Art., 445
● Anything incorporated ar attached to the land, whether naturally or artificially, belongs
to the owner of the land
● Whatever is built, planted or sown on the land of another and the improvement or
repairs made thereon, belong to the owner of the land, subject to the provisions of the
following articles.
Art. 446 - 456
● These articles address scenarios such as planting, building, or sowing on land belonging
to another person, with or without permission, and how the owner and builder are
compensated or reimbursed based on the good or bad faith of the parties involved.

Key Concepts:
● Builder in good faith: The person constructing on another’s land does so under the
belief that they own the land.
● Landowner in good faith: The owner of the land is unaware that someone else is
building on their property.

Art. 448
Building on Land of Another:
● If a person builds or plants on another person’s land, and both are in good faith, the
landowner may choose to appropriate the improvement after paying the value or
demand removal of the structure, in which case the builder may be entitled to
compensation.

Art. 466: Adjudication or Conjunction

Adjunction: Occurs when two movable objects owned by different persons are joined in such a
way that they form a single item
- Ownership Rule: The ownership of the resulting item generally follows who owns the
principal object (the more valuable or main component), unless it is impossible to
determine which is principal, in which case the ownership may be shared.

Art. 467 Commixtion or Confusion

Commixtion: When solid objects owned by different persons are mixed together in such a way
they cannot be separated.
Confusion: Applies to the mixing of liquids owned by different persons.
- Ownership Rules: If the commixition or confusion occurs by mutual consent, the mixed
objects are co-owned proportionally by each owner. If no consent was given, and
separation is impossible, the person responsible for the mixture may owe damages.

Art. 468: Specification

Specification: Occurs when a person, using materials belonging to someone else, transforms the
materials into a new product.
- Ownership Rules: Ownership of the new product depends on who owns the materials
and who performed the labor.
- If the transformation substantially changes the original material (e.g., be considered the
owner, but the material owner is entitled to compensation.
- Compensation: The owner of the raw materials is entitled to recover the value of the
materials or to be compensated for the loss.

Accretion

Accretion
 - One form of Natural Accession

Accession
- Is defined as the right of the property owner to everything thereby or which is
incorporated or attached thereto either artificially or naturally.

Natural Accession:

Accretion (Art 457, NCC)

Article 457 - to the owner of the land adjoining the banks of the river belongs the accretion
which they gradually received from the effects of the current of the water.

Accretion Defined:
● Accretion is the process whereby the soil is deposited or added in any waterways. It is a
broader term because unlike alluvium it also applies to other waterways other than the
river. It is possible that a soil deposit be made also on the banks of the lakes. In this
case, although it is not an alluvium, the rule of ownership is the same.
● Article 84 of the Spanish law of Water shall apply, which states: “Accretion deposited
gradually upon lands contiguous to creeks, streams, rivers, lakes by accessions or
sediments from the waters thereof, belong to the owners of such lands.

Key Features of Accretion:

1. Natural and Gradual process:

➢ Accretion must result from the natural and slow deposit of soil or sediment
(alluvium) by the action of water over time
2. Ownership:
➢ The owner of the land adjacent to the river or shore where the accretion takes
place automatically acquires ownership of the additional land formed through
accretion
3. No Human Intervention:
➢ Accretion must occur naturally without any human intervention or artificial
means.
4. Riparian Owner
➢ Accretion applies to riparian owners - those whose property is directly adjacent
to a body of water such as rivers, lakes, or sea. The riparian owner gains
ownership of the additional land that forms along their property.
5. Exclusion of Navigable Rivers:
➢ If the accretion occurs along navigable rivers, the additional land may belong to
the public domain.

Alluvium Defined:
Is the soil deposited or added to the lands adjoining the banks of rivers and gradually received as
an effect of the current of the waters. By law, the accretion is owned by the owner of the estate
fronting the river bank.

Essential Requisites of Alluvium:

1. The deposit should be gradual and imperceptible
 2. Cause is the current of the river (not due to work expressly designed for the purpose).
[Alluvium caused by artificial means is prohibited and penalized, unless made with
authorization of the government].
3. The current must be that of the river
a. If the current be that of a lake, Spanish law of Water must apply. In this case,
although it is an accretion it is not called alluvium, although the rule as to
ownership is the same.
b. is , the sea, ownership belongs to the public domain (State), and is not available
for private ownership until formally declared by the government to be no longer
needed for public use.
4. The river must continue to exist
5. The increase must be comparatively little, and not, for example, such as would increase
the area of the riparian land by over 150%.

It is not necessary however:

1. That the riparian owner should make express act of possession, the accession being
automatically his the moment the soil deposited can be seen
2. That the riparian owner has completely paid for the value of the riparian estate, in case
of a purchase, as long as he already has the Equitable if Beneficial Title.

Does Accretion automatically become registered land because the land which received it is
covered by a title thereby making the property imprescriptible?

No. just as an unregistered land purchased by the registered owner of the adjoining land does
not by extension, become ipso facto registered land.Ownerhsip of a piece of land is one thing
and registration under the Torrens System of that ownership is quite another. Ownership over
the accretion received by the land adjoining the river is governed by the Civil Code.
imprescriptibility of registered land is provided in the registration law

Registration under the Land Registration and Cadastral Acts does not vest or give title to the
land but merely confirms and thereafter protects the title already possessed by the owner,
making it imprescriptible by occupation of third parties. But to obtain this protection, the land
must be placed under the operation of the registration laws wherein certain judicial procedures
have been provided. The fact remains, however, that petitioner never sought registration of said
alluvial property (which was formed sometime after petitioner’s property covered by OCT No.
2982 was registered on June 9, 1934) up to the time they instituted the present action in the
CFI.

The increment therefore never became registered property and hence is not entitled or subject to
the protection of imprescriptibility enjoyed by registered property under the Torrens System.
Consequently it was subject to acquisition thru prescription by third persons. (Ignacio Grande et
al vs. C.A. et al, June 30, 1962)

Limitations on Accretion:

Accretion must be gradual: Rapid or sudden deposit of large amounts of soil (such as from a
landslide) does not count as accretion. This would be classified under avulsion, which follows a
different legal principle.
Public Land Exception: Lands formed on shores of seas or navigable waters that are considered
public domain cannot be acquired by private owners through accretion.
Alluvial Deposits Only: The additional land must be formed by the deposit of alluvium – soil or
sediment transported and deposited by natural forces like water.