Lecture
No. 8. Part II
Civil Law Review
Lecture Series
Atty. Eduardo T. Reyes, III
(For
Fourth Year Section-A and Property Second Year,
University
of San Agustin School of Law, General Luna Street,
Iloilo City, School Year
2016-2017 Ist Semester)
Registered Lands
Query
1. The guarantee of the torrens law is that a property which is covered by a
torrens title could not be subject of prescription. Is there a chance that a
registered owner of property who has failed to recover possession of his
registered property, be permanently barred by prescription or laches?
Doctrinal-ruling: “As registered owners of the
lots in question, the private respondents have a right to eject any person
illegally occupying their property. This right is imprescriptible. Even
if it be supposed that they were aware of the petitioners occupation of the
property, and regardless of the length of that possession, the lawful owners
have a right to demand the return of their property at any time as long as the
possession was unauthorized or merely tolerated,
if at all. This right is never
barred by laches”. (Citations omitted)[1]
Contra-Ruling: “Likewise,
it must be stressed that unlike prescription, laches is not concerned merely
with the fact of delay, but even more with the effect of unreasonable
delay. In Vda. de Cabrera v. CA, we explained:
In our jurisdiction, it is an
enshrined rule that even a registered owner of property may be barred from
recovering possession of property by virtue of laches. Under the Land Registration Act
(now the Property Registration Decree), no title to registered land in
derogation to that of the registered owner shall be acquired by prescription or
adverse possession. The same is not true with regard to laches. As we have
stated earlier in Mejia de Lucas vs. Gamponia, while the defendant
may not be considered as having acquired title by virtue of his and his
predecessors long continued possession (37 years) the original owners right to
recover x x x the possession of the property and the title thereto from the
defendant has, by the latters long period of possession and by patentees
inaction and neglect, been converted into a stale demand.
The contention of petitioner that her right
to recover is imprescriptible because the property was registered under
the Torrens system also fails to convince us. It was the
finding of the trial court that the property was not yet covered by a free
patent on January 4, 1966, when Captain Villalba acquired possession
thereof. Indeed, the evidence shows that as of that date, the documents
relating to the property were still in the name of Pilar Castrence, from whom
petitioner purchased the property on April 27, 1966; that she applied for
a free patent therefor between January 4 and April 27, 1966; and that the
original certificate of title over the lot was issued to her under Free Patent
No. (x-1) 3732 only on August 16, 1974.
It is apparent, then, that petitioner sold
the house and lot to respondent on January 4, 1966, before she had even
acquired the title to convey it. Moreover, she applied for a free patent
after she lost, by operation of law, the title she had belatedly acquired
from Castrence. These circumstances raise serious questions over the formers
good faith in delaying the assertion of her rights to the property. They
bar her from seeking relief under the principle that one who comes to court
must come with clean hands.” [2]
·
It is no longer good law that all cases
for recovery of possession or accion publiciana lie with the RTC, regardless of
the value of the property.[3]
Article
434. In an action to
recover, the property must be identified, and the plaintiff must rely on the
strength of his title and not on the weakness of the defendant's claim. (n)
Article
435. No person shall be
deprived of his property except by competent authority and for public use and
always upon payment of just compensation.
Should this requirement be not first complied with,
the courts shall protect and, in a proper case, restore the owner in his
possession. (349a)
Article
436. When any property
is condemned or seized by competent authority in the interest of health, safety
or security, the owner thereof shall not be entitled to compensation, unless he
can show that such condemnation or seizure is unjustified. (n)
ARTICLE 437. The owner of a parcel of land is the
owner of its surface and of everything under it, and he can construct thereon
any works or make any plantations and excavations which he may deem proper,
without detriment to servitudes and subject to special laws and ordinances. He
cannot complain of the reasonable requirements of aerial navigation. (350a)
Article
438. Hidden treasure
belongs to the owner of the land, building, or other property on which it is
found.
Nevertheless, when the discovery is made on the
property of another, or of the State or any of its subdivisions, and by chance,
one-half thereof shall be allowed to the finder. If the finder is a trespasser,
he shall not be entitled to any share of the treasure.
If the things found be of interest to science or
the arts, the State may acquire them at their just price, which shall be
divided in conformity with the rule stated. (351a)
Article 439. By treasure is understood, for legal
purposes, any hidden and unknown deposit of money, jewelry, or other precious objects,
the lawful ownership of which does not appear. (35
Comments:
·
If A by chance unearths a diamond in its natural
state, how would the same be divided?
CHAPTER 2
Right of Accession
GENERAL PROVISIONS
Right of Accession
GENERAL PROVISIONS
Article
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.
(353)
SECTION
1
Right of Accession with Respect to What is Produced by Property
Right of Accession with Respect to What is Produced by Property
Article
441. To the owner belongs:
(1) The natural fruits;
(2) The industrial fruits;
(3) The civil fruits. (354)
Article
442. Natural fruits are
the spontaneous products of the soil, and the young and other products of
animals.
Industrial fruits are those produced by lands of
any kind through cultivation or labor.
Civil fruits are the rents of buildings, the price
of leases of lands and other property and the amount of perpetual or life
annuities or other similar income. (355a)
Article
443. He who receives
the fruits has the obligation to pay the expenses made by a third person in
their production, gathering, and preservation. (356)
-
Compare with Art 449 which applies only if the
crops have not yet been gathered.
Article
444. Only such as are
manifest or born are considered as natural or industrial fruits.
With respect to animals, it is sufficient that they
are in the womb of the mother, although unborn. (357)
SECTION
2
Right of Accession with Respect to Immovable Property
Right of Accession with Respect to Immovable Property
Article 445. Whatever is built, 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)
Comment:
Basic Principles of Accession Continua (Accession
Industrial)
a)
To the owner of the principal must belong also the accessions, in
accordance with the principle of “the accessory follows the principal”
b)
The union or incorporation must, with certain exceptions, be effected in such
a manner that to separate the principal from the accessory would result in substantial injury to either
c)
He who is in good faith may be held responsible but
he should not be penalized
d)
He who is in bad
faith may be penalized
e)
No one should enrich himself unjustly at the expense of another
f)
Bad faith of one party neutralizes the bad faith of
the other so both should be considered in good faith.
Article
446. All works, sowing,
and planting are presumed made by the owner and at his expense, unless the
contrary is proved. (359)
Article
447. The owner of the
land who makes thereon, personally or through another, plantings, constructions
or works with the materials of another, shall pay their value; and, if he acted
in bad faith, he shall also be obliged to the reparation of damages. The owner
of the materials shall have the right to remove them only in case he can do so
without injury to the work constructed, or without the plantings, constructions
or works being destroyed. However, if the landowner acted in bad faith, the
owner of the materials may remove them in any event, with a right to be
indemnified for damages. (360a)
Article 448. The owner of the land on which anything
has been built, sown or planted in good faith, shall have the right to
appropriate as his own the works, sowing or planting, after payment of the
indemnity provided for in articles 546 and 548, or to oblige the one who built
or planted to pay the price of the land, and the one who sowed, the proper
rent. However, the builder or planter cannot be obliged to buy the land if its
value is considerably more than that of the building or trees. In such case, he
shall pay reasonable rent, if the owner of the land does not choose to
appropriate the building or trees after proper indemnity. The parties shall
agree upon the terms of the lease and in case of disagreement, the court shall
fix the terms thereof. (361a)
Comments:
1)
Conflicts of rights rule. Applies only when there
is a conflict
2)
“considerably more”
3)
Builder and Planter v. Sower
4)
Right of Retention
5)
Choice Irrevocable
6)
No right of removal or demolition UNLESS after
selected a compulsory sale, the builder fails to pay for the land
7)
Status quo while Landowner cannot yet make a choice
8)
Builder in Bad faith not entitled to any form of
reimbursement at all?
9)
See Crispin Aquino v. Sps. Eusebio Aguilar[4] : “Pursuant to Art. 452 NCC, BBF is entitled
to recoup necessary expenses for preservation of the land”.
10) Good Faith involving Registered Lands:
·
Torrens Title serves as constructive notice to
whole world of the ownership of the registered owner of said property
·
Exception: Co
Tao v. Chico (L-499167, April 30, 1968)[5]-
No one, not even a surveyor, can determine the precise location of his land by
simply examining his title.
Article
449. He who builds,
plants or sows in bad faith on the land of another, loses what is built,
planted or sown without right to indemnity. (362)
Article
450. The owner of the
land on which anything has been built, planted or sown in bad faith may demand
the demolition of the work, or that the planting or sowing be removed, in order
to replace things in their former condition at the expense of the person who
built, planted or sowed; or he may compel the builder or planter to pay the
price of the land, and the sower the proper rent. (363a)
Article
451. In the cases of
the two preceding articles, the landowner is entitled to damages from the
builder, planter or sower. (n)
Article
452. The builder,
planter or sower in bad faith is entitled to reimbursement for the necessary
expenses of preservation of the land. (n)
Article
453. If there was bad
faith, not only on the part of the person who built, planted or sowed on the
land of another, but also on the part of the owner of such land, the rights of
one and the other shall be the same as though both had acted in good faith.
It is understood that there is bad faith on the
part of the landowner whenever the act was done with his knowledge and without
opposition on his part. (364a)
Article
454. When the landowner
acted in bad faith and the builder, planter or sower proceeded in good faith,
the provisions of article 447 shall apply. (n)
Article
455. If the materials,
plants or seeds belong to a third person who has not acted in bad faith, the
owner of the land shall answer subsidiarily for their value and only in the
event that the one who made use of them has no property with which to pay.
This provision shall not apply if the owner makes
use of the right granted by article 450. If the owner of the materials, plants
or seeds has been paid by the builder, planter or sower, the latter may demand
from the landowner the value of the materials and labor. (365a)
Article
456. In the cases
regulated in the preceding articles, good faith does not necessarily exclude
negligence, which gives right to damages under article 2176. (n)
Article 457. To the owners of lands adjoining the
banks of rivers belong the accretion which they gradually receive from the
effects of the current of the waters. (336)
Comment:
·
Loss by Alluvium Not Affected by Registration Under
Land Registration Act
Article
458. The owners of
estates adjoining ponds or lagoons do not acquire the land left dry by the
natural decrease of the waters, or lose that inundated by them in extraordinary
floods. (367)
Article
459. Whenever the
current of a river, creek or torrent segregates from an estate on its bank a
known portion of land and transfers it to another estate, the owner of the land
to which the segregated portion belonged retains the ownership of it, provided
that he removes the same within two years. (368a)
Article
460. Trees uprooted and
carried away by the current of the waters belong to the owner of the land upon
which they may be cast, if the owners do not claim them within six months. If
such owners claim them, they shall pay the expenses incurred in gathering them
or putting them in a safe place. (369a)
Article 461. River beds which are abandoned through
the natural change in the course of the waters ipso facto belong to the owners
whose lands are occupied by the new course in proportion to the area lost.
However, the owners of the lands adjoining the old bed shall have the right to
acquire the same by paying the value thereof, which value shall not exceed the
value of the area occupied by the new bed. (370a)
Comments:
·
What if river totally dries up? See Republic
v. Santos III[6]
·
Requisites: 1. Change must be sudden; 2.
Change must be more or less permanent; 3. Change of course must be due to
natural causes; there must be abandonment by government; 4. River must continue
to exist
·
Abandonment by Government
Article
462. Whenever a river,
changing its course by natural causes, opens a new bed through a private
estate, this bed shall become of public dominion. (372a)
Article
463. Whenever the
current of a river divides itself into branches, leaving a piece of land or
part thereof isolated, the owner of the land retains his ownership. He also
retains it if a portion of land is separated from the estate by the current.
(374)
Article
464. Islands which may
be formed on the seas within the jurisdiction of the Philippines, on lakes, and
on navigable or floatable rivers belong to the State. (371a)
Article
465. Islands which
through successive accumulation of alluvial deposits are formed in
non-navigable and non-floatable rivers, belong to the owners of the margins or
banks nearest to each of them, or to the owners of both margins if the island
is in the middle of the river, in which case it shall be divided longitudinally
in halves. If a single island thus formed be more distant from one margin than
from the other, the owner of the nearer margin shall be the sole owner thereof.
(373a)
SECTION
3
Right of Accession with Respect to Movable Property
Right of Accession with Respect to Movable Property
Article
466. Whenever two
movable things belonging to different owners are, without bad faith, united in
such a way that they form a single object, the owner of the principal thing
acquires the accessory, indemnifying the former owner thereof for its value.
(375)
Article
467. The principal
thing, as between two things incorporated, is deemed to be that to which the
other has been united as an ornament, or for its use or perfection. (376)
Article
468. If it cannot be
determined by the rule given in the preceding article which of the two things
incorporated is the principal one, the thing of the greater value shall be so
considered, and as between two things of equal value, that of the greater
volume.
In painting and sculpture, writings, printed
matter, engraving and lithographs, the board, metal, stone, canvas, paper or
parchment shall be deemed the accessory thing. (377)
Article
469. Whenever the
things united can be separated without injury, their respective owners may
demand their separation.
Nevertheless, in case the thing united for the use,
embellishment or perfection of the other, is much more precious than the
principal thing, the owner of the former may demand its separation, even though
the thing to which it has been incorporated may suffer some injury. (378)
Article
470. Whenever the owner
of the accessory thing has made the incorporation in bad faith, he shall lose
the thing incorporated and shall have the obligation to indemnify the owner of
the principal thing for the damages he may have suffered.
If the one who has acted in bad faith is the owner
of the principal thing, the owner of the accessory thing shall have a right to
choose between the former paying him its value or that the thing belonging to
him be separated, even though for this purpose it be necessary to destroy the
principal thing; and in both cases, furthermore, there shall be indemnity for
damages.
If either one of the owners has made the
incorporation with the knowledge and without the objection of the other, their
respective rights shall be determined as though both acted in good faith.
(379a)
Article
471. Whenever the owner
of the material employed without his consent has a right to an indemnity, he
may demand that this consist in the delivery of a thing equal in kind and
value, and in all other respects, to that employed, or else in the price
thereof, according to expert appraisal. (380)
Article
472. If by the will of
their owners two things of the same or different kinds are mixed, or if the
mixture occurs by chance, and in the latter case the things are not separable
without injury, each owner shall acquire a right proportional to the part
belonging to him, bearing in mind the value of the things mixed or confused.
(381)
Article
473. If by the will of
only one owner, but in good faith, two things of the same or different kinds
are mixed or confused, the rights of the owners shall be determined by the
provisions of the preceding article.
If the one who caused the mixture or confusion
acted in bad faith, he shall lose the thing belonging to him thus mixed or
confused, besides being obliged to pay indemnity for the damages caused to the
owner of the other thing with which his own was mixed. (382)
Article
474. One who in good
faith employs the material of another in whole or in part in order to make a
thing of a different kind, shall appropriate the thing thus transformed as his
own, indemnifying the owner of the material for its value.
If the material is more precious than the
transformed thing or is of more value, its owner may, at his option,
appropriate the new thing to himself, after first paying indemnity for the
value of the work, or demand indemnity for the material.
If in the making of the thing bad faith intervened,
the owner of the material shall have the right to appropriate the work to
himself without paying anything to the maker, or to demand of the latter that
he indemnify him for the value of the material and the damages he may have
suffered. However, the owner of the material cannot appropriate the work in
case the value of the latter, for artistic or scientific reasons, is
considerably more than that of the material. (383a)
Article
475. In the preceding
articles, sentimental value shall be duly appreciated. (n)
CHAPTER
3
Quieting of Title (n)
Quieting of Title (n)
Article
476. Whenever there is
a cloud on title to real property or any interest therein, by reason of any
instrument, record, claim, encumbrance or proceeding which is apparently valid
or effective but is in truth and in fact invalid, ineffective, voidable, or
unenforceable, and may be prejudicial to said title, an action may be brought
to remove such cloud or to quiet the title.
An action may also be brought to prevent a cloud
from being cast upon title to real property or any interest therein.
Article
477. The plaintiff must
have legal or equitable title to, or interest in the real property which is the
subject matter of the action. He need not be in possession of said property.
Article
478. There may also be
an action to quiet title or remove a cloud therefrom when the contract,
instrument or other obligation has been extinguished or has terminated, or has
been barred by extinctive prescription.
Article
479. The plaintiff must
return to the defendant all benefits he may have received from the latter, or
reimburse him for expenses that may have redounded to the plaintiff's benefit.
Article
480. The principles of
the general law on the quieting of title are hereby adopted insofar as they are
not in conflict with this Code.
Article 481. The procedure for the quieting of title
or the removal of a cloud therefrom shall be governed by such rules of court as
the Supreme Court shall promulgated.
Comments:
·
Does the action to quiet title prescribe?
If plaintiff in possession – Imprescriptible
If
plaintiff not in possession- Prescribes in 10 or 30 years depending on ordinary
or extraordinary prescription. See Art 1134
CHAPTER
4
Ruinous Buildings and Trees in Danger of Falling
Ruinous Buildings and Trees in Danger of Falling
Article
482. If a building,
wall, column, or any other construction is in danger of falling, the owner
shall be obliged to demolish it or to execute the necessary work in order to prevent
it from falling.
If the proprietor does not comply with this
obligation, the administrative authorities may order the demolition of the
structure at the expense of the owner, or take measures to insure public
safety. (389a)
Article
483. Whenever a large
tree threatens to fall in such a way as to cause damage to the land or tenement
of another or to travelers over a public or private road, the owner of the tree
shall be obliged to fell and remove it; and should he not do so, it shall be
done at his expense by order of the administrative authorities. (390a)
TITLE
III
CO-OWNERSHIP
CO-OWNERSHIP
Article 484. There is co-ownership whenever the
ownership of an undivided thing or right belongs to different persons.
Comment:
·
Co-ownership v. corporation or partnership
·
Can a co-ownership sue as such?
In default of contracts, or of special provisions,
co-ownership shall be governed by the provisions of this Title. (392)
Article
485. The share of the
co-owners, in the benefits as well as in the charges, shall be proportional to
their respective interests. Any stipulation in a contract to the contrary shall
be void.
The portions belonging to the co-owners in the
co-ownership shall be presumed equal, unless the contrary is proved. (393a)
Article
486. Each co-owner may
use the thing owned in common, provided he does so in accordance with the
purpose for which it is intended and in such a way as not to injure the
interest of the co-ownership or prevent the other co-owners from using it
according to their rights. The purpose of the co-ownership may be changed by
agreement, express or implied. (394a)
Article 487. Any one of the co-owners may bring an
action in ejectment. (n)
Comment;
·
Presupposes that the plaintiff recognizes the
co-ownership. “Where the suit is for the
benefit of the plaintiff who alone claims to be the sole owner and entitled to
the possession of the litigated property, the action should be dismissed”[7].
Article
488. Each co-owner
shall have a right to compel the other co-owners to contribute to the expenses
of preservation of the thing or right owned in common and to the taxes. Any one
of the latter may exempt himself from this obligation by renouncing so much of
his undivided interest as may be equivalent to his share of the expenses and
taxes. No such waiver shall be made if it is prejudicial to the co-ownership.
(395a)
Article
489. Repairs for
preservation may be made at the will of one of the co-owners, but he must, if
practicable, first notify his co-owners of the necessity for such repairs.
Expenses to improve or embellish the thing shall be decided upon by a majority
as determined in article 492. (n)
Article
490. Whenever the
different stories of a house belong to different owners, if the titles of
ownership do not specify the terms under which they should contribute to the
necessary expenses and there exists no agreement on the subject, the following
rules shall be observed:
(1) The main and party walls, the roof and the
other things used in common, shall be preserved at the expense of all the
owners in proportion to the value of the story belonging to each;
(2) Each owner shall bear the cost of maintaining
the floor of his story; the floor of the entrance, front door, common yard and
sanitary works common to all, shall be maintained at the expense of all the
owners pro rata;
(3) The stairs from the entrance to the first story
shall be maintained at the expense of all the owners pro rata, with the
exception of the owner of the ground floor; the stairs from the first to the
second story shall be preserved at the expense of all, except the owner of the
ground floor and the owner of the first story; and so on successively. (396)
Article
491. None of the
co-owners shall, without the consent of the others, ma
· Query: May an alien acquire
a condominium under Philippine law?
REPUBLIC ACT NO. 4726 June 18, 1966
AN ACT TO DEFINE CONDOMINIUM, ESTABLISH REQUIREMENTS
FOR ITS CREATION, AND GOVERN ITS INCIDENTS.
Sec. 1. The short title of this Act shall be "The Condominium
Act".
Sec. 2. A condominium is an interest in real property consisting of
separate interest in a unit in a residential, industrial or commercial building
and an undivided interest in common, directly or indirectly, in the land on
which it is located and in other common areas of the building. A condominium
may include, in addition, a separate interest in other portions of such real
property. Title to the common areas, including the land, or the appurtenant
interests in such areas, may be held by a corporation specially formed for the
purpose (hereinafter known as the "condominium corporation") in which
the holders of separate interest shall automatically be members or
shareholders, to the exclusion of others, in proportion to the appurtenant
interest of their respective units in the common areas.
The real right in condominium may be ownership or any other interest in
real property recognized by law, on property in the Civil Code and other
pertinent laws.
Sec. 3. As used in this Act, unless the context otherwise requires:
(a) "Condominium" means a condominium as defined in the next
preceding section.
(b) "Unit" means a part of the condominium project intended
for any type of independent use or ownership, including one or more rooms or
spaces located in one or more floors (or part or parts of floors) in a building
or buildings and such accessories as may be appended thereto.
(c) "Project" means the entire parcel of real property divided
or to be divided in condominiums, including all structures thereon,
(d) "Common areas" means the entire project excepting all
units separately granted or held or reserved.
(e) "To divide" real property means to divide the ownership
thereof or other interest therein by conveying one or more condominiums therein
but less than the whole thereof.
Sec. 4. The provisions of this Act shall apply to property divided or to
be divided into condominiums only if there shall be recorded in the Register of
Deeds of the province or city in which the property lies and duly annotated in
the corresponding certificate of title of the land, if the latter had been
patented or registered under either the Land Registration or Cadastral Acts, an
enabling or master deed which shall contain, among others, the following:
(a) Description of the land on which the building or buildings and
improvements are or are to be located;
(b) Description of the building or buildings, stating the number of
stories and basements, the number of units and their accessories, if any;
(c) Description of the common areas and facilities;
(d) A statement of the exact nature of the interest acquired or to be
acquired by the purchaser in the separate units and in the common areas of the
condominium project. Where title to or the appurtenant interests in the common
areas is or is to be held by a condominium corporation, a statement to this
effect shall be included;
(e) Statement of the purposes for which the building or buildings and
each of the units are intended or restricted as to use;
(f) A certificate of the registered owner of the property, if he is
other than those executing the master deed, as well as of all registered
holders of any lien or encumbrance on the property, that they consent to the
registration of the deed;
(g) The following plans shall be appended to the deed as integral parts
thereof:
(1) A survey plan of the land included in the project, unless a survey
plan of the same property had previously bee filed in said office;
(2) A diagrammatic floor plan of the building or buildings in the
project, in sufficient detail to identify each unit, its relative location and
approximate dimensions;
(h) Any reasonable restriction not contrary to law, morals or public
policy regarding the right of any condominium owner to alienate or dispose of
his condominium.
The enabling or master deed may be amended or revoked upon registration
of an instrument executed by the registered owner or owners of the property and
consented to by all registered holders of any lien or encumbrance on the land
or building or portion thereof. The term "registered owner" shall
include the registered owners of condominiums in the project. Until
registration of a revocation, the provisions of this Act shall continue to
apply to such property.
Sec. 5. Any transfer or conveyance of a unit or an apartment, office or
store or other space therein, shall include the transfer or conveyance of the
undivided interests in the common areas or, in a proper case, the membership or
shareholdings in the condominium corporation: Provided, however, That where the common
areas in the condominium project are owned by the owners of separate units as
co-owners thereof, no condominium unit therein shall be conveyed or transferred to persons
other than Filipino citizens, or corporations at least sixty percent of the
capital stock of which belong to Filipino citizens, except in cases of
hereditary succession. Where the common areas in a condominium project
are held by a corporation, no transfer or conveyance of a unit shall be
valid if the concomitant transfer of the appurtenant membership or stockholding
in the corporation will cause the alien interest in such corporation to exceed
the limits imposed by existing laws.
X x x”
End
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