FUNDAMENTALS OF PROPERTY OWNERSHIP Flashcards
refers to the totality of the assets owned by a person which includes real estate and personal properties
estate
refers to the land and all permanent improvements attached thereon
real estate
real estate plus rights and benefits
real property
what are the bundle of rights
P - Possess (Jus Possidendi)
U - Use (Jus Utendi)
E - Enjoy (Jus Utendi), Rights to Fruits (Jus Fruendi)
D - Dispose or Alienate (Jus Dispodendi)
E - Exclude
V - Vindicate or Recover (Jus Vindicandi)
A - Abuse (Jus Abutendi)
what are the physical characteristics of real estate
immobility, indestructibility, uniqueness, non-homogeneity
is a type of property that is physically attached to land or property, typically through a structural or permanent connection
fixture
what are the tests for a fixture
M - method of attachment
A - Adaptation of items
R - Relationship of parties
I - intent of the parties
A - agreement of the parties
is a movable and does not form part of the land or building
personal property
the highest form of land ownership
freehold estates of ownership
2 types of freehold estates of ownership
fee simple estate and life estate
is a present and possessory interest, carrying the maximum bundle of rights. It allows the owner to use the property indefinitely
fee simple estate
is the most complete form of ownership
fee simple absolute
is a right of possession with certain restrictions on its use
fee simple subject to power of termination
right to use and possess the property only during their lifetime of that of the identified person in the deed or will
life estate
interest that the original owner holds in the property after the life estate ends
reversion
interest that a third party holds in the property after the life estate ends
estate in remainder
type of property ownership where a tenant is granted right to inhabit a property for a specified period while paying rent to the landlord
leasehold estates of tenancy
is created when a landlord and tenant agree on a specific time frame for the tenancy
estate for years
if landlord and tenant agree on a lease term without end day. the lease continues until either the landlord or tenant gives notice to terminate the agreement
estate from period to period
creates a tenancy where either party can terminate the lease agreement at any time without prior notice
estate at will
arises when a tenant continues to occupy the premises after lease has expired or been terminated
estate as sufferance
all lands of the public domain belong to the state
regalian doctrine
the soil is the material which makes up the earth, including substances beneath the surface that extend to the center of the earth
land
the right to use the air space above you subject to government laws
air rights
the right to improve your land, plant trees or crops, build house and structures subject to local government laws and restrictions
surface rights
water rights, mineral rights or the right to remove substances underneath your land, treasure rights, right to dig/explore subject to government laws
subsurface rights
right to own real estate in the philippines is governed by the 1987 constitution
right to own land
classifications of lands of public domain
agricultural
forest or timber
mineral
national parks
alienable lands of public domain shall be limited to
agricultural lands
lands that may be conveyed or transferred by one party to another
alienable lands
private corporations and associations may hold such alienable lands of public domain only by lease, not exceeding:
Period?
Renewable for?
Area limit?
Maximum term?
Period: 25 years
Renewable: 25 years
Limit: 1,000 hectares
Maximum term: 99 years
Filipino citizens may lease alienable lands of public domain not more than
500 hectares
Filipino citizens may acquire alienable lands of public domain not more than ___ by purchase, homestead or grant
12 hectares
what are the powers of the state
police power
eminent domain
taxation
escheat
power of the state to regulate the use of the property
police power
refers to the use of restrictions in particular areas or the delineation of allowable uses in particular areas
zoning
regulations pertaining to specifications such as height, setbacks, construction materials
building code
the power of the state to take private property for public use upon payment of just compensation
eminent domain
power of the state to impose and collect tax and other charges
taxation
reversion of the property to the state on the owners dying without legal heirs
escheat
temporary surrender of the right to possess, use and enjoy in favor of a person who pays a consideration
lease contract
right given to an owner of an adjoining land to pass or have access through another land
right of way easement
conveyance of the right to enjoy the fruits of the property
usufruct
best evidence of ownership
torrens certificate of title
system of land registration commonly used today
torrens system
one of the founders of the torrens system in south australia in 1857
Sir Robert Richard Torrens
voluntary transfer or conveyance such as sale or donation
private grant
acquisition of alienable public land by homestead patent, free patent, sales patent or other government award
public grant
acquisition against consent of owner such as foreclosure or executive sale
involuntary grant
acquisition by hereditary succession
inheritance
filling of submerged land subject to government regulations and existing laws
reclamation
acquisition of land adjoining banks of rivers due to gradual deposit of soil as a result of moving body of water, such as rivers
accretion
prescription is acquisition of title by
E - Exclusive
C - Continuous
O - Open and notorious
A - Actual occupation
C - Claim of right or color of title
H - Hostile
acquisition of title by prescription with a period of
10 years in good faith and 30 years in bad faith
original certificate of title (OCT) has been issued to an owner by the Register of Deeds for the first time
original registration
2 ways to acquire OCT
Judicial - through the courts (Act496/Land Registration Act and PD1529/Property Registration Decree -voluntary, Act2259/Cadastral Act-compulsory)
Administrative - acquisition of land patents to public agricultural lands (CA141/Commonwealth Act No. 141)
when originally issued land title, OCT, is cancelled and replaced by another title
subsequent registration
exceptions to foreign ownership of real estate in the philippines
1 - acquisition before the 1935 constitution
2 - acquisition by hereditary succession
3 - purchase by aliens of not more than 40% of the units in a condominium project
4 - purchase by former natural-born filipino citizens
ownership of land carries with it a distinct social obligation, owners are obliged to use their properties to promote the general welfare and not only their interests, thus the state may regulate or control land ownership
stewardship concept
everything on earth must have an owner
res nullius
the owner or lawful possessor of a thing has the right to exclude any person from enjoyment and disposal thereof. for this purpose, he may use such force as may be reasonably necessary to repel or prevent an actual or threatened unlawful physical invasion or usurpation of his property
doctrine of self-help
belongs to the owner of the land, building, and other property on which it is found
hidden treasure
any hidden and unknown deposit of money, jewelry, or other precious objects, the lawful ownership of which does not appear
treasure
the holding of a thing or an enjoyment of a right
possession
taking over someone elses property and occupying it long enough to actually acquire ownership
prescription
the state has the right to take private property for public use by paying the property owner just compensation
eminent domain / condemnation
proceeding to perform condemnation
expropriation
devotion of property by an unequivocal act of the fee owner manifesting an intention that it shall be accepted
donation
donation becomes valid only if it is
1 - registered in a public document
2 - done during the lifetime of the donor
3 - donee is not disqualified by law
donation done during donor’s lifetime, through a public document and must be accepted by the donee
donation inter vivos
donation done upon the donor’s death, through a valid will and doesn’t need to be accepted by the donee
donation mortis causa
refers to an increase in property owned. manmade or natural additions to property may extend the owner’s title to include those additions
accession
occurs when a person affixes his property to the land of another without an agreement permitting him to remove it
annexation
process by which land adjacent to a flowing body of water accumulates new soil
accretion
buildup of soil on a river as a result of accretion
alluvion / alluvium
sudden and perceptible change in land brought about by water
avulsion
the increase in land caused by the gradual recession, shrinkage or change in course of a body of water which gives the owner of the riparian property more dry land
reliction
document made by an owner of a property who is legally competent to do so, to pass title to the property to another after death
will
person making the will and is said to die in testate
testator
the personal representative of a person who dies leaving a will
executor
if no will is left, the representative is called the
administrator
transfer of title to real estate by will
devise
deceased owner with a will
devisor
person receiving property by will
devisee
transfer of property by will, particularly personal property
bequest of legacy
recipient of personal property by will
legatee
during life, the testator has the right to make a new will or make amendments through a document called a
codicil
is the judicial process whereby a will is “proved” in a court of law and accepted as a valid public document that is the true last testament of the deceased, or whereby the estate is settled according to the laws of intestacy in the state of residence of the deceased at time of death in the absence of a legal will
probate
formal will, in writing, signed at the end if the testator, witnessed by at least three or more credible attesting witness in the presence of the testator and the will recipient, and duly notarized by an attorney
notarial or witness will
written, dated and signed entirely in the hand of the testator, and it need not to be witnessed. its use is recommended only when time factor or other circumstances do not permit the execution of a formal will
holographic will
part of the testators estate that he cannot dispose of because the law has reserved it to a certain heir
legitime
legitimate and illegitimate children of the decedent
compulsory heirs
when a person dies without leaving a will, his estate is distributed to his heirs at law
succession
a fiduciary arrangement where an owner of property, referred to as the settlor or trustor, transfers title to the property, called the corpus of trust, with the intention that it will be held and administered by the transferee, called the trustee, for the benefit of another person or persons, called the beneficiary or cestui que trust
transfers in trust
reverting of property to the state when a person dies without a will and there are no heirs capable of inheriting.
escheat
prescriptive time period for escheat
5 years
involuntary transfer of title, an action to quiet title, a foreclosure action, or an execution sale following a judgement for money; also bankruptcy proceeding will cause transfer of title by operation of law
involuntary alienation
a court proceeding brought to force others who have claim to the property to prove those claims or have the claims ruled invalid
action to quiet title
sale of property by mortgagee, trustee, or other lienholder on default by the borrower
foreclosure action
divestiture or loss of property without compensation in consequence of a default
forfeiture
the true owner permits another person to appear either as the owner of the property or as having full power of disposition over it, an innocent third party who is led into dealing with the apparent owner will be protected by court of equity against claims of the true owner whose conduct made the fraud possible
title by estoppel
shall have exclusive jurisdiction over all applications for original registration of title to lands, including improvements, and interests therein, and over all petitions filed after original registration of title
court of first instance
who may apply for original registration
1 - those who by themselves or through their predecessors-in-interest have been in open, continuous, exclusive and notorious possession and occupation of alienable and disposable lands of the public domain under a bonafide claim of ownership since june 12, 1945 or earlier
2- those who have acquired ownership of private lands by prescription
3- those who have acquired ownership of private lands or abandoned riverbeds by right of accession or accretion
building as personal property
stipulated in contract in chattel mortgage
bought for demolition
estimated value of property subject to expropriation for public use
condemnation value
how many persons per square kilometer is considered as urban land
1000 persons per 1 square kilometer
citizenship based on nationality of parents
jus sanguinis
citizenship based on place of birth
jus soli
estate’s duration is based on the life of the receiver
life estate
tenancy started by legal means but ended without justification
tenancy at sufferance
to recover real property due to forcible entry or unlawful detainer
accion interdictal (filed with in 1 year)
recover better right of possession of a real property
accion publiciana (filed within 10 years)
recover ownership of real property
accion reinvindicatoria (filed at the RTC with in 10 years - ordinary prescription or 30 years - extraordinary
finder is entitled to ___ on hidden treasure
1/2
land formed in sea water
litoral
void marriage creats
co-ownership
resumption of relationship between testator and disinherited heir
reconciliation
addition of value of all donations made inter vivos by the decedent
collation
omission in the testator’s will of one or all of the compulsory heirs
preterition or pretermission
partition of estate is prohibited
by testator: not to exceed 20 years
by co-heirs: not to exceed 10 years
donative intent
animus domandi
donation is perfected when
at the moment the donor knows about the acceptance of donee
easement of view
direct view - 2m between walls
oblique view - not less than 60cm
property of the state accoding to UNCLOS
200 nautical miles
signature of parents are needed for ___ to be married
18-21 years old
main law governing the right to own real estate
1987 constitution
res alicujus
owned by person
res alienae
belongs to another
res communes
owned by nobody, can be used by everybody
if the total area in the contract is smaller that actual provied
rescission
voluntary renunciation of all rights thereby allowing third person to acquire such property
abandonment
transmission of rights thru legal means
assignment
failure or neglect to exercise due diligence in an unexplained length of time
laches
the owner of a property cannot prohibit the interference of others to avoid grave danger. the owner can indemnify self
acts in state of necessity
the right of the owner to exclude others from enjoyment of his property. he may use reasonable force to prevent invasion or usurpation of his property
doctrine of self-help
state owned in a private or proprietary capacity
patrimonial property
real estate professionals should indicate the following in signed documents, letterheads, advertisements
license no.
professional ID no.
PTR no.
AIPO no.
with issuance and validity dates
signs/billboards and dry seal should indicate
only license no.
has the power to adopt code of ethics prepared by PHILRES
PRBRES
Real Estate Brokerage Law
CA 2728
–law that governs relations of a couple who wants to get married
FAMILY CODE OF THE PHILIPPINES
–homestead land under 1987 constitution
12 hectares
–limitation on the right of ownership aside from legal
contractual
–proceeding to take private property for public use
expropriation
if foreigners want to build a house
lease the land
–filipinos that became foreign citizen can still own a house through this
hereditary succession
–should be executed for complete separation of property
pre-nuptial agreement
–right of fruits of property
usufruct
–legal age to get married under the new family code
18 years old
–voluntary limitation in one’s right of ownership
deed of restrictions
–when 2 neighbors goes into a sale
private grant
–signed by foreigner who’s wife bought a property
void affidavit
–property of wife which was inherited during marriage
paraphernal property
–to be a dual citizen this must be done by natural born filipino
file petition in Bureau of Immigration
–property relations if not married
co-ownership
–separated from husband but wants to sell property. Property
inherited prior to marriage
she gets the consent of the husband
–if property loaned was sold in a auction
involuntary grant
–sole property of the husband who is now married
capital property
–not included trade in foreign investors act
buying and selling
–wife and husband can sell to each other
they have a judicial separation of property
–period of time to question a husband who sold a conjugal property
5 years
–imprescriptible and indefeasible
torrens title
–citizenship aside from naturalization
acts of legislature
corporations can lease public domains for
25 years renewable for 25 years
–property relations if married in 1975 but no pre nup
relative community of property
–husband has no consent with transfer of property. Before the family code
EXCLUSIVE MONEY OF THE WIFE
–foreign investors lease act renewable up to
25 years
–acquire possession if in good faith
10 years
–can separate properties if there’s no marriage settlement
judicial order
–temporary use of land
lease contract
population density of urban area
1000 persons per square kilometer
–first thing to do to acquire land by a natural born filipino
affidavit under BP 185
–to become dual citizen
taking oath of allegiance
–acquire possession if in bad faith
30 years
–if no marriage settlement, this must be issued
judicial separation of property
–piece of land through inheritance, no marriage settlement
paraphernal property
–escheated by government
patrimonial property
–a visa given to foreigner to reside in the phils under Philippine Retirement
Authority
special resident retiree’s visa
-minimum amount of Filipino ownership of a real estate corporation
0%
-min pinoy ownership in a corporation
60%
–a pinoy may apply for free patent under RA 10023, this is for first and second class municipalities
750 sqm
A child born out of wedlock from minor parents, but who eventually got married, will now be classified as
legitimate
A sale of parcel of land, bought by a foreigner who was not allowed to own land, sold eventually to a Filipino citizen
is
valid
For a pinoy who Is a citizen of Australia, to be able to acquire land under BP185, the person should be
born of at least one Filipino parent
–reserved for compulsory heirs
legitime
–former natural born pinoy can acquire land in a rural area not to exceed 3
HECTARES
Foreign Investor Act of 1991
If marriage settlement is void, there’s an
absolute community of property
Illegitimate minor child may use the surname of the father who is married to another provided
the father executes an affidavit of acknowledgement
–land acquired through public auction
involuntary grant
–when a person inherits real estate from the deceased who died with a will but which
was declared void, would be an inheritance through
intestate succession
A Filipina can sell to her husband if there’s a
judicial separation of property
–classification of property under civil code
immovable and movable
–granting foreigners citizenship
1987 constitution
–if two people, both single, lived together as husband and wife
co-ownership
–not a requirement of becoming dual citizen
renunciation of foreign citizenship
–considered a voluntary limitation on one’s ownership to land
right of way easement
–allowable leasable alienable land of the government
500 hectares
–current river segragates from one estate on its bank portion of land and transfer to another estate
avulsion
–right of owner of a parcel of land to receive civil fruits means the following
right to receive rent
–not a requisite for the exercise of eminent domain
must be titled land
Private corporations and associations may hold such alienable lands of the public domain only by
lease for 25 years renewable for 25 years, not to exceed 1,000 hectares
Filipino citizens may lease not more than
500 hectares
the temporary surrender of the right to possess, use and enjoy in favor of person who pays a consideration
lease contract
under BP 185, former filipinos acquisition shall not exceed ___ to be used solely for residence of the buyer
1,000 sqm for urban
1 hectare for rural
urban areas shall include
1- population density of 1000 persons per sqkm
2 - poblaciones or central districts with 500 persons per sqkm
3 - poblaciones or central districts with street pattern and at least 6 establishments
Foreign Investments Act of 1991: natural born Filipino who lost citizenship may be a transferee of private land up to maximum of
5000 sqm for urban
3 hectares for rural
Dual Citizenship Law
RA 9225
Foreign Investments Act of 1991
RA 7042 as amended by RA 8179
