Possession

Question 1

What is Possession?

Answer 1

The holding of a thing or the enjoyment of a right. [Art. 523, CC]

Question 2

What are the four types of Possession?

Answer 2

a. with just title from true owner
b. with just title but not from the true owner
c. with juridical title
d. without title

1. With just title from true owner - Possession derived from the right of dominion or possession of an owner. This is the highest degree of possession.
2. With just title but not from the true owner -– Possession of an adverse claimant whose title is sufficient to transfer ownership but is defective such as when the seller is not the true owner or could not transmit his rights thereto to the possessor who acted in good faith;
3. With juridical title - Possession is predicated on a juridical relation existing between the possessor and the owner of the thing, e.g., lessee, usufructuary, depositary, agent, pledgee, and trustee;
4. Without title - Mere holding or possession without any right or title at all, e.g., theft, squatter, etc.;

Question 3

What is Possession with just title from true owner?

Answer 3

Possession derived from the right of dominion or possession of an owner. This is the highest degree of possession.

Question 4

What is Possession with just titl but not from the true owner?

Answer 4

Possession of an adverse claimant whose title is sufficient to transfer ownership but is defective such as when the seller is not the true owner or could not transmit his rights thereto to the possessor who acted in good faith;

Question 5

What is Possession with juridical title?

Answer 5

Possession is predicated on a juridical relation existing between the possessor and the owner of the thing, e.g., lessee, usufructuary, depositary, agent, pledgee, and trustee;

Question 6

What is Possession without title?

Answer 6

Mere holding or possession without any right or title at all, e.g., theft, squatter, etc.;

Question 7

Is Possession a definitive proof of ownership?

Answer 7

NO.

Possession is not a definitive proof of ownership nor is non-possession inconsistent therewith [Heirs of G. Bofill v. CA, G.R. No. 107930 (1994)].

Question 8

Difference between Right of Possession and Right to Possess

Answer 8

Right of Possession (jus possessionis)
-independent right

Right to Possess (jus possidendi)
-incident to ownership

Question 9

Extent of Actual Possession

Answer 9

Actual – consists in manifestation of acts of dominion over the thing of such a nature as a party would naturally exercise over his own property.

Question 10

Extent of Constructive Possession

Answer 10

possession of a portion of the thing under claim of ownership is a constructive possession of the whole of such thing, if the remainder is not in the adverse possession of another.

Question 11

What may no be possessed?

Answer 11

a. Res communes
(Res communis is a Latin term derived from Roman law that preceded today’s concepts of the commons and common heritage of mankind.)

b. Property of public dominion
c. Right under discontinuous and/or non-apparent easement

Question 12

Requirements for Object of Possession?

Answer 12

[Art. 530, CC]

a. Must be susceptible of being appropriated
b. Need not be susceptible of prescription – things must be within the commerce of men

Question 13

What are the essential requisites of possession?

Answer 13

a. Occupancy – There must be holding or control of a thing or right. Also known as possession in fact.
b. Intent to possess (animus possidendi) – The holding must be with intention to possess.

Question 14

What are the Classes of Possession?

Answer 14

a. Possession for Oneself, or Possession Exercised in One’s Own Name and Possession in the Name of Another [Art. 524, CC]
b. Possession in the Concept of a Holder with the Ownership Belonging to Another [Art. 525, CC]
c. Possession in the Concept of an Owner.
d. Possession in Good Faith and Possession in Bad Faith [Art. 456, CC]

Question 15

What is Possession in One’s own name?

Answer 15

In one’s own name – the fact of possession and the right to such possession is found in the same person.

Question 16

What is Possession in the name of another?

Answer 16

In the name of another – the one in actualpossession is without any right of his own, but is merely an instrument of another in the exercise of the latter’s possession.

Question 17

What are the 2 kinds of Possession in the name of another?

Answer 17

1. Voluntary – when exercised by virtue of an agreement,

E.g. agents or administrators appointed by the owner or possessor. Third person may also voluntary exercise possession in the name of another, but it does not become effective unless ratified by the person in whose name it is exercised.

2. Necessary or legal – when exercised by virtue of law,

E.g. representatives who exercise possession in behalf of a conceived child, juridical persons, persons not sui juris, and the CPG.

Question 18

What is Possessionin the concept of a holder with the ownership belonging to another?

Answer 18

[Art. 525, CC]
One who possesses as a mere holder, not in the concept of owner, acknowledges in another a superior right which he believes to be ownership, whether his belief is right or wrong: e.g. tenant, usufructuary, borrower in commodatum.

Question 19

What is Possession in the concept of an owner?

Answer 19

• May be exercised by the owner himself or one who claims to be so.
• DOES NOT refer to the possessor‘s inner belief or disposition regarding the property in his possession.
• Possession in the concept of an owner refers to his overt acts which tend to induce the belief on the part of others that he is the owner.
• Possession in the concept of an owner is ius possidendi.

Question 20

What is a possessor in good faith?

Answer 20

One who is unaware that there exists a flaw which invalidates his acquisition of the thing. He believes that the person from whom he received a thing was the owner of the same and that therefore he is now the owner based upon ostensible title or mode of acquisition, e.g. sale, donation, inheritance, or other means of transmitting ownership.

Question 21

What are the rights of a possessor?

Answer 21

1. Fruits
2. Necessary expenses to every possessor
3. Useful Expenses when possessor in good faith
4. Right of retention when there are unpaid necessary or useful expenses [Art. 546, CC]
5. Removal of useful/ornamental without damage
6. No liability for deterioration.
7. May acquire full ownership by prescription.
8. Presumption of just title [Art. 541, CC]
9. Possessor can bring all actions necessary to protect his possession (action in ejectment or accion publiciana)
10. He can ask for the inscription of possession in the registry of property.
11. He can do on the thing possessed everything that the law authorizes an owner to do: he can exercise the right of pre-emption and is entitled to the indemnity in case of appropriation.
12. Has presumption of continuity of good faith [Arts. 528 and 529, CC)
13. Non-interruption of possession (possession during intermediate period) [Arts. 554 and 561, CC]
14. Right to be respected in his possession and protected in his possession [Art. 539, CC] “Every possessor” – includes all kinds of possession, from that of an owner to that of a mere holder, except that which constitutes a crime.
15. Lawful possessor can employ self-help [Art. 429, CC]
    Reason for the rule: To prevent anyone from taking the administration of justice into his own hands. Even the owner cannot forcibly eject the possessor, but must resort to the courts (in relation to Art. 539).
16. Possession of an immovable extends to the movables within or inside [Arts. 542 and 426, CC] Exception: Shown or proven they should be excluded.

Question 22

What are the effects of Possession?

Answer 22

a. possession in the concept of owner is converted into ownership after the required lapse of time necessary of prescription [Art 540]
b. entitlement to fruits/expenses

Question 23

What are the requisites of consolidating title by prescription?

Answer 23

To consolidate title by prescription, the possession must be under claim of ownership, and it must be peaceful, public and uninterrupted [Art 1118, CC].

Question 24

Who cannot acquire title by prescription?

Answer 24

• Lessees, trustees, pledges, tenants on shares or planters and all those who hold in the name or in representation of another.
• Mere holders placed in possession of the property by the owner, such as agents, employees.
• Those holding in a fiduciary character like receivers, attorneys, depositaries and antichretic creditors.
• Co-owner, with regard to common property: EXCEPT: when he holds the same adversely against all of them with notice to them the exclusive claim of ownership.

Question 25

Will possession by virtue of a license or mere tolerance of the owner apply for acquisitive prescription?

Answer 25

Acts of possessory character done by virtue of a license or mere tolerance on the part of the real owner do not apply for purposes of acquisitive prescription. [Art. 1119, CC]

Question 26

What is the entitlement of possessor in good faith to fruits already received?

Answer 26

[Art. 544(1), CC]

• Entitled to all the fruits until possession is legally interrupted (i.e. before summons, or demand see Art. 528 for when possession in good faith is interrupted)

Question 27

What is the entitlement of possessor in good faith to fruits still pending?

Answer 27

[Art. 545, CC] • Entitled pro-rata to the fruits already growing when his possession is legally interrupted.

Question 28

What is the entitlement of a possessor in good faith to necessary expenses?

Answer 28

The possessor in good faith may retain the thing until he is reimbursed for necessary expenses.

Question 29

What are necessary expenses?

Answer 29

necessary for the preservation of the thing [Art. 452, CC by analogy]

Question 30

What are useful expenses?

Answer 30

incurred to give greater utility or productivity to the thing

Question 31

What is the entitlement of possessor in good faith to Useful Expenses?

Answer 31

• They are reimbursed only to the possessor in GF as a compensation or reward for him. Possessor in BF cannot recover such expenses
• The possessor in good faith may retain the thing until he is reimbursed for useful expenses.

• The person who defeats the possessor in
possession has the option to: – Refund the amount of expenses; or – Pay the increase in value which the thing may have acquired

• The possessor has the option of removing the useful improvements may remove them, provided there is no damage to the principal thing. [Art. 547, CC]

Exception: When the option to pay for the value of the expenses or the increase in value of the thing is exercised by the person who recovered possession.

Question 32

What is the entitlement of possessor in good faith as to ornamental expenses or expenses for pure luxury?

Answer 32

[ART. 548, CC]

The possessor in good faith is not entitled to a refund for ornamental expenses. But he may remove the ornamental improvements if they do not cause damage to the principal thing.

Exception: The one who recovers possession decides to refund the ornamental expenses/ expenses for pure luxury.

Question 33

Who is a possessor in bad faith?

Answer 33

One who is aware that there exists in his title or mode of acquisition a flaw which invalidates it. [Art. 526, CC]

Question 34

What are the requisites of a Possessor in Bad Faith?

Answer 34

a. Possessor has a title or mode of acquisition;
b. There is a flaw or defect in said title or mode;
c. The possessor is aware of the flaw or defect in the title

Question 35

What are some examples of vice or defect in title?

Answer 35

Examples of vice or defect in title:

1. Grantor was not the owner
2. Requirements for transmission were not complied with
3. Mistake in the identity of the person
4. Property was not really res nullius

Question 36

What are the Rights of a possessor in bad faith?

Answer 36

a. Right to be respected in possession; [Art. 539, CC]
b. Right to necessary expenses and the expenses for production, gathering, and preservation of fruits; [Arts. 545 and 546, CC; Art. 443, CC]
c. Does not have right to reimbursement of expenses for luxury but may remove them as long as the principal thing suffers no injury, or may sell them to the owner who opts to buy the removable ornaments. [Art. 549, CC]
d. No right to reimbursement for useful improvements and no limited right of removal.

Question 37

What are the obligations of a possessor in bad faith?

Answer 37

a. Reimburse the value of fruits received and which the legitimate possessor could receive; [Art. 549, CC]
b. Pay in proportion to the charges, expenses of cultivation and the net proceeds upon cessation of good faith; [Art. 545, CC]
c. Costs of litigation; [Art. 550, CC]
d. Liability to the deterioration/loss of a thing possessed in every case, including fortuitous events. [Art. 552, CC]

Question 38

What are the ways of acquiring possession?

Answer 38

[Art 531, CC]

a. by the material occupation of a thing or the exercise of a right
b. by the fact that the thing is subject to the action of our will
c. by the proper acts and legal formalities established for acquiring such right

Question 39

How is possession acquired by the material occupation of a thing or the exercise of a right?

Answer 39

a. Possession is acquired through the following modes of constructive delivery:

– Traditio brevi manu – If the transferee/buyer already had possession of the object under a different title even before the sale (e.g., lessee subsequently buys the property)
– Traditio constitutum possessorium – the transferor/seller continues in the possession of the object, but not in the concept of an owner (e.g., owner sells the property and becomes lessee)

b. Constructive possession

Question 40

How is possession acquired by the fact that the thing is subject to the action of our will?

Answer 40

Possession is acquired through the following modes of constructive delivery:

a. Traditio simbolica – delivering an object or symbol placing the thing under the control of the transferee
b. Traditio longa manu – the transferor points out to the transferee the things which are being transferred, or they merely agree or consent that delivery has been effected

Question 41

How is possession acquired by the proper acts and legal formalities established for acquiring such right?

Answer 41

Acquisition by virtue of a just title such as when property is transmitted by succession, donation, contract, or execution of a public instrument, etc.

Question 42

By Whom may Possession be Acquired?

Answer 42

[Art. 532, CC]

1. The same person who is to enjoy it
2. His legal representative
3. His agent
4. Any person without any power whatsoever
   – Only acquired upon ratification in whose name the possession is acquired, without prejudice to the application of negotiorum gestio.

Question 43

Can possession as a fact be recognized in two different personalities at the same time?

Answer 43

NO.

Possession as a fact cannot be recognized at the same time in two different personalities except in the cases of co-possession.

Question 44

In case of a dispute, what is the order of preference of possession?

Answer 44

In case a dispute arises, the order of preference is as follows:

1. The present possessor shall be preferred
2. If there are two possessors, the one longer in possession is preferred
3. If the dates of the possession are the same, the one who presents a title is preferred
4. If all the foregoing conditions are equal, the thing shall be placed in judicial deposit pending determination of its possession or ownership through proper proceedings.

Question 45

What are Acts which does not affect possession?

Answer 45

a. acts merely tolerated
b. acts executed clandestinely and without the knowledge of the possessor
c. acts of violence as long as the possessor objects thereto

Question 46

What are Acts Merely Tolerated which does not affect possession?

Answer 46

1. Those which because of neighborliness or familiarity, the owner of property allows another person to do on the property;
2. Permissive use merely tolerated by the possessor cannot affect possession and cannot be the basis of acquisitive prescription. Possession to constitute the foundation of prescriptive right must be possession under claim of title; it must be adverse. [Cuaycong v. Benedicto, G.R. No. L-9989 (1918)]
3. A possessor by tolerance is necessarily bound by an implied promise to vacate upon demand, failing which a summary action for ejectment is the proper remedy against him. [Peran vs. CFI, G.R. No. L-57259, (1983)]

Question 47

What are ‘acts executed clandestinely and without the knowledge of the possessor’ which does not affect possession?

Answer 47

[Art 1118, CC]

Possession by possessor is not affected as long as it remains clandestine and unknown. Possession has to be in the concept of an owner, public, peaceful and uninterrupted.

Question 48

What are ‘acts of violence as long as the possessor objects thereto’ which does not affect possession?

Answer 48

[Art 536, CC]

1. Possession cannot be acquired through force or intimidation as long as there is a possessor who objects thereto. This includes forcibly taking away the property from another, and also when one occupied the property in the absence of another, and repels the latter upon his return.
2. He who believes that he has an action or a right to deprive another of the holding of a thing must invoke the aid of a competent court, if holder refuses to deliver the thing [Art. 536, CC].
3. Ratio: Acts mentioned do not constitute true possession. They do not interrupt the period of prescription nor affect the rights to the fruits.

Question 49

What are the Rules on Co-Possession?

Answer 49

a. For the entire period that the co-possession lasted, each one of the participants of a thing possessed in common shall be deemed to have exclusively possessed the part allotted to him upon division thereof [Art. 543, CC]
b. Interruption in the possession of the whole or a part of the thing possessed in common shall be to the prejudice of all possessors [Ibid].
c. In case of civil interruption, Rules of Court applies [Ibid].

Question 50

Determine the rule:

Possessor in GF - Fruits received

Answer 50

Entitled to the fruits while

possession is in good faith and before legal interruption [Art. 544, CC)

Question 51

Determine the rule:

Possessor in BF - Fruits received

Answer 51

Must reimburse the

legitimate possessor for fruits received or could have been received, less expenses under Art. 443, CC [Art. 549, CC]

Question 52

Determine the rule:

Possessor in GF - Pending fruits

Answer 52

Entitled to part of the expenses of cultivation, and to a part of the net harvest, in proportion to the time of the possession.

Indemnity may be, at the owner’s option, in money, OR by allowing full cultivation and gathering of the fruits [Art. 545, CC]

Question 53

Determine the rule:

Possessor in BF - Pending Fruits

Answer 53

Goes to the legitimate possessor who recovers possession (Art. 549, CC)

Question 54

Determine the rule:

Possessor in GF - Charges

Answer 54

Must share with the legitimate possessor, in

proportion to the time of the possession [Art. 545, CC]

Question 55

Determine the rule:

Possessor in BF - Charges

Answer 55

Same as with GF [Art. 545, CC]

Question 56

Determine the rule:

Possessor in GF - Necessary Expenses

Answer 56

Right to reimbursement and retention [Art. 546, CC]

Question 57

Determine the rule:

Possessor in BF - Necessary Expenses

Answer 57

Reimbursement [Art 564, CC]

Question 58

Determine the rule:

Possessor in GF - Useful Expenses

Answer 58

Right of retention until reimbursed; Owner’s option to reimburse him either for expenses or for increase in value which the thing may have acquired [Art. 546, CC]

Limited right of removal – should not damage principal and owner does not exercise option of paying the expenses or increase in value [Art. 547, CC]

Question 59

Determine the rule:

Possessor in BF - Useful Expenses

Answer 59

No right to

reimbursement and no right of removal [Art. 547, CC]

Question 60

Determine the rule:

Possessor in GF - Ornamental Expenses

Answer 60

Limited right of removal [Art. 548, CC]

Question 61

Determine the rule:

Possessor in BF - Ornamental Expenses

Answer 61

Limited right of removal [Art. 549, CC]

Question 62

Determine the rule:

Possessor in GF - Deterioration or Loss

Answer 62

No liability unless due to fraud or negligence [Art. 552, CC]

Question 63

Determine the rule:

Possessor in BF - Deterioration or Loss

Answer 63

Liable in every case [Art. 552, CC]

Question 64

Determine the rule:

Possessor in GF - Costs of LItigation

Answer 64

Bears cost [Art. 550, CC]

Question 65

Determine the rule:

Possessor in BF - Costs of Litigation

Answer 65

Bears cost [Art. 550, CC]

Question 66

What is the Doctrine of Irrevindicability?

Answer 66

Doctrine of irrevindicability:

Possession in good faith of a movable is presumed ownership. However, it is merely presumptive because it can be defeated by the true owner.

Question 67

What is the rationale behind the Doctrine of Irrevindicability?

Answer 67

To facilitate transactions on movable property which are usually done without special formalities

Question 68

What are the requisites of the doctrine of irrevindicability?

Answer 68

1. The possession should be in good faith;
2. The former owner voluntarily parted with the possession of the thing; and
3. The possession is in the concept of owner.

Exceptions:

1. Owner or possessor has lost the movable property; or
2. Owner or possessor has been unlawfully deprived of a movable.

Question 69

What is included in Unlawful Deprivation?

Answer 69

Unlawful deprivation – includes all cases of taking that constitute a criminal offense (conviction is not necessary), such as theft, robbery, estafa, etc., including those involving abuse of cionfidence. [Dizon v. Suntay, G.R. No. L-30817, (1972)]

Question 70

What is the Period to Recover Movable Property?

Answer 70

8 years – from the time the possession of the movable is lost, for uninterrupted possession (whether in bad faith or good faith) [Art. 1140, CC] Subject to Article 1505 and Article 559.

4 years – action to recover prescribes if there is uninterrupted possession in good faith, subject to Article 1505 and Article 559. [Art. 1132, CC]

No prescription – if possessed through a crime [Art. 1133, CC]

Question 71

What are the Rules re Finder of Lost Movable

Answer 71

1. Whoever finds a movable, which is not a treasure, must return it to its previous possessor.
2. If the previous possessor is unknown, the finder shall immediately deposit it with the mayor of the city or municipality where the finding has taken place.
3. The finding shall be publicly announced by the mayor for two consecutive weeks in the way he deems best.
4. If the movable cannot be kept without deterioration, or without expenses which considerably diminish its value, it shall be sold at public auction 8 days after the publication.
5. Six (6) months from the publication having elapsed without the owner having appeared, the thing found, or its value, shall be awarded to the finder. The finder and the owner shall be obliged, as the case may be, to reimburse the expenses.
6. If the owner should appear in time, he shall be obliged to pay, as a reward to the finder, 1/10 of the sum or of the price of the thing found.

Question 72

What are the ways in which a possessor may lose his possession?

Answer 72

1. By the abandonment of the thing;
2. By an assignment made to another either by onerous or gratuitous title;
3. By the destruction or total loss of the thing, or because it goes out of commerce;
4. By the possession of another for more than one year, subject to the provisions of Art. 537 (Acts merely tolerated, clandestine acts and violence). But the real right of possession is not lost till after the lapse of 10 years.

Question 73

What is the general rule re Loss of Movables?

Answer 73

General rule: Rightful Owner may recover it from the person in possession of the same [Art. 559, CC]

Question 74

What are the exceptions to the rule that “rightful owner may possess lost movables from person in possession”?

Answer 74

1. Possession Acquired in Good Faith in Public Sale: The original owner must reimburse the price paid for the movable. [Art. 559, CC]
2. Possession Acquired in Merchant’s Store, fair or markets: No Recovery [Art. 1505, CC] This is to protect the innocent buyer to facilitate commercial sales and give stability to business transactions. A buyer cannot be reasonably expected to look behind the title of every article when he buys at a store [Sun Brothers vs. Velasco, 54 O.G. 5143, (1958)]
3. Possession acquired by purchasing in good faith, for value and without notice of defect in title of the seller from one who has a voidable title thereto, which has not been annulled at the time of the sale: No Recovery [Art. 1506, CC]
4. If the present possessor has already become owner of the thing through acquisitive prescription. Exception: If acquired through a crime. [Art. 1133]