Property

Question 1

What is property?

Answer 1

anything which is susceptible of appropriation by man, with capacity to satisfy human wants and needs (Pineda, 1999).

Question 2

Categories of immovable property:

Answer 2

Real properties are categorized by: (NIDA)

1. Nature – Those which cannot be carried from place to place;
2. Incorporation – Those which are attached to an immovable in a fixed manner and considered as an integral part thereof, irrespective of its ownership;
3. Destination – Things placed in buildings or on lands by the owner of the immovable or his agent in such a manner that it reveals the intention to attach them permanently thereto; and
4. Analogy – Classified by express provision of law.

Question 3

Can a building be considered a personal property?

Answer 3

GR: A building is always immovable whether built in one’s own land or rented.

XPN: When a building is merely superimposed on the soil or is sold for immediate demolition, in which case it may be considered as movable or personal property.

Question 4

Can a person mortgage a building and another mortgage on the land?

How about chattel mortgage?

Answer 4

A building, by itself, may be mortgaged apart from the land on which it was built even if a mortgage of land necessarily includes, in the absence of stipulation of the improvements thereon, buildings.

Requisites for a building to be the subject of a chattel mortgage

1. Parties mutually agreed to consider the house a personal property; and
2. That no innocent third party is prejudiced.

Under the doctrine of estoppel, parties to a contract who agreed to treat as personal property that which by nature would be real property are prohibited from assuming inconsistent positions and repudiating an obligation voluntarily assumed.

Question 5

When is growing fruits considered personal property?

Answer 5

XPN: Growing fruits may be exceptionally treated as personal property pursuant to the provisions of Art. 416(2) of the New Civil Code (Rabuya, 2008).

For purposes of:

1. sale
2. attachment and execution
3. mortgage

Question 6

Are steel towers of PLDT real or personal property?

Answer 6

Steel towers are personal properties

1, They are not buildings adhered to the soil [(NCC, Art. 415(1)];

2. they are not attached to an immovable in a fixed manner;
3. they can be separated without substantial damage or deterioration,
4. they are not machineries intended for works on the land

(Board of Assessment Appeals v. Meralco,

Question 7

Requisites for machinery to be considered real property (COTE)

Answer 7

1. The industry or work must be Carried on in a building or on a piece of land; and
2. The machinery must:
   a. Be placed by the Owner of the tenement or his agent;
   b. Tend directly to meet the needs of the said industry or work; and
   c. Be Essential and principal to the industry or work, and not merely incidental thereto.

Question 8

Jolibee Corporation installed the Airconditioning in the restaurant owned by Dr. Fragante.

Is the airconditioning considered real or personal property?

Will your answer be the same if the lease contract provided it shall become part of the building after expiration of the lease?

Answer 8

Machinery placed by a tenant or by a usufructuary is NOT real property.

Since it is placed by a person having only a temporary right, it does not become immobilized (Valdez v. Central Altagracia, 225 U.S. 58, 1912).

However, Where a tenant places the machinery under the express provision of lease that it shall become a part of the land belonging to the owner upon the termination of the lease without compensation to the lessee, the tenant acts as an agent of the owner and the immobilization of the machineries arises from the act of the owner in giving by contract a permanent destination to the machinery.

Question 9

Is machinery that is bolted or cemented to the ground automatically considered a real property?

Answer 9

No.

The fact that machineries were bolted or cemented on real property mortgaged does not make them ipso facto immovable under Art. 415 (3) and (5) as the parties intent has to be looked into.

Question 10

Are the animals in animal houses real or personal property?

Answer 10

These are immovables by destination. They are considered as real property if adhered to the soil in a permanent manner. The animals in the houses are considered part of the immovable.

However, when the animal goes out of the house without intention of returning, it is considered personal property.

Cages are not included
It will be considered as personal property since they can be moved from one place to another.

Question 11

are fertilizers real or personal property?

Answer 11

Fertilizers which are still in the sacks, although there is intention to place them or use them on land, are movable. Only fertilizers actually used on a piece of land are deemed immovable since it is already placed in the land and can never be separated from it.

Question 12

Are power barges, sometimes called “floating power plants”, real or personal property?

Answer 12

Power barges are categorized as immovable property by destination, being in the nature of machinery and other implements intended by the owner for an industry or work which may be carried on in a building or on a piece of land and which tend directly to meet the needs of said industry or work (Fels Energy, Inc. v. Province of Batangas,

Question 13

Floating platform real or personal?

Answer 13

Floating platform is an immovable property
The platform is an immovable property by destination. It was intended by the owner to remain at a fixed place on a river or coast. Art. 415 (9) of the NCC considers as real property “docks and structures which, though floating are intended by their nature and object to remain at a fixed place on a river, lake, or coasts” (Fels Energy
The platform is an immovable property by destination. It was intended by the owner to remain at a fixed place on a river or coast. Art. 415 (9) of the NCC considers as real property “docks and structures which, though floating are intended by their nature and object to remain at a fixed place on a river, lake, or coasts” (Fels Energy

Question 14

Immovable By Analogy

Answer 14

These properties refer to contracts for public works, servitudes and real rights over immovable property (like usufruct). They are inseparable from their sources which are immovable, Hence, for convenience, they are considered immovable not by their nature, destination or incorporation but by analogy. While no tangible, they have the characteristics of real property (Pineda, 2009).
e.g. Contract over a construction of a bridge

Question 15

Enumerate Personal Properties under the Civil Code

Answer 15

Movable properties (SOFTSS)

1. Movables Susceptible of appropriation which are not included in Art. 415;
2. Real property which by any Special provision of law considers as personalty;
   e. g. Growing crops under the Chattel Mortgage Law
3. Forces of nature which are brought under the control of science ;
   e. g. Electricity generated by electric powers, solar light for batteries power.
4. In general, all things which can be Transported from place to place without impairment of the real property to which they are fixed (NCC, Art. 416);
5. Obligations and actions which have for their object movables or demandable sums; and
6. Shares of stock of agricultural, commercial and industrial entities, although they have real estate (NCC, Art. 417).

Question 16

Can interest in business be subjected to mortgage?

Answer 16

Interest in business is a personal property

With regard to the nature of the property mortgaged which is one-half interest in the business, such interest is a personal property capable of appropriation and not included in the enumeration of real properties in articles 335 of the Civil Code, and may be the subject of mortgage (Strochecker v. Ramirez, G.R. No. 18700, September 26, 1922).

Question 17

Long distance calls are not property. they cannot be subject to theft. Thus, PLDT cannot claim for damages against defendant for the rerouting of wires which resulted in the transfer of long distance call lines to domestic lines.

Rule on the Decision.

Answer 17

The business of providing telecommunication is a personal property

The business of providing telecommunication or telephone service is likewise personal property which can be the object of theft under Art. 308 of the RPC.
Indeed, while it may be conceded that international long distance calls, the matter alleged to be stolen in the instant case, take the form of electrical energy, it cannot be said that such international long distance calls were personal properties belonging to PLDT since the latter could not have acquired ownership over such calls. PLDT merely encodes, augments, enhances, decodes and transmits said calls using its complex communications infrastructure and facilities (Laurel v. Abrogar, G.R. No. G.R. No. 155076, January 13, 2009).

Question 18

Tests to determine whether a property is a movable property (MES)

Answer 18

a. Test of Exclusion – Everything not included in Art. 415 of NCC; e.g. ships or vessels or interest in a business
b. By reason of a Special law – Immovable by nature but movable for the purpose of the special law; e.g. Growing crops for purposes of the Chattel Mortgage Law
c. Test of Mobility – If the property is capable of being carried from place to place without injuring the real property to which it may in the meantime be attached.

Question 19

Distinguish Consumable and Non-consumable property

Answer 19

1. Consumable property – That which cannot be used according to its nature without being consumed or being eaten or used up; and
2. Non-consumable property – That which can be used according to its nature without being consumed or being eaten or used up.

Question 20

Distinguish Fungible and Non-fungible property

Answer 20

1. Fungible property – That property which belongs to a common genus permitting its substitution; and
2. Non- fungible property – That property which is specified and not subject to substitution.

NOTE: As to whether a property is fungible or non-fungible is determined by the agreement of the parties and not on the consumability of the thing.

Question 21

Councilor opposed the ordinance providing for join venture agreement with SM Mall agreement involving land owned by the City contending that it is public dominion. As such, it cannot be alienated and subject to a joint venture agreement.

Is the contention correct?

Answer 21

PUBLIC DOMINION

It means ownership by the public in general. It may also mean properties or things held by the State by regalian right.
Properties classified as public dominion cannot be alienated but are not totally outside the commerce of man as the Constitution allows the State to enter into co-production, joint ventures or production-sharing agreements with private individuals or corporations for their exploration, development and utilization.

NOTE: In order to be classified as property of public dominion, an intention to devote it to public use or to public service is sufficient and it is not necessary that it must actually be used as such.

Question 22

Iloc Bilag sold a sold to respondents separately various portions of a 159,496-square meter parcel of land designated by the Bureau of Lands as Approved Plan No. 544367, Psu 189147 situated at Sitio Benin, Baguio City (subject lands), and that they registered the corresponding Deeds of Sale with the Register of Deeds of Baguio City. This land is forms part of the Baguio Townsite Reservation which is a public land. Respondents, alleged to have been harassed and threatened by petitioners, filed a petition for Quieting of title with prayer of Preliminary Injunction before the RTC Br. 61 . Petitioners countered, among others, that RTC has no jurisdiction. Should the petition be granted?

Answer 22

A: No.

the two indispensable requisites in an action to quiet title are: (1) that the plaintiff has a legal or equitable title to or interest in the real property subject of the action; and (2) that there is a cloud on his title by reason of any instrument, record, deed, claim, encumbrance or proceeding,

since the subject lands are untitled and unregistered public lands, then petitioners correctly argued that it is the Director of Lands who has the authority to award their ownership. Thus, the RTC Br. 61 correctly recognized its lack of power or authority to hear and resolve respondents’ action for quieting of title.

Question 23

Kinds of property of public dominion (USD)

Answer 23

a. For public Use;
b. Intended for public Service and not for public use; and
c. For the Development of the national wealth (NCC, Art. 420).

Question 24

Characteristics of properties of public dominion (ULEP-ROB)

Answer 24

1. In general, they can be Used by everybody;
2. Cannot be Levied upon by execution or attachment;
3. May Either be real or personal property;
4. Cannot be acquired by Prescription;
5. Cannot be Registered under Land Registration Law and be the subject of Torrens Title;
6. Outside the commerce of man – cannot be alienated or leased or be subject of any contract;
7. Cannot be Burdened by voluntary easement.

Question 25

Patrimonial Property

Answer 25

It is the property intended for the attainment of the economic ends of the State, that is, for subsistence. It is owned by the State in its private or proprietary capacity. It is the property not devoted to public use, public service, or the development of the national wealth.

NOTE: It may be disposed of by the State in the same manner that private individuals dispose of their own property subject, however, to administrative laws and regulations.

Question 26

is charging fees material in determining if property is of public dominion or not?

Answer 26

The charging of fees to the public does not determine the character of the property whether it is of public dominion or not. The airport lands and buildings are devoted to public use because they are used by the public for international and domestic travel and transportation. The terminal fees MIAA charges to passengers, as well as the landing fees MIAA charges to airlines, constitute the bulk of the income that maintains the operations of MIAA (Manila International Airport Authority v. CA, G.R. No. 155650, July 20, 2006).

Question 27

Roppongi site, a public land, has not been used for a long time. Hence petitioners seek to acquire such property since it became patrimonial property.

Could the sale be effected?

Answer 27

The fact that the Roppongi site has not been used for a long time for actual Embassy service does not automatically convert it to patrimonial property. An abandonment of the intention to use the Roppongi property for public service and to make it patrimonial property must be definite. Abandonment cannot be inferred from the non-use alone (Laurel vs Garcia)

Question 28

How to convert land of public dominion (which cannot be alienated) to patrimonial property (which can be subject of sale)

Answer 28

When no longer intended or operated for public use or public service, a property of public dominion shall form part of the State’s patrimonial property as of the date the Government, through the Executive or Legislative Departments, has formally declared that it is no longer needed for said purposes

Question 29

Is a Sewage system devoted to public use?

Answer 29

It is property of the city, purchased with private funds and not devoted to public use (it is for profit). It is therefore patrimonial under the Civil Code. Nor can the system be considered “public works for public service” under Art. 424 because such classification is qualified by ejusdem generis; it must be of the same character as the preceding items (City of Cebu v. NAWASA, G.R. No. 12892, April 20, 1960).

Question 30

KRIVENKO DOCTRINE

Answer 30

General Rule: Aliens have no right to acquire any public or private agricultural, commercial or residential lands in the Philippines.

XPN: Aliens may only acquire such lands by hereditary succession (Krivenko vs Registry of deeds, G.R. No. L-630, November 15, 1947).