CLASSIFICATION of PROPERTY

Articles 414 and 415

1
Article 414

• All things which are or may be the

object of appropriation are considered
either:
• (1) Immovable or real property; or
• (2) Movable or personal property.

2
IMMOVABLE PROPERTY – Art. 415

(1) Land, buildings, roads

and constructions of
all kinds adhered to
the soil;

Are squatter shanties

immovable property?
3
 Art. 415, (1) Land, buildings, roads and
constructions of all kinds adhered to the soil;

• There are
things in this
photo.
• Which of
these things
fall under the
first
classification
of immovable
property
under art
415, par (1)?

4
IMMOVABLE PROPERTY – Art. 415

(2) Trees, plants, and growing

fruits, while they are
attached to the land or
form an integral part of an
immovable

5
IMMOVABLE PROPERTY – Art. 415
Are growing fruits already identified for harvesting
considered immovable property?

6
IMMOVABLE PROPERTY – trees, whether
spontaneous or planted

• Does land registration include trees and plants?

• Are growing fruits on owned land immovable
property? What about growing fruits on rented
land?
• Are trees in the forest immovable property? What
about forest logs?

7
IMMOVABLE PROPERTY – trees, whether
spontaneous or planted

• Registration of land includes trees and plants –

Lavarro vs Labitoria
• Growing crops on own land or on another’s land –
no distinction
• Attached to the land = real
• Harvested = personal

8
 IMMOVABLE PROPERTY – Art. 415
(3) Everything attached to an immovable in a fixed manner, in
such a way that it cannot be separated therefrom without
breaking the material or deterioration of the object

9
 IMMOVABLE PROPERTY – Art. 415
(4) Statues, reliefs, paintings, or other objects for use or
ornamentation, placed in buildings or on lands by the owner of
the immovable in such a manner that it reveals the intention to
attach them permanently to the tenements

10
IMMOVABLE
PROPERTY –
Art. 415

Is the lion’s head along Kennon Road

immovable property?
Is a statue by itself considered immovable
property?

11
IMMOVABLE PROPERTY – Statues... placed by owner of the
immovable with intention to attach permanently

• OWNER of the IMMOVABLE with intention to attach

permanently

12
 IMMOVABLE PROPERTY – Art. 415
(5) Machinery, receptacles, instruments or implements intended by the
owner of the tenement for an industry or works which may be
carried on in a building or on a piece of land, and which tend
directly to meet the needs of the said industry or works

13
 IMMOVABLE PROPERTY – Art. 415

Are the water pipes laid out

by Maynilad or the
Metro Lipa Water
Company immovable
property?

14
IMMOVABLE PROPERTY – Art. 415

(6) Animal houses, pigeon-houses, beehives, fish

ponds or breeding places of similar nature, in
case their owner has placed them or preserves
them with the intention to have them
permanently attached to the land, and forming
a permanent part of it; the animals in these
places are included

15
IMMOVABLE PROPERTY – Art. 415

Are fishponds and similar structures immovable

property?

16
IMMOVABLE PROPERTY – Art. 415

(7) Fertilizer actually used on a piece of land

17
IMMOVABLE PROPERTY – Art. 415

Are fertilizers considered immovable property?

18
IMMOVABLE PROPERTY – Art. 415

(8) Mines, quarries, and slag dumps, while the

matter thereof forms part of the bed, and
waters either running or stagnant

19
IMMOVABLE PROPERTY – Art. 415

Are mineral rocks immovable property?

20
IMMOVABLE PROPERTY – Art. 415

Are gold bars immovable property?

21
IMMOVABLE PROPERTY – Mines, ...
while it forms part of the bed or waters

• Extracted minerals are personal property

• Slag dump
• Waters distinguished from water

22
IMMOVABLE PROPERTY – Art. 415

(9) Docks and structures which, though

floating, are intended by their
nature and object to remain at a
fixed place on a river, lake or coast

23
IMMOVABLE PROPERTY – Art. 415

Are the docks at the Batangas Port immovable property?

24
IMMOVABLE PROPERTY – Docks, floating
structures in fixed place

• Are the floating houses in a Badjao

village considered immovable
property?

25
IMMOVABLE PROPERTY – Docks, floating
structures in fixed place

• Floating house, unless it moves from

place to place – consider as a vessel

26
IMMOVABLE PROPERTY – Art. 415

(10) Contracts for public works, and servitudes and

other real rights over immovable property

27
IMMOVABLE PROPERTY – Art. 415
Is the PIATCO contract to construct and operate the Manila
International Airport Terminal an immovable property?

28
Art. 415, par. 1

• Is a building of strong materials, like a rice-cleaning

machinery considered immovable?

• What happens if an immovable or real property is

mortgaged and subsequently registered under the
Chattel Mortgage Law?

29
Art. 415, par. 1

• A building of strong materials is immovable property. -

Leung Yee vs. Strong Machinery Co.

• Executing a chattel mortgage of immovables or real

property and subsequently registering that mortgage
under the Chattel Mortgage Law does not affect the
nature of the thing; it remains real property. – Leung Yee
vs. Strong Machinery Co.

30
Art. 415, par. 1

• What are the facts, issues, arguments and ruling in

the case of Leung Yee vs. Strong Machinery Co.

31
Art. 415, par. 1

32
IMMOVABLE PROPERTY -buildings
• Can a building be mortgaged
independently from the land?
• If a chattel mortgage, duly
registered, is made on a
building, subsequently a real
estate mortgage is made on the
land and the building, which
mortgage is preferred?
• Should a building that is
not owned by the
landowner be registered?
• Can the materials of a
building that will be
demolished be the
subject of a chattel
mortgage?
33
IMMOVABLE PROPERTY -buildings
• A building is immovable apart
from the land, and may be
mortgaged separately. –
Prudential Bank v. Panis
• If a chattel mortgage, duly
registered, is made on a
building, subsequently a real
estate mortgage is made on the
land and the building, the real
estate mortgage is preferred. -
Evangelista v Abad
• There is no compulsion to
register buildings that do not
belong to the owners of the
land because there is no such
registry. – Manalansan v
Manalang
• A building that will be
demolished may be the subject
to a chattel mortgage of the
materials thereof. – Manresa;
Bicerra et al. v Teneza
34
IMMOVABLE PROPERTY – Arts. 415 & 416 Civil
Code & the Chattel Mortgage Law

• Can the parties to a contract agree to treat personal

property as real property?

• Can the Register of Deeds refuse the recording of a

mortgage involving real property?

• Relate these questions to the case of Standard Oil Co. vs.

Jaranillo

35
IMMOVABLE PROPERTY – Arts. 415 & 416 Civil
Code & the Chattel Mortgage Law

• Parties have mistakenly treated personal property as real

property and executed chattel mortgage over them. The
Chattel Mortgage Law requires the registration of chattel
mortgage contracts to be effective.

• The Register of Deeds cannot refuse the registration of a

chattel mortgage contract even if it involves real property.
- Standard Oil Co. vs. Jaranillo

36
IMMOVABLE PROPERTY – Machinery, ... for the
industry or works

Is the sawmill placed by a tenant for sawing

logs into lumber considered immovable
property?

Relate this to the case of Davao Sawmill Co.

vs. Castillo

37
 IMMOVABLE PROPERTY – Machinery, ... intended by
the owner for the industry or works
• Machinery, receptacle, instruments or implements intended by
the owner of the tenement or works in a building or land to meet
the needs of the industry or works

Tenant placed a sawmill on the land. It remains personal property,

unless he agreed otherwise. – Davao Sawmill Co. v Castillo

Machinery intended for the industry is IMMOVABLE except when

placed by someone who is not the owner except when he has agreed
to leave it on the land after the contract or when he is the agent of the
owner. – Valdez v Central Altagracia

38
IMMOVABLE PROPERTY – Machinery, ... for the
industry or works

Why are additional machinery and equipment

installed by the owner considered covered by
a prior real estate mortgage?

Relate this to the case of Berkenkotter vs. Cu

Unjieng

39
IMMOVABLE PROPERTY – Machinery, ... intended by the
owner for the industry or works

• Machinery, receptacle, instruments or implements

intended by the owner of the tenement or works in a
building or land to meet the needs of the industry or
works

The incorporation of the additional machinery and equipment was permanent

in character. This made the machinery and equipment real property under Art.
415, (5). They are principal and essential elements of the sugar central.
Without them, the production of 150 million tons would not reach 250 million
tons; the central would be unable to function or carry on the industrial
purpose for which it was established. – Berkenkotter vs. Cu Unjieng

40
41
NO, because:

•They are not adhered to the soil.

•They are not attached in a fixed manner.
•They are not intended for an industry to be carried on the premises.

Board of Assessment Appeals, Q.C. v MERALCO

42
MERALCO

• Are oil storage tanks inside the MERALCO

compound real property?
• Is the MERALCO pipeline system real property?
• Are electric meters, transmission lines, electric
posts real property?

43
IMMOVABLE PROPERTY – Art. 415

What if the fish are temporarily outside the

pond?
Are fish taken from a fishpond considered
immovable property?

44
 IMMOVABLE PROPERTY – animal houses
placed by the owner for permanent
attachment, animals included

• Even if temporarily outside

• Except in criminal law – theft or robbery
• Except if not intended for permanent attachment

45
IMMOVABLE PROPERTY – real rights

• Give examples of real rights

46
IMMOVABLE PROPERTY – real rights

• Easement
• Antichresis
• Possessory retention
• Usufruct
• Lease if more than a year

47