FUNDAMENTALS

OF
REAL ESTATE MANAGEMENT

Real Estate Management

Saint Paul School of Professional Studies
GENERAL INSTRUCTIONS
(ALL SUBJECTS OF ENGR. RUTH R. CABANGANGAN)

I. Read very carefully the reading materials so you will be able to produce
the deliverables or output of the course or subject.

II. The attachments included are your main reading materials and
instructions or lectures needed in order to provide you knowledge and
skills in making the deliverable outputs.

III. The references cited are mentioned so you can do further reading.

IV. When you have difficulties and query on how to make the deliverables or
output you can contact the instructor:

1. Ask in group chat

2. By E-mail: ruth.cabangangan@gmail.com

3. Cellphone: 09063345022

Course Code: FUNDREM

Welcome!

This is your Fundamentals of Real Estate Management Course that will focus on the
fundamentals of property ownership. The focus will be on enriching your mastery of
utilizing task- based teaching where you will be assigned to do real-world tasks.

Timing and organising your study

This is a 3-unit subject, good for one (1) semester (July-November, 2020). Instructor
and students are required to meet via ZOOM every Saturday. One (1) hour shall be
allotted for discussion from 9AM-10AM, and two (2) hours to work on the required
activities.

Study skills

This learning is grounded upon outcome-based approach—the focus of which is on

enriching your knowledge and skills in the fundamentals of property ownership;
task-based - the activities reflect the expected daily readings; and asset-based
approach—looks at your deficient knowledge as strengths and opportunities to
develop rather than inadequacies to fill.
Essentially, you will be taking control of your learning environment. As a
consequence, you will need to consider performance issues related to time
management, goal setting, stress management, etc. Perhaps you will also need to
reacquaint yourself with things as planning, and using the Web as a learning
resource.
Your most significant considerations will be time and space; that is, the time you
dedicate to your learning and the environment in which you engage in that learning.
As you go along, the following study skills will be essentially useful:
Independent Learning. Since you will stay at home, your interaction with your
teacher is very limited. Although you can count on some family members or
whoever you are living with, the best person you can count on is yourself.
That’s why you need the following:

Motivation Reading some important laws, rules

and regulations.
Initiative Skills Metacognitive Skills
Time management
Organization and multi-tasking

If you want to know more about this, check this link

https://www.brightknowledge.org/study-skills/top-tips-for-independent-learning

Other excellent resources on the web that you can visit to help you be familiar on
how to handle issues on self-directed study or independent learning:
• https://www.how-to-study.com/
• https://www.ucc.vt.edu/stdysk/stdyhlp.html
• https://www.howtostudy.org/resources.php

Learning Outcomes
• At the end of the semester the student is expected to discuss the concepts,
laws, rules and regulations relating to real property ownership which
they can use as tools in resolving factual situations and issues in real
estate transactions.
Learning Plan:
Unit Learning Outcomes Topics Time Frame

Define the basic Concept of property and 2 Weeks

concepts and property ownership
nature of real
property
ownership, its Property relations under
2 Weeks
laws, rules and the Family Code
regulations; and
the rights and
limitations in Limitations upon the
owning real estate right of ownership 2 Weeks
in the Philippines;

Discuss the Modes of Acquiring 3 Weeks

different modes of Ownership
acquiring
ownership.

Enumerate the Torrens System 2 Weeks

processes in land
registration and
titling, and How to Read a Property 3 weeks
develop basic Survey
knowledge in
map/plan reading
and plotting.

Getting help
We understand that it’s a great adjustment shifting to the new
normal. That’s why, we need to be as cooperative as much as possible,
help each other in the pursuit of learning. If you have any concerns
regarding the subject or if you want to connect and collaborate with
your classmates, you may join this Facebook page and Messenger Chat
Group (FUNDREM 1st Sem, July 2020). You can post your concerns and
connect with the class and your teacher through the said platforms.
 You can contact your teacher through any of the following platforms:
Email : ruth.cabangangan@gmail.com
FB Account Name: Rhoan Frances
Mobile Number: 09063345022

HAPPY LEARNING, PAULINIAN!

Introduction

This course covers topics such as concept of ownership; rights and limitations
included in ownership; kinds of ownership; basic property relations under the
Family Code; Foreign ownership of property in the Philippines; modes of
acquiring title; basics in map/plan reading and plotting; and land registration
and administration.

UNIT 1: CONCEPT, NATURE, CLASSIFICATION OF PROPERTY AND OWNERSHIP, AND

LIMITATIONS UPON THE RIGHT OF OWNERSHIP

PROPERTY refers to things which are capable of satisfying human wants and needs
and are susceptible of appropriation.

Under Philippine law, specifically Article 414 of the New Civil Code, property is
classified into two: immovable or real property and movable or personal property.

IMMOVABLE PROPERTY

What are real properties according to the law?

Art. 415. The following are immovable property:

(1) Land, buildings, roads and constructions of all kinds adhered to the soil;

(2) Trees, plants, and growing fruits, while they are attached to the land or form an
integral part of an immovable;

(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;

(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;
(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;

(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;

(7) Fertilizer actually used on a piece of land;

(8) Mines, quarries, and slag dumps, while the matter thereof forms part of the bed,
and waters either running or stagnant;

(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;

(10) Contracts for public works, and servitudes and other real rights over immovable
property. (334a)

To further understand and better differentiate Real Property from a personal or

movable property, real property may be immovable by:

1. Immovable by nature or those which cannot be moved from one place such
as those mentioned in Nos. 1 (with respect to lands and roads) and 8 in Art.
415 of the Civil Code
2. Immovable by incorporation, or those which are attached to an immovable in
a fixed manner as to form an integral part thereof like buildings, walls or
fences, trees, statues, animal houses, it is placed in an immovable for the
utility it gives to the activity carried thereon, such as machinery installed in a
building to meet the needs of an industry in the building, and docks on a river
or those mentioned in Nos. 1 (except lands and roads), 2, 3 and 4 of Art 415.
3. Immovable by destination, or those which are placed in an immovable for the
use, exploitation or perfection of such immovable, such as those mentioned
in Nos. 4, 5, 6, 7 and 9 of Art. 415
4. Immovable by analogy, or those which are considered immovable by
operation of law because it is regarded as united to the property such as those
mentioned in No. 10 of Art. 415
Movable Property

PERSONAL PROPERTY

To distinguish a personal from real property, this test can be employed whether it is
personal:

1. By description if the object can be moved one place to another and this will
not cause injury to the immovable to which it may be attached;
2. By exclusion, if it is not included in the enumeration found in Art. 415 of the
Civil Code of the Philippines.
3. By provision of the law, if real property is considered as personalty by special
provision of the law
What are personal properties according to the law?

Art. 416. The following things are deemed to be personal property:

(1) Those movables susceptible of appropriation which are not included in the
preceding article;

(2) Real property which by any special provision of law is considered as personal
property;

(3) Forces of nature which are brought under control by science; and

(4) In general, all things which can be transported from place to place without
impairment of the real property to which they are fixed. (335a)

Art. 417. The following are also considered as personal property:

(1) Obligations and actions which have for their object movables or demandable
sums; and

(2) Shares of stock of agricultural, commercial and industrial entities, although they
may have real estate. (336a)
What are the other classification of personal property?

Art. 418 has further classified movables based on its capability to being used
repeatedly. It can further be classified accordingly:

1. By nature or as to their likelihood of being consumed when it is used

according to their nature as mentioned in Art. 418 of the New Civil Code:
2. By intention or as to their possibility of being substituted by another property
having the same kind or quality can be either be fungible or being replaceable
by an equal quality and quantity, either by the nature of the substitute or by
agreement of the parties. It is also non-fungibles, in opposite, are
irreplaceable because identical objects must be returned.

Classification of Properties

CLASSIFICATION OF PROPERTIES ACCORDING TO WHOM IT BELONGS

The New Civil Code expressly classified property according to ownership by this
article:

Article 419. Property is either of public dominion or of private ownership.

What are properties of public dominion?

Public dominion or property owned by the State (or its political subdivisions) in its
public or sovereign capacity and intended for public use and not for the use of the
State as a juridical person.

Article 420. The following things are property of public dominion:

Those intended for public use, such as roads, canals, rivers, torrents, ports and
bridges constructed by the State, banks, shores, roadsteads, and others of similar
character;

Those which belong to the State, without being for public use, and are intended for
some public service or for the development of the national wealth;

Art. 424. Property for public use, in the provinces, cities, and municipalities, consist
of the provincial roads, city streets, municipal streets, the squares, fountains, public
waters, promenades, and public works for public service paid for by said provinces,
cities, or municipalities.

What are the kinds of properties of public dominion?

1. Property intended for public use or which can be used by everybody and
others of similar character
2. Property which is not for public use but intended for public service or those
which can be used only by duly authorized persons, such as government
buildings and vehicles
 3. Property intended for the development of national wealth such as minerals,
coal, oil, forest, and other natural resources
Further, under the 1987 Constitution (Section 3 Article XII) Lands of the public
domain are classified into:

Section 3. Lands of the public domain are classified into agricultural, forest or timber,
mineral lands and national parks. Agricultural lands of the public domain may be
further classified by law according to the uses to which they may be devoted.
Alienable lands of the public domain shall be limited to agricultural lands. x x x

1. Agricultural
2. Forest or timber
3. Mineral lands
4. National parks
Examples of public dominion: 1987 Constitution: agricultural, forest, timber,
national parks, mineral lands, water, minerals, oils, coal, petroleum, sources of
potential energy, fisheries, wildlife, flora, fauna, roads, canals, rivers, banks, shores
and others similar in character. Agricultural land is the only alienable and disposable
land of the government.

What are the characteristics of properties of public domain?

1. It is beyond the commerce of man

2. It cannot be acquired by prescription
3. It cannot be registered under the Land Registration Law and be the subject of
a Torrens Title
4. It cannot be levied upon by execution nor can be attached.
What are properties of private ownership?

Private ownership or property owned by the State in its private capacity, and is
known as patrimonial property. It may also be owned by private persons, either
individually or collectively.

Here are the provisions of the law which point out to this classification:

Article 421. All other property of the State, which is not of the character stated in
the preceding article, is patrimonial property.

Article 422. Property of public dominion, when no longer intended for public use or
for public service, shall form part of the patrimonial property of the State.

Art. 423. The property of provinces, cities, and municipalities is divided into property
for public use and patrimonial property. (343)
Article 425. Property of private ownership, besides the patrimonial property of the
State, provinces, cities, and municipalities, consists of all property belonging to
private persons, either individually or collectively.

What are the differences between public domain and patrimonial properties?

▪ Public dominion cannot be acquired by prescription, even by city or

municipality.
▪ Patrimonial property of the State may be the subject of acquisition through
prescription.
▪ Public lands become patrimonial property upon express government
manifestation that the property is already patrimonial and declaration that
these are already alienable and disposable.
▪ And only when the property has become patrimonial can the prescriptive
period for the acquisition of property of the public domain begin to run.
▪ 113 of the Civil Code: All things that are within the commerce of man are
susceptible to prescription, and that the property of the State or any of its
subdivisions not patrimonial in character shall not be the object of
prescription.
What lands may not be declared open to disposition or concession?

▪ Those which have been reserved for public or quasi-public uses;

▪ Those which have been appropriated by the government;
▪ Those which have become private property like the friar lands and the
ancestral lands under the IPRA Law
▪ The Revised Forestry code also provides that no land of the public domain
18% in slope or over shall be classified as alienable and disposable;
▪ Submerged lands like the waters (sea or bay) above them are part of the
inalienable natural resources.
What are the classification of lands under the Constitution?

▪ Classification under 1935 Constitution- Agricultural, forest or timber

▪ Classification under 1973 Constitution- Agricultural, industrial, commercial,
residential, resettlement, mineral, timber and mineral lands
▪ Classification under 1987 Constitution- Agricultural, forest, timber and
national parks
▪ All others under the 1987 Constitution are patrimonial property
▪ No public land can be acquired except by a grant from the State
Who are natural and natural born citizens?

Natural citizens of the Philippines are:

▪ Citizens of the Philippines at the time of the adoption of the 1987 Constitution
▪ Those whose fathers or mothers are citizens of the Philippines (any parent)
▪ Those born before January 17, 1973, of Filipino mothers, who elect Philippine
citizenship upon reaching the age of majority (18 years old) – born anywhere
in the world
Natural born citizens are those:

▪ Born in the Philippines

▪ Those born of Filipino mothers and non-Filipino father who elect Philippine
citizenship upon reaching the age of majority
▪ Naturalized under Naturalization Law
▪ Citizens of the Philippines who marry aliens but have not renounced their Phil.
Citizenship
▪ Those who acquired dual citizenship
▪ Those who acquired derivative (origin or descent) citizenship
▪ The unmarried child, legitimate or not or adopted, below 18 years of age, of
those who re-acquire Philippine citizenship upon effectivity of this Act shall
be deemed citizens of the Philippines.
▪ Section 7 of Art. XII of 1987 Constitution states that a natural born citizen of
the Philippines who has lost his Phil. citizenship may be a transferee of private
lands subject to limitations provided by law
Rules regarding former natural born Filipino citizens acquiring lands in the
Philippines

Mode of acquisition may be through both voluntary deeds (sale or donation) and
involuntary deeds (foreclosure, execution, tax delinquency sale)
Area allowed (maximum)

1. If the purpose is for residence:

▪ 1,000 square meters of urban land
▪ 1 hectare of rural land
2.If the purpose is for business

(refers to the use of land primarily, directly and actually in the conduct of business
or commercial activities in the broad areas of agriculture, industry and services,
including the lease of land but excluding the buying and selling thereof)

▪ 5,000 square meters of urban land

▪ 3 hectares of rural land
A transferee who acquired urban or rural land for residential purpose while still a
Filipino citizen may acquire additional urban or rural land for residential purpose
which, when added to that already owned shall not exceed the maximum area
allowed by law. It shall also apply to a transferee who already owns urban or rural
land for business purpose while still a Filipino citizen.

A transferee who has already acquired urban land for residential purpose shall be
disqualified to acquire rural land for residential purpose and vice versa.

A transferee of residential land under BP 185 may still avail of the right to acquire
land for business purpose under RA 8179.

Can aliens acquire lands in the Philippines?

General rule: Aliens are not qualified to acquire land in the Philippines.

Exceptions:

▪ Aliens may acquire private land by inheritance

▪ PD 713 (May 27, 1975) Allows Americans who were formerly Filipino citizens,
Americans who became permanent residents of the Philippines and
Americans who have resided in the Philippines continuously for at least 20
years and are in good faith had acquired private residential lands for family
dwelling purposes in the Philippines prior to July 3, 1974 to continue holding
such lands and transfer ownership over the same to qualified persons or
entities.
▪ BP 8179 (March 16, 1982)Former natural born citizens of the Philippines who
has lost his citizenship may be transferee of a private land up to a maximum
area of 1,000sqm in case of urban land and 1 hectare for rural to be used as
his residence; In case of married couples, only one may avail and if both the
total area should not exceed the maximum herein fixed
▪ RA 8179 (March 28, 1996) 5,000sqm urban land/ 3 hectares rural land for
business or other purposes
 ▪ RA 9225 (August 29, 2003) Aliens may re-acquire Filipino citizenship

Ownership

What is land ownership?

Land ownership is the right and interest which a person has in land to the exclusion
of others. It is the independent right of exclusive enjoyment and control over land
for the purpose of deriving there from all advantages required by the reasonable
needs of the holder of the right and the promotion of the general welfare but subject
to the restrictions imposed by law and the rights of others

What are the kinds of ownership?

1. Full ownership refers to all the rights of the owner. This may include
the right to possess, use and enjoy the property, to the fruits,
accessories, to consume the thing by its use, dispose or alienate or
vindicate and recover. The law has given the owner these right by virtue
of this provision:
Full ownership may enjoy these bundle of rights as elements or attributes of
ownership:

a. Right to Possess (jus possedendi)

b. Right to Use and Enjoy (jus utendi)

c. Right to Receive the Fruits & Accessories (jus fruendi)

d. Right to Abuse and Consume (jus abutendi)

e. Right to Dispose or Alienate (jus disponendi)

f. Right to Recover Possession and/or Ownership (jus vindicandi)

g. Right to Construct any work or make plantation or excavation

h. Right to have ownership of the Hidden treasures found in the property;

i. Right to Exclude others; and

j. Right to Fence the property.

2. Naked ownership refers to ownership where the right to use and the fruits
has been denied
3. Sole ownership refers to ownership which is vested to only one person.
4. Co-ownership refers to ownership rights to own a whole property together
with the others and at the same time owner of an aliquot part thereof. Co-
ownership defined by law as:
Art. 484. There is co-ownership whenever the ownership of an undivided thing or
right belongs to different persons.x x x

What are the characteristics of ownership?

1. It is a general right over all utilities of a thing subject to the limitations of real
rights of others.
2. It is an independent right since it can exist without the necessity of any other
right.
3. It is an abstract right because it can exist distinct and independent of its
constituent parts.
4. It is an exclusive right for there can only be one ownership but there may be
two or more owners.
5. It is generally a perpetual right and is not usually limited by time and may last
as long as the thing exists.
6. It is an elastic right since the power included therein may be reduced in
quantity or quality without affecting the nature of the dominion.
What are the types of estates?

1. Freehold Estate- which indicates title of ownership Fee simple-absolute title

2. Fee tail-one designed to pass title from the grantee to his heirs/ the intent of
the grantor being to keep the property in the grantee’s line of issue
3. Life Estate-one held for the duration of the life of the grantee
4. Less-than-freehold estate-a right short of title
5. Estate for years- in the nature of lease
6. Tenancy from period to period
7. Tenancy at will
What are the essential requisites of tenancy relationship?

1. The subject matter is agricultural land

2. The parties are the landowner and the tenant
3. There is consent
4. The purpose is agricultural production
5. There is personal cultivation by the tenant
6. There is sharing of harvest between the parties
CO-OWNERSHIP

Art. 484. There is co-ownership whenever the ownership of an undivided thing or

right belongs to different persons. In default of contracts, or of special provisions,
co-ownership shall be governed by the provisions of this Title. (392)

What are the rights of co-owners?

1. There is no co-ownership when the different portions owned by different people

are already concretely determined and separately identifiable, even if not yet
technically described.

Art. 493. Each co-owner shall have the full ownership of his part and of the fruits
and benefits pertaining thereto, and he may therefore alienate, assign or mortgage
it, and even substitute another person in its enjoyment, except when personal rights
are involved. But the effect of the alienation or the mortgage, with respect to the
co-owners, shall be limited to the portion which may be allotted to him in the
division upon the termination of the co-ownership. (399)

2. A co-owner may sell his right over an undivided portion to the extent owned by
him. If the co-owner sells the whole property as his, the sale will affect only his share
but not those of the co-owners who did not consent to the sale. No co-owner is
obliged to remain in the co-ownership and the co-owner may demand at anytime
partition of the thing owned in common.

Art. 1612. If several persons, jointly and in the same contract, should sell an
undivided immovable with a right of repurchase, none of them may exercise this right
for more than his respective share. The same rule shall apply if the person who sold
an immovable alone has left several heirs, in which case each of the latter may only
redeem the part which he may have acquired. (1514)

Art. 1514. A person to whom a document of title has been transferred, but not
negotiated, acquires thereby, as against the transferor, the title to the goods, subject
to the terms of any agreement with the transferor. If the document is non-
negotiable, such person also acquires the right to notify the bailee who issued the
document of the transfer thereof, and thereby to acquire the direct obligation of such
bailee to hold possession of the goods for him according to the terms of the
document. Prior to the notification to such bailee by the transferor or transferee of a
non-negotiable document of title, the title of the transferee to the goods and the
right to acquire the obligation of such bailee may be defeated by the levy of an
attachment of execution upon the goods by a creditor of the transferor, or by a
notification to such bailee by the transferor or a subsequent purchaser from the
transfer of a subsequent sale of the goods by the transferor. (n)
Art. 1884. The agent is bound by his acceptance to carry out the agency, and is liable
for the damages which, through his non-performance, the principal may suffer. He
must also finish the business already begun on the death of the principal, should
delay entail any danger. (1718)

3. The right of repurchase may be exercised by a co-owner to the extent of his share
alone. Stated in the preceding articles are the right of redemption/pre-emption.

Art. 1623. The right of legal pre-emption or redemption shall not be exercised except
within thirty days from the notice in writing by the prospective vendor, or by the
vendor, as the case may be. The deed of sale shall not be recorded in the Registry of
Property, unless accompanied by an affidavit of the vendor that he has given written
notice thereof to all possible redemptioners. The right of redemption of co-owners
excludes that of adjoining owners. (1524a)

Property Relations Under the Family Code

In the Family Code Property Relations or also referred to as Property Regimes are
divided into four types:

1. Complete Separation of Property

2. Property Regime of Unions Without Marriage
3. Conjugal Partnership of Gains
4. System of Absolute Community

While these four types of property relation may not apply to you, it will play a
significant role once you get married. The property relations have to do with the
law that applies to properties and other valuable things you accumulate over time.
This includes your cars, jewelries and real estate. There are some details about
property relation that you need to know whether you are the legal wife of the
other woman or man.

The Family Code of the Philippines took effect on August 3, 1988. Since that day, the
Absolute Community of Property will govern married couples. However, this
property regime will only apply if they do not agree on another regime before
getting married. The agreement before the weeding is referred to as the Marriage
Settlements. Before August 3, 1988, the couples who got married without preparing
marriage settlements beforehand, are covered by the Conjugal Partnership of Gains
regime.

If the husband and wife agreed to Complete Separation of Property in their marriage
settlements executed before the wedding, this Property Regime cannot be executed
after the wedding.
On the other hand, the Property Regime of Unions Without Marriage is executed to
two kinds of unmarried couples living together:
1. Those who are not legally married because of some legal impediment or
incapacity of either or both of them, and

2. Those who are legally capable of marriage.

While both of these property relations are governed by the same property regime,
each of them has different rules. Under the general law, a man is only allowed to
marry one woman. If the man is already married to one and the marriage is still in
effect, the other woman cannot be married. However, just because the other
woman cannot be legally married does not necessarily mean that they do not have
any right on the properties that they have accumulated together. According to the
law, there are legal rights of the other woman that need to be taken into
consideration.

Complete Separation of Property

This means each one of the spouses owns his or her exclusive properties, from both
present and future property, including the ones they already own prior to getting
married. If couples choose this property relation or regime, the means for
supporting their family is through the use of common fund. The contribution of each
part will depend on their income capacity.

Property Regime of Unions Without Marriage

It applies to couples who are capable of getting married but due to some reason did
not get married because the property relations resemble that in CPG. This means
their possessions prior to their marriage remain theirs, but the properties they
produce or acquire during their marriage will be shared equally by both couples.

Conjugal Partnership of Gains

Conjugal Partnership of Gains (CPG) is similar to Absolute Community of Property
except that there is a difference in how the properties are acquired by each party
prior to getting married. The properties produced during the marriage will go to the
common fund or the Conjugal Property where both spouses have equal rights.

Absolute Community of Property

This property regime pools the property of the husband and the wife together into
one common fund. This will include the properties owned prior to the marriage.
Both parties also have equal rights to the common fund. When married couples
decide to go separate says or dissolve their marriage, the property should be equally
divided.

What is diverse co-ownership?

Diverse co-ownership is when benefits are assorted to different kinds such as to

different owners or shareholders in a corporation.
What are surface, subsurface and air rights?

1. Land, in its legal significance, extends from the surface downwards to the
center of the earth and extends upwards indefinitely to the skies
2. The surface and subsurface rights of an owner entitle him to construct
thereon any works or make any plantations and excavations without
detriment to servitudes and special laws.
3. Air right is the right of an owner to use and control the air space over his land
subject to the requirements of navigation, laws or contract.

What is the right to accession?

1. The ownership of property gives the right by accession to everything which is

produced thereby, or which is incorporate or attached thereto whether
naturally or artificially.
2. With respect to the produce of the property, to the owner belongs the natural
fruits (spontaneous products of the soil), industrial fruits (those produced by
land by cultivation or labor) and civil fruits (the rental income of buildings and
lands)
3. With respect to immovable properties, the owners of lands adjoining the
banks of rivers belongs the accretion that they gradually receive from the
effects of the current of the water. The owners of estates adjoining ponds,
lagoons do not acquire the land left fry by the natural decrease of the waters
or those lost in extraordinary floods.
4. Whenever a river, changing its course by natural causes, opens a new bed
through a private estate, this bed shall become of public dominion.
What are the kinds of accession?

1. ACCESSION DISCRETA or the rights pertaining to the owner of a thing over

everything which is produced thereby such as natural, industrial and civil fruits
2. ACCESSION CONTINUA or the right pertaining to the owner of a thing over
everything which is incorporated or attached thereto either naturally or
artificially
3. ACCESSION INDUSTRIAL or which takes place in case of building, planting or
sowing
4. ACCESSION NATURAL which may be through:
▪ ALLUVION or the ACCRETION which lands adjoining the banks of rivers
gradually receive from the effects of the current of the river
▪ AVULSION or the accretion which takes place whenever the current of a river,
creek or torrent segregates from an estate on its bank a known portion of a
land and transfers it to another estate
What are the rules on hidden treasure?

Art. 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
of the arts, the State may acquire them at their just price, which shall be divided in
conformity with the rule stated. (351a)

Art. 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. (352)

What is the difference between possession and ownership?

Possession and ownership- Possession may signify outward evidence of title but it is
not necessarily the title itself. Ownership refers to the evidence of right over the
property. One may possess a property but not own it like in lease or in the case of
informal settlers.

Ownership by possession- it is meant as the exercise either by the same person who
holds and enjoys the property or material possession. It may also be in the name of
the other like symbolic possession which is acquired by the execution of a public
instrument

What is the difference between possession and occupation?

The law requires both possession and occupation for an applicant for an applicant
or an original registration.

Possession is the holding of a thing or the enjoyment of a right; it should also include
the idea of occupation. To constitute the foundation of prescriptive right under a
claim of title, possession must be adverse of in hostility to the true owner.
Occupation can be held by another in his name – constructive possession.

What is the rule in case of conflict of possession?

In case of conflict or dispute regarding possession, the rule of preference is as

follows:

▪ The present possessor shall be preferred;

▪ If there are two possessors, the one longer in possession;
▪ If the dates of the possession are the same, the one who presents a title;
 ▪ If both possessors have titles, the court shall determine the rightful possessor
and owner of the land.

Limitations upon the Right of Ownership

Limitations upon the right of ownership:

▪ General limitation imposed by the State in the exercise of its inherent powers.
▪ Limitations imposed by specific provisions of the law;
▪ Limitations imposed by the transferor of the property;
▪ Limitations imposed by the owner himself; and
▪ Limitations inherent in the property.
A. GENERAL LIMITATIONS imposed by the State for its benefit is through its three
inherent powers:

1. Police power refers to the right of the State to enact laws or regulations in
relation to persons and property as may promote public health, public morals,
public safety, and the general welfare and convenience of the people. It is also
imposed towards one’s personal liberty or property to promote the general
welfare. It may be through an imposition of restraint upon liberty or property
for the purpose of promoting the common good.
2. Eminent domain refers to the power of the State to take private property for
public use upon payment of just compensation. It is expressly provided in the
New Civil Code that:
Art. 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)

3. Taxation refers to the power of the State to impose charge or burden upon
persons, property, or property rights, for the use and support of the
government and to enable it to discharge its appropriate functions.
B. LIMITATION IMPOSED BY LAW such as legal easement, zoning regulations,
building code, rent control, urban and agrarian reform, subdivision regulations,
escheat.

C. LIMITATION IMPOSED BY THE OWNER HIMSELF such as voluntary servitudes,

mortgages, pledges, lease and deed of restrictions.

D. LIMITATION IMPOSED BY THE TRANSFEROR OF THE PROPERTY such as donation,

usufruct.

E. INHERENT LIMITATION example Co-ownership.

UNIT 2: MODES OF ACQUIRING OWNERSHIP

Modes of Acquiring Ownership

What are the modes of acquiring ownership?

1. Public Grant is the administrative method of acquiring public lands, such as

homestead settlement, free patent and sales patent.
2. Private Grant is the voluntary transfer or conveyance of privately owned
property by an owner, such as by sale or donation. It is the transfer of title to
land by the owner himself or his duly authorized representative to another by
mutual consent. The Consent of the grantor is an essential element.
3. Voluntary Transfer of Private Grant is the process by which a land is
transferred with the consent and conformity of the owner such as by sale or
donation.
4. Involuntary Alienation or Involuntary Grant is the process by which a land is
taken against the consent of the owner, such as expropriation proceedings,
execution of judgment, tax sales and foreclosure. This method of transfer
does not require the consent or cooperation of the owner of the land, since
this is usually carried out against his will.
5. Descent or Devise (Descent) is acquired by virtue of inheritance, which
requires a degree of relationship. (Devised) In devise, succession need not be
in favor of a relative. Title to the property is transferred by way of will
executed by the Testator. Title by descent may be acquired by virtue of
hereditary succession to the estate of a deceased owner. To be an heir, it
requires certain degree or relationship with the decedent. In the case of
devise, however, succession need not be in favor of a relative. Even a stranger
may acquire title by devise if appropriate disposition has been made in his
favor by the testator in the latter’s will.
6. Reclamation is the filling of submerged land by deliberate act of the
Government. In the Philippines, there exists no such grant, express or implied,
to private landowners. It is only the government that can assert title to
reclaimed land.However,the government may declare it property of the
adjoining owners and as an increment thereto only when it is no longer
necessary for public use.
7. Accretion is the process by which a riparian land gradually and imperceptively
receives addition made by the water to which the land is contiguous.
However, this law cannot be invoked for application to cases where the
accretion is caused by action of the bay which is a part of the sea, since such
alluvial formation along the seashore is part of the public domain and,
therefore, not open to acquisition by adverse possession by private persons.
Art. 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)
 8. Prescription is when one acquires ownership and other real rights through the
lapse of time in the manner and under the conditions laid down by law. It is a
mode of acquisition of title through continuous, open, adverse possession in
the concept of an owner for the period fixed by law.
What is the application of prescription concerning properties of public dominion and
patrimonial property?

1. Public dominion cannot be acquired by prescription, even by city or

municipality
2. Patrimonial property of the State may be the subject of acquisition through
prescription
3. Public lands become patrimonial property upon express government
manifestation that the property is already patrimonial and declaration that
these are already alienable and disposable.
4. And only when the property has become patrimonial can the prescriptive
period for the acquisition of property of the public domain begin to run.

Relevant Terms and Concepts in Ownership

A. ACCION INTERDICTAL-is a summary action to recovery physical or material

possession only. It consists of the summary actions of Forcible Entry and Unlawful
Detainer.

B. Forcible Entry -is a summary action to recover physical possession of real property
when a person originally in possession thereof is deprived by: force, intimidation,
strategy, threat, and stealth.

C. Unlawful Detainer -is a kind of action that must be brought when possession is
being unlawfully withheld after the expiration or termination of the right to hold
possession, by virtue of any contract whether express or implied.

D. ACCION PUBLICIANA -is an ordinary civil proceeding to recover the better right of
possession, except in cases of forcible entry and unlawful detainer. What is involved
is not possession de facto but possession de jure.

E. ACCION REINVINDICATORIA -is an action to recover real property based on

ownership. Here, the object is the recovery of the dominion over the property as
owner.

F. CAVEAT EMPTOR (BUYER BEWARE)- requires the purchaser to be aware of the

supposed title of the vendor and one who buys without checking the vendor’s title
takes all the risks and losses consequent to such failure. The actual possession by
people other than the vendor should, at least, put the purchaser upon inquiry. Site
identification and survey are a must also. An action for reconveyance is a legal and
equitable remedy granted to the rightful owner of land which has been wrongfully
or erroneously registered in the name of another for the purpose of compelling the
latter to transfer or convey the land to him.

G. DECREE OF REGISTRATION- Issued by the administrator of LRA upon order of the

court. It shall bind the land and quiet title thereto which is the purpose of Torrens
System. Land becomes registered only upon transcription of the decree in the
original registration book by the Register of Deeds and not on the date of issuance
of the decree. Certificate of title becomes indefeasible after one year from issuance
of the decree.

H. DOCTRINE OF SELF-HELP- 429. The owner or lawful possessor of a thing has the
right to exclude any person from the enjoyment and disposal thereof. For this
purpose he may use such force as may be reasonable necessary to repel or prevent
an actual or threatened unlawful physical invasion or usurpation of his property.

I. ESTATE-an Estate refers to the totality of the assets owned by a person which
include real and personal properties and the interest thereof.

J. PERSONAL ACTION-are those actions filed for the recovery of personal

properties,i.e. replevin.

K. PERSONAL RIGHT-refers to the power belonging to one person to demand from

another the fulfillment of a prestation or object to give, to do, or not to do.

L. POSSESSION-the holding of a thing or the enjoyment of a right.

M. REAL ACTION-are those actions filed for the recovery of real properties, i.e.
accion interdictal; accion publiciana; and accion reinvindicatoria.

N. REAL RIGHT-is one that confers upon the holder an autonomous power to derive
directly from an appropriate property/ thing certain economic advantages,
independently of whoever should be the possessor of a property/ thing.

O. REGALIAN DOCTRINE-all lands of whatever classification and other natural

resources not otherwise appearing to be clearly within private ownership belong to
the State. It also means that is the State reserved the full ownership of all natural
resources or natural wealth that may be found in the bowels of the earth.

P. RES NULLIUS-Everything on earth must have an owner. Res Nullius is a Latin term
that means things (res) without and owner (nullius). Since everything must have an
owner, if there are no private owners or claimants, then that particular property is
presumed to be owned by the State. Likewise, when a person dies without any heir,
then the State succeeds to the estate of the deceased.

Q. RIPARIAN OWNER-is the owner of the property adjoining or abutting the bank of
a river.

R. SOLUTIO INDEBITI-means that no person shall enrich himself at the expense of

another.
S. STEWARSHIP PRINCIPLE OF PROPERTY OWNERSHIP- provides that the property
owners are bound to use or utilize their lands in a manner that will promote welfare
and benefits not only for themselves but also for the State. 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 interest, thus the State may regulate
or control land ownership.

T. WRIT OF DEMOLITION- If the writ of possession issued in a land registration

proceeding implies the delivery of possession of the land to the successful litigant
therein, a writ of demolition must, likewise, issue, especially considering that the
latter writ is but compliment of the former which, without said writ of demolition,
writ of possession would be ineffective. Demolition is upon special order of the
court.

U. WRIT OF POSSESSION- Employed to enforce a judgment to recover the possession

of land. It commands the sheriff to enter the land and give possession of it to the
person entitled under judgment.

Usufruct

The law expressly provides that a usufruct is:

Art. 562. Usufruct gives a right to enjoy the property of another with the obligation
of preserving its form and substance, unless the title constituting it or the law
otherwise provides. (467)

*Usufruct is a real right by virtue of which a person is given the right to enjoy the
property of another with the obligation of preserving its form and substance, unless
the title constituting it or the law provides otherwise.

What are the requisites of usufruct?

1. Essential requisites are those that are – the right to enjoy the property of
another; and
2. Accidental – the obligation of preserving the form and substance of such
property.
What is abnormal usufruct?

Abnormal usufruct involves properties which must be consumed or expended or

else, it would be useless to the usufructuary. This is an exception to the rule that the
usufruct must preserve the form and substance of the usufruct. Thisrefers to that
where the usufructuary does not have any obligation to preserve the form and
substance of the property which is the object of the usufruct. The law has laid down
the rules for abnormal usufructs in the following articles:
Art. 573. Whenever the usufruct includes things which, without being consumed,
gradually deteriorate through wear and tear, the usufructuary shall have the right
to make use thereof in accordance with the purpose for which they are intended,
and shall not be obliged to return them at the termination of the usufruct except in
their condition at that time; but he shall be obliged to indemnify the owner for any
deterioration they may have suffered by reason of his fraud or negligence. (481)

Art. 574. Whenever the usufruct includes things which cannot be used without being
consumed, the usufructuary shall have the right to make use of them under the
obligation of paying their appraised value at the termination of the usufruct, if they
were appraised when delivered. In case they were not appraised, he shall have the
right to return at the same quantity and quality, or pay their current price at the
time the usufruct ceases. (482)

What is caucionjuratoria?

The caucionjuratoria refers to the usufructuary, which files a verified petition in

court asking for the delivery of the house and furniture necessary for himself and his
family without filing any bond or security. This may also apply to instruments or tools
necessary for an industry or vocation in which the usufructuary is engaged. The
usufructuary shall take care of the property/ things given in usufruct as good father
of a family. This case is contemplated in this article:

Art. 587. If the usufructuary who has not given security claims, by virtue of a promise
under oath, the delivery of the furniture necessary for his use, and that he and his
family be allowed to live in a house included in the usufruct, the court may grant this
petition, after due consideration of the facts of the case.The same rule shall be
observed with respect to implements, tools and other movable property necessary
for an industry or vocation in which he is engaged.If the owner does not wish that
certain articles be sold because of their artistic worth or because they have a
sentimental value, he may demand their delivery to him upon his giving security for
the payment of the legal interest on their appraised value. (495)

Easement

What is easement or servitude?

An easement is a real right constituted on another’s property which must be

corporeal and immovable and the owner of such will be abstained from doing or
allowing another person to do something on his property for another thing or
person’s benefit. The right may be to use the land’s surface or the air space above
it. It is also called a non-possessory interest in real property because they give the
easement holder the right to use the property but not to possess it.
The law define easement as:

Art. 613. An easement or servitude is an encumbrance imposed upon an immovable

for the benefit of another immovable belonging to a different owner. x xx

Who are the parties in an easement?

The law laid down the two parties in an easement:

Art. 613.Xxx The immovable in favor of which the easement is established is called
the dominant estate; that which is subject thereto, the servient estate. (530)

What are the modes of acquiring easements?

Art. 615. Easements may be continuous or discontinuous, apparent or non-

apparent. Continuous easements are those the use of which is or may be incessant,
without the intervention of any act of man.

Discontinuous easements are those which are used at intervals and depend upon
the acts of man.

Apparent easements are those which are made known and are continually kept in
view by external signs that reveal the use and enjoyment of the same.

Non-apparent easements are those which show no external indication of their

existence. (532)

1. Appurtenant easement- allows the owner of a parcel of land to use the land
next to it.
2. Easement by necessity- owners of land have the right to enter and leave their
property, to prevent them from land locking and make their property useless.
3. Easement by prescription- the claimant uses another’s land for a period of
time as defined by state of law and usually requires that the use is
uninterrupted, continuous, adverse without the owner’s consent, visible,
open and notorious.

Prescription

What is prescription?

Prescription is the loss or acquisition of a right through lapse of time. The law
defined it by the following article as:

Art. 1106. By prescription, one acquires ownership and other real rights through the
lapse of time in the manner and under the conditions laid down by law. In the same
way, rights and conditions are lost by prescription. (1930a)
What are the types of prescription?

1. Acquisitive prescription is when one acquires ownership and other real rights
through the lapse of time in the manner and under the conditions laid down by law.
It is also known as adverse possession. It must be enough that the possession should
be in the concept of an owner, public, peaceful, uninterrupted and adverse. Adverse
possession has two kinds namely:

▪ Ordinary Acquisitive Prescription which requires possession of things in good

faith and with just title for the time fixed by law which is 10 years.
▪ Extraordinary Acquisitive Prescription which is the acquisition of ownership
and other real rights without the need of title or of good faith or any other
condition and would prescribe in 30 years.
The aforementioned discussion is supported by these provisions:

Art. 1117. Acquisitive prescription of dominion and other real rights may be ordinary
or extraordinary. Ordinary acquisitive prescription requires possession of things in
good faith and with just title for the time fixed by law. (1940a)

Art. 1118. Possession has to be in the concept of an owner, public, peaceful and
uninterrupted. (1941)

2. Extinctive prescription is when rights and actions are lost through the lapse of
time in the manner and under the conditions laid down by law. It is also known as
liberatory prescription. A person’s uninterrupted adverse possession of patrimonial
property for at least 30 years, regardless of good faith or just title, ripens into
ownership pursuant to Art. 1137 of the Civil Code. The period begins upon the
declaration of the government that the subject land is no longer intended for public
service. Without such express declaration, the property, even if classified as
alienable or disposable, remains property of public dominion, pursuant to Art.
420[2] of the Civil Code.

What is the difference between prescription and laches?

1. Prescription – one acquires ownership and other real rights through the lapse
of time in the manner and under the action laid down by law; it is at least 30-
year uninterrupted use of alienable property of the government reckon from
the predecessor-in-interest. It is sometimes called adverse possession.
Prescription is concerned with the fact of delay. It is a matter of time,
statutory, applies at law and is based on a fixed time
2. Laches – the failure or neglect, for an unreasonable and unexplained length
of time, to do that which by exercising due diligence could or should have
been done earlier; it is negligence or omission to assert a right within a
reasonable time, warranting a presumption that the party entitled to assert it
either has abandoned it or declined to assert it. Delay in asserting the
complainant’s rights. Laches is concerned with the effect of delay. Laches is
principally a question of inequity of permitting a claim to be enforced, this
 inequity being founded on some change in the condition of the property of
the relation of the parties, apply in equity are not based on fixed time.

Succession

The process by which property transfers from a decedent to a qualified person is

governed by the Philippine Civil Law on Succession. The process of succession may
be further classified into three distinct classes. In the order of what takes priority
over the other, these are: compulsory succession, testamentary succession and
intestate succession.

Compulsory succession
By the mandate of compulsory succession, the deceased person is obligated to
leave behind a certain portion of his or her estate to specified relatives at the
moment of death.

Testamentary succession
Testamentary succession actually involves three important steps. These are, in
chronological order, the probate of the will, its interpretation and, finally, its
execution. We have covered these steps in previous articles.
As pointed out, in drafting a will, the testator should keep in mind that there should
be no exclusion or much less reduction of the share of compulsory heirs. Secondly,
its provisions should not go against public policy nor a testimonial disposition
amounts to a crime. Any provision found to be contrary to law or public policy shall
be deemed as not written in the will.

Legal or intestate succession

In legal or intestate succession, the law deals with the remaining portion of the
estate undisposed by compulsory succession and undistributed by will. Under this
mode of succession, the concept of compulsory succession is mirrored. Those who
are deemed compulsory heirs will once again receive their corresponding share of
the remainder of the estate. This final process finally disposes of the entirety of the
estate and ends the process of succession.

The law that governs the issues on inheritance is the New Civil Code of the
Philippines (NCC), not the Family Code..

“Testate or testamentary succession” refers to situations where the person dies

leaving a last will. The person who executes a last will is called the “testator.”

The share in the inheritance is called “legitime.” The NCC provides for compulsory
heirs” or certain people to whom the testator is obligated to give their legitimes.

In computing the legitimes, the remaining portion of the estate is called the “free”
portion. The testator can give this portion to anyone.

“Legal or intestate succession” refers to situations where the person died without a
last will; the share in the inheritance is called “intestate share.”
 “Extrajudicial settlement of estate” is a voluntary agreement among the heirs
partitioning the estate (free of debts), executed before a notary public, and
published once a week for three weeks in a newspaper of general circulation.

A sole heir claiming the whole estate can file an“Affidavit of adjudication by sole
heir” with the Register of Deeds (if real property is involved) or with the BIR.

Under the Civil Code of the Philippines, compulsory heirs include the surviving
spouse and the children whether legitimate or illegitimate. When we speak of
intestate succession, it is understood that the deceased or decedent left no
will upon his/her death.
In intestate succession, the estate of the deceased may be partitioned or subdivided
either by:
1) Extrajudicial Settlement of Estate- Under this scheme the decedent do not have
unpaid creditors and minor children and that all the heirs are in harmony as to the
manner in which the property is to be subdivided or partitioned. And without going
to the court, the heirs agreed amongst them to adjudicate the estate by means of
instruments known “Extrajudicial Settlement of Estate” duly signed and notarized
and have it published in the newspaper of general circulation for at least three (3)
consecutive weeks. And of course to pay the required estate tax and compliance of
procedure and administrative matters with the concerned government agencies.
2) Judicial Settlement of Estate- If the deceased left no will but there are creditors
or claimants or an heir is minor or suffering from incapacity to act and/or the heirs
cannot agree amongst themselves in the manner or partition or distribution of the
estate, the settlement of estate shall be by means of Judicial Settlement. This means
that the heirs or creditor(s) concerned have to file a petition in the Court of Law for
the settlement of estate.
Unless there is a third party claimant, this scheme should be avoided as much as
possible. Aside from being adversarial, this is also costly as parties will have to
engage the services of lawyers. The process could take years to be resolved. The
sharing of the heirs is the same as what is mentioned above, less the provisions for
the payments of creditors, if any.

As indicated in Article 887 of the Civil Code of the Philippines, your compulsory heirs
are:

Primary - Legitimate children and/or descendants

Secondary - Legitimate parents and/or ascendants; illegitimate parents (will inherit
only in default of the primary heirs)
Concurring - Surviving spouse; illegitimate children and/or descendants

Barring any impediments, legal or otherwise, the Civil Code of the Philippines
implements the division of the estate in the following manner:

For computation purposes only, find out the value of half of the deceased person's
estate. Think of 1/2 as the "free portion" mandated by law. The other 1/2 (referred
to as "hereditary estate") is what is, in theory, immediately ready for division.

• One legitimate child is entitled to 1/2 of the hereditary estate. Two or more
legitimate children are entitled to divide the 1/2 of the hereditary estate equally
among themselves.
• The surviving spouse is entitled to 1/4 of the hereditary estate if there is only one
legitimate child. With two or more legitimate children, he or she is entitled to a
portion equal to the legitime of a legitimate child. The legitime of the surviving
spouse is taken from the free portion of the estate.
• The legitime of illegitimate children is taken from the free portion of the hereditary
estate, provided that this does not exceed the free portion. The Family Code of the
Philippines provides that the legitime of each illegitimate child is 1/2 that of a
legitimate child.

• If the person has no legitimate children or descendants, the legitime of legitimate

parents or ascendants consists of 1/2 of the hereditary estate of their children and
descendants.
• What remains of the "free portion" may be freely disposed of, subject to the rights
of the illegitimate children and surviving spouse. This part of the estate can go to
any person or class of persons with the capacity to succeed under the Civil Code,
even if that person is already a compulsory heir with a prescribed legitime.
• The Civil Code also has this situation covered. It ordains that an illegitimate child is
entitled to one-half the share of a legitimate child.

UNIT 3: TORRENS SYSTEM AND PROPERTY SURVEY

Torrens System

What is land registration?

Land registration is a judicial or administrative proceeding whereby a person’s claim

of ownership over a particular land is determined and confirmed or recognized so
that such land and the ownership thereof may be recorded in a public registry.

What is Torrens title?

Torrens title is the certificate of ownership issued by the land Register of Deeds,
naming and declaring the owner of the real property described therein, free from
all liens and encumbrances except such as may be expressly noted thereon or
otherwise reserved by law. Its effect is that it can be conclusive against the whole
world, it is guaranteed to be indefeasible, unassailable, and imprescriptible. The title
once registered cannot be impugned, altered, changed, modified, enlarged, or
diminished except in some direct proceeding permitted by law.

What are the kinds of registration?

1. Original registrationis the first registration of the land whereby an Original

Certificate of Title is entered in the Registry of Property and a duplicate owner’s copy
is issued to the owner by the Register of Deeds. It can be further classified into:

a. Judicial registration which will be done through the courts. It may either be
voluntary where it instituted by the applicant under the provisions of Act 496 or PD
1529 or compulsory at the instance of the State under provision of Act 2259
(Cadastral Act)

1. Voluntary -instituted by the applicant

2. Compulsory- at the instance of the State

b. Administrative registration wherein theacquisition of land patents to public

agricultural lands and registration thereof under Section 107 of CA No. 141 (The
Public Land Act)

What is subsequent registration?

Subsequent registration is a process where the Original Certificate of Title is

cancelled and subsequently registered under a Transfer Certificate of Title in favor
of the new owner in cases of land conveyance such as sale, donation or assignment.

Who may apply for original registration of title?

According to Presidential Decree 1529 “Amending and Codifying the Laws Relative
to Registration of Property and for Other Purposes”, or also known as Property
registration Decree, it has laid down the enumeration of who may apply for original
registration of Title.

Section 14. Who may apply. The following persons may file in the proper Court of
First Instance an application for registration of title to land, whether personally or
through their duly authorized representatives:

(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 bona fide claim of ownership
since June 12, 1945, or earlier.

(2) Those who have acquired ownership of private lands by prescription under the
provision of existing laws.

(3) Those who have acquired ownership of private lands or abandoned river beds by
right of accession or accretion under the existing laws.

(4) Those who have acquired ownership of land in any other manner provided for
by law.

Where the land is owned in common, all the co-owners shall file the application
jointly.

Where the land has been sold under pacto de retro, the vendor a retro may file an
application for the original registration of the land, provided, however, that should
the period for redemption expire during the pendency of the registration
proceedings and ownership to the property consolidated in the vendee a retro, the
latter shall be substituted for the applicant and may continue the proceedings.
A trustee on behalf of his principal may apply for original registration of any land
held in trust by him, unless prohibited by the instrument creating the trust.

What are the attributes and limitations on certificates of title and registered lands?

A. Free from liens and encumbrances

B. Incontrovertible and Indefeasible
C. Certificate of title not subject to Collateral Attack

What are the parts and information on the title?

• Title Form Information- where the type of form, date of revision and serial
number can be found
• Survey Information- where the parcel identity (lot, block, survey plan number),
location, adjoining parcels, tie point, tie line, bearings and distances from corner to
corner and the area and date of survey can be found
• Registration Information- where the name of the Register of Deeds, title number,
book number, page number, place/time/date of registration, name and signature
of registrar and historical information (date and place of original registration, OCT
No., Volume No., Page No., Decree No., record/name of original owner, number of
cancelled title for OCT) can be found
• Ownership Information- where the name/s of all persons whose interest make
up the full ownership, citizenship, civil status, postal address

What is Homestead patent?

It is issued (by the Director Lands) over land not of the public domain is a nullity,
devoid of force and effect against the owner whose title is covered by an OCT or
TCT.

What is the Registration of title under Act 3344?

Registration of untitled lands or lands with imperfect titles is ineffective against third
persons. That in case of double sale, the title registered under the Torrens System is
superior than title registered under Act 3344. Registration under the Torrens
System, at the Registry of Deeds is needed so that title shall be binding upon third
parties.

What is a decree of registration?

It is issued by the administrator of LRA upon order of the court. It shall bind the land
and quiet title thereto – the purpose of Torrens System. Land becomes registered
only upon transcription of the decree in the original registration book by the Register
of Deeds and not on the date of issuance of the decree. Certificate of title becomes
indefeasible after ONE YEAR from issuance of the decree.

What is an assurance fund?

Sec 95 of Property Registration Decree provides that a person who, without
negligence on his part sustain loss or damage or is deprived of land or any estate
or interest therein in consequence of the bringing of the land under the operation
of Torrens System or arising after the original registration of the land, through
fraud or in consequence of any error, may bring an action in any court of
competent jurisdiction for the recovery of damages paid out of the Assurance Fund
within 6 years from the time the right to bring such action accrues.
The assurance fund is intended to relive innocent persons from the harshness of
the doctrine that a certificate of title is conclusive evidence of indefeasible title to
the land.

What is the rule on conveyance of only a portion of a land?

The Register of Deeds shall not enter any new title in favor of the grantee until a
plan indicating the portions into which the land has been subdivided shall first be
presented, together with the technical descriptions thereof. Meantime, the deed of
conveyance may be annotated at the owner’s certificate.

Certificate of Title

What is a certificate of title?

Certificate of title is the true copy of the decree of registration or the transcription
thereof and like the decree shall also be signed by the LRA Administrator. This is the
certificate of ownership issued under the Torrens system of registration by the
government, thru the Register of Deeds. It names and declare who the owner in fee
simple is and described the property with utmost particularity and free from all liens
and encumbrances except as those noted or reserved by law. Legally defined, a
certificate of title is the transcript of the decree of registration made by the Register
of Deeds.

Title is not synonymous with Torrens certificate of titles. It is a generic word which
means proof, evidence or muniment of ownership such as tax declaration, realty tax
receipts, deed of sale and Torrens Certificate of Title (best evidence of ownership)

• Land title refers to that upon which ownership is based. It is the evidence of the
right of the owner or the extent of his interest where he can maintain control and
right to exclusive possession and enjoyment of property.

• Muniments of title are instruments or written evidences that the applicant hold or
possesses to enable him to substantiate and prove title to his estate.

What are the attributes and limitations on certificates of title and registered lands?

1. Free from liens and encumbrances

2. Incontrovertible and Indefeasible
3. Incontrovertible and indefeasible.
4. Certificate of title not subject to Collateral Attack

What are the parts and information on the title?

• Title Form Information- where the type of form, date of revision and serial
number can be found
• Survey Information- where the parcel identity (lot, block, survey plan number),
location, adjoining parcels, tie point, tie line, bearings and distances from corner to
corner and the area and date of survey can be found
• Registration Information- where the name of the Register of Deeds, title number,
book number, page number, place/time/date of registration, name and signature
of registrar and historical information (date and place of original registration, OCT
No., Volume No., Page No., Decree No., record/name of original owner, number of
cancelled title for OCT) can be found
• Ownership Information- where the name/s of all persons whose interest make
up the full ownership, citizenship, civil status, postal address

What are the common annotations on title?

1. Cloud on title is any condition revealed by a title search which affects the title to
the property, usually relatively unimportant items but which cannot be removed
without quitclaim or court action.

Quieting of title is an action brought to remove clouds on the 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 as
defined in Article 476 of the New Civil Code:

Art. 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.

2. Notice of lispendens- LisPendens is a Latin term meaning “a pending litigation. A

Notice of LisPendens, when registered with the registry of deeds where the land is
recorded serves as a warning to third parties that a particular real property is in
litigation. Before the final judgment, the notice of lispendens may be cancelled upon
order of the court, action of the register of deeds at the instance the party who
caused the registration of the notice or verified petition of the party who caused the
registration thereof.
3. Section 4 Rule 74 of the Rules of Court governs the Title that is acquired through
extra-judicial settlement. Title is subject to claims of third party, with interest, for a
period of two (2) years.

4. Deed of restrictions refers to limitation on use of property such as in subdivision

and condominium.

a. These are conditions or limitations placed in a deed by the owner when the
property is transferred to another party. It is usually created by individual parties
and affects a particular property.
b. Those conditions placed in the deeds by developers and usually affect the entire
subdivision are called restrictive covenants
c. If restrictions placed are unreasonable or unlawful restraints on an owner’s use
of a land they will be unenforceable.

5. Easement or right-of-way refers to right given to another property or the

dominant property. The law has defined it as:

Art. 613. An easement or servitude is an encumbrance imposed upon an immovable

for the benefit of another immovable belonging to a different owner.
The immovable in favor of which the easement is established is called the dominant
estate; that which is subject thereto, the servient estate. (530)

6. Writ of preliminary attachment is a judicial order emanating from a legal action,

authorizing the Sheriff or other public officer to take all the property or rights of any
party so as to preserve the property to satisfy future judgment in favor of the
Plaintiff. Attachment is governed by Rule 57 of the Rules of Court. There are three
kinds of Attachment.

7. Writ of executionis a court order authorizing the sheriff to execute the final
judgment for the sale of the property.

8. Mortgageis the property is used as collateral and security for a loan.

9. Adverse claimis whoever that claims any part or interest in registered land adverse
to the registered owner, arising subsequent to the date of the original registration,
may, make a statement in writing setting forth fully his alleged right or interest, and
how or under whom acquired, a reference to the number of the certificate of title
of the registered owner, the name of the registered owner, and a description of the
land in which the right or interest is claimed. Some of the characteristics of an
adverse claim includes:

a. Title cannot be defeated by an adverse claim

b. First: refers to petition of the party who claims any part or interest in registered
land arising subsequent to the date of original registration
c. Second: refers to the petition filed in court by a party in interest for the
cancellation of the adverse claim upon a showing that the same is invalid.
d. While the law states that the adverse claim shall be effective for a period of
thirty (30) days from the date of registration, however, the cancellation is still
necessary to render it ineffective otherwise the inscription will remain annotated
and shall continue as a lien upon the property.

10. Encroachments are unauthorized physical intrusions of a building or other form

of real property onto an adjoining property. It can mean a trespass, and the owner
of the property being encroached on can take court action either to force the
removal of the encroachment or to recover damages.

Encroachment of long-standing use may result to an easement right by prescription

or adverse possession.

11. Liens (Money Claim) -These are claims or charges against the property to provide
security for a debt or obligation. A lien allows the creditor to have the property sold
to satisfy the debt in case of default. To enforce it, the creditor must take legal action
and obtain a court order to have the property sold. Liens against real estate may
reduce the value of the property; however, the owner can still convey title to
another party. The following are the kinds of lien:

a. JUDGMENT LIENis imposed when a judgment concludes a lawsuit is issued and

recorded by the court and in effect, it will be done on both the real and personal
property of a defendant/debtor. It will only be cleared when after a satisfaction of
judgment is recorded and issued to a debtor, say, a property is sold to satisfy a debt.
This is a general, involuntary lien.

b. MORTGAGE LIEN automatically ends after payment of loan. If loan remains unpaid
then the lender may foreclose and sell the property. This lien is a specific, voluntary
lien created after a lender makes a loan using real estate as security. The property
owner signs a mortgage document that creates a lien against the property. A specific
and involuntary lien, it is used when a property owner does not pay for the work or
materials provided.

c. MECHANIC’S LIEN is a protection on the part of a supplier/contractor who

provides materials or services for the real estate

d. REAL ESTATE TAX LIEN which due to the is a levy on real property determined on
the basis of a fixed proportion of the value of the property, it give the creditor the
right to sell a property at a tax sale to satisfy outstanding tax delinquencies, plus
interest and penalties. However the delinquent property owner may redeem the
property so long as all obligations will be paid before (equitable redemption right)
or after (statutory redemption right) the tax sale.

What are the statutory liens affecting title?

First: Claims or rights arising or existing under the laws and Constitution of the
Philippines

Second: unpaid realty taxes

Third: Any public highway or private way established or recognized by law or any
government irrigation canal or lateral thereof if the certificate of title does not state
that the boundaries of such highway or irrigation canal or lateral thereof have been
determined

Fourth: Any disposition of the property or limitation on the use thereof by virtue or
pursuant to PD 27 or any other law or regulations on Agrarian reform

Reconstitution of Certificate of Title

What is the reconstitution of certificate of title?

Reconstitution of certificate of title is the restoration of the instrument which is

supposed to have been lost or destroyed in its original form and condition, under
the custody of the Register of Deeds.

What are the kinds of reconstitution of certificate of title?

1. Judicial reconstitution which partakes the nature of a land registration proceeding

in rem. As PD 1529 states:

Section 2. Nature of registration proceedings; jurisdiction of courts. Judicial

proceedings for the registration of lands throughout the Philippines shall be in rem
and shall be based on the generally accepted principles underlying the Torrens
system.

2. Administrative reconstitution which may be availed of only in case of:

a) Substantial loss or destruction of the original land titles due to fire, flood, or
other force majeure as determined by the Administrator of the Land Registration
Authority;
b) The number of certificates of title lost or damaged should be at least 10% of the
total number in the possession of the Office of the Register of Deeds;
c) In no case shall the number of Certificates of title lost or damaged be less than
500; and
d) The Petitioner must have the duplicate copy of the certificate of Title. (RA 6732)

What are the other petitions/transactions after original registration?

1. Amendment and Alteration of Certificate of Title

2. Surrender of Withheld Duplicate Certificate of Title
3. Replacement of Lost Duplicate Certificate of Title

What are the laws governing the reconstitution of title?

A. Act 496: Land Registration Act of 1903 (approved November 6, 1902, effective
January 1, 1903)
1. Governs the homesteading, selling, and leasing of portions of the public domain
of the country
2. The purpose of the Torrens System of Registration is to quiet title to the land
3. Perfects for the issuance of patents without compensation to certain native
settlers
4. The Court of Land Registration, the Register of Deeds and the Torrens system of
registration were created
5. Real estate ownership may be judicially confirmed and recorded in the archives
of the government
6. The term “public land” referred to all lands of the public domain whose title still
remained with the government; excluded the patrimonial property and friar lands
7. Act No. 926 is the first Public Land Act (1903)
8. Act No. 2874 is the second Public Land Act (1919) and was passed under the
Jones Law

B. Act No. 2259: Cadastral Act (effective on February 11, 1913)

1. Only unregistered lands may be the subject of a cadastral survey and those
already titled cannot be the subject of cadastral proceedings.
2. It aims to settle and adjudicate any lands upon order of the President to the
Director of Lands to make a government survey in the interest of the public. All
conflicting interests on lands shall be adjudicated (to be settled by law) through
the Solicitor General who represents the Director of Lands.
3. The cadastral court over previously titled lands is only focused on correction of
technical errors in the description of the land.
4. The decree was awarded to the person with better claim and shall be the basis
for the insurance of certificate of title which shall have the same effect as a
certificate of title granted under the Property Registration Decree

C. CA No. 141: Public Land Act (approved on November 7, 1936, effective on

December 1, 1936)

1. The law governed the classification and disposition of lands of the public domain
2. It is the first law for judicial confirmation of imperfect and incomplete titles
3. Free patent under rule states that the area of the land must not exceed 24
hectares for any natural Filipino citizens and cultural minorities
4. The qualification includes: must be a natural born citizen, does not own more
than 24 hectares of land since July 24, 1926, continuous occupation and cultivation
for at least 30 years, pays realty tax of the property. Cultural minorities are
required to have a continuous occupation and cultivation of the land since July 24,
1955 whether disposable or not for at least 30 years, not an owner of any real
property.

D. PD 1529: Property Registration Decree (approved on June 11, 1978, effective on

June 11, 1978)
1. Amended and codified the laws relative to registration of property
2. Included judicial confirmation of imperfect or incomplete titles which tackled
cadastral, voluntary and involuntary registration proceedings and the certificate of
land transfer and emancipation patents
3. The court may dismiss the application of the applicant with or without prejudice
to the right to file a new application for the registration of the same land Court of
First Instance was given the 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.
4. Homestead patent Issued by the Director Lands over land not of the public
domain is a nullity, devoid of force and effect against the owner whose title is
covered by an OCT or TCT.
5. Registration of untitled lands or lands with imperfect titles is ineffective against
third persons. That in case of double sale, the title registered under the Torrens
System is superior than title registered under Act 3344. Registration under the
Torrens System, at the Registry of Deeds is needed so that title shall be binding
upon third parties.

E. PD 892 (issued on February 16, 1976)

1. Discontinued the system of land registration under the Spanish Mortgage Law
and the use of Spanish titles as evidence in land registration proceedings
2. Holders of Spanish titles must apply for registration within 6 months or until
August 16, 1976 from this decree’s effectivity or else their titles would produce no
registration
3. Under this decree, Spanish titles can no longer be used as evidence of
ownership

F. 1987 Constitution

1. SEC 3, ARTICLE XII refers to ownership of government lands which states that for
Citizens of the Philippines they can lease not more than 500 hectares and acquire
not more than 12 hectares
2. Free Patent rule under the Constitution states that any natural born citizen of
the Philippines who is not the owner of more than 12 hectares and who, for at
least 30 years including his predecessor-in-interest has continuously occupied the
land. He shall be entitled an area not to exceed 12 hectares-Torrens title issued on
the basis of the free patent becomes as indefeasible as one that was judicially
secured upon the expiration of one year from date of issuance of patent.

G. RA 6732 (approved July 17, 1989)

1. Allowing administrative reconstitution of original copies of certificates of titles

lost or destroyed due to fire, flood and other force majeure;
2. Administrative reconstitution available to original certificates of title lost are at
least 10% of all the titles in the Registry of Deeds but not less than 500 titles
whichever is higher;
3. Administrative reconstitution of titles shall be without prejudice to parties
whose rights or interests may been annotated on the lost or destroyed original
certificates of titles.

H. RA 6657 Comprehensive Agrarian Reform Program/ CARP (approved June 15,

1988)

1. Applicable to all agricultural lands regardless of produce

2. The choice of productive landholdings belongs to the owner of the land
3. Retention is 5 hectares to landowners; plus 3 hectares for each child 15 years
old and above, actually tilling and managing the farm
4. Beneficiary : limited to 3 hectares only
5. Under CARP, a landless beneficiary is one who owns less than 3 hectares of
agricultural land

I. RA 7042 amended by RA 8179: Foreign Investment Act (approved: March 28,

1996)

1. Allows natural-born Filipino citizen who lost their Philippine citizenship to acquire
private lands subject to limitation of the law. Land limits: 5,000 square meters, in
case of urban land and 3 hectares in case of rural land.

J. RA 8371: Indigenous Peoples Rights Act (approved on October 29, 1997)

1. Indigenous Peoples Rights Act of 1997

2. Rights of ownership is limited to ancestral lands only
3. Law dealing with specific group of people

K. RA 9176 (approved November 13, 2002)

1. Extending the period until December 31, 2020 for the filing of applications for
administrative legalization (free patent) and judicial confirmation of imperfect and
incomplete titles to alienable and disposable lands of the public domain, amending
for this purpose CA 141
2. If further, limits the area to be applied for to 12 hectares only

L. RA 9225: Citizenship Retention and Re-acquisition Act (approved August 29, 2003)

1. This law provided that natural born citizens of the Philippines, who have lost their
Philippine citizenship by reason of their naturalization as citizens of foreign country,
are hereby deemed to have re-acquired Philippine citizenship upon taking their oath
of allegiance to the republic and shall enjoy full civil and political rights and be
subject to all attendant liabilities and responsibilities under the existing laws of the
Philippines. Therefore, limitation on ownership under RA 7402 as amended by RA
8179 is deemed not applicable under this law.

M. RA 9700: Comprehensive Agrarian Reform Law/CARPER (approved August 7,

2009)
1. It extended the program for another 5 years
2. It is the redistribution of private and public agricultural lands to help the
beneficiaries survive as small independent farmers, regardless of the tenurial
arrangement
3. It covers: alienable and disposable lands of public domain suitable for agriculture
4. It awards ceiling of 3 hectares for beneficiaries and payment of beneficiaries
must be 30 years at 6% interest per annum to Land Bank. Awarded lands shall not
be sold to non-beneficiary of the program
5. The lands covered may be disposed before 10-year period only to the
government, Land Bank or program beneficiaries and may be disposed or
encumbered after 10yrs from date of registration
6. Conversion is allowed after 5 years if applicable and no conversion on irrigated
lands
7. The law has laid down a penalties of either3 years imprisonment or 15k fine or
both

J. RA 10023: The New Residential Free Patent Law of 2010 (approved March 9, 2010)

1. The law has made any Filipino citizen who is an actual occupant of a residential
land provided that in highly urbanized cities, the land should not exceed 200sqm or
500sqm in other cities as qualified for the free patent. The land should not exceed
750sqm for first class and second class municipalities and in all other municipalities,
it should not exceed 1000sqm provided further that the land is not needed for public
service or public use.
2. It covers coverage: All lands that are zoned as residential areas including town
sites as defined under Public Land Act provided that none of the provisions of PD
705 have been violated; zoned residential area located inside a delisted military
reservation or abandoned military camp and those of local government units or
town sites
3. Those special patents may be granted under the name of the national agency of
local government notwithstanding any provision of law to the contrary and subject
to private rights, if any public land actually occupied and used for public schools,
municipal halls, public plazas or parks and other government institutions for public
use.
4. All lands titled under this section shall not be disposed of unless sanctioned by
Congress if owned by the national agency or sanctioned by the Sanggunian concerns
through an approved ordinance if owned by the local govt.

How to Read a Property Survey

A property survey -- also known as a boundary survey, plat survey, or land survey --
is an essential document if you are purchasing a residential or commercial building
or land parcel. With a property survey in hand, you can discover the boundary lines,
zoning information, and underground utilities on and around your property.
Learning to read a property survey will help you understand your rights as a
landowner.

Method1
Getting Your Bearings

1.Identify the survey parts. The property survey consists of two parts: the illustration
and the written report. The illustration is basically a map of the area surveyed. Place
the survey illustration on a large flat surface, as property surveys can be quite large.
Keep the written report on hand for easy reference.
2.Familiarize yourself with the legend. The legend is usually set in the corner of a
survey illustration. It contains icons which indicate important property attributes
such as wells, borders, structures, or utility lines. If any elements of the legend are
unclear or need explanation, contact your surveyor.
3.Locate the surveyor's certificate. The surveyor's certificate should be signed and
dated with an embossed seal. This certificate provides a legal foundation for the
survey's validity. If absent, the survey will not provide you with legal protection in a
court of law.

Method2
Digging Into the Details

1.Orient yourself in the survey illustration. The illustration should include a compass
indicating which way is north. This is often located near the legend, or separately in
a corner of the illustration. A good survey will distinguish between magnetic north
and astronomical north. If the survey does not distinguish between the two, it's
probably based on magnetic north, but you should check with your surveyor to be
sure.
2.Understand the property boundaries. Property boundaries are denoted with both
bearing and distance. The bearing is a series of degrees, minutes, and seconds with
compass point letters before and after each element. The distance indicates how far
from a given point a boundary line extends.
• The bearing represents the angle between north or south and east or west.
You can measure this angle from a central point with a protractor. For
instance, you might have a bearing of N 38° 03' 09" E. If you measured an
angle of 38° 03' 09" from the north to the east on the survey illustration,
you could then trace that northeasterly line to identify one of your
property's boundaries.
• Degrees, minutes, and seconds are the units of measure for property survey
bearings. For example, N 38° 03' 09" E would translate as 38 degrees, 3
minutes, 9 seconds from the north to the east.
• The boundary lines, or "legs," are often denoted in meters and listed directly
below or after the bearing.

3Find important features. The illustration and accompanying written report should
include the following, where present:
• Physical and overlapping boundaries
 • Water structures such as a lake or stream
• Shared fencing, driveways or sidewalks with a neighboring property
• Roadways or driveways that are nearby
• Existing property points of entry or egress
• Buildings, repairs, modifications or structural improvements on the property
• Locations of utilities, including water pipes and other plumbing, electrical,
cable and/or telephone lines, gas lines, and utility poles [4]
4Note the scale and scope of the survey illustration. There should be a scale near
the legend which indicates how distances are represented on the survey illustration.
The scale will help you gauge distances on the property in question, including
distances between it and nearby landmarks. For instance, one inch might
correspond to one mile on the land survey illustration.[5] The illustration might also
orient the reader by providing a vicinity map -- also called a location map -- to
indicate where the property lies in relation to the larger locality. The vicinity map is
a small square inset usually located in a corner of the survey illustration.

Method3

Putting the Survey In Context

1.Read the notes. Notes are found on the survey illustration and provide information
pertaining to former ownership of the land being surveyed or nearby properties. A
more thorough account of the property can be found in the written report.

2.Read the written survey report carefully. The report includes legal information and
additional comments provided by the surveyor. This document may also contain:
• Official property measurements.
• Any easements that may exist on the property. An easement allows a third
party legal access to a property. For example, when you give your neighbor
permission to park in your driveway or allow a utility company to run
electrical lines run through your property.
• Any other property improvements that may have occurred since the latest
survey on file. The report will also indicate if these improvements meet the
code standards set up by the local building department.
• An indication as to whether the property is zoned for residential or
commercial use.

3.Write down any points of confusion or concern. It might be good to have a friend
or family member read the property survey with you so that they can offer
suggestions or identify potential issues you might have missed. After reading the
survey, contact your surveyor to clear up any misunderstanding. Remember,
understanding your survey is crucial for establishing full control over your property.

4.Put your survey to use. Whether you are buying a new property, looking to build
on your land, or trying to sell some or all of your land, your property survey will help
move the process along. If the boundaries of your property are ever in question,
consult your property survey to settle the matter.
SUMMARY:

PROPERTY refers to things which are capable of satisfying human wants and needs
and are susceptible of appropriation.

Property is classified into two: immovable or real property and movable or personal
property.

Immovable are those which cannot be moved from one place or united to the
property.

Movable Property if the object can be moved one place to another and this will not
cause injury to the immovable to which it may be attached.

Property is either of public dominion or of private ownership.

Public dominion or property owned by the State (or its political subdivisions) in its
public or sovereign capacity and intended for public use and not for the use of the
State as a juridical person.

Private ownership or property owned by the State in its private capacity, and is
known as patrimonial property. It may also be owned by private persons, either
individually or collectively.

Classification of property under the 1987 Constitution- Agricultural, forest, timber

and national parks

Natural Filipino citizens and natural born Filipino citizens, former natural born
Filipino citizens, and aliens in exceptional cases can own property in the Philippines.

Land ownership is the right and interest which a person has in land to the exclusion
of others.

Full ownership may enjoy the bundle of rights as elements or attributes of

ownership.

There is co-ownership whenever the ownership of an undivided thing or right

belongs to different persons.

Property Relations Under the Family Code

In the Family Code Property Relations or also referred to as Property Regimes are
divided into four types:

1. Complete Separation of Property

2. Property Regime of Unions Without Marriage
3. Conjugal Partnership of Gains
4. System of Absolute Community
Limitations upon the right of ownership:

▪ General limitation imposed by the State in the exercise of its inherent powers.
▪ Limitations imposed by specific provisions of the law;
▪ Limitations imposed by the transferor of the property;
▪ Limitations imposed by the owner himself; and
▪ Limitations inherent in the property.

What are the modes of acquiring ownership?

1. Public Grant is the administrative method of acquiring public lands, such as

homestead settlement, free patent and sales patent.
2. Private Grant is the voluntary transfer or conveyance of privately owned
property by an owner, such as by sale or donation.
3. Voluntary Transfer of Private Grant is the process by which a land is
transferred with the consent and conformity of the owner such as by sale or
donation.
4. Involuntary Alienation or Involuntary Grant is the process by which a land is
taken against the consent of the owner, such as expropriation proceedings,
execution of judgment, tax sales and foreclosure.
5. Descent or Devise (Descent) is acquired by virtue of inheritance, which
requires a degree of relationship.
6. Reclamation is the filling of submerged land by deliberate act of the
Government.
7. Accretion is the process by which a riparian land gradually and imperceptively
receives addition made by the water to which the land is contiguous.
8. Prescription is when one acquires ownership and other real rights through the
lapse of time in the manner and under the conditions laid down by law.
Usufruct is a real right by virtue of which a person is given the right to enjoy the
property of another with the obligation of preserving its form and substance, unless
the title constituting it or the law provides otherwise.

An easement is a real right constituted on another’s property which must be

corporeal and immovable and the owner of such will be abstained from doing or
allowing another person to do something on his property for another thing or
person’s benefit.

Succession is the process by which property transfers from a decedent to a qualified

person.
Land registration is a judicial or administrative proceeding whereby a person’s claim
of ownership over a particular land is determined and confirmed or recognized so
that such land and the ownership thereof may be recorded in a public registry.

Torrens title is the certificate of ownership issued by the land Register of Deeds,
naming and declaring the owner of the real property described therein, free from
all liens and encumbrances except such as may be expressly noted thereon or
otherwise reserved by law.

Certificate of title is the true copy of the decree of registration or the transcription
thereof and like the decree shall also be signed by the LRA Administrator.

Reconstitution of certificate of title is the restoration of the instrument which is

supposed to have been lost or destroyed in its original form and condition, under
the custody of the Register of Deeds.

A property survey -- also known as a boundary survey, plat survey, or land survey --
is an essential document if you are purchasing a residential or commercial building
or land parcel. With a property survey in hand, you can discover the boundary lines,
zoning information, and underground utilities on and around your property.
Learning to read a property survey will help you understand your rights as a
landowner.

ACTIVITIES

I. Share your opinion on President Rodrigo Duterte’s plan to sell government assets
to pay off loans and fund programs to respond to the coronavirus outbreak. Base
your opinion on Unit 1 Readings.

II. Distribute the estate of X among his heirs.

Facts: X died intestate (without a will) survived by his wife Y; his mother Z; 4
legitimate children A, B, C, & D; 1 legally adopted child E;1 illegitimate child F; I
grandchild from A, G; and mother of his illegitimate child, W, leaving a 5-hectare
(50,000 sqm) agricultural lot. Refer to Unit 2 Readings.
III. Plot the following technical description:

Lines Bearings Distances

1-2 S13*28’E 30.59m

2-3 S70*46’W 48.56m

3-4 N22*12’W 70.98m

4-5 N80*18’E 49.57m

5-6 S12*02’E 30.89m

6-1 N79*33’E 10.42m

Note: * means degree; ‘ means minute

N – north; S – south; E – east; W – west

m – meter

Refer to Unit 3 Readings.

References:

1987 Constitution of the Philippines

Republic Act No. 386: New Civil Code of the Philippines

Executive Order No. 209: Family Code

Act 496: Land Registration Act of 1903

CA No. 141: Public Land Act

PD 1529: Property Registration Decree

RA 6732: Administrative reconstitution of original copies of certificates of titles

RA 7042 amended by RA 8179: Foreign Investment Act

Appendices:

Sample tax declaration, certificate of title, sketch plan

 Appendix 1

Tax Declaration
 Appendix 2

Old Title (manually issued)

e-Title
 Appendix 3

Sketch Plan