Different Degrees of Possession:

1. Possession without any title whatsoever in violation of the right of the true owner, such as that
of a thief
2. Possession with a juridical title, but not in concept of owner, such as that of a lessee, depositary
or pledgee
3. Possession with a just title, or at title which is sufficient to transfer ownership, but not from the
true owner, such as that of a person who buys a thing from one who pretends to be the owner
but is in fact not the owner thereof
4. Possession with a just title from the true owner.

Classifications of Possession

Under the New Civil Code, possession is classified into:

1. Possession in one’s own name or possession in the name of another: (Art. 524, NCC);
2. Possession in the concept of owner or possession in the concept of holder (Art. 525, NCC); and
3. Possession in good faith or possession in bad faith (Art. 526, NCC)

Possession in one’s own name or possession in the name of another

- Possession in the name of another

o Referring only to the possession by a person without any right of his own and one which
is strictly of an agent or merely an instrument in the exercise of such possession
o Ie. Possession by a caretaker, agent, labore r
- Possession in one’s own name
o embraces all kinds of possession anchored on a juridical title or right
o Ie. Possession by the owner himself, possession by a lessee or a mere usufructuary.

Possession in the concept of an owner or holder

- Possession in the concept of an owner

o Requisites
 Person claims to be the owner of a thing, whether he believes so or not,
 Acting as an owner, and performing acts of ownership
 Considered as the owner by those who witness his exercise of proprietary rights,

Effects of possession in the concept of an owner (P – A – I – D – I )

1. Possession is converted into ownership by lapse of time necessary for prescription

2. Possessor can bring all actions necessary to protect his possession, availing himself of any action
which an owner can bring, except accion reinvindicatoria which is substituted by accion
publiciana
3. Possessor can ask inscription of his possession in the Registry of Deeds
4. Upon recovering possession, from one who has unlawfully deprived him of it, possessor may
demand fruits and damages
5. Possessor can do on the thing everything that the law authorizes an owner to do; he is also
entitled to the indemnity in case of appropriation.

- Possession in the concept of a holder

 o Possessor who recognizes and believes that a person has superior rights which hhe
believes to be ownership over the property which he is possessing. He or she also
neither claims ownership over the property contrary to a possessor in the concept of an
owner

Possession in bad faith and good faith (ART. 526, NCC)

Possessor in Good Faith

- One who is not aware that there exits in his title or mode of acquisition any flaw or defect which
invalidates it

Requisites

1. Possessor should have acquire the thing or property through some title or by some mode of
acquisition recognized by law
2. There must eb a flaw or defect in such title or mode of acquisition
3. The possessor should NOT BE AWARE of such flaw or defect.

Possessor in bad faith,

- One who is aware hat there exists in his title or mode of acquisition some flaw or defect which
invalidates it.

Requisites

1. Possessor should have acquire the thing or property through some title or by some mode of
acquisition recognized by law
2. There must eb a flaw or defect in such title or mode of acquisition
3. The possessor should BE AWARE of such flaw or defect.

When does possession in Good faith lose this character?

- Possession in good faith loses this character from the moment facts exists which show that the
possessor IS NOT unaware that he possesses the thing improperly or wrongfully. (Art 528, NCC) If
there are no facts from which the interruption of good faith my be determined, and an action is field
to recover possession, good faith ceases from the moment the possessor receives the judicial
summons to appear at the trial (Tacas vs. Tobon)

How is possession acquired

1. By material occupation of a thing or the exercise of a right

2. By subjecting a thing or right to the action of our will; or
3. By proper acts and legal formalities (Art. 531, NCC)

How is possession lost ( Ab – As – D – P – R )

 1. By the abandonment of the thing
2. By an assignment made to another either by onerous or gratuitous title
3. By the destruction or total loss of the thing, or because it goes out of commerce
4. By the possession of another subject to the provisions of Article 5 37, if the new possession
lasted longer then one year. But the real right of possession is not list till after the lapse of ten
years (Article 555)
5. By the recovery of the thing by the legitimate owner.

May possession acquired through violence ripen into ownership.

NO. Acts merely tolerated, and those executed clandestinely without knowledge of the possessor of a
thing, or BY VIOLENCE, do not affect possession (Art. 537, NCC). These acts do not constitute true
possession, nor do they prejudice the rights of a real possessor.

Notwithstanding their performance, the possession continues to reside to the legal possessor; they do
not interrupt the period of prescription in favor of the latter, nor affects his rights to the fruits.

In case of conflict between two (2) persons regarding the possession of a certain property, who shall be
preferred?

Possession as a fact cannot be recognized at the same time in two (2) different personalities except in
the case of co-possession. Should a question arise regarding the fact of possession:

1. The present possessor shall be preferred

2. IF there are two (2) possessors, the one longer in possession
3. If the dates of the possession are the same, the one who presents a title
4. If all these conditions are equal, the thing shall be placed in judicial deposit pending
determination of its possession or ownership through proper proceedings (Art. 538, NCC)

Effects of possession in good faith and in bad faith

1. Fruits received
2. Pending fruits
3. Charges
4. Expenses
a. Necessary
b. Useful
c. Ornamental
5. Deterioration or loss