PROPERTY LAW - Midterm Examinations

September 25, 2019; 7:10 p.m. to 10:00 p.m.

FOUNDATION UNIVERSITY- College of Law and Jurisprudence
First Semester, AY 2019-2020
Erica P. Encabo

INSTRUCTIONS

1. This questionnaire consists of five (5) pages including this page. Check the number of pages
and their proper sequencing. You may write notes on this questionnaire.

2. Read each question very carefully and write your answers in your Blue Book in the same
order as the questions. Write your answers only on the front page of every sheet. Note well
the allocated percentage points for each question or sub-question. In your answers, use the
numbering system in the questionnaire. For each Roman numeral, start each answer on a
separate page. An answer to a sub-question under the same Roman numeral may be written
continuously on the same page and the immediately succeeding pages until completed.

3. Answer the questions legibly, clearly, and concisely. Your answer should demonstrate your
ability to analyze the facts, spot the issue/s, apply the pertinent laws and jurisprudence, and
arrive at a sound or logical conclusion. Always support your answer with the pertinent
laws, rules, and/or jurisprudence, i.e. always provide legal bases for your answer even if
the question does not expressly ask for an explanation. Should your answer be based on
assumptions not provided in the question, do not forget to state the said assumptions.

4. Do not write your name or any extraneous note/s or distinctive marking/s on your Blue Book
that can serve as an identifying mark/s (such as names that are not in the given questions,
prayers, or private notes to the professor). Writing, leaving, or making any distinguishing or
identifying mark in the Blue Book may be considered cheating and may subject you to
appropriate disciplinary actions.

YOU CAN BRING HOME THE QUESTIONNAIRE.

Good Luck!

I.

(a) What are considered property of public dominion? (2%)

(b) What are considered patrimonial property of the State? (2%)
(c) What is the doctrine of Self-Help in Property Law? (2%)
(d) What are the two requisites in an action to recover property? (2%)
(e) What is the legal doctrine embodied in the Latin maxim sic utere tuo ut alienum non
laedas? (2%)

II.

Differentiate between:

(a) Adjunction versus Specification (3%)

(b) Forcible Entry vs. Unlawful Detainer (3%)
(c) Accion Publiciana vs. an Action for Quieting of Title (3%)
(d) Alluvium vs. Avulsion (3%)
(e) Natural Fruits vs. Civil Fruits vs. Industrial Fruits (4%)

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 III.

Dany entered into an agreement with Jorah, the owner of an excavation services business,
wherein Jorah agreed to excavate portions of the parcel of public mineral land occupied by Dany
in search of hidden treasure. Compensation for Jorah’s services under the agreement was to be
Php 200,000.00. After days of digging, Jorah found gold in the northeastern portion of the
property, which gold was valued at more or less Php 5,000,000.00. Being the finder thereof,
Jorah now claims half of the gold or its value. Dany meanwhile claims that the contract for
Jorah’s services already provides adequate compensation to the latter and, thus, Dany should be
deemed the exclusive owner of the gold.

(a) Determine who owns the gold and in what proportion/s (should such sharing be
applicable)? Explain. (5%)

(b) Suppose the gold found is in the form of gold bars and locked inside a treasure chest
labeled “Property of Kathniel Berndilla,” who would own the gold and in what
proportion/s (should such sharing be applicable)? Explain. (5%)

IV.

Theon and Yara, brother and sister, are co-owners by inheritance from their father a Ford
Expedition 2010 model sports utility vehicle. Theon comes to you for legal advice on their
options for partitioning the vehicle. How would you advise Theon? (5%)

V.

Sandor entered into a lease agreement with Gregor for the 10-year lease of Gregor’s property
consisting of an industrial building as well as the lot on which the building stands. Their lease
contract provided that “(a)ll permanent improvements placed by the lessee within the leased
property shall become the property of the lessor upon the termination of the lease contract xxx”
To carry on with his intended business of chocolate making, Sandor obtained a loan from the
Iron Bank for the purchase of large-scale machinery intended for chocolate manufacturing.
Upon purchase of the said machinery, Sandor executed a chattel mortgage with the Iron Bank as
mortgagee, which chattel mortgage provides that the “machinery is, and shall at all times be and
remain, personal property notwithstanding that the machinery or any part thereof may now be,
or hereafter become, in any manner affixed or attached to or embedded in, or permanently
resting upon, real property or any building thereon, or attached in any manner to what is
permanent.”

After having purchased the said large-scale chocolate making machinery, Sandor caused its
immobilization by having it bolted securely on the cement floors and walls of the leased
building. He thereafter proceeded to carry on with his chocolate-making business. After a year
however, considering the heavy competition put up by imported chocolate manufacturers,
Sandor’s business took a severe downturn and Sandor defaulted on his loan with the Iron Bank.
The Iron Bank thus foreclosed on the mortgaged machinery.

(a) Sandor now files suit for the annulment of the chattel mortgage and the foreclosure
proceedings stating that the machinery is real property, having been immobilized by
purpose or destination, and is therefore not the proper subject of a chattel mortgage. Is
Sandor’s claim meritorious? Explain. (5%)

(b) Gregor meanwhile comes to you for legal advice asking whether he has a right over the
machinery and if he has any grounds to file suit for the annulment of the chattel
mortgage. How would you advise Gregor? (5%)

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 VI.

Sansa and Arya, who are sisters, are co-owners of a parcel of land in equal shares. Sansa
entered into an agreement with Ramsay for the sale of the land for the total amount of Php
2,000,000, payable equally to Sansa and Arya. Sansa thus drafted a Deed of Absolute Sale over
the entire property, providing in the deed a signature box as space for Arya’s signature. Sansa
and Ramsay thereafter signed the deed and Sansa and received Php 1,000,000.00, being her
share of the purchase price. Both Sansa and Ramsay acknowledged the deed before a notary
public.

Ramsay retained the copies of the deed and approached Arya to obtain her signature; Arya,
however refused to sign the deed. Ramsay left copies of the deed with Arya in the event she
changes her mind. Sansa, meanwhile, after having compared the market values of adjacent
properties and discovering that their property had a market value of Php 10,000,000.00, deeply
regrets the sale of their own property for such a low price.

a) To capitalize on prevailing market values of similar and adjacent properties, Sansa now
files suit for the reconveyance of the property conveyed to Ramsay on the ground that
the deed of sale is void, not having been signed by one of the co-owners.

What is the effect on the deed of sale of Arya’s refusal to sign the same? And,
consequently, may Sansa be allowed to recover her share of the property? Explain. (5%)

b) Two months after Ramsay left the copies of the Deed of Absolute Sale with Arya and
instead of signing the deed, Arya files a complaint with the court to allow her to redeem
Sansa’s share in the property. Simultaneous to the filing of the complaint, Arya
deposited the amount of Php 1,000,000.00 with the clerk of court as redemption price.
Ramsay moved to dismiss the complaint stating that Arya’s action for redemption had
already lapsed, not having been brought within thirty (30) days from the day notice of
the sale was given to her, that is, when he left copies of the deed of sale with Arya.

Did Arya at any time after the execution of the deed have a claim for redemption? And
assuming that there ever existed a right of redemption in favor of Arya, has the period
for her exercise of the right already lapsed? Explain. (5%)

VII.

Robert and his brothers Stannis and Renly, by the execution of a deed of extrajudicial
settlement, became co-owners in equal shares of a parcel of residential land after their father’s
death. Stannis and Renly left the country after executing the settlement and proceeded to
reside in Canada. Two years later, Robert, seeing that their inherited property remained idle,
advised Stannis and Renly (through their Viber group chat) of his intentions to build a residential
house over the land for his family to dwell therein. Stannis and Renly did not interpose any
objections to Robert’s plans and even wished him well. Thus, Robert built his house over the
property and proceeded to reside therein with his family.

Several years after the house was built, Stannis and Renly visited the Philippines for the
commemoration of the tenth year of their father’s death. Suspecting that the house that Robert
built occupied too large a portion of the property, they hired a surveyor who reported that
Robert’s house occupied two thirds (2/3) of the property. Stannis and Renly thus filed a case
against Robert for the collection of rentals over the one third (1/3) of the property which
Robert’s house was allegedly encroaching over and above his (Robert’s) share of the property.

If you were the judge, would you grant Stannis and Renly’s claims for rentals against Robert?
Explain. (5%)

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 VIII.

Brienne, had been in open, continuous, and peaceful possession of a parcel of public agricultural
land in the concept of an owner since 1970, having succeeded her father in cultivating the said
land. Her father meanwhile, prior to his death, had likewise been in open, continuous, and
peaceful possession of the land and had been cultivating the land in the concept of an owner
since 1945. In 2015, employees of the Fitinvest Realty Corporation entered the property and
approached Brienne who was residing therein and advised her that the property had already
been sold to the company by a certain Tywinn. Instead of surrendering possession, Brienne
proceeded to conduct an investigation and discovered that in 1980, Tywinn had succeeded in
obtaining title to the property in his name in original land registration proceedings. It further
appears from Brienne’s investigation that Tywinn connived with government surveyors to
fraudulently encompass the parcel that she occupies within the larger parcel of land he sought
to have registered.

(a) Immediately after discovering the fraudulent registration made by Tywinn, Brienne
comes to you for advice on the possibility of filing a case for quieting of title against
Tywinn. Under the above circumstances, does Brienne have a cause of action for
quieting of title? Explain. (5%)

(b) Assuming Brienne in any case did file the complaint for quieting of title. Tywinn, in his
answer, interposed the defense of prescription, the quieting case having been brought
almost forty (40) years from the issuance of the decree of registration in his name. Is
Tywinn’s defense meritorious? That is, has Brienne’s action for quieting of title
prescribed? Explain. (5%)

IX.

Under Section 48(b) of the Public Land Act (Commonwealth Act No. 141), as amended by
Presidential Decree (P.D.) No. 1073:

“Sec. 48. The following described citizens of the Philippines, occupying lands of
the public domain or claiming to own any such land or an interest therein, but
whose titles have not been perfected or completed, may apply to the Court of
First Instance of the province where the land is located for confirmation of their
claims and the issuance of a certificate of title therefor, under the Land
Registration Act, to wit:
xxx

“(b) 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
acquisition of ownership, since June 12, 1945, or earlier, immediately preceding
the filing of the application for confirmation of title except when prevented by war
or force majeure. These shall be conclusively presumed to have performed all
the conditions essential to a Government grant and shall be entitled to a
certificate of title under the provisions of this chapter.”

The Property Registration Decree (P.D. No. 1529) meanwhile provides that:

“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.”

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 xxx

Walder and Ned occupy adjoining tracts of land. Walder’s land is classified as public agricultural
land, while Ned’s land is classified as timber land. Both Walder and Ned, by themselves or
through their predecessors-in-interest, have been in open, continuous, exclusive, and notorious
possession in the concept of owner of their respective parcels since 1950 and up to the present.
In 1985, the Government declared Ned’s parcel as no longer needed for public use or for public
service or for the development of national wealth, while Walder’s parcel was declared as
alienable and disposable. Walter and Ned now come to you for legal advice.

(a) What is the effect of the 1985 declarations of the Government: (i) on Walder’s land? (ii)
on Ned’s land? (5%)

(b) Given that Walder may not apply for judicial confirmation of his imperfect title under
Section 48 (b) of the Public Land Act since he has not been in possession since June 12,
1945, Walder asks you: may he still assert ownership over the property by extraordinary
acquisitive prescription under the Civil Code since he has been in possession of the
property for a period of almost 70 years? Explain. (5%)

(c) Given that Ned, like Walder, may also not apply for judicial confirmation of his imperfect
title under Section 48 (b) of the Public Land Act since he has not been in possession
since June 12, 1945, Ned now asks you: may he still assert ownership over the property
by extraordinary acquisitive prescription under the Civil Code since he has been in
possession of the property for a period of almost 70 years? Explain. (5%)

X.

Dario owns a parcel of land adjoining the banks of the Tanjay River, while Drogo owns a parcel
of land on the opposite side of the river also adjoining its banks. Over time, the river naturally
changed course and now passes through the property of Drogo. The old river bed adjoining the
property of Dario had become abandoned. Dario now wishes to apply for registration of the old
bed as alluvium and seeks your advice.

(a) Who owns the old river bed? Explain. (3%)

(b) What are Dario’s and Drogo’s respective rights over the old bed? (4%)

(c) Who owns the new river bed flowing through Drogo’s property? (3%)

XI.

Cersei and Jaime, brother and sister, are the owners of two adjoining lots. Cersei, in order to
make productive use of her lot, engaged the services of a contractor to build a row of
apartments on her property which she could rent out. The contractor sent her the plans, but
Cersei, not being too well-versed in reading the same, approved them hastily without noticing
that a portion of the construction would encroach on Jaime’s property. Cersei had shown Jaime
the plans and Jaime noticed the encroachment but, as he loved Cersei dearly, spoke nothing
thereof and did not object to the construction even as it encroached on his property. After
construction, Cersei and Jaime had a falling out. Jaime now demands that the encroaching
portions of the apartment be demolished.

(a) Does Jaime have a right to demand the demolition of the encroaching portions? Explain.
(5%)

(b) Cersei now comes to you for legal advice on her rights relative to the said
encroachment. What would be your advice and why? (5%)

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