September 4, 2022

PROPERTY

NOTES

Article 414. All things which are or may be the object of appropriation are considered either: 
(1) Immovable or real property; or 
(2) Movable or personal property. (333)

However, not all things are susceptible to appropriation and they are not included in the
concept of property. Thing is a comprehensive (including all) term.

THING
- any object that exists and is capable of
satisfying some human needs.
- includes objects that are already possessed
or owned and those that are susceptible of
appropriation (act of taking control or
possessing a property).
PROPERTY
- anything which is already the object of
appropriation or is found in the possession of
man.
- anything than can be used or transacted
(appropriation)

Tangible Object – capable of being felt of 5 human senses.

Intangible Object
Appropriation vs. general

Requisites of Property

1. Utility

– the capacity to satisfy some human wants, such as food, shelter, clothing,
knowledge, comfort etc.

- Utility endows property with value susceptible of pecuniary estimation.

2. Substantivity or Individuality

– the quality of having existence apart from any other thing.

 - Example: parts of a human being such as hair, blood and teeth cannot exist on
their own independent of the human body, they become property only when
separated from the body of the person to whom they belong.

3. Appropriability

- Susceptible of being possessed by men.

Example of things not capable of appropriation: sunlight, air and the
ocean.

a. Common things (res communes)

not capable of appropriation in their entirety although they may be appropriated under
certain conditions in a limited way and thereby become property in law. (electricity,
oxygen, distilled water)

b. A thing belonging to no one (Res nullius)

a thing may have no owner because it has not yet been appropriated or because it has
been lost or abandoned by the owner (wild animals, hidden treasures)

It will constitute as a property as long as it is susceptible of being possessed for the use
of man.

c. A thing cannot be considered as property when they are not susceptible of

appropriation because of a.) physical impossibility such as the sun and the moon and
other heavenly bodies, b.) legal impossibility such as the human body while the person is
still alive as it is outside the commerce of man.

However under certain conditions, the body of a person or parts thereof may be the
subject matter of a contract (ex. Donation of blood, posing as a model)

Rights as Property

- Is used sometimes to denote the thing with respect to which legal relations
between persons exist – the res over which rights may be exercised – and
sometimes to the rights with respect to the thing.
 Real Rights

- Is the right or interest belonging to a person over a specific thing without a

definite passive subject against whom such right may be personally enforced.

Sometimes called as “Jus in re” – referred to as a real right or right in rem, a right in property,
known as an interest under common law.

Personal Rights

- Right or power of a person (creditor or oblige) to demand from another(debtor

or obligor) as a definite passive subject, the fulfillment of the latter’s
obligation.

Sometimes known as jus in personam or jus ad rem. Right of obligation, personal right has
the following elements:

1. Active Subject (person in whom the right residence)

2. Passive Subject (person against whom the right is available)
3. Object or Prestation ( conduct which must be observed by the debtor which may consist
in giving, doing or not doing)
4. Juridical or Legal Tie that which binds the parties to the obligation.

Classification of Property

Property may be classified as follows:

1. As to their nature:

a. Real
b. Personal
c. Mixed

REAL PROPERTY vs. PERSONAL PROPERTY

Enumerated in Article 415
(Immovable)
Generally, things that are
permanently or intended to be
permanently attached or fixed to
another, or cannot be transferred
from place to place, or they can be
Enumerated in Articles 416-417
(Movable & those considered as
Personal Property)
(opposite, same same)
Three test to determine if an object is
a movable property or not:
1. Whether the property can be
 transferred, the transfer cannot be
done without injury or damage to the transported or carried from place to
immovable to which they are attached, place;
2. Whether such change of location can
otherwise they are personal properties.
be made without injuring the immovable
to which the object may be attached;
3. Whether the object does not fall
within any of the ten cases enumerated
in Art. 415.
In real estate mortgage, which is not A personal right is regarded as a
registered in the Registry of Property, it personal property.
cannot be classified as immovable
property .
Per Mindanao vs. City Assessor Per Makati Leasing vs. Wearever
Textile
Real Property is subject to real property
tax Personal Properties are subject to chattel
mortgage.
Navarro v. Pineda, an immovable Personal properties are subject to
may be considered a personal seizure and writ of replevin (special
property if there is a stipulation as civil action)
when it is used as security in the
payment of an obligation where a
chattel mortgage is executed over
it.

Mixed Property

- Neither movable nor immovables but partake of the nature of both.

Among them are:

a. Movables that are rendered immovable by reason of being immobilized by destination or

through attachment to immovables. (ex. Machines, paintings)
b. Immovables that are treated as movables because they cannot be transplanted or
dismantled and moved to another place without impairing their substance. (ex. Plants)
c. Animals in animal houses, pigeon houses etc. which are classified as immovables though
transferable from place to place or they can move by themselves.
2. As to their ownership:

a. Public
b. Private

3. As to their divisibility:

a. Divisible (sack of rice)

b. Indivisible (car)

4. As to their consumability:

a. Consumable
b. Non-consumable

5. As to their susceptibility of substitution:

a. Fungible
b. Non-fungible

6. As to their alienability:

a. Within the commerce of man

b. Outside the commerce of men

7. As to their existence in time:

a. Existing or present
b. Future (ex. Ungathered crops)

8. As to their dependence or importance:

a. Principal (ex. Land on which a house is built)

b. Accessory (ex. House built on a land)

9. As to their definiteness or designation:

a. Generic
b. Specific
 10. As to their manifestability to the senses:

a. Corporeal (material things)

b. Incorporeal (rights)

Art. 415. Immovable Property

Property is immovable or real when:

a. by nature it cannot be carried from place to place, like lands, trees and roads. (par. 1 & 2)
land – immovable and real by nature
buildings – immovable and permanent (barong-barong is movable)
trees & plants – immovable by nature, annexed to the land and are parts thereof, owned by the
owner of the land.
growing fruits – may be treated as personal property, it is understood that they are to be gathered
or harvested for delivery, and upon so they are no longer attached to the land.
b. by incorporation it is attached to an immovable in a fixed manner to be an integral part
thereof like buildings, walls, fences, statues and animal houses (par. 1-6)
c. by destination it is placed in an immovable for the utility it gives to the activity carried
thereon, such as machinery installed in a building or docks on a river. (par. 4-9)
d. by analogy it is also classified by express provision of the law because it is regarded as
united to the immovable property (par. 10)

“construction of all kinds adhered to the soil” – example: fences, slides in parks, road signs, lamp
posts

In an immovable property:
a. The objects must be placed by the owner (statutes, paintings,ornaments)
b. Intent to attach permanently is essential (par. 4) – they are immovable both by attachment
and by destination.

Animal houses (par. 6) – personal property. Can be moved from place to place without injury.
Fetilizers – immovable by destination, when they are actually used they form part as part of the
land. Hence, fertilizers kept in the barn are not yet immovable.
Mines & Quarries – immovable, but once severed they become movable because they are no
longer mines but minerals.
Movable Properties

Article 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 personalty; 

(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) 

Example: cars, furniture, books, money (though generic and fungible)

SUSCEPTIBLE OF APPROPRIATION

Generally, everything that can be transported from place to place are personal property.

fungible – depends upon the possibility of the property being substituted by others of the
same kind, not having a distinct individuality.

IMMOVABLE LEGALLY CONSIDERED AS MOVABLE

Chattel Mortgage Law - deals with movable or personal property as security for loans.
( example refrigerator)

FORCES OF NATURE

Air, electricity, gas, water, fire, heat when captured and manufactured are movable
property.

These are capable of appropriation by another.

Valuable article of merchandise/ commodity can be bought and sold like other personal
property.

DETACHABLE THINGS

Anything removable from real property, which when removed will not destroy the real
property.
Article 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) 

RIGHTS, OBLIGATIONS AND ACTIONS

Incorporeal personal rights – they have no physical existence but can be appropriated.

Example: collectible sum of money, payment for rentals/lease, an action for specific
performance.

Generally, rights are movable properties unless regarded by a specific law as

immovable.

SHARES OF STOCK

Shares of stock of corporation represent equities that may consists of real or property
properties, they are considered as intangible personal properties.

Kinds of movable or personal property

a. Those that are included in Art. 416-417

b. Property not included in Art. 415 such as:

Ships or vessels, irrespective of size

Interests in a business capable of appropriations and may thus be a subject of chattel mortgage
Semi-movables such as wild or domesticated animals
automobiles, books, jewelries
Businesses (since it is not included in the exclusive enumeration of real property)

c. Real property which are considered as personal property by special provision of law.

Ex. Growing crops – immovable but personal property and may be the object of chattel
mortgage. Gathering it render crops movable.

d. Forces of Nature

Electricity, gas, rays, heat, light, oxygen.

Can electricity be a subject of theft? Yes.
The true test of what is a proper subject of theft is whether the subject is capable of
appropriation by the another than the owner. Electricity is a valuable article of
merchandise bought and sold like a personal property and is capable of appropriation by
another.

e. In general all movable things.

Three test to determine if an object is a movable property or not:

1. Whether the property can be transported or carried from place to place;

2. Whether such change of location can be made without injuring the immovable to which the
object may be attached;
3. Whether the object does not fall within any of the ten cases enumerated in Art. 415.

f. Obligations and actions – are personal rights (personal rights are personal properties)

“property in law goes beyond objects and includes rights (material things/ corporeal and
incorporeal/rights”

ex. Promissory note – which gives the creditor the right to collect his credit
Demandable sums

g. Shares of stocks – can be a subject of chattel mortgage

h. Other incorporeal personal property – such as Intellectual property (copyrights, patents

trademarks)

Article 418. Movable property is either consumable or non-consumable. To the first class

belong those movables which cannot be used in a manner appropriate to their nature
without their being consumed; to the second class belong all the others. (337)

Consumable – movables which cannot be used in a manner appropriate to their nature

without being consumed.

Fungible – means those which can be substituted or replaced.

A movable property can be consumable and fungible at the same time. Ex. Basket of apple.

Consumables Non-Consumables
Ex. Food, money
A commodity that is intended to be used A commodity that is not replaced
and replaced regularly. regularly and has an unpredictable life
expectancy.
 Cannot be the subject matter of a contract
of commodatum unless the purpose of the
contract is not the consumption of the
object, as it is merely for exhibition.

Under the old Civil Code (Art. 1545), “fungible things which are consumed by use cannot be the
subject matter of lease.’’ The movable is classified as fungible if, by the intention of the parties,
it can be replaced by another of the same kind.

Fungible Non-fungible

It can be substituted by another thing of Not replaceable.

the same kind, quality or quantity

Example:

Rice – by its nature is consumable but if the parties intend to display the rice, in a sense it is
non-fungible because an identical rice needs to be returned/preserved. If it is loaned for
consumption, then it is consumable and fungible.

Money – but its consumable in the sense that when it is used money leaves the owner who
thereby parts with it.
- money is fungible because the debtor needs only to return an equivalent amount in
case of a simple loan. Non-fungible if the agreement insist that the exact and literal money
be returned.

Obligation to deliver ten copies of a particular book – fungible but non-consumable.

CHAPTER 3
PROPERTY IN RELATION TO THE PERSON TO WHOM IT BELONGS

Art. 419. Property is either of public dominion or of private ownership. (338)

Regalian Doctrine – lands of the public domain belong to the State.

Land Registration Act of 1903 establishes the Torrens system – a system of registration by
which recorded title becomes absolute, indefeasible and imprescriptible.

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

(1) 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;
 (2) 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. (339a)

Example for public service: hospitals, gymnasium and schools.

Example intended for development of national wealth: market and hotels

Available to the public at all times but only to someone for certain purposes.

LGU’s property for public use consists of the provincial roads, cities, streets etc.

PROPERTY OF PRIVATE OWNERSHIP INTO THREE CATEGORIES

1. Patrimonial Property of the State (421-422) – property owned by the State in

their private capacity.
2. Patrimonial Property of the LGUs (424)
3. Property belonging to Private Individuals (425)

Art. 421. All other property of the State, which is not of the character stated in the
preceding article, is patrimonial property. (340a)

Art. 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. (341a)

Art. 423. The property of provinces, cities, and municipalities is divided into property for
public use and patrimonial property. (343)

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. 

All other property possessed by any of them is patrimonial and shall be governed by this
Code, without prejudice to the provisions of special laws. (344a)

Art. 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. (345a

PATRIMONIAL PROPERTY - Land ceases to possess the characteristics inherent in properties

of public dominion outside the commerce of man, cannot be acquired prescription and cannot be
registered under the land registration law.

Land owned by the State that is considered patrimonial, the land assumes the characteristics of a
private property.
Patrimonial Property and Private Property

By nature or use – both are not property of public dominion or imbued with public purpose.

By conversion will assume the nature of the property of public dominion by virtue of the State’s
use but which are no longer being used or intended for said purpose.

Three kinds of property of public dominion:

1. For public use (which may be used by anybody)
2. For public service (may be use only by certain duly authorized persons although used for the
benefit of the public)
3. For development of national wealth such as natural resources.

PUBLIC DOMAIN PRIVATE DOMAIN

Land of public domain – outside the
commerce of men
Cannot be leased, donated, sold or be the
object of any contract
Cannot be appropriated or inalienable thus
cannot be acquired through prescription and
cannot be registered under the Land
Registration Law

Properties of the State that do not have the aforementioned characteristics of a land of
public dominion are partrimonial property. Owned by the State in their private capacity in
order to attain economic ends.

(Deemed by the State to be alienable and disposable, susceptible to the commerce of man
through sale or lease assumes nature of a Patrimonial property)

Public Agri lands that are made alienable and disposable by the State are considered Patrimonial
properties.

Lands of public domain are, by default, owned by the State. The only classification of
land that may be subject to private ownership would be agricultural lands that are
classified as alienable and disposable lands. Forest and mineral lands cannot be the
subject of private ownership.

Alienable and disposable lands refer to those lands of the public domain which have
been the subject of the present system of classification and declared as not
needed for forest, mineral purposes or national parks.
How can alienable and disposable land be re-categorized? Through Congress.
Example reclassifying forests as agricultural land to be considered