Possession

a. Characteristics

i. Concept of Possession

Yu vs. Pacleb, G.R. No. 130316, January 24, 2007:

The Civil Code states that possession is the holding of a thing or the
enjoyment of a right. In the grammatical sense, to possess means to have, to
actually and physically occupy a thing, with or without right. "Possession
always includes the idea of occupation x x x. It is not necessary that the
person in possession should himself be the occupant. The occupancy can be
held by another in his name." Without occupancy, there is no possession.

Two things are paramount in possession. First, there must be occupancy,

apprehension or taking. Second, there must be intent to possess (animus
possidendi).

ii. Doctrine of Constructive Possession

 Does possession require actual occupancy of every square of the ground?

No. Possession in the eyes of the law does not mean that a man has to have his
feet on every square meter of the ground before he is deemed in possession. In
Ramos vs. The Director of Lands, G.R. No. 13298. November 19, 1918, the
Supreme Court explained the concept of constructive possession, thus:

[T]he possession and cultivation of a portion of a tract under claim of

ownership of all is a constructive possession of all, if the remainder is not
in the adverse possession of another.

Note however that the doctrine of constrictive possession does not apply where
the possession is without title.

iii. Degrees of Possession

1. possession without any title whatsoever

2. possession with juridical title

3. possession with just title sufficient to transfer ownership

4. possession with a title in fee simple

iv. Classes of Possession

1. Possession in concept of owner and possession in concept of holder (Article

(525)

Note: Concept is opinion, but not of the possessor himself; it is the opinion of the
others. It may also mean belief, but not of the possessor himself, it is the belief of
others.

PROPERTY/POSSESSION | Civil Law Review 1/vdv

 2. Possession by oneself, and possession in the name of another (Articles 524, 532)

3. Possession in good faith and possession in bad faith (Article 526)

Notes:

i. In distinguishing good faith and bad faith possession, the Code refers to
the manner of acquisition in general.

A possessor in good faith is one who is unaware that there exists a flaw
which invalidates his acquisition of the thing. On the other hand, one in
possession of property knowing that his title is defective is a possessor in
bad faith.

ii. Reconciling Article 526, 3rd par. vis-à-vis Article 3, NCC

GR: Ignorance of the law cannot be the basis of good faith

ER: Error in the application of the law, in the legal solutions that arise from
such application, in the appreciation of the legal consequences of certain
acts, and in the interpretation of doubtful provisions or doctrines may
properly serve as a basis for good faith (Article 526, 3rd par.)

b. Acquisition of Possession

i. Essential Requisites

The acquisition of possession involves two elements: the corpus and the animus. The
first is the material holding of the thing, and the second, the intent to possess it. There
must be concurrence of the two.

ii. Manner of acquiring possession

1. Material occupancy of the thing

- Note that constructive delivery may be considered as equivalent to material

occupation in those cases where such occupation is essential to the acquisition
of possession.
- Constructive delivery that is deemed equivalent to material occupation:
i. Tradicion brevi-manu – takes place when one who possesses a thing by
title other than ownership continues to possess the same but under a
new title, that of ownership
Ex. A lessee bought the leased the property
ii. Constitutum possessorium – takes when the owner alienates the
property, but continues to possess the same under a different title,
such as a lessee

2. Subjection to the action of our will

- This means of acquisition of possession includes the constructive delivery

known as tradicion simbolica and tradicion longa manu

PROPERTY/POSSESSION | Civil Law Review 1/vdv

 3. Proper acts and legal formalities established for acquiring such right.

iii. Rule of preference in case of dispute regarding possession

GR: Possession cannot be recognized in two different personalities.

ER: In case of co-possession. (Article 538)

Rules in case of dispute: (Article 538)

1. present/actual possessor shall be preferred

Citing Gaza vs. Lim, the Supreme Court in Yu vs. Pacleb ruled:

Where a dispute over possession arises between two persons, the person first
having actual possession is the one who is entitled to maintain the action
granted by law; otherwise, a mere usurper without any right whatever, might
enter upon the property of another and, by allowing himself to be ordered off,
could acquire the right to maintain the action of forcible entry and detainer,
however momentary his intrusion might have been.

ILLUSTRATION No. 1:

A is in actual possession of a piece of land, but during his temporary absence while
visiting a relative in another province, B enters the land by force and occupies it. B’s
act does not affect A’s possession; hence, A will be considered as the actual possessor
and will be preferred. (See Article 537)

2. if there are two possessors, the one longer in possession

ILLUSTRATION No. 2:

A and B occupy the same land; each one having constructed a house on one corner of
the land but asserting possession over the whole lot. A took possession of the lot in
1986, while B started occupying the land in 2000. Preference will be in favor of the one
who was first in taking possession. In the instant case, it would be A.

3. if the dates of possession are the same, the one with a title

ILLUSTRATION No. 3:

If A and B took possession at the same time, but A has taken possession without
permission from the owner, while B has a lease contract with the owner, the B will be
preferred; the lease contract is his title.

4. if all the above are equal, the fact of possession shall be judicially determined, and
in the meantime, the thing shall be placed in judicial deposit

c. Effects of Possession

PROPERTY/POSSESSION | Civil Law Review 1/vdv

 Possessor in good faith Possessor in bad faith

Fruits already Entitled to the fruits No right to receive any fruits:

gathered (Article 544) i. Those already gathered
  and existing will have to
be returned;
ii. With respect to the lost,
consumed, or which
could have been
received, he must pay
the value.
(Article 549)
 
Cultivation Right to be reimbursed for the
Expenses of expenses incurred (Article 443)
gathered fruits
Fruits pending The possessor in good faith is No right to receive any fruits.
entitled to a part of the net
harvest, in proportion to the time
of the possession. (Article 545)

Production The possessor in good faith shall No right to be reimbursed

expenses of have a right to a part of the (Article 449)
pending fruits expenses of cultivation, in
proportion to the time of the
possession.

As an indemnity for the

possessor’s part of the expenses
of cultivation and the net
proceeds, the owner has the
option:

(1) to pay; or
(2) give the possessor in good
faith the right to finish the
cultivation and gathering of
the growing fruits

Necessary Right to be reimbursed with right Right to be reimbursed without

expenses of retention (Article 546) right of retention (Article 546)

Useful 1. Right to be reimbursed with No right to be reimbursed

expenses right of retention (Article 546) (Article 546)
or

Note: The owner has the option

to reimburse the amount of the
expenses or pay the increase in
value of the thing.
2. Right to remove the useful
improvements ONLY IF it
will not cause damage to the
PROPERTY/POSSESSION | Civil Law Review 1/vdv
 principal thing AND the first
option was not exercised.
(Article 547)

Ornamental 1. Right to be reimbursed of the 1. Right to be paid of the value

expenses expenses incurred, if the at the time the owner or
owner OPTED to keep the lawful possessor enters
ornaments possession, if the latter
2. Right to remove the OPTED to keep the
improvements ONLY IF the ornaments
principal thing will not suffer 2. Right to remove the
injury AND the owner does improvements ONLY IF the
not choose to retain them principal thing will not
(Article 548) suffer injury AND the owner
or lawful possessor does not
choose to retain them
(Article 549)

Improvements No right to be reimbursed No right to be reimbursed

that no longer (Article 553) (Article 553)
existing
Liability for GR: Not liable Liable in all cases
accidental loss ER: If he/she acted has acted (Article 552)
or with fraudulent intent or
deterioration negligence, after the judicial
summons (Article 552)

Improvements Belongs to the owner or lawful Belongs to the owner or lawful

caused time or possessor possessor
nature (Article 551) (Article 551)

d. Loss or unlawful deprivation of a movable

i. General Rule: Possession of personal property acquired in good faith is equivalent to

title. Thus, when the personal property is in the possession of one who has acquired
and holds it in good faith, the true owner cannot recover it. (Article 559)

Requisites:
1. The possession is in good faith;
2. The owner has voluntarily parted with the possession of the thing; and
3. The possessor is in concept of owner.

ii. Exceptions:
(1) The owner has lost it; and
(2) The owner has been unlawfully deprived of the thing.

In these two instances, the owner can recover the thing. The possessor cannot retain
the thing as against the owner, who may recover it without paying any indemnity.

But if the possessor acquired the thing in a public sale, the owner must reimburse the
PROPERTY/POSSESSION | Civil Law Review 1/vdv
 possessor the price that he/she has paid. (Article 559, 2nd par)

iii. The rights and obligations of a finder of a lost movable under the Civil Code, cf
Article 719 and 720, NCC

Art. 719. Whoever finds a movable, which is not treasure, must return it to its previous
possessor. If the latter is unknown, the finder shall immediately deposit it with the mayor of
the city or municipality where the finding has taken place.

The finding shall be publicly announced by the mayor for two consecutive weeks in the way
he deems best.

If the movable cannot be kept without deterioration, or without expenses which considerably
diminish its value, it shall be sold at public auction eight days after the publication.

Six months from the publication having elapsed without the owner having appeared, the
thing found, or its value, shall be awarded to the finder. The finder and the owner shall be
obliged, as the case may be, to reimburse the expenses. (615a)

Art. 720. If the owner should appear in time, he shall be obliged to pay, as a reward to the
finder, one-tenth of the sum or of the price of the thing found. (616a)

e. Rights of the possessor

i. Presumptions in favor of possessor

1. Presumption of Good Faith – unless proof of bad faith is presented, the

possessor will be held to be in good faith. (Article 527)

Thus, so long as the possessor is not actually aware of any defect invalidating his
title or mode of acquisition, or any of the fact or circumstance which would put a
prudent man upon his guard, or require him to discover the flaw in his
transferor’s title, he shall be deemed a possessor in good faith.

2. Presumption of continuity of initial good faith (Article 528)

3. Presumption of enjoyment in the same character in which possession was
acquired until the contrary is proved (Article 529)
4. Presumption of non-interruption in favor of the present possessor (Article 543)
5. Presumption of continuous possession by the one who recovers possession of
which he was wrongfully deprived
6. Presumption of extension of possession of real property to all movables contained
therein (Article 542)

ii. Rights of a possessor

Art. 539. Every possessor has a right to be respected in his possession; and should he be
disturbed therein he shall be protected in or restored to said possession by the means
established by the laws and the Rules of Court.

A possessor deprived of his possession through forcible entry may within ten days from the
filing of the complaint present a motion to secure from the competent court, in the action for

PROPERTY/POSSESSION | Civil Law Review 1/vdv

 forcible entry, a writ of preliminary mandatory injunction to restore him in his possession.
The court shall decide the motion within thirty (30) days from the filing thereof. (446a)

Art. 540. Only the possession acquired and enjoyed in the concept of owner can serve as a
title for acquiring dominion. (447)

Art. 541. A possessor in the concept of owner has in his favor the legal presumption that he
possesses with a just title and he cannot be obliged to show or prove it. (448a)

g. Loss or termination of possession

What are the modes of losing possession? (Article 555)

1) By abandonment of the thing;
2) By an assignment made to another either by onerous or gratuitous title;
3) By 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 Art. 537, if the new possession
has lasted longer than one year. But the real right of possession is not lost till after the
lapse of 10 years;
5) By recovery or reivindication of the thing by the legitimate owner.

PROPERTY/POSSESSION | Civil Law Review 1/vdv

PROPERTY/POSSESSION | Civil Law Review 1/vdv