FUNDAMENTAL PROPERTY RIGHTS – HECTOR MIRAFLOR

Regalian Doctrine - All lands of the public domain as well as all natural resources enumerated therein
whether on public or private belong to the State. All lands are presumed to be owned by the State
unless clearly proven to be privately owned. Hence, all lands that have not been acquired from the
government, either by purchase or by grant, belong to the State as part of the inalienable public
domain.

Classification of Public Domain:

1. Agricultural land
2. Forest or timber lands 3. Mineral Lands
4. National Parks

Only the Agricultural Land are alienable and may further be classified by law, according to the uses it
may be devoted.

DEFINITION OF TERMS:

Land – Defined as the earth surface extending downward to the center of the earth and
upward to infinity, including things permanently attached by nature such as trees, water.

Real Estate - Defined as land at above and below the earth’s surface, including all things permanently
attached to it, whether natural or artificial.

Real Property – Defined as the INTEREST, BENEFITS, and RIGHTS inherent in the ownership of real
estate. It includes the physical surface of the land, what lies below it, what lies above it and what is
permanently attached to it, as well as the BUNDLE OF LEGAL RIGHTS.

Ownership - Is the independent right of a person to the exclusive enjoyment and control of a property
including its disposition and recovery subject only to the restrictions established by law and rights of
others.

Personal Property – Is defined as the movable items not permanently fixed to real estate. Generally, but
with exemptions, items remain personal property if they can be removed without sort us injury to the
real estate or the items themselves.

Fee Simple - is defined as the absolute right of ownership without limitations to any particular class of
heirs or restrictions, but subject to the limitation of the ESCHEAT, POLICE POWER, EMINENT DOMAIN &
TAXATION.

Property as a Bundle of Rights

The legal definition of property is, however, more expansive in that property includes all of a person's
rights or interests over an item, in addition to the thing itself.
The bundle of rights include the following:

1) Right to possess - Possession is the holding of a thing or the enjoyment of a right.

Two types of Possession:
Legal Possession – the owner exercises possession as the OWNER of the property.
Material Possession – exercise material or actual possession of a property.

2) Right to use and enjoy

3) Right to the fruits
4) Right to dispose
5) Right to vindicate or recover

Limitations on Right of Ownership

1. Those imposed in general by the State in the exercise of the following

a. Police Power – The government retains the right to relate property for promoting the public
safety, health, morals and general welfare. Zoning regulations or ordinances, building codes,
traffic regulations and sanitary regulations are based upon the police power of the government.

b. Eminent Domain – This is the right reserved by the government for public use/benefit upon
payment of just compensation. Or the right reserved by government to take by
expropriation/condemnation private property for public use upon payment of just
compensation.

c. Taxation – The government exercise power of taxation on real properties to raise funds for its
operations and services that protect and otherwise benefit citizenry. Services or benefits most
provided are schools, police and fire protection, parks, libraries, street maintenance, garbage
collection and welfare payment to elderly and needy.

d. Escheat – It is the reversion or automatic conveyance of realty to the government, upon owner’s
death, due to the absence of a will, heirs or other legal claimants ascertainable on the face of
the title; or when the owner does not pay his taxes.

2. Those imposed by law such as legal casement, requirement of legitimate in succession, zoning,
building code, rent control, urban and agrarian reform, subdivision regulations, escheat.

3. Those imposed by the grantor of the property on the grantee by contract, such as donation, last will,
usufruct.

4. Those imposed by the owner himself, such as voluntary casement, lease, mortgage.

Easements are established either by:

 Law or legal, will of the owners (voluntary easements)
 Continuous and apparent easements are acquired either by virtue of a: - Title or by prescription
of 10 years; Non-use also for 10 years is a cause for extinguishment of easement
 Art 649 – landlocked properties are entitled to right of way
  Fruits naturally falling upon adjacent land belong to the owner of said land. (Art. 681)

SURFACE, SUBSURFACE AND AIR RIGHT:

Land, in its legal signification, extends from the surface downwards to the enter of the earth and
extends upwards indefinitely to the skies.

The surface and subsurface of rights of an owner entitle him to construct thereon any works or make
any plantations and excavations without detriment to servitudes and special laws.

Air right is the right of an owner to use and control the air space over his land subject to the
requirements of aerial navigation, laws, or contract.

QUALIFICATIONS TO OWN REAL ESTATE:

Unless there are legally recognized exceptions, only Filipino citizens or domestic firms registered with
Securities and Exchange Commission with at least 60% Filipino ownership have the right to purchase
public and private domain lands.

a. Citizens at the time of adoption of 1987 constitution

b. Whose mothers and fathers are Filipino citizens
c. Born before January 17, 1973, of Filipino mothers who elect Ph citizenship
d. Naturalized Filipino (natural-born, dual citizens)
Any Filipino nationals who acquire citizenship in another nation are not considered to have lost their
Philippine citizenship in accordance with the terms of this Act (RA) NO.9225, August 29,2003).

1. Retention of Philippine Citizenship

After taking the preceding oath, natural-born citizens of the Philippines who later acquire citizenship in
another nation maintain their Filipino citizenship. (Article 3 of RA 9225)

2. Derivative Citizenship
The under-18-year-old unmarried kid, whether biological or adoptive; Anyone who regain Filipino
citizenship after this Act takes effect must be treated as Filipino citizens. (Article 4 of RA 9225).

Ownership of land by Philippine corporations

The 60-40 Filipino-foreign ownership threshold outlined in the Constitution has since been strengthened
by subsequent legislation, administrative orders, and jurisprudence.

The Securities and Exchange Commission (SEC) applies the criteria to the following in order to evaluate if
the statutory 60% Filipino ownership is being met:

a. The total number of shares of stock in circulation that are eligible to vote in the election of directors
as well as other.
b. the total number of outstanding shares, whether or not they are eligible to vote in director elections.
Exception to the General Rule

For Alien or Foreign corporation, they can buy condominium units or townhouse units base on the
following cases:

1. Before the 1935 Constitution, property was acquired.

2. Hereditary succession is the method used to obtain property.
3. Property is purchased and forms part of the 40% ownership stake in a condominium building or
townhouse development covered by a condominium certificate of title.
4. A previously naturalized Filipino citizen who has lost his Philippine citizenship purchases
property.

Former naturally born Filipinos who have obtained citizenship in another nation may still purchase a
home in the Philippines:

RESIDENTIAL PURPOSE: 1 hectare of rural land and 1000 square meters of urban land.

BUSINESS PURPOSE: 3 hectares of rural land and 5000 square meters of urban land. In the wide sense of
agriculture, industry, and services, this refers to the use of land principally, directly, and actually in the
performance of business or commercial operations, including the leasing of property but excludes the
purchasing and selling of it.

KIND OF OWNERSHIP:
1. Sole ownership: undivided whole property interest
2. Co-ownership: a proportionate benefit of co-owner.
3. Diverse ownership: primary property interest is divided and the aggregate of the property rights
in the entity do not constitute the whole property interest
4. Condominium ownership: combination of sole and co- ownership

MODES OF ACQUIRING TITLE

1.) Private Grant – voluntary transfer or conveyance of private property by a private owner, such as
sale or donation.
2.) Public Grant – acquisition of alienable lands of the public domain by homestead patent, free
patent, sales patent, or other government awards.
3.) Involuntary Grant – acquisition of private party against the consent of the former owners, such
as foreclosure sale, execution sale, or tax sale
4.) Inheritance – acquisition of private property through hereditary succession Reclamation - filling
of submerged land, subject to existing laws and government regulations.
5.) Accretion – acquisition of more lands adjoining the banks of rivers due to the gradual deposit of
soil as a result of the river current
6.) Prescription – acquisition of title by actual, open, continuous, and uninterrupted possession in
the concept of owner for the period required by law
7.) Reclamation – Filling of submerged land, subject to existing laws and government regulations.
8.) Emancipation Patent – The grant of agricultural land to tenant-farmers in the implementation of
the land reform program of the government.
9.) Descent or Divise – May be acquired by virtue of hereditary succession to the estate of the
deceased owner. This requires a certain degree of relationship. In Divise, succession need not be
in favor of a relative. Title to the property is transferred by way of a will executed by the testator
(owner of the property)