WHAT ARE THE DIFFERENT MODES OF
ACQUIRING OWNERSHIP? (ATTORNEYS of
the PHILIPPINES)
Property ownership and rights can be acquired
by intestate succession, by donation, by law, by
estate and even by tradition. If ownership and
other real rights have been acquired through
occupation, intellectual creation and
prescription, it means that such an ownership
is original. On the other hand, if ownership has
been acquired by law, by donation, by intestate
succession and by other consequences such as
tradition, the ownership will be considered
derivative.  forms a degree. (915)
Original ownership means that the ownership
has been created for the first time of an
individual who does not have predecessor with
respect to the title. Derivative ownership refers
to the ownership where the property is
transferred from one person to another.  of degrees among persons who are not
SECTION 1. – General Provisions
Art. 960. Legal or intestate succession takes
place:
(1) If a person dies without a will, or with a
void will, or one which has subsequently
lost its validity;
(2) When the will does not institute an heir
to, or dispose of all the property
belonging to the testator. In such case,
legal succession shall take place only with
respect to the property of which the
testator has not disposed;
(3) If the suspensive condition attached to
the institution of heir does not happen or
is not fulfilled, or if the heir dies before
the testator, or repudiates the inheritance,
there being no substitution, and no right
of accretion takes place;
(4) When the heir instituted is incapable of
succeeding, except in cases provided in this
Code. (912a)
Art. 961. In default of testamentary heirs, the
law vests the inheritance, in accordance with
the rules hereinafter set forth, in the legitimate
and illegitimate relatives of the deceased, in
the surviving spouse, and in the State. (913a)
Art. 962. In every inheritance, the relative
nearest in degree excludes the more distant
ones, saving the right of representation when it
properly takes place.
Relatives in the same degree shall inherit in
equal shares, subject to the provisions of article
1006 with respect to relatives of the full and
half blood, and of Article 987, paragraph 2,
concerning division between the paternal and
maternal lines. (912a)
SUBSECTION 1. – Relationship
Art. 963. Proximity of relationship is determined
by the number of generations. Each generation
Art. 964. A series of degrees forms a line, which
may be either direct or collateral.
A direct line is that constituted by the series of
degrees among ascendants and descendants.
A collateral line is that constituted by the series
ascendants and descendants, but who come
from a common ancestor. (916a)
SUBSECTION 2. – Right of Representation
Art. 970. Representation is a right created by
fiction of law, by virtue of which the
representative is raised to the place and the
degree of the person represented, and acquires
the rights which the latter would have if he
were living or if he could have inherited. (942a)
SECTION 2. – Order of Intestate Succession
SUBSECTION 1. – Descending Direct Line
Art. 978. Succession pertains, in the first place,
to the descending direct line. (930)
Art. 979. Legitimate children and their
descendants succeed the parents and other
ascendants, without distinction as to sex or
age, and even if they should come from
different marriages.
An adopted child succeeds to the property of
the adopting parents in the same manner as a
legitimate child. (931a)
SUBSECTION 2. – Ascending Direct Line
Art. 985. In default of legitimate children and preceding article, the pertinent provisions of
descendants of the deceased, his parents and
ascendants shall inherit from him, to the
exclusion of collateral relatives. (935a) the Rules of Court must be observed. (958a)

Art. 986. The father and mother, if living, shall

inherit in equal shares.
Should one only of them survive, he or she
shall succeed to the entire estate of the child.
(936)

SUBSECTION 3. – Illegitimate Children

Art. 988. In the absence of legitimate

descendants or ascendants, the illegitimate
children shall succeed to the entire estate of
the deceased. (939a)

Art. 989. If, together with illegitimate children,

there should survive descendants of another
illegitimate child who is dead, the former shall
succeed in their own right and the latter by
right of representation. (940a)

SUBSECTION 4. – Surviving Spouse

Art. 995. In the absence of legitimate

descendants and ascendants, and illegitimate
children and their descendants, whether
legitimate or illegitimate, the surviving spouse
shall inherit the entire estate, without prejudice
to the rights of brothers and sisters, nephews
and nieces, should there be any, under article
1001. (946a)

SUBSECTION 5. – Collateral Relatives

Art. 1003. If there are no descendants,

ascendants, illegitimate children, or a surviving
spouse, the collateral relatives shall succeed to
the entire estate of the deceased in accordance
with the following articles. (946a)

SUBSECTION 6. – The State

Art. 1011. In default of persons entitled to

succeed in accordance with the provisions of
the preceding Sections, the State shall inherit
the whole estate. (956a)

Art. 1012. In order that the State may take

possession of the property mentioned in the
DIFFERENT MODES OF ACQUIRING
OWNERSHIP (attyrcd)
Real right (jus in re) is a right belonging to a
person over a specific thing, against whom
such right may be personally enforced, while
personal right (jus ad rem) is a right belonging
to a person to demand from another, the
fulfillment of a prestation to give, to do or not
to do.
Modes of acquiring ownership and other real
rights:
1. Occupation
2. Intellectual creation
3. Prescription
4. Law
5. Donation
6. Testate and intestate succession
7. In consequence of certain contracts, i.e.,
tradition.
The first 3 are original and the last four are
derivative. Original if the ownership is created
for the first time in the person of an individual
who has no predecessor with respect to the
title, and it is derivative if the ownership is
merely transferred from one individual to
another.
In law, independently of the other modes,
automatically and directly vests the ownership
of the thing in a certain individual once the
prescribed requisites or conditions are present
or complied with.
Examples:
1. Hidden treasures which a stranger discovers
by chance on another’s property. Hence, 1/2 of
the treasure belongs by right of occupation to
the stranger, while the other half belongs by
operation of law to the proprietor. (Art. 438)
2. Fruits naturally falling from a tree upon
adjacent land. Here, the ownership of the fruits
is vested automatically in the owner of the
adjacent land. (Art. 681)
Tradition is a derivative mode by virtue of
which they are transmitted from the patrimony
of the grantor to that of the grantee by means
of a just title, there being both the intention
and the capacity on the part of both parties.
Its requisites are:
1. Right to be transmitted should have
previously existed in the patrimony of the
grantor.
2. Transmission should be by virtue of a just
title.
3. Grantor and grantee should have the
intention and the necessary capacity to
transmit and to acquire.
4. Transmission should be manifested by some
act which may be physical, symbolical or legal.
Kinds of tradition:
1. Real is by delivery or transfer of a thing from
hand to hand if it is movable, or by certain
material and possessory acts of the grantee
performed in the presence and with the
consent of the grantor if it is immovable.
2. Constructive is by delivery of a movable or
immovable thing by means of acts or signs
thereof. This delivery may take place in the
following ways:
a. Traditio symbolica is by delivery of a
symbol representing the thing which is
delivered, such as the key to a warehouse.
b. Traditio longa manu by the grantor
pointing out to the grantee the thing which
is delivered which at the time must be
withing sight.
c. Traditio brevi manu is when the grantee
is already in possession of the thing under
a title which is not of ownership, such as
when the lessee purchases from the lessor
the object of the lease.
d. Traditio constitutum possessorium by the
grantor alienates a thing belonging to him,
but continues in possession thereof under a
different title, such as that of a lessee,
pledgee or depositary.
3. Quasi-tradicion is used to indicate the
exercise of a right by the grantee with the
acquiescence of the grantor, such as delivery
which may be made by the execution of a
public instrument with respect to incorporeal
property. (See Art. 1501)
4. Tradicion por ministerio de la ley is delivery
which takes place by operation of law, such as
by the registration of a deed of transfer of
titled land which is also the operative act in
order to bind innocent persons in such deeds.
OCCUPATION
(Arts. 713-720)
Occupation is a mode by the seizure of
corporeal things which do not have an owner
with the intention of acquiring them and in
accordance with the rules prescribed by law.
Its requisites are:
1. There must be a seizure or apprehension.
2. The thing seized must be corporeal.
3. The thing seized must be without any owner.
4. There must be an intention to acquire
ownership over the things.
5. There must be compliance with the rules
prescribed by law.
INTELLECTUAL CREATION
(Arts. 721-724)
Intellectual creation is a mode by virtue of
which the author acquires intellectual property
or ownership over the products of his intellect,
with the consequent power to authorize or
refuse publication or production of such
products.
DONATION
(Arts. 725-773)
Donation is an act of liberality whereby a
person disposes gratuitously of a thing or right
in favor of another, who accepts it. (Art. 725) It
is when the gift imposes upon the donee a
burden which is less than the value of the
thing given. (Art. 726)
Its requisites:
1. Decrease or reduction of the patrimony of
the donor.
2. Increase the patrimony of the donee.
3. Intent to make a donation. (Animus donandi)
Kinds of donations:
AS TO EFFECTIVITY –
1. Donation inter vivos are those which take
effect independently of the donor’s death.
a. Simple
b. Remunerative is where a person gives to
another on account of services rendered by
the latter to the former, provided that they
do not constitute a demandable debt.
c. Onerous is where a person gives to
another in consideration of demandable
debt.
2. Donation mortis causa are those which are
effective upon the donor’s death and must
therefore be governed by the rules of
testamentary succession. (Art. 728) Thus, the
donation is revocable at will. (Q3, 1990 Bar)
Characteristics of a donation mortis causa:
a. Convey no title or ownership to the
transferee before the death of the
transferor.
b. That before his death, the transfer should
be revocable by the transferor at will, ad
nutum.
c. The transfer should be void if the
transferor should survive the transferee.
The right to dispose of some of the things
donated, or of some amount which shall be a
charge thereon, may be reserved by the donor;
but if he should die without having made use
of this right, the property or amount reserved
shall belong to the donee. (Art. 755) (Q3, 1990
Bar)
AS TO PERFECTION OR EXTINGUISHMENT –
1. Pure donations are those which are
immediately demandable.
2. Donation with a condition are those whose
effectivity are subordinated to the fulfillment or
non-fulfillment of a future and uncertain fact or
event.
3. Donation with a term are those whose
effectivity or extinguishment is subject to the
expiration of a term or period.
The donation inter vivos is perfected from the
moment the donor knows of the acceptance by
the donee. (Art. 734)
In order that a person can make a donation, 3
requisites are necessary. They are:
1. Capacity to enter into contracts.
2. Able to dispose of his property.
3. Not be prohibited or disqualified by law
from making the donation.
In order that a person can accept a donation,
only one requirement is necessary, that, he
must not be prohibited or disqualified by law
from accepting the donation.
Donor’s capacity shall be determined as of the
time of the making of the donation. (Art. 737)
The following donations are prohibited by law,
among others:
1. Those made by persons who were guilty of
adultery or concubinage at the time of the
donation.
2. Those made between persons found guilty
of the same criminal offense, in consideration
thereof.
3. Those made to a public officer or his wife,
descendants and ascendants, by reason of his
office. (Art. 739)
4. Those made by a ward to the guardian
before the final accounts of the guardianship
have been approved, unless the guardian is an
ascendant, descendant, brother or sister.
5. Those made by the spouses to each other
during the marriage, or to the persons of
whom the other spouse is a presumptive heir.
DIFFERENT MODES OF ACQUIRING
OWNERSHIP (alburolaw)
There are three kinds of things, depending on
the nature of their ownership:
res nullius (belonging to no one)
res communes (belonging to everyone)
res alicujus (belonging to someone)
abandoned movables, are acquired by
occupation.
However, the ownership of a piece of land
cannot be acquired by occupation.
2. Creation or work (intellectual creation)
II. Derivative modes, when somebody else was
the owner before. It includes:

Res Nullius – These things belong to no one, 1. Succession or through inheritance;

and the reason is that they have not yet been
appropriated, like fish still swimming in the
ocean, or because they have been abandoned
(res derelictae) by the owner with the intention
of no longer owning them.
Res Communes – While in particular no one
owns common property, still in another sense,
res communes are really owned by everybody
in that their use and enjoyment are given to all
of mankind.
Examples would be the air we breathe, the
wind, sunlight, and starlight.
Res Alicujus – These are objects, tangible or
intangible, which are owned privately, either in
a collective or individual capacity.
2. Donation, as when a parcel of land is given
gratuitously and accepted and in a public
instrument;
3. Prescription, as when ownership of land is
acquired by adverse possession for the period
of time required under the law, provided the
necessary legal conditions or requisites are
present; e.g accession, fruits naturally falling on
adjacent land
4. Law
5. Tradition, as a consequence of certain
contracts (like the contract of sale, barter,
assignment, simple loan or mutuum).
A perfected sale does not transmit ownership.
It is the delivery or tradition which conveys
ownership.

Examples: shares of stock, parcel of land.

Under the Civil Code:

“Ownership is acquired by occupation and

by intellectual creation.

Ownership and other real rights over

property are acquired and transmitted by
law, by donation, by testate and intestate
succession, and in consequence of certain
contracts, by tradition.
They may also be acquired by means of
prescription.

Thus, ownership may be acquired by:

I. Original modes, which is independent of any

pre-existing or preceding title or right of
another. It includes:

1. Occupation
Things appropriable by nature that are without
an owner, such as animals that are the object
of hunting and fishing, hidden treasure, and
OWNERSHIP
 Ownership is an independent and general
right of a person to control a thing
 Ownership may be exercised over things or
rights
 The owner of a thing cannot make use of
the same in such manner as to injure the
rights of another person
Ownership over a thing or right entitles a
person to control the same and to exclude
others from the enjoyment of said thing or
right. Otherwise, one cannot fully appreciate
his ownership over a thing or right if he cannot
exclusively control and enjoy a particular thing
or right.
For instance, Jose Mari lawfully purchased a
parcel of land located along Camdas Road.
Once it is indisputable that Jose Mari is the
real and lawful owner of the said parcel of
land, what are the things can he do regarding
his parcel of land?
The law says:
Every owner may enclose or fence his land or
tenements by means of walls, ditches, live or
dead hedges, or by any other means without
detriment to the nearby properties or people
who may happen to use the premises beside
or near the land.
Generally, the following are the rights of an
owner over his property:
1. Right to posses
2. Right to use and enjoy
3. Right to receive fruits and accessories
4. Right to abuse and consume
5. Right to dispose or alienate
6. Right to recover possession and/or
ownership
7. Right to Construct any work or make
plantation or excavation
8. Right to have ownership of the
Hidden treasures found in the
property
9. Right to exclude others; and
10. Right to fence the property.
However, please bear in mind that ownership is
not without limitations. While the owner may
enjoy any, some, or all of the above-mentioned
rights, such should be exercised in good faith
and in such a manner that it will not injure the
rights of another.
In the example above, Jose Mari cannot
enclose his whole parcel of land by putting up
some fence if it would deny the owners of the
nearby parcels of land to access and use their
properties.
In this case, Jose Mari is obliged by law to
open a certain part of his land from where an
entrance and exit point from and to the nearby
properties would be allowed. In the same
manner, the owners of the nearby properties
have no freedom to choose which part of Jose
Mari’s land should be used for entrance or exit
(this is called easement). This is because the
right of Jose Mari being the owner of the said
parcel of land is being recognized by law. In
this case, imposing an easement on the
property of Jose Mari is another issue that can
be discussed in a separate article.
Are there any other limitations?
The law says:
Yes.
The owner of a thing has no  right to prohibit
the interference of another with the same, if
the interference is necessary to avert an
imminent danger and the threatened damage,
compared to the damage arising to the owner
from the interference, is much greater. The
owner may demand from the person benefited
indemnity for the damage to him.
For instance, house C and situated between
house B and D. House B is currently being
consumed by fire. The only way to save house
B from being totally consumed by fire is to
gain access from house C. Unfortunately, there
was no one in house C. But someone called
the owner of house C to seek permission from
destroying a part of the house in order to gain
entrance and save house B. Otherwise, house B
would be totally burned and might affect the
nearby houses other than house C and D.  In
this case the owner of house C cannot decline
the request of the caller and cannot prohibit
the interference of the use his
property. However, the owner of house C is
lawfully entitled to demand indemnity from the
owner of house B or from the owner of other
properties that were benefited from the
destruction of a part of his house.

Also, it is important to note that no person is

to be deprived of his property except  by
competent authority and for public use and
always upon payment of just compensation.
This is called expropriation.

Furthermore, a person who alleges to be the

true owner of a property must resort to judicial
process for the recovery of the property. 
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