What is property?
All things which are, or may be, the object of appropriation.
[Art. 414, CC]
What cannot be considered as property?
Things cannot be considered as property when they are not susceptible of appropriation because of physical impossibility (i.e., sun and moon) or legal impossibility (i.e., live human body). [de Leon]
What are the different basis of classification of Property?
- based on mobility
- based on ownership/rights-holder
- based on consumability
- based on susceptibility to substitution
- hidden treasure
- based on the constitution
What are the classification of property based on mobility?
a. Real or Immovable Property
b. Personal or Movable
What are the types of immovable property?
Immovables by nature
Immovables by incorporation
Immovables by destination
What properties are considered immovables by nature?
cannot be moved from place to place; their intrinsic qualities have no utility except in a fixed place.
- Land, buildings, roads, and constructions of all kinds adhered to the soil [415 (1)]
- Mines, quarries, and slag dumps, while the matter thereof forms part of the bed, and waters either running or stagnant. [415 (8)]
When is a Building treated as personal property?
Doctrine of Estoppel
Parties may by agreement (e.g. as a chattel mortgage) treat buildings as movables, effective only as to them, but void if rights of third persons are involved. It is based, partly, upon the principle of estoppel. [Tumalad v. Vicencio, G.R. No. L-30173 (1971); Evangelista v. Alto Surety, G.R. No. L-11139 (1958)]
What properties are considered immovable by incorporation?
movables but are attached to an immovable in such a way as to be an integral part [Pars. 2, 3, & 7]
- Trees and plants: only immovables when they are attached to the land or form an integral part of an immovable. Note: By special treatment of Act 1508 (Chattel Mortgage Law), growing crops may be subject of a Chattel Mortgage. For the purpose of attachment: growing crops are to be attached in the same manner as realty. [Sec. 7, Rule 59]
- Everything attached to an immovable in a fixed manner, in such a way that it cannot be separated therefrom without breaking the material or deterioration of the object. Note: Whether attached by the owner himself or some other person
- Fertilizer actually used on a piece of land
What properties are considered immovables by destination?
essentially movables but by the purpose for which they have been placed in an immovable, partake of the nature of an immovable [Pars. 4, 5, 6 & 9]
- Statutes, reliefs, paintings,
- Machinery, receptacles, instruments or implements INTENDED by the OWNER of the tenement which tend directly to meet the needs of the said industry or works
- Animal houses
- Docks and structures which, though floating, are intended by their nature and object to remain at a fixed place on a river, lake, or coast (need not be placed by owner of land) [415 (9)]
What are the requisites for statutes, reliefs, paintings to be considered immovables by destination?
[Arts 416, 417, CC]
a. Placed by the owner or by the tenant (as agent);
b. With intention of attaching them permanently even if adherence will not involve breakage or injury.
c. Where the improvement or ornaments placed by the lessee are not to pass to the owner at the expiration of the lease, they remain movables for chattel mortgage purposes. [Davao Sawmill v. Castillo, G.R. No. L-40411 (1935)]
When does machinery etd. revert to to being immovables?
The moment they are separated, (from the immovable or from the industry or work in which they are utilized) they revert to being movables.
What are the requisites for machinery, receptacle, instruments, or implements to be considered immovable by destination?
a. Must be machinery, instruments, or implements
receptacles,
b. Placed by the owner or the tenant (as agent);
c. The machine, receptacle, instrument, implement must also be essential to the business (tend directly to meet the needs of industry or work) in order to be considered realty. [Mindanao Bus Co. v City Assessor, G.R. No. L-17870 (1962)]
Is machinery placed in a plant by a tenant not acting as agent of owner immobilized?
NO.
Machinery which is movable in its nature only becomes immobilized when placed in a plant by the owner of the property or plant, but not when so placed by a tenant, a usufructuary, or any person having only a temporary right, unless such person acted as the agent of the owner. [Davao Sawmill v. Castillo, G.R. No. L-40411 (1935)]
What are the requisites for animal houses to be consiidered immovable by designation?
a. Placed by the owner or the tenant (as agent);
b. With the intention of permanent attachment;
c. Forming a permanent part of the immovable.
What are the Categories of Movable properties?
- Everything not included in Art. 415 (by exclusion);
- All things that can be transported from one place to another without substantial injury to the immovable to which it is attached (by description) Unless expressly included in Art. 415 (Test by Exclusion is Superior)
- Real property which by any special provision of law is considered as a movable
- Forces of nature brought under the control of science (e.g. electricity, gas, heat, oxygen)
- Obligations and actions which have for their object movables or demandable sums (i.e. any credit)
- Shares of stock of agricultural, commercial and industrial entities, although they may have real estate (e.g. stock certificates of a corporation)
What are the classification of property based on ownership / rights-holder?
a. public dominion
b. private ownership
Are churches and other consecrated objects public? or private property?
Neither.
Churches and other consecrated objects are considered outside the commerce of man; they are considered neither public nor private property. (Tolentino)
What are properties of public dominion?
Property of public dominion is outside the commerce of man. They cannot be the subject matter of private contracts, cannot be acquired by prescription and they are not subject to attachment and execution nor burdened with a voluntary easement.
What is the difference between Public Dominion and Public Domain and Public Lands?
Public Dominion: Art. 420, CC
Public Domain: Used in Art XII, Section 2, 1987 Constitution
Public Lands: Public Land Act
What are the classification of property of public dominion?
- administered by the state
- administered by municipal corporations
What are properties of public domain administered by the state?
- Those intended for PUBLIC USE. (roads, canals, rivers, torrents, ports and bridges constructed by the State, banks, shores, roadsteads, and others of similar character)
- Those (w/o being for public use) and are intended for some PUBLIC SERCVICE: May be used only by authorized persons but exists for the benefit of all, e.g. fortresses, unleased mines and civil buildings.
- Those for the development of the NATIONAL WEALTH. Includes natural resources such as minerals, coal, oil and forest.
What is patrimonial property?
Owned by the State over which it has the same rights as private individuals in relation to their own property
What it the purpose of patrimonial property?
- Enables the State to attain its economic ends
- Serves as a means for the State’s subsistence and preservation
- Enables the State to fulfill its primary mission
Can patrimonial property be the subject of contracts?
YES.
Patrimonial Property is owned by the state and can be the subject of contracts.
