II E. Possession

Question 1

Requisites of Possession (P-A-V-E)

Question 2

Possession in the concept of holder —

Answer 2

possessor acknowledges that another is an
owner (e.g. usufruct, lessee, depositary,
bailee in commodatum)

Question 3

Effects of Possession in the Concept of
Owner

Answer 3

1. May be converted into ownership through
   acquisitive prescription

Movables: 4 or 8 years
Immovables:10 or 30 years

o Imprescriptible when there is
Torrens certificate title over land

2. Bring actions necessary to protect
   possession;
3. Ask for inscription of possession;
4. Demand fruits and damages from one
   unlawfully detaining property.

Question 4

Relevance of Good Faith and Bad Faith p. 73 & 75 Ateneo

Question 5

4. Rules for Movables p. 666

Answer 5

1. Possession of movables acquired in good faith is equivalent to title. (Art. 559)
   ▪ REQUISITES:
   (a) possession is in good faith,
   (b) the former owner voluntarily parted with the possession of the thing, and
   (c) possession is in the concept of owner
2. One who lost any movable or has been unlawfully deprived81 thereof may recover it from the person in possession of the same. (Art. 559, 1st para.)

▪ EXCEPTION: However, the owner who lost a movable cannot recover the same, if the possessor thereof:
(a) is a buyer in good faith;82
(b) has acquired it in good faith at a public sale, unless he reimburses the price paid therefor (Art. 559, 2nd para.),
(c) purchased it in a merchant’s store, fairs or markets (Art. 1505),
(d) purchased it in good faith from one who has voidable title thereto, which has not been annulled at the time of sale, or
(e) has become the owner of the thing through acquisitive prescription.

Question 6

Possessor in the Concept of owner; definition

Answer 6

A possessor in the concept of an owner may be the owner himself or one who claims to be so. The concept of owner, refers to the opinion or belief of the neighbors and the rest of the world and not that of the possessor. Consequently, even if the possessor is aware that that there is a flaw in his title resulting in its invalidation (in which case he becomes a possessor in bad faith), so long as he claims ownership of the property and does not acknowledge in another a superior right, he is nonetheless considered a possessor in the concept of owner.

Question 7

Possessor in the Concept of Holder

Answer 7

One who possesses as a mere holder acknowledges in another a superior right which he believes to be ownership, whether his belief be right or wrong. In the case of possessors in the concept of holder who are as such by virtue of a juridical title or right, e.g., lessee, usufructuary, etc., they are considered as possessors in the concept of holder with respect to the thing itself, but considered as possessors in the concept of owner with respect to their right. (Rabuya, Property, 2008, p. 389)

Question 8

Possessor in GF; dEFINITION

Answer 8

He is deemed a possessor in good faith who is not aware that there exists in his title or mode of acquisition any flaw which invalidates it. He is deemed a possessor in bad faith who possesses in any case contrary to the foregoing.

Mistake upon a doubtful or difficult question of law may be the basis of good faith. (Art. 526, NCC) Good faith is always presumed, and upon him who alleges bad faith on the part of a possessor rests the burden of proof. (Art. 527, NCC)

Possession acquired in good faith does not lose this character except in the case and from the moment facts exist which show that the possessor is not unaware that he possesses the thing improperly or wrongfully. (Art. 528, NCC)

It is presumed that possession continues to be enjoyed in the same character in which it was acquired, until the contrary is proved. (Art. 529, NCC)

Requisites for possession in good faith (Art. 526, NCC):

a. the possessor has a title or mode of acquisition;

b. There is a flaw or defect in said title or mode which invalidates it; and,

c. The possessor is unaware of the flaw or defect, or believes that the thing belongs to him.

Question 9

Relevance of Good Faith v. Bad Faith

1. Deterioration or Loss

Answer 9

▪ Possessor in good faith - not liable, unless he acted with fraudulent intent or negligence, after judicial summons

▪ Possessor in bad faith - liable in every case, even if caused by fortuitous event

Question 10

Relevance of Good Faith v. Bad Faith; FRUITS

Answer 10

Fruits

For Possessors in Good Faith:
Entitled to fruits received before possession is
legally interrupted (natural and industrial —
gathered or severed; civil — accrue daily)
(Art.544)

For Possessors in Bad Faith
If at the time good faith ceases, there are natural
or industrial fruits:
1. Entitled to part of net harvest and part of
expenses of cultivation (proportionate to
time of possession)
2. Owner has option to require possessor to
finish cultivation and gathering of fruits and
give net proceeds as indemnity for his part
of expenses; If possessor in good faith
refuses — barred from indemnification in
other manner (Art. 545)

Question 11

Relevance of GF/BF

Answer 11

Indemnity for Expenses/ Improvements
For Possessors in Good Faith:

1. Right to be reimbursed for useful expenses
   with right of retention; owner has option of
   paying expenses or paying the increase in
   value of property which thing acquired by
   reason of useful expenses
2. May remove improvements if can be done
   w/o damage to principal thing - unless owner
   exercises option of paying; possessor in bad
   faith not entitled. (Art. 546 & 547)

Question 12

Summary of Relevance p. 371 AUSL