Modes Of Acquiring Ownership d1ut

DIFFERENT MODES OF ACQUIRING OWNERSHIP Real right (jus in re) is a right belonging to a person over a specific thing, against whom such right may be personally enforced, whille 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 instestate 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 predeccessor 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.

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(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 (Arts. 721-724)

CREATION 2

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 2. Increase the patrimony 3. Intent to make a donation. (Animus donandi)

patrimony of

of

the the

donor. donee.

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 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.

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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 2. Able to dispose of his 3. Not be prohibited or disqualified by law from making the donation.

contracts. property.

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 s 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.

MODES OF ACQUIRING OWNERSHIP 

Ownership may be acquired by (Art 712): A. Original 1. Occupation 2. Intellectual Creation B. Derivative 3. Law 4. Donation 5. Succession 6. Tradition 7. Prescription

 OCCUPATION 

Things appropriable by nature may be acquired by occupation (Art 713), such as: 1. Animals that are the object of hunting and fishing :

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a. Right to hunt and to fish (Art 715) – regulated by special laws b. Swarm of Bees (Art 716)  Owner shall have a right to pursue them to another’s land, indemnifying possessor of such land for damages  If the owner does not pursue or ceases to do so, the possessor of the land may retain the same c. Domesticated Animals (Art 716)  Owner may claim them within 20 days from occupation by another person  After expiration, they shall pertain to the one who caught and kept them d. Pigeons and Fish (Art 717)  Pigeons and fish which from their breeding place to another place owned by another shall belong to the latter, provided they were not enticed by fraud 2. Hidden Treasure  One who discovers a hidden treasure by chance in another’s property (Art 718) – governed by Art 438, to wit: o Hidden treasure belongs the owner of the land, building or property where it is found o Finder, who is not a treser shall be given ½ thereof; treser shall not be entitled o If treasure found to be of interest to science or the arts, the State may acquire them at their just price to be divided based on provisions of law 3. Abandoned Movables (Art 719 – 720)  Whoever finds a movable which is not a treasurer must return it to its previous possessor  However, if possessor is unknown, the following shall be done: o Deposit such with the mayor of the city or municipality where found o Finding shall be publicly announced for 2 consecutive weeks o If movable cannot be kept without deterioration or expenses, it shall be sold at public auction 8 days after publication o If owner appears, he shall be obliged to reimburse expenses and one-tenth (1/10) of the price of the thing found o If no owner/possessor appears six months after publication, it shall be awarded to the finder with reimbursement of expenses 

Land cannot be acquired by occupation (Art 714)

 INTELLECTUAL CREATION 

The following acquire by intellectual creation (Art 721): 1. Author  With regard to his literary, dramatic, historical, legal, philosophical, scientific or other work  Shall have ownership even before publications; after publishing, rights are governed by Copyright Laws (Art 722) 2. Composer  As to musical composition  Shall have ownership even before publications; after publishing, rights are governed by Copyright Laws (Art 722) 3. Painter, sculptor or other artist  With respect to product of his art  Shall have dominion over their art even before being copyrighted (Art 722) 4. Scientist or technologist or any other person  With regard to discovery or invention  Has ownership of discovery and invention before it is patented (Art 722)

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Letters and other private communications (Art 723)  Owned by the person to whom they were addressed and delivered  Cannot be published or disseminated without consent of the writer or his heirs  Court may authorize publication or dissemination if public good or interest so requires

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Copyright and Patent (Art 724) – governed by special laws

 PRESCRIPTION  Definition (Art 1106)

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1. Acquisitive Prescription – where one acquires ownership and other real rights through the lapse of time 2. Extinctive Prescription – where rights and conditions are lost through the lapse of time Persons who may acquire by prescription 1. Those capable of acquiring property and rights by other modes (Art 1107) 2. Minors and incapacitated persons, either personally or through parents, guardians and representatives (Art 1107) 3. Creditors and other interested persons (Art 1114) – may make the prescription effective notwithstanding the renunciation of the debtor or proprietor Object of Prescription (Art 1113) : 1. All things within the commerce of men, unless provided otherwise 2. Property of the State or any of its subdivisions not patrimonial in character shall not be the object of prescription. Prescription runs against (Art 1108) : a. Minors and incapacitated persons who have parents guardians and legal representatives b. Absentees who have s either appointed by them or appointed by courts c. Persons living abroad, who have managers or s d. Juridical persons, except the State and its subdivisions Persons who are disqualified from istering their property may claim damages from their legal representatives whose negligence caused the prescription (Art 1108) Prescription runs against or in favor of a married woman (Art 1110) Prescription does not run against : 1. Husband and wife, even if there be a separation of property by marriage settlements or by judicial decree (Art 1109) 2. Parents and children, during the minority or insanity of the latter (Art 1109) 3. Guardian and ward during the continuance of the partnership (Art 1109) Prescription obtained by a co-proprietor or co-owner shall benefit the others (Art 1111) Renunciation of the right to prescribe 1. Persons with capacity to alienate property may renounce (Art 1112) 2. Prescription already obtained may be renounced, but not the right to prescribe in the future (Art 1112) 3. Tacit renunciation (Art 1112) – deemed when such results from acts which imply the abandonment of such 4. Creditors and other interested persons may make the prescription effective notwithstanding the renunciation of the debtor or proprietor (Art 1114) Governing Laws 1. Provisions herein is without prejudice to the other provisions and in the special laws with respect to specific cases of prescription (Art 1115) 2. Prescription already running before effectivity of this Code shall be governed by laws previously in force; however, if since effectivity of this Code, the entire period required for prescription should elapse, the present code is applicable, even though the former law requires a longer period (Art 1116)

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 PRESCRIPTION OF OWNERSHIP AND OTHER REAL RIGHTS (Acquisitive Prescription) 1. Kinds of Prescription (Art 1117) : a. Ordinary –  Requires possession of things in good faith and with just title o Good Faith  Consists in the reasonable belief that the person from whom he received the thing was the owner and could transmit ownership (Art 1127)  Requires possession in Art 526, 527, 528 and 529 o Just Title  Exists when the adverse claimant came into possession of the property through one of the modes recognized by law, but the grantor was not the owner or could not transmit any right (Art 1129)  Such title must be true and valid (At 1130)  Just title must be proved, it is never presumed (Art 1131)  Possession has to be in concept of an owner, public, peaceful and uninterrupted (Art 1118)  Possession in virtue of license or by mere tolerance of the owner shall not be a available for the purpose of possession (Art 1119) b. Extraordinary 2. Interruption of Possession (Art 1120) a. Natural Interruption (Art 1121)  When such should cease for more than one year  The old possession shall not revive if new possession by the same adverse claimant  If natural interruption if for one year or less, such shall be counted in favor of the prescription (Art 1122) b. Civil Interruption  Produced by judicial summons (Art 1123)  The following judicial summons does not interrupt possession (Art 1124), where : o It is void for lack of legal solemnities o The plaintiff should desist from the complaint or should allow the proceedings to lapse o The possessor be absolved from the complaint ***In these cases, interruption shall be counted for the prescription c. Express or tacit recognition by the possessor of the owner’s rights also interrupts possession (Art 1125) d. Possession in war time, when civil courts are not open, shall not be counted in favor of the adverse claimant (Art 1136) 3. Prescription cannot take place: a. Where a title is recorded in the Registry of Property and to the prejudice of a third person, except in virtue of another title also recorded, the time shall begin to run from the recording of the latter (Art 1126) b. By an offender when movables are possessed through a crime (Art 1133) 4. Table of Acquisitive Prescription through Uninterrupted Possession Codal Provision Property Prescriptive Period 4 years uninterrupted possession in good faith (ordinary prescription) Art 1132 Ownership of Movables 8 years of uninterrupted possession without need of any other condition (extraordinary

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prescription) 10 years (ordinary prescription)

Art 1134

Art 1137

Ownership and Real rights over immovable property

30 years of uninterrupted adverse possession, without need of title or good faith (extraordinary prescription)

5. As to right to recover personal property lost/illegally deprived or acquired in a public sale, fair or market or from a merchant’s store (Art 1132) – apply Art 559 and 1505. 6. Where adverse claimant possesses by mistake an area greater or less that expressed in his title, prescription shall be based on the possession (Art 1135) 7. Rules for computation of time necessary for prescription (Art 1138) a. The present possessor may complete the period necessary for prescription by tacking his possession to that of his grantor or predecessor in interest; b. It is presumed that the present possessor who was also the possessor at a previous time has continued to be in possession during the intervening time, unless there is proof to the contrary; c. The first day shall be excluded and the last day included.

 PRESCRIPTION OF ACTIONS (Extinctive Prescription) 1. Actions prescribe by mere lapse of time fixed by law (Art 1139) 2. Table of Prescription of Actions Codal Actions subject of Prescription Provision Recover movables Art 1140

Prescription Period

Art 1141

Real actions over immovables

8 years from the time possession is lost 30 years

Art 1142

Mortgage action

10 years

Art 1143

Art 1144 Art 1145 Art 1146 Art 1147 Art 1149

Easements: 1. To demand a right of way 2. To bring action to abate a public or private nuisance 1. Upon written contract 2. Upon an obligation created by law 3. Upon a judgment 1. Upon an oral contract 2. Upon a quasi-contract 1. Upon an injury to the rights of the plaintiff 2. Upon a quasi-delict 1. Forcible entry and detainer; 2. For defamation All other actions

No prescriptive period

10 years from time the right of action accrues 6 years 4 years 1 year 5 years from the time the right of action accrues

3. When prescription accrues :  General Rule : From the day they may be brought (Art 1150)

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Exception : o Where there is a special provision of law which provides otherwise (Art 1150) o Other exceptions Codal Action When Prescription Accrues Provision Enforcement of obligation to pay From the last payment of annuity Art 1151 principal with interest or annuity or of the interest Fulfilment of obligation declared by From the time the judgment Art 1152 a judgment became final From the day the persons who Demand ing should render the same cease in their functions Art 1153 From the date when said result Action arising from the result of the was recognized by agreement of ing the interested parties

4. Interruption of prescription period occurs where: a. The obligee was prevented by a fortuitous event from enforcing his right (Art 1154) b. Actions are filed before the court (Art 1155) c. There is a written extrajudicial demand by the creditors (Art 1155) d. There is a written acknowledgment of the debt by the debtor (Art 1155)

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