III.

QUIETING OF TITLE
 A. APPLICABILITY
1. Purpose.
Quieting of title is a remedy or action which may
be brought either

(a) to remove a cloud on the title to real

property or any interest therein, or
(b) to prevent a cloud from being cast
thereon. (Art. 476)

This remedy originated in equity jurisprudence, with

the purpose of securing an adjudication that a claim
of title to or interest in property, adverse to that of
the plaintiff, is invalid, so that the plaintiff and those
claiming under him may forever afterwards be free
from any danger or hostile claim. In an action to
quiet title, the court determines the respective rights
of the plaintiff and other claimants.
2. Cloud on title. A cloud on title
is any instrument, record, claim,
encumbrance or proceeding which may be
prejudicial to title to real property or any
interest therein, which is apparently
valid or effective but is in truth and in
fact invalid, ineffective, voidable or
unenforceable. (Art. 476)

There may also be an action to quiet title

or remove a cloud therefrom when the
contract, instrument or other obligation
has been extinguished or has terminated,
or has been barred by extinctive
prescription. (Art. 478).
a. As a general rule, a cloud is not created
by mere verbal or parol assertion of
ownership of or an interest in property.

Exception:

- where there is a written or factual basis for the

asserted right. Thus a claim of right based on
acquisitive prescription or adverse possession has
been held to constitute a removable cloud on title.
(See Tandog v. Macapagal, G.R. No. 144208,
September 11, 2007, citing Tolentino)

b. The cloud on title must have a prima

facie appearance of validity or legal
efficacy. It is a semblance of title which
appears in some legal form but which is
in fact unfounded. The invalidity or
inoperativeness of the instrument is not
apparent on the face of such
instrument, and has to be proved by
extrinsic evidence.
c. Examples of cloud on
title:

(1) A mortgage annotated on a

Torrens Title without the authority
of the registered owner (RECORD)

(2) A deed of sale or conveyance

executed by one who is not the
owner of the property sold
(INSTRUMENT)

(3) A levy of execution which had

already prescribed (PROCEEDING)
3. Plaintiff’s Interest

a. The plaintiff must have legal or equitable title to, or

interest in the real property which is the subject matter
of the action. (Art. 477)

b. The plaintiff need not be in possession of said property

(Art. 477)

(1) If, however, the plaintiff (claimant of the property) is in

actual possession, his action to quiet title is imprescriptible. He may
wait until his possession is disturbed or his title is attacked before
taking steps to vindicate his right.

(2) If the plaintiff is not in possession, his action to quiet title

(and for reconveyance) is subject to prescription. E.g., if it is based
on an implied trust, it prescribes in 10 years from registration of the
deed of conveyance or issuance of certificate of title.
QUESTION:

Is an action to Quiet Title proper in order to settle a land

boundary dispute?

ANSWER IN JURISPRUDENCE:

“An action to quiet title or to remove cloud may not be brought for
the purpose of settling a boundary dispute.”

(Vda. De Aviles vs. CA, G.R. No. 95748, November 21, 1996)
IV. CO-OWNERSHIP
 CONCEPT :

There is co-ownership
whenever the ownership
of an undivided thing or
right belongs to different
persons. (Art. 484)
 CONCEPT :

Does co-ownership remain if the parties (e.g.,

co-owners A, B and C) are determined to be
entitled to a certain percentage in the
property, say, A to 40%, B to 30% and C to
30%?
Each c0-owner holds an ideal portion or pro-
indiviso share, definite in amount, but not
physically or concretely identified. E.g., if a land is
co-owned in equal portions by A, B and C, each of
them holds 1/3 of the land, but they cannot claim a
specific portion of the land. Thus, A cannot claim
the western portion, or B cannot claim the northern
portion, and so on. The actual division will only
happen at partition.

As to his ideal portion, each co-owner shall have

full control and ownership. He may, therefore
alienate, assign or mortgage it, and even substitute
another person in its enjoyment, except when
personal rights are involved. (Art 493)
II. RIGHTS AND DUTIES OF CO-OWNERS

A. GENERAL RULE

1. Proportionality.

The share of the co-owners, in the benefits as well as

in the charges, shall be proportional to their respective
interests. (Art. 485)

a. Any stipulation in a contract to the contrary shall be void.

(Art. 485)

b. A co-owner may, however, waive benefits which have accrued

to him. This will be considered a donation.

2. Presumption of Equality.

The portions belonging to the co-owners in the co-ownership

shall be presumed equal, unless the contrary is proved. (Art. 485)
B. SPECIFIC RIGHTS AND DUTIES

1. Use of the Thing. Each co-owner may use the

thing owned in common, subject to the following conditions:

a. The use must be in accordance with the purpose for

which the thing is intended. (Art. 486)
- The purpose of the co-ownership may be changed by
agreement, express or implied. (Art. 486)

b. The use must be in such a way as not to injure the

interest of the co-ownership. (Art. 486)
- If the subject is a residential house, all the co-owners
may live there with their respective families to the extent possible.
 (1) If one co-owner alone occupies the entire house
without opposition from the other co-owners, and there is no lease
agreement, the other co-owners cannot demand the payment of rent.

(2) If there is an agreement to lease the house, the co-

owners can demand rent from the co-owner who dwells in the house.

c. The use of the property must not prevent the

other co-owners from using it according to their
rights. (Art. 486)
2. Ejectment. Any one of the co-owners may bring an action for ejectment.
(Art. 487)

a. This provision covers all kinds of actions for the recovery of possession:

forcible entry and unlawful detainer (accion interdictal),

recovery of possession (accion publiciana), and
recovery of ownership (accion de reivindicacion).

A co-owner may bring such an action without joining all the other co-
owners as co-plaintiffs because the suit is presumed to have been filed for
the benefit of all co-owners.

- If the plaintiff/co-owner claims to be the sole owner, the action should

be dismissed.

b. A co-owner may sue not only a third person, but also another co-owner
who takes exclusive possession and asserts exclusive ownership of
the property. The purpose of the action is to obtain recognition of the
co- ownership BUT not ejectment.
3. Redemption.

a. In case of redemption of a co-owned property which has been foreclosed or

sold a retro – the redemption by a co-owner inures to the benefit of all the
co-owners.

- If, however, the redemption period has already lapsed, a former co-
owner who purchases the property does so for his own behalf alone. At
the time of purchase, there is no longer any co-ownership to speak of.

b. In case of legal redemption under Art. 1620 (giving a co-owner the right to
redeem the shares of his co-owners sold to a third person, within 30 days
from written notice by the vendor) – the redemption inures to the benefit
only of the co-owner who exercises such right. This is implied from the
second paragraph of Art. 1620 which provides that if two or more co-
owners desire to exercise the right of redemption, they may only do so in
proportion to their respective shares in the co-owned property.

- Art. 1620 does not apply if the sale is made to another co-owner.
4. Expenses. Each co-owner shall have a right to compel the other co-
owners to contribute: (a) to the necessary expenses, or the expenses of
preservation of the thing or right owned in common and (b) to the taxes.
(Art. 487)

a. Renunciation: Any co-owner may exempt himself from this obligation to

contribute by renouncing so much of his undivided interest as may be
equivalent to his share of the expenses and taxes. (Art. 487)

- However, no such waiver shall be made if it is prejudicial to the co-

ownership. (Art. 487)

b. Repairs for preservation may be made at the will of one of the co-owners,
but he must, if practicable, first notify his co-owners of the necessity for
such repairs. (Art. 489)

- A co-owner need not secure the consent of the others in making

necessary repairs.
c. As for useful expenses, or expenses to improve or embellish the
thing, they shall be decided upon by a majority. (Art. 489)

- Unlike necessary expenses, useful expenses cannot be

imposed by one-owner against the will of the majority, as
the co-ownership is not primarily for profit.

d. Rules on Multi-Storey House. Whenever the different stories

of a house belong to different owners, if the titles of ownership
do not specify the terms under which they should contribute to
the necessary expenses and there exists no agreement on the
subject, the following rules shall be observed:

i. The main and party walls, the roof and the other things
used in common, shall be preserved at the expense of all the
owners in proportion to the value of the story belonging to
each;
ii. The floor of the entrance, front door, common yard and
sanitary works common to all, shall also be maintained at the
expense of all the owners pro-rata;

iii. Each owner shall bear the cost of maintaining the floor of his
story;

iv. The stairs shall be maintained at the expense of the owners of

the stories using it. Thus:

(1) The stairs from the entrance to the first story shall
be maintained at the expense of all the owners pro rata,
with the exception of the owner of the ground floor;

(2) The stairs from the first to the second story shall be
preserved at the expense of all, except the owner of the
ground floor and the owner of the first story; and so on
successively. (Art. 490)
5. Disposition. Each co-owner shall have the full ownership of his part and
of the fruits and benefits pertaining thereto, and he may therefore alienate,
assign or mortgage it, and even substitute another person in its enjoyment,
except when personal rights are involved. (Art. 493)

a. The effect of the alienation or the mortgage, with respect to the co-owners,
shall be limited to the portion which may be allotted to him in the division
upon the termination of the co-ownership. (Art. 493)

- Thus, a sale or lease of the whole common property without the consent
of the other co-owners affects only the share or interest of the selling or
leasing co-owner. The sale or lease does not affect the interests of the
non-consenting co-owners.

- The remedy of the co-owners who did not consent to the sale is to ask
for partition (treating the buyer as another co-owner), and not to sue
for recovery or nullification of the sale.
b. Before partition, a co-owner can only sell or mortgage his ideal
or pro indiviso share in the common property. He cannot sell
or mortgage a specific, concrete or determinate portion
thereof.

- However, the mere fact that the deed purports to transfer a

concrete portion does not per se render the sale void. The
sale is valid, but only with respect to the ideal share of the
selling co-owner, and subject to the results of the partition
upon the termination of the co-ownership.

6. Partition. Each co-owner may demand at any time the

partition of the thing owned in common, insofar as his share is
concerned. (Art. 494)
III. JOINT ACTS OF CO-OWNERS

A. ALTERATION

1. General Rule: Unanimous Consent. None of the co-owners

shall, without the consent of the others, make alterations in the
thing owned in common, even though benefits for all would
result therefrom. (Art. 491)

a. Alterations means a change in the nature or use of a

thing; e.g., converting a farm into a residential subdivision;
turning grapes into wine.

b. Unanimous consent is necessary as alteration is an act of

ownership.

2. Exception. If the withholding of the consent by one or more

of the co-owners is clearly prejudicial to the common interest,
the courts may afford adequate relief. (Art. 491)
III. Can a co-owner who unjustifiably refuses to sell the
entire co-owned property be compelled by his other co-
owners to sell?

A. NO. “The ultimate authorities in civil law, recognized as such by the

Court, agree that co-owners such as respondents have over their part,
the right of full and absolute ownership. Such right is the same as that
of individual owners which is not diminished by the fact that the entire
property is co-owned with others. That part which ideally belongs to
them, or their mental portion, may be disposed of as they please,
independent of the decision of their co-owners. So we rule in this case.
The respondents cannot be ordered to sell their portion of the co-
owned properties. In the language of Rodriguez v. Court of First
Instance of Rizal, “each party is the sole judge of what is good for him.”
(See Case of ARAMBULO vs. NOLASCO, G.R. No.
189420, March 26, 2014)
B. ACTS OF ADMINISTRATION

1. Majority Rule. For the administration and better enjoyment

of the thing owned in common, the resolutions of the majority of
the co-owners shall be binding. (Art. 492)

2. Determination of Majority. There shall be no majority

unless the resolution is approved by the co-owners who represent
the controlling interest in the object of the co-ownership. (Art. 492)

- Note that the law considers majority in interest (or financial

majority), not in number.

3. Judicial Intervention. The court, at the instance of an interested

party, shall order such measures as it may deem proper, including the
appointment of an administrator, in the following cases:

a. If there be no majority, or
b. If the resolution of the majority is seriously prejudicial to those
interested in the property owned in common (Art. 492)
C. IMPROVEMENTS OR EMBELLISHMENTS:
Expenses to improve or embellish the thing shall be
decided upon by a majority as determined in Article
492. (Art. 489)
IV.PARTITION

A. RIGHT TO PARTITION

1. General Rule. No co-owner shall be obliged to

remain in the co-ownership. Each co-owner may
demand at any time the partition of the thing
owned in common, insofar as his share is
concerned. (Art. 494)

The purpose of partition is to separate, divide

and assign a thing held in common among
those to whom it belongs. (see Art 1079) Every
act intended to put an end to indivision is
deemed to be a partition. (see Art. 1082)
2. Limitations

a. An agreement to keep the thing undivided for a

certain period of time, not exceeding 10 years, shall
be valid. (Art. 494)

- This term may be extended by a new agreement.

(Art. 494) Each extension should likewise not
exceed 10 years.

b. A donor or testator may prohibit partition for a

period which shall not exceed 20 years. (Art. 494)

c. Neither shall there be any partition when it is

prohibited by law. (Art. 494).
3. Imprescriptibility. No prescription shall run in favor of a
co-owner or co-heir against his co-owner or co-heirs so long as
he expressly or impliedly recognizes the co-ownership. (Art.
494)

a. Generally, a co-owner’s possession is considered as not

adverse to his co-owners. The co-owner in possession is
said to act as a trustee for his co-owners.

- Mere silent possession by a co-owner; his receipt of

rents, fruits or profits from the property; his erection of
buildings and fences and the planting of trees thereon;
and the payment of land taxes cannot per se serve as
proofs of exclusive ownership.

- Stronger evidence is required to prove adverse possession

against a co-owner than that against strangers.
b. For prescription to run in favor of a co-owner, it
must be shown that his possession was adverse
to the other co-owners, which requires the
following elements:

i. He has performed unequivocal acts of

repudiation amounting to an ouster of the other
co-owners;

ii. Such positive acts of repudiation have been

made known to the other co-owners; and

iii. The evidence thereon must be clear and

convincing.
B. MODES OF PARTITION : Partition may be made by agreement between the
parties or by judicial proceedings.

1. The agreement may be oral or written.

2. Judical partition shall be governed by the Rules of Court insofar as they are
consistent with the Civil Code. (Art. 496)

a. All co-owners are indispensable parties who must all be

impleaded in the partition case.

b. A case for judicial partition has two stages under Rule 69.

i. First Stage : Determination of whether co-ownership exists and whether

partition is proper. If the court orders partition, the parties may agree on how
to divide the party, which agreement will be confirmed by the court;

ii. Second Stage: If the parties cannot agree, the court will decide how the
property is to be divided, with the assistance of commissioners. The court may
also order an accounting of the rents or fruits.
C. MANNER OF PARTITION

1. If the property owned in common is divisible, a co-owner may

demand that it be physically divided and his portion thereof
given to him.

2. If the property owned in common is essentially indivisible or if

the physical division of the thing would render it unserviceable
for the use for which it is intended, the owners cannot demand
a physical division. (Art. 495) Their options are the following:

a. The co-owners can agree that the property be allotted to

one of them who shall indemnify the others. (Art. 498)

b. If the co-owners cannot agree, the property shall be sold

and its proceeds distributed among them. (Art. 498)
D. RIGHTS OF THIRD PARTIES

1. The partition of a thing owned in common shall not prejudice third

persons, who shall retain the rights of mortgage, servitude, or any other real
rights belonging to them before the division was made. (Art. 499)

2. Personal rights pertaining to third persons against the co-ownership

shall also remain in force, notwithstanding the partition. (Art. 499)

3. The creditors or assignees of the co-owners may take part in the

division of the thing owned in common and object to its being effected without
their concurrence. (Art. 497)

- But they cannot impugn any partition already executed, unless - –

i. There has been fraud, or

ii. In case it was made notwithstanding a formal opposition presented

to prevent it, without prejudice to the right of the debtor or assignor
to maintain its validity. (Art. 497)
E. INCIDENTS OF PARTITION

1. Upon partition, there shall be a mutual accounting

for benefits received and reimbursements for expenses
made. (Art. 500)

2. Likewise, each co-owner shall pay for damages

caused by reason of his negligence or fraud. (Art. 500)

3. Every co-owner shall, after partition, be liable for

defects of title and quality of the portion assigned to each
of the other co-owners. (Art. 501)
POSSESSION
 Chapter 6 - Possession

I. CONCEPT AND CLASSIFICATION

A. GENERAL CONCEPT

1. Definition. Possession is the holding of a

thing or the enjoyment of a right. (Art. 523)
It requires two elements:

i. Occupancy, apprehension or taking; and

ii. Intent to possess (animus possidendi).

2. Object. Only things and rights which are susceptible of

being appropriated may be the object of possession.
(Art. 530)
B. CLASSIFICATION ACCORDING TO AGENCY

1. Possession exercised in one’s own name. (Art. 524)

2. Possession exercised in the name of another (Art. 524)

C. CLASSIFICATION ACCORDING TO CLAIM OF

OWNERSHIP

1. Possession in the concept of owner (Art. 525)

a. A possessor in the concept of owner may be the owner

himself or one who claims to be so. It is not necessary
that he believes his own claim of ownership, it being
sufficient that other people believe said claim.

b. Only the possession acquired and enjoyed in the concept

of owner can serve as a title for acquiring dominion.
(Art. 540)
2. Possession in the concept of holder of the thing or
having the right to keep or enjoy it, the ownership
pertaining to another person. (Art. 525)

a. Examples: lessee; usufructuary; and

borrower

b. Acts relating to possession, executed or

agreed to by one who possesses a thing
belonging to another as a mere holder to
enjoy or keep it, in any character, do not bind
or prejudice the owner. (Art. 558)

- Unless the owner gave said holder express

authority to do such acts, or ratifies them
subsequently. (Art. 558)
D. CLASSIFICATION ACCORDING TO CHARACTER

1. Possession in Good Faith. 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.
(Art. 526)

a. Good faith implies honesty of intention, and freedom

from knowledge of circumstances which ought to put a
person on inquiry. A purchaser cannot simply close
his eyes to facts which should put a reasonable man on
his guard.

i. Where a property is occupied by persons other than

the seller, the purchaser should inquire as to the
possessor’s claim or right before buying the
property.
ii. Where a purchaser knew that the property was co-owned,
he ought to have inquired into the status of the co-
ownership instead of relying on the seller’s word that he
was the sole owner of the property.

iii. As a general rule, every person dealing with registered land

may safely rely on the correctness of the certificate of title
and is no longer required to look behind the certificate in
order to determine the actual owner.

- However, banks and persons engaged in lending business cannot merely rely on the
certificate of title. They should exercise greater caution and diligence in checking the status
of lands which they accept as collateral, such as by conducting ocular inspection and
inquiries with the actual tenants.

- “However, we note that the Garcia spouses are unlike other mortgagors. They are in the
business of constructing and selling townhouses and are masters in real estate transactions.
Further, petitioner is in the business of extending credit to the public, including real estate
loans. In both these businesses, it devolves upon both, greater charge than ordinary buyers
or encumbrancers for value, who are not in such venture.” (Expresscredit Financing Corp.
vs. Sps. Velasco, GR 156033, October 20, 2005)
b. Mistake upon a doubtful or difficult question of law
may be the basis of good faith. (Art. 526)

- Thus, good faith may remain notwithstanding possessor’s

mistaken belief that the donation, which was the basis of
his possession, was valid.

c. 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)

d. Possession acquired in good faith does not lose this

character except in the case and from the moment facts
exists which show that the possessor is not unaware
that he possesses the thing improperly or wrongfully.
(Art. 528)
 - The good faith ceases or is legally interrupted
from the moment defects in the title are made
known to the possessor by suit for recovery of
the property by the true owner (upon service of
summons on the defendant).

e. 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)
2. Possession in Bad Faith. He is deemed a possessor in bad faith who
possesses in any case contrary to good faith. (Art 526), i.e., he is aware that
there exists in his title or mode of acquisition any flaw which invalidates it.

- Bad faith is a state of mind which is determined by outward acts and

proven conduct. Examples:

i. A possessor who bought a property despite information that it had

already been sold to another person.

ii. A possessor who bought a property whose certificate of title had a

notice of lis pendens annotated thereon.

iii. A possessor who bought a property from a person whom he knows

to be a mere lessee.

iv. A lessee who refuses to vacate the premises after termination of

the lease.

v. Where a buyer refuses to permit the redemption of the property

without valid reason.
II. ACQUISITION OF POSSESSION

A. HOW POSSESSION IS ACQUIRED: Possession is acquired in

any of the following ways: (Art. 531)

1. By the material occupation of a thing or the exercise of

a right.

a. This includes possession acquired by the following modes of

constructive delivery:

i. Traditio brevi-manu – if the transferee/buyer already

had possession of the object under a different title even
before the sale (e.g., lessee subsequently buys the
property);

ii. Traditio constitutum possessorium – the transferor/seller

continues in the possession of the object, but in a different
capacity (e.g., owner sells the property and becomes the
lessee).
b. Constructive possession – The possession and cultivation of a
portion of a property under claim of ownership of all, is
constructive possession of all, if the remainder is not in the
adverse possession of another. Possession in law does not
mean that a man has to have his feet on every square meter of
ground before it can be said that he is in possession.

- However, the area claimed to be constructively possessed

must be reasonable in relation to the area actually
possessed. The mere planting of a sign or symbol of
possession cannot justify a Magellan-like claim of dominion
over an immense tract of territory.
2. By the fact that the thing is subject to the action of
our will.

- This includes possession acquired by the

following modes of constructive delivery:

i. Traditio simbolica – delivering an object or

symbol placing the thing under the control of
the transferee, such as the delivery of the keys of
the place where the movable sold is being kept;

ii. Traditio longa manu – the transferor points out

to the transferee the things which are being
transferred, or they merely agree or consent
that delivery has been effected.
3. By the proper acts and legal formalities
established for acquiring such right.

- Examples: The execution of a sale or a donation

thru a public instrument shall be equivalent to the
delivery of the thing, unless there is stipulation to
the contrary.

- If, however, notwithstanding the execution of

the instrument, the purchaser cannot have the
enjoyment and material tenancy of the thing and
make use of it herself, because such tenancy and
enjoyment are opposed by another, then delivery
has not been effected.
B. WHO MAY ACQUIRE POSSESSION:

Possession may be acquired by the following

persons: (Art. 532)

1. The same person who is to enjoy it,

2. His legal representative,

- Minors and incapacitated persons may

acquire the possession of things; but they need the
assistance of their legal representative in order to
exercise the rights which from the possession arise
in their favor. (Art. 535)
3. His agent, or

4. Any person without any power whatever.

- But in this case, the possession shall not be

considered as acquired until the person in whose
name the act of possession was executed has
ratified the same, without prejudice to the juridical
consequences of negotiorum gestio in a proper
case.
C. ACQUISITION OF POSSESSION BY SUCCESSION

1. Continuity. The possession of hereditary property is deemed

transmitted to the heir without interruption and from the moment of
the death of the decedent, in case the inheritance is accepted. (Art.
533)

- One who validly renounces an inheritance is deemed never to

have possessed the same. (Art, 533)

2. Decedent’s Bad Faith. One who succeeds by hereditary title shall

not suffer the consequences of the wrongful possession of the
decedent, if it is not shown that he was aware of the flaws affecting it.
(Art. 534)

- But the effects of possession in good faith shall not benefit

him except from the date of death of the decedent. (Art. 534)

-Reason: Bad faith is personal and intransmissible.

D. ACTS WHICH DO NOT AFFECT POSSESSION

The following acts do not affect possession (i.e., they do not

interrupt the possession of the legal possessor, the running of
the prescriptive period in his favor, or his entitlement to the
fruits):

1. Acts merely tolerated (Art. 537)

2. Acts executed clandestinely and without the knowledge of

the possessor of a thing. (Art. 537)

- If the act is not known to the public (clandestine) but

known to the possessor, the latter’s possession is affected.
3. Acts executed by violence (Art. 537)

a. In no case may possession be acquired through force

or intimidation as long as there is a possessor who
objects thereto. (Art. 536)

b. He who believes that he has an action or a right to

deprive another of the holding of a thing, must invoke
the aid of the competent court, if the holder should
refuse to deliver the thing. (Art. 536)

- The possessor who is dispossessed by violence may

recover possession by an action for forcible entry, even as
against the owner.
E. UNITY OF POSSESSION

1. Possession as a fact cannot be recognized at the same time in

two different personalities except in the cases of co- possession.

2. Should a question arise regarding the fact of possession, the

following rules apply as to preference (Art. 538):

a. The present possessor shall be preferred;

b. If there are two possessors, the one longer in possession

is preferred;

c. If the dates of the possession are the same, the one who
presents a title is preferred;

d. If all the foregoing conditions are equal, the thing shall be

placed in judicial deposit pending determination of its
possession or ownership through proper proceedings.
 III. EFFECTS OF POSSESSION

A. MAINTENANCE OF POSSESSION

1. Every possessor has a right to be respected in his

possession. (Art. 539)

a. The phrase “every possessor” indicates all kinds of

possession, from that of the owner to that of a
mere holder, except that which constitutes a crime.

b. He who believes he has a better right than the present

possessor must invoke the aid of a competent court.
(Art. 536). He cannot take the law in his own hands.
2. Should a possessor be disturbed in his possession, he
shall be protected in or restored to said possession by the
means established by the laws and the Rules of Court.
(Art. 539)

a. For the recovery of personal property, the

judicial action of replevin is available.

b. For the recovery of real property, there are

three kinds of actions available:

i. Accion interdictal or summary action for

unlawful detainer and forcible entry, to be
filed with Municipal or Metropolitan Trial
Courts within the first year of possession.
(1) A possessor deprived of his possession
through forcible entry may within 10 days
from the filing of the complaint present a
motion to secure from the competent court,
in the action for forcible entry, a writ of
preliminary mandatory injuction to restore
him in his possession. (Art. 539)

(2) The court shall decide said motion within 30

days from the filing thereof. (Art. 539)
ii. Accion publiciana or the plenary action
to recover the right of possession.

iii. Accion reivindicatoria or the action to

recover ownership (which normally
includes right to possession).
B. BASIS FOR ACQUIRING OWNERSHIP

1. Only the possession acquired and enjoyed in the concept of owner

can serve as a title for acquiring dominion. (Art. 540)

a. In order to ripen into ownership (by acquisitive

prescription), possession must be in the concept of an
owner, public, peaceful and uninterrupted. (Art. 1118)

- Possession in the concept of owner (en concepto de

dueno) means that it is adverse to other claimants.

b. Mere possession with a juridical title, such as by a

usufructuary, a trustee, a lessee, an agent or a pledge, not
being in the concept of an owner, cannot ripen into
ownership, unless the juridical relation is first expressly
repudiated and such repudiation has been communicated to
the other party.
 c. Acts of possessory character executed
due to license or by a mere tolerance of
the owner would likewise be
inadequate to ripen into ownership.
(Art. 1119)

2. As to movables – the possession of movable

property acquired in good faith is equivalent
to a title. (Art. 559)
C. PRESUMPTIONS: The possessor enjoys the
following legal presumptions –

1. Good Faith. 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)

2. Same Character. 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)
3. Continuous. A present possessor who shows his
possession at some previous time, is presumed to
have held possession also during the intermediate
period, in the absence of proof to the contrary.
(Art. 554)

4. No Interruption. One who recovers, according

to law, possession unjustly lost, shall be deemed
for all purposes which may redound to his benefit,
to have enjoyed it without interruption. (Art. 561)

5. Just Title. A possessor in the concept of owner

has in his favor the legal presumption that he
possesses with a just title and he cannot be obliged
to show or prove it. (Art. 541)
 - However, for purposes of prescription, just
title must be proved; it is not presumed. (Art. 1131)

- There is “just title” when the adverse

claimant comes into possession of the property
through any of the modes recognized by law for the
acquisition of ownership or other real rights, but
that the grantor is neither the owner nor in a
position to transmit the right. (Art. 1129)

6. Extension. The possession of real property

presumes that of the movables therein, so long as it
is not shown or proved that they should be
excluded. (Art. 542)
D. EFFECTS OF CO-POSSESSION: Each one of the
participants of a thing possessed in common shall be
deemed to have exclusively possessed the part which
may be allotted to him upon the division thereof, for
the entire period during which the co-possession
lasted (Art. 543)

1. Interruption in the possession of the whole or part

of a thing possessed in common shall be to the
prejudice of all the possessors. (Art. 543)

2. However, in case of civil interruption, the Rules of

Court shall apply. (Art. 543)
E. ENTITLEMENT TO FRUITS AND EXPENSES
OF POSSESSOR IN GOOD FAITH

1. Fruits

a. A possessor in good faith is entitled to the

fruits received before the possession is legally
interrupted. (Art. 544)

i. Natural and industrial fruits are

considered received from the time they
are gathered or severed. (Art. 544)

ii. Civil fruits are deemed to accrue daily

and belong to the possessor in good
faith in that proportion. (Art. 544)
- Civil interruption occurs when the possessor
is sued and served with summons. (Art. 1123)

- From the date of interruption, the possessor

is considered to be in bad faith, and should
deliver or pay to the owner or lawful
possessor whatever fruits may have been
received after the interruption. In case the
possessor is entitled to reimbursement for
expenses, the fruits he received after the
interruption will be set-off with the expenses.
He cannot appropriate said fruits for his
exclusive benefit.
b. If at the time the good faith ceases, there
should be any pending natural or industrial
fruits, the possessor shall have a part or share in
the following, in proportion to his time of
possession. (Art. 545)

i. The expenses of cultivation;

ii. The net harvest; and
iii. The charges.

- The owner of the thing may, should he so

desire, give the possessor in good faith the right to
finish the cultivation and gathering of the growing
fruits, as an indemnity for his part of the expenses
of cultivation and the net proceeds. (Art 545)
 - The possessor in good faith who for any
reason whatever should refuse to accept this
concession, shall lose the right to be indemnified in
any other manner. (Art. 545)

2. Reimbursement of Expenses. The rights of the

possessor in good faith depend on the type of
expenses involved:

a. Expenses of cultivation - refundable.

He who receives the fruits has the obligation
to pay the expenses made in their
production, gathering and preservation.
(Arts. 443, 545. See also Art. 549)
b. Necessary expenses – refundable, with a right to
retain the thing until he is reimbursed therefor. (Art.
546)

i. These are expenses incurred for the

preservation of the property, without which
the thing would deteriorate or be lost. (See
Art. 452) Example: expenses for repairs.

ii. Necessary expenses do not include taxes, as

they are not for the preservation of the
property, but rather for the preservation of
the possession of the same. They are
considered charges upon the property, which
must be borne by the old and new possessors
in proportion to their possession. (Art. 545)
iii. The right of retention is given to the
possessor so that he can apply the fruits he
received during such retention to the
reimbursement of the expenses owned to
him. The right of retention is not a coercive
measure to force the debtor to pay, but a
means for the creditor to get compensation
(through the application of the fruits or
proceeds received while the thing is under
retention). The situation is analogous to a
pledge (for movables) or an antichresis (for
immovables).
c. Useful expenses – refundable, with the same right
of retention. (Art 546)

i. These are expenses incurred to improve or

give greater utility or productivity to the
thing. Examples: construction of a house on
a land; filling in of a vacant lot;

ii. The person who recovers possession has the

option of: (1) refunding the amount of the
useful expenses, or (2) paying the increase in
value which the thing may have acquired by
reason thereof. (Art. 546)
iii. If the useful improvements can be removed without
damage to the principal thing, the possessor in good
faith may remove them, unless the person who
recovers the possession decides to keep them by
exercising any of his options under Art. 546. (Art.
547)

iv. The reimbursement for necessary and useful

expenses cannot be compensated with the fruits
received during the possession in good faith, as both
rights belong to the possessor in good faith.

v. One who recovers possession shall not be obliged to

pay for improvements which have ceased to exist at
the time he takes possession of the thing. (Art. 553)
d. Expenses for pure luxury or mere pleasure –
shall not be refunded. (Art. 548)

i. These are expenses for the comfort,

convenience or enjoyment of the possessor; they
merely embellish the thing but do not add to
its utility or income-generating capacity.

ii. But the possessor in good faith may remove the

ornaments with which he has embellished the
principal thing if: (1) it suffers no injury thereby,
and (2) his successor in the possession does not
prefer to refund the amount expended. (Art.
548)

e. Costs of litigation – not refundable. The costs of

litigation over the property shall be borne by
every possessor. (Art. 550)
F. ENTITLEMENT TO FRUITS AND EXPENSES OF
POSSESSOR IN BAD FAITH

1. Fruits. The possessor in bad faith is not entitled to the fruits

of the property. Thus, he is liable to reimburse the legitimate
possessor with the following:

a. Fruits received and

b. Fruits which the legitimate possessor could have

received. (Art. 549)

2. Expenses

a. Expenses of cultivation – refundable. He who

receives the fruits has the obligation to pay the
expenses made in their production, gathering, and
preservation. (Art.443, in rel. to Art. 549)
- If the fruits have not yet been gathered, the
possessor in bad faith loses them without indemnity.
(Art. 449).

b. Necessary expenses – refundable to a possessor

in bad faith (Art. 549), but he has no right of
retention. (Art 546, par. 1)

c. Useful expenses – not refundable. (Art. 546)

d. Expenses for pure luxury or mere pleasure – not

refundable, but the possessor in bad faith may remove
the objects for which such expenses have been incurred
if : (i) the thing suffers no injury thereby, and (ii) the
lawful possessor does not prefer to retain them by
paying the value they may have at the time he enters
into possession. (Art. 549)
e. Costs of litigation – not refundable. The
costs of litigation over the property shall be
borne by every possessor. (Art. 550)

G. ENTITLEMENT TO NATURAL
IMPROVEMENTS:

Improvements caused by nature or time shall

inure to the benefit of the person who has
succeeded in recovering possession. (Art. 551)
H. LIABILITY FOR LOSS OR DETERIORATION

1. A possessor in good faith shall not be liable for the

deterioration or loss of the thing possessed (Art. 552)

-Except in cases in which it is proved that he has

acted with fraudulent intent or negligence, after the
judicial summons. (Art. 552)

2. A possessor in bad faith shall be liable for

deterioration or loss in every case. (Art. 552)

- Even if the loss or deterioration is caused by

a fortuitous event. (Art. 552)
IV. LOSS OF POSSESSION

A. CAUSES OF LOSS: A possessor may lose his possession in

the following ways (Art. 555):

1. By the abandonment of the thing:

- A thing is considered abandoned and possession

thereof lost if the spes recuperandi (the hope of
recovery) is gone and the animus revertendi (the
intention of returning) is finally given up.

2. By an assignment made to another either by onerous or

gratuitous title;

3. By the destruction or total loss of the thing, or because it goes

out of commerce;
4. By the possession of another, if the new possession has
lasted longer than one year. However –

a. The possession by another must not be by mere tolerance,

or acquired clandestinely or by violence (Art. 555, in rel.
to Art 537).

b. This pertains to possession de facto. The real right of

possession (de jure) is not lost till after the lapse of ten
years.

- The remedy of accion publiciana (to recover

possession) must be availed of within 10 years
from dispossession, because under Art. 555(4) of
the Civil Code, the real right of possession is lost
after the lapse of 10 years.
c. After the new possession has lasted longer than one year, the
former possessor can no longer file an action for forcible entry
or unlawful detainer. He may, however, file a plenary action
for recovery or revindication (assuming he has cause of action).

B. NO LOSS OF POSSESSION

1. The possession of movables is not deemed lost so long as they

remain under the control of the possessor, even though for the
time being he may not know their whereabouts. (Art. 556)

2. The possession of immovables and of real rights is not deemed

lost, or transferred for purposes of prescription to the prejudice
of third persons, except in accordance with the provisions of
the Mortgage Law and the Land Registration laws. (Art. 557)
C. RULE AS TO MOVABLES

1. The possession of movable property acquired

in good faith is equivalent to a title. (Art. 559)

a. Requisites to make possession of movable

property equivalent to title:

i. The possession should be in good faith;

ii. The (former) owner voluntarily parted
with the possession of the thing; and
iii. The possession is in the concept of
owner.
2. Nevertheless, one who has lost any movable or has been
unlawfully deprived thereof, may recover it from the
person in possession of the same. (Art. 559)

- But if the possessor has acquired the property in

good faith at a public sale, the owner cannot
obtain its return without reimbursing the price
paid therefor. (Art. 559)

Notes:

i. The movable referred to is a specific or

determinate thing (one that can be identified or
distinguished from others of the same kind) and
not a generic and fungible thing (like money).
 ii. A person who voluntarily delivers the thing sold under a
perfected contract of sale cannot be considered to have been “unlawfully
deprived” of such property, even if the buyer fails to pay (failure of
consideration) or is an impostor. Thus, the vendor cannot recover the property
from third parties who have subsequently obtained the property in good faith.
His remedy is to go after the original buyer.

iii. “Unlawful deprivation” includes not only theft or robbery, but

also abuse of confidence or misappropriation. Thus, where the owner entrusts
his jewels to another person who, without authority, pledges the same to a
pawnshop, the owner may recover the jewels from the pawnshop. (See Dizon vs.
Suntay, G.R. No. L-30817 September 29, 1972)

iv. Also, where a car owner entrusts his car to another person who
sells it to a third party (without authority), the owner may recover the car from
the third party even if the latter bought it in good faith.
- Tolentino opined that “unlawful deprivation”
should not include a case where the owner
voluntarily parts with his property, such as
by entrusting it with another person. Also,
the owner should suffer the loss from any
abuse of confidence by his agent or trustee as
he was the one who made it possible in the
first place.

v. There are several exceptional cases when the

original owners who lost a movable or was
illegally deprived thereof can no longer
recover the same:
(1) If the present possessor acquired it in good
faith at a public sale (unless the original
owner reimburses the price paid for the
movable). (Art. 559) Public sale means that
there is notice to the public and anybody can
bid or offer to buy.

(2) If the present possessor purchased it in a

merchant’s store, fair or markets. (Art. 1505)
The rule protects the innocent buyer to
facilitate commercial sales and gives stability
to business transactions. A buyer cannot be
reasonably expected to look behind the title
of every article when he buys at a store.
3. Wild animals are possessed only while they are
under one’s control. (Art 560)

4. Domesticated or tamed animals are considered

domestic or tame, if they retain the habit of
returning to the premises of the possessor. (Art.
560)

D. RECOVERY OF POSSESSION. One who

recovers, according to law, possession unjustly lost, shall
be deemed for all purposes which may redound to his
benefit, to have enjoyed it without interruption. (Art.
561)

- The recovery must be lawful or by legal means.