PROPERTY: 01/18/2025

=the possibility of dis. Property.

*movable
*immovable

*TCT (owners duplicate copy of the original)- cancels the original title (OCT-retain by
the rod).
=there are instances that both OCT/TCT are loss.

*Annotation:
=encumbrances: adverse claims
-the particular encumbrances to the title will give notice to whom wants to transact.
-if there is an encumbrance you will be bound if you are the buyer. If not canceled, it
follows to the buyer.

*CITE CASES: 10-15 TO BE DICUSSED

INTRODUCTION: PROPERTY

OBJECT:subject to appropriation to be appropriated.

=acquire/ possess
=the portion of land to be appropriatable therefore, it is object

THINGS ( 3 KINDS OF THINGS)=OBJECT

=may or may not appropriated

MOVABLE: mobility
=you can move from one place to another.

IMMOVABLE= permanent

1. IMPORTANCE OF CLASSIFICATION
EX:
A) DONATION OF REAL PROPERTY
=public document-notarized=attested by witnesses
=Acknowledge through their signature, affirmed and confirmed
=voluntary acted

=Private document-valid to both parties=not ENFORCEABLE TO THE COURT.

Present witnesses in order to validate the private document
The court has to rely from the notarized documents.

DONATION:PRIVATE DOCUMENT=does not effect.

MOA: depends upon the agreement if it would be presented as a private or public
document. ( GOV’T =PUBLIC VS. PRIVATE =PUBLIC AND PRIVATE DOC=CERTAIN
OFFICES)

B) The ownership of real property may be acquired by prescription although there is

bad faith, in thirty (30) years; whereas, acquisition in bad faith of personal property
needs only eight (8) years.

(c) Generally, to affect third persons, transactions involving real property must be
recorded in the Registry of Property; this is not so in the case of personal
property.

=majority must be registered in the rod

=must be in goof faith

2. INCOMPLETENESS OF CLASSIFICATION

(6) Characteristics of Property

REQUISITES OF PROPERTY
(a) utility for the satisfaction of moral or economic wants=instances where you give
value to that particular thing.
=You can use it as moral: you enjoy something, satisfaction, have an economic
value.

(b) susceptibility of appropriation ( can be the subject of appropriation that you can
individualized it. It can exist

(c) individuality or substantivity (i.e., it can exist by itself, and not merely as a part of
a whole). (Hence, the human hair becomes property only when it is detached from the
owner.)

*human body:neither PP/RP

The Human Body
Is the human body real or personal property? It is submitted that the human body,
whether alive, or dead, is neither real nor personal property, for it is not even property
at all, in that it generally cannot be appropriated. It is indeed a thing or a being, for it
exists; in fact, it is a tangible or corporeal being or thing, as distinguished from the
human soul, which is necessarily intangible or incorporeal.

While a human being is alive, he cannot, as such, be the object of a contract, for he is
considered outside the commerce of man. He may, of course, offer to another the use
of various parts of his body, even the entire body itself in obligations requiring
demonstration of strength or posing in several ways, as when he poses for a painter
or sculptor. He may donate part of his blood, may even sell part of his hair, but he
cannot sell his body.

IMMOVABLE PROPERTY
Art. 415. The following are immovable property:
(1) Land, buildings, roads and constructions of all kinds
adhered to the soil;

(2) Trees, plants, and growing fruits, while they are

attached to the land or form an integral part of an immovable;

=once you cut them down they are no longer immovable. By nature they are
immovable.

(3) Everything attached to an immovable in a fixed

manner, in such a way that it cannot be separated there
from without breaking the material or deterioration of the
object;

=example: grills of windows, you cannot just removed it. You have to destroy the wall
(4) Statues, reliefs, paintings, or other objects for use
or ornamentation, placed in buildings or on lands by the
owner of the immovable in such a manner that it reveals the
intention to attach them permanently to the tenements;

=they are movable they acquire the nature of immovable in such a manner the
intended to be there or attached permanent.
=the character of a statues will change
(5) Machinery, receptacles, instruments or implements
intended by the owner of the tenement for an industry or
works which may be carried on in a building or on a piece of
land, and which tend directly to meet the needs of the said
industry or works;

=these are deemed to be immovable. They may be moved but the intention of the
owner of the property is intended to be permanently attached.

(6) Animal houses, pigeon-houses, beehives, fish ponds

or breeding places of similar nature, in case their owner has
placed them or preserves them with the intention to have them
permanently attached to the land, and forming a permanent
part of it; the animals in these places are included;

=if there are animals that are found in such structure they are considered as
immovable.

(7) Fertilizer actually used on a piece of land;

(8) Mines, quarries, and slag dumps, while the matter

thereof forms part of the bed, and waters either running or
stagnant;

(9) 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;

(10) Contracts for public works, and servitudes and

other real rights over immovable property.

=Contracts: it is not a contract itself but rather the concept of the contract between
the parties. The binding concept between them.

MOVABLE PROPERTY
Art. 416. The following things are deemed to be personal
property:
(1) Those movables susceptible of appropriation which
are not included in the preceding article;
(2) Real property which by any special provision of law
is considered as personalty;
(3) Forces of nature which are brought under control
by science; and
(4) In general, all things which can be transported from
place to place without impairment of the real property to
which they are fixed.
*even you registered CM it becomes a personal depending to w

COMMENT:
(1) Examples of the Various Kinds of Personal Property
For Paragraph 1 — a fountain pen; a piano; animals.
For Paragraph 2 — growing crops for the purposes of the
Chattel Mortgage Law (Sibal v. Valdez, 50 Phil. 512); machin
ery placed on a tenement by a tenant who did not act as the
agent of the tenement owner. (Davao Sawmill v. Castillo, 61
Phil. 709).
For Paragraph 3 — electricity, gas, light, nitrogen. (See
U.S. v. Carlos, 21 Phil. 543).
For Paragraph 4 — machinery not attached to land nor
needed for the carrying on of an industry conducted therein;
portable radio; a laptop computer; a diploma hanging on the
wall.

Art. 417. The following are also considered as personal

property:

(1) Obligations and actions which have for their object

movables or demandable sums; and

(2) Shares of stock of agricultural, commercial and

industrial entities, although they may have real estate.
=shares are deemed to be immovable.

COMMENT:
Other Kinds of Personal Property
(1) Paragraph 1: “Obligations and actions which have for
their object movables or demandable sums.’’

(a) Examples: If somebody steals my car, my right to bring an action to recover the
automobile is personal property by itself. If my debtor owes me P1 million, my credit
as well as my right to collect by judicial action is also personal property. This is
because, although the law uses the term “obligations,” same really refers to rights or
credits. If my credit has not yet matured, my right to collect it eventually is considered
personal property, even if in the meantime, the money is not yet due. Of course, till
the debt matures, I have no right yet to actually collect; but a right to collect in the
future exists already (now); and this is why I am allowed to bring in the meantime,
actions to preserve my right. If the object is illegal, it is not considered demandable
and therefore no right exists. Note, however, that a right to recover possession for
instance of a piece of land is considered real, and not personal property. This is
because the object of my right is an immovable.

(b) A promissory note is personal property; the right to collect it is also personal
property; but a mortgage on real estate is real property by analogy. (Par. 10, Art. 415;
see also Hilado v. Register of Deeds, 49 Phil. 542; Hongkong and Shanghai Bank v.
Aldecoa and Co., 30 Phil. 255).

(2) Paragraph 2: “Shares of stock of agricultural, commercial, and industrial

entities, although they may have real estate.”
(a) Examples:
A share of stock in a gold mining corporation is personal property; but the gold mine
itself, as well as any land of the corporation, is regarded as real property by the law.
The certificate itself evidencing ownership of the share, as well as the share itself, is
regarded as personal property. Being personal, it may be the object of a chattel
mortgage. (See Chua Guan v. Samahang Magsasaka, Inc 62 Phil. 472; see also
Bachrach Motor Co. v. Ledesma, 64 Phil. 681).

[NOTE: Even if the sole property of a corporation

should consist only of real property, a share of stock in
said corporation is considered personal property. (Cedman
v. Winslow, 10 Mass. 145).].

(b) Query: Is a share in a partnership considered personal property? It is submitted

that the answer is yes; as a matter of fact, all shares in all juridical persons should be
considered personal property for there is no reason to discriminate between shares in
a corporation, and shares in other juridical persons. This is true even if the law
apparently refers only to a corporation in view of the use of the term “stock.’’ It is
believed, however, that the term “stock’’ should be understood not in its technical
sense of being categorized under securities (which include options, warrants,
derivatives, swaps, swaptions, bonds, asset-backed securities, etc.) but in its generic
meaning of “participation.’’ As a matter of fact, the Supreme Court has held that a
half-interest in a drugstore business is personal property, capable of being the subject
of a chattel mortgage. (Involuntary Insolvency of Stochecker v. Ramirez, 44 Phil. 933).
However, a half-interest in a drugstore, considered as a building (and not a business)
is a real right in real property and is, therefore, by itself real property.

(c) Enforcement of Property Rights in Shares of Stock —

“Shares of stock are a peculiar kind of personal property, and are unlike other classes
of personal property in that the property right of shares of stock can only be exercised
or enforced where the corporation is organized and has its place of business, and can
exist only as an incident to and connected with the corporation, and this class of
property is inseparable from the domicile of the corporation itself.’’ (Black Eagle
Mining Co. v. Conroy, et al., 221 Pac. 425, 426). If, however, the suit is directed not
against the corporation itself but involves the commission of a crime — one element
of which may be the ownership

=rights over certain contracts are deemed as property.

=employment-it is your right but not property

Art. 418. Movable property is either consumable or non

consumable. To the first class belong those movables which
cannot be used in a manner appropriate to their nature
without their being consumed; to the second class belong all
the others.
Example: consumable:it is movable at the same time consumable.
Consumable: something you to take to use

COMMENT:

(1) Consumable and Non-Consumable Properties

Consumable — this cannot be used according to its nature
without its being consumed.
Non-consumable — any other kind of movable property.

(2) Classification and Examples FINGIBLE AND NON FUNGIBLE

(a) According to their nature: consumable and non-consum

able.
(b) According to the intention of the parties: fungible and
non-fungible (res fungibles and res nec fungibles).

Explanation:
1) If it is agreed that the identical thing be returned, it is non-fungible, even though by
nature it is consumable. Hence, if I borrow a sack of rice, not for consumption but for
display or exhibition merely (ad ostentationem), the rice is considered non-fungible.

2) If it is agreed that the equivalent be returned, the property is fungible. Hence, if I

borrow vinegar (to consume) and promise to return an equivalent amount of the same
quality, the property is not only consumable; it is also fungible. (See also Arnott v.
Kansas Pac. Ry. Co., 19 Kansas 95).

3) In the law of credit transactions, a loan of rice for consumption is considered a

simple loan or mutuum; while a loan of rice for exhibition is a commoda
tum.

[NOTE: The Civil Code, in many instances, uses

the words “consumable’’ and “fungible’’ interchange
ably.].

[NOTE: It is evident, however, that fungibles are those replaceable by an equal quality
and quantity, either by the nature of things, or by common agreement. If
irreplaceable, because the identical objects must be returned, they are referred to as
non-fungibles.].

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