Ownership | PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS

CIVIL LAW: IX. PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS > B. OWNERSHIP

Ownership is a central concept in property law, governed primarily by the Civil Code of the Philippines (Republic Act No. 386). Below is an exhaustive discussion of the topic, detailing its legal framework, principles, and nuances under Philippine law.

I. DEFINITION OF OWNERSHIP

Ownership is the independent and general right of a person to control a thing, including its use, disposition, and exclusion of others, subject only to limitations established by law. It is defined under Article 428 of the Civil Code:
"The owner has the right to enjoy and dispose of a thing, without other limitations than those established by law. The owner has also a right of action against the holder and possessor of the thing in order to recover it."

II. CHARACTERISTICS OF OWNERSHIP

Ownership under the Civil Code is characterized as:

  1. Full and Exclusive – Ownership encompasses full authority to use, enjoy, and dispose of a thing within the bounds of the law.
  2. Perpetual – Ownership lasts indefinitely unless transferred, abandoned, or extinguished by law.
  3. Subject to Limitations – Ownership is not absolute; it is subject to legal restrictions for public interest, social function, and private agreements.

III. RIGHTS OF AN OWNER

Article 428 enumerates the basic rights of an owner:

  1. Right to Use (Jus Utendi): The owner may utilize the property for personal or economic purposes.
  2. Right to Fruits (Jus Fruendi): The owner is entitled to all fruits produced by the property, whether natural, industrial, or civil.
  3. Right to Dispose (Jus Disponendi): The owner has the authority to sell, donate, lease, or otherwise alienate the property.
  4. Right to Recover (Jus Vindicandi): The owner may reclaim possession of the property from unauthorized possessors.

IV. MODES OF ACQUIRING OWNERSHIP

Ownership may be acquired through:

  1. Original Acquisition – Ownership arises from modes such as occupation, intellectual creation, or accession.
  2. Derivative Acquisition – Ownership is transferred from a previous owner through:
    • Contract (e.g., sale, donation, barter)
    • Succession (testate or intestate inheritance)
    • Prescription (acquisition by lapse of time)

V. LIMITATIONS ON OWNERSHIP

While ownership is a fundamental right, it is not absolute. Limitations include:

  1. Legal Restrictions:
    • Police Power: The government may restrict ownership for public health, safety, and welfare.
    • Eminent Domain: Private property may be taken for public use upon payment of just compensation.
    • Taxation: Property ownership is subject to taxation (e.g., real property tax).
    • Zoning Laws: Use of property is regulated through zoning ordinances.
  2. Social Function Doctrine (Article 431): Ownership must be exercised in a manner that does not harm society or others' rights.
  3. Contractual Limitations: Conditions and restrictions may be imposed by private agreements, such as those in leases, mortgages, or servitudes.

VI. CO-OWNERSHIP

Definition: When ownership is vested in two or more persons, it creates a co-ownership governed by Articles 484 to 501 of the Civil Code.

  1. Rights of Co-Owners:
    • Proportionate share in profits and benefits
    • Equal right to use the property, provided it does not impair its intended use
  2. Obligations of Co-Owners:
    • Contribution to expenses and liabilities
    • Respect for other co-owners’ rights
  3. Termination: Co-ownership is terminated by partition, mutual agreement, or prescription.

VII. CLASSIFICATION OF OWNERSHIP

Ownership may be classified based on the following criteria:

A. According to the Subject Matter

  1. Movable Property (Personal Property): Things that can be moved from one place to another (e.g., cars, jewelry).
  2. Immovable Property (Real Property): Things that are immovable by nature or intention (e.g., land, buildings).

B. According to Ownership Status

  1. Sole Ownership: Property is owned entirely by one person.
  2. Co-Ownership: Ownership is shared by multiple persons.

C. According to Origin

  1. Public Ownership: Property owned by the State or its subdivisions for public use (e.g., roads, parks).
  2. Private Ownership: Property owned by individuals or private entities.

VIII. ACCESSORY RIGHTS AND MODIFICATIONS TO OWNERSHIP

  1. Accession (Articles 440-465):
    • Accession is the right of the owner to everything produced by the property or united to it.
    • Types of Accession:
      • Accession Continua: Natural fruits, industrial fruits, and civil fruits produced by the property.
      • Accession Industrial: Improvement or construction on property by the owner or another party.
  2. Usufruct (Articles 562-612):
    • Ownership is separated into usufruct (right to use and benefit from property) and naked ownership.
  3. Easements (Articles 613-651):
    • Servitudes imposed on property for the benefit of another property or person.
  4. Possession as an Incident of Ownership:
    • Possession may be exercised directly or through another person.
    • A possessor in good faith is entitled to the fruits of the property (Article 544).

IX. LOSS OF OWNERSHIP

Ownership may be lost through:

  1. Voluntary Transfer: Sale, donation, or assignment.
  2. Abandonment: Intentional renunciation of rights over the property.
  3. Prescription: Acquisition by adverse possession.
  4. Operation of Law: Confiscation, expropriation, or court judgments.

X. REMEDIES AVAILABLE TO OWNERS

  1. Action for Recovery of Possession (Reivindicatory Action): To recover property from a possessor without right.
  2. Action for Quieting of Title: To remove clouds on ownership.
  3. Action for Damages: Compensation for unlawful acts affecting ownership rights.

XI. RELEVANT JURISPRUDENCE

Philippine jurisprudence has consistently emphasized the importance of ownership as a protected right under the Constitution (Article III, Section 1 and Section 9). However, it also upholds the principle of social justice, balancing private ownership with public welfare.

Key Cases:

  1. Heirs of Dela Cruz v. Heirs of Cruz (G.R. No. 173014): Ownership is distinct from possession; the former pertains to a legal right, the latter to a factual condition.
  2. Republic v. Estipular (G.R. No. 176959): The social function of property was reiterated, emphasizing limitations on ownership.
  3. NPC v. CA (G.R. No. 125221): Discussed just compensation in cases of eminent domain.

This overview provides a comprehensive understanding of Ownership under Philippine civil law, encapsulating its rights, limitations, classifications, and remedies. It is essential for practitioners, scholars, and stakeholders to appreciate these legal nuances in property relations.

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