CIVIL LAW > IX. PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS > B. Ownership > 8. Possession > b. Classification of Possession > i. Possession Exercised in One’s Own Name or in the Name of Another
Overview of Possession
Possession is the holding or enjoyment of a thing or right. Under the Civil Code of the Philippines, possession involves a factual relationship with the thing and a juridical intent to exercise dominion or control.
Article 523 of the Civil Code defines possession as the holding of a thing or enjoyment of a right, and it may exist in different forms. Among these is possession exercised either in one’s own name or in the name of another.
Possession Exercised in One’s Own Name
This type of possession occurs when the possessor holds or enjoys the property or right for their benefit and in their personal capacity. The possessor acts as though they are the owner, irrespective of whether they have a rightful claim to the title.
Key Characteristics:
- The possessor directly claims dominion over the property.
- There is an intent to exclude others, including the rightful owner, from possession.
- The possessor asserts ownership by acts that imply ownership, such as occupying, cultivating, or improving the property.
Legal Implications:
- Possession in one’s own name is presumed to be in good faith unless there is evidence to the contrary.
- It can ripen into ownership through acquisitive prescription if uninterrupted for the required period (10 years for possession in good faith and with just title, or 30 years otherwise, per Articles 1117–1134 of the Civil Code).
Examples:
- A person occupies land, builds a structure, and claims ownership.
- A lessee overstays the lease and starts claiming the property as their own.
Possession Exercised in the Name of Another
This type of possession occurs when the possessor holds or enjoys the property or right for the benefit of another person. The possessor does not act as the owner but rather as a representative or custodian.
Key Characteristics:
- The possessor acts on behalf of another, such as the true owner or principal.
- The possessor acknowledges the superior rights of the principal.
- The juridical relationship is typically established through a contract, agreement, or legal obligation.
Legal Basis:
- Article 524 of the Civil Code states that possession may be exercised by the possessor personally or through another person.
- Article 537 further provides that acts performed by the possessor in the name of another person do not give rise to possession in their own name.
Types of Representation:
- Voluntary Representation: Established by contract or agreement, such as agency, lease, deposit, or trust.
- Legal Representation: Arising by operation of law, such as in cases of guardianship or administration of estates.
Implications for the True Owner:
- The principal or owner retains possession through their representative and may directly assert their rights against third parties.
- The representative cannot acquire ownership by prescription against the owner, unless they repudiate the relationship, and such repudiation is clearly communicated to the owner.
Examples:
- A caretaker occupies a property for the owner’s benefit.
- A trustee holds property in trust for a beneficiary.
Distinctions Between the Two Types
| Aspect | Possession in One’s Own Name | Possession in the Name of Another |
|---|---|---|
| Nature | Direct, independent possession. | Representational, dependent possession. |
| Intent | Asserts ownership. | Acknowledges the superior rights of another. |
| Legal Relationship | No juridical relationship with the true owner. | Typically governed by a contractual or legal obligation. |
| Ownership by Prescription | Possible after fulfilling statutory periods. | Not possible against the principal unless repudiation occurs. |
| Examples | Occupation of land claiming ownership. | Caretaker or trustee holding property. |
Legal Presumptions
Possession in One’s Own Name is Presumed:
- Article 541 of the Civil Code presumes that possession is exercised in one’s own name unless evidence suggests otherwise.
- This presumption aids those claiming acquisitive prescription.
Possession in the Name of Another Requires Proof:
- It must be established that the possessor is acting as a representative, whether through explicit agreement or legal obligation.
Key Jurisprudence
Cruz v. Cruz (G.R. No. 155879):
- This case illustrates the principle that possession in another’s name cannot ripen into ownership through prescription unless the possessor openly repudiates the ownership of the principal.
Heirs of Maningding v. Court of Appeals (G.R. No. 116716):
- The Supreme Court emphasized the importance of distinguishing between possession in one’s own name and possession in another’s name when determining ownership claims.
Tenancy and Leasehold Cases:
- Possession by tenants is always considered in the name of the landlord. Such possession cannot be converted into ownership through prescription, barring a clear repudiation of the tenancy.
Conclusion
Understanding the classification of possession as exercised in one’s own name or in the name of another is critical in property law. This distinction affects the acquisition of ownership, the rights and obligations of the parties involved, and the legal remedies available in disputes over possession. Legal practitioners must carefully assess the intent, acts, and juridical relationships surrounding possession to determine its proper classification.