CIVIL LAW > IX. PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS > B. Ownership > 8. Possession > b. Classification of Possession > ii. Possession in Concept of Owner and Possession in Concept of Holder

The classification of possession into possession in the concept of owner (possessio pro domino) and possession in the concept of a holder (possessio pro suo/possessio pro alieno) is an essential distinction in Philippine civil law, as provided under Articles 523 to 561 of the Civil Code of the Philippines. This distinction has critical implications for determining the nature, scope, and legal effects of possession.

1. Possession in Concept of Owner (Possessio Pro Domino)

Definition:

Possession in the concept of owner refers to the possession exercised by a person who acts as if they were the owner of the property. It involves the intention (animus domini) to claim ownership and treat the property as one’s own.

Key Characteristics:

Claim of Ownership:
- The possessor holds the property with the intention of claiming it as their own and exercising dominion over it.
Acts of Ownership:
- The possessor performs acts typically associated with ownership, such as using, enjoying, or disposing of the property.
Independence:
- The possession is exercised independently, not in recognition of another’s superior ownership.
Public and Notorious:
- Acts of possession are generally open and evident to the public, consistent with ownership.

Legal Presumptions:

Article 541, Civil Code: A possessor in the concept of owner is presumed to have just title and good faith unless proven otherwise.
Article 433, Civil Code: The possessor of a property in the concept of owner has the presumption of ownership unless another party proves a superior title.

Relevance to Ownership Acquisition:

Prescription:
- Possession in the concept of owner is required for acquiring ownership through ordinary acquisitive prescription (10 years with just title and good faith) or extraordinary acquisitive prescription (30 years without need of title or good faith) as provided under Article 1134-1137, Civil Code.
Proof of Ownership:
- This type of possession may serve as evidence of ownership in cases where ownership is disputed.

2. Possession in Concept of Holder (Possessio Pro Alieno)

Definition:

Possession in the concept of a holder refers to the possession exercised by a person who recognizes the ownership of another and holds the property on behalf of or in acknowledgment of that other person.

Key Characteristics:

Acknowledgment of Superior Ownership:
- The holder acknowledges that another party has a superior right to the property.
Dependent Possession:
- The possession is derivative and typically arises from contracts or relationships such as:
  - Lease
  - Deposit
  - Agency
  - Commodatum
  - Trust
No Intention to Own:
- There is no animus domini or intent to claim ownership over the property.
Conditional Enjoyment:
- The holder’s enjoyment or use of the property is subject to the terms of the agreement or relationship with the true owner.

Legal Effects:

No Acquisition by Prescription:
- A mere holder cannot acquire ownership through prescription, as they do not possess the property in their own name or as owner.
Obligation to Return:
- The holder has a legal duty to return the property to the owner upon termination of the agreement or upon demand.
Limited Rights:
- Rights of a holder are limited to what is expressly granted by the true owner.

Examples of Possessors in Concept of Holder:

A tenant in a lease agreement.
A borrower in a commodatum.
A bailee in a deposit.
An agent in possession of the principal’s property.

3. Practical Distinctions and Implications

Basis of Possession:

In Concept of Owner: Acts based on ownership, with no acknowledgment of another’s superior rights.
In Concept of Holder: Acts consistent with holding property on behalf of the true owner.

Intention:

In Concept of Owner: Animus domini is present.
In Concept of Holder: Animus domini is absent.

Prescriptive Rights:

In Concept of Owner: Can lead to acquisition of ownership through prescription.
In Concept of Holder: Cannot acquire ownership; possession is derivative and subordinate.

Burden of Proof:

In Concept of Owner: Presumed to be the owner unless proven otherwise.
In Concept of Holder: No presumption of ownership; acknowledgment of another’s title negates such presumption.

Transition from Holder to Owner:

A holder may transition into possession in the concept of owner if they repudiate the owner’s title and start exercising acts of dominion. This must be open, public, and communicated to the true owner.

4. Judicial Applications

Jurisprudence:

Domingo v. Garlitos (1954):
- The Supreme Court emphasized the importance of animus domini in possession in the concept of owner.
Heirs of Malabanan v. Republic (2009):
- Distinguished between possession for purposes of acquisitive prescription and mere holding in trust for another.
Cruz v. Garcia (2013):
- Reinforced that possession in the concept of holder cannot ripen into ownership without repudiation and evidence of animus domini.

Key Doctrines:

Possession in the concept of owner is a positive assertion of ownership rights, while possession in the concept of holder negates any claim to ownership and remains dependent on another’s title.

5. Conclusion

The classification of possession into possession in the concept of owner and possession in the concept of holder is foundational in Philippine civil law. Understanding the nature and scope of these types of possession is essential for resolving disputes over property, determining rights under acquisitive prescription, and analyzing the legal implications of possession-based claims. The distinction highlights the interplay between the possessor's intention and the recognition (or lack thereof) of another’s ownership, underscoring the principle that possession must be clear, unequivocal, and consistent with the rights asserted.