CLASSIFICATION OF PROPERTY ACCORDING TO OWNERSHIP

The classification of property based on ownership under Philippine civil law focuses on the distinction between properties that are privately owned and those that are owned by the public or government. This classification is crucial in determining the rights and limitations applicable to the use, transfer, and disposition of such properties.

1. Privately Owned Property

Privately owned property refers to assets owned by private individuals, partnerships, or corporations. These properties are governed by the rules of ownership as provided in the Civil Code of the Philippines, particularly under Book II, Title II.

Key Features:

Full Control: The owner has full control, subject only to general legal limitations such as zoning laws, taxation, and other regulations for public welfare.
Transferability: Ownership rights over privately owned property may be transferred through sale, donation, barter, succession, or other lawful means.
Exclusivity: Ownership is exclusive, meaning others cannot use or occupy the property without the owner’s consent unless otherwise provided by law (e.g., easements or eminent domain).
Examples:
- Residential properties
- Commercial establishments
- Agricultural lands owned by private persons

2. Publicly Owned Property

Publicly owned property refers to assets owned by the State or any of its subdivisions (provinces, cities, municipalities, or barangays). Public ownership is further subdivided into property for public use and property of public dominion not for public use.

A. Property for Public Use

Defined under Article 420 of the Civil Code, these are properties intended for general use by the public. They are considered inalienable and cannot be appropriated for private ownership while they retain their public use designation.

Examples:

Roads, bridges, public plazas, parks, and rivers
Public markets and other similar facilities directly benefiting the populace

Key Characteristics:

Inalienable While Public Use Exists: Such properties cannot be sold, transferred, or disposed of unless officially reclassified as patrimonial property.
Use by the Public: Open for unrestricted use by all members of society, subject to regulatory control.

B. Property of Public Dominion Not for Public Use

Also under Article 420, these are properties owned by the State but are not intended for direct public use. They are, however, still held for public purposes, such as governmental operations.

Examples:

Military installations
Government offices and buildings
State-owned forests or mineral reservations

Key Characteristics:

Inalienable Until Reclassified: Like property for public use, they cannot be disposed of unless declared patrimonial.
Reserved for State Functions: These assets are utilized to perform essential governmental roles.

C. Patrimonial Property

Defined under Article 421, patrimonial property refers to State-owned properties that are no longer intended for public use or public service. Once declared patrimonial, these properties can be alienated or leased.

Key Characteristics:

Alienability: Patrimonial properties may be sold, leased, or otherwise disposed of by the State following applicable laws and regulations.
Private Use: Unlike public dominion properties, patrimonial assets may be converted for private use once properly acquired.
Examples:
- Lands of the public domain classified as alienable and disposable
- Old government-owned buildings sold at public auction

3. Ownership by Local Government Units (LGUs)

Properties owned by local government units (LGUs) are classified similarly:

Public use properties (e.g., municipal halls, local roads, parks)
Patrimonial properties (e.g., LGU-owned commercial land or real estate projects)

Ownership and control are subject to provisions in the Local Government Code of the Philippines.

4. Mixed Ownership

In some cases, property may involve shared ownership, such as:

Co-ownership: Where multiple individuals share ownership rights over a single property, governed by Articles 484–501 of the Civil Code.
Joint Ventures or Partnerships: Properties owned collectively by private entities and the government in certain projects, subject to public-private partnership agreements.

5. Regulatory Considerations

Ownership classifications under Philippine civil law are further influenced by specific laws:

The Public Land Act (Commonwealth Act No. 141): Governs alienable and disposable lands of the public domain.
Indigenous Peoples’ Rights Act (RA 8371): Recognizes ancestral domain and lands owned collectively by indigenous peoples.
The Constitution: Article XII limits foreign ownership of land and defines national patrimony.

Key Distinctions Between Private and Public Ownership

Aspect	Private Ownership	Public Ownership
Purpose	For private benefit and use	For public benefit or governmental functions
Transferability	Freely transferable, subject to restrictions	Restricted; requires reclassification for alienability
Regulatory Framework	Civil Code, taxation, local ordinances	Civil Code, Constitution, special laws
Examples	Homes, private farms, commercial buildings	Parks, roads, government offices, patrimonial land

Understanding these distinctions helps in properly determining ownership rights and the legal implications for acquisition, use, and disposition under Philippine law.