CIVIL LAW: PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS

A. Property

1. Requisites

Property is a fundamental concept under Philippine civil law. It encompasses the rights and obligations regarding the ownership, possession, use, and disposition of things. Article 414 of the Civil Code of the Philippines classifies property into two general categories: movable and immovable. The requisites for property under the law are as follows:

I. Requisites for Property to Exist

Substance or Existence in Reality
- The object must exist physically or at least be capable of coming into existence. Future things (e.g., future goods) may still be subject to ownership, but they must be identifiable and have a potential to exist.
Utility or Usefulness
- The thing must be capable of satisfying a need or giving some benefit to humans, whether directly (e.g., a house for shelter) or indirectly (e.g., a machine for production). If a thing lacks utility, it cannot be the object of property rights.
Subjection to Human Control or Appropriation
- The thing must be susceptible to control, dominion, or appropriation by a person or entity. For example:
  - Air in the atmosphere is not subject to ownership unless captured or confined in a manner that subjects it to human control.
  - Certain resources like water or minerals may be subject to regulatory laws but remain capable of appropriation under specified conditions.
Lawfulness
- The object must not be outside the commerce of man. This includes:
  - Things prohibited by law (e.g., illegal drugs, contraband).
  - Things not susceptible to private appropriation (e.g., res communes like open seas).
  - Things dedicated to public use or service, unless their appropriation is authorized by law.

II. Classification of Property

Immovable Property (Real Property)
Under Article 415 of the Civil Code, immovable property includes:
- Land, buildings, roads, and constructions adhered to the soil.
- Trees, plants, and growing fruits as long as they are attached to the ground.
- Everything attached to an immovable property in a fixed manner (e.g., machinery installed for industry or commerce).
- Dikes and dams intended for permanent use.
Significance:
- Subject to formal requirements in transfer (e.g., written contract, registration with the Registry of Deeds).
- Governed by rules on accretion, accession, and adverse possession specific to immovables.
Movable Property (Personal Property)
Article 416 defines movable property as all things not classified as immovables. Examples:
- Tangible: Furniture, jewelry, cars.
- Intangible: Shares of stock, credits, intellectual property.
Significance:
- Simpler rules for transfer (e.g., delivery or symbolic acts).
- Movables are susceptible to pledge and chattel mortgage.

III. Ownership and Rights Over Property

Ownership Defined
Article 427 states that ownership is the independent right to enjoy and dispose of a thing, without restrictions other than those imposed by law or contract.
Characteristics of Ownership
- Plenary: It encompasses all rights to the thing, including possession, use, enjoyment, and disposition.
- Perpetual: Ownership subsists until extinguished by law (e.g., prescription, expropriation).
- Exclusive: Ownership is generally exclusive unless shared (e.g., co-ownership).
Bundle of Rights (Article 428)
- Jus utendi (right to use).
- Jus fruendi (right to fruits).
- Jus abutendi (right to consume or dispose).
- Jus disponendi (right to transfer or alienate).
- Jus vindicandi (right to recover possession or ownership).

IV. Modes of Acquiring Property

Original Modes
- Occupation: Acquisition of res nullius (things without an owner, like wild animals or abandoned property).
- Intellectual Creation: Copyright over original works of authorship.
Derivative Modes
- Tradition or Delivery: Transfer of ownership through delivery (actual, constructive, or symbolic).
- Succession: Ownership passed through inheritance.
- Law: Acquisition by legal mandate (e.g., accretion, prescription).
- Contracts: Sale, barter, donation.
Other Special Modes
- Expropriation: Taking by the State for public use, with just compensation.
- Adverse Possession (Prescription): Ownership acquired through continuous possession for a period defined by law (e.g., 10 years for good faith possession, 30 years for bad faith).

V. Modifications to Ownership and Property Rights

Accession
- Extensions or additions to property resulting from natural or artificial means (e.g., alluvium, avulsion).
Co-ownership
- Multiple persons share ownership over a single property. Governed by Articles 484 to 501 of the Civil Code.
Limitations on Ownership
- Police Power: Zoning, environmental regulations.
- Taxation: Real property tax, estate tax.
- Eminent Domain: State’s power to take private property for public use.
- Servitudes or Easements: Rights imposed on property for the benefit of another property or person.
Public vs. Private Property
- Public property includes those intended for public use or owned by the State in its governmental capacity.
- Private property refers to all other property owned by individuals, corporations, or the State in a proprietary capacity.

VI. Relevant Jurisprudence

Heirs of Malabanan v. Republic (G.R. No. 179987, 2009)
- Clarified rules on reclassification and ownership of lands of public domain.
Republic v. Court of Appeals and Naguit (G.R. No. 144057, 2005)
- Addressed requirements for conversion of public land into private ownership.
Tan v. Valdehueza (G.R. No. 149085, 2006)
- Emphasized the distinction between possession and ownership in adverse possession cases.

This framework ensures a robust understanding of property requisites under Philippine civil law.