THE FUNDAMENTALS OF PROPERTY OWNERSHIP ?
the General Rule of Holding or owning a Real Estate?
Rule – only Filipino citizens and corporations at least
sixty percent of the capital of which is owned by Filipino
are entitled to acquire and own land in the
Exceptions to General Rule – Alien acquisition of real
estate in the Philippines is allowed in the following
Acquisition before the 1935 Constitution;
Acquisition thru hereditary succession if the alien
acquires is a legal heir.
of not more than forty percent interest in a condominium
by former natural-born Filipino citizens subject to the
limitations prescribed by law (Batas Pambansa 185 and R.A.
Filipino who marries an alien retains her Philippine
citizenship (unless by her act or omission she is deemed
to have renounced Philippine citizenship), and may
therefore acquire real estate in the Philippines.
ACQUISITION BY FORMER NATURAL-BORN FILIPINO CITIZENS
acquisition is not limited to voluntary deeds (such as
sale or donation) but includes involuntary deeds (such as
tax sale, foreclosure sale, or execution sale).
2. Maximum area that may be acquired is as follows :
residential purpose – 1,000 square meters of urban land or
one hectare of rural land.
business purpose – 5,000 square meters of urban land or
three hectares of rural land.
“Business purpose” refers to the use
of the land primarily, directly, and actually in the
conduct of business or commercial activities in the
broad areas of agriculture, industry and services,
including the lease of land, but excluding the buying and
3. In case of married couple where both spouses are
former natural-born Filipino citizens, one or both of them
may avail of the privilege, provided that the total
acquisition shall not exceed the maximum area allowed.
transferee who already owns urban or rural land for
residential purpose acquired while still a Filipino
citizen, may acquire additional urban or rural land for
residential purpose which, when added to that already
owned by him, shall not exceed the maximum area allowed by
The same privilege applies to a transferee who already owns
urban or rural land for business purpose.
transferee who already acquired urban land for residential
purpose shall be disqualified to acquire rural for
residential purpose, and vice-versa. The same rule applies
to a transferee of land for business purpose.
However, a transferee of residential land under B.P. 185
may still avail of the privilege to acquire land for
business purpose under R.A. 8179.
registration of a conveyance in favor of the transferee,
he must submit to the
Register of Deeds a sworn statement on the following: date
and place of birth;
name of parents, brothers, sisters, and spouse; location,
area and mode of acquisition of present landholding; date
when he lost his Philippine citizenship; and his present
For transferees of land for residential purpose, the sworn
statement shall include his intention to reside
permanently in the
For transferees of land for business purpose , the sworn
statement shall include a declaration to use the land for
business purpose. Furthermore, the transferee shall submit
a certification of business name registration with the
Bureau of Trade
Regulation and Consumer Protection. And in case the land is
agriculture, he shall likewise submit a certification from
the Department of Agrarian Reform that the land is a
retained area of the transferor and an affidavit of the
transferee that the total landholding inclusive of the
land to be acquired does not exceed five hectares.
THE PUBLIC DOMAIN
the Constitution, lands of the public domain are
classified into agricultural, forest or timber, mineral,
and national parks.
Alienable lands of the public domain shall be limited to
citizens may acquire alienable lands of the public
domain not more than twelve hectares by purchase ,
homestead , or patent ; or lease not more than 500
Private corporations cannot acquire, but may only
lease alienable lands of the public domain for a period
not exceeding twenty-five years, renewable for the same
term, and not to exceed 1,000 hectares.
STEWARDSHIP CONCEPT OF OWNERSHIP
Ownership carries with it a social obligation. As
stewards of their land, owners are obliged to use their
property to promote not only their interest but also the
general welfare. When a person’s landholding exceeds the
requirement of his needs, or his utilization is not
conducive to general welfare, the State may exercise its
power to regulate and control ownership.
This refers to the “bundle of rights” or
attributes which are inherent or appurtenant to ownership,
without any limitation or restriction other than those
imposed by law or contract. The bundle of rights includes
the right to use, to possess, to the fruits, to dispose,
and to vindicate or recover.
RIGHTS OF ACCESSION
General – The ownership of property gives the right by
accession to everything which is produced thereby, or
which is incorporated or attached thereto, whether
naturally or artificially.
Respect to Produce of Property – To the owner belongs
fruits – the spontaneous product of the soil.
Industrial fruits – those produced by land cultivation or
fruits – the rental income of buildings and/or lands.
Respect to Immovable Property :
owner of land on which anything has been built, sown or
planted in good faith shall have the right :
aa) To appropriate as his own the works, sowing or planting
after payment of indemnity provided by law.
bb) To oblige the builder or planter to pay the price of
the land. However, the builder or planter cannot be
obliged to pay for the if its value is considerably more
than that of the building or planting. In such case, he
shall pay reasonable rent if the owner does not choose to
appropriate the building after proper indemnity. The
parties shall agree on the terms of the lease and in case
of disagreement, the court shall fix the terms thereof.
owner of the land on which anything has been built ,
planted or sown in bad faith may :
aa) Demand and demolition of the work or removal of
the planting or sowing at the expense of the builder or
bb) Compel the builder or planter to pay the price
of the land and the sower, the proper rent.
The landowner is also entitled to damages from the
builder, planter or sower.
was bad faith on the part of the landowner and the builder/planter/sower, the rights of the parties shall be
the same as if both had acted in good faith.
owners of land adjoining the banks of rivers belong the
accretion which they gradually receive from the effects of the
current of the water.
owners of estates adjoining ponds or lagoons do not
acquire the land
left dry by the natural decrease of the waters, or lose
that inundated by them in extraordinary floods.
beds which are abandoned through the natural change in the
course of the waters belong to the owners whose lands are
occupied by the new bed in proportion to the are lost.
However, the owner’s of the land adjoining the old bed
shall have the right to acquire the same by paying the
value of the area occupied by the new bed.
a river, changing its course by natural causes, opens a
new bed through a private estate, the bed shall become a
LIMITATIONS TO BUNDLE OF RIGHTS
Legal or Governmental Limitations:
refers to land use classifications and the allowable
utilization under each classification.
– the power of the government or any of its political
subdivisions to impose charge or burden upon persons,
property or property rights for the use and support of the
Domain – the power of the State or any of its
instrumentalities to take private property for public use
and payment of just compensation.
provisions of law such as legal easement, the requirement
of legitime in succession, prohibition against sale and
encumbrance of property acquired by patent, rent control,
laws on subdivision development, urban and agrarian
Contractual or Voluntary Limitations – Those imposed by
the grantor of the property to the grantee, either by
contract (e.g. donation), or by last will; or those
imposed by the owner, himself such as voluntary easement,
mortgage, lease, use restrictions in subdivision
treasure belongs to the owner of the land, building, other
property on which it is found.
discovery is made on the property of another, or of the
State or any of its subdivisions, and by chance, one-half
of the treasure, shall be allowed to the finder. If the
finder is a trespasser, he shall not be entitled to any
share of the treasure.
things found be of interest to science or arts, the State
may acquire them at their just price, which shall be
divided in conformity with the rule above stated.
treasure, for legal purpose is understood to be any hidden
and unknown deposit of money, jewelry, or other precious
objects, the lawful ownership of which does not appear.
“Title” is not synonymous with Torrens Certificate of
Title. Rather, it is a generic word which means proof,
evidence, or monument of ownership, such as tax
declaration, realty tax receipts, deed of sale, and
Torrens Certificate of Title. But, of course, the best
title or best evidence of ownership is the Torrens Title
because it is indefeasible, imprescriptibly, and binding
against the whole world.
Grant - voluntary transfer or conveyance of private
property by a private owner, such as sale or donation.
Grant – acquisition of alienable lands of the public
domain by homestead patent, free patent, sales patent, or
other government awards.
Involuntary Grant – acquisition of private party against
the consent of the former owner, such as foreclosure sale,
execution sale, or tax sale.
Inheritance – acquisition of private property through
Reclamation – filling of submerged land, subject to
existing laws and government regulations.
Accretion – acquisition of more lands adjoining the banks
of rivers due to the gradual deposit of soil as a result
of the river current.
Prescription – acquisition of title by actual, open,
continuous, and uninterrupted possession in the concept of
owner for the period required by law.