a. Immovable Property

Immovables

Immovable property has four juridical classifications: (Tolentino, supra, p. 8)

• By nature
• By incorporation
• By destination
• By analogy

What are those that are Immovable by NATURE?

What cannot be moved from place to place?

• Land
• Buildings
• Roads
• Constructions of all kinds adhered to soil
• Mines, quarries, and slag dumps, while the matter forms part of the bed.
• Waters, either running or stagnant.

Note: A structure, which is merely superimposed on the soil, may be considered movable. Similarly, a shovelful of land is a movable for it is no longer adhered to the soil.

Note: When the minerals have been extracted, they become movables.

Buildings are always immovable under the Code. The mere fact that the parties to a contract treat the building as separate does not change its character as immovable property. (Punsalan v. Lacsamana, GR No. L-55729, 1983)

Once a house is demolished, its character as an immovable ceases. (Bicerra v. Teneza, GR No. L16218, 1962)

A mortgage of land necessarily includes buildings, in the absence of stipulation of the improvements thereon. A building by itself may be mortgaged apart from the land on which it has been built. Such would be a real estate mortgage for the building would still be considered immovable property. (Leung Yee v. Strong Machinery, GR No. L-11658, 1918)

A valid real estate mortgage can be constituted on the building erected on the land belonging to another. (Prudential Bank v. Panis, GR No. L-50008, 1987)

A party to a chattel mortgage is estopped from assailing the deed as void on the ground that the house subject of the mortgage is real property. Parties are bound by their agreement, but not third persons. (Tumalad v. Vicencio, GR No. L-30173, 1971)

If contracting parties stipulate that a real property be considered personal, they are consequently estopped from claiming otherwise. However, third persons acting in good faith are not affected by the stipulation characterizing the subject machinery as personal. (Serg’s Products v. PCI Leasing, GR No. 137705, 2000)

What are Immovables by INCORPORATION?

What are those that are essentially movables but attached to an immovable in a fixed manner to be an integral part of it?

• Trees, plants, and growing crops (Art. 415 (2))
• Everything attached to an immovable in a fixed manner (Art. 415 (3))
• Statues, reliefs, paintings, or other objects for use or ornamentation, placed in buildings or on land (Art. 415 (4))
• Animal houses, pigeon houses, beehives, fishponds, or breeding places of similar nature (Art. 415 (6))

What are considered as Trees, Plants, and Growing Crops?

Trees and plants are immovable by incorporation if they are planted through labor but are immovable by nature if they are spontaneous products of the soil.

Note: Once cut or uprooted, they cease to be immovable.

What are the Exceptions?

Trees and plants cease to be immovable under Article 415(2) of the Civil Code once severed or uprooted from the land.

What are the requisites of the properties that are attached to an Immovable in a Fixed Manner?

• The object must be attached to an immovable in a fixed manner;
• It cannot be separated without breaking the material or deteriorating the object. (Art. 415 (3))

What are the Schools of Thought in Temporary Separation?

May either be:

• Immovable if there is intent to put them back; or
• Movable because the material fact of incorporation is what determines its condition.

What are the requisites of Statues, Reliefs, Painting, or Other Objects for Use or Ornamentation?

• Placed by the Owner of the immovable (not the object) or his agent;
• Intent to attach them Permanently to the tenements. (Art. 415 (4))

What are the requisites of Animal Houses, Pigeon Houses, Beehives, Fishponds, or Breeding Places of Similar Nature?

• Placed or preserved by their owner with the intention that they remain permanently attached to the land and form a permanent part of it;
• Intent to attach them Permanently to the land. (Art. 415 (6))

Note: Includes the animals found therein.

What are considered as Immovable by DESTINATION? – What are properties that are movable placed on immovable for the utility it gives to the activity carried thereon?

• Machinery, receptacles, instruments, or implements (Art. 415 (5))
• Fertilizer actually used on a piece of land (Art. 415 (7))
• Docks and structures which, though floating, are intended by their nature and object to remain at a fixed place on a river, lake, or coast (Art. 415 (9))

What are the requisites of Machinery, Receptacles, Instruments or Implements for an Industry or Works?

• Industry or works must be Carried on inside the building or on the land;
• Placed by the Owner of the building or property or his agent;
• Machines must be Essential and principal elements in carrying out the industry;
• Machines must tend Directly to meet the needs of said industry or works (adaptability). (Art. 415 (5))

NOTE: Incidentals are not included (movables without which the businesses can still continue or carry on their functions)

Machinery is immobilized if placed by owner of plant or property; not so if placed by a tenant or usufructuary or any person having any temporary right. (Davao Sawmill Co. v. Castillo, GR No. L40411, 1935)

Equipment destined only to repair or service a transportation business may not be deemed real property. (Mindanao Bus v. City Assessor, GR No. L17870, 1962)

NOTE: Attachment or incorporation to the immovable is not essential

Docks and Floating Structures

Docks and structures which, though floating, are intended by their nature and object to remain at a fixed place on a river, lake, or coast are considered immovable. (Art. 415 (9))

NOTE: A floating house may be immovable if, by its nature and object, it is intended to remain at a fixed place on a river, lake, or coast; being tied to a shore or bank post may indicate that intention. (Art. 415 (9))

Note further: Although personal property, vessels partake, to a certain extent, the nature and conditions of real property because of their value and importance in the world of commerce.

Immovable by Analogy or by Law – Contracts for public works and servitudes & other real rights over immovable property (Art. 415 (10))

What are the Tests To Determine Whether Property Is Real or Personal?

• Whether the property can be transported or carried from place to place
• Whether such change of location can be made without injuring the immovable to which the object may be attached
• Whether the object does not fall within any of the cases enumerated in Art. 415

Public Dominion; Patrimonial; Private – Civil Code, arts. 419-425

CHAPTER 3

Property in Relation to the Person to Whom It Belongs

Article 419. Property is either of public dominion or of private ownership. (338)

Article 420. The following things are property of public dominion:

(1) Those intended for public use, such as roads, canals, rivers, torrents, ports and bridges constructed by the State, banks, shores, roadsteads, and others of similar character;

(2) Those which belong to the State, without being for public use, and are intended for some public service or for the development of the national wealth. (339a)

Article 421. All other property of the State, which is not of the character stated in the preceding article, is patrimonial property. (340a)

Article 422. Property of public dominion, when no longer intended for public use or for public service, shall form part of the patrimonial property of the State. (341a)

Article 423. The property of provinces, cities, and municipalities is divided into property for public use and patrimonial property. (343)

Article 424. Property for public use, in the provinces, cities, and municipalities, consist of the provincial roads, city streets, municipal streets, the squares, fountains, public waters, promenades, and public works for public service paid for by said provinces, cities, or municipalities.

All other property possessed by any of them is patrimonial and shall be governed by this Code, without prejudice to the provisions of special laws. (344a)

Article 425. Property of private ownership, besides the patrimonial property of the State, provinces, cities, and municipalities, consists of all property belonging to private persons, either individually or collectively. (345a)