Ownership is one of the fundamental rights under Philippine law, governed primarily by the provisions of the Civil Code. It is a comprehensive right granted to individuals, providing them with the ability to possess, use, enjoy, and dispose of property.

 

However, this right is not absolute and is subject to limitations prescribed by law. The Civil Code sets out the rules on the nature, kinds, and effects of ownership, as well as the rights and obligations of owners. It provides a detailed framework for understanding ownership, its acquisition, the rights of owners, and the limitations that govern the use of property.

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Ownership is defined under Article 428 of the Civil Code:

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“By ownership is meant the right of a person to enjoy and dispose of a thing in the most absolute manner, provided it is not contrary to law, morals, public order, or public policy.”

 

Ownership confers upon the owner the right to enjoy, use, and dispose of property, subject to the limitations provided by law. However, the right to use or enjoy property can be subject to restrictions and may be governed by certain conditions depending on the nature of the property.

 

1. Definition and Scope of Ownership

 

Ownership is the legal right to possess, use, and dispose of a thing, either movable or immovable, at one’s discretion, within the bounds of law. The right to ownership is comprehensive and unrestricted unless limited by law, public policy, or public order.

 

Articles 428-429 of the Civil Code elaborate on the broad scope of ownership, which includes not just the right to possess, but also the right to use and dispose of the property. These articles emphasize that an owner may fully enjoy the rights attached to ownership, provided that they do not contravene the law.

 

2. Essential Characteristics of Ownership

 

The Civil Code outlines the essential characteristics of ownership, including:

 

The Right to Use (Usus): The right to use the property for its intended purpose. It includes the right to occupy, cultivate, or extract resources from it. An owner can utilize the property as they see fit, within legal bounds.

 

The Right to Enjoy (Fructus): The right to enjoy the fruits or benefits derived from the property. This includes income, yield, or any other benefit derived from the property.

 

The Right to Dispose (Abusus): The right to dispose of the property in any way, including selling, donating, bequeathing, or otherwise transferring the property to another.

 

Right to Recover Possession (Reipersecutory Right): The right to seek recovery of the property if someone else possesses it without the owner’s consent.

 

Articles 429-431 of the Civil Code affirm the comprehensive nature of ownership, with the right to transfer, alienate, and dispose of property freely, subject to legal limitations.

 

3. Kinds of Ownership

 

There are different kinds of ownership under the Civil Code, classified as follows:

 

a) Absolute Ownership

 

This is the most comprehensive form of ownership. The owner has the right to fully enjoy and dispose of the property without any restrictions, except those imposed by law.

 

b) Qualified Ownership

 

This refers to ownership that is limited or encumbered by certain rights, such as in cases of usufruct, where the owner’s rights are limited to enjoyment or use while the title remains with another individual.

 

c) Co-Ownership (or Joint Ownership)

 

Article 485 defines co-ownership as ownership held by two or more persons over the same property. Each co-owner has an undivided interest in the property, meaning that while they may possess a certain percentage of ownership, they do not have specific rights to particular parts of the property.

 

Article 494 further provides that co-owners may only dispose of their share of the property, and decisions about the property, such as its sale or management, require consent from all co-owners unless otherwise agreed upon.

 

d) Usufruct

 

Article 561 defines usufruct as a right granted to a person (called the usufructuary) to use and enjoy the benefits of a property that belongs to another person (called the naked owner). Usufructuary ownership is limited in that the usufructuary cannot dispose of the property or alter its fundamental nature.

 

4. Acquisition of Ownership

 

Ownership can be acquired in various ways, including:

 

By Occupation: Article 450 of the Civil Code allows a person to acquire ownership over a thing by taking possession of a property that is unowned, such as discovering a wild animal, finding abandoned property, or appropriating public things that are not subject to private ownership.

 

By Prescription: Article 1134 of the Civil Code allows a person to acquire ownership by continuous possession over a period of time. If the person in possession of the property does so without opposition for a certain number of years, they may become the lawful owner by prescription, depending on whether the property is movable or immovable.

 

By Donation: Article 748 provides that ownership can be transferred by donation, with the transfer of ownership happening when the donee accepts the gift, and the donor’s intention is expressed clearly.

 

By Sale: A person may acquire ownership of property through the sale or purchase of the property in accordance with Article 1458 of the Civil Code. The ownership is transferred once the contract of sale is perfected and the price is paid.

 

By Succession: Articles 774-1023 govern the acquisition of ownership through inheritance. When a person dies, their property passes to their heirs, and ownership is transferred in accordance with the terms of the will or, in the absence of a will, by the rules of intestate succession.

 

5. Rights of the Owner

 

Under the Civil Code, the owner has several fundamental rights over their property:

 

The right to exclude others: Under Article 429, the owner may exclude others from using or enjoying their property. This is a natural consequence of ownership, as no one may interfere with the peaceful possession of the owner without consent.

 

The right to dispose of the property: An owner may freely transfer, sell, lease, or even give away their property, provided that such actions do not violate the law.

 

The right to protect possession: An owner has the right to seek legal remedies in cases of illegal dispossession, which is protected under the right to “reipersecutory” action in Article 539.

 

6. Limitations on Ownership

 

Although ownership is a powerful right, it is subject to limitations imposed by law, including:

 

Eminent Domain: The government may take private property for public use through the power of eminent domain, provided that just compensation is paid. This power is outlined in Article 4 of the Constitution and Article 428 of the Civil Code.

 

Nuisance: Article 694 allows for restrictions on the use of property that constitutes a nuisance, i.e., actions that affect the health, safety, or comfort of others. Owners are prohibited from using their property in a way that causes harm to others.

 

Environmental Protection: Laws on environmental protection and conservation can impose restrictions on property use, especially on land that contains endangered species or is located in protected zones.

 

Zoning Laws: Article 429 provides that local governments have the authority to impose restrictions or regulations on land use through zoning laws, which may prevent owners from using their property for certain purposes.