PROPERTY: Immovable Properties

 

IMMOVABLE PROPERTY

 

DEFINITION

·         The law does not define what properties are immovable; they are merely enumerated.

·         The dictionary defines immovable property as that which is firmly fixed, settled, or fastened, and while in general, immovable property is that which is fixed in a definite place, still there are many exceptions to this general criterion.

CLASSES OF IMMOVABLE OR REAL PROPERTY

(1)    By nature – it cannot be carried from place to place

(2)    By incorporation – it is attached to an immovable in a fixed manner to be an integral part thereof

(3)    By destination – it is place in an immovable for the utility it gives to the activity carried thereon

(4)    By analogy – it is so classified by express provision of law because it is regarded as united to the immovable property

LANDS, BUILDINGS, ROADS AND CONSTRUCTIONS OF ALL KINDS (par. 1)

(1)    Land

-          Best example of immovable property

-          Even if land is rented, it is still immovable

-          Even if land is moved by an earthquake, an extraordinary happening, the land should still be considered immovable

-          However, a shovelful of land should be considered personal property since this no longer adhered to the soil

(2)    Buildings

-          GR: A building is immovable provided it is more or less a permanent structure independent of and regardless of the ownership of the land on which it is erected

-          XPN:

(a)    A structure which is merely superimposed on the soil may be considered movable.

(b)   A building or house which is sold to be demolished immediately or after a short time is to be regarded as movable because the subject matter of the contract are really the materials thereof.

(c)    Once a house is demolished, its character as an immovable ceases.

·         In a case where a building was included in a chattel mortgage executed by a company to secure the payment of the purchase price of the rice-cleaning machinery it bought, the SC emphasized that the mere fact that the parties decided to deal with the building as personal property does not change its character as real property. Furthermore, the High Court said that the mere fact that a factory building is mortgaged and sold, separate and apart from the land on which it stands, in no wise changes its character as real property. (Leung Yee v. F. L. Strong Machinery Co. & Williamson, 37 Phil. 644)

(3)    Roads and Constructions

-          Roads, whether public or private, are immovable. They are considered integral parts of the land.

-          Though the law says “constructions of all kinds adhered to the soil,” it is understood that the attachment must be more or less permanent.

TREES, PLANTS AND GROWING CROPS, WHILE THEY ARE ATTACHED TO THE LAND OR FORM AN INTEGRAL PART OF AN IMMOVABLE (par. 2)

(1)    Trees and Plants

-          No matter what their size may be, trees and plants are considered real property, by nature if they are spontaneous products of the soil, and by incorporation, if they are planted thru labor

-          GR: the moment they are detached or uprooted from the land, they become personal property

XPN: uprooted timber if the land is timber land

(2)    Growing Crops

-          By express codal provisions, considered as real property by incorporation

-          Under ROC, attached in the same way as real property

·         However, in the case of Sibal v. Valdez 50 Phil. 512, the SC,  gleaning from the decisions made by the Supreme Court of Spain and Supreme Court of Louisiana, made a lengthy discussion on how under certain conditions, growing crops may be considered as personal property. The Court concluded that par. 2 of Art. 334 of the Civil Code (now art. 415 of NCC), has been modified by Sec. 450 of the Code of Civil Procedure and by Act. No. 1508, in the sense that, for the purposes of attachment and execution, and for the purposes of the Chattel Mortgage Law, “ungathered products” have the nature of personal property. Mobilization by anticipation

EVERYTHING ATTACHED TO AN IMMOVABLE IN A FIXED MANNER, IN SUCH A WAY THAT IT CANNOT BE SEPARATED THEREFROM WITHOUT BREAKING THE MATERIAL OR DETERIORATION OF THE OBJECT (par. 3)

·         For the incorporated thing to be considered real property, the injury or breakage or deterioration in case of separation, must be substantial

·         The things included in this paragraph are called rex vinta in Roman Law.

·         According to a provision of the Partidas, although the things mentioned in paragraph 3 are temporarily separated from the immovable, they shall continue to be regarded as immovable if there is intent to put them back.

·         However, Tolentino believe that this rule is no longer controlling. He opined that the failure of the codifiers to reproduce the provision of the Partidas on the matter is an indication that they do not intend the rule to continue. Furthermore, the material fact of incorporation or separation is what determines the condition of these objects; so that, as soon as they are separated from the tenement, they recover their condition as movables, irrespective of the intention of the owner.

·         All objects placed by human agency on or under the surface with the intention of permanent annexation become part of the land and lose their identity as movables or chattels. Physical attachment, without intent of permanent annexation, is not in itself enough.

STATUES, RELIEFS, PAINTINGS OR OTHER OBJECTS FOR USE OR ORNAMENTATION, PLACED IN BUILDINGS OR ON LAND BY THE OWNER OF THE IMMOVABLE IN SUCH A MANNER THAT IT REVEALS THE INTENTION TO ATTACH THEM PERMANENTLY TO THE TENEMENTS (par. 4)

·         The objects must be place on the immovable by the owner of the latter, although not necessarily by him personally.

PAR. 3	PAR. 4
Cannot be separated from immovable without breaking or deterioration	Can be separated immovable without breaking or deterioration
Need not be placed by the owner	Must be placed by the owner, or by his agent, express or implied
Real property by incorporation	Real property by incorporation and destination

 

MACHINERY, RECEPTABLES, INSTRUMENTS, OR IMPLEMENTS INTENDED BY THE OWNER OF THE TENEMENT FOR AN INDUSTRY OR WORKS WHICH MAY BE CARRIED ON IN A BUILDING OR ON A PIECE OF LAND, AND WHICH TEND DIRECTLY TO MEET THE NEEDS OF THE SAID INDUSTRY OR WORKS (par. 5)

·         Refers to real property be destination or purpose

·         If the machine is still in the building, but is no longer used in the industry conducted therein, the machine reverts to the condition of a chattel. Upon the other hand, if still needed for the industry, but separated from the tenement temporarily, the property continues to be immovable.

·         Essential Requisites

1.       The placing must be made by the owner of the tenement, his agent, or duly authorized legal representative.

2.       The industry or works must be carried on in the building or on the land.

3.       The machines, etc., must tend directly to meet the needs of said industry or works.

4.       The machines must be essential and principal elements in the industry, and not merely incidental.

·         A thing which is movable in its nature only becomes immobilized when placed in a plant by the owner of the property, but not when so placed by a tenant, a usufructuary, or any person having only a temporary right, unless such person acted as the agent of the owner. (Davao Saw Mill Co. v. Castillo, 61 Phil. 709)

ANIMAL HOUSES, PIGEON-HOUSES, BEEHIVES, FISHPONDS OR BREEDING PLACES OF SIMILAR NATURE, IN CASE THEIR OWNER HAS PLACED THEM OR PRESERVES THEM WITH THE INTENTION TO HAVE THEM PERMANENTLY ATTACHED TO THE LAND, AND FORMING A PERMANENT PART OF IT; THE ANIMALS IN THESE PLACES ARE INCLUDED (par. 6)

·         The construction mentioned must permanently form part of the land and so intended by the owner

·         The inclusion of the animals in their breeding places was inserted by the Code Commission in order to obviate doubts as to whether or not they are real property.

·         Even if the animals are temporarily outside, they may still be considered as “real property,’’ as long as the intent to return is present

·         However, since animals, by their nature can be moved from place to place without injury, they are regarded as personal property in case of alienation and for purposes of criminal law.

MINES, QUARRIES, AND SLAG DUMPS WHILE THE MATTER THEREOF FORMS PART OF THE BED, AND WATERS, EITHER RUNNING OR STAGNANT (par. 8)

·         Mines, including the minerals still attached thereto, are real properties, but when the minerals have been extracted, the latter become chattels.

·         “Slag dump’’ is the dirt and soil taken from a mine and piled upon the surface of the ground.

·         The “waters” referred to are those still attached to or running thru the soil or ground. But “water” itself is personal property. On the other hand, canals, rivers, lakes, and such part of the sea as may be the object of appropriation, are classified as real property.

DOCKS AND STRUCTURES WHICH, THOUGH FLOATING; ARE INTENDED BY THEIR NATURE TO REMAIN AT A FIXED PLACE ON A RIVER, OR COAST (par. 9)

·         Though floating,’ they are classified as real property if intended by their nature and object to remain at a fixed place on a river, lake, or coasts.

·         A floating house tied to a shore or bank post and used as a residence is considered real property. The classification of the accessory, the floating house, follows the classification of the principal (the waters). However, if the floating house makes it a point to journey from place to place, it assumes the category of a vessel.

·         Vessels are considered personal property. As they are indeed very movable. However, because of their value and importance in the world of commerce, they partake to a certain extent of the nature and conditions of real property. The rule in the Civil Code with reference to acquisition of rights over immovable property can be applied.

·         In the case of FELS ENERGY, INC. v. PROVINCE OF BATANGAS, where the issue whether power barges can be the subject of real property taxes was raised, the SC ruled the affirmative. The court said that Article 415 (9) of the New Civil Code provides that “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 property. Thus, power barges are categorized as immovable property by destination, being in the nature of machinery and other implements intended by the owner for an industry or work which may be carried on in a building or on a piece of land and which tend directly to meet the needs of said industry or work.

CONTRACTS FOR PUBLIC WORKS, AND SERVITUDES AND OTHER REAL RIGHTS OVER IMMOVABLE PROPERTY (par. 10)

·         The words “contracts for public works’’ are used in lieu of “administrative concessions for public works’’ in the old Civil Code because they fit better the present government and governmental practice.

·         Where the res of a real right is real property, the right itself is real property; where it is personal property, the right itself is personal property.

·         GR: A personal right is always regarded personal property

XPN:  contracts for public works are considered as real property