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Long qu

iz on Co-ownership & Possession ____________________________________

Property RW9

February 9, 2013

Instructions:

You are about to answer essay type hypothetical questions. Write legibly and in double space.

Cite the applicable law or jurisprudence, if possible. Think before you answer. When making erasures,

simply overwrite a one bar line over the answer you wish to change. State your answers to each

number in no more than 5 sentences. Do not make unnecessary markings on either the question or the

answer. Make your answers brief, concise and straight to the point. Do not re-state the questions in

your booklet. Good luck.

I. 20%

A, B, C, D & E are co-owners of a parcel of land, 2,000 sq. meter more or less, situated in

Manila by hereditary succession. They are all residents of the United States. Incidentally, all the heirs

except E, 10 years old, are of legal age.

Problem I.

In the above facts, A, the eldest, came back to Manila and obtained the loan from the bank

using as collateral the 2,000 square meter lot and the loan proceeds thereof was used to construct a

mid-rise condominium project. Upon full construction of the condominium, he then proceeded to sell

the units.

Questions:

1. Was the loan and the mortgage of the land valid? If so, what are the requirements to make

the loan and mortgage of the land valid?2. Assume that B did not want to loan the property and to construct a condominium project on

the said property, may he validly object considering that the project redounded for the

benefit of the co-ownership? Notwithstanding Bs objection, can the other co-owners proceed

with the loan and mortgage and the construction of the condominium project?

3. Assume that E, the minor, was thrilled with the idea of his other siblings and consented to the

acts of A, may he validly do so? If yes, under what circumstances? If no, why?

4. Assume that the mortgage debt was not paid and the bank now goes after the property, may

the bank validly do so considering that B did not consent to the actions of his siblings and

considering further that E is a minor?

5. Assume that all the siblings all agreed to secure a loan and constructed the Condominium

project? May partition still be made prior to the sale of the units to the public?

6. Assume that the sale to the public had all been done, may partition still be done among the

heirs.

II. 15%

X, a student, urgently needed money to fund his valentines date. He gave his Iphone to his classmate,

Y with instructions to sell it. Unfortunately, Y could not sell the same because of the high price and

instead pawned the same to Z, a pawnshop. y pocketed the money. Upon discovery, X decided to

claim the Iphone from the Z. Z refused.

7. Can Z validly refuse to return the Iphone to X? Why

Case in point is Dizon vs. Suntay. One who has lost or has been unlawfully deprived of a

movable may recover the same from the person in possession of the same and the only

defense the latter may have is if he has acquired it in good faith at a public sale in which

case the owner cannot obtain its return without reimbursing the price paid therefore. In

the present case, not only has the ownership and the proceeds of the pledge

misappropriated, it has also been unquestionably proven but also that Y has fraudulently

and in bad faith, disposed of and pledged them contrary to agreement. X is not estopped

when his property has been unlawfully pledged by another.

8. Assume that the Iphone was already auctioned and is now with A, can X validly recover the

same? If yes, under what circumstance/s?

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If the Iphone has already been auctioned and is now with A, X can still recover BUT ONLY IF HE

REIMBURSE TO A THE AMOUNT HE PAID TO Z, the pawnshop.

9. Assume that the Iphone was sold and delivered by Y to A, who paid in full but Y did not give

the proceeds of the sale to X, may the latter still recover from A?

The possession of movable property acquired in good faith is equivalent to a title. A

has acquired title to the movable property. Remember that the agreement between

X and Y was for the latter to sell the Iphone, which he did, only then he did not give

the proceeds of the sale. Ys liability does not affect the good faith of A.

10.Assume that the Iphone was stolen from X by C who sold to D who sold to E, can X still recover

the Iphone from E?

The rule states that whomever may have been deprived of his property in consequence of a

crime is entitled to the recovery thereof, even if such property is in possession of a third party

who acquired it by legal means other than those expressly stated in article 464 of the Civil

Code. Thus X may still be able to acquire the Ipone even from E.

III. 20%

Representing himself to be the Dean of the College of Law of the Polytechnic University of the

Philippines, A ordered for a complete set of SCRA from REX bookstore for which the latter prepared

an invoice and delivered to the address of A, who in turn paid a check. Within the day, A in turn sold

the complete set of SCRA TO B, who paid in cash. Before As check cleared, he again ordered another

set of SCRA from REX bookstore but this time the latter refused. After three days, As check wasdishonored. REX bookstore sought the assistance of the police and accosted A for questioning who

later divulged the name and address of B, his buyer. Rex Bookstore now sues B for recovery of the

complete set of SCRA allegedly for having bought the stolen merchandise. B refused. Can Rex

Bookstore compel B to deliver the SCRA to REX Bookstore? DECIDE using as your arguments the

principles of possession.

A contract of sale is perfected once agreement is reached between the parties on the subject matter and

the consideration. Moreover, in a contract of sale of movables, delivery or even constructive delivery will

vest ownership to the vendee even though the contract price IS NOT YET PAID unless there is a

stipulation to the effect that ownership shall not pass to the vendee until full payment. Article 559 of the

Civil Code provides that the possession of movable property acquired in good faith is equivalent to a title.

Non-payment only creates a right to demand payment or to rescind the contract, or to criminal

prosecution in the case of bouncing checks. Thus delivery to A transferred to him ownership of the SCRA

and thus he may validly transfer the same to another.

IV. 20%

B bought a parcel of land from A with an evidence Deed of Sale. B planted a few fruit bearing

trees therein but did not construct nipa hut therein. Unknown to B, A again sold the parcel of land to

X, who was persuaded to buy the same because X found out that indeed no one possessed the

property. X established a resort in the property. Upon discovery, B sued X for recovery of possession.

DECIDE.

Possession is acquired by the material occupation of a thing or the exercise of a right, or by the fact

that it is subject to the action of our will ,or by the proper acts and legal formalities for acquiring such

right." And that the execution of a sale thru a public instrument shall be equivalent to the delivery of the

thing, unless there is stipulation to the contrary. It is clear that possession passed from A to B by virtue of

the Deed of Sale. The latter sale to X suffers from infirmity because of the possession of B.

(Possession as a fact cannot be recognized at the same time in two different personalities except in the cases ofco-possession. Should a question arise regarding the fact of possession, the present possessor shall be

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preferred; if there are two possessions, the one longer in possession, if the dates of possession are the same, the

one who presents a title; and if these conditions are equal, the thing shall be placed in judicial deposit pending

determination of its possession or ownership through proper proceedings.)

V. 25%

A. Give at least 5 characteristics of Co-ownership: 5%

1 . M o r e t h a n 1 s u b j e c t o r o w n e r

2. 1 physical whole divided into ideal (undivided) shares

3 . E a c h i d e a l s h a r e i s d e f i n i t e i n a m o u n t b u t i s n o t

p h y s i c a l l y segregated from the rest

4.Each co-owner holds almost absolute control over ideal share.

5 . E a c h c o - o w n e r m u s t r e s p e c t e a c h o t h e r i n

t h e c o m m o n u s e , enjoyment, or preservation of the physical whole.

6.Not a juridical person, no juridical personality.7 . C o - o w n e r a t r u s t e e f o r t h e o t h e r c o - o w n e r s . T h u s , h e m a y n o t

o r d i n a r i l y a c q u i r e e x c l u s i v e o w n e r s h i p o f t h e p r o p e r t y

h e l d i n common thru prescription.

B. Give the requirements for consent in co-ownership in case of: 5%

a) Acts of Preservation ------Even 1 co-owner

b) Acts of Administration ----------Financial majority

c) Acts of Alteration -------------- All the co-owners

C. Give at least 3 effects of partition: 5%

1. mutual accounting for benefits received

2. mutual reimbursement for expenses

3. indemnity for damages in case of negligence or fraud

4. reciprocal warranty for defects of title (or eviction); or quality (or

hidden defects)

5. each former co-owner is deemed to have had exclusive

possession of the part allotted to him for the entire period w/c the

co-possession lasted

6. partition confers upon each, the exclusive title over his

respective share

D. Give at least 5 grounds for Extinguishment of Co-ownership 5%

1. judicial participation

2. extrajudicial participation

3. when by prescription, one co-owner has acquired the whole

property by adverse possession as against all the others, and

repudiating unequivocally the co-ownership of the other

4. when a stranger acquires by prescription the thing owned in

common

5. merger in co-owner6. loss or destruction

7. expropriation

E. Give at least 5 presumptions in favor of possession : 5%

1)GOOD FAITHGood faith is always presumed. (Art. 527).

(2) OF CONTINUITY OF INITIAL GOOD FAITH(Art. 528)

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(3)CONTINUITY OF CHARACTER OF POSSESSION (whether in good faith or bad

faith It is presumed thatpossession continues to be enjoyed in the same character in

which it was acquired, until the contrary is proved. (Art. 529).

(4)NON-INTERRUPTION OF POSSESSIONThe possession of hereditary property

is deemed transmitted to the heirwithoutinterruption, and from the moment of the deathof the decedent, in case the inheritance is accepted. One who validly renounces an

inheritance is deemed neverto have possessed the same. (Art. 533).

(5)PRESUMPTION OF JUST TITLEA possessor in the concept of owner has in his

favor the legal presumption that he possesses withjust title, and he cannot be obligedto

show or prove it. (Art. 541).

(6) NON-INTERRUPTION OF POSSESSION OF PROPERTY UNJUSTLY LOST BUT

LEGAL LY RECOVEREDOne who recovers, according to law, possession unjustly

lost, shall be deemedfor all purposes which may redound to his benefit, to have enjoyed

it without interruption.(Art. 561).

(7) POSSESSION DURING INTERVENING PERIODIt is presumed, that the present

possessor who was also the possessor at previous time, has continued to be in

possession during the intervening time, unless there is proof to the contrary. (Art.

1138[2])

.

(8) POSSESSION OF MOVABL ES WITH REAL PROPERTYThe possession of real

property presumes that of themovables therein, so long as it is not shown or proved that

they should be excluded. (Art. 542).

(9) EXCLUSIVE POSSESSION OF COMMON PROPERTY Each one of the

participants of a thing possessed incommon shall be deemed to have exclusively

possessedthepartwhich may be allottedto him upon the division

thereof, for the entire periodduring which the co-possession lasted. (Art. 543).