Chapter 1. General Provisions. (Title V, Book III, Civil Code)
Chapter 1: General Provisions
Article 1106. By prescription, one acquires ownership and other real rights through the lapse of time in the manner and under the conditions laid down by law.
In the same way, rights and conditions are lost by prescription. (1930a)
Notes:
1) Definitions.
a. Prescription – in the context of ownership under Property Law, refers to the acquisition or loss of a right by the lapse of time. (Civil Code, Article 1106)
b. Acquisitive prescription – refers to “the acquisition of a right by the lapse of time.” (Civil Code, Paragraph 1, Article 1106; De Morales v. CFI of Misamis Occidental, G.R. No. L-52278, May 29, 1980). It is also referred to as “adverse possession” and “usucapcion”.
c. Extinctive prescription – refer to the loss of rights and actions by the lapse of time (Ibid., Paragraph 2, Article 1106; Pangasinan v. Disongloalmazora, G.R. No. 200558, July 1, 2015). It is also known as “litigation of action”.
2) Mode of acquiring property. Prescription is a mode of acquiring property. Simplified, a person may acquire title to or ownership rights over a property by virtue of prescription.
3) The 2 kinds of prescription. For purposes of acquiring ownership, there are two kinds of prescription under the Civil Code:
(a) Acquisitive prescription; and
(b) Extinctive prescription.
a. Same; Acquisitive prescription v. Extinctive prescription. “Prescription was a statute of limitations. Whereas usucaption expressly ‘vests the property’ and raised a new title in the occupant, prescription did nothing more than bar the right of action. The concept most fundamental to a system of title by possession is that the relationship between the occupant and he land in terms of possession is capable of producing legal consequences. In other words, it is the possessor who is the actor. Under a statute of stations, however, one does not look to the act of the possessor but to the neglect of the owner. In the former the important feature is the claimant in possession, and in the latter it is the owner out of possession which controls.” (De Morales v. CFI of Misamis Occidental, citing Montgomery, Prescriptive Acquisition of land Titles, XXVI, Philippine Law Journal, 353, 356-357 [195])
3) Acquisitive prescription. (For more discussions, see: PD 1529.)
4) Extinctive prescription.
a. Same; Applicable period. “To determine the applicable period of extinctive prescription, the nature and circumstances of the case should be considered.” (Pangasinan v. Disongloalmazora, G.R. No. 200558, July 1, 2015)
Article 1107. Persons who are capable of acquiring property or rights by the other legal modes may acquire the same by means of prescription.
Minors and other incapacitated persons may acquire property or rights by prescription, either personally or through their parents, guardians or legal representatives. (1931a)
Notes:
1) Modes of acquiring property or rights. The following are the modes of acquiring property or rights thereto:
(a) By law – e.g., land/homestead grants, comprehensive agrarian reform, etc.
(b) Occupation – e.g., acquisitive or extinctive prescription;
(c) Intellectual property creation – e.g., copyright, trademark, patent, utility model, etc.;
(d) Donation – e.g., gratuitous transfer;
(e) Testate and intestate succession – e.g., inheritance, devise, legacy;
(f) Tradition – e.g., as a consequence of contracts: sale, barter, etc.;
a. Same; Prescription as another mode. As observed in the above list, prescription is another mode of acquiring property. However, it should be noted that the person intending to acquire property or rights by prescription should also be allowed to do so via other modes. Meaning, both the capacity to acquire and there being no restrictions should apply. This is important considering the status of minors, incapacitated persons, and foreigners with respect to real properties.
2) Minors, incapacitated persons. While minors and incapacitated persons have restrictions on their legal capacity, they may nonetheless be able to acquire property or rights by prescription.
a. Same; 2 ways to acquire property or rights by prescription. Minors and incapacitated persons may acquire property or rights by prescription via:
(a) Personally – as they have juridical capacity or the fitness to be the subject of legal relations, which means they can be the recipient of a property, such as an inheritance;
(b) Through their parents, guardians, or legal representatives – those exercising parental authority, who are guardians or representing the minors or incapacitated persons may act for and on their behalf while they are still subject to restrictions or until it is removed (as in the minors reaching emancipation or legal age).
Article 1108. Prescription, both acquisitive and extinctive, runs against:
(1) Minors and other incapacitated persons who have parents, guardians or other legal representatives;
(2) Absentees who have administrators, either appointed by them before their disappearance, or appointed by the courts;
(3) Persons living abroad, who have managers or administrators;
(4) Juridical persons, except the State and its subdivisions.
Persons who are disqualified from administering their property have a right to claim damages from their legal representatives whose negligence has been the cause of prescription. (1932a)
Notes:
1) Coverage of acquisitive and extinctive prescription. The article enumerates those who are covered by both acquisitive and extinctive prescription. It should be emphasized that the list is exclusive, meaning those not in the list are excluded.
2) Legal representatives. Legal representatives are those who have been authorized to represent minors, incapacitated persons, absentees, and persons living abroad. These legal representatives are acting in the capacity of an agent and those they are representing are the principals.
b. Same; Negligence binds principals or wards. As agents, the negligence of legal representatives will bind their principals or wards following the Law on Agency. Principals are generally not allowed to recover properties lost via prescription due to the negligence of the agents. Hence, this provision only allows for damages against the agents.
c. Same; Liability. Due to the potential of losing ownership or rights due to negligence, the article provides that the principal may sue for damages their legal representatives who may have been negligent resulting in the prescription.
d. Same; Limited to negligence. The article is limited to negligence as ultra vires and fraudulent acts are not covered. For ultra vires and fraudulent acts, the principals generally may be allowed recovery of the properties via a legal action.
Article 1109. Prescription does not run between husband and wife, even though there be a separation of property agreed upon in the marriage settlements or by judicial decree.
Neither does prescription run between parents and children, during the minority or insanity of the latter, and between guardian and ward during the continuance of the guardianship. (n)
Notes:
1) When prescription does not apply. Prescription does not apply in these cases:
(a) Between husband and wife – even if there is a separation of property in their marriage settlements or by judicial decree;
(b) Between parents and children – during the minority or insanity of the children; and
(c) Between guardian and ward – during the continuance of the guardianship.
2) Public policy. In all of the above instances, public policy dictates that prescription should not apply due to the closeness of the relationship wherein there is usually a lot of trust reposed on each other, such that it would not be expected that either one would invoke prescription against the other so as for one to gain the other’s property, and consequently the other party losing out their ownership or rights thereto.
Article 1110. Prescription, acquisitive and extinctive, runs in favor of, or against a married woman. (n)
Notes:
1) Married woman. Considering that RA 386 or the Civil Code was enacted into law in 1949, this was a progressive law. Married women by themselves, and not via their husbands, may acquire in their favor ownership or rights via acquisitive and extinctive prescription.
Article 1111. Prescription obtained by a co-proprietor or a co-owner shall benefit the others. (1933)
Notes:
1) Definitions.
a. Co-proprietors – refer to those who jointly own a business or venture.
b. Co-owners – refer to those who jointly own a property, such as personal or immovable properties, and may include a business or venture. (By definition, co-owners include co-proprietors.)
2) Rule on acts of co-owners benefiting the co-ownership.
a. Acts benefiting the ownership. The act of a co-proprietor/co-owner that benefits the business/co-ownership redounds to the benefit of all co-proprietors/co-owners. However, the opposite is not true, i.e. the acts of a co-proprietor/co-owner that prejudices the business/co-ownership will not necessarily affect all of the co-proprietors/co-owners.
Article 1112. Persons with capacity to alienate property may renounce prescription already obtained, but not the right to prescribe in the future.
Prescription is deemed to have been tacitly renounced when the renunciation results from acts which imply the abandonment of the right acquired. (1935)
Notes:
1) Definition.
a. Renounce – refers to waiver or non-acceptance.
b. Express renunciation – refers to clear and categorical exercise of the right to renounce or waive, such as by signing a renunciation or waiver form.
c. Implied renunciation – refers to actions and conduct that would imply renunciation or waiver, such as abandonment of an acquired right. (Civil Code, Paragraph 2, Article 1112)
2) Rules on renunciation of prescription.
a. Limited to persons with capacity to alienate property. The article is limited to persons with capacity to alienate property. Thus, this provision does not apply to those who cannot alienate property, e.g., minors, incapacitated persons, etc.
b. Past prescription. Properties acquired by prescription already obtained may be renounced or waived since it is a right granted to the person already. Generally, persons may waive their rights. Thus, the subject here is the person – i.e., point of view is from the person.
c. Future prescription. Future prescription, whether acquisitive or prescriptive, it cannot be renounced because it is by operation of law. Thus, the subject here is the law – i.e., point of view is from the law.
3) The two types of renunciation. There are two (2) types of renunciation:
(a) Express renunciation – see definition above.
(b) Tacit renunciation – see definition above.
Article 1113. All things which are within the commerce of men are susceptible of prescription, unless otherwise provided. Property of the State or any of its subdivisions not patrimonial in character shall not be the object of prescription. (1936a)
Notes:
1) Definitions.
a. Within the commerce of men – refers to good or services that may be traded.
2) Rules on prescription involving things within the commerce of men.
a. General rule: Prescription applies to all things within the commerce of men.
b. Exception: … unless otherwise provided – e.g., Property of the State or any of it subdivisions which are not patrimonial in character, such as natural resources, forests, parks, etc.
Article 1114. Creditors and all other persons interested in making the prescription effective may avail themselves thereof notwithstanding the express or tacit renunciation by the debtor or proprietor. (1937)
Notes:
1) Rule on creditors and interested persons availing of prescription.
a. Creditors and those who have interests. Creditors and those who have interests may avail prescription – notwithstanding the express or tacit renunciation of the debtor or proprietor.
b. Same; Context: Debtor benefits from prescription but renounces it. It is possible for a debtor to benefit from prescription, i.e., acquiring ownership or rights over property, however, renounces it expressly or impliedly. For example, a debtor may acquire ownership or rights over property but for some reason renounces it. In such a case, a creditor or any person who has interest thereon may avail of the prescription even if the debtor does not want it (as evidenced by her renunciation).
c. Same; Same; Creditor. To secure payment of the debt owing, the creditor may choose to avail of the benefit of prescription which has been renounced by the debtor. In our earlier example, the creditor may instead be the one to accept the property that would have been acquired by the debtor. The acquisition by the creditor of the property may operate as partial or full satisfaction of the debt.
d. Same; Same; Other persons interested. The phrase “other persons interested” is broad enough to cover anyone who may have some form of interest over any property acquired by a person via prescription. This may include compulsory heirs (who may claim it as their legitime), investors (who may have claims under investment contracts), or plaintiffs (who may claim it as payment for the judgment or award).
Article 1115. The provisions of the present Title are understood to be without prejudice to what in this Code or in special laws is established with respect to specific cases of prescription. (1938)
Article 1116. Prescription already running before the effectivity of this Code shall be governed by laws previously in force; but if since the time this Code took effect the entire period herein required for prescription should elapse, the present Code shall be applicable, even though by the former laws a longer period might be required. (1939)
Notes:
1) General rules of prescription in Title V; Specific cases of prescription. Title V on Prescription sets forth the general rules on prescription. For specific cases of prescription, they shall be governed by specific provisions in the Civil Code or in special laws (e.g. PD 1529 – Property Decree, etc.).
2) Rules on prescription prior to Civil Code.
a. Ended before effectivity of the Civil Code. Prescription that ended before the effectivity of the Civil Code will be governed by the old law, i.e., the one prior to the Civil Code.
b. Continued to run after the effectivity of the Civil Code. Prescription that continues after the effectivity of the Civil Code will be regulated by the Civil Code. This benefits the person if the older law has longer prescriptive period and the Civil Code has shorter prescriptive period. For example, if an old law required 30 years for acquisitive prescription and a person has already 5 years into it prior to the Civil Code which now requires 15 years, the person would only need to complete 10 years under the Civil Code, instead of the older law which would require 25 years more.
