Mr. E leased a piece of land from Mr. F to be used for his sawmill business for a period of ten (10) years. Consequently, Mr. E placed heavy machineries thereon to be used for his aforementioned business, with the intention of removing them after the expiration of the lease period.
Are Mr. E’s heavy machineries considered real properties under the Civil Code? Explain. (3%)
Under the Civil Code, machinery intended by the owner of the tenement for an industry or works which may be carried on a piece of land, and which tend directly to meet the needs of the said industry or works, is considered an immovable or a real property. Rule
In the case at bar, the heavy machineries are owned and placed on the land by a lessee, and not the owner of the tenement. Apply
Thus, Mr. E’s heavy machineries cannot be considered as real properties under the Civil Code. Conclusion