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This article was originally published on June 1, 2022 and has been updated to reflect recent legal developments.
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
A possessor may lose his possession by the abandonment of the thing; by an assignment made to another either by onerous or gratuitous title; by the destruction or total loss of the thing, or because it goes out of commerce; or by the possession of another, subject to the provisions of Article 537, if the new possession has lasted longer than one year. But the real right of possession is not lost till after the lapse of ten years.
Understanding when a possessor may lose possession is crucial, as it determines the ability to recover property, enforce rights, or claim protection under the Civil Code of the Philippines. Possession, whether of movable or immovable property, is generally protected by law, but it is not absolute. There are various ways in which possession may be lost or deemed transferred.
Grounds for Losing Possession
Under Article 555 of the Civil Code of the Philippines, a possessor may lose his possession:
- By the abandonment of the thing;
- By an assignment made to another either by onerous or gratuitous title;
- By the destruction or total loss of the thing, or because it goes out of commerce;
- By the possession of another, subject to the provisions of Article 537, if the new possession has lasted longer than one year. But the real right of possession is not lost till after the lapse of ten years.
Movable Properties
For movable properties, the rules are slightly different. Article 556 provides that possession of movables is not deemed lost so long as they remain under the control of the possessor, even though for the time being he may not know their whereabouts.
Article 559 further states that possession of movable property acquired in good faith is equivalent to a title. Nevertheless, one who has lost any movable or has been unlawfully deprived thereof, may recover it from the person in possession of the same.
If the possessor of a movable lost or which the owner has been unlawfully deprived, has acquired it in good faith at a public sale, the owner cannot obtain its return without reimbursing the price paid therefor.
To illustrate, Shaun owns a car, a movable property, which was unlawfully taken from his house while he was out of town. Although Shaun has no idea where the car is, he is still deemed in possession of it. His temporary lack of knowledge does not amount to a loss of possession. Shaun has neither abandoned the car nor transferred his rights over it. Consequently, Shaun retains ownership and may recover the car from any person who possesses it. However, possession may be lost depending on subsequent acts or circumstances, for example, if he abandons his right to recover it, if the car is totally destroyed, or if he later sells or donates it.
Immovable Properties
For immovable or real property, possession of immovables and of real rights is not deemed lost, or transferred for purposes of prescription to the prejudice of third persons, except in accordance with the provisions of the Mortgage Law and the Land Registration laws. (Article 557)
Additionally, Article 561 states that a person who recovers, according to law, possession unjustly lost, shall be deemed for all purposes which may redound to his benefit, to have enjoyed it without interruption
Applying these principles, Shaun may lose possession of his car if he abandons his right to recover the same such that he lost interest in taking any action to locate and retrieve his car. If Shaun pursued but eventually learned that the car was totally destroyed and is no longer of use or can no longer be recovered, he lost possession of the same. On the other hand, if Shaun was able to retrieve the car but eventually sold or donated the same in favor of another, he completely lost possession of his car.
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.
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