ABOUT THE JMC

Overview

The existence of idle lands and the failure of local government units (LGUs) to update their schedule of market values (SMVs) for property assessments are two of the major impediments toward maximizing the socio-economic benefits that can be gained from the country´s land and real property sector.

LGUs´ outdated real property values (caused by LGUs´ failure to regularly revise their SMVs) no longer capture the true economic realities in the community where the property is situated, which has significant backlash on local revenue generation, which means the foregone revenues that could have been collected from real property taxes. On the other hand, keeping lands unproductive and unimproved for unreasonable period of time breeds inefficient allocation of lands to their best use, encourages land speculation and concentration of land ownership, and undermines the generation of significant revenues from land ownership.

Despite the provisions of the law, specifically Republic Act 7160 or The Local Government Code of 1991, data shows that LGU compliance in SMV revision has been rapidly declining from 83 percent in 1993 to 25 percent in 2006 (i.e., average compliance rate of both provinces and cities). Meanwhile, out of the country´s 80 provinces and 121 cities, only five provinces and nine cities are imposing idle land tax.

As such, the Department of Finance and the Department of Interior and Local Government (DOF-DILG) issued Joint Memorandum Circular 2010-01 and Joint Memorandum Circular 2010-02 which enjoin LGUs to comply with the provisions of the LGC regarding the regular revision of SMVs for property assessments and also impose a special levy on idle lands.

The two Joint Memorandum Circulars were signed by DOF Sec. Cesar V. Purisima and DILG Sec. Jesse M. Robredo on October 18, 2010.

PREPARATION OF SCHEDULE OF MARKET VALUES AND CONDUCT OF GENERAL REVISION OF PROPERTY ASSESSMENTS FOR REAL TAX PURPOSES

JMC 2010-01 enjoins LGUs to implement Section 219 (General Revision of Assessment and Property Classification) of the R.A. 7160 regarding the revision of property assessments and classifications. The JMC also prescribes the use of the Philippine Valuation Standards (DOF

Dept. Order No. 37-09) and Mass Appraisal Guidebook (DOF Dept. Order No. 2010-10) in conducting the general revision of property assessments and classifications.

ROLES AND RESPONSIBILITIES

Governors and Mayors

Governors and Mayors are directed to require their respective assessors to prepare an updated SMV and to draft the corresponding ordinance for the Sanggunian´s approval.

The Local Assessors (Provincial/City and Municipal)

Prior to preparing an updated SMV, local assessors must require all property owners to submit their Sworn Statements which declares the true value of their property/ies. Thereafter, the local assessor will gather and analyze the collected data, calculate base unit values, then prepare the preliminary SMV that will be the basis of the General Revision of Real Property Assessments. In the case of the provincial assessor, the preliminary SMV will be prepared in coordination with the municipal assessors.

The local assessor will then submit the same preliminary SMV to the Sanggunian for the Sanggunian´s approval (through an Ordinance). After the Sanggunian approves the prepared updated SMV, the local assessor will conduct the General Revision of Property Assessments for real tax purposes.

The Sanggunian

All presiding officers/members of the Sanggunian are tasked to appropriate funds to enable the local assessor to conduct the General Revision of Real Property Assessments every three years. Likewise, the Sanggunian is mandated to calendar, deliberate on and pass the ordinance incorporating the proposed updated SMV prepared by the local assessor.

The DOF-BLGF and the DILG

The DOF-BLGF (Central and Regional Offices) is tasked to supervise the implementation of the JMC, provide technical assistance in the preparation of SMVs, and initiate activities at the local level to fast track the LGU´s updating of SMVs.

On the other hand, the DILG Regional Directors will coordinate with the LGUs, through the respective field officers assigned at the various levels of LGUs, in apprising the local officials with regard to preparing the updated SMV.

IMPOSITION OF ADDITIONAL AD VALOREM TAX ON IDLE LANDS

JMC 2010-02, on the other hand, enjoins LGUs to implement the provisions of Section 236(Additional Ad Valorem Tax on Idle Lands) of the LGC and impose special levy on real properties, especially idle land taxes.

Coverage

Section 237 (Idle Lands, Coverage)of the LGC defines idle lands as follows:

o Agricultural lands that are more than one (1) hectare, suitable for cultivation, dairying, inland fishery and other agricultural uses, one half of which remains uncultivated or unimproved,

o Non-agricultural lands in a city or municipality with area more than 1,000 square meters, one half of which is unutilized or unimproved, and

o Residential lots in subdivisions, regardless of land area, one half of which is unutilized and unimproved.

Proceeds of the Tax on Idle Lands

Proceeds from the collection of idle land tax directly goes to the respective general funds of the province/city. In the case of a municipality within Metro Manila, the proceeds accrue equally to the Metropolitan Manila Authority and the municipality where the land is situated.

Exemption from Idle Land Tax

Owners of idle lands will be exempted from imposition of the additional levy under circumstances of force majeure, civil disturbance, natural calamity, or any circumstance which physically or legally prevent the property owners from improving, utilizing or cultivating the idle land.

Enactment of the Enabling Ordinance or Revenue Measure

The local Sanggunian must first approve the implementation of the additional revenue measure through an ordinance, in accordance to the provisions of the LGC, specifically:

o Sec. 187 provides the procedure in approving and effecting the local tax ordinance and revenue measures through mandatory public hearings.

o Sec. 188 prescribes that ten (10) days after the local tax ordinance and revenue measure has been approved, the certified true copies of the same tax ordinance and revenue measure must be published in a newspaper of local circulation for three (3) consecutive days.

o Sec. 189 mandates that the same copy of tax ordinance and revenue measure must be furnished to the local treasurer, who will disseminate the circular to the public.

Duties and Responsibilitieso DOF-BLGF

The DOF-BLGF is tasked to receive and validate the LGUs´ reports on the proceeds due to the imposition of additional ad valorem tax on idle lands, and provide the necessary technical assistance to LGUs.

o DILG

The DILG is tasked to disseminate the Circular to all LGUs and accordingly monitor LGUs´ compliance with the Circular.

Philippine Fundamentals of Property Owning

 

Right to ownership

Acquisition by Former Natural-Born Filipino Citizen

Dual Citizenship

Foreign Ownership as a Philippine Corporation

Foreign Leasing of Philippines Real Estate Property

RESA Act

Boracay Supreme Court Article

New real estate law to benefit practitioners

The rights of a foreigner who acquired land vs. Filipina girlfriend in whose name the TCT was placed under

 

RIGHT TO OWNERSHIP

 

A. General Rule - Only Filipino Citizens and corporations or partnerships at least 60% of the capital of which is owned by Filipinos are entitled to acquire land in the Philippines.

 

B. As exception to the general rule, alien acquisition of real estate in the Philippines is allowed in the following cases:

1.Acquisition before the 1935 Constitution;

2.Acquisition thru hereditary succession. If foreign acquirer is a legal heir;

 

This simply means that when the non-Filipino is married to a Filipino citizen and the spouse dies, the non-Filipino as the natural heir will become the legal owner of the property. The same is true for the children. Every natural child (legitimate or illegitimate) can inherit the property of his/her Filipino father/mother even if he/she does not have any Filipino citizenship.

3.Purchase of not more than 40% interest in a condominium project;

4.Purchase by a frmer natural-born Filipino citizen subject to the limitations prescribed by Law (Batas Pambamsa 185 and R.A. 8179)

 

C. A Filipino who married an alien retains her Philippine citizenship (unless by her act or omission, she is deed to have renounced her Philippine citizenship) and may therefore acquire real estate in the Philippines.

 

ACQUISITION BY FORMER NATURAL BORN FILIPINO CITIZEN

 

A. Mode of acquiring is not limited to voluntary deeds (such as sale or donation) but includes involuntary deeds (such as tax sale, foreclosure sale, or execution sale).

 

B. Maximum area that may be allowed is as follows:

1.For residential purpose - 1,000 square meters of urban land or one (1) hectare of rural land (BP 185)

2.For business or other purpose - 5,000 square meters of urban land or three (3) hectares of rural land.

 

"Business or other purpose" refers to the use of the land primarily, directly and actually in the conduct of business or commercial activities in the broad areas of agriculture, industry and services, including the lease of land, but excluding the buying or selling thereof."

 

C. In case of married couple, one or both of them may avail of the privilege, provided that the total acquisition shall not exceed the maximum area allowed.

 

D. A transferee of residential land under BP 185 may still avail of the privilege granted under RA 8179.

 

E. A transferee who already owns urban or rural land for residential purpose, may acquire additional urban or rural land for residential purpose which, when added to that already owned by him shall not exceed the maximum area allowed by law. The same privilege applies to a transferee who already owns urban or rural land for business purposes.

Foreign Leasing of Philippine Real Estate Property

A foreign national and or corporation may enter into a lease agreement with Filipino landowners for an initial period of up to 50 years, and renewable for another 25 years.

 

F. A transferee may not acquire more than two urban or two rural lands which should be located in different cities or municipalities.

 

G. A transferee who has already acquired urban land for residential purpose shall be disqualified to acquire rural land for residential purpose and vice versa The same rule applies to a transferee of land for business purpose.

 

Dual Citizenship

 

•Dual citizenship means having two citizenships and passports from two different countries. Dual citizenship allows the citizenship holder full rights of possession of Philippines real property. This is a new law and it is still unclear as to the procedures involved to implement it. Dual citizenship is now available for the following:

•Former Filipino citizen born in the Philippines, who have immigrated to another country and obtained citizenship of that country.

Note: For former natural born Filipino Citizen, please visit the Philippine Embassy in your country for more information or to apply for Dual citizenship.

 

Foreign Ownership as a Philippine Corporation

 

•Foreign nationals or corporations may completely own a condominium or townhouse. To take ownership of a private land, residential house and lot, and commercial building and lot, foreign nationals or corporations should form a Philippine corporation. The corporation is to be 40% foreign-owned (maximum) and 60% Filipino-owned (minimum), and with at least five (5) incorporators. Upon incorporation, a main bank account should be tied to it. A foreign national

may be the sole person in the bank account, allowing him/her total control over the funds derived from the corporation and the income or sale of the asset or property.

Foreign Leasing of Philippine Real Estate Property

 

•A foreign national and or corporation may enter into a lease agreement with Filipino landowners for an initial period of up to 25 years, and renewable for another 25 years.

RESA Act

 

President Arroyo signed Real Estate Service Act of the Philippines(RESA) into law last June 29. The law (Republic Act 9646), which is designed to develop the real estate industry through proper and effective regulation and supervision, took effect on July 30, 2009

 

SECTION 1. Title. - This Act shall be known as the. "Real Estate Service Act of the Philippines".

SECTION 2. Declaration of Policy. - The State recognizes the vital role of real estate service practitioners in the social political, economic development and progress of the country by promoting the real estate market, stimulating economic activity and enhancing government income from real property-based transactions. Hence, it shall develop and nurture through proper and effective regulation and supervision a corps of technically competent, responsible and respected professional real estate service practitioners whose standards of practice and service shall be globally competitive and will promote the growth of the real estate industry.

 

ARTICLE V

PENAL AND FINAL PROVISIONS

SEC. 39. Penal Provisions, - Any violation of this Act, including violations of implementing rules and regulations, shall be meted the penalty of a fine of not less than One hundred thousand pesos (P100,000.00) or imprisonment of not less than two (2) years, or both such fine and imprisonment upon the discretion of the court. In case the violation is committed by an unlicensed real estate service practitioner, the penalty shall be double the aforesaid fine and imprisonment. In case the violation is committed, by a partnership, corporation, association or any other juridical person, the partner, president, director or manager who has committed or consented to or knowingly tolerated such violation shall be held directly liable and responsible for the acts as principal or as a co-principal with the other participants, if any.

SEC. 20. Registration Without Examination, - Upon application and payment of the required fees, the following shall be registered, and shall be issued by the Board and the Commission a certificate of registration and a professional identification card without taking the prescribed examination:

(a) Those who, on the date of the effectivity of this Act, are already licensed as real estate brokers, real estate appraisers or real estate consultants by the Department of Trade and Industry (DTI) by virtue of Ministry Order No. 39, as amended: Provided, That they are in active practice as real estate brokers, real estate appraisers and real estate consultants, and have undertaken relevant CPE to the satisfaction of the Board;

 

PRACTICE OF REAL ESTATE SERVICE

SEC. 25. Oath. - All successful examinees qualified for registration and all qualified applicants for registration without examination as well as accredited salespersons shall be required to take an oath before any member of the Board or any officer of the Commission duly authorized by the Commission to administer oaths prior to entering into the practice of real estate service in the Philippines.

SEC. 26. Professional Indemnity Insurance/Cash or Surety Bond. - All real estate brokers and private real estate appraisers shall, in addition to the oath referred to in the preceding section, be required to post a professional indemnity insurance/cash or surety bond, renewable every three (3) years, in an amount to be determined bjr the Board, which in no case shall be less than Twenty thousand pesos (P20,000.00), without prejudice to the additional requirement of the client.

SEC. 27. Acts Constituting the Practice of Real Estate Service. - Any single act or transaction embraced within the provisions of Section 3(g) hereof, as performed by real estate service practitioners, shall constitute an act of engaging in the practice of real estate service.

SEC. 28. Exemptions from the Acts Constituting the Practice of Real Estate Service. - The provisions of this Act and its rules and regulations shall not apply to the following":

(a) Any person, natural or juridical, who shall directly perform by himself/herself the acts mentioned in Section 3 hereof with reference to his/her or its own property, except real estate developers;

(b) Any receiver, trustee or assignee in bankruptcy or insolvency proceedings;

(c) Any person acting pursuant to the order of any court of justice;

(d) Any person who is a duly constituted attorney-in-fact for purposes of sale, mortgage, lease or exchange, or other similar contracts of real estate, without requiring any form of compensation or remuneration; and

(e) Public officers in the performance of their official duties and functions, except government assessors and appraisers.

SEC. 29. Prohibition Against the Unauthorized Practice of Real Estate Service. - No person shall practice or offer to practice real estate service in the Philippines or offer himself/herself as real estate service practitioner, or use the title, word, letter, figure or any sign tending to convey the impression that one is a real estate service practitioner, or advertise or indicate in any manner whatsoever that one is qualified to practice the profession, or be appointed as real property appraiser or assessor in any national government entity or local government unit, unless he/she has satisfactorily passed the licensure examination given by the Board, except as otherwise provided in this Act, a holder of a valid certificate of registration, and professional identification card or a valid special/temporary permit duly issued to him/her by the Board and the Commission, and in the case of real estate brokers and private appraisers, they have paid the

required bond as hereto provided.

 

Boracay Supreme Court Article

 

The Supreme Court (SC) declared yesterday that the island resort of Boracay belongs to the state and the current residents cannot claim ownership of parcels of land based on years of occupation.

 

However, the SC said Congress may enact a law to entitle private claimants to acquire title to the lots they occupy or to exempt them from certain legal requirements. “This Court is constitutionally bound to decide cases based on the evidence presented and the laws applicable,” read the decision.

 

“As the law and jurisprudence stand, private claimants are ineligible to apply for a judicial confirmation of title over their occupied portions in Boracay even with their continued possession and considerable investment in the land.”

 

The SC said private claimants cannot apply for judicial confirmation of imperfect title under Commonwealth Act 141, the Public Land Act and neither do they have vested rights over the lands they occupy.

 

“The continued possession and considerable investment of private claimants do not automatically give them a vested right in Boracay,” read the decision.

 

“Nor do these give them a right to apply for a title to the land they are presently occupying.”

 

The SC said under CA No. 141, the two requisites for judicial confirmation of imperfect or incomplete title are:

 

 

•Open, continuous, exclusive, and notorious possession and occupation of the subject land by himself or through his predecessors-in-interest under a bona fide claim of ownership since time immemorial; and

•Classification of the land as alienable and disposable land of the public domain.

“The private claimants bid for judicial confirmation of imperfect title must fail because of the absence of the second element of alienable and disposable land,” read the decision.

 

“Private claimants failed to prove the first element of open, continuous, exclusive, and notorious possession of their lands in Boracay since June 12, 1945.”

 

However, the SC said it does not mean private claimants can be evicted from the residential, commercial and other areas they now occupy.

 

“Neither will this mean the loss of their substantial investments on their occupied alienable lands,” read the decision. “Lack of title does not necessarily mean lack of right to possess.”

 

The SC said those with lawful possessions may claim good faith as builders of improvements.

 

“They can take steps to preserve or protect their possession,] read the decision.

 

“They may look into other modes of applying for original registration of title, such as by homestead or sales patent, subject to the conditions imposed by law. ”

 

The SC reversed and set aside the decision of the Court of Appeals affirming the ruling of Kalibo, Aklan Regional Trial Court granting the petition for declaratory relief filed by Mayor Jose Yap, Libertad Talapian, Mila Sumndad, and Aniceto Yap, for the survey of Boracay for titling purposes.

 

New real estate law to benefit practitioners

 

The new Real Estate Service Act of the Philippines, Republic Act No. 9646 (RESA), is expected to further strengthen the expertise of 30,000 practitioners in the country, develop a corps of competent consultants, appraisers, brokers and assessors, both private and public, and maximize the potentials of the industry.

 

This was the pronouncement of Dr. Eduardo G. Ong, Chairman of the Professional Regulatory Board of Real Estate Service (PRB-RES) of the Professional Regulation Commission (PRC), during the recently-held Chamber of Real Estate and Builders Association (CREBA) General Membership Meeting.

 

Also during the meeting, CREBA national president Jun Dulalia led the launch of its first International Convention to be held in Macau on October 26 & 27, 2010 and signed two memorandum of agreements with Pag-Ibig on Social Housing Program and with MMDA on a Cable Television Tie-up regarding real estate.

 

RESA created the PRB-RES, composed of a chairperson and four members appointed by the President of the Philippines, under the administration of the PRC, to supervise and regulate the registration, licensure and practice of real estate service in the country.

 

Hence, the board will conduct the licensure examinations for practitioners and issue, suspend, revoke or reinstate certificates of registration or professional identification cards. It will likewise maintain a registry of licensed professionals, monitor their practices and adopt a national Code of Ethics and Responsibilities for the sector.

 

Except for real estate sales people, Filipinos who want to be registered and licensed as real estate service practitioners must take an examination to be given at least once a year.

 

In addition, all real estate brokers and private real estate appraisers shall be required to post a professional indemnity insurance, cash or surety bond, renewable every three years, for at least P20,000.00.

 

The board, in cooperation with the Commission on Higher Education (CHED) and concerned state universities and colleges, will prescribe the curricula for academic courses in real estate service.

 

The Bachelor of Science in Real Estate will be offered starting school year 2011-2012.

 

Violators of the law will be slapped with a P100,000 fine or two years imprisonment, or both, according to Dr. Ong.

 

"The RESA will provide opportunities for real estate practitioners to be called professionals and practice in other countries," he said adding, "The law is not as perfect as it should be."

 

At present, the PRB-RES is conducting consultations and public hearings about the Implementing Rules and Regulations (IRR) of the new law. A public hearing is scheduled in Manila next month, June 22, 2010. (BCM)

 

What are the rights of a foreigner who acquired land vs. Filipina girlfriend in whose name the TCT was placed under

 

This is the issue discussed by the Supreme Court in the case of Borromeo vs. Descallar, G.R. No. 159310, February 24, 2009.

 

The facts as stated in the decision are:

 

Jambrich, an Austrian arrived in the Philippines in 1983 being assigned in the country and was transferred to Cebu and met and fell in love with a separated Filipina [ herein referred to as respondent ], with two kids and who had no means of livelihood. Thereafter they bought their house and lots but the Register of Deeds refused registration of the Deed of Absolute Sale on the ground that Jambrich was an alien and could not acquire alienable lands of the public domain and therefore his name was erased and the titles issued in the name of the Filipina.

 

In 1986, Jambrich sold his rights and interests in the said property to a Filipino buyer, Borromeo, [ the petitioner in this case ] to pay for his debt but when Borromeo sought to register the deed of assignment, he discovered that the titles to the lots have been transferred in the name of the Filipina and that the same had been mortgaged.

 

The buyer, Borromeo then filed a complaint for recovery of the properties. The Filipina girlfiriend claimed that she bought it with her own funds and that Jambrich being a foreigner, was not entitled to own land in the Philippines. The Regional Trial Court rendered a decision in favour of the buyer and declared him to be the owner of the properties since the facts show that the Filipina had no means of livelihood or funds to have bought the property.

 

The Filipina appealed and the decision was reversed by the Court of Appeals stating that the foreigner, Jambrich, could not have acquired land being a foreigner.

 

The buyer, Borromeo, appealed by way of petition to the Supreme Court which stated the issues:

1. Who purchased the subject properties?

2. What is the effect of registration of the properties in the name of the Filipina?

 

In upholding the decision of the lower court, the Supreme Court stated:

 

The evidence presented showed that Jambrich had all the authority to transfer all his rights, interests and participation in the subject properties by virtue of the Deed of Assignment to the buyer, Borromeo, as it was shown that the funds to purchase the properties came from Jambrich, who was therefore the true buyer of the property, and,

 

" Further, the fact that the disputed properties were acquired during the couple's cohabitation does not help respondent. The rule that co-ownership applies to a man and a woman living exclusively with each other as husband and wife without the benefit of marriage, but are otherwise capacitated to marry each other does not apply. In the instant case, the respondent was still legally married to another when she and Jambrich lived together. In such adulterous relationship, no co-ownership exists between the parties. It is necessary for each of the partners to prove his or her actual contribution in the acquisition of property in order to be able to lay claim to any portion of it. Presumptions of co-ownership and equal contribution does not apply."

 

As to the registration of the properties in the name of the Filipina, the Supreme Court said,

 

"It is settled that registration is not a mode of acquiring ownership.

 

It is only a means of confirming the fact of its existence with notice to the world at large.

 

Certificates of title are not a source of right. The mere possession of a title does not make one the true owner of the property.

 

This is the situation in the instant case. Respondent did not contribute a single centavo in the acquisition of the properties. She had no income of her own at that time, nor did she have any savings. She and her two sons were then fully supported by Jambrich."

 

As to the capacity of Jambrich, being an alien, to acquire land, the Supreme Court said,

 

' xxxx the transfer of land xxx to Jambrich, who is an Austrian, would have been declared invalid if challenged, had not Jambrich conveyed the properties to petitioner who is a Filipino citizen. xxxxxx

 

The rationale behind the Court's ruling in United Church Board for World Ministries, as reiterated in subsequent cases, is this - since the ban on aliens is intended to preserve the nation's land for future generations of Filipinos, that aim is achieved by making lawful the acquisition of real estate by aliens who became Filipino citizens by naturalization or those transfers made by aliens to Filipino citizens. As the property in dispute is already in the hands of a qualified person, a Filipino citizen, there would be no more public policy to be protected. The objective of the constitutional provision to keep our lands in Filipino hands has been achieved."

 

Note: This document is for information purposes only. The user assumes all risks for its use. www.camiguinislandrealestate.com assumes no responsibility for such use. For more information please contact your Philippine Lawyer.

CHAPTER 3 > PRESCRIPTION OF ACTIONS

Art. 1139. Actions prescribe by the mere lapse of time fixed by law. (1961)

Art. 1140. Actions to recover movables shall prescribe eight years from the time the possession thereof is lost, unless the possessor has acquired the ownership by prescription for a less period, according to Articles 1132, and without prejudice to the provisions of Articles 559, 1505, and 1133. (1962a)

Art. 1141. Real actions over immovables prescribe after thirty years.

This provision is without prejudice to what is established for the acquisition of ownership and other real rights by prescription. (1963)

Art. 1142. A mortgage action prescribes after ten years. (1964a)

Art. 1143. The following rights, among others specified elsewhere in this Code, are not extinguished by prescription:

(1) To demand a right of way, regulated in Article 649;

(2) To bring an action to abate a public or private nuisance. (n)

Art. 1144. The following actions must be brought within ten years from the time the right of action accrues:

(1) Upon a written contract;

(2) Upon an obligation created by law;

(3) Upon a judgment. (n)

Art. 1145. The following actions must be commenced within six years:

(1) Upon an oral contract;

(2) Upon a quasi-contract. (n)

Art. 1146. The following actions must be instituted within four years:

(1) Upon an injury to the rights of the plaintiff;

(2) Upon a quasi-delict;

However, when the action arises from or out of any act, activity, or conduct of any public officer involving the exercise of powers or authority arising from Martial Law including the arrest, detention and/or trial of the plaintiff, the same must be brought within one (1) year. (As amended by PD No. 1755, Dec. 24, 1980.)

Art. 1147. The following actions must be filed within one year:

(1) For forcible entry and detainer;

(2) For defamation. (n)

Art. 1148. The limitations of action mentioned in Articles 1140 to 1142, and 1144 to 1147 are without prejudice to those specified in other parts of this Code, in the Code of Commerce, and in special laws. (n)

Art. 1149. All other actions whose periods are not fixed in this Code or in other laws must be brought within five years from the time the right of action accrues. (n)

Art. 1150. The time for prescription for all kinds of actions, when there is no special provision which ordains otherwise, shall be counted from the day they may be brought. (1969)

Art. 1151. The time for the prescription of actions which have for their object the enforcement of obligations to pay principal with interest or annuity runs from the last payment of the annuity or of the interest. (1970a)

Art. 1152. The period for prescription of actions to demand the fulfillment of obligation declared by a judgment commences from the time the judgment became final. (1971)

Art. 1153. The period for prescription of actions to demand accounting runs from the day the persons who should render the same cease in their functions.

The period for the action arising from the result of the accounting runs from the date when said result was recognized by agreement of the interested parties. (1972)

Art. 1154. The period during which the obligee was prevented by a fortuitous event from enforcing his right is not reckoned against him. (n)

Art. 1155. The prescription of actions is interrupted when they are filed before the court, when there is a written extrajudicial demand by the creditors, and when there is any written acknowledgment of the debt by the debtor. (1973a)

Title V. – PRESCRIPTION

CHAPTER 2 > PRESCRIPTION OF OWNERSHIP AND OTHER REAL RIGHTS

Art. 1117. Acquisitive prescription of dominion and other real rights may be ordinary or extraordinary.

Ordinary acquisitive prescription requires possession of things in good faith and with just title for the time fixed by law. (1940a)

Art. 1118. Possession has to be in the concept of an owner, public, peaceful and uninterrupted. (1941)

Art. 1119. Acts of possessory character executed in virtue of license or by mere tolerance of the owner shall not be available for the purposes of possession. (1942)

Art. 1120. Possession is interrupted for the purposes of prescription, naturally or civilly. (1943)

Art. 1121. Possession is naturally interrupted when through any cause it should cease for more than one year.

The old possession is not revived if a new possession should be exercised by the same adverse claimant. (1944a)

Art. 1122. If the natural interruption is for only one year or less, the time elapsed shall be counted in favor of the prescription. (n)

Art. 1123. Civil interruption is produced by judicial summons to the possessor. (1945a)

Art. 1124. Judicial summons shall be deemed not to have been issued and shall not give rise to interruption:

(1) If it should be void for lack of legal solemnities;

(2) If the plaintiff should desist from the complaint or should allow the proceedings to lapse;

(3) If the possessor should be absolved from the complaint.

In all these cases, the period of the interruption shall be counted for the prescription. (1946a)

Art. 1125. Any express or tacit recognition which the possessor may make of the owner’s right also interrupts possession. (1948)

Art. 1126. Against a title recorded in the Registry of Property, ordinary prescription of ownership or real rights shall not take place to the prejudice of a third person, except in virtue of another title also recorded; and the time shall begin to run from the recording of the latter.

As to lands registered under the Land Registration Act, the provisions of that special law shall govern. (1949a)

Art. 1127. The good faith of the possessor consists in the reasonable belief that the person from whom he received the thing was the owner thereof, and could transmit his ownership. (1950a)

Art. 1128. The conditions of good faith required for possession in Articles 526, 527, 528, and 529 of this Code are likewise necessary for the determination of good faith in the prescription of ownership and other real rights. (1951)

Art. 1129. For the purposes of prescription, there is just title when the adverse claimant came into possession of the property through one of the modes recognized by law for the acquisition of ownership or other real rights, but the grantor was not the owner or could not transmit any right. (n)

Art. 1130. The title for prescription must be true and valid. (1953)

Art. 1131. For the purposes of prescription, just title must be proved; it is never presumed. (1954a)

Art. 1132. The ownership of movables prescribes through uninterrupted possession for four years in good faith.

The ownership of personal property also prescribes through uninterrupted possession for eight years, without need of any other condition.

With regard to the right of the owner to recover personal property lost or of which he has been illegally deprived, as well as with respect to movables acquired in a public sale, fair, or market,

or from a merchant’s store the provisions of Articles 559 and 1505 of this Code shall be observed. (1955a)

Art. 1133. Movables possessed through a crime can never be acquired through prescription by the offender. (1956a)

Art. 1134. Ownership and other real rights over immovable property are acquired by ordinary prescription through possession of ten years. (1957a)

Art. 1135. In case the adverse claimant possesses by mistake an area greater, or less than that expressed in his title, prescription shall be based on the possession. (n)

Art. 1136. Possession in wartime, when the civil courts are not open, shall not be counted in favor of the adverse claimant.

Art. 1137. Ownership and other real rights over immovables also prescribe through uninterrupted adverse possession thereof for thirty years, without need of title or of good faith. (1959a)

Art. 1138. In the computation of time necessary for prescription the following rules shall be observed:

(1) The present possessor may complete the period necessary for prescription by tacking his possession to that of his grantor or predecessor in interest;

(2) It is presumed that the present possessor who was also the possessor at a previous time, has continued to be in possession during the intervening time, unless there is proof to the contrary;

(3) The first day shall be excluded and the last day included. (1960a)

Title V. PRESCRIPTION

CHAPTER 1

GENERAL PROVISIONS

Art. 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)

Art. 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)

Art. 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)

Art. 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)

Art. 1110. Prescription, acquisitive and extinctive, runs in favor of, or against a married woman. (n)

Art. 1111. Prescription obtained by a co-proprietor or a co-owner shall benefit the others. (1933)

Art. 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)

Art. 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)

Art. 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)

Art. 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)

Art. 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)