Property - Midterms

This is a reconstituted questionaire of my exam today in Property, under former Associate Dean, ATTY. TLC.

I.

True or False. Write TRUE if the statement is true, otherwise write FALSE and cite the legal basis for such.

a. A possessor in bad faith has the right to reimbursement and right to retention with regard to the necessary expenses
b. Legal partition is effected if the co-owned cannot be separated thereof.
c. Quieting of title is an action quasi in rem.
d. Properties of the public domain may be subject to execution upon judicial order.
e. In case when two owners of two materials are mixed, the doctrine to be applied is “accessory follows the principal.”

II.

Multiple Choice. Write the letter of the best and correct answer.

a. Doctrine of self help, characteristics
b. Characteristics of avulsion
c. Doctrine of self help, characteristics
d. Characteristics of avulsion
e. 

III.

Sps. Reyes owns a piece of land in Makati City worth P1M, covered by TCT # 1234. Sps. Santos builds a P900K house at the said lot. When Sps. Reyes visited the lot, they found out and discovered the construction, but they did not brought up the matter, because it may cause disorder, until the construction was finished. 

Discuss the rights of Sps. Reyes (10%) and Sps. Santos (10%).

IV.

Suppose in Question III, while in possession of the land, Sps. Santos introduced improvements, what are their rights regarding 

a. Necessary expenses (5%); 
b. Useful expenses (5%); and 
c. Luxurious expenses (5%).

V.

Carmen is in a buy and sell business of jewelry. Donna is an agent of Carmen on commision basis. In need of money to pay off her casino debt, Donna secured a P50K loan from Aguirre Pawnshop, giving 5 rings as pledge thereof. Due to her failure to redeem the said rings before the maturity date, the pawnshop foreclosed it. 3 rings were thereafter sold in a public auction sale to Evelyn, while 2 rings remained with Aguirre Pawnshop. When Carmen learned of the sale, she sued to recover her rings from Aguirre Pawnshop and Evelyn. Both refused and interposed the defense as being possessors in good faith. 

a. Between Carmen and Aguirre Pawnshop, who has the better right? (5%)
b. How about between Carmen and Evelyn? (5%). Explain fully.

VI.

Benjie inherited from his father Bonifacio a 250 sq. m. lot, when the latter died on February 14, 1996. Benjie, then in Dubai, was only able to accept the inheritance on March 14, 2000. He thereafter came home, built a house and lived there with his family. Sometime in March 14, 2002, Henry appeared and claimed to be the lawful owner of the said lot. He filed an action for reconveyance to recover the land. It was later proved that during his lifetime, Bonifacio has been in possession of the land since 1981 until his death in 1996, in bad faith. Benjie pleaded as his defense, that Henry's claim has already prescribed. 

Rule on the contention of Benjie, citing the legal/doctrinal basis that is to be applied (10%).

VII.

There are two adjacent lots by a river. Lot # 1, with an area of 1000 sq. m. is owned by Rudy, while Lot # 2, also with an area of 1000 sq. m. is owned by Romy. For a period of 10 years, soil deposits began to accumulate over a piece of land. 25 sq. m. was deposited in Lot # 2, which formerly belonged to Lot # 1. Rudy asserts that accretion cannot validly take place because the subject lots are registered in the Torrens system.

a. Who owns the accretion? Explain fully (5%). 
b. What are the elements of alluvium? (5%).

VIII.

Bernie, a treasure hunter, secured a map indicating the location of a hidden treasure. It was later identified that the land belongs to Bert, an OCW in Kuwait. Despite attempts to find him, Bernie was unable to contact Bert. So he decided to enter the property, opening the steel gate of the property. He conducted his search thereon. True enough, a found the hidden treasure, comprised of precious stones, gold, jewelries and money. Bert learned of Bernie's discovery. He demanded his share of the hidden treasure. Bernie refused. 

What are the rights of Bert and Bernie? (10%).