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Lex Loci Rei Sitae and Art. 16 of the Civil Code

 

Persons 10: Lex Loci Rei Sitae and Art. 16 of the Civil Code (lexinmotion)

The principle above means that real property is governed by the law of the place where it's located.

Orion bank savings vs. Suzuki case

It is a universal principle that real or immovable property is exclusively subject to the laws of the country or state it is located. The reason is found in the nature of immovable property...its immobility.

Immovables are part of the country and so closely connected to it that all rights over them have their natural center of gravity there.Thus all matters concerning the title in this position of real property are determined by what is known as the lex loci rei sitae which alone can prescribe the mode by which a title can pass from one person to another or by which an interest therein can be gained or lost. This general principle includes all rules governing the descent, alienation, and transfer of a movable property and the validity effect and construction of wills and other conveyances.

The SC continues, “this principle even governs the capacity of the person making the deed relating to immovable property no matter what its nature may be. Thus an instrument will be ineffective to transfer title to land if the person making it is incapacitated by Lex Loci Rei Sitae.

Article 16 of the Civil Code provides that, “Real property as well as personal property is subject to the law of the country where it is situated.”

“However, intestate and testamentary successions, both with respect to the order of succession and the amount of successional rights and to the intrinsic validity of testamentary provisions shall be regulated by the national law of the person whose succession is under consideration, whatever may be the nature of the property and regardless of the country wherein said property may be found.”

Exceptions:

  1. Order of succession - refers to the presence in the class of heirs who will succeed. The presence of even one class necessarily excludes the other classes

First class is called the primary heirs. If a person has no children and no spouse, it would be hvs or her parents.

Secondary heirs. The presence of even a single member of the primary heirs would necessarily exclude the heirs in the second class.

Concurring heirs. Persons who concur o sumasabay sa primary

  1. Amount of successional rights - the percentage of the gross estate that should be divided among the primary heirs and the concurring heirs.

For eg. if the spouse concurs with the parents of the testator, he gets one-fourth of the gross estate; if he concurs with the children of the testator, he gets the same as that of each one of the children.

  1. Intrinsic validity of testamentary provisions - refers to the legality of each clause of the will; the basis of whether or not a particular bequest or devise
  2. Capacity to succeed from the dissident - just a reiteration of the rule under Art. 15 which provides that family rights and duties, status, condition and the capacity of persons are binding upon citizens of the Philippines, even though living abroad

 

Art. 415 of the Civil Code contains a long list of immovable or real or realty or real property.

Possible question in class: Bakit walang definition ng real property?

Real property - land, building, roads etc., trees, plants, and growing fruits so long as nasa immovable, meaning, lupa

also, in immovable, fixed property such that it cannot be separated therefrom without breaking the object

Note: A tent or any temporary structure is not an immovable.

Other examples of immovable include: houses, pigeon houses, beehives, and fish ponds so long as they are permanently attached to the land forming a part thereof; fertilizer (it depends; pag nakasaboy na sa lupa, it becomes part of the land thus becoming available)

Personal property - under Art. 416 and 417 of the Civil Code (examples)

As a general rule, lahat ng di kasali sa 415, pasok na sa movable or personal property subject to certain exceptions - laman ng bahay, kotse, mga bagay na kaya nating buhatin o ilipat nang hindi nasisira ang lupa na kanilang dinidikitan.

A statue is a movable property but if nakadikit sa pader, sa lupa o sa isang poste ng building and it cannot be removed without causing damage to the statue or the real property where it is fixed, then it is an immovable by an express provision of Art. 415, paragraph 3

If the statue is placed in such a way as to reveal the intention to attach it permanently, then it becomes an immovable not because of paragraph 3 but because of paragraph 4.

 

Pautang, collectibles, account receivables, and tax of corporations are also personal property

 

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