Property Classification in Civil Law: Real Rights & Asset Types

Introduction to Property Classification and Real Rights

The justification of real rights examines various aspects of related assets. This document outlines their treatment and definition within legal frameworks.

I. Treatment in Book II

II. Definition of Real Right in Article 577

Understanding Things, Goods, and Articles

The purpose of law, specifically concerning real rights, rests upon any provision (thing or fact). Discussion often centers on the semantic meaning of “thing” as the object of real rights.

  • Tangible vs. Intangible Property: While a purely sensory corporate thing may not be possible (Article 584), intangible property allows for mastery and use, with clear distinctions. This raises issues of patrimonialism, naming, and addressing.
  • Useful Things: Our Civil Code, appropriately, does not distinguish in Article 565. According to Guzman, “well” alludes to a position within the estate.

The object of real rights can be material or intellectual, referring to the “Cosa” (thing) upon which the real right is borne.

Classifications of Property

1. According to Physical Nature

  • Corporeal: Tangible objects.
  • Incorporeal: Intangible rights or assets.
  • Intellectual: Intellectual property.

1.1. According to Motion (Movable vs. Immovable)

  • Movable Property (Furniture):

    Defined by Article 567 as things that can be moved from one place to another without losing their individuality or ceasing to be what they are.

    Movable by Anticipation (Article 571):

    These are effects deemed chattels for rights with third parties. Examples include:

    1. Real Estate Sales (Article 1801)
    2. Injury to Real Estate only (Article 1891)
    3. Real Estate Loan – Turn Movable
    4. Leasing (Article 1962)
    5. Prohibition of donation of goods (Article 402)
  • Immovable Property (Real Estate):
    • By Nature (Article 568):

      Includes land, mines, premises, or farms (urban and rustic, with different meanings).

    • By Adhesion or Incorporation (Articles 568, 569):

      Things permanently adhering to buildings or trees. Temporary separation does not cause them to lose their character as buildings. Products and fruits (Article 571) are property but are reputed as movable.

    • By Destination (Article 570):

      These properties are considered immovable due to their intended use with a building. Criteria include:

      1. Owner’s use of the building, not necessarily the owner of the thing itself.
      2. Permanence of the destination.
      3. Broad destination.
      4. Things of comfort and decoration (Article 572).

2. According to Independent Existence

  • Main: Possesses independent existence.
  • Accessories: Lacks independent existence; its attachment or property is subordinated to another.

3. According to Consumability

  • Consumable:

    Things that are consumed by their first use, which can be physical or legal.

    • Physical: When the thing is used up by its first physical use (e.g., bread, apple).
    • Legal: When a person performs an act that cannot be repeated (e.g., sale).
  • Non-Consumable:

    Things that are not destroyed after their first use and can support repeated enjoyment or legal acts.

4. According to Divisibility

  • Divisible:

    Has a physical or material existence that allows for breakdown into parts without losing its essential status (e.g., water).

  • Indivisible:

    Possesses an intellectual existence. If divided, each part has a different structure than the whole (e.g., an animal).

5. According to Fungibility

  • Fungible (Expendable) (Article 575):

    Things that have a tender and can be replaced by another equivalent (e.g., for compensation (Article 1656) or mutual agreements (Article 2196)).

  • Non-Fungible (Durable Goods):

    Things that are not legal tender and have no equivalent that can replace them (e.g., a famous painting).

    • Subjective Criterion: Something objectively expendable can be subjectively expendable. This criterion is important in cases like payment in kind, alternative obligations, and offsetting.

6. According to Marketability

  • Marketable (In Commerce):

    The object of a legal relationship or public right, whether personal or property-related.

  • Unmarketable (Out of Commerce):

    The object exists by nature and cannot be traded (e.g., air).

7. According to Appropriability

  • Appropriable: Can be owned.
  • Inappropriable: Cannot be owned.

8. According to Complexity and Universality

  • Simple:

    Has a uniform structure and cannot be divided into parts (e.g., an animal).

  • Complex or Compound:

    Consists of two or more simple things joined together, where they lose their individual identification.

  • Universal:

    A collection of things considered as a single entity (e.g., an estate).

  • Unique:

    A single, distinct item.

9. Public and Private Property

Property classified by ownership.

10. According to Existence (Present and Future)

  • Present:

    Has a physical or real existence at the time of the legal act.

  • Future:

    Does not have a real physical existence yet but is expected to exist (e.g., fruits of a tree).

11. According to Purpose

  • Means of Production:

    Designed to produce other goods.

  • Commodities:

    Designed to meet particular needs.

12. According to Specificity

  • Specific:

    Determined to the maximum degree (e.g., “that specific car”).

  • Generic:

    Determined to the minimum degree (e.g., “a car”).