Short answer. Under Article 424 of the Civil Code, local government property for public use includes provincial roads, city streets, municipal streets, squares, fountains, public waters, promenades, and public works for public service paid for by the province, city, or municipality. All other property held by local governments is patrimonial and can enter commerce.
What the law says
Property for public use, in the provinces, cities, and municipalities, consist of the provincial roads, city streets, municipal streets, the squares, fountains, public waters, promenades, and public works for public service paid for by said provinces, cities, or municipalities.
Civil Code, Article 424 — Local Property for Public Use. Read the full provision →
The two classes of local government property
Article 424 of the Civil Code divides the property of provinces, cities, and municipalities into two classes. The first is property for public use: things dedicated to the free use of the public. The second is patrimonial property: everything else a local government unit owns. This classification controls whether local property can be sold, mortgaged, leased, or otherwise dealt with under private law. Property for public use is outside the commerce of man as long as its dedication to public use continues; patrimonial property is not.
What counts as local property for public use
The Civil Code lists the specific types: provincial roads, city streets, municipal streets, the squares, fountains, public waters, promenades, and public works for public service that are paid for by the local government unit. These are things the community uses freely — roads you drive on, plazas you walk through, public fountains, waterways accessible to residents. The decisive feature is that they are paid for by the province, city, or municipality and are open to public use, not reserved for any particular private purpose.
Patrimonial property: what it is and how it is governed
Article 424 provides that all other property possessed by a local government unit is patrimonial. Patrimonial property is owned by the local government in the same way a private person owns property — it can in principle be sold, donated, or leased, subject to the Civil Code and, crucially, without prejudice to the provisions of special laws. Local government codes, budget laws, and other legislation add requirements and restrictions to transactions involving patrimonial property. The Civil Code sets the baseline classification; the special laws set the procedural and substantive rules for disposals.
Why the classification matters in property disputes
A private individual cannot validly buy, encumber, or claim prescriptive title to property that belongs to the public use category. Roads, public squares, and similar properties are not subject to acquisitive prescription, and deeds that purport to transfer them are void from the start. By contrast, if a local government has allowed property to lapse from public use — by formally withdrawing it from service or by long abandonment without any public purpose — a court may treat it as having shifted to patrimonial status. Once that happens, normal private-law rules apply. The boundary between the two classes is therefore a practical question with significant consequences for land titles and development projects near local government land.
Cases citing this provision
These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.
- Sangguniang Panlalawigan of Bataan vs. Congressman Enrique T. Garcia, Jr., et al, G.R. No. 174964, October 5, 2016 — read the decision on LawPhil →