RIGHTS OF ACCESSION WITH RESPECT TO IMMOVABLE PROPERTY

I.​ ​Landowner is the Improver ( art. 447)

Landowner (LO) and BPS Owner of Materials (OM)

Good Faith Good Faith

All works, sowing, and planting are Entitled to payment for the value of the
presumed to have been made by the materials used by the landowner (Art. 447)
landowner and at his expense (Art. 446)
Right to remove the materials ​only​ in case
Right to appropriate the works, sowing, he can do so without injury to the work
and planting made in good faith after constructed, or without the planting,
payment of the indemnity provided for in constructions or works being destroyed
Articles 546 and 548. (Art. 448) (Art. 447)

LO becomes the owner of the materials

but he shall pay their value (Art. 466)

May return the materials IF he can do so

without injury to the work constructed

Bad Faith Good Faith

Liable to the owner of materials for the Entitled to payment for the value of the
value of the materials used and is also materials used by the landowner (Art. 447)
obliged to the reparation of damages (Art.
447) Right to remove the materials in any event
even if it causes injury to the work
LO becomes owner of the materials but he constructed (Art. 447)
shall pay their value (Art. 466)
Entitled to indemnification for damages
Liable for damages to OM

Good Faith Bad Faith

Acquire improvements and without If he acted in bad faith, he loses all the right
indemnity to the owner of materials and to be indemnified. (Art. 449) He can be held
collect damages (Arts. 546 and 449). liable for consequential damages without
right of removal whether or not injury be
caused.

Bad Faith Bad Faith

To be in good faith (art. 453) To be in good faith (Art. 453)

1. Acquire improvements and pay the 1. Collect value of materials from

owner of the materials LO/BPS.
2. Remove only if without injury (Art.
455, 447)

All works, sowing, and planting are Entitled to payment for the value of the
presumed to have been made by the materials used by the landowner (Art. 447)
landowner and at his expense (Art. 446)
Right to remove the materials only in case
Right to appropriate the works, sowing, he can do so without injury to the work
and planting made in good faith after constructed, or without the planting,
payment of the indemnity provided for in constructions or works being destroyed
Articles 546 and 548. (Art. 448) (Art. 447) - ​there is no accession

LO becomes the owner of the materials

but he shall pay their value (Art. 466)

II.​ ​Landowner is not the BPS (arts. 448-454)

Landowner (LO) BPS is also Owner of

materials

Good Faith Good Faith

Rights: Rights:

1. To appropriate as his own the 1. Receipt of indemnity provided for in

works, sowing or planting; ​after articles 546 and 548
 payment of the indemnity provided a. Necessary expenses shall
for in articles 546 and 548 be refunded to every
2. To oblige the one who built or possessor; but only the
planted to pay the price of the land possessor in good faith may
a. To oblige the one who retain the thing until he has
sowed, the proper rent (Art. been reimbursed therefor
448) b. Expenses for pure luxury or
mere pleasure shall not be
Obligation: refunded to the possessor in
good faith; ​but​ he may
1. Payment of the indemnity provided remove the ornaments with
for in 546 and 548, if he elects which he has embellished
appropriation the principal thing ​if it suffers
2. No compulsion to the builder, no injury thereby​, and if his
planter, or sower to remove his successor in the possession
works, planting or sowing does not prefer to refund the
amount expended.
2. The builder or planter cannot be
obliged to buy the land if its value is
considerably more than that of the
building or trees.

Obligation:

1. Transfer of possession of work,

planting or sowing upon payment by
owner in good faith
2. He shall pay reasonable rent, ​if the
owner of the land does not choose
to appropriate the building or trees
after proper indemnity

Good Faith Bad Faith

Rights: Rights:

1. The work, planting, or sowing of the 1. Reimbursement for the necessary

builder, planter, or sower in bad expenses of preservation of the
faith (Art. 449) land. (Art. 452)
2. The demolition of the work, or
removal of the planting and sowing, Obligations:
at the expense of the builder,
planter or sower​ (Art. 450) 1. To lose w​ hat is built, planted or
3. To compel the builder or planter to sown without right to indemnity.
pay the price of the land (Art. 449)
 a. To compel the sower to pay 2. To pay for land or its lease, if said
the proper rent (Art. 450) option is elected by the landowner
4. Damages from the builder, planter (Art. 450)
or sower. (Art. 451) 3. To pay damages to the landowner
(Art. 451)

Bad Faith Good Faith

RIGHTS: RIGHTS:
● To become the owner of the ● To remove the works in any event,
materials/buildings/plantings/sowin whether or not injury will be caused
gs to the land; and
OBLIGATIONS: ● To be indemnified for damages.
(Art. 454 in relation to Art. 447)
● To pay for the value of the
materials/buildings/plantings/sowin
gs; and
● To indemnify the BPS for damages.

Bad Faith Bad Faith

RIGHTS: RIGHTS:
● To choose between the ff. ● To compel the LO to exercise any
alternatives: of the two options available
● OPTION 1: To appropriate as his ● To receive reimbursement if LO
own the works, sowing or planting chooses OPTION 1
upon payment of indemnity.
● Right to retain the property (both
● OPTION 2: To oblige the B/P to land and improvement) until he has
pay the price of the land and the S been reimbursed by the LO for the
to pay the proper rent.(Art.448) necessary and useful expenses
○ If the value of the land is ○ This is applicable only when
considerably more than that private land is involved
of the improvements, B/P
● Non-liability for rentals while he
cannot be compelled to pay
retains the property
for the value of the land.
● To be reimbursed for necessary
○ Reasonable rent shall be
and useful expenses
paid by the B/P if the LO
does not choose OPTION ○ Fruits received during period
1. of retention cannot be offset
with expenses to be
● The LO can demand removal if he
reimbursed to him
chooses OPTION 2 but the BPS
defaulted in payment. OBLIGATIONS:
OBLIGATIONS: ● To pay for the value of the land
(B/P) or pay rentals (BPS) if LO
● To exercise the options available
chooses OPTION 2
and to communicate his choice to
the BPS ● To vacate the premises if the
improvements are destroyed
● To indemnify the BPS if he elects
without fault of the LO by fortuitous
OPTION 1
event
● Not to compel the BPS to remove
the improvements without first
exercising any of his options
● Exemption: When the property is
"transferable" or "transitory" nature
(​Alviola v. Court of Appeals)​ .

III.​ ​Landowner, BPS and Owner of Materials are different persons (Arts.

445,447,448,455,546)
 Landowner Builder, Planter, Sower Owner of Materials

Good Faith Good Faith Good Faith

OPTION 1: Rights under Option 1: Rights:

Acquire the improvements (Art. (1)Right to reimbursement (1)Right to collect value of
448) (2)Right of retention for materials primarily from BPS,
Obligations under Option 1: necessary and useful and subsidiarily from LO if
(1)Pay the value of expenses (Art. 546) BPS is insolvent (Art. 455)
improvement Obligations to OM:
(2)Pay the value of necessary (1) Pay value of materials (Art. (2)Right to remove materials if
and useful expenses (Art. 546) 455) can be done without causing
(3)Subsidiarily liable to OM injury to the work constructed
(Art. 455) (Art. 447)

OPTION 2:
If land < improvement, Obligations under Option 2:
•Sell the land to BP If land < improvement,
If land > improvement, •Pay the value of the land to
•Require proper rent from BP LO
•
For the case of S, If land > improvement,
•LO may require proper rent •Pay proper rent to LO
since sowing is a temporary
use of the land. (Art. 448) For the case of S,
• •Pay proper to rent to LO
Obligations to OM: (Art. 448)
(1) Subsidiarily liable to OM •
(Art. 455) Obligations to OM:
(1) Pay value of materials (Art.
455)

Good Faith Good Faith Bad Faith

OPTION 1: Rights under Option 1: Rights:
Acquire the improvements (Art. (1)Right to reimbursement No right to collect the value of
448) (2)Right of retention for material (Art. 455. 449)
Obligations under Option 1: necessary and useful
(1)Pay the value of expenses (Art. 546)
improvement to BPS Rights against OM: Obligations to BPS:
(2)Pay the value of necessary (1)Appropriate the materials (1) Pay consequential
and useful expenses to BPS (2)Collect damages from OM damages to BPS
(Art. 546) Obligations under Option 2:
If land < improvement,
OPTION 2:
If land < improvement, •Pay the value of the land to
•Sell the land to BP LO
If land > improvement, If land > improvement,
•Require proper rent from BP •Pay proper rent to LO

For the case of S, For the case of S,

•LO may require proper rent •Pay proper to rent to LO
since sowing is a temporary Rights against OM:
use of the land. (1)Appropriate the materials

Collect damages from OM

Good Faith Bad Faith Bad Faith

As to the BPS 1. ​Loses​ what is built, 1. Can recover from BPS

planted or sown, ​without (as if both were in good
1. ​Acquire the right to indemnity faith)
improvements​ ​without
paying for indemnity [Art. 2. May still ​recover the 2. If BPS acquires the
449]. OR has the Options to necessary expenses​ for improvements, has the right
either: [Art. 450] preservation of land unless to remove the materials if it
LO sells land [Art. 452] is feasible without injury
a. Demand the
demolition​ of the As to the LO
work, or that the
planting or sowing 1. Liable to the LO for
be removed; OR consequential damages
b. Compel BP to pay without right of removal
the price of the (Art. 447)
land​, and S to pay
rent

2. Right ​to collect

damages​ from BPS [Art.
451]
3. Still has to pay the
necessary expenses ​to
BPS [Art. 452]

As to the OM

4. Not subsidiary liable to

the OM, if the BPS pays the
value of the materials.

Bad Faith Good Faith Good Faith

1. Acquires the As to the LO As to the LO

improvements after:
1. Remove improvements, 1. Remove materials, in any
a. Paying indemnity in any event event (only if LO acted in
and damages to BF) (Art. 447)
BPS, UNLESS BPS 2. Right to be ​indemnified
decides to remove by the LO for any damages 2. Subsidiarily collect from
the improvements LO for the value of the
As to the OM materials, if he is made to
As to the OM: [​ Art. 447] pay for the improvements,
3. Pay the OM the value of or if BPS has no property to
3. Subsidiarily liable to the the materials pay with (Art. 455)
OM for value of the
materials, if he acquires the As to the BPS
improvements and pays
damages to the BPS 3. Collect value of materials
primarily from BPS
- No subsidiary
liability if BPS
chooses removal

Bad Faith Bad Faith Good Faith

1.​ ​Acquire 1.​ ​Right of retention 1.​ ​Collect

value of
improvements after until reimbursed for materials and
indemnity to B,P,S; necessary expenses damages primarily
OR such as from B,P,S and
preservation of the subsidiarily from LO;
2.​ ​Sellto B,P except if land(Spouses
the value of the land Suguid vs. CA); 2.​ ​If
B,P,S acquires the
is considerably more improvements,
than the remove materials in
improvements;
 3.​ ​Rent to S; 2.​ ​Pay value of any event with right
materials to OM and to collect damages
(Sarmiento vs. Agana) pay him damages

4.​ ​Subsidiarily liable to

OM (Civil Code Arts. 447, 455)
(Civil Code Arts. 447, 546)

(Civil Code Arts. 448,

453,455, 546, 548)

Good Faith Bad Faith Good Faith

1.​ ​Acquire 1.​ ​Recover necessary 1.​ ​Collect

value of
improvements expenses such as materials and
without paying cost of preservation damages from
indemnity and of land; B,P,S and
collect damages; subsidiarily from
OR 2.​ ​Lose improvements LO;
without right to
2.​ ​Compel B,P to pay retention from LO 2.​ ​If
B,P,S acquires
the price of the land unless LO chose to the improvements,
and rent to S and sell the land remove materials in
collect damages; (Floreza vs. any event and right
OR Evangelista); to collect damages

3.​ ​Demolish and 3.​ ​Pay damages. (Civil Code Arts. 447, 455)
restore at the
expense of B,P,s (Civil Code 443, 449, 451)
and collect
damages;

4.​ ​Pay necessary

expenses such as
cost of preservation
of land to B,P,S;

5.​ ​Subsidiarily liable

to OM

(Civil Code Arts. 449, 450,

451,452,455)

Bad Faith Good Faith Bad Faith

 1.​ ​Acquire 1.​ ​Indemnity for 1.​ ​No indemnity
improvements and damages
pay indemnity and 2.​ ​Lose materials
damages to B,P,S 2.​ ​Remove

improvements in 3.​ ​Pay damages

(Civil Code Arts. 447 and any event
454) (Civil Code Art. 20, 449)
(Civil Code Arts. 447 and
454)