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Property Notes

Article 448 establishes the rights and obligations of landowners and those who build, plant or sow on their land in good faith (builders/planters/sowers or BPS). It provides the landowner the right to appropriate the works after paying indemnity or compel the BPS to buy the land. The BPS cannot be compelled to buy if the land value is considerably more. If the landowner appropriates, the BPS has rights to reimbursement and retention until paid. If neither option is chosen, the parties may establish a lease. Article 448 only applies if the BPS acted in good faith. BPS in bad faith loses what they built/planted/sowed with no indemnity

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94 views5 pages

Property Notes

Article 448 establishes the rights and obligations of landowners and those who build, plant or sow on their land in good faith (builders/planters/sowers or BPS). It provides the landowner the right to appropriate the works after paying indemnity or compel the BPS to buy the land. The BPS cannot be compelled to buy if the land value is considerably more. If the landowner appropriates, the BPS has rights to reimbursement and retention until paid. If neither option is chosen, the parties may establish a lease. Article 448 only applies if the BPS acted in good faith. BPS in bad faith loses what they built/planted/sowed with no indemnity

Uploaded by

Christopher Martin Gunsat
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© © All Rights Reserved
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ARTICLE 448

Art. 448. The owner of the land on which anything has been built, sown or
planted in good faith, shall have the right to appropriate as his own the works,
sowing or planting, after payment of the indemnity provided for in articles 546
and 548, or to oblige the one who built or planted to pay the price of the land, and
the one who sowed, the proper rent. However, the builder or planter cannot be
obliged to buy the land if its value is considerably more than that of the building
or trees. In such case, he shall pay reasonable rent, if the owner of the land does
not choose to appropriate the building or trees after proper indemnity. The
parties shall agree upon the terms of the lease and in case of disagreement, the
court shall fix the terms thereof. (361a)
Builder, Planter, Sower is in GOOD FAITH
“one who builds on the land with the belief the he is the owner thereof”
- when there is a belief that he has the right to build, plant, or sow because
he thinks he owns the land or believes himself to have a claim of title. In
other words, he thought that the land was his.
- BPS is also in good faith is he was given consent by the owner of the land.
Builder, Planter, Sower is in BAD FAITH
- AWARE of the defect or flaw in his title or mode of acquisition.
Examples laid down by the Supreme Court:
In Pada-Kilario vs. CA, the Court said that persons whose occupation of a
realty is by sheer tolerance are NOT possessors or builders in good faith. They are
bound by an ‘implied promise’ that they will vacate upon the same upon demand.
Owner of the land in GOOD FAITH
- he did not know that somebody was building on his land or even if he did
know, he expressed his objection
NOTES:
It is the owner of the land who has the choice or option, neither the builder not
the courts have the right of choice. Clearly, the builder does not have option.
Because the owner of the land:
1. Has OLDER RIGHT
2. By virtue of PRINCIPLE OF ACCESSION, is entitled to the ownership of
accessory thing.
JURISPRUDENCE HELD:
ARTICLE 448 WILL ONLY APPLY IF THE BPS IS IN GOOD FAITH. HOWEVER, IF THE
DISPUTED LOTS ARE COVERED WITH TORRENS TITLE, BPS IS CONSIDERED IN BAD
FAITH, there being a presumptive knowledge of the Torrens Title, the area, the
extent, of the boundaries.
Furthermore, Article 448 will apply, when the landowner discovers the intrusion
of BPS in good faith on his land. In other words, the landowner’s right to
exercise his option will accrue once both parties become aware that a problem
exists in regard to their property rights.

LANDOWNER BUILDER, PLANTER, SOWER


IN GOOD FAITH IN GOOD FAITH

FIRST OPTION - APPROPRIATION RIGHT TO REIMBURSEMENT


- has the right to APPROPRIATE works, (attaches only IF the landowner chooses to
planting, sowing after payment of proper appropriate or buy what was built, planted,
indemnity under 546 and 548 or sown on his land)

CURRENT MARKET VALUE should be made


the basis of reimbursement to the builder in
good faith.

Ownership over the thing that was built, In view of his good faith, BPS in good faith is
planted or sown, DOES NOT pass to the entitled to RIGHT OF RETENTION until he is
landowner till after payment of proper paid of full indemnities.
indemnity.
The BPS in good faith has RIGHT OF
After payment of proper indemnity, the RETENTION.
owner of the land may order BPS in good
faith to VACATE the land.

RIGHT TO BE REFUNDED OF USEFUL


EXPENSES (adds value to the property) with
right of retention until fully reimbursed.

SECOND OPTION – COMPULSORY SELLING BPS in good faith CANNOT be compelled if


-Owner of the land has the right to COMPEL the value of the land is CONSIDERABLY
the builder or planter to buy the land unless MORE THAN that of the building or trees
the value of the land be considerably more
than the value of the house. Note: CONSIDERABLY MORE THAN =
although the value of the land is higher, we
must determine if it is CONSIDERABLE
HIGHER.
(to be determined by the facts of the case)
If it the value of the land is CONSIDERABLY
HIGHER, BPS in good faith cannot be
compelled to buy the same.

Note: the owner of the land can sell to the In the event that the landowner chooses to
builder that part of his land on which was sell the land on which the building stands,
construction a portion of the house the price must be fixed at the PREVAILING
MARKET VALUE AT THE TIME OF PAYMENT.

In case the landowner sells the land (or


portion of his land) and the BPS in good Question: What if the builder in good faith
faith does not pay, the right of does not want to buy the land?
removal/demolition arises.
Answer: He must VACATE the land and pay
He can therefore, demand the removal of rentals until he does so. (However, in view of
improvements. In Ignacio vs. Hilario, if BPS his good faith, BPS in good faith will not pay
in good faith cannot pay, he should not be prior rentals prior election of the land
allowed to use the land to the owner’s because of his consequent right of
detriment. retention.)

In the event that the builder in good faith is


unwilling or unable to buy, here are the
following remedies:
A.) If the parties agree, they may assume the
relation of a lessor and lessee. In case that
they do not agree on the amount of rental,
they may go to the court to fix the amount of
rental. (Miranda vs. Segarra)

B.)

OTHER REMEDIES FOR THE LANDOWNER REMEDY FOR BUILDER, PLANTER, SOWER IN
GOOD FAITH
The landowner has the right to exercise The choice of the landowner is
either alternative BUT may NOT refuse both. IRREVOCABLE.
Hence, if the landowner has elected to get
WRIT OF DEMOLITION. The RIGHT TO the building but does not pay the proper
DEMOLISH only arises when after having indemnity, the latter CANNOT afterwards
chosen to sell the land, the BPS in good faith elect to sell the land. Thus, his monetary
fails to pay. obligation to indemnify can be satisfied by a
LEVY OF EXECUTION on his/her properties.
The owner of the land may even have his
land and the house sold at PUBLIC AUCTION,
and keep for himself the proceeds from the
land and give the rest to the builder.

LANDOWNER BUILDER, PLANTER, SOWER


IN BAD FAITH IN BAD FAITH

CONSIDER THEM BOTH IN GOOD FAITH CONSIDER THEM BOTH IN GOOD FAITH
Hence, if both parties are in bad faith, they
must be considered in good faith.
Thus, BPS in bad faith is entitled to the rights
of BPS in good faith.

ARTICLE 448 STILL APPLIES ARTICLE 448 STILL APPLIES

LANDOWNER BUILDER, PLANTER, SOWER


IN GOOD FAITH IN BAD FAITH

ARTICLE 449 APPLIES


Under Article 449, “he who builds, plants, or
sows in bad faith on the land of another,
loses what is built, planted or sown without
right to indemnity.”

 NOT entitled to reimbursement of


USEFUL EXPENSES

 NOT entitled to RIGHT OF RETENTION

 HAS the RIGHT TO REMOVE


IMPROVEMENTS which is limited to
PURE LUXURY or MERE PLEASURE
provided that the principal thing does
not suffer injury. Provided further
that the lawful possessor does not
prefer to retain them by paying the
value they may have at the time he
enters into possession.

LANDOWNER BUILDER, PLANTER, SOWER


IN BAD FAITH IN GOOD FAITH

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