RULES

Article 447 of the New Civil Code

RIGHTS AND OBLIGATONS OF THE PARTIES (First Scenario)

Landowner - Builder, Planter, Sower

Owner of the Materials (OM)
(LO -BPS)
Both Acted in Good Faith
Has the right to appropriate what has been built,
planted or sown with the obligation to indemnify
the OM the value of the materials (Based on
the principle that no person shoild unjustly
enrich himself at the expense of another)

Indemnity for the value of materials

Has the right to demand removal of the
materials if without injury to work or without
plantings or constructions being destroyed

Both Acted in Bad Faith

Has the right to appropriate what has been built,
planted or sown with the obligation to indemnify
the OM the value of the materials (Based on
the principle that no person shoild unjustly
enrich himself at the expense of another)

Bad Faith
Pay damages to OM

Indemnity for the value of materials

Has the right to demand removal of the
materials if without injury to work or without
plantings or constructions being destroyed

Good Faith
Demand for the value of the materials with a
right to be indemnified for damages

Appropriate what has been built, planted or

Demand for the removal of the materials in any
sown after paying the value of materials and
event even if it will cause injury to the land or to
indemnity for damages but subject to the
the materials with a right to be indemnified
preferred right of OM to remove
By analogy, Article 455 and 449 governed this scenario

Good Faith

Bad Faith

Loses his materials without any right to be

Appropriate what has been built, planted or indeminified
sown without paying indemnity
Pay damages to the LO

RULES
Article 448 - 454 of the New Civil Code
RIGHTS AND OBLIGATONS OF THE PARTIES (Second Scenario)

Owner of the Materials - Builder,

Planter, Sower (OM - BPS)
Both Acted in Good Faith (Article 448)

Landowner - (LO)

Appropriate as his own the works,sowing or

planting after payment to the BPS of the
necessary and useful expenses, and in proper
cases, expsenses for proper luxury or mere
Right of Retention until indemnity is paid and
pleasure, incurred by the BPS. (The obligation
cannot be required ta pay rent.
to pay indemnity the value of the materials,
which could either be: (1) original cost of
improvements; (2) increase in the value of the
whole.)
Sell the land to BP or collect rent from S.
However, the BP cannot be obliged to buy the
land if its value is considerably more than that of
Right of Reimbursement for the improvements.
the building or trees. In such case, there will be
forced lease and upon disagreement, the court
will fix the terms of the lease

Both Acted in Bad Faith (Article 448 & 453)

Appropriate as his own the works,sowing or
planting after payment to the BPS of the
necessary and useful expenses, and in proper
cases, expsenses for proper luxury or mere
Right of Retention until indemnity is paid and
pleasure, incurred by the BPS. (The obligation
cannot be required ta pay rent.
to pay indemnity the value of the materials,
which could either be: (1) original cost of
improvements; (2) increase in the value of the
whole.)
Sell the land to BP or collect rent from S.
However, the BP cannot be obliged to buy the
land if its value is considerably more than that of
Right of Reimbursement for the improvements.
the building or trees. In such case, there will be
forced lease and upon disagreement, the court
will fix the terms thereon.

Good Faith

Bad Faith

Appropriate what has been built, planted or

Lose the improvements and plants without a
sown on his land without paying indemnity and
right to be indemnified.
collect damages (Article 449, 450 & 451).
Right of Remotion - demand that what has been
built, planted or sown on his land be removed or
Recover necessary expenses for preservation of
demolished or restoration to former condition all
the land. (Article 452)
at the expense of the BPS and collect damages
(Article 450).
Compel the BP to pay the price of the land, and
No right to remove improvements.
the S the proper rent (Article 450).
Pay BPS necessary expenses for preservation.

Pay damages to LO

Article 447 shall apply in this scenario

Bad Faith
Good Faith
LO must indemnify BPS for the imporovements Demand the value of his materials and collect
and pay damages
damages
Demand the return of his materials in any event
Cannot compel BP to buy land
and collect damages