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RULES ON PROPERTY ACCESSION

Atty. Angeli P. Albaña, LL.M.


Bulacan State University (1st Semester – A.Y. 2018-2019)

I. Rules when landowner (LO) – builder/planter/sower (BPS) makes constructions or plantings with materials
of another.

Landowner – Builder/Planter/Sower (LO-BPS) Owner of Materials (OM)


Good Faith Good Faith
Acquire the materials after full payment  Entitled to full payment for value of the materials
 Remove materials if w/o injury to the work done
Bad Faith Good Faith
Acquire the materials after full payment and damages  Entitled to full payment for value of the materials and
damages
 Remove materials EVEN if there is injury to the work done
and entitled to damages
Good Faith Bad Faith
 Acquire materials w/o paying for its value and right  Lose materials w/o payment and liable for damages
to damages  Recover necessary expenses for preservation of land w/o
 Pay necessary expenses for preservation the right to retain the thing until indemnity is paid
Bad Faith Good Faith
Same as both in good faith – in pari delicto

II. Rules when builder/planter/sower (BPS) is not the landowner (LO)

Landowner (LO) Builder/Planter/Sower (BPS)


Good Faith Good Faith
Acquire whatever has been built, planted or sown after  Entitled to payment for necessary, useful, and luxurious
payment of: expenses, with right of retention over the land w/o
i) necessary expenses obligation to pay rent until he has received full payment
ii) useful expenses: from LO
a) original cost of improvement  Remove useful improvements if w/o substantial injury
b) increase of the value, as a whole  If LO does not appropriate luxurious improvements, BPS
iii) luxurious expenses (if LO wants to can remove if w/o substantial injury to the principal
appropriate)
Oblige BP to buy the land or S to pay rent, unless the land is  Purchase land at fair market value if such is not
considerably more than that of the improvements considerably higher in value
 If BPS cannot pay for the land, LO can require BPS to
* parties shall agree on the terms of the lease, in case of remove whatever has been built, planted or sown
disagreement, courts shall fix the terms  If land is considerably higher in value, cannot compel BPS to
purchase land and thus BPS shall pay rent
 If BPS cannot pay rent, LO can eject him
Good Faith Bad Faith
 Acquire whatever has been built, planted or sown  Loses whatever has been built, planted or sown w/o
w/o paying indemnity except necessary expenses indemnity
for preservation of land and luxurious expenses (if  Liable for damages
LO wants to appropriate)  Entitled to reimbursement for necessary expenses for
 Entitled to damages preservation of land BUT:
i) no right of retention
ii) cannot remove improvements EVEN if w/o injury
 As to luxurious improvements:
i) If LO appropriates – entitled to reimbursement
(value = upon LO’s entry of possession)
ii) If LO does not appropriate - BPS can remove if
w/o substantial injury to the principal
Oblige BP to buy land and S to pay proper rent with damages Required to pay for the land or proper rent with damages
Compel BPS to remove or demolish work done with damages Required to remove or demolish any work done at his expense with
damages
Bad Faith Good Faith
Acquire whatever has been built, planted or sown after  If LO acquires, BPS is entitled to indemnity with damages
payment of indemnity with damages  Remove whatever has been built, planted or sown EVEN if it
will cause injury and still entitled to damages
* if LO does not acquire, BPS cannot insist on purchasing land
Bad Faith Good Faith
Same as both in good faith – in pari delicto

III. Rules when landowner (LO), builder/planter/sower (BPS), and owner of materials (OM) are different
persons.

Landowner (LO) Builder/Planter/Sower (BPS) Owner of Materials (OM)


Good Faith Good Faith Good Faith
Acquire whatever has been built, planted or  Entitled to receive indemnity  Entitled to receive indemnity from
sown after payment of: from LO with right of retention BPS who is primarily liable for the
i) necessary expenses over the land until full payment materials. In case of insolvency of
ii) useful expenses:  Remove useful improvements if BPS, proceed against LO who is
a) original cost of improvement w/o substantial injury subsidiarily liable BUT w/o right of
b) increase of the value, as a whole retention
RULES ON PROPERTY ACCESSION
Atty. Angeli P. Albaña, LL.M.
Bulacan State University – College of Law (1st Semester – A.Y. 2018-2019)

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 Remove materials if w/o


substantial injury to the work or
plantings

Oblige BP to buy the land or S to pay rent  Purchase land at fair market  Receive indemnity from BPS only
unless the land is considerably more than value if such is not considerably (LO is not subsidiarily liable)
that of the improvements higher in value WITH right of retention until full
 If land is considerably higher in payment
* parties shall agree on the terms of the lease, value, cannot compel BPS to  Remove materials if w/o
in case of disagreement, courts shall fix the purchase land and thus BPS shall substantial injury to the work or
terms pay rent plantings and material rent lien
against BPS for payment of value
of materials
Good Faith Good Faith Bad Faith
Same as above Same as above  Loses materials in favor of BPS
 No right of indemnity either
from BPS or LO
 Liable for damages
Good Faith Bad Faith Bad Faith
 Acquire whatever has been built,  Loses whatever has been built, planted  No action against LO
planted or sown w/o paying indemnity or sown w/o indemnity  Liable for damages to LO
except necessary expenses for  Liable for damages to LO
preservation of land and luxurious  Entitled to reimbursement for * Since OM and BPS acted in BF, as
expenses (if LO wants to appropriate) necessary expenses for preservation of between them, they are treated as though
 Entitled to damages land BUT: both in GF
i) no right of retention
ii) cannot remove improvements
EVEN if w/o injury
 As to luxurious improvements:
i) If LO appropriates – entitled to
reimbursement (value = upon LO’s
entry of possession)
ii) If LO does not appropriate - BPS
can remove if w/o substantial
injury to the principal
 Oblige BP to buy the land or S to pay  Purchase land at fair market value or  Receive indemnity from BPS only
rent pay rent (LO is not subsidiarily liable) WITH
 Entitled to damages  Liable for damages to LO right of retention until full payment
 Remove materials if w/o substantial
injury to the work or plantings
 Liable for damages to LO
Compel BPS to remove or demolish work Required to remove or demolish any work Liable for damages to LO
done with damages done at his expense with payment of
damages to LO
Bad Faith Good Faith Good Faith
 Acquire whatever has been built,  Receive indemnity from LO with  Entitled to receive indemnity for
planted or sown after payment of damages materials principally from BPS and
indemnity with damages  Remove whatever has been built, in case of insolvency of BPS, proceed
 Cannot compel BPS to buy land planted or sown EVEN if it will cause against LO who is subsidiarily liable
injury and still entitled to damages  Remove materials EVEN if it will
cause injury and still entitled to
damages
Bad Faith Good Faith Bad Faith
 Acquire whatever has been built,  Receive indemnity from LO with  No right to receive indemnity for
planted or sown after payment of damages value of materials from BPS nor LO
indemnity with damages, unless BPS  Remove whatever has been built,  Liable for damages to BPS
decides to remove planted or sown EVEN if it will cause
 Cannot compel BPS to buy land injury and still entitled to damages
Bad Faith Bad Faith Good Faith
 Answer subsidiarily for the value of the  Pay value of materials to OM  Entitled to receive indemnity from
materials in case BPS cannot pay  Entitled to receive indemnity from LO BPS who is primarily liable for the
 Acquire whatever has been built, with right of retention over the land materials. In case of insolvency of
planted or sown after payment of: until full payment BPS, proceed against LO who is
i) necessary expenses  Remove useful improvements if w/o subsidiarily liable
ii) useful expenses: substantial injury  Remove materials EVEN if it will
a) original cost of improvement  Liable for damages to OM cause injury and still entitled to
b) increase of the value, as a damages
whole
 Liable for damages to OM
Oblige BP to buy the land or S to pay rent  Purchase land at fair market value if  Entitled to receive indemnity from
unless the land is considerably more than such is not considerably higher in BPS who is primarily liable for the
that of the improvements value materials. In case of insolvency of
 If land is considerably higher in value, BPS, proceed against LO who is
cannot compel BPS to purchase land subsidiarily liable
and thus BPS shall pay rent  Remove materials EVEN if it will
cause injury and still entitled to
damages
RULES ON PROPERTY ACCESSION
Atty. Angeli P. Albaña, LL.M.
Bulacan State University – College of Law (1st Semester – A.Y. 2018-2019)

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Good Faith Bad Faith Good Faith


 Acquire whatever has been built,  Loses whatever has been built, planted  Entitled to receive indemnity from
planted or sown w/o paying indemnity or sown w/o indemnity BPS who is primarily liable for the
except necessary expenses for  Liable for damages to LO materials. In case of insolvency of
preservation of land and luxurious  Liable for payment of value of BPS, proceed against LO who is
expenses (if LO wants to appropriate) materials to OM subsidiarily liable
 Entitled to damages  Entitled to reimbursement for  Remove materials if w/o injury
necessary expenses for preservation of
land BUT:
i) no right of retention
ii) cannot remove improvements
EVEN if w/o injury
 As to luxurious improvements:
i) If LO appropriates – entitled to
reimbursement (value = upon LO’s
entry of possession)
ii) If LO does not appropriate - BPS
can remove if w/o substantial
injury to the principal
Oblige BP to buy land and S to pay proper  Required to pay for the land or proper  Entitled to receive indemnity from
rent with damages rent with damages BPS
 Liable for payment of value of  Remove materials EVEN if it will
materials to OM cause injury
Compel BPS to remove or demolish work  Required to remove or demolish any  Entitled to receive indemnity from
done with damages work done at his expense with BPS
payment of damages to LO  Remove materials EVEN if it will
 Liable for payment of value of cause injury
materials to OM
Bad Faith Bad Faith Bad Faith
Same as though all acted in good faith – in pari delicto

IV. Rules on Fruits

Civil Fruits
Possessor in Good Faith Possessor in Bad Faith
Entitled to fruits from beginning of possession until  Not entitled to fruits
legal interruption  Liable for damages as rental from
beginning of possession until possession
is defeated
Natural/Industrial Fruits
Gathered
Planter Right to retain fruits  Must account for fruits and return value
of:
o Fruits actually received
o Fruits which the legal
possessor could have received
with due care and diligence
 Pay damages as reasonable rent for the
term of the possession
 Entitled to necessary expenses for
preservation, cultivation, and gathering
of fruits
Landowner No necessity to reimburse the planter of expenses Owns the fruits provided he pays the planter
since the planter retains the fruits expenses for the production, gathering, and
preservation
Standing Crops
Planter Reimbursed for expenses for production,  No rights, not even reimbursement of
gathering, and preservation expenses for cultivation (by right of
accession, all fruits belong to owner w/o
need to pay indemnity) BUT can
reimburse necessary expenses for
preservation
 Pay damages as reasonable rent for the
term of the possession
Landowner  Pro-rated (based on period of possession) Owns the fruits
between possessor and owner of:
o Expenses
o Net harvest
o Charges
 Allow possessor to stay in possession until
after all fruits are gathered
RULES ON PROPERTY ACCESSION
Atty. Angeli P. Albaña, LL.M.
Bulacan State University – College of Law (1st Semester – A.Y. 2018-2019)

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V. Rules on Expenses and Deterioration/Loss

Expenses Possessor in Good Faith Possessor in Bad Faith


Necessary Expenses  Entitled to reimbursement  Entitled to reimbursement
 Right of retention pending full  NO right of retention, must vacate
reimbursement property

Useful Expenses  Entitled to reimbursement of either: No rights


amount spent OR increase in the value
 Right of retention pending full
reimbursement
Allowed to remove ornaments if w/o injury to the
principal
Luxurious Expenses Allowed to remove ornaments if w/o injury to the Allowed to remove ornaments if w/o injury to the
principal principal
Owner can retain the ornament by refunding the Owner can retain the ornament by refunding the
amount spent for the ornament amount spent for the ornament at the time the
owner enters into possession (depreciated value)
Deterioration/Loss No liability unless due to fraudulent intent or Always liable whether before or after service of
negligence after service of judicial summons judicial summons, for any cause, even if fortuitous