Maxims in connection with accession industrial
1. The accessory follows the principal.
2. The accessory follows the nature of that to which it relates.
3. What is built upon the land goes with it; or the land is the principal, and whatever is built on it becomes the accessory.
Rule on ownership regarding accession industrial
GR: The owner of the land is the owner of whatever is built, planted or sown on that land, including the improvements or repairs made thereon.
XPNS:
1. When the doer is in good faith the rule is modified.
2. Improvements on the land of one of the spouses at the expense of the conjugal partnership will belong to the partnership or to the spouse who owns the land depending on which of the two properties has a higher value (Art. 120, FC)
NOTE: If the doer is in bad faith, he is entitled only to necessary expenses for the preservation of the land.
Rule if the planter and owner of the land are different
Gathered Fruits
Planter in GF Planter in BF
Planter
Keeps fruits (Art. 544 par 1, NCC) Reimbursed for expenses for production, gathering and preservation (Art. 443, NCC)
Owner
No necessity to reimburse the planter of expenses since the planter retains the fruits.
(Art. 544 par 1, NCC)
Owns fruits provided he pays planter expenses for production, gathering and preservation (Art. 443, NCC)
Standing Crops
Planter in GF Planter in BF
Planter
Reimbursed for expenses,for production, gathering and preservation (Art.443, NCC)
Loses what is built, planted or sown without right to indemnity (Art 449, NCC).
Entitled to reimbursement for the necessary expenses of preservation of the land. (Art. 452, NCC).
Owner
Owns fruits provided he pays planter expenses for production, gathering and preservation (Art.
443, NCC)
Owns fruits (Art. 449, NCC)
Rule when the land owner is the builder, planter or sower
Land Owner and Builder, Planter or Sower Owner of Materials
Good Faith Good Faith
Acquire building etc. after paying indemnity for value of materials. (Art.
447, NCC)
1. Receive indemnity for value of materials; or 2. Remove materials if w/o injury to works, plantings or
constructions (Art. 447, NCC)
Bad Faith Good Faith
Acquire building etc. after paying value of materials AND indemnity for damages, subject to the right of the owner of materials to remove.
(Art. 447, NCC)
1. Be indemnified for value of materials and damages; or 2. Remove materials, w/ or w/o injury and be indemnified for
damages (Art, 447, NCC)
Good Faith Bad Faith
1. Acquire w/o paying indemnity and right to damages (Art 445 and 449, NCC by analogy)
2. Pay necessary expenses for preservation. (Art. 452 & 546, NCC)
1. Lose materials w/o being indemnified and pay damages (Art 445 and 449, NCC by analogy)
2. Recover necessary expenses for preservation of land without the right to retain the thing until the indemnity is paid. (Art. 452 &
546, NCC)
Bad Faith Bad Faith
As though both acted in good faith (in pari delicto) (Art. 453, NCC)
Rule when the land owner is NOT the builder, planter or sower
Land Owner Builder, Planter, Sower and Owner of Materials
Good Faith Good Faith
He can either: (Art. 448, NCC)
1. Acquire improvements after paying indemnity for:
a. Necessary expenses, and
b. Useful expenses which could either be:
a. Original costs of improvements
b. Increase in the value of the whole (Art. 443 & 546, NCC)
2. Sell the land to builder and planter or collect rent from sower unless the value of the land is considerably greater than the building etc., in which case, the builder and planter shall pay rent.
The parties shall agree upon the terms of the lease and in case of disagreement, the court shall fix the terms thereof.
If the Land Owner:
1. Acquires the improvements after paying indemnity, Builder, Planter, or Sower has the right to retain the thing (and cannot be required to pay rent) until indemnity is paid (Art. 546, NCC) . If the useful improvements can be removed without damage to the principal thing, the Builder, Planter or Sower may remove them, unless the person who recovers the possession exercises the other (Art. 547 & 447, NCC).
2. Sells the land, 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
The parties shall agree upon the terms of the lease and in case of disagreement, the court shall fix the terms thereof (Art. 448, NCC).
Good Faith Bad Faith
1. The land owner can either:
a. Acquire improvements without paying indemnity and collect damages (Art. 445 & 449, NCC).
b. Order the demolition of work or restoration to former condition and collect damages in both cases (Art. 450, NCC).
c. Sell the land to builder and planter or rent it to the sower, and collect damages in both cases (Art. 450, NCC).
2. Pay necessary expenses for preservation (Art. 452 & 546, NCC).
1. Lose improvements without right to be indemnified unless the latter sells the land (Art. 449, NCC).
2. Recover necessary expenses for preservation of land without the right to retain the thing until the indemnity is paid (Art. 452 &
546).
3. Pay damages to land owner (Art. 451, NCC).
Bad Faith Good Faith
Acquires improvements after paying indemnity and damages to builder, planter, sower, unless the latter decides to remove (Art.
454,447&443, NCC).
He cannot compel the builder planter or sower to buy the land.
The reason why said article (Art. 447, NCC) applies may be explained as follows:
That if the land owner knew that something was being built, planted or sown on his land by
1. Receive indemnity for improvements and receive damages; or 2. Remove them in any event and receive damages
(Art. 454 & 447, NCC).
another and he did not interpose any objection thereto, it is as if he was the one building, planting or sowing in bad faith on his own land with materials belonging to another, using the owner of the materials as his worker (Rabuya, Property, 2008 Ed.)
Bad Faith Bad Faith
As though both acted in good faith (in pari delicto) (Art. 453, NCC)
Rule when the land owner, builder, planter, sower and owner of materials are different persons
Land Owner Builder, Planter, Sower Owner of Materials
Good Faith Good Faith Good Faith
He shall answer subsidiarily for their value and only in the event that the one who made use of them has no property with which to pay (Art. 455, NCC).
and
He can either: (Art. 448, NCC)
1. Acquire improvements after paying indemnity for:
a. Necessary expenses, and
b. Useful expenses which could either be:
a. Original costs of
improvements
b. Increase in the value of the whole (Art. 546 & 443, NCC) 2. Sell the land to builder and planter or
collect rent from sower unless the value of the land is considerably greater than the building etc., in which case, the builder and planter shall pay rent.
The parties shall agree upon the terms of the lease and in case of disagreement, the court shall fix the terms thereof.
Pay value of materials to its owner (Art. 455, NCC).
and
If the Land Owner:
1. Acquires the improvement, Builder, Planter, or Sower may demand from the landowner the value of the materials and labor (Art 455, NCC).
And he has the right to retain the thing (and cannot be required to pay rent) until indemnity is paid (Art. 546, NCC).
If the useful improvements can be removed without damage to the principal thing, the possessor in good faith may remove them, unless the person who recovers the possession exercises the other (Art. 547 & 447, NCC) 2. Sell the land or rents it, 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.
The parties shall agree upon the terms of the lease and in case of disagreement, the court shall fix the terms thereof (Art.
448, NCC).
1. Collect value of materials primarily from builder, planter, sower, subsidiarily from land owner (Art. 455, NCC). Or
2. Remove the materials only if w/o injury to the work constructed, or without the plantings, constructions or works being destroyed (Art. 447, NCC).
Good Faith Good Faith Bad Faith
Land Owner can either: (Art. 448, NCC) 1. Acquire improvements after paying
indemnity for:
a. Necessary expenses, and
b. Useful expenses which could either be:
a. Original costs of
improvements
b. Increase in the value of the whole (Art. 546 & 443, NCC) 2. Sell the land to builder and planter or
collect rent from sower unless the value of the land is considerably greater than the building etc., in which case, the builder and planter shall pay rent.
The parties shall agree upon the terms of
If the Land Owner:
1. Acquires the improvement, Builder, Planter, or Sower has the right to retain the thing (and cannot be required to pay rent) until indemnity is paid (Art.
546, NCC).
If the useful improvements can be removed without damage to the principal thing, the possessor in good faith may remove them, unless the person who recovers the possession exercises the other (Art. 547, NCC).
2. Sells or rents it, Builder or Planter cannot be obliged to buy the land if its
1. Loses materials without right to indemnity (Art. 449, NCC)
2. Pays damages (Art. 451, NCC)
The builder, planter or sower would be considered merely an agent of the owner of materials.
Therefore, the provisions of Article 449 of the Civil Code will apply by analogy. He is even liable for damages (Rabuya, Property, 2008).
the lease and in case of disagreement, the court shall fix the terms thereof.
Without subsidiary liability for cost of materials
value is considerably more than that of the building or trees.
In such case, he shall pay reasonable rent
The parties shall agree upon the terms of the lease and in case of disagreement, the court shall fix the terms thereof (Art. 448, NCC).
Without indemnity to owner of materials and collects damages from him.
Good Faith Bad Faith Bad Faith
1. Option to:
a. Acquire improvements without paying indemnity and collect damages (Art. 445 & 449, NCC).
b. Order the demolition of work or restoration to former condition and collect damages in both cases (Art.
450, NCC).
c. Sell the land to builder and planter or rent it to the sower, and collect damages in both cases (Art. 450, NCC).
2. Has right to demand damages from both (Art. 451, NCC).
3. Pay necessary expenses for preservation (Art. 452 & 546, NCC).
4. Not subsidiarily liable to the owner of the materials because as to him, the two acted in bad faith. (De Leon, Comments and Cases on Property, 2006 Ed.)
1. Lose improvements without right to be indemnified unless the latter sells the land (Art. 449, NCC).
2. Recover necessary expenses for preservation of land without the right to retain the thing until the indemnity is paid (Art. 452 & 546, NCC).
3. Pay the value of the materials to the owner of the materials.
Since both the owner of the materials and the builder, etc. acted in bad faith, as between them, they are treated as having both acted in good faith (De Leon, 2006)
4. Pay damages to land owner (Art. 451, NCC).
1. Recover value from builder, planter, sower (in pari delicto)
2. If builder, planter, sower acquired improvements, remove the materials only if w/o injury to the work constructed, or without the plantings, constructions or works being destroyed (Art. 447, NCC).
3. No action against land owner and 4. May be liable to the land owner for
damages (Art. 451, NCC)
Bad Faith Bad Faith Bad Faith
Same as though both acted in good faith (in pari delicto)(Art. 453, NCC)
Bad Faith Good Faith Good Faith
1. Acquires improvements after paying indemnity and damages, unless the latter decides to remove (Art. 454, 447 & 443, NCC).
2. Cannot compel builder, planter and sower to buy land.
If he pays the owner of the materials, plants or seeds:
i. He may demand from the landowner the value of the materials and labor (Art 455, NCC) and shall also be obliged to the reparation of damages (Art. 447, NCC) or ii. Remove the materials in any event, with
a right to be indemnified for damages (Art. 454 & 447, NCC)
1. Collect value of materials primarily from builder, planter, sower, subsidiarily from land owner (Art. 455, NCC) or
2. Remove the materials in any event, with a right to be indemnified for damages (Art. 447, NCC)
Bad Faith Bad Faith Good Faith
The owner of the land shall answer subsidiarily for their value and only in the event that the one who made use of them has no property with which to pay (Art. 455, NCC)
and
Land Owner can either: (Art. 448, NCC) 1. Acquire improvements after paying
indemnity for:
a. Necessary expenses, and
Pay value of materials to its owner (Art. 455, NCC)
and
If the Land Owner:
1. Acquires the improvement, Builder, Planter, or Sower may demand from the landowner the value of the materials and labor (Art 455, NCC)
1. Collect value of materials primarily from builder, planter, sower, subsidiarily from land owner (Art. 455, NCC) or
2. Remove the materials in any event, with a right to be indemnified for damages (Art. 447, NCC)
b. Useful expenses which could either be:
a. Original costs of improvements
b. Increase in the value of the whole (Art. 546 & 443, NCC) 2. Sell the land to builder and planter or
collect rent from sower unless the value of the land is considerably greater than the building etc., in which case, the builder and planter shall pay rent.
The parties shall agree upon the terms of the lease and in case of disagreement, the court shall fix the terms thereof.
And he has the right to retain the thing (and cannot be required to pay rent) until indemnity is paid (Art. 546, NCC).
If the useful improvements can be removed without damage to the principal thing, the possessor in good faith may remove them, unless the person who recovers the possession exercises option 2. (Art. 547 & 447, NCC) 2. Sells or rents it, 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.
The parties shall agree upon the terms of the lease and in case of disagreement, the court shall fix the terms thereof (Art.
448, NCC).
Good Faith Bad Faith Good Faith
1. Option to:
a. Acquire improvements without paying indemnity and collect damages (Art. 445 & 449, NCC).
b. Order the demolition of work or restoration to former condition and collect damages in both cases (Art.
450, NCC).
c. Sell the land to builder and planter or rent it to the sower, and collect damages in both cases (Art. 450, NCC).
2. Pay necessary expenses for preservation (Art. 452 & 546, NCC).
3. Subsidiarily liable to owner of materials
1. Lose improvements without right to be indemnified unless the latter sells the land (Art. 449, NCC).
2. Recover necessary expenses for preservation of land without the right to retain the thing until the indemnity is paid (Art. 452 & 546, NCC).
3. Pay value of materials to its owner plus damages (Art. 455, NCC).
4. Pay damages to land owner (Art. 451, NCC).
1. Collect value of materials primarily from builder, planter, sower, subsidiarily from land owner (Art. 455, NCC) or
2. Remove materials in any event if builder, planter, sower.
Bad Faith Good Faith Bad Faith
1. Acquires improvements after paying indemnity and damages, unless the latter decides to remove (Art. 454, 447 & 443, NCC).
2. Cannot compel builder, planter and sower to buy land.
If he pays the owner of the materials, plants or seeds:
i. He may demand from the landowner the value of the materials and labor (Art 455, NCC) and shall also be obliged to the reparation of damages (Art. 447, NCC) or ii. Remove the materials in any event, with
a right to be indemnified for damages (Art. 454 & 447, NCC)
1. Loses materials without right to indemnity (Art. 449, NCC)
2. Pays damages (Art. 451, NCC)
The builder, planter or sower would be considered merely an agent of the owner of materials.
Therefore, the provisions of Article 449 of the Civil Code will apply by analogy. He is even liable for damages (Rabuya, Property, 2008).
When there is good faith on the part of both the owner of the land and the builder, planter or sower
The owner of the land only has the options of paying the value of the building or selling the land. He cannot refuse either to pay or sell and compel the owner of the building to remove it from the land where it is erected. He is entitled to such removal only when, after having chosen to sell the land, the other party fails to pay for the same (Ignacio v. Hilario, 76 Phil 606, 1946).
The landowner upon demand for payment CANNOT automatically become the owner of the improvement for failure of the builder to pay for the value of the land.There is nothing in Arts. 448 and 546 which would justify the conclusion that upon failure of the builder to pay the value of the land, when such is demanded by the landowner, the land owner becomes automatically the owner of the improvement under Art. 445.
When the land’s value is considerably more than the improvement,the landowner cannot compel the builder to buy the land. In such event, a “forced lease” is created and the court shall fix the terms thereof in case the parties disagree thereon (Depra v.
Dumalo, No. L-57348, May 16, 1985).
Rule when landowner sells the land to a 3rd person who is in bad faith
Builder must go against the 3rd person but if the latter has paid the land owner, a case against such land owner may still be filed by the builder and the 3rd person may file a 3rd party complaint against land owner.
Recourse left to the parties where the builder fails to pay the value of the land.
The Civil Code is silent on this point. Guidance may be had from these decisions:
1. In Miranda v. Fadullon, G.R. No. L-8220, October 29, 1955, the builder might be made to pay rental only, leave things as they are, and assume the relation of lessor and lessee;
2. In Ignacio v. Hilario, G.R. L-175, April 30, 1946, owner of the land may have the improvement removed; or
3. In Bernardo v. Bataclan, G.R. No. L-44606, November 28, 1938, the land and the improvement may be sold in a public auction, applying the proceeds first to the payments of the value of the land, and the excess if any, to be delivered to the owner of the house in payment thereof (Filipinas College Inc.
v. Timbang, G.R. No. L-12812, September 29, 1959).
Q: Felix cultivated a parcel of land and planted sugar cane, believing it to be his own. When the crop was eight months old, and harvestable after two more months, a resurvey of the land showed that it really belonged to Fred. What are the options available to Fred? (2000 Bar Question)
A: As to the pending crops planted by Felix in good faith, Fred has the option of allowing Felix to continue the cultivation and to harvest the crops, or to continue the cultivation and harvest the crops himself. In the latter option, however, Felix shall have the right to a part of the expenses of cultivation and to a part of the net harvest, both in proportion to the time of possession (Art. 545).
Q: Because of confusion as to the boundaries of the adjoining lots that they bought from the same subdivision company, X constructed a house on the adjoining lot of Y in the honest belief that it is the land that he bought from the subdivision company.
What are the respective rights of X and Y with respect to X's house?
A: The rights of Y, as owner of the lot, and of X, as builder of a house thereon, are governed by Art. 448 which grants to Y the right to choose between two remedies: (a) appropriate the house by indemnifying X for its value plus whatever necessary expenses the latter may have incurred for the preservation of the land, or (b) compel X to buy the land if the price of the land is not considerably more than the value of the house. If it is, then X cannot be obliged
A: The rights of Y, as owner of the lot, and of X, as builder of a house thereon, are governed by Art. 448 which grants to Y the right to choose between two remedies: (a) appropriate the house by indemnifying X for its value plus whatever necessary expenses the latter may have incurred for the preservation of the land, or (b) compel X to buy the land if the price of the land is not considerably more than the value of the house. If it is, then X cannot be obliged