Ateneo de Manila School of Law

Property Accession Charts (revised June 2012)

Atty. Francis Ampil
I.
Rules when landowner (LO) builder/planter/sower (BPS) makes constructions or
plantings with materials of another (OM):
Landowner Builder/Planter/Sower (BPS)
A. Good Faith
LO-BPS can acquire the materials provided
there is full payment.

Owner of Materials (OM)

Good Faith
OM is entitled to full payment for value of
materials or OM may remove materials
provided there is no substantial injury to work
done.

B. Good Faith
LO-BPS can acquire materials without paying
for the value thereof and will be entitled to
damages due to defects or inferior quality of
materials.

Bad Faith
OM loses materials without indemnity and will
be liable for damages due to defects or inferior
quality of materials.

C. Bad Faith
LO-BPS can acquire the materials provided
there is full payment plus damages.

Good Faith
OM is entitled to full payment for value of
materials plus damages or OM may remove
materials even if there will be substantial
injury to work done plus damages.

D. Bad Faith
Same as A.

Bad Faith
Same as A.

II. Rules when the builder/planter/sower (BPS) builds, plants, or sows on the land of another
(LO):
Landowner (LO)
A. Good Faith
Option 1: To purchase whatever has been built,
planted or sown after paying indemnity which
includes necessary expenses, useful expenses
and luxurious expenses (if the LO wants to
appropriate the luxurious improvements).

Builder/Planter/Sower (BPS)
Good Faith
To receive indemnity for necessary, useful and
luxurious expenses (if LO wants to appropriate
the luxurious improvements) with right of
retention over the land without obligation to
pay rent until full payment of indemnity.
To remove useful improvements provided it
does not cause any injury (this is part of right
of retention).

Option 2: To oblige the BP to buy the land or

the S to pay the proper rent unless the value of
the land is considerably more than that of the
building or trees.

If LO does not appropriate luxurious

improvements, BPS can remove the same
provided there is no injury to the principal
thing (the land or building).
To purchase land at fair market value when
value is not considerably more than that of the
building or trees.
If BPS cannot pay purchase price of the land,
LO can require BPS to remove whatever has
been built, planted or sown.
If the value of land is considerably more than
that of the building or trees, BPS cannot be
compelled to buy the land. In such case, BPS
will pay reasonable rent if LO does not choose
Option 1.

B. Good Faith
Option 1: To acquire whatever has been built,
planted or sown without paying indemnity
except necessary expenses for preservation of
land and luxurious expenses (should LO want
to acquire luxurious improvements) plus
damages.

If BPS cannot pay the rent, LO can eject BPS

from the land.
Bad Faith
Loses whatever has been built, planted or sown
without indemnity and liable to pay damages.
Entitled to reimbursement for necessary
expenses for preservation of land but no right
of retention.
Not entitled to reimbursement for useful
expenses and cannot remove even if removal
will not cause injury.
Not entitled to reimbursement for luxurious
expenses except when LO wants to acquire
luxurious improvements (value of which will
be the one at the time LO enters into
possession).

Option 2: To oblige BP to buy land or S to pay

proper rent plus damages.
Option 3: To compel BPS to remove or
demolish work done plus damages.

Entitled to remove luxurious improvements if

it will not cause injury and LO does not want
to acquire them.
Obliged to pay for land or proper rent and pay
damages.
Obliged to remove or demolish work done at
his expense and pay damages.

C. Bad Faith
To acquire whatever has been built, planted or
sown by paying indemnity plus damages.

Good Faith
If LO acquires whatever has been built, planted
or sown, BPS must be indemnified the value
thereof plus damages.
(If LO does not acquire whatever has been
built, planted or sown, BPS cannot insist on
purchasing land).

D. Bad Faith
Same as A.

BPS can remove whatever has been built,

planted or sown regardless of whether or not it
will cause injury and will be entitled to
damages.
Bad Faith
Same as A.

III. Rules when landowner (LO), builder/planter/sower (BPS) and owner of the materials (OM)
are 3 different persons:
Landowner (LO)
Builder/Planter/Sower (BPS)
Owner of the Materials (OM)
A. Good Faith
Good Faith
Good Faith
Option 1: To acquire whatever To receive indemnity from LO To receive indemnity from
has been built, planted, or
with right of retention over
BPS who is primarily liable
sown provided there is
land until full payment.
for materials; if BPS is
payment of indemnity (which
insolvent, to proceed against
includes value of what has
LO who is subsidiarily liable
been built, planted or sown
with no right of retention.
plus value of materials used).
Option 2: To oblige BP to buy
land or S to pay proper rent
unless value of land is
considerably more than that of
building or trees.

To buy land or to pay proper

rent.

To receive indemnity from

BPS only (LO is not
subsidiarily liable) with right
of retention until full payment
and will have material rent
lien against against BPS for
payment of value of materials
or
to remove materials if there
will be no injury building or
trees.

B. Good Faith
Same as A.

Good Faith
Same as A.

Bad Faith
Whatever is the choice of LO,
the OM:
1. loses the materials in favor
of BPS and
2. will have no right to receive
indemnity from BPS nor LO.

C. Good Faith
Option 1: To acquire whatever
has been built, planted or
sown without paying
indemnity except for
preservation of land and
luxurious expenses (should
LO want to acquire luxurious
improvements) plus damages.

Bad Faith
BPS loses what has been built,
planted or sown plus liable for
damages but is entitled to be
indemnified for necessary
expenses for preservation of
land and luxurious expenses
(should LO want to acquire
luxurious improvements) and
has no right of removal even if
removal will not cause
damage.

Bad Faith
(Since both BPS and OM are
in bad faith, treat them both as
if they are in good faith).

Option 2: To oblige BP to buy

the land or S to pay proper
rent plus damages.

To buy the land or pay proper

rent and liable to pay damages
to LO.

If LO chooses Option 1, OM
has no right to remove
materials even if there will be
no injury or damage. If LO
chooses Option 2, OM has
right of removal provided
there will be no injury or
damage.

Option 3: To oblige BPS to

demolish or remove what has
been built, planted or sowed
plus damages.

To demolish or remove what

has been built, planted or
sowed and liable for damages.

Liable to pay for damages due

to defects or inferior quality of
materials.

Whatever is the choice of the

LO, OM has the right to
receive indemnity for value of
materials from BPS only (LO
has no subsidiary liability for
value of materials because
OM is considered in good
faith only insofar as BPS is
concerned).

D. Bad Faith
To acquire what has been
built, planted, or sown by
paying indemnity plus liable
to pay damages.

Good Faith
Good Faith
To receive indemnity from LO To receive indemnity for value
plus damages.
of materials principally from
BPS and in case BPS is
insolvent, subsidiarily from
LO.

E. Bad Faith
Same as D.

Good Faith
Same as D.

Bad Faith
No right to receive indemnity
for value of materials from
BPS nor LO (who ends up
owning building or trees).