Torbela vs.

Spouses Rosario
G. R. No. 140528 December 7, 2011
Mangontawar, Nor-Hidaya

Facts: There was this parcel of land owned by the Torbela siblings. They
executed a deed of absolute quitclaim covering said lot in favor of Dr. Rosario.
Thereafter, a TCT was issued in the latter’s name. Subsequently, Dr. Rosario
executed a deed of absolute quitclaim this time in favor of the Torbelas,
acknowledging that he only borrowed the lot and that he is already returning
the same. However, instead of returning the lot, Dr. Rosario used it as
mortgage and obtained a loan from DBP. He used the proceeds of the loan to
construct a building on the lot. Upon fulfilling his obligation with DBP, he
contracted a second loan with PNB and subsequently with Banco Filipino. He
failed to pay his loan so the lot was extrajudicially foreclosed and was sold at a
public auction.

The Torbelas filed an action to recover ownership and possession over the
said lot. They also claim ownership over the improvements made thereon
based on the rules of accession.

Issue: Whether Dr. Rosario is a builder in good faith or in bad faith

Ruling: Dr. Rosario is a builder in bad faith because he knew that the lot was
not his and still constructed a building thereon.

Article 440 of the Civil Code states that the ownership of property gives the
right by accession to everything which is produced thereby, or which is
incorporated or attached thereto, either naturally or artificially.

Applying such article, the building constructed by Dr. Rosario is something that
is attached or incorporated to the lot of the Torbelas and by right of accession,
the latter is presumed to be the owner of such property unless Dr. Rosario can
prove otherwise that he is in good faith.