PROPERTY Q&A

1. When does the builder in good faith ceases his right of retention?
– In Bernardo v. Bataclan, the court held that when the builder failed to pay
for the land, he lost his right of retention.

2. Based on Art. 448, what is the difference in the option given the landowner
when exercising right against BPS?
– LO is entitled to an option. He is allowed to:
1. appropriate for himself the thing built upon payment of the proper
indemnity; or
2. compel the builder to buy the land upon which the thing has been
built, unless the value of the land be considerably more than that the
value of the thing built.

3. What is the difference between necessary and useful expenses?

– Necessary Expenses - made for the preservation of the property or
without which such, the thing will be lost or deteriorated
– Useful Expenses - adds value to the property

4. What does good faith mean?

– Good faith is if BPS thought that the land was his. If the landowner does not
know that somebody was building on his land or even if he did know, he
expressed objection.

5. What is the relationship of the LO and the BPS in Art. 448?

– Both are in good faith. LO did not know that somebody was building on his
land and expressed his objection, while BPS thought that the land he was
building on was his.

6. How is Article 449 applied as compared to Article 443?

– 449: does not apply to gathered crops.
– 443: applies to gathered crops.

7. What are the rights of the LO in good faith and when BPS in bad faith?
IF BPS IN BAD FAITH
1. [Loss of object without indemnity except right to reimbursement of
necessary expenses already incurred for the preservation of the land.
(Arts. 449,452)

IF LO IN GF
 1. Demand demolition of the work, or removal of the plants or crops.
2. Compel BP to pay for the price of the land (regardless of it being
considerably higher than the value of the work; difference from Art 448),
or S to pay proper rent (Art. 450)
3. Entitled for damages in all options provided (Art. 451 )]

1. Retain without payment;

2. Demand demolition or removal;
3. Compel BP to buy the land.
(with damages in all cases)

8. What is the main difference between 448 and 450 in having the BP buy the
LO’s land?
– The price of the land is no longer considered in Art 450. The BP could be
compelled to buy the land whether it is considerably higher in value from
the building or not.

9. Does alluvial deposit automatically form part of the registered land with
Torrens Title? Why or why not?
– No, the riparian owner must register the deposits of alluvion to the
Registry of Deeds. Although the deposits are automatically owned by the
riparian owner, it can be subject to prescription because the governing law
is NCC and not the land registration law.

10. What are the requisites of Alluvion?

1. The deposit must be gradual and imperceptive;
2. Accretion results from exclusive work of nature;
3. Land where accretion takes place must be adjacent to the bank of river.

11. Can the BPS remove the building if the LO is in bad faith? Why or why not?
– Yes, in case the LO is in bad faith, the BPS has the priority option of
removing the building regardless of its effect.

12. Who are the parties in Art 445?

1. Landowner;
2. BPS
3. Owner of the Materials

13. When can the builder demand reimbursement from the LO?
– Only if the landowner profits by the accession, and NOT when he does not
choose to appropriate the construction for himself.

14. At what instance is a material owner in BF allowed to collect reimbursement?

– When the BPS is in Bad Faith.