Summary

Accession Industrial

By Dean Hernando S. Perez, Jr.

Landowner Owner of Materials

A. Good faith
Can acquire the materials provided he pays
for the value thereof.
B. Bad faith
Can acquire the materials provided he pays
the value thereof plus damages.
C. Good faith
Can acquire the materials without paying for
the value thereof and entitled to
consequential damages due to the defects of
the materials.
D. Bad faith
Treat them as if both are in good faith.
A. Good faith
Entitled to receive payment for value of
materials OR may remove the materials only
when there is no injury work done.
B. Good faith
Entitled to payment for value of materials
plus damages, OR
Remove the materials even if there will be
injury to the work done plus damages.
C. Bad faith
Loses the materials completely without
receiving any indemnity.
D. Bad faith
Treat them as if both are in good faith.
 Landowner
A. Good faith
Option (#1) to appropriate or acquire
whatever has been built, planted or sown
after paying indemnity, which includes: (a)
necessary expenses, (b) useful expenses and
(c) luxurious expenses, If landowner wishes
to appropriate the luxurious improvements.
Builder, Planter or Sower
A. Good faith
Entitled to receive indemnity for necessary,
useful & luxurious expenses if the landowner
appropriated the luxurious improvements;
and has a right of retention over the land
without having to pay the rent until the
landowner pays the indemnity.

Can remove useful improvements provided it

does not cause any injury.

If the landowner does not appropriate the

Option (#2) to oblige the builder or planter to
pay the price of the land and the sower to
pay the proper rent the value of the land is
considerably more than that of the building
or trees.
luxurious improvements, he can remove the
same provided there is no injury to the
principal thing.
To purchase the land at fair market value
when the value is not considerably more
than the value of the building or trees. If the
value of the land is considerably more than
the value of the building or trees, he shall pay
reasonable rent instead. The parties shall
agree upon the terms of the lease and in case
of disagreement, the court shall fix the terms
thereof.

If he cannot pay the purchase price of the

land, the landowner can require him to
remove what has been built or planted.

If he cannot pay the rent, the landowner can

B. Good Faith
Option (#1) to acquire whatever has been
built, planted or sown without paying for
indemnity except necessary expenses for the
preservation of the land only and luxurious
ornaments.
eject him from the land.
B. Bad Faith
Loses what has been built, planted or sown,
but entitled for reimbursement for necessary
expenses; no right of retention.
Not entitled to reimbursement for useful
expenses and cannot remove the useful
improvements even if the removal will not
cause any injury.

Not entitled to reimbursement for luxurious

expenses except when landowner acquires
luxurious improvements, the value of which
is the one at the time the landowner enters
possession (based on depreciated value).

Can remove luxurious improvements if it will

not cause injury and landowner does not
want to acquire them.
Option (#2) to compel the builder and planter Must pay the price of the land or the rent
to pay the price of the land and the sower to plus damages.

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 Landowner
pay the proper rent plus damages.
Option (#3) to demand the demolition or
removal of the work at the expense of the
builder, planter and sower plus damages.
C. Bad Faith
To acquire whatever has been built, planted
or sown by paying the indemnity plus
damages.
D. Bad Faith
Treat them as if both are in good faith.
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Builder, Planter or Sower
Must remove and demolish at his expense
and pay damages.
C. Good Faith
If landowner acquires it, he must be
indemnified of the value plus damages.
If NOT, he can remove it even if it will cause
any injury and entitled to damages, but he
cannot insist of purchasing the land.
D. Bad Faith
Treat them as if both are in good faith.
 Landowner
A. Good faith
Option (#1) to acquire
whatever has been built,
planted or sown after paying
indemnity, which includes:
the value of what has been
built, planted or sown plus
the value of the materials.
Option (#2) to oblige the
builder or planter to pay the
price of the land and the
sower to pay the proper rent
the value of the land is
considerably more than that
of the building or trees.
B. Good Faith
Same as A
C. Good Faith
Option (#1) to acquire
whatever has been built,
planted or sown without
paying for indemnity except
necessary expenses for the
preservation of the land only
and luxurious ornaments.
Option (#2) to compel the
builder and planter to pay
the price of the land and the
sower to pay the proper rent
plus damages.
Option (#3) to demand the
demolition or removal of the
work at the expense of the
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Builder, Planter, Sower
A. Good faith
Entitled to receive indemnity
from landowner and has a
right of retention over the
land until the landowner
pays the indemnity.
To purchase the land at fair
market value when the value
is not considerably more
than the value of the building
or trees. If the value of the
land is considerably more
than the value of the building
or trees, he shall pay
reasonable rent instead.
B. Good Faith
Same as A
C. Bad Faith
Loses what has been built,
planted or sown, but entitled
for reimbursement for
necessary expenses; no right
of retention.
Entitled to reimbursement
for luxurious expenses when
landowner acquires luxurious
improvements.
Has no right of removal even
if it will not cause injury.
Must pay the price of the
land or the rent plus
damages.
Must remove.
Owner of Materials
A. Good faith
Entitled to receive payment
for value of materials from
the builder, planter or sower;
if the builder, planter or
sower are insolvent, then
demand indemnity from the
landowner who is subsidiarily
liable; but has no right of
retention against the builder,
planter or sower and moreso
with landowner.
Entitled to receive payment
for value of materials from
the builder, planter or sower
only (not landowner); but has
right of retention OR may
remove the materials only
when there is no injury work
done.
B. Bad faith
Whatever the landowner
chooses, he loses the
materials completely in favor
of the builder, planter and
sower without receiving any
indemnity from any other
party.
C. Bad faith
(since both builder, planter &
sower and owner of
materials are in bad faith,
treat them as if both are in
good faith.)
Entitled to receive indemnity
for value of materials from
the builder, planter or sower
only (not landowner).
He has no right to remove
materials, even if it will not
cause any injury.
He has the right of removal
provided it does not cause
any injury to the property to
which it is attached.
He has liability for damages
to whoever ends up owning
the building for the inferior
 Landowner Builder, Planter, Sower Owner of Materials
builder, planter and sower quality of materials.
plus damages.
D. Bad Faith D. Good Faith D. Good faith
To acquire whatever has If landowner acquires it, he Entitled to receive indemnity
been built, planted or sown must be indemnified of the for value of materials from
by paying the indemnity plus value plus damages. the builder, planter or sower
damages to builder, planter If NOT, he can remove it even principally or from the
or sower. if it will cause any injury and landowner if the builder,
entitled to damages, but he planter or sower is insolvent
cannot insist of purchasing (subsidiarily liability.)
the land.
E. Bad Faith E. Good Faith E. Bad Faith
Same as D Same as D He has no right to receive
indemnity for value of
materials from the builder,
planter & sower nor from
landowner who ends up
owning the building or trees.
F. Bad Faith F. Bad Faith F. Bad Faith
Same as A Same as A Same as A