Ateneo De Manila University — School of Law Property Accession Chars (revised October 2014) Ait. Francis Joseph H. Ampil 1 Rules when landowner (LO) — builder/planter/sower (BPS) makes constructions or plantings with materials of another (OM): ts Tandownes— Bullderlanier Somer CO-BPS) Cwnez of Materials (OM) i ‘A. Good Faith Good Faith TLO-BPS can acquire the materials provided there is | OM is entit’ed to full payment o OM may full payment. remove the materials provided there is no substantial injury to work done. . B. Good Faith Bad Faith f LO-BPS can acquire the materials for free and will | OM loses the materials and will be liable be entitled to damages due to defects or inferior | for damages due to defects or inferior quality of the materials. quality of the materials. C. Bad Faith : ‘Good Faith LO-BPS can acquire the materials provided there is | OM is enitled to “ull payment Tor the § full payment plus damages. ‘materials plus damages or OM may remove the materials even if ther> is substantial injury to the work done plus damages. — — | Same as A. | Semeas A. LL. Rules when builder/planter/sower (BPS) builds, plants or sows on the land of another (Loy: Landowner (LO) ‘Builder/Planter/Sower (BPS) ‘A. Good Faith Good Faith Option 1: To acquire whatever has been built, | To receive payment for the value of the land planted or sown and payment of the necessary | and necessary, useful and luxurious expenses expenses, useful expenses and luxurious | (if LO wants to get luxurious improvements) 3 expenses (if the LO wants to get the luxurious | with right of retention without any obligation to improvements. pay rent until fll payment. ‘To remove the usefil improvements provided it does not eause any injury (his is part of right | of retention). IF LO does not get the luxurious improvements, BPS can remov-; the same provided there is ne injury to the land cr the building. Option 2 To oblige the BP to buy the land or | To purchase land a far market value provided the S to pay rent unless the value ofthe land is its value is not considerably more than that oF considerably more than that of the building or | the building or ces trees If BP cannot pay purchase price ofthe land or the S cannot pay the ent, LO can require BPS to remove whatever has beea built, planted or Af the value of land is considerably more than that of the building or trees, BPS cannot be compellea to buy the land. In such case, BPS will pay reasonable nent. eeIf BPS cannot pay the rent, LO can eject BPS from the land. B. Good Faith mS Bad Faith Option 1: To acquire whatever has been built, | Loses whatever has been built, planted or sown Planted or sown without paying forthe land but | and liable to pay damages. must pay necessary expenses and luxurious expenses (iF LO wants to get the luxurious | Entitled to payment for necessary expenses for improvements) plus damages. preservation without right of retention Not entitled to payment for useful expenses and. cannot remove even if removal will not cause injury. If LO wants luxurious improvements, BPS is ‘entitled to payment. The value of the luxurious improvements will be as of the date LO obtains possession. If LO does not want luxurious improvements, BPS may remove luxurious improvements ‘will not cause injury. ; Option 2; To oblige BP to buy land or Sto pay | Obliged to pay Tor land or to pay rent plus rent plus damages regardless whether the value | damages regardless whether the vaiue of the cof the land is considerably more than that ofthe | land is considerably more than that of the building or the trees. building or the trees. Option 3: To compel BPS to remove or | Obliged fo remove or demolish work done plus demolish work done plus damages. damages, © Bad Faith Good Faith ‘To pay for whatever has been built, planted or | Option 1: To reecive payment for whatever has sown plus damages. been built, planted or sown plus damages. Option 2: To remove whatever has been built, planted or sown even iit will cause injury plus damages. [BPS has no option to acquire or buy the land D. Bad Faith Bad Faith Same as A, Same as A, II Rules when landowner (LO), builder/planter/sower (BPS) and owner of tho mate:ils (OM) are 3 different persons: Tandowner (LO) Builder/Planter/Sower (BPS)_[ Owner of the Materiais (OM) ‘A. Good faith Good Faith Good Faith i Option 1: To acquire [To receive payment for the | To receive payment irom BPS whatever has been built, | value of the land and | who is primarily liable for Planted or sown and payment | necessary, useful _and | materials, if BPS is insolvent, of the necessary expenses, | luxurious’ expenses (if LO | to proceed against LO who is useful expenses and luxurious | wants to get luxurious | subsidiarly liable with no expenses (if the LO wants to | improvements) with right of | right of rention. get the luxurious | retention without any improvements). obligation to pay rent until full payment, |To remove the useful improvements provided it does rot cause any injury (this is part of right of retention), If LO does mot get the luxurious improvements, BPS ‘can remove the same provided there is no injury tothe land or the building, ‘Option 2: To oblige the BP to buy the land or the S to pay rent unless the value of the land is considerably more than that of the building or trees. To purchase land at fair market value provided its value is not considerably more than that of the building or trees, If BP cannot pay purchase price of the land or the S cannot pay the rent, LO can requite 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 BPS cannot pay the rent, LO ccan eject BPS from the land. To receive payment from BPS only with right of retention ‘and material rent lien until full eyment. LO is not B. Good Faith ‘Good Faith Bad Faith Same as A. ‘Same as A. ‘Whatever is the choice of LO, the OM will lose materials ‘without payment plus liable for damages. C. Good Faith Bad Faith Good Faith ‘Option 1: To acquire whatever has been built, planted or sown for free except for necessary expenses and luxurious expenses (if LO ‘wants to acquire luxurious improvements) plus damages. BPS will lose whatever has ‘been built, planted or sown but is entitled to be paid for necessary expenses and luxurious expenses (if LO ‘wants to acquire luxurious improvements) plus liable to pay damages. BPS has no right of removal ‘even if removal will not cause injury. To receive payment for value ‘of materials principally from BPS; and if BPS is insolvent, subsidiarly from LO. Option 2: To oblige BP to buy the land oF S to pay rent plus damages. To buy the land oF pay rent and liable to pay damages. To receive payment for materials from BPS cnly. ‘Option 3: To oblige BPS to ‘demolish or remove whatever hhas been built, planted or sowed plus damages. ‘To demolish or remove what hhas been built, planted or sowed and liable for damages. Toreceive payment for materials from BPS only." D. Good Faith Bad Faith Bad Faith ‘Same as C. Same as C ‘Since both BPS and OM are in bad faith, treat them both as if they are in good faith, ‘Whatever is the choice of the LO, OM has right to receive payment for materials from BPS only (LO has no subsidiary lability because OM is in good faith only insofar as BPS is concerned). If LO chooses option 1, OM has no right to remove materials even if there will be 10 injury. I£LO chooses option 2, OM has right of removal provided ‘there will be no injury’ FLO chooses option 3, OM is liable to pay damages due to defects or inferior quality of ‘materials E, Bad Faith ‘Good Faith (Good Faith To pay for whatever has been built, planted or sown plus liable to pay damages. To receive payment for ‘whatever has been built, planted or sown plus damages. To receive payment for value ‘of materials principally from ‘BPS; and if BPS is insolvent, subsidiarly from LO. F, Bad Faith Good Faith ‘Bad Faith Same as E Same as E. No righteto receive payment for materials from BPS nor LO Gavho ends up owning the tuildings or trees).