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PROPERTY ACCESSION CHART 1: RULES WHEN LANDOWNER (LO)-BUILDER/PLANTER/SOWER (BPS)

MAKES CONSTRUCTIONS OR PLANTINGS OF ANOTHER (OM)

LO-BPS OM
GOOD FAITH GOOD FAITH
LO-BPS can acquire the materials provided there OM is entitled to full payment for value of
is full payment. (447) materials OR OM may remove materials provided
there is no substantial injury to the work done
(447).
BAD FAITH GOOD FAITH
LO-BPS can acquire the materials provided there OM is entitled to full payment for value of
is full payment plus damages (447). materials plus damages OR OM may remove the
materials even if there will be substantial injury
to the work done plus damages (447).
GOOD FAITH BAD FAITH
LO-BPS can acquire the materials without paying OM loses the materials without indemnity and
for the value thereof and will be entitled to will be liable for damages due to defects or
damages due to defective or inferior quality of inferior quality of materials.
materials .
BAD FAITH BAD FAITH
Same as when the parties are in good faith. Same as when the parties are in good faith.

PROPERTY ACCESSION CHART 2: RULES WHEN BPS BUILDS, PLANTS, SOWS ON THE LAND OF ANOTHER
(LM)

LO BPS
GOOD FAITH GOOD FAITH
Option 1: To purchase whatever has been built, To receive indemnity for the necessary, useful
planted, or sown after paying indemnity which and luxurious expenses (if LO wants to
includes necessary expenses, useful expenses, appropriate the
and luxurious expenses (if the LO wants to Luxurious improvements) AND the right of
appropriate the luxurious improvements) retention over the land without any obligation to
pay rent until full payment of indemnity

To remove useful improvements provided it


doesn't cause any injury (part of the right of
retention)

If LO doesn't appropriate luxurious


improvements, BPS can remove the same
provided there is no injury to the principal thing
Option 2: To oblige the BP to buy the land OR the To purchase land at FMV provided its value is not
S to pay the proper rent unless the value of the considerably more than that of building or trees
land is considerably more than that of the
building or trees If BPS cannot pay purchase price of the land or
the S cannot pay the rent, 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, the BPS cannot be
compelled to buy the land. In such case, BPS will
pay reasonable rent if LO doesn't choose option
1.

If BPS cannot pay the rent, LO can eject BPS from


the land.
GOOD FAITH BAD FAITH
Option 1: To acquire whatever has been built, Loses whatever has been built, planted or sown
planted or sown without paying indemnity without indemnity and liable to pay for damages.
EXCEPT necessary expenses for the preservation
of the land and luxurious expenses (should the LO Entitled to reimbursement for necessary
want to appropriate the luxurious improvements) expenses for preservation of the land but no right
plus damages. of retention.

Not Entitled to reimbursement for useful


expenses and cannot remove useful
improvements 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 obtains possession)

If the LO does not want to acquire the luxurious


improvements, the BPS may remove the same
provided it will not cause injury
Option 2: To oblige BP to buy land or S to pay Obliged to pay for land or proper rent and pay for
proper rent plus damages regardless whether the damages regardless whether the value of the
value of the land is considerably more than that land is considerably more than that of the
of the buildings or trees buildings or trees
Option 3: To compel BPS to remove or demolish Obliged to remove or demolish work done at his
work done at the expense of the BPS PLUS expense and pay for damages.
damages
BAD FAITH GOOD FAITH
To pay for whatever has been built, planted or Option 1: If LO acquires whatever has been built,
sown plus damages. planted or sown, BPS is entitled to receive
payment for the value thereof plus damages.

(If LO doesn't acquire whatever has been built,


planted or sown, BPS cannot insist on purchasing
land.)
Option 2: 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 BAD FAITH
Same as when the parties are in good faith. Same as when the parties are in good faith.
PROPERTY ACCESSION CHART 3: RULES WHEN LO, BPS, AND OM ARE 3 DIFFERENT PERSONS

LO BPS OM
GOOD FAITH GOOD FAITH GOOD FAITH
Option 1: To purchase whatever To receive indemnity for the To receive indemnity from BPS
has been built, planted, or sown necessary, useful and luxurious who is primarily liable for
after paying indemnity which expenses (if LO wants to materials.
includes necessary expenses, appropriate the Luxurious
useful expenses, and luxurious improvements) AND the right of If BPS is insolvent, to proceed
expenses (if the LO wants to retention over the land without against LO who is subsidiary
appropriate the luxurious any obligation to pay rent until liable
improvements) full payment of indemnity

To remove useful
improvements provided it
doesn't cause any injury (part of
the right of retention)

If LO doesn't appropriate
luxurious improvements, BPS
can remove the same provided
there is no injury to the
principal thing
Option 2: To oblige the BP to To purchase land at FMV Option 1: To receive indemnity
buy the land OR the S to pay the provided its value is not from BPS only with right of
proper rent unless the value of considerably more than that of retention until full payment. LO
the land is considerably more building or trees is not subsidiary liable
than that of the building or
trees If BPS cannot pay purchase Option 2: To remove materials if
price of the land or the S cannot there will be no injury on
pay the rent, LO can require BPS building or trees and will have a
to remove whatever has been material rent lien against BPS
built, planted or sown. for the payment of value of the
If the value of land is materials
considerably more than that of
the building or trees, the BPS
cannot be compelled to buy the
land. In such case, BPS will pay
reasonable rent if LO doesn't
choose option 1.
If BPS cannot pay the rent, LO
can eject BPS from the land.
GOOD FAITH GOOD FAITH BAD FAITH
Same as above Same as above Whatever is the choice of the
LO, the OM:

1. Loses the materials in favor


of BPS and;
2. Will have no right to receive
indemnity from LO or BPS.
3. Plus, he may be liable for
damages due to defects or
inferior quality of materials.
GOOD FAITH BAD FAITH GOOD FAITH
Option 1: To acquire whatever BPS loses what has been built, To receive payment for the
has been built, planted or sown planted or sown plus liable for value of materials principally
without paying indemnity damages but is entitled to be from BPS; and if BPS is insolvent
EXCEPT necessary expenses for indemnified for necessary and subsidiarily from LO
the preservation of the land and luxurious expenses (should the
luxurious expenses (should the LO want to appropriate
LO want to appropriate the luxurious improvements)
luxurious improvements) plus
damages. BPS has no right of removal
even if removal will not cause
any damage.
Option 2: To oblige BP to buy To buy the land or pay proper To receive payment for
land or S to pay proper rent plus rent and liable to pay damages materials from BPS only
damages to LO.
Option 3: To oblige BPS to To demolish or remove To receive payment for
demolish or remove whatever whatever has been built, materials from BPS only
has been built, planted or planted or sowed and liable for
sowed PLUS damages damages
GOOD FAITH BAD FAITH BAD FAITH
Same above Same above 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 of receive
indemnity for value of materials
from the BPS only. LO is not
subsidiary liable because OM is
in good faith only insofar as BPS
is concerned.

If LO chooses Option 1, OM has


no right of removal even if
there will be no injury or
damage.

If LO chooses Option 2, OM has


right to remove provided there
will be no injury or damage.

(If LO chooses Option 3, to


receive payment for materials
from BPS only)

Liable to pay for damages due


to defects or inferior quality of
the materials.
BAD FAITH GOOD FAITH GOOD FAITH
To acquire whatever has been Option 1: If LO acquires To receive indemnity from BPS
built, planted or sown by paying whatever has been built, who is primarily liable for
indemnity plus liable to pay planted or sown, BPS must be materials.
damages. indemnified the value thereof
plus damages If BPS is insolvent, to proceed
against LO who is subsidiary
Option 2: BPS can remove liable
whatever has been built,
planted, or sown regardless of
whether or not it will cause
injury and will be entitled to
damages.

BPS has no option to acquire or


buy the land
BAD FAITH GOOD FAITH BAD FAITH
Same above Same above No right to recover indemnity
for value of the materials from
BPS nor LO (who ends up
owning the buildings or trees)

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