Section 2 – Right of Accession with Respect to Immovable Property – Accession Continua

ACCESSION INDUSTRIAL = happens by : (governed by Articles 445 – 456 of the Civil Code)

a. Building
b. Planting
c. Sowing

Good Faith – With reference to the landowner (LO) or owner of materials (OM):
= he is deemed possessor in good faith who is not aware that there exists in his title or mode of acquisition any flaw which invalidates it. (Article 526 par
1, by analogy);
= he is in good faith if he did not know that he had no right to such land or materials.
= the owner of the land or materials is in good faith if he did not know that another was using his land or his materials; or granting that he did know, if he
informed the user of the ownership thereof and made necessary prohibition;
Good Faith - with reference to the builder, planter, or sower (BPS):
= BPS is in good faith if did not know that he had no right to such land or materials;

Good faith is always presumed, under Article 527, and he who alleges bad faith has the burden of proving such bad faith.

Bad Faith – with reference to the landowner or owner of materials:

= it is understood that there is bad faith on the part of the landowner whenever that act was done with his knowledge and without opposition (Art 453,
par 2);
= the landowner or owner of the materials would be in bad faith if such land or materials were used by another in his presence or with his knowledge
and forbearance and without the opposition in his part;
= or the LO or OM is in bad faith if he allows another to use the land or materials, as the case may be, without informing him of the ownership thereof;

Bad Faith – with reference to the builder, planter or sower (BPS):

= the BPS is in bad faith if he makes use of the land which he knows belong to another;
= the BPS is in bad faith if he knew that he had no right to make use of such materials

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MATRIX OF ACCESSION INDUSTRIAL:
Articles 445 – 456 of the Civil Code
Legend: LO = Landowner
BPS = Builder, Planter, or Sower
OM = Owner of Materials
(1) Presumption of ownership of accessory:
Article 445: Whatever is built, planted or sown on the land of another and the improvements or repairs made thereon, belong to the owner of the land,
subject to the provisions of the following articles.
(2) Presumptions that works, sowing planting were made by the landowner and at his expense
Article 446: All works, sowing, and planting are presumed made by the owner and at his expense, unless the contrary is proved.

LANDOWNER (LO) BUILDER,PLANTER, SOWER (BPS) OWNER OF MATERIALS (OM)

RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS
A. Rules when landowner constructs or plants on his land with materials of another: Article 447
Article 447. The owner of the land who makes thereon, personally or through another, plantings, constructions or works with the materials of another, shall
pay their value; and if he acted in bad faith, he shall also be obliged to the reparation of damages. The owner of the materials shall have the
right to remove them only in case he can do so without injury to the work constructed, or without the plantings, constructions or works being
destroyed. However, if the landowner acted in bad faith, the owner of the materials may remove them in any event, with a right to be
indemnified for damages.
Note: Indemnification for damages shall comprehend not only the value of the loss suffered but also that of the profits which the oblige failed to
realized;
(1) LO/BPS = in a. Becomes the a. Must pay not only the a. Right to
Bad Faith (BF); owner of the value of the material reimbursement of
OM = in GF materials (right but also obliged to the the value of
of appropriation reparation of materials plus
of the materials); damages in case OM damages, in case he
Except: When chose not to remove chooses not to
the OM decides the materials. remove the
to remove the materials
materials b. Entitled to absolute
whether or not right of removal of

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 LANDOWNER (LO) BUILDER,PLANTER, SOWER (BPS) OWNER OF MATERIALS (OM)
RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS
destruction the materials
would be whether or not
caused. In this substantial injury is
case, the caused; plus
materials would damages;
still belong to (ownership of
the owner of materials still retains
said materials to him)
who in addition
will still be
entitled to
damages
(2) LO/BPS = in BF By analogy: Art. 453, par. 1: If there was bad faith, not only on the part of the person who built, planted or sowed on the land of another,
OM = in BF but also on the part of the owner of such land, the right of one and the other shall be the same as though both had acted in good faith.
In such a case, the following rules shall apply:
a. Becomes the a. Must pay for the value a. Shall be paid for the
owner of the of the materials value of the materials
materials (right (right of
of appropriation reimbursement) if he
of the materials); chose not to remove
Except: when the materials
they can be b. Limited right of
removed removal, ie.
without May remove the
destruction to materials provided it
the work made will not cause injury
or to the plants. to the work
In such a case, constructed, or
OM can remove without the plantings,
them. construction or works
being destroyed.
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 LANDOWNER (LO) BUILDER,PLANTER, SOWER (BPS) OWNER OF MATERIALS (OM)
RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS
B. Rules when BPS (builder, planter or sower) builds, plants or sows on the land of another
Article 448. The owner of the land on which anything has been built, sown or planted in good faith, shall have the right to appropriate as his own the works,
sowing or planting, after payment of indemnity provided for in Articles 546 and 548, or to oblige the one who built or planted to pay the price of
the land, and the one who sowed, the proper rent. However, the builder or planter cannot be oblige to buy the land if its value is considerably
more than that of the building or trees. In such case, he shall pay reasonable rent, if the owner of the land does not choose to appropriate the
building or trees after proper indemnity. The parties shall agree upon the terms of the lease and in case of disagreement, the court shall fix the
terms thereof.
a. Article 546: Necessary expenses shall be refunded to every possessor, but only the possessor in good faith may retain the thing until he has been
reimbursed therefor.
b. Article 548: Expenses for pure luxury or mere pleasure shall not be refunded to the possessor in good faith; but he may remove the ornaments with which
he has embellished the principal thing if it suffers no injury thereby, and if his successor in the possession does not prefer to refund the amount expended.
Note: Indemnities to be given:
a. Necessary expenses – are those made for the preservation of the thing or those without which the thing would deteriorate or be lost such as those
incurred for cultivation, production, and upkeep. Ordinary repairs are those required by the wear and tear due to the natura l use of the thing, and are
indispensable for its preservation
b. Useful expenses – are those that augment the income of the thing upon which they are spent or add value to the property
c. Luxurious expenses – are those unnecessary expenses such as ornaments embellished upon the property.
Note: Since the choice given the LO is confined to either the appropriation or compulsory selling, he has no right of removal or demolition,
unless after having selected a compulsory sale, the builder fails to pay for the land
Remedies if option exercised was compulsory selling and builder fails to pay:
a. Leave things as they are and assume relation of lessor and lessee; pay rents; or
b. Demolish what has been built, sown or planted; or
c. Consider price of land as an ordinary money debt of the builder. Therefore, he may enforce payment thru and ordinary action for the
recovery of a money debt (levy and execution)

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 LANDOWNER (LO) BUILDER,PLANTER, SOWER (BPS) OWNER OF MATERIALS (OM)
RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS
(1) LO = in GF; Land Owner has
BPS = in GF; two (2) options:
This rule also a. To appropriate a. Has to pay indemnity if a. Right to a. To pay proper
applies if both as his own the chooses to appropriate reimbursement rent in case the
the LO and BPS works, sowing as own the works, of necessary LO chooses to
is in Bad Faith or planting after sowing or planting and useful appropriate
(Art. 453) payment of made on his land expenses whatever is
indemnity; incurred for built, planted or
OR the sown on his
b. Oblige the preservation of land. (The terms
builder or the property of lease shall be
planter to pay b. Right of agreed upon by
the value of the Retention of the parties, in
land; or the ownership of case of
sower, the whatever is disagreement,
proper rent (in built, planted the court shall
case LO chose or sown on the fix the terms.)
not to land, until
appropriate) payment of
However: Cannot indemnity by b. Must pay for
oblige the builder the LO (if LO the value of the
or planter to buy chooses to land if he
the land if the value appropriate) accepts the
of the land is c. May remove offer of the LO
considerably more the ornaments to sell the land;
than the value of with which he If BP fails to pay
the building or has the agreed
trees; embellished price, he will
Otherwise, proper the principal lose his right of
rent must be paid; thing if it retention and
(The terms of lease suffers no LO shall be
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 LANDOWNER (LO) BUILDER,PLANTER, SOWER (BPS) OWNER OF MATERIALS (OM)
RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS
shall be agreed injury thereby, entitled to
upon by the parties, and if his removal of
in case of successor in improvement
disagreement, the the possession (Art. 450).
court shall fix the does not prefer
terms.) to refund the
amount
expended.
d. Cannot be
obliged to buy
the land if the
value of the
land is
considerably
more than the
value of the
building or
trees.
Article 449. He who builds, plants or sows in bad faith on the land of another, loses what is built, planted or sown without right of indemnity.

Article 450. The owner of the land on which anything has been built, planted or sown in bad faith may demand the demolition of the works, or that the
planting or sowing be removed, in order to replace things in their former condition at the expense of the person who built, planted or sowed; or
he may compel the builder or planter to pay the price of the land, and the sower the proper rent.

Article 451. In the cases of the two preceding articles, the landowner is entitled to damages from the builder, planter, or sower.

Article 452. The builder, planter or sower in bad faith is entitled to reimbursement for the necessary expenses for the preservation of the land.

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 LANDOWNER (LO) BUILDER,PLANTER, SOWER (BPS) OWNER OF MATERIALS (OM)
RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS
(2) LO = in GF; a. Right of a. Pay for the necessary a. Loses whatever a. Pay for the
BPS = in BF appropriation, and useful expenses is built, planted expenses
i.e. he becomes for the preservation of or sown on the incurred in case
the owner of the land incurred by land of another the land owner
whatever is the BPS in bad faith without right chose to
built, planted or (Art. 452) to indemnity demolish or
sown on his (Art. 449) remove
land, without b. He is entitled to whatever is
paying reimbursement built or
indemnity for its for the planted/sown
value (Art 449) necessary and on his land in
b. May demand useful expenses order to replace
the demolition for the things their
of the work, or preservation of former
that the the land (Art. conditions (Art
planting or 452) 450)
sowing be b. If the LO
removed in compels the
order to replace BPS to buy the
things in their land, the latter
former must pay for
condition at the the value of the
expense of the land whether or
BPS (Art. 450) not the it is
c. May compel the more than the
BP to pay for value of the
the value of the building or
land whether or trees; the sower
not it is must pay for
considerably the proper rent
more than the (Art. 450)
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 LANDOWNER (LO) BUILDER,PLANTER, SOWER (BPS) OWNER OF MATERIALS (OM)
RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS
value of the c. In all of the
building or above
trees; and circumstances,
sower proper the BPS shall be
rent. (Art. 450) liable for
d. In all of the damages.
above
circumstances,
the LO shall be
entitled to
damages from
the BPS(Art
451)
Article 454. When the land owner acted in bad faith and the builder, planter or sower proceeded in good faith, the provisions of Article 447 shall apply.
a. Article 447. The owner of the land who makes thereon, personally or through another, plantings, constructions or works with the materials of another,
shall pay their value; and if he acted in bad faith, he shall also be obliged to the reparation of damages. The owner of the materials shall have the right to
remove them only in case he can do so without injury to the work constructed, or without the plantings, constructions or works being destroyed. However,
if the landowner acted in bad faith, the owner of the materials may remove them in any event, with a right to be indemnified for damages.
(3) LO = in BF; a. Becomes the b. Must pay not only the a. Right to
BPS = in GF owner of the value of what is built, reimbursemen
improvements planted or sown but t of the value
(right of also obliged to the of the building
appropriation of reparation of or trees or
whatever is built, damages in case BPS plants plus
planted or chose not to remove damages, in
sown); the buildings or case he
Except: When trees/plants. chooses not to
the BPS decides remove the
to remove the materials
improvements b. Entitled to
whether or not absolute right

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 LANDOWNER (LO) BUILDER,PLANTER, SOWER (BPS) OWNER OF MATERIALS (OM)
RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS
destruction of removal of
would be the
caused. In this improvements
case, the whether or not
improvements substantial
would still injury is
belong to the caused; plus
BPS who in damages;
addition will still (ownership of
be entitled to improvements
damages still retains to
him)
C. Rules when BPS (builder, planter or sower) builds, plants or sows on the land of another using the materials of a third
person
Article 455. If the materials, plants or seeds belong to a third person who has not acted in bad faith, the owner of the land shall answer subsidiarily for
their value and only in the event that the one who made use of them has no property with which to pay.
This provision shall not apply if the owner makes use of the right granted by Art. 450. If the owner of the materials, plants or seeds has
been paid by the builder , the later may demand from the landowner the value of the materials and labor.

(1) LO =in GF Apply the Rules in Art. 448, item 1 of this Matrix Apply the Rules in Art. 448, item 1 of
BPS = in GF Additional Rights and Obligation of the LO: this Matrix
OM = in GF 1. Subsidiarily liable for the value of the Additional Rights and Obligation of the
materials to OM in the event that the BPS is BPS:
insolvent. 1. Principally liable to the OM; since he a. Entitled to
2. The landowner can only make use of the was the first to use the materials; reimbursement from
materials if he appropriates the 2. If BPS is insolvent, LO shall be the BPS, principally;
construction; (LO subsidiarily liable) subsidiarily liable, provided the or
3. If he compels the BPS to purchase the land; latter chose to use the materials; b. Can go after the LO if
or to demolish the construction, the 3. If the BPS pays the OM, BPS may the BPS is insolvent
landowner does not make use of the demand from landowner the value and LO uses the
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 LANDOWNER (LO) BUILDER,PLANTER, SOWER (BPS) OWNER OF MATERIALS (OM)
RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS
materials, thus he cannot be made of the materials and labor (provided materials
subsidiarily liable to the OM for the value LO did not appropriate the materials
thereof; because he did not profit from the
4. If the BPS pays the OM, BPS may demand accession)
from landowner the value of the materials
and labor (provided LO did not appropriate
the materials because he did not profit from
the accession)
(2) LO = in GF Note: As between BPS and OM since they are both in bad faith, good faith must
BPS = in BF govern. Hence:
OM = in BF a. Right of a. Pay for the necessary a. Becomes the a. Must reimburse a. Right to
appropriation, and useful expenses owner of the OM for the reimbursement of
i.e. he becomes for the preservation of materials, if he value of the the value of
the owner of the land incurred by pays for their materials if OM materials, in case he
whatever is the BPS in bad faith value; chose not chooses not to
built, planted or (Art. 452) Exception: remove the remove the
sown on his When they can be materials; materials; (can only
land, without removed without b. In case BPS demand
paying destruction to the cannot pay, LO reimbursement from
indemnity for its work made or to will not be BPS of which he is
value (Art 449); the plants. In subsidiarily primarily liable)
OR which case, the liable because In case BPS cannot
b. May demand OM may remove to him, BPS is in pay, LO will not be
the demolition them. bad faith subsidiarily liable to
of the work, or c. In case BPS pays OM because as to
that the planting for the value of the LO, BPS is in bad
or sowing be the materials to faith
removed in OM, BPS cannot b. Limited right of
order to replace ask removal, i.e.
things in their reimbursement May remove the
former condition from the LO, materials provided it
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 LANDOWNER (LO) BUILDER,PLANTER, SOWER (BPS) OWNER OF MATERIALS (OM)
RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS
at the expense because as to will not cause injury
of the BPS (Art. the latter BPS is to the work
450); in bad faith. constructed, or
OR without the
c. May compel the plantings,
BP to pay for the construction or
value of the land works being
whether or not destroyed.
it is considerably
more than the
value of the
building or trees;
and sower
proper rent.
(Art. 450)
d. In all of the
above
circumstances
the LO can
demand
damages from
both the BPS
and OM
(3) LO =in GF Apply the Rules in Art. 448, item 1 of this Matrix Apply the Rules in Art. 448, item 1 of If he acted in bad faith, OM shall lose all
BPS = in GF this Matrix rights to be indemnified;
OM = in BF Moreover, he can even be liable for
damages as when the materials are of an
inferior quality.
Article 456. In the cases regulated in the preceding articles, good faith does not necessarily exclude negligence, which gives right to damages under article 2176.
Article 2176. Whoever by acts or omission causes damage to another, there being fault or negligence, is obliged to pay for the damage done. Such fault or
negligence, if there is no pre-existing contractual relations between the parties, is called quasi-delict.

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