With Respect to Immovable Property
1st Situation (447)
Landowner = Builder/Planter/Sower Owner of Materials
Good faith Good faith
LO-BPS can acquire the materials provided there is full payment Entitled to full payment for value of materials, or May remove
materials provided there is no substantial injury to work done
Bad faith Good faith
Acquire the materials provided he pays full payment plus damages Entitled to full payment for value of materials plus damages, or
Remove materials even if there will be substantial injury to work done
plus damages
Good faith Bad faith
Acquire materials without paying for the value thereof and entitled to Loses materials without indemnity and will be liable for damages due
damages due to defects or inferior quality of materials to defects or inferior quality of materials
Bad faith Bad faith
Same as when both are in good faith.
448-454
Landowner Builder/planter/sower
Good faith Good faith
Option 1: Purchase whatever has been built, planted, or sown after Receive indemnity for necessary, useful and luxurious expenses
paying indemnity which includes necessary, useful and luxurious (depends on landowner) with right of retention over the land without
expenses obligation to pay rent until full payment of indemnity
Prohibited from offsetting or compensating the necessary and useful Remove useful improvement provided it does not cause any injury
expense with the fruits received by the BP in good faith (part of right of retention)
If LO does not appropriate luxurious improvements, BPS can remove
the same provided there is no injury to the principal thing (land or
building)
Right of retention only applies when LO chooses to appropriate (but
does not apply if property of public dominion)
Option 2: To oblige the BP to buy the land or the S to pay the proper To purchase land at fair market value at time of payment when value
rent unless the value of the land is considerably more than that of the is not considerably more than that of the building or trees
building or trees
To pay rent until the purchase has been made (Technogas case)
If BPS cannot pay purchase price of the land, LO can require BPS to
remove whatever has been built, planted, or sown.
If the value of the 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 LO does not 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, planted or sown without Loses whatever has been built, planted or sown without indemnity and
paying indemnity except necessary expenses for preservation of land liable to pay damages
and luxurious expenses (should LO want to acquire luxurious
improvement) plus damages Entitled to reimbursement for necessary expenses for preservation of
land but no right to retention
Entitled to reimbursement for useful expenses but cannot remove
useful improvements even if removal will not cause injury
Not entitled to luxurious expenses except when LO wants to acquire
(value of which will be the one at the time LO enters into possession)
Entitled to remove luxurious improvements if it will not cause injury
and LO does not want to acquire them
Option 2: To oblige BP to buy land or S to pay proper rent plus Obliged to pay for land or proper rent and pay damages
damages
Option 3: To compel BPS to remove or demolish work done plus Obliged to remove or demolish work done at his expense and pay
damages damages
Bad Faith Good Faith
Acquire whatever has been built, planted or sown by paying indemnity If LO acquires whatever has been built, planted or sown, BPS must be
plus damages indemnified the value thereof plus damages
If LO does not acquire, BPS cannot insist on purchasing land
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
Rules on 447, Both in good faith
3rd situation (455)
Landowner Builder/Planter/Sower Owner of the Materials
GF GF GF
Option 1: To acquire whatever has been built, To receive indemnity from LO with right of To receive indemnity from BPS who is
planted or sown provided there is payment of retention over land until full payment primarily liable for materials; if BPS is
indemnity (which includes value of what has insolvent, to proceed against LO who is
been built, planter or sown plus value of subsidiarily liable with no right of retention
materials used)
Option 2: To oblige BP to buy land or S to To buy land or to pay proper rent To receive indemnity from BPS only (LO is
pay rent unless value of land is considerably not subsidiarily liable) with right of retention
more than that of building or trees until full payment; or
To remove materials if there will be no injury
on building or trees and will have material
lien against BPS for payment of materials
GF GF BF
Same Same Whatever is the choice of LO, the OM:
1. loses the materials in favor of the BPS and
2. will have no right to receive indemnity
from BPS nor LO
GF BF BF
Option 1: To acquire whatever has been built, BPS loses what has been built, planted or (Since both BPS and OM are in bad faith,
planted or sown without paying indemnity sown plus liable for damages but is entitled to treat them both as if they are in good faith.)
except for necessary expenses for preservation be indemnified for necessary expenses and
of land and luxurious expenses (should LO luxurious expenses (should LO want to Whatever is the choice of the LO, OM has
want to acquire luxurious improvements) plus acquire luxurious improvements) and has no right to receive indemnity for value of
damages right of removal even if removal will not materials from BPS only (LO has no
cause damage subsidiary liability for value of materials
because OM is considered in good faith only
insofar as BPS is concerned)
OM has no right to remove materials even if
there will be no injury or damage
Option 2: To oblige BP to buy the land or S To buy the land or pay proper rent and liable OM has right of removal provided there will
to pay proper rent plus damages to pay damages to LO be no injury or damage
Option 3: To oblige BP to demolish or To demolish or remove what has been built, To demolish or remove what has been built,
remove what has been built, planted or sown planted or sown and liable for damages planted or sown and liable for damages
plus damages
BF GF GF
To demolish or remove what has been built, To receive indemnity from LO plus damages TO receive indemnity of materials principally
planted or sown and liable for damages from BPS and in case BPS is insolvent,
subsidiarily from LO
BF GF BF
Same Same No right to receive indemnity for value of
materials from BPS nor LO (who ends up
owning buildings or trees)
With Respect to Movable Property
ADJUNCTION
Rights of Owner of Principal Rights of Owner of Accessory
GF GF
Acquires the accessory, indemnifying the owner of the value thereof Loses the accessory but has a right to indemnity for the value of the
accessory
Except: When value of accessory is much more precious than the
principal thing (469) Has a right to demand separation even if it causes injury to the
principal thing (469)
Except: When still separable, may demand separation (no adjunction
anyway) May demand separation (469)
GF BF
Acquires the accessory and has a right to indemnity for damages he Loses the thing and has liability for damages
may have suffered
BF GF
Pays for the accessory plus damages Option 1: Demand the owner of the principal to pay for the value of
the accessory plus damages
Separate thing even if it is destroyed plus pay damages
Option 2: Demand separation even if it causes the destruction of the
principal thing plus damages
BF BF
SAME AS GF
MIXTURE
Owner who caused mixture Owner of the thing mixed into
Good faith or by chance Good faith or by chance
Each owner acquires a right proportional to the part belonging to Each owner acquires a right proportional to the part belonging to
him, bearing in mind the value of the things mixed or confused him, bearing in mind the value of the things mixed or confused
BF GF
