Articles 447-556: (Good faith and Bad faith of Landowner, Builder, and Owner of Materials)

Corresponding
Articles
A. Article 447: A vs.
C
1. A Good Faith
C Good Faith

2.

3.

4.

A Bad Faith
C Good Faith

Rights of Builder, Planter or

Sower (B)

Rights of Owner of Land

(A)
Right: Right of appropriation
Effect: becomes owner of
materials
Condition: but pay C for
materials value.
EXCEPT if materials can be
removed without destruction
to work made or to the plants
sown.
Right: Right of appropriation
becomes owner of
materials
Condition: but pay C for
materials value
EXCEPT when C exercises
Right to Removal then
materials still belong to C
and still entitled to damages

Prepared by SRG

Rights of Owner of
Materials (C)
a) Right of
Reimbursement
(provided doesnt
remove), or
b) Limited right of
removal (provided no
substantial injury
caused)

a)
b)

Right of
Reimbursement &
damages
Absolute right of
removal & damages

A Good Faith
C Bad Faith

A Bad Faith
C- Bad Faith

B.

Article 448: A vs.

B
(only applies if BOTH
are in good faith)
A Good Faith
B Good Faith
(does not apply if B
is in bad faith)

a) Loses what is built on

As land (Art. 449)
b) Damages

Collect Consequential
Damages collect Necessary
Expenses for LAND not house

Refer to No. 1: both in good

faith
2 Options of A:
a) 1st option: Right of
appropriation upon
payment of indemnity,
reimburse B of
necessary, useful and
luxious expenses, or
b)

i.
ii.

c)
i.

ii.

2nd option: Right of

compulsory selling of
land - to compel B to
buy land upon which
house is built on.
Land must not be
more than value of
improvements
If land more than
improvement, RENT
should be paid
Effect of 2nd option:
Right of Demolition
only applicable when B
picks Right of
Appropriation (2nd
option) and fails to pay
land.
If A choose to pick
house he is
momentarily indebted
and has monetary
obligation.

Refer to No. 1: both in good

faith

a)

If A picks 1st option - Right

of Reimbursement of
necessary, useful and
luxious expenses

b)

If A picks 1st option - Right

of retention

c)

If A picks 2nd option

Transfer of Ownership of
Improvements to B,
transferred only after
payment.

(Indemnities to be given:
i.
Necessary expenses
ii.
Useful expenses
iii.
Luxurious Expenses)

Articles 447-556: (Good faith and Bad faith of Landowner, Builder, and Owner of Materials)

Article 449 452:

B in Bad Faith
A Good Faith
B Bad Faith
Art. 449: When B is in
bad faith he loses what
is built, planted, or sown
w/o right to indemnity:
(applicable only to
growing, not gathered,
crops)

Prepared by SRG

C.

a)
b)
c)
d)

e)

Right of Appropriation
Right of Compulsory Sale
Right of Demolition
Collect sum of money
and file ordinary action
(monetary obligation)
Right to Damages

a)

b)
c)

Loses what is built,

planted or sown without
right to indemnity (Art.
449)
Damages
Right of reimbursement for necessary expenses of
preservation of land, not
for building.

Ibid.
Art. 450: When B is in
bad faith, A may
demand of demolition or
compulsory selling

Ibid.

Ibid.
Art. 451: In case of Art.
449 & 450, A is entitled
to damages from B
Article 452: B is
entitled to
reimbursement for the
necessary expenses of
preservation of land
D.

E.

F.
1.

Article 453: A & B

in Bad Faith
A Bad Faith
BC Bad Faith
Article 454
A Bad Faith
B Good Faith

Article 455: 3
Parties Involve
A Good faith
BC Bad faith

Ibid.

Ibid.
Ibid.

a)
b)

b)

Same as Article 448

(No.2).
Both be considered in
good faith

Same as Article 447 (No.1).

Even is B chooses demolition,
A would still be liable for
damages

a)
b)

When builder may demand

reimbursement from A:
If Chas been paid by B, B may
demand from A value of the
materials and labor.

c)

d)

C Good Faith

a)

Same as Article 447 (No.1).

Pay for value of house &
damages

(Art 455 NOT apply when

A makes use of right by
Art. 450)

2.

Same as Article 448

(No.2).
Both be considered in
good faith

Ask damages from B & C

Right of Appropriation
w/o payment of
indemnity for useful or
necessary expenses
(art.459)
Right of Compulsory Sale
compel B to pay land
w/n land is more than
house.
Right of Demolition at
Bs expense

a)
b)

Loses all right to be

indemnified.
Liable for consequential
damages (ex. Materials
are inferior quality)

But reimbursement possible

only if A profits by accession
not when A constructs or
plants himself. There would be
unjust enrichment to A.
Right to Reimbursement:
a) Entitled to
reimbursement from B,
B is primarily liable, (if
B pays, he cant ask
reimbursement from A)
b) In case of insolvency of
B, A is subsidiarity
liable (bec. of A, C is
liable) if A makes use of

Articles 447-556: (Good faith and Bad faith of Landowner, Builder, and Owner of Materials)

Prepared by SRG

materials
3.

G.

C Bad Faith

a)

Loses rights of
indemnity
b) Liable for consequential
damages (ex. Materials
are inferior quality)
Article 456. In cases regulated in the preceding articles, good faith does not necessarily exclude
negligence: Good faith may co-exist with negligence. Liability for Negligence, Art. 2176: that negligent person is
obliged to pay damages done. If there is no pre-existing contractual relationship between parties, it is quasi-delict
(culpa aquiliana)
Bad Faith LANDOWNER: whenever the act was done with his knowledge and without opposition on his part.
BUILDER: makes use of the land or materials which he knows belong to another (knowledge of
ownership)
OWNER OF MATERIALS: allows another to use materials without informing him of the ownership
thereof.
Good Faith LO: ignorance of acts of the builders, planters or sowers, or he was aware of such acts there was
opposition on his part.
B: he did not know that he had no right to such land or materials. (ignorance of ownership of another)
O: he did not know that another was using his materials; or granting he did, he informed the user of the
ownership thereof and
made necessary prohibition.