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

MATRIX OF ACCESSION INDUSTRIAL:

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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.

BUILDER,PLANTER, SOWER OWNER OF MATERIALS (OM)

LANDOWNER (LO)
(BPS)
OBLIGATION
RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS
S
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 a. Becomes the a. Must pay not a. Right to
= in Bad owner of the only the value reimbursement
Faith (BF); materials of the material of the value of
OM = in (right of but also obliged materials plus
GF appropriation to the damages, in
of the reparation of case he chooses
materials); damages in case not to remove
Except: OM chose not to the materials
When the OM remove the b. Entitled to
decides to materials. absolute right

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 BUILDER,PLANTER, SOWER OWNER OF MATERIALS (OM)
LANDOWNER (LO)
(BPS)
OBLIGATION
RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS
S
remove the of removal of
materials the materials
whether or whether or not
not substantial injury
destruction is caused; plus
would be damages;
caused. In (ownership of
this case, the materials still
materials retains to him)
would still
belong to the
owner of said
materials
who in
addition will
still be
entitled to
damages
(2)LO/BPS By analogy: Art. 453, par. 1: If there was bad faith, not only on the part of the person who built, planted or
= in BF sowed on the land of another, but also on the part of the owner of such land, the right of one and the other shall
OM = in be the same as though both had acted in good faith.
BF In such a case, the following rules shall apply:
a. Becomes the a. Must pay for the a. Shall be paid for
owner of the value of the the value of the
materials materials materials (right of
(right of reimbursement) if
appropriation he chose not to
of the remove the
materials); materials
Except: b. Limited right of
when they removal, ie.
can be May remove the
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 BUILDER,PLANTER, SOWER OWNER OF MATERIALS (OM)
LANDOWNER (LO)
(BPS)
OBLIGATION
RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS
S
removed materials
without provided it will
destruction to not cause injury
the work to the work
made or to constructed, or
the plants. In without the
such a case, plantings,
OM can construction or
remove works being
them. destroyed.
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 natural 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

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 BUILDER,PLANTER, SOWER OWNER OF MATERIALS (OM)
LANDOWNER (LO)
(BPS)
OBLIGATION
RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS
S
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)

(1)LO = in Land Owner has

GF; two (2) options:
BPS = in a. To a. Has to pay a. Right to a.To pay
GF; appropriate indemnity if reimbursem proper rent
This rule as his own chooses to ent of in case the
also the works, appropriate as necessary LO chooses
applies if sowing or own the works, and useful to
both the planting sowing or planting expenses appropriate
LO and after made on his land incurred for whatever is
BPS is in payment of the built, planted
Bad Faith indemnity; preservation or sown on
(Art. 453) OR of the his land.
b. Oblige the property (The terms
builder or b. Right of of lease shall
planter to Retention of be agreed
pay the ownership upon by the
value of the of whatever parties, in
land; or the is built, case of
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 BUILDER,PLANTER, SOWER OWNER OF MATERIALS (OM)
LANDOWNER (LO)
(BPS)
OBLIGATION
RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS
S
sower, the planted or disagreemen
proper rent sown on the t, the court
(in case LO land, until shall fix the
chose not to payment of terms.)
appropriate) indemnity
However: by the LO (if
Cannot oblige LO chooses b. Must pay for
the builder or to the value of
planter to buy appropriate) the land if he
the land if the c. May remove accepts the
value of the the offer of the
land is ornaments LO to sell the
considerably with which land;
more than the he has If BP fails to
value of the embellished pay the
building or the principal agreed price,
trees; thing if it he will lose
Otherwise, suffers no his right of
proper rent injury retention
must be paid; thereby, and LO shall
(The terms of and if his be entitled
lease shall be successor in to removal
agreed upon by the of
the parties, in possession improvemen
case of does not t (Art. 450).
disagreement, prefer to
the court shall refund the
fix the terms.) amount
expended.
d. Cannot be
obliged to
buy the land
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 BUILDER,PLANTER, SOWER OWNER OF MATERIALS (OM)
LANDOWNER (LO)
(BPS)
OBLIGATION
RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS
S
if the value
of the land
is
considerabl
y 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.

(2)LO = in a. Right of a. Pay for the a. Loses a. Pay for the

GF; appropriatio necessary and whatever is expenses
BPS = in n, i.e. he useful expenses built, incurred in
BF becomes the for the planted or case the
owner of preservation of sown on the land owner
whatever is the land incurred land of chose to
built, planted by the BPS in bad another demolish or
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 BUILDER,PLANTER, SOWER OWNER OF MATERIALS (OM)
LANDOWNER (LO)
(BPS)
OBLIGATION
RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS
S
or sown on faith (Art. 452) without remove
his land, right to whatever is
without indemnity built or
paying (Art. 449) planted/sow
indemnity for b. He is n on his land
its value (Art entitled to in order to
449) reimburseme replace
b. May demand nt for the things their
the necessary former
demolition of and useful conditions
the work, or expenses for (Art 450)
that the the b. If the LO
planting or preservation compels the
sowing be of the land BPS to buy
removed in (Art. 452) the land, the
order to latter must
replace pay for the
things in value of the
their former land whether
condition at or not the it
the expense is more than
of the BPS the value of
(Art. 450) the building
c. May compel or trees; the
the BP to sower must
pay for the pay for the
value of the proper rent
land whether (Art. 450)
or not it is c. In all of the
considerably above
more than circumstanc
the value of es, the BPS
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 BUILDER,PLANTER, SOWER OWNER OF MATERIALS (OM)
LANDOWNER (LO)
(BPS)
OBLIGATION
RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS
S
the building shall be
or trees; liable for
and sower damages.
proper rent.
(Art. 450)
d. In all of the
above
circumstance
s, 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 a. Becomes the b. Must pay not a. Right to
BF; owner of the only the value reimburse
BPS = in improvement of what is built, ment of the
GF s (right of planted or sown value of the
appropriation but also obliged building or
of whatever is to the trees or
built, planted reparation of plants plus
or sown); damages in case damages,
Except: BPS chose not to in case he
When the remove the chooses not
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 BUILDER,PLANTER, SOWER OWNER OF MATERIALS (OM)
LANDOWNER (LO)
(BPS)
OBLIGATION
RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS
S
BPS decides buildings or to remove
to remove trees/plants. the
the materials
improvement b. Entitled to
s whether or absolute
not right of
destruction removal of
would be the
caused. In improvemen
this case, the ts whether
improvement or not
s would still substantial
belong to the injury is
BPS who in caused;
addition will plus
still be damages;
entitled to (ownership
damages of
improvemen
ts 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.

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 BUILDER,PLANTER, SOWER OWNER OF MATERIALS (OM)
LANDOWNER (LO)
(BPS)
OBLIGATION
RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS
S
(1)LO =in Apply the Rules in Art. 448, item 1 of Apply the Rules in Art. 448, item
GF this Matrix 1 of this Matrix
BPS = in Additional Rights and Obligation of the Additional Rights and Obligation
GF LO: of the BPS:
OM = in GF 1. Subsidiarily liable for the value of 1. Principally liable to the OM; a. Entitled to
the materials to OM in the event since he was the first to use reimbursement
that the BPS is insolvent. the materials; from the BPS,
2. The landowner can only make use 2. If BPS is insolvent, LO shall principally; or
of the materials if he appropriates be subsidiarily liable, b. Can go after the
the construction; (LO subsidiarily provided the latter chose to LO if the BPS is
liable) use the materials; insolvent and LO
3. If he compels the BPS to purchase 3. If the BPS pays the OM, BPS uses the
the land; or to demolish the may demand from landowner materials
construction, the landowner does the value of the materials
not make use of the materials, thus and labor (provided LO did
he cannot be made subsidiarily not appropriate the materials
liable to the OM for the value because he did not profit
thereof; from the accession)
4. If the BPS pays the OM, BPS may
demand 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 Note: As between BPS and OM since they are both in bad faith, good
GF faith must govern. Hence:
BPS = in a. Right of a. Pay for the a. Becomes a.Must a. Right to
BF appropriation necessary and the owner of reimburse reimbursemen
OM = in BF , i.e. he useful expenses the OM for the t of the value of
becomes the for the materials, if value of the materials, in
owner of preservation of he pays for materials if case he chooses
whatever is the land incurred their value; OM chose not to remove
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 BUILDER,PLANTER, SOWER OWNER OF MATERIALS (OM)
LANDOWNER (LO)
(BPS)
OBLIGATION
RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS
S
built, planted by the BPS in bad Exception: not remove the materials;
or sown on faith (Art. 452) When they can the (can only
his land, be removed materials; demand
without without b.In case BPS reimbursement
paying destruction to cannot pay, from BPS of
indemnity for the work made LO will not which he is
its value (Art or to the be primarily liable)
449); plants. In subsidiarily In case BPS
OR which case, liable cannot pay, LO
b. May demand the OM may because to will not be
the remove them. him, BPS is subsidiarily
demolition of in bad faith liable to OM
the work, or c. In case BPS because as to
that the pays for the the LO, BPS is in
planting or value of the bad faith
sowing be materials to b. Limited
removed in OM, BPS right of
order to cannot ask removal, i.e.
replace reimbursem May remove
things in ent from the the materials
their former LO, because provided it will
condition at as to the not cause injury
the expense latter BPS is to the work
of the BPS in bad faith. constructed, or
(Art. 450); without the
OR plantings,
c. May compel construction or
the BP to pay works being
for the value destroyed.
of the land
whether or
not it is
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 BUILDER,PLANTER, SOWER OWNER OF MATERIALS (OM)
LANDOWNER (LO)
(BPS)
OBLIGATION
RIGHTS OBLIGATIONS RIGHTS OBLIGATIONS RIGHTS
S
considerably
more than
the value of
the building
or trees; and
sower proper
rent. (Art.
450)
d. In all of the
above
circumstance
s the LO can
demand
damages
from both the
BPS and OM
(4)LO =in Apply the Rules in Art. 448, item 1 of Apply the Rules in Art. 448, item If he acted in bad faith, OM shall
GF this Matrix 1 of this Matrix lose all rights to be indemnified;
BPS = in Moreover, he can even be liable for
GF damages as when the materials are
OM = in BF 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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