Rules when landowner (LO) builder/planter/sower (BPS)

makes constructions/plantings w/ materials of another (OM):

LANDOWNER-BUILDER/PLANTER/SOWER (LO-BPS)
A. GOOD FAITH
LO-BPS can acquire the materials provided there is full
payment.
B. BAD FAITH
LO-BPS can acquire the materials provided there is full
payment plus damages.
C. GOOD FAITH
LO-BPS can acquire the materials without paying for the
value thereof and will be entitled to damages due to
defects or inferior quality of materials.
D. BAD FAITH
Same as A.

OWNEROF MATERIALS (OM)

GOOD FAITH
OM is entitled to full payment for value of materials or OM may
remove materials provided there is no substantial injury to work done.
GOOD FAITH
OM is entitled to full payment for value of materials plus damages or
OM may remove materials even if there will be substantial injury to
work done plus damages.
BAD FAITH
OM loses materials without indemnity and will be liable for damages
due to defects or inferior quality of materials.
BAD FAITH
Same as A.

Rules when builder/planter/sower (BPS)

builds, plants or sows on the land of another (LO):
LANDOWNER (LO)
A. GOOD FAITH
Option 1: To purchase whatever has
been built, planted or sown after
paying indemnity which includes
necessary expenses, useful expenses
and luxurious expenses (if the LO
wants to appropriate the luxurious
improvements).

Option 2: To oblige the BP to buy the

land or the S to pay the proper rent
unless the value of the land is
considerably more than that of the
building or trees.

BUILDER/PLANTER/SOWER (BPS)
GOOD FAITH
To receive indemnity for necessary, useful and luxurious expenses (if the LO wants to
appropriate the luxurious improvements) with right of retention over the land without
obligation to pay rent until full payment of indemnity.
To remove useful improvements provided it does not cause any injury (this is 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).
To purchase land at fair market value when value is not considerably more than that of
the building or trees.
If BPS cannot pay purchase price of land, 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, BPS cannot be
compelled to buy the land. In such case, BPS will pay reasonable rent if LO does not
choose Option 1.

B. GOOD FAITH
Option 1: To acquire whatever has
been built, planted or sown without
paying indemnity except necessary
expenses for preservation of land and
luxurious expenses (should LO want to
acquire luxurious improvements) plus
damages.

If BPS cannot pay the rent, LO can eject BPS from the land.
BAD FAITH
Loses whatever has been built, planted or sown without indemnity and liable to pay
damages.
Entitled to reimbursement for necessary expenses for preservation of land but no right of
retention.
Entitled to reimbursement for useful expenses but 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 enters into
possession).

Option 2: To oblige BP to buy land or

S to pay proper rent plus damages.
Option 3: To compel BPS to remove
or demolish work done plus damages.
C. BAD FAITH
To acquire whatever has been built,
planted or sown by paying indemnity
plus damages.

D. BAD FAITH
Same as A.

Entitled to remove luxurious improvements if it will not cause injury and LO does not
want to acquire them.
Obliged to pay for land or proper rent and pay damages.
Obliged to remove or demolish work done at his expense and pay damages.
GOOD FAITH
If LO acquires whatever has been built, planted or sown, BPS must be indemnified the
value thereof plus damages.
(If LO does not acquire whatever has been built, planted or sown, 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
Same as A.

Rules when landowner (LO), builder/planter/sower (BPS) and owner of the materials (OM) are 3 different persons:
LANDOWNER (LO)

BUILDER/PLANTER/SOWER (BPS)

OWNER OF MATERIALS (OM)

A. GOOD FAITH

GOOD FAITH

GOOD FAITH

Option 1: To acquire whatever has been

built, planted or sown provided there is
payment of indemnity (which includes
value of what has been built, planted or
sown plus value of materials used).
Option 2: To oblige BP to buy land or S
to pay proper rent unless value of land
is considerably more than that of
building or trees.

To receive indemnity from LO with

right of retention over land until full
payment.

To receive indemnity from BPS who is primarily

liable for materials; if BPS is insolvent, to
proceed against LO who is subsidiarily liable
with no right of retention.

To buy land or to pay proper rent.

To receive indemnity from BPS only (LO is not

subsidiarily liable) with right of retention until
full payment.
or

GOOD FAITH

To remove materials if there will be no injury

on building or trees and will have material rent
lien against BPS for payment of value of
materials.
BAD FAITH

C. GOOD FAITH

BAD FAITH

Whatever is the choice of LO, the OM:

1. loses the materials in favor of BPS, and
2. will have no right to receive indemnity from
BPS nor LO.
BAD FAITH

Option 1. To acquire whatever has been

built, planted or sown without paying
indemnity except necessary expenses
for preservation of land and luxurious
expenses (should LO want to acquire
luxurious improvements) plus damages.
Option 2: To oblige BP to buy the land or
S to pay proper rent plus damages.

BPS loses what has been built planted

or sown plus liable for damages but is
entitled
to
be
indemnified
for
necessary expenses and luxurious
expenses (should LO want to acquire
luxurious improvements) and has no
right of removal even if removal will
not cause damage.
To buy the land or pay proper rent
and liable to pay damages to LO.

Option 3: To oblige BPS to demolish or

remove what has been built, planted or
sowed plus damages.
D. BAD FAITH

To demolish or remove what has been

built, planted or sowed and liable for
damages.
GOOD FAITH

To acquire what has been built, planted

or sown by paying indemnity plus liable
to pay damages.
E. BAD FAITH

To receive indemnity from LO plus

damages.

Same as D.

Same as D.

B. GOOD FAITH
Same as A.

Same as A.

GOOD FAITH

(Since both BPS and OM are in bad faith, treat

them both as if they are in good faith).
Whatever is the choice of LO, OM has right to
receive indemnity for value of materials from
BPS only (LO has no subsidiary liability for
value of materials because OM is considered in
good faith only insofar as BPS is concerned).
If LO chooses Option 1, OM has no right to
remove materials even if there will be no injury
or damage. If LO chooses Option 2, OM has
right of removal, provided there will be no
injury or damage.
Liable to pay for damages due to defects or
inferior quality of materials.
GOOD FAITH
To receive indemnity for value of materials
principally from BPS and in case BPS is
insolvent, subsidiarily from LO.
BAD FAITH
No right to receive indemnity for value of
materials from BPS nor LO (who ends up
owning buildings or trees).

Right of Accession w/ Respect to Movable Property

DEFINITION
PRINCIPAL IN
GOOD FAITH

PRINCIPAL IN
BAD FAITH

ADJUNCTION
2 movables belonging to
diff. owners are united in
such a way that they form a
single object
Owner of principal:
1. acquires the accessory
2. must
indemnify
the
owner of the accessory
for its value

Owner of accessory may:

1. Ask for payment of
accessory + damages
2. Remove the accessory
even if the principal is
destroyed + damages

ACCESSORY IN
GOOD FAITH

ACCESSORY IN
BAD FAITH

Owner of accessory:
1. Loses all rights to the
accessory
2. Liable for damages

CO-OWNERSHIP
1. Judicial partition
2. Extrajudicial
partition
3. Prescription
in
favor
of
coowner
4. Prescription
in
favor
of
a
stranger
5. Merger in 1 coowner
6. Destruction/loss
7. Expropriation

POSSESSION
1. Abandonment of the
thing
2. Assignment made to
another
by
onerous/gratuitous
title
3. Destruction or total
loss of the thing, or
because it goes out of
commerce
4. Possession of another
for more than a year
(but for real right of
possession, 10 years)
5. Final
judgment
in
favor of another with
a better right
6. Expropriation
7. Recovery
or
reivindication by the
legitimate owner or
possessor

MIXTURE
Combination
of
materials
where the respective identities
or the component elements
are lost
1. Co-ownership results
2. Each owner acquires an
interest/right proportional
to the value of his material

Owner of principal:
1. Loses his material
2. Liable for damages

SPECIFICATION
The giving of a new form to anothers material
thru application of labor; the material
undergoes
change
of
identity
or
transformation
GR: Worker/principal may appropriate the
new thing upon indemnification for the
materials.
E: If the materials is more valuable than the
new thing, the owner of the materials may:
1. Appropriate the new thing but may pay for
the work, OR
2. Demand indemnity for the materials +
damages
GR: Owner of materials has option:
1. Appropriate the new thing w/o paying for
labor, OR
2. Demand indemnity for materials +
damages
E: Owner of materials cannot appropriate if
the value of the new thing is more valuable
for artistic or scientific reasons

1. Co-ownership results
2. Each owner acquires an
interest/right proportional
to the value of his material
Owner of accessory:
1. Loses his material
2. Liable for damages

MODES OF EXTINGUISHMENT
USUFRUCT
1. Death
of
the
usufructuary,
unless a contrary intention
appears
2. Expiration of the period for w/c it
was constituted, or fulfillment of
resolutory condition
3. Merger of usufruct & ownership
in same person
4. Renunciation of the usufructuary
5. Total loss of the thing in usufruct
6. Termination of the right of the
person constituting the usufruct
7. Prescription
8. Annulment
9. Rescission
10. Mutual withdrawal
11. Legal
causes
ending
legal
usufruct
12. When usufructuary is a town
that has been abandoned or a
corporation or association that
has been dissolved (max 50
years)

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

13.

EASEMENTS
Merger in the same person of the
owner of the dominant & servient
estate
Non-use for 10 years
The easement cannot be used &
sufficient time for prescription has
elapsed
Expiration of the term or fulfillment of
the condition
Renunciation of the owner of the
dominant estate
Redemption agreed upon bet. the
owners of the dominant & servient
estates
Expropriation of servient estate
Abandonment of the servient estate
Permanent impossibility to make use of
the easement
Annulment, rescission or cancellation of
the title that constituted the easement
Resolution of the right of the grantor to
create the easement
Registration of the servient estate as
free (although the servient estate was
registered under the Torrens system,
the
easement
thereon
was
not
registered)
In case of legal easement of right of
way, the opening of an adequate outlet
to the highway extinguishes the
easement, if the servient owner makes
a demand for such extinguishment