RULES ON ACCESSION (BUILDERS/PLANTERS/SOWERS)

In the Civil Code of the Philippines or Republic Act No. 386, there are provisions which govern the laws on property, this chapter discusses about ACCESSION which contains the provision of Builder/Planter/Sower (Article 440 to Article 475).

In Accession (Article 440), it states that, “The ownership of property gives the right by accession to everything which is produced thereby, or which is incorporated or attached thereto, either naturally or artificially.” Also, in 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.”.

Article 446 states that, “All works, sowing, and planting are presumed made by the owner and at his expense, unless the contrary is proved.”

Article 441. To the owner belongs:

(1) The natural fruits - Natural fruits are the spontaneous products of the soil, and the young and other products of animals.

(2) The industrial fruits - Industrial fruits are those produced by lands of any kind through cultivation or labor.

(3) The civil fruits - Civil fruits are the rents of buildings, the price of leases of lands and other property and the amount of perpetual or life annuities or other similar income.

 

Rules when landowner (LO) – builder/planter/sower (BPS) makes constructions/plantings w/ materials of another (OM):

LANDOWNER-BUILDER/ PLANTER/ SOWER (LO-BPS)	OWNER OF MATERIALS (OM)
A. GOOD FAITH	GOOD FAITH
LO-BPS can acquire the materials provided there is full payment.	OM is entitled to full payment for value of materials or OM may remove materials provided there is no substantial injury to work done.
B. BAD FAITH	GOOD FAITH
LO-BPS can acquire the materials there is full payment plus damages	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.
C. GOOD FAITH	BAD 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	OM loses materials without indemnity and will be liable for damages due to defects or inferior quality of materials
D. BAD FAITH	BAD FAITH
Same as A	Same as A.

 

Rules when builder/planter/sower (BPS) builds, plants or sows on the land of another (LO):

LANDOWNER (LO)	BUILDER/ PLANTER/ SOWER (BPS)
A. GOOD FAITH	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.)	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 (right of retention).   If LO does not appropriate luxurious improvements, BPS can remove the same provided there is no injury to the principal thing (Whether land or building).
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.	To purchase the land at fair market value when value is not considerably more than that of the building or trees. (land < Building)   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.   If BPS cannot pay the rent, LO can eject BPS from the land.
B. GOOD FAITH	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 (If LO decised to acquire luxurious improvements) plus damages.	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 the LO wants to acquire luxurious improvements (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 damages.	Obliged to pay for land or proper rent and pay damages
Option 3: To compel BPS to remove or demolish work done plus damages.	Obliged to remove or demolish work done at his expense and pay damages.
C. BAD FAITH	GOOD FAITH
To acquire whatever has been built, planted or sown by paying indemnity plus damages.	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 case injury and will be entitled to damages.
D. BAD FAITH	BAD FAITH
Same as A.	Same as A.

 

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

LANDOWNER (LO)	BUILDER/ PLAYER/ 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).	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
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 of trees.	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   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 material
B. GOOD FAITH	GOOD FAITH	BAD FAITH
Same as A	Same as A	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.
C. GOOD FAITH	BAD FAITH	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	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 (If LO want to acquire luxurious improvements) and has no right of removal even if removal will not cause damage.	If both BPS and OM are in bad faith, it is considered and treated 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).
Option 2: To oblige BP to buy the land or S to pay proper rent plus damages.	To buy the land or pay proper rent and liable to pay damages to LO.	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.
Option 3: To oblige BPS to demolish or remove what has been built, planted or sowed plus damages.	To demolish or remove what has been built, planted or sowed and liable for damages.	Liable to pay for damages due to defects or inferior quality of materials.
D. BAD FAITH	GOOD FAITH	GOOD FAITH
To acquire what has been built, planted or sown by paying indemnity plus liable to pay damages.	To receive indemnity from LO plus damages.	To receive indemnity for value of materials principally from BPS and in case of BPS is insolvent, subsidiarily from LO.
E. BAD FAITH	GOOD FAITH	BAD FAITH
Same as D.	Same as D,	No right to receive indemnity for value of materials from BPS no LO.

 

Right of Accession w/ Respect to Movable Property

	ADJUNCTION	MIXTURE	SPECIFICATION
DEFINITION	2 movables belonging to different owners are united in such a way that they form a single object.	Combination of materials where the respective identities or the component elements are lost.	The giving of a new form to another’s material thru application of labor; the material undergoes change of identity or transformation.
PRINCIPAL IN GOOD FAITH	Owner of principal 1. acquires the accessory; 2. must indemnify the owner of the accessory for its value.	1. Co-ownership results; 2. Each owner acquires an interest/ right proportional to the value of his material,	GR: Worker/Principal may appropriate the new thing upon indemnification for the materials. EXE: If the materials are 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 plus damages
PRINCIPAL IN BAD FAITH	Owner of accessory may: 1. Ask for payment of accessory plus damages; 2. Remove the accessory even if the principal is destroyed plus damages.	Owner of principal: 1. Loses his material; 2. Liable for damages.	GR: Owner of materials has option: 1. Appropriate the new thing without paying for labor; or 2. Demand indemnity for materials plus damages. EXE: Owner of materials cannot appropriate if the value of the new thing is more valuable for artistic or scientific reasons.
ACCESSORY IN GOOD FAITH		1. Co-ownership results; 2. Each owner acquires an interest/ right proportional to the value of his material.
ACCESSORY IN BAD FAITH	Owner of accessory: 1. Loses all rights to the accessory; 2. Liable for damages.	Owner of accessory: 1. Loses his material; 2. Liable for damages.

 

MODES OF EXTINGUISHMENT
CO-OWNERSHIP	POSSESSION	USUFRUCT	EASEMENTS
1. Judicial partition; 2.Extrajudicial partition; 3.Prescription in favor of co-owner; 4.Prescription in favor of a stranger; 5.Merger in 1 co-owner; 6.Destruction/loss; 7.Expropriation.	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; 5. Final judgment in favor of another with a better right; 6. Expropriation; 7. Recovery or reivindication by the legitimate owner or possessor.	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. (maximum of 50 years)	1. Merger in the same person of the owner of the dominant & servient estate; 2. Non-use for 10 years; 3. The easement cannot be used &  sufficient time for prescription has elapsed; 4. Expiration of the term or fulfillment of the condition; 5. Renunciation of the owner of the dominant estate; 6. Redemption agreed upon between the  owners of the dominant & servient estates; 7. Expropriation of servient estate; 8. Abandonment of the servient estate; 9. Permanent impossibility to make use of the easement; 10. Annulment, rescission or cancellation of the title that constituted the easement; 11. Resolution of the right of the grantor to create the easement; 12. Registration of the servient estate as free; 13. 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.