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

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

LANDOWNER-BUILDER/PLANTER/SOWER (LO-BPS) OWNEROF MATERIALS (OM)

A. GOOD FAITH GOOD FAITH
LO-BPS can acquire the materials provided there is full OM is entitled to full payment for value of materials or OM may
payment. remove materials provided there is no substantial injury to work done.
B. BAD FAITH GOOD FAITH
LO-BPS can acquire the materials provided there is full OM is entitled to full payment for value of materials plus damages or
payment plus damages. 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 OM loses materials without indemnity and will be liable for damages
value thereof and will be entitled to damages due to due to defects or inferior quality of materials.
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
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.
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.
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.
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)
A. 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.
B. GOOD FAITH
Same as A.
C. 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.
Option 2: To oblige BP to buy the land
or S to pay proper rent plus damages.
Option 3: To oblige BPS to demolish or
remove what has been built, planted or
sowed plus damages.
D. BAD FAITH
To acquire what has been built, planted
or sown by paying indemnity plus liable
to pay damages.
E. BAD FAITH
Same as D.
BUILDER/PLANTER/SOWER (BPS)
GOOD FAITH
To receive indemnity from LO with
right of retention over land until full
payment.
To buy land or to pay proper rent.
GOOD FAITH
Same as A.
BAD FAITH
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.
To demolish or remove what has been
built, planted or sowed and liable for
damages.
GOOD FAITH
To receive indemnity from LO plus
damages.
GOOD FAITH
Same as D.
OWNER OF MATERIALS (OM)
GOOD FAITH
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 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
materials.
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
(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

ADJUNCTION MIXTURE SPECIFICATION

2 movables belonging to Combination of materials The giving of a new form to anothers
DEFINITION diff. owners are united in where the respective identities material thru application of labor; the
such a way that they form a or the component elements material undergoes change of identity or
single object are lost transformation
PRINCIPAL IN Owner of principal: 1. Co-ownership results GR: Worker/principal may appropriate the
GOOD FAITH 1. acquires the accessory 2. Each owner acquires an new thing upon indemnification for the
2. must indemnify the interest/right proportional materials.
owner of the accessory to the value of his material E: If the materials is more valuable than the
for its value 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
PRINCIPAL IN Owner of accessory may: Owner of principal: GR: Owner of materials has option:
BAD FAITH 1. Ask for payment of 1. Loses his material 1. Appropriate the new thing w/o paying for
accessory + damages 2. Liable for damages labor, OR
2. Remove the accessory 2. Demand indemnity for materials +
even if the principal is damages
destroyed + damages E: Owner of materials cannot appropriate if
the value of the new thing is more valuable
for artistic or scientific reasons
ACCESSORY IN 1. Co-ownership results
GOOD FAITH 2. Each owner acquires an
interest/right proportional
to the value of his material
ACCESSORY IN Owner of accessory: Owner of accessory:
BAD FAITH 1. Loses all rights to the 1. Loses his material
accessory 2. Liable for damages
2. Liable for damages

MODES OF EXTINGUISHMENT
CO-OWNERSHIP POSSESSION USUFRUCT EASEMENTS
1. Judicial partition 1. Abandonment of the 1. Death of the usufructuary, 1. Merger in the same person of the
2. Extrajudicial thing unless a contrary intention owner of the dominant & servient
partition 2. Assignment made to appears estate
3. Prescription in another by 2. Expiration of the period for w/c it 2. Non-use for 10 years
favor of co- onerous/gratuitous was constituted, or fulfillment of 3. The easement cannot be used &
owner title resolutory condition sufficient time for prescription has
4. Prescription in 3. Destruction or total 3. Merger of usufruct & ownership elapsed
favor of a loss of the thing, or in same person 4. Expiration of the term or fulfillment of
stranger because it goes out of 4. Renunciation of the usufructuary the condition
5. Merger in 1 co- commerce 5. Total loss of the thing in usufruct 5. Renunciation of the owner of the
owner 4. Possession of another 6. Termination of the right of the dominant estate
6. Destruction/loss for more than a year person constituting the usufruct 6. Redemption agreed upon bet. the
7. Expropriation (but for real right of 7. Prescription owners of the dominant & servient
possession, 10 years) 8. Annulment estates
5. Final judgment in 9. Rescission 7. Expropriation of servient estate
favor of another with 10. Mutual withdrawal 8. Abandonment of the servient estate
a better right 11. Legal causes ending legal 9. Permanent impossibility to make use of
6. Expropriation usufruct the easement
7. Recovery or 12. When usufructuary is a town 10. Annulment, rescission or cancellation of
reivindication by the that has been abandoned or a the title that constituted the easement
legitimate owner or corporation or association that 11. Resolution of the right of the grantor to
possessor has been dissolved (max 50 create the easement
years) 12. Registration of the servient estate as
free (although the servient estate was
registered under the Torrens system,
the easement thereon was not
registered)
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