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    Builder in Good Faith

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    pdalingay
    When a person builds on another's land in good faith, Article 448 of the Civil Code applies. It provides that the landowner can either: 1) appropriate the works after paying indemnity, or 2) oblige the builder to pay for the land. However, if the land value is much more than the building value, the builder pays reasonable rent instead of buying the land. The choice belongs to the landowner, but they must choose one option and cannot demand removing the building without first exercising their option. Builders also have the right to be reimbursed for necessary and useful expenses on the property.

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    Builder in Good Faith

    Uploaded by

    pdalingay
    3K views2 pages
    When a person builds on another's land in good faith, Article 448 of the Civil Code applies. It provides that the landowner can either: 1) appropriate the works after paying indemnity, or 2) oblige the builder to pay for the land. However, if the land value is much more than the building value, the builder pays reasonable rent instead of buying the land. The choice belongs to the landowner, but they must choose one option and cannot demand removing the building without first exercising their option. Builders also have the right to be reimbursed for necessary and useful expenses on the property.

    Original Description:

    PROPERTY- BUILDER IN GOOD FAITH

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    When a person builds on another's land in good faith, Article 448 of the Civil Code applies. It provides that the landowner can either: 1) appropriate the works after paying indemnity, or 2) oblige the builder to pay for the land. However, if the land value is much more than the building value, the builder pays reasonable rent instead of buying the land. The choice belongs to the landowner, but they must choose one option and cannot demand removing the building without first exercising their option. Builders also have the right to be reimbursed for necessary and useful expenses on the property.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    3K views2 pages

    Builder in Good Faith

    Uploaded by

    pdalingay
    When a person builds on another's land in good faith, Article 448 of the Civil Code applies. It provides that the landowner can either: 1) appropriate the works after paying indemnity, or 2) oblige the builder to pay for the land. However, if the land value is much more than the building value, the builder pays reasonable rent instead of buying the land. The choice belongs to the landowner, but they must choose one option and cannot demand removing the building without first exercising their option. Builders also have the right to be reimbursed for necessary and useful expenses on the property.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    When a person builds in good faith on the land of another, Article 448

    of the Civil Code governs. Said article provides,


    ART. 448. The owner of the land on which anything has been
    built, sown or planted in good faith, shall have the right to:

    1. appropriate as his own the works, sowing or planting, after


    payment of the indemnity provided for in Articles 546 and
    548, OR
    2. 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 obliged 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. (Emphasis
    ours.)

    The above-cited article covers cases in which the builders, sowers or


    planters believe themselves to be owners of the land or, at least, to have a
    claim of title thereto.[15]The builder in good faith can compel the
    landowner to make a choice between

    1. appropriating the building by paying the proper indemnity;


    2. or obliging the builder to pay the price of the land. \

    The choice belongs to the owner of the land, a rule that accords with
    the principle of accession, i.e., that the accessory follows the principal and
    not the other way around. However, even as the option lies with the
    landowner, the grant to him, nevertheless, is preclusive. He must choose
    one.[16] He cannot, for instance, compel the owner of the building to
    remove the building from the land without first exercising either
    option. It is only if the owner chooses to sell his land, and the builder or
    planter fails to purchase it where its value is not more than the value of the
    improvements, that the owner may remove the improvements from the
    land. The owner is entitled to such remotion only when, after having chosen
    to sell his land, the other party fails to pay for the same.[17]

    Moreover, petitioners have the right to be indemnified for the


    necessary and useful expenses they may have made on the subject
    property. Articles 546 and 548 of the Civil Code provide,

    ART. 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.
    Useful expenses shall be refunded only to the possessor
    in good faith with the same right of retention, the person who
    has defeated him in the possession having the option of refunding
    the amount of the expenses or of paying the increase in value
    which the thing may have acquired by reason thereof.
    ART. 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.

    Consequently, the respondent-spouses have the option to appropriate


    the house on the subject land after payment to petitioners of the appropriate
    indemnity or to oblige petitioners to pay the price of the land, unless its
    value is considerably more than the value of the structures, in which case
    petitioners shall pay reasonable rent.

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