Doctrine: The landowner on which a building has been constructed in good faith by another has the option to buy

the building or sell his land to the builder, he cannot refuse to exercise either option. Facts: Before Ernesto Valentino and Rebecca oren!o wed, Rebecca"s #other offered a lot in $arana%ue that they could build their house on. &n '()*, they finally built their ho#e which cost about $h$+,,,,',,,,,, thin.ing that so#eday, the lot would be transferred to the# in their na#e. &t turns out, though, that the lot was owned by the /pouses /antos who, in turn, sold the sa#e to eonila /ar#iento in '(*0. 1 year later, /ar#iento ordered the Valentinos to 2acate their lot, then e2entually filed and E3ection /uit against the#. 4unicipal 5ourt: The 4unicipal 5ourt found that pri2ate respondents had built the residential house in good faith, and, disregarding the testi#ony of Ernesto, that it had a 2alue of $6,,,,,.,,. &t then ordered Ernesto and wife to 2acate the land after /ar#iento has paid the# the #entioned su# of $6,,,,,.,,. 5F&: But the case was then ele2ated to the 5F& of $asay 7w8 1gana as 9udge:, and pursuant to 1rt.00+ of the 55 74arch '(*(:, the 5ourt ordered /ar#iento to exercise the option in ), days to pay Ernesto 0,,,,, as the 2alue of the house or to let the# purchase the land for 6;,,,,. /ar#iento was not able to exercise this option, and the 5F& allowed Ernesto to deposit the 6;,,,, purchase price with the 5ourt. This is the hub of the contro2ersy. /ar#iento then instituted the instant certiorari proceedings. &//<E/: 7': =hether or not Ernesto and his wife were builders in good faith. 76: =hether or not the land owner /ar#iento can be co#pelled to exercise either option: to buy the building or to sell the land. >E D: 7': ?es. =e agree that Ernesto and wife were builders in good faith in 2iew of the peculiar circu#stances under which they had constructed the residential house. 1s far as they .new, the land was owned by Ernesto"s #other-in-law who, ha2ing stated they could build on the property, could reasonably be expected to later on gi2e the# the land. &n regards to builders in good faith, 1rticle 00+ of the 5ode pro2ides: 1RT. 00+. The owner of the land on which anything has been built, sown or planted in good faith, shall ha2e the right to appropriate as his own the wor.s, sowing or planting, after pay#ent of the inde#nity pro2ided for in articles ;0) and ;0+, or to oblige the one who built or planted to pay the price of the land, and the one who sowed, the proper rent. >owe2er, the builder or planter cannot be obliged to buy the land if its 2alue is considerably #ore than that of the building or trees. &n such case, he shall pay reasonable rent, if the owner of the land does not choose to appropriate the building or trees after proper inde#nity. The parties shall agree upon the ter#s of the lease and in case of disagree#ent, the court shall fix the ter#s thereof. 76: ?es. Because Ernesto and his wife were clearly in good faith, /ar#iento was re%uired to exercise either of 6 options: to purchase the house or to sell the land to the#. &n this case, based on the 2alue decided by 5F& of $asay. /he is co#pelled by law to exercise either option. @ot choosing either is a 2iolation of the law.

The owner of the building erected in good faith on a land owned by another, is entitled to retain the possession of the land until he is paid the 2alue of his building, under article 0;A 7now 1rticle ;0):. The owner, of the land. upon, the other hand, has the option, under article A)' 7now 1rticle 00+:, either to pay for the building or to sell his land to the owner of the building. But he cannot, as respondents here did, refuse both to pay for the building and to sell the land and co#pel the owner of the building to re#o2e it fro# the land where it is erected. >e is entitled to such re#otion only when, after ha2ing chosen to sell his land, the other party fails to pay for the sa#e. =e hold, therefore, that the order of 9udge @ati2idad co#pelling defendants-petitioners to re#o2e their buildings fro# the land belonging to plaintiffs-respondents only because the latter chose neither to pay for such buildings nor to sell the land, is null and 2oid, for it a#ends substantially the 3udg#ent sought to be executed and is, further#ore, offensi2e to articles A)' 7now 1rticle 00+: and 0;A 7now 1rticle ;0): of the 5i2il 5ode. 7&gnacio 2s. >ilario, *) $hil. ),;, ),+ B'(0)C:. =>EREFDRE, the $etition for 5ertiorari is hereby ordered dis#issed, without pronounce#ent as to costs.