PROPERTY REVIEWER

Civil Code of the Philippines

Paras, Book II, Articles 414 to 693

ARTICLE 447 - 456
Good faith / Bad faith
Indemnity:
1. Payment of necessary expenses
2. useful expenses
3. Luxurious expenses
Art. 447. The owner of the land who makes thereon,
personally or through another, plantings,
constructions or works with the materials of another,
shall pay their value; and, if he acted in bad faith, he
shall also be obliged to the reparation of damages.
The owner of the materials shall have the right to
remove them only in case he can do so without
injury to the work constructed, or without the
plantings, constructions or works being destroyed.
However, if the landowner acted in bad faith, the
owner of the materials may remove them in any
event, with a right to be indemnified for damages.
(360a)
Art. 448. The owner of the land on which anything
has been built, sown or planted in good faith, shall
have the right to appropriate as his own the works,
sowing or planting, after payment of the indemnity
provided for in Articles 546 and 548, or 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. (361a)
Art. 452. The builder, planter or sower in bad faith is
entitled to reimbursement for the necessary
expenses of preservation of the land. (n)
Art. 453. If there was bad faith, not only on the part
of the person who built, planted or sowed on the
land of another, but also on the part of the owner of
such land, the rights of one and the other shall be
the same as though both had acted in good faith.
It is understood that there is bad faith on the part of
the landowner whenever the act was done with his
knowledge and without opposition on his part.
(354a)
Art. 454. When the landowner acted in bad faith and
the builder, planter or sower proceeded in good faith,
the provisions of article 447 shall apply. (n)
Art. 455. If the materials, plants or seeds belong to a
third person who has not acted in bad faith, the
owner of the land shall answer subsidiarily for their
value and only in the event that the one who made
use of them has no property with which to pay.
This provision shall not apply if the owner makes use
of the right granted by article 450. If the owner of
the materials, plants or seeds has been paid by the
builder, planter or sower, the latter may demand
from the landowner the value of the materials and
labor. (365a)

Art. 449. He who builds, plants or sows in bad faith

on the land of another, loses what isbuilt, planted or
sown without right to indemnity. (362)

Art. 450. The owner of the land on which anything

has been built, planted or sown in bad faith may
demand the demolition of the work, or that the
planting or sowing be removed, in order to replace
things in their former condition at the expense of the
person who built, planted or sowed; or he may
compel the builder or planter to pay the price of the
land,andthe sower the proper rent. (363a)

Art. 451. In the cases of the two preceding articles,

the landowner is entitled to damages from the
builder, planter or sower. (n)
 Landowner Owner of materials Builder / Planter /
Sower
Article 447 • Pay the value of • Right to remove
Good faith materials without injury to the work
(Landowner) constructed

Bad faith • Pay the value of • Absolute right to

(Landowner) materials plus damages remove, plus right to be
indemnified for damages
• Measure of
damages:
1. Value of the loss
suffered
2. Profits failed to
realize
Article 448 • Choice = landowner, • “Earlier right” or “older
because of the principle of right”
accession
Good faith • May appropriate as • May pay the
(Both Landowner his own after payment of price of land,
and proper indemnity provided that value
Builder/Planter/Sow • No right of removal of the land is NOT
er) unless builder fails to pay considerably more
upon choice of compulsory than that of the
sale building or trees
• If the landowner did
not choose to appropriate If builder fails to pay:
and the price of land is 1. May demand
considerable more than reasonable rent
that of the buildings or 2. Demolish the
trees - pay REASONABLE house
RENT, terms fixed by 3. Sell the
parties, in case of property at public
disagreement, the courts auction (ordinary
shall fix the term of the money debt)
lease.

Landowner Owner of materials Builder / Planter / Sower

Article 449 • May demand • Losses what is
Bad faith demolition at the expense built, planted, or sowed
(Builder/Planter/Sow of the builder, planter or without right to
er) sower plus damages indemnity
• Get the house
without indemnity plus
damages
Article 450 - 451 • May compel the
builder, planter to pay the
price of land, and sower,
proper rent plus damages
Article 452 • Entitled to
reimbursement for the
necessary expenses for
the preservation of the
land
Article 453 • If both are bad faith = GOOD FAITH
Article 454 • Pay the value of the • Absolute right to
Bad faith materials plus damages remove plus right to be
(Landowner) indemnified for
damages
Article 455 • Losses all rights to be •
Bad faith indemnified. He can
(Owner of the even be liable for
materials) consequential
damages
Good faith • Subsidiarily liable in • Entitled to • Principally liable
(Owner of the case of insolvency of the reimbursement for reimbursement
materials) builder, and if he makes
use of the materials

He does NOT make use of

the materials if:
• If he compels the
builder to purchase
the land
• Or demolish the
construction