Article 448

Part 2

Item of Note:
Article 448 states that the builder or planter cannot be obligated to buy the land if its value is CONSIDERABLY MORE than the building or trees.

Applicability of Art 448

1. Only when the builder or planter thinks he owns the land. And he be a possessor in good faith. (Alburo vs. Villanueva) 2. Builder constructs with the consent of the owner. (Javier vs. Javier & Aringo vs. Arena)

Applicability of Art 448

Note:

The article applies whether the land involved is public or private one for the law does not make any distinction. (Insular Govt vs. Aldecora & Co., 19 Phil 505)

Non-applicability of Art 448

1. The owner or planter does not claim ownership but possesses it as mere:
a) Holder b) Agent c) Usufructuary d) Tenant
Exception: When the tenant still sows not knowing that the crops will no longer belong to him.

Non-applicability of Art 448

2. When the builder or planter is a co-owner of the land. 3. When a person constructs a building on his own land then sells the land excluding the building.

Non-applicability of Art 448 4. When the builder is a belligerent occupant.

If the Landowner Refuses to Make the Choice

Ignacio vs. Hilario, 76 Phil 605

The landowner has to exercise either of the alternatives, not refuse both: a) To pay for the building b) To sell the land to the builder in good faith.

If the Landowner Refuses to Make the Choice

Rationale: Since the law gives him no remedies except those provided in the law itself. c) Sale of property at public auction.

Rule in case the Landowner Sells the Property

If new buyer only paid for the land: Builder can direct the action against the new owner ONLY, having benefited from the accretion. More so if the new owner purchased the land in bad faith.

Rule in case the Landowner Sells the Property

If there is payment for the construction: Builder can still direct the action against the new owner. A third-party complaint may still be directed against the original owner.

Rule in case the Landowner Sells the Property

If no appropriation is made at the time of the sale of the land: The right to exercise the option is with the new owner.

Applicability in Ejectment Cases

Applicable as a result of a defective deed of donation.

Irrevocability of Choice
Once the choice is made, the same cannot be revoked. (Tayag vs. Yusco)

Rule in Installment Sales

Substantial improvement does not justify the longer payment of installments.

Application by Analogy
Where one loses ownership of the land on which he earlier built an apartment.

When can the option be exercised

Only when both parties become aware of the intrusion.

Writ of Demolition
The writ can only be issued if it is ascertained that the construction is made in bad faith.