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Property Rights for Land Disputes

1. This document outlines the rules regarding when a builder, planter, or sower builds, plants, or sows on the land of another, and the options and entitlements of both the landowner and the builder/planter/sower depending on whether they acted in good or bad faith. 2. If both parties acted in good faith, the landowner can choose to appropriate the works for an indemnity or compel the builder/planter/sower to purchase the land or pay rent. If they acted in bad faith, the landowner is entitled to damages and can demand demolition of the works. 3. The builder/planter/sower's entitlements depend on whether

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Rhett Emmanuel C. Serfino
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207 views3 pages

Property Rights for Land Disputes

1. This document outlines the rules regarding when a builder, planter, or sower builds, plants, or sows on the land of another, and the options and entitlements of both the landowner and the builder/planter/sower depending on whether they acted in good or bad faith. 2. If both parties acted in good faith, the landowner can choose to appropriate the works for an indemnity or compel the builder/planter/sower to purchase the land or pay rent. If they acted in bad faith, the landowner is entitled to damages and can demand demolition of the works. 3. The builder/planter/sower's entitlements depend on whether

Uploaded by

Rhett Emmanuel C. Serfino
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Rule When the Builder/Planter/Sower Build, Plants, or Sows on the Land of Another

[Art. 448-454, Civil Code]


Landowner (LO) Builder/Planter/Sower (BPS)
A. Good Faith Good Faith

Option #1

to appropriate as his own the works, To receive the indemnity provided for in
sowing or planting, after payment of the articles 546 and 548 and he has a right to
indemnity provided for in articles 546 and retain the land (without having to pay
548 (the indemnity includes the value of rent) until the Landowner pays
what has been built, planted, or sowed and
the value of the materials): Can remove the useful improvements
provided it does not cause any injury
necessary expenses
useful expenses If the LO does not choose to appropriate
luxurious expenses (if the LO the luxurious improvements, he can
wishes to appropriate the same) remove the luxurious improvements
provided it does not cause any injury to
the principal thing

Option # 2

to oblige the one who built or planted to To buy the land (at fair market value
pay the price of the land (except when its when the value is not considerably more
value is considerably more than that of the than the value of the buildings or trees) or,
building or trees), and the one who sowed, in case of sowing, the proper rent
the proper rent
If the value of the land is considerably
more than the value of the building or
trees, he cannot be compelled to buy the
land, but shall pay reasonable rent if the
LO does not choose Option # 1

If he cannot pay the purchase price of the


land, the LO can require him to remove
what has buin built or planted

If he cannot pay the rent, the LO can eject


him from the land
Landowner (LO) Builder/Planter/Sower (BPS)
B. Good Faith Bad Faith

Option #1

To acquire whatever has been built, Loses what has been built, planted or sown
planted, or sown without paying but he is entitled to indemnity for necessary
indemnity expenses (without any right of retention);
(except for necessary expenses) [Art. and expenses for pure luxury should the LO
449]. He must also pay for the value of appropriate these items
expenses for pure luxury if he wants to
appropriate these. Has no right of reimbursement for useful
expenses and cannot remove useful
expenses even if no injury will be caused
thereby

Not entitled to reimbursement for luxurious


expenses except when LO acquires these
improvements by paying their value, which
is the one at the time the LO enters
possession

Can remove luxurious improvements if it


will not cause injury and LO does not want
to acquire these.
Option # 2

To oblige the BP to pay the price of the To pay the price of the land
land and the S to pay proper rent [Art. (even if the value of the land is considerably
450] higher) plus damages

He is entitled to damages [Art. 451]


Option # 3

Demand the demolition of the work, or Has to demolish or remove plus pay
that the planting or sowing be removed, damages
in order to replace things in their former
condition at the expense of the person
who built, planted or sowed [Art. 450]

He is entitled to damages
Landowner (LO) Builder/Planter/Sower (BPS)
C. Bad Faith Good Faith

To acquire what has been built, planted To receive indemnity from the LO and
or sown by paying the indemnity and damages
damages to BPS [Art. 454 in relation to
Art. 457] If LO does not acquire, he can remove
whatever has been built or planted
whether or not it will cause injury plus
damages

Cannot insist that LO purchase the land


D. Bad Faith Bad Faith

Same as if both are in good faith Same as A

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