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Module 4A Builder in Good Faith Who Is A Builder in Good Faith?
Module 4A Builder in Good Faith Who Is A Builder in Good Faith?
Art. 453. If there was bad faith, not only on the part TO ACQUIRE IMPROVEMENTS AFTER PAYMENT
of the person who built, planted or sowed on the OF PROPER INDEMNITY
land of another, but also on the part of the owner of
such land, the rights of one and the other shall be Art. 546. Necessary expenses shall be refunded to
the same as though both had acted in good faith. every possessor; but only the possessor in good faith
may retain the thing until he has been reimbursed
therefor.
Article 453 states in substance that if the landowner is
likewise in bad faith, meaning he allowed the
construction without any opposition, even if the builder
is in bad faith, the bad faith of the builder is neutralized
by the bad faith of the landowner.
Property | Atty. Gravador | A.Y. 2020-2021 | AGregorio
When the owner of the land elects to sell the land
Art. 548. Expenses for pure luxury or mere pleasure or buy the improvement, the purchase price must
shall not be refunded to the possessor in good faith; be fixed at prevailing market value at the time of
but he may remove the ornaments with which he has payment
embellished the principal thing if it suffers no injury
thereby, and if his successor in the possession does Ballatan v. CA
not prefer to refund the amount expanded. In the event that petitioners elect to sell to
respondents Go the subject portion of their lot, the
Useful expenses shall be refunded only to the possessor price must be fixed at the prevailing market value at
in good faith with the same right of retention, the the time of payment. The Court of Appeals erred in
person who has defeated him in the possession having fixing the price at the time of taking, which is the
option of refunding the amount of the expenses or of time the improvements were built on the land. The
paying the increase in value which the thing may have time of taking is determinative of just compensation
acquired by reason there of. (453a) in expropriation proceedings. The instant case is not
for expropriation. It is not a taking by the state of
TO OBLIGE BUILDER OR PLANTER TO PAY FOR private property for a public purpose upon payment
THE LAND AND THE SOWER THE PROPER RENT of just compensation. This is a case of an owner who
has been paying real estate taxes on his land but has
OWNER OF THE LAND MUST EXERCISE THE been deprived of the use of a portion of this land for
OPTION years. It is but fair and just to fix compensation at
the time of payment. Article 448 and the same
Sarmiento v. Angana
conditions abovestated also apply to respondents Go
Owner of land must exercise the option, he can only
as owners and possessors of their land and
ask for demolition of improvement, if, after having
respondent Li Ching Yao as builder of the
chosen to compel builder or planter to buy land, the
improvement that encroached on thirty-seven (37)
latter fails to pay.
square meters of respondents Go's land.
LIABILITIES OF BUILDER IN BAD FAITH Art. 457. Owner of lands adjoining the banks of
1. He loses what is built, planted, or sown without rivers [river owner] belong the accretion which they
right to indemnity except for necessary gradually receive from the effects of the current of
expenses the waters (alluvion) [accession discreta]
2. He may be required to remove or demolish the
work, in order to replace things in their former This refers to when things added or incorporated to the
condition principal thing. They are considered attachments to the
3. He may be compelled to pay the price of the property if the property is adjacent to the river.
land
4. He is liable for damages. Rationale:
Owners adjoining banks of rivers are exposed to floods
RIGHT OF A BUILDER IN BAD FAITH and other damages due to the destructive force of the
• A builder, planter, or sower in bad faith is entitled to waters and if by virtue of law, they are subject of
reimbursement for the necessary expenses of encumbrances, it is only just that such risks and dangers
preservation of land. should in some way be compensated
Dried-up riverbed is not accretion The law does not require an express act of
appropriation or possession to acquire ownership
REPUBLIC v. SANTOS III of the alluvial accumulation. However, it is not
However, respondents did not discharge their burden automatically registered
of proof. They did not show that the gradual and GRANDE v. HON. CA
imperceptible deposition of soil through the effects of An accretion to land covered by Torrens title does
the current of the river had formed lot 4988-B. not automatically becomes registered land. It must
Instead, their evidence revealed that the be registered. If not registered, it is subject to
property was the dried-up river bed of acquisition through prescription by third persons.
Parañaque River, leading both RTC and the CA to
themselves hold that Lot 4998-B was “the land which Alluvial deposit acquired by a riparian owner of
was previously part of the Parañaque River... (and) registered lands by accretion may be subjected to
became an orchard after it dried up.” acquisition through prescription by a third person, by
the failure of such owner to register said accretion
(Reynante vs CA) TAKE NOTE OF THIS CASE!
THE LAND WHERE ACCRETION TAKES PLACE IS
ADJACENT TO THE BANKS OF RIVERS
AVULSION
IGNACIO v. DIRECTOR OF LANDS & VALERIANO
Riparian accretion should be distinguished from the Art. 459. Whenever the current of a river, creek or
accretion due to seawater. In the latter case, the torrent segregate from an estate on its bank a known
accretion is a public land portion of land and transfers it to another estate, the
owner of the land to which the segregated portion
Accretion on the bank of a lake, like Laguna de Bay, belonged retains the ownership of it, provided that
have been held to belong to the owners of the lands he removes
Property the same
| Atty. within
Gravador 2 years.
| A.Y. 2020-2021 | AGregorio
to which they are added (legal basis: Spanish Law of
Waters)
Alluvion v. Avulsion
Alluvion Avulsion CHANGE OF RIVER BED
Deposit of soil is gradual It is sudden or abrupt Rule:
Deposit of soil belongs to Owner of the property
River beds which are abandoned thru natural change
the owner of the property from which a part was
in the course of the waters ipo facto belong to the
where the same was detached retains the
owners whose lands are occupied by the new course
deposited ownership thereof
in portion the area lost. However, the owners of the
The soil cannot be Detached portion can be lands adjoining the old bed shall have the right to
identified identified acquire the same by paying the value thereof, which
value shall not exceed the value of the area occupied
RESUIQITES OF AVULSION by the new bed.
1. Segregation and transfer must be caused by the
current of a river, creek or torrent
2. The segregation and transfer must be sudden or PROVISION OF THE WATER CODE OF THE
abrupt PHILIPPINES [PD 1067]
3. Portion of land transported must be known and
identifiable ART. 58. When a river or stream suddenly changes
its course to traverse private lands, the owner of the
SEGREGATION AND TRANSFER MUST BE CAUSED affected lands may not compel the government to
BY THE CURRENT OF A RIVER, CREEK OR restore the river to its former bed; nor can they
TORRENT restrain the government from taking steps to revert
the river or stream to its former course. The owner of
Current: continuous movement of a body of water, the lands thus affected are not entitled to
often horizontal, in a certain direction compensation for any damage sustained thereby.
However, the former owners of the new bed shall be
River: a natural surface stream of water considerable the owners of the abandoned bed in proportion to
volume and permanent or seasonal flow emptying into the area lost by each.
an ocean, lake or body of water
The owners of the affected lands may undertake to
Creek: is a small islet extending further into the land; return the river or stream to its old bed at their own
natural stream of water normally smaller than and often expense; Provided, that a permit therefore is secured
tributary to a river from the Secretary of Public Works [ Transportation
and Communication] and works commenced within
Torrent: is a violent stream of water as a flooded river two years from the change in the course of the river
or one suddenly raised by a heavy rain and descending or stream.
in a steep incline; a raging flood or rushing stream of
water
DIONESIA BAGAIPO v. CA
THE SEGREGATION AND TRANSFER MUST BE
SUDDEN AND ABRUPT “The decrease in petitioner’s land area and the
corresponding expansion of respondent’s property
PAYATAS ESTATE IMPROVEMENT CO. v. were the combined effect of erosion and accretion
TUASON respectively. Art. 461 of the Civil Code is inapplicable.
In the absence of evidence as to whether the change Petitioner cannot claim ownership over the old
in the course of a river was caused by accretion and abandoned riverbed because the same is inexistent.
erosion (alluvion) or whether it had occurred through The riverbed’s former location cannot even be
avulsion, the presumption is that the change was pinpointed with particularity since the movement of
gradual and was caused by alluvion. the Davao River took place gradually over an
unspecified period of time, up to the present.
TRANSFER BY OTHER FORCES In the absence of evidence that the change in the
A known portion of land may be transferred from one course of the river was sudden or that it occurred
tenement to another by other forces of nature than the through avulsion, the presumption is that the change
current of a river, e.g. land from a mountain slope rolls was gradual and was caused by alluvium and
down to another tenement. Present article may be erosion.”
applied by analogy.
ART. 467. The principal thing, as between two If the material is more precious than the transformed
things incorporated, is deemed to be that to which thing or is of more value, its owner may, at his
the other has been united as an ornament, or for its option appropriate the new thing to himself, after
use or perfection. first paying indemnity for the value of the work, or
Criteria to determine principal: demand indemnity for the material.
Order of preference in determining which is the principal
and which is the accessory: If in the making of the thing bad faith intervened, the
1. That of the importance or purpose of the things as owner of the material shall have the right to
stated in this article appropriate the work to himself without paying
2. That of their value anything to the maker, or to demand of the latter
3. That of their volume that he indemnify him for the value of the material
and the damages he may have suffered. However,
Rules on Adjunction: the owner of the material cannot appropriate the
1. Owner of accessory thing in bad faith, he shall lose work in case the value of the latter, for artistic or
the thing incorporated scientific reasons, is considerably more that of the
a. He shall have obligation to indemnify owner material.
of principal thing
2. Owner of the principal is the one in bad faith, owner
of accessory may choose: Adjunction Mixture Specification
a. Compelling principal to pay the value of Involves at least Involves at least May involve only
accessory thing 2 things 2 things 1 thing (maybe
b. Thing belonging to him be separated, even more) but form
if it be necessary to destroy the principal is changed
thing. Damages are available in both cases. Accessory Co-ownership Accessory
follows the results follows the
Rules when accessory is more valuable principal principal
ART. 469. Whenever the things united can be The things joined The things mixed The new object
separated without injury, their respective owners retain their or confused may retains or
may demand their separation. nature either retain or preserves the
lose their nature of the
Nevertheless, in case the thing united for the use, respective nature original object
embellishment or perfection of the other, is much
more precious than the principal thing, the owner of
the former may demand its separation, even though
the thing to which it has been incorporated may
suffer some injury.
MIXTURE
Rule on co-ownership