Ateneo de Manila School of Law

Property Accession Charts (revised June 2012)

Atty. Francis Ampil

I. Rules when landowner (LO) – builder/planter/sower (BPS) makes constructions or

plantings with materials of another (OM):

Landowner – Builder/Planter/Sower (BPS) Owner of Materials (OM)

A. Good Faith Good Faith

LO-BPS can acquire the materials provided

there is full payment.

OM is entitled to full payment for value of

materials or OM may remove materials

provided there is no substantial injury to work

done.

B. Good Faith Bad Faith

LO-BPS can acquire materials without paying

for the value thereof and will be entitled to

damages due to defects or inferior quality of

materials.

OM loses materials without indemnity and will

be liable for damages due to defects or inferior

quality of materials.

C. Bad Faith Good Faith

LO-BPS can acquire the materials provided

there is full payment plus damages.

OM is entitled to full payment for value of

materials plus damages or OM may remove

materials even if there will be substantial

injury to work done plus damages.

D. Bad Faith Bad Faith

Same as A. Same as A.

II. Rules when the builder/planter/sower (BPS) builds, plants, or sows on the land of another

(LO):

Landowner (LO) Builder/Planter/Sower (BPS)

A. Good Faith Good Faith

Option 1: To purchase whatever has been built,

planted or sown after paying indemnity which

includes necessary expenses, useful expenses

and luxurious expenses (if the LO wants to

appropriate the luxurious improvements).

To receive indemnity for necessary, useful and

luxurious expenses (if LO wants to appropriate

the luxurious improvements) with right of

retention over the land without obligation to

pay rent until full payment of indemnity.

To remove useful improvements provided it

does not cause any injury (this is part of right

of retention).

If LO does not appropriate luxurious

improvements, BPS can remove the same

provided there is no injury to the principal

thing (the land or building).

Option 2: To oblige the BP to buy the land or

the S to pay the proper rent unless the value of

the land is considerably more than that of the

building or trees.

To purchase land at fair market value when

value is not considerably more than that of the

building or trees.

If BPS cannot pay purchase price of the land,

LO can require BPS to remove whatever has

been built, planted or sown.

If the value of land is considerably more than

that of the building or trees, BPS cannot be

compelled to buy the land. In such case, BPS

will pay reasonable rent if LO does not choose

Option 1.

If BPS cannot pay the rent, LO can eject BPS

from the land.

B. Good Faith Bad Faith

Option 1: To acquire whatever has been built,

planted or sown without paying indemnity

except necessary expenses for preservation of

land and luxurious expenses (should LO want

to acquire luxurious improvements) plus

damages.

Loses whatever has been built, planted or sown

without indemnity and liable to pay damages.

Entitled to reimbursement for necessary

expenses for preservation of land but no right

of retention.

Not entitled to reimbursement for useful

expenses and cannot remove even if removal

will not cause injury.

Not entitled to reimbursement for luxurious

expenses except when LO wants to acquire

luxurious improvements (value of which will

be the one at the time LO enters into

possession).

Entitled to remove luxurious improvements if

it will not cause injury and LO does not want

to acquire them.

Option 2: To oblige BP to buy land or S to pay

proper rent plus damages.

Obliged to pay for land or proper rent and pay

damages.

Option 3: To compel BPS to remove or

demolish work done plus damages.

Obliged to remove or demolish work done at

his expense and pay damages.

C. Bad Faith Good Faith

To acquire whatever has been built, planted or

sown by paying indemnity plus damages.

If LO acquires whatever has been built, planted

or sown, BPS must be indemnified the value

thereof plus damages.

(If LO does not acquire whatever has been

built, planted or sown, BPS cannot insist on

purchasing land).

BPS can remove whatever has been built,

planted or sown regardless of whether or not it

will cause injury and will be entitled to

damages.

D. Bad Faith Bad Faith

Same as A. Same as A.

III. Rules when landowner (LO), builder/planter/sower (BPS) and owner of the materials (OM)

are 3 different persons:

Landowner (LO) Builder/Planter/Sower (BPS) Owner of the Materials (OM)

A. Good Faith Good Faith Good Faith

Option 1: To acquire whatever

has been built, planted, or

sown provided there is

payment of indemnity (which

includes value of what has

been built, planted or sown

plus value of materials used).

To receive indemnity from LO

with right of retention over

land until full payment.

To receive indemnity from

BPS who is primarily liable

for materials; if BPS is

insolvent, to proceed against

LO who is subsidiarily liable

with no right of retention.

Option 2: To oblige BP to buy

land or S to pay proper rent

unless value of land is

considerably more than that of

building or trees.

To buy land or to pay proper

rent.

To receive indemnity from

BPS only (LO is not

subsidiarily liable) with right

of retention until full payment

and will have material rent

lien against against BPS for

payment of value of materials

or

to remove materials if there

will be no injury building or

trees.

B. Good Faith Good Faith Bad Faith

Same as A. Same as A. Whatever is the choice of LO,

the OM:

1. loses the materials in favor

of BPS and

2. will have no right to receive

indemnity from BPS nor LO.

C. Good Faith Bad Faith Bad Faith

Option 1: To acquire whatever

has been built, planted or

sown without paying

indemnity except for

preservation of land and

luxurious expenses (should

LO want to acquire luxurious

improvements) plus damages.

BPS loses what has been built,

planted or sown plus liable for

damages but is entitled to be

indemnified for necessary

expenses for preservation of

land and luxurious expenses

(should LO want to acquire

luxurious improvements) and

has no right of removal even if

removal will not cause

damage.

(Since both BPS and OM are

in bad faith, treat them both as

if they are in good faith).

Whatever is the choice of the

LO, OM has the right to

receive indemnity for value of

materials from BPS only (LO

has no subsidiary liability for

value of materials because

OM is considered in good

faith only insofar as BPS is

concerned).

Option 2: To oblige BP to buy

the land or S to pay proper

rent plus damages.

To buy the land or pay proper

rent and liable to pay damages

to LO.

If LO chooses Option 1, OM

has no right to remove

materials even if there will be

no injury or damage. If LO

chooses Option 2, OM has

right of removal provided

there will be no injury or

damage.

Option 3: To oblige BPS to

demolish or remove what has

been built, planted or sowed

plus damages.

To demolish or remove what

has been built, planted or

sowed and liable for damages.

Liable to pay for damages due

to defects or inferior quality of

materials.

D. Bad Faith Good Faith Good Faith

To acquire what has been

built, planted, or sown by

paying indemnity plus liable

to pay damages.

To receive indemnity from LO

plus damages.

To receive indemnity for value

of materials principally from

BPS and in case BPS is

insolvent, subsidiarily from

LO.

E. Bad Faith Good Faith Bad Faith

Same as D. Same as D. No right to receive indemnity

for value of materials from

BPS nor LO (who ends up

owning building or trees).