What is Accession?
(incorporation takes place
It is the right of an owner of a thing to the
products of said thing as well as to
whatever is inseparably attached thereto
as an accessory.
Is accession a mode of acquiring
ownership?
No. It is only a right included in ownership.
Accession is not included among the 7
modes of acquiring ownership namely
occupation, intellectual creation, law,
donation, succession, tradition and
prescription.
What are the different kinds of
Accession?
1. Accession discreta (right of an owner
to anything which is produced by his
property)
a. Natural fruits
b. Industrial fruits
c. Civil fruits
2. Accession continua (right of owner to
anything which is incorporated or
attached to his property whether the
attachment is caused naturally or
artificially)
a. Immovable property
- Industrial accession
artificially)
o Planting, building or
sowing
- Natural accession
(incorporation takes place
naturally)
o Alluvion
o Avulsion
o Change of course of
river
o Formation of islands
b. Movable property
- Adjunction/conjunction
o Inclusion, attachment,
weaving, painting or
writing
- Commixtion/confusion
- Specification
What are the instances when the owner
does not own the fruits?
a. In usufruct
b. In lease of rural lands
c. In antichresis
d. In possession in good faith
e. Fruits naturally falling
What are the different kinds of fruits?
Natural, Industrial and Civil
What are the 2 kinds of natural fruits?
a. Spontaneous products of the soil –
those which appear without
intervention of human labor (wild
fruits in forest, herbs, etc.)
b. Young and other products of animals
(milk, hair, wool, eggs, etc)
When can trees be considered fruits?
If they are being exploited for an industry.
If trees grow spontaneously on the soil
and adhering thereto are not considered
as natural fruits but immovable.
What is the rule on the ownership of the
young if male and female parents
belonged to different owners?
There is no problem if the mating of the
parent animals is agreed upon by their
respective owners and they provided for
the ownership of the offspring. In the
absence of any agreement to settle the
ownership of the offspring, the rule is that
“the young belongs to the owner of the
female parent.” (US vs Caballero)
What are the requirements for a fruit to
be considered industrial?
1. Produced by land; and
2. Produced through cultivation or labor

What comprises civil fruits?
Civil fruits, under the Civil Code, refers to
“rents of building, the price of leases of
lands and other property and the amount
of perpetual or life annuity or other similar
income.”
Civil fruits, therefore, are the income or
revenues derived from the property itself.
Hence, a dividend, whether in the form of
cash or stock, is considered as civil fruit
because it is declared out of the profits of a
corporation and not out of the capital
stock.
When does the law recognize the
existence of fruits?
With respect to natural and industrial
fruits, only those “manifest” or “born” are
considered as such. In relation to the
offspring or young of animals, they are
deemed existing at the beginning of the
maximum period of gestation, this being
the surest criterion of their existence in the
mother’s womb.
As to plants and trees that live for years and
yield periodic fruits, the latter are not
deemed existing until they actually appear
on the plants and trees.
What is the rule where the recipients of without causing a substantial physical
the fruits were not the same person who or juridical injury to any one, to some,
incurred the expenses in connection with or to all of the things involved.
the production, gathering and 2. Accessory follows the principal
preservation? 3. That no one shall unjustly enrich
himself at the expense of another
In such a situation, Article 443 provides
4. That good faith exonerates a person
that the recipient of the fruits “has the
from punitive liability and damages
obligation to pay the expenses made by a
5. That bad faith subjects a person to
third person in their production, gathering
damages and other unfavorable
and preservation.” This rule is but proper in
consequences
order that no one may unjustly enrich
6. That bad faith of one party neutralizes
himself at the expense of another.
the bad faith of other and both should
be considered to have acted in good
When is there a ‘refund’ for the
faith
production expenses?
1. That they are dedicated to the annual What are the three (3) forms of industrial
accession?
production and not merely for
purposes of improvement
1. Building = generic term for all
2. That they may not be superfluous,
architectural work with roof, built for
excessive or for luxury but rather that
the purpose of being used as man’s
they be commensurate with that
dwelling or for offices, clubs, theaters,
required by the products
etc.
2. Planting AND sowing = planting refers
What are the basic principles of Accesion
to trees, big or small; sowing refers to
Continua?
crops and plants caused by the
1. That the union or attachment or the scattering or stewing of seeds upon the
incorporation of two or more things soil
belonging to different owners to each
other or to one another must be such
that they cannot be separated from
each other or from one another
Who are the possible persons involved in
industrial accession?
1. Landowner,
2. Builder, planter or sower and
3. Owner of the materials
What are the three possible controversial
situations in industrial accession?
1. When the landowner builds, plants or
sows on his land but using the
materials belonging to another
2. When a person builds, plants or sows
on another’s land but he made use of
materials belonging to him
3. When a person builds, plants or sows
on another’s land but he made use of
materials belonging to another
If both the landowner and owner of
materials acted in GOOD FAITH, what is
the rule?
a. The landowner is exonerated from
punitive liability and damages
b. The landowner is given the right to
appropriate what has been built,
planted or sown BUT WITH THE
OBLIGATION TO INDEMNIFY THE
OWNER OF THE MATERIALS for the
value of such.
Can the landowner choose to return the
materials to the owner?
Article 447 grants the right to demand for
the removal and return of the materials
only to the owner of the materials if such
removal can be done without injury to the
work constructed or without the plantings,
constructions or works being destroyed.
The landowner may likewise choose to
return the materials to its owner if removal
is possible without causing injury to the
work constructed or without the plantings,
constructions or works being destroyed.
What would be its effect?
There is no accession continua. There is
accesion continua only if the union or
attachment or the incorporation of two or
more things belonging to different owners
to each other or to one another is in such a
way that they cannot be separated from
each other or from one another without
causing substantial physical or juridical
injury to any one, to some, or to all of the
things involved.
How about if both acted in bad faith?
The bad faith of one party is neutralized by
the bad faith of the other. They are
considered to have acted in good faith.
What is the rule if the landowner is in bad
faith and the owner of the materials is in
good faith?
a. The landowner is liable to the owner of
the materials for damages
b. The landowner shall suffer other
unfavorable consequences of his act
c. Owner of materials may demand for
the value of the materials with a right
to be indemnified, or demand the
removal of the materials in any event
even it will cause injury to the land or
materials, with a right to be
indemnified for damages.
d. The landowner is criminally liable for
the unlawful thinking and use of
materials of another without the
latter’s knowledge and consent
What is the rule if the landowner is in good
faith and the owner of the materials is in
bad faith?
This situation is not governed by Article 447
since the latter article presumes that the
owner of the materials is in good faith.
Instead, what applies, by analogy, are the
provisions of Articles 455 and 449 to the
effect that the owner of the materials who
acted in bad faith loses his materials
without any right whatsoever and is
furthermore liable to the landowner for
damages.
What are the possible scenarios where a
person built, planted or sown on the land
of another using his own materials?
a. Both the landowner and the builder,
planter or sower (who is at the same
time the owner of the materials) acted
in good faith;
b. Both of them acted in bad faith;
c. The landowner acted in good faith
while the builder, planter or sower
(who is at the same time the owner of
the materials) acted in bad faith; and
d. The landowner acted in bad faith while
the builder, planter or sower (who is at
the same time the owner of the
materials) acted in good faith.
When is a builder deemed to be in good
faith?
a. It is essential that a person asserts title
to the land on which he builds
b. He be a possessor in concept of
ownership
c. He be unaware that there exists in his
title or mode of acquisition any flaw
which invalidates it
Is a lessee a builder in good faith or bad When can a lessee be entitled to one-half
faith? of the value of the improvements
introduced by him in the leased premises?
A lessee is not a builder in good faith.
A lessee, in order to be entitled to one half
Article 448 applies only to a case where one
the value of the improvements introduced
builds on land in the belief that he is the
by him in the leased premises, or to remove
owner thereof and it does not apply where
them should the lessor refuse to reimburse
one’s only interest in the land is that of a
the half value thereof, must show that the
lessee under a rental contract. It cannot
same were introduced in good faith; are
apply to a lessee because as such lessee he
useful; suitable to the use for which the
knows that he is not the owner of the
lease is intended without altering the form
leased premises.
and substance of the premises.
When is full reimbursement of useful
When is the landowner said to be in good
improvements can be allowed?
faith?
In a plethora of cases,243 the Supreme
Article 453 of the New Civil Code which
Court has held that Article 448 of the New
states “it is understood that there is bad
Civil Code, in relation to Article 546 of the
faith on the part of the landowner
same Code, which allows full
whenever the act was done with his
reimbursement of useful improvements
knowledge and without opposition on his
and retention of the premises until
part.”
reimbursement is made, applies only to a
possessor in good faith, i.e., one who builds When is the landowner said to be in bad
on land with the belief that he is the owner faith?
thereof. It does not apply where one’s only
Whenever the act was done with his
interest is that of a lessee under a rental
knowledge and without opposition on his
contract; otherwise, it would always be in
part.
the power of the tenant to “improve” his
landlord out of his property. Thus, when one in possession of property
of another erects buildings and makes
other improvements thereon in bad faith,
but with knowledge of the owner who does
not object, the case must be treated as if
both parties had acted in good faith.
What is the rule if both parties
(LANDOWNER & landowner refuses to exercise either
BUILDER/PLANTER/SOWER & OWNER OF
MATERIALS) are in good faith?
The landowner is given two alternative
rights:
a. to appropriate as his own the works,
sowing or planting after payment to
the builder, planter or sower of the
necessary and useful expenses, and in
the proper cases, expenses for pure
luxury or mere pleasure, incurred by
the latter; or
b. to oblige the one who built or planted
to pay the price of the land, if the value
of the land is not considerably more
than that of the building or trees, and
the one who sowed, the proper rent.
To whom option is given? What are these
options?
Landowner. The only right given to the
builder in good faith is the right to
reimbursement for the improvements; the
builder cannot compel the owner of the
land to sell such land to the former.
The option to: (a) appropriate the
improvement or (b) sell the land on which
the improvement of the builder, planter or
sower stands
What could be the situation if the
options given to him?
In a situation where the landowner is
refusing to exercise any of the options
granted him under Article 448, the builder
in good faith can, under the same Article,
compel the landowner to make a choice
between appropriating the building by
paying the proper indemnity or obliging the
builder to pay the price of the land.
What is the basis of indemnity?
Current market value of the improvements
which should be made the basis of
reimbursement. (Pecson vs CA)
What is the basis of determining price of
the land?
In Ballatan v. Court of Appeals,298 it was
ruled that in the event the landowner
elects to sell the land to the builder in
good faith, the price must be fixed at the
prevailing market value at the time of
payment. In the event of the failure of the
builder to pay the land, after the owner
thereof has chosen this alternative, the
builder’s right of retention provided in
Article 546 is also lost.
What is the rule if landowner is in good
faith, builder in bad faith?
If good faith consists in the belief of the
builder that the land he is building on is his
and his ignorance of any defect or flaw in
his title, a fortiori, the builder, planter or
sower (who is at the same time the owner
of the materials) is deemed to have acted
in bad faith if he knows that the land is not
his, or if he has knowledge of any flaw or
defect in his title or mode of acquisition of
the land.
What are the alternative rights of the
landowner if he has acted in good faith
and the builder acted in bad faith?
a. Right to appropriate: he can
appropriate what has been built,
planted or sown and he can also
demand damages from the builder in
bad faith
b. Right to remotion: he can demand the
removal/demolition and the land be
restored to original condition plus
damages suffered by the landowner.
c. Right to compel payment of the price:
builder/planter must pay the price.
With respect to sower, landowner may
only compel him to pay the proper
rent.
What are the limited rights of builder,
planter or sower in bad faith?
“the builder, planter or sower in bad faith is
entitled to reimbursement for the
necessary expenses of preservation of the
land”
Builder in bad faith has no right, however,
to be indemnified for useful
improvements. Neither has he any right to
remove them. The right given a possessor
in bad faith to remove improvements
applies only to improvements for pure
luxury or mere pleasure, provided the thing
suffers no injury thereby and the lawful
possessor does not prefer to retain them by
paying the value they have at the time he
enters into possession.
What is the rule of both of the landowner
and builder acted in bad faith?
“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.”
What is the rule if the landowner acted in
bad faith; builder in good faith?
Article 454 of the New Civil Code provides:
“When the landowner acted in bad faith
and the builder, planter or sower
proceeded in good faith, the provisions of
Art. 447 shall apply.” As a consequence,
whatever has been discussed under Article
447 shall likewise apply in this situation.
How can this controversial situation be
resolved?
***The builder, planter or sower has built,
planted or sown on another’s land using
materials belonging to another***
Article 455 offers to settle first the right of
the owner of the materials whose only
interest, of course, is the recovery of the
value of his materials. Such recovery,
however, shall depend on whether he
acted in good faith or in bad faith.
If owner of the materials acted in bad faith:
he loses his materials without indemnity
Rights of landowner: he can claim what has
been built, planted or sown on his land
without obligation to indemnify the owner
of materials
Rights of the builder, planter or sower: it
shall be determined on his good or bad
faith:
*if in good faith: he may claim from the
landowner a reasonable compensation for
his labor
*if in bad faith: he is not entitled to
anything. He may instead be made to pay
damages to the landowner.
If owner of the materials acted in good
faith: he must be reimbursed for the value
of his materials
Builder, planter or sower is primarily liable:
The builder, planter or sower is primarily
liable to make such payment to the owner
of the materials310 — without damages if
he (builder, planter or sower) acted in good
faith — and with damages if he acted in bad
faith.
Subsidiary liability of the landowner: This
subsidiary liability, however, of the owner
of the land is only available if the following
conditions are met: (1) in case of insolvency
of the builder, planter or sower; and (2) the
owner of the land appropriates the
building, planting or sowing.
A fortiori, the owner of the land is not liable
to the owner of the materials if the former
chooses to order the demolition of the
construction or the removal of the building,
planting or sowing which he has the right to
do in case the builder, planter or sower
acted in bad faith. If the landowner pays for
the value of the materials, he becomes the
owner thereof. In such a situation, he may
demand damages from the builder, planter
or sower if the latter acted in bad faith, or
pay the builder, planter or sower a
reasonable compensation for his labor if
the latter acted in good faith.